Lagatar24 Desk
New Delhi: The Supreme Court has ruled that the Steel Authority of India Limited (SAIL) can withhold gratuity payments of retired employees to recover pending rent dues for overstaying in company quarters beyond the permitted period.
SAIL Challenges Jharkhand High Court Order
The decision came in the case of SAIL versus Shambhu Prasad Singh and others. Earlier, the Jharkhand High Court had termed it incorrect for SAIL to withhold gratuity for recovering penal rent from retired employees. It had also directed the Bokaro Steel Plant to refund the withheld gratuity amount along with interest to certain retired employees.
Supreme Court Bench Overturns Earlier Verdict
A bench comprising Justice Pankaj Mithal and Justice SVN Bhatti heard the matter and overturned the High Court’s ruling. The apex court upheld SAIL’s authority under its internal gratuity rules.
Gratuity Rule Permits Recovery Of Penal Rent
The court stated that under Rule 3.2.1(c) of the gratuity rules, SAIL has the legal right to withhold gratuity to recover penal rent from employees who continue to occupy company quarters beyond the allowed duration after retirement.
