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2026 Supreme(Online)(SC) 518

SUPREME COURT OF INDIA
Pankaj Mithal, S.V.N. Bhatti, JJ
Management Of Steel Authority Of India – Appellant
Versus
Shambu Prasad Singh – Respondent


Table of Content
1. overview of litigation regarding gratuity withholding for quarters retention. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. framework for gratuity withholding and unauthorized occupation policy. (Para 9 , 10 , 11 , 12 , 13)
3. parties' contentions on gratuity adjustment and penal rent fairness. (Para 14 , 15)
4. limited precedential value of factual orders on penal rent. (Para 16 , 17 , 18)
5. reciprocal obligation to vacate quarters and permissible rent adjustment. (Para 19 , 20 , 21)
6. final order granting appeal and ruling out interest on gratuity. (Para 22 , 23)

S.V.N. BHATTI, J.

1. Leave Granted.

2. The batch of Civil Appeals arises from Civil Review Order dated 16.05.2024 in Civil Review No. 45 of 2021, etc., and the Order dated 20.01.2020 in LPA No. 561 of 2017 and batch. The questions of fact and law are the same in the Civil Appeals. The Civil Appeals were heard on 09.03.2026 and 11.03.2026, respectively, and reserved for judgment. Through the instant Judgment, the Civil Appeals are considered and disposed of.

3. There are two types of cases before this Court. One type where the Writ Petition was decided after the Order dated 31.03.2017 of this Court in Civil Appeal N

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