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2026 LLR WEB 768 (SUPREME COURT OF INDIA)
Penal rent for unauthorised retention of staff quarter is adjustable against gratuity; no interest accrues during period of withholding.
PAYMENT OF GRATUITY - SAIL Gratuity Rules, 1978 - Rule 3.2.1(c) - Withholding of gratuity - Non-vacation of staff quarter - Penal rent - Adjustment against gratuity - Interest on withheld gratuity - Reciprocal obligations - Article 141 of the Constitution - Precedent - O&M/Procedure/789 Retired employees of SAIL/Bokaro Steel Plant failed to vacate allotted staff quarters beyond the permissible retention period - Management withheld gratuity and sought to adjust penal rent against it - Single Judge directed release of full gratuity with interest adjusting only normal rent... subscribe to read more..
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