REGIONAL DIRECTOR, ONGC Vs. A.S.IYER

JUDGEMENT

(1.) Leave9 granted. The respondent had joined the appellant's service sometime in 1965. He retired from service in 1985. Prior to his joining ONGC the respondent had been serving with a Central Government institute, namely, the Institute of Sugarcane and Research, Lucknow. On the retirement of the respondent, he continued to remain in occupation of the official quarters for a period of about four-and-a-half years. The appellant sought to deduct the amount by way of penal rent in respect of the unauthorised occupation of the official quarters from the gratuity payable by the appellant to the respondent. The appellant also calculated the benefits due to the respondent on the basis of the 1969 Regulations of the appellant which provided for the service conditions in respect of death, retirement and terminal gratuity.

(2.) The respondent filed a writ petition before the High Court in which it was contended: (i) that the appellant could not deduct penal rent from gratuity payable to the respondent, (ii) that the dues of the respondent were to be calculated under the Payment of Gratuity Act and not under the 1969 ONGC Regulations, and (iii) that the respondent was entitled to pro rata payment of his pensionary benefits from the Central Government for the period of his services with the Central Government.

(3.) As far as the third issue is concerned, it was not disputed by the Central Government before the High Court and, accordingly, the High Court directed, AS. Iyer v. Union of India, WP (OS) No. 2784 of 1990, order dated 17-10-2003 (Bom) that the Central Government authorities would be liable to pay the pro rata pension to the respondent upon his retirement from the appellant. This has not been challenged by the Central Government before us. That finding of the High Court, therefore, has become final.