The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.11020 of 2024 K. Anuradha …. Petitioner Mr. L.K. Maharana, Advocate -versus- State of Odisha and Others …. Opposite Parties Mr. C.K. Pradhan, AGA Mr.S.K. Patra, Adv. for O.P.9 CORAM: JUSTICE BIRAJA PRASANNA SATAPATHY ORDER 22.09.2025 1. This matter is taken up through Hybrid Arrangement (Virtual/Physical) Mode. Order No. 05. 2. On the oral prayer made by the learned counsel for the Petitioner, he is permitted to implead Collector, Cuttack as Opposite Party No.10 in Court today.
Legal Reasoning
3. Heard learned counsel appearing for the parties. 4. The present Writ Petition has been filed inter alia with the following prayer:- “It is therefore, prayed that your Lordships may graciously be pleased to admit the writ petition. issued notice to the Opp. Parties, calling upon them to show cause as why; 1) The imposition of Penal License Fee to the tune of Rs. 4,37,800/- (Rupees Four Lakhs Thirty Seven Thousand and Eight Hundred Only) towards. unauthorized occupation of Govt. Quarter for the period 03/09/2009 to 02/12/2018 shall not be declared illegal and consequently, the Letter dated 19/03/2020 issued by the Opp. Party No. 6 vide Annexure - 4 and Letter // 2 // dated 08/06/2022 issued by the Opp. Party No. 2 vide Annexure 6 shall not be set aside/quashed; 2) Writ in the nature of mandamus or any other appropriate writ shall not be issued directing the Opp. Party authorities to grant and disburse the Final Pension Amount, Arrear Pension and the Gratuity along with statutory and penal interest on account of delay; 3) the action of the Opp. Party No. 2 in disposing of the Representation of the Petitioner dated 25/07/2022 vide Letter No.4866 dated 09/11/2023 (Annexure 10) shall not be held not to be in compliance but in violation of the directions in Order dated 19/05/2023 passed by this Hon’ble Court in W.P.(C) No. 16943 of 2023 vide Annexure 8 and consequently appropriate action shall not be taken against him for such violation; And in the event, the Opp. Party fails to show cause, or show insufficient cause, then A. The imposition of Penal License Fee to the tune of Rs. 4,37,800/- (Rupees Four Lakhs Thirty Seven Thousand and Eight Hundred Only) towards unauthorized occupation of Govt. Quarter for the period 03/09/2009 to 02/12/2018 be declared illegal and consequently, the Letter dated 19/03/2020 issued by the Opp. Party No. 6 vide Annexure - 4 and Letter dated 08/06/2022 issued by the Opp. Party No. 2 vide Annexure - 6 be set aside/quashed; B. Writ in the nature of mandamus or any other appropriate writ be issued directing the Opp. Party authorities to grant and disburse the Final Pension Amount, Arrear Pension and the Gratuity along with statutory and penal interest on account of delay; C. the action of the Opp. Party No. 2 in disposing of the Representation of the Petitioner dated 25/07/2022 vide Letter No.4866 dated 09/11/2023 (Annexure-10) be held not to be in compliance but in violation of the directions in Order dated 19/05/2023 passed by this Hon’ble Court in W.P.(C) No. 16943 of 2023 vide Annexure 8 and consequently, appropriate action be taken against him for such violation; And further be pleased to pass any other order(s)/ direction(s) as deem fit and proper; And for this act of kindness, the Petitioners shall in duty bound ever pray.” 5. It is contended that Petitioner while working as Lady Supervisor in ICDS, Project Cuttack, she was allotted with a Page 2 of 7 // 3 // quarter in the year 2004 i.e. on 04.05.2004, bearing Quarter No.C/35 in New LIC Colony, Badambadi. 5.1. It is contended that Petitioner not only remained in- occupation of the quarter so allotted, but also house rent was deducted from the monthly salary till November, 2018, till Petitioner vacated the quarter as found from Annexure-3 and NDC was also issued vide letter dtd.20.12.2018 under Annexure-2. 5.2. It is contended that even though Petitioner vacated the quarter on 30.11.2018 with due payment of the normal rent as due and admissible till November, 2018, but basing on the letter issued by Opposite Party No.9 on 19.02.2020 under Annexure-4, Petitioner when was issued with a show-cause for payment of penal rent to the tune of Rs.4,41,800/- for unauthorized occupation of the Quarter No.C/QFA/30 for the period 03.09.2009 to 02.12.2018, Petitioner submitted her reply before the Asst. Collector as well as Collector, Cuttack under Annexure-5-Series. 5.3. It is also contended that after submission of the reply, no further communication was made on the issue. However, just prior to her retirement as due on 31.07.2022, a letter was issued by the Deputy Collector-Opposite Party No.2 on 08.06.2022 under Annexure-6, by holding the Petitioner liable to pay penal rent to the tune of Rs.4,37,800/- basing on AG audit in I.R No.138/2020-21 for unauthorized occupation of the quarter for the period 03.09.2009 to 02.12.2018. 5.4. It is contended that since after submission of her reply to the show-cause under Annexure-5-Series and the Page 3 of 7 // 4 // recoverable penal rent was never determined in accordance with law, Petitioner on receipt of the letter moved Opposite Party No.2 on 25.07.2022 under Annexure-7, indicating therein that Petitioner is not liable to pay the penal rent. As no action was taken, Petitioner approached this Court by filing W.P.(C) No.16943 of 2023. This Court vide order dtd.19.05.2023 when directed Opposite Party No.2 to take a decision on the issue involved, on the ground that Opposite Party No.2 is not competent to decide the issue, passed the impugned order on 09.11.2022 under Annexure-10. 5.5. It is also contended that because of such penal rent imposed on the Petitioner vide letter dtd.08.06.2022, Petitioner after her retirement on 31.07.2022, was not released with her gratuity and the final pension as well as other pensionary benefits save and except the provisional pension. However, pursuant to the order passed by this Court on 19.05.2023 in W.P.(C) NO.16943 of 2023, by withholding a sum in of Rs.4,37,800/- the gratuity amount was sanctioned by the Collector & District Magistrate, Cuttack vide letter dtd.24.06.2025. 5.6. It is also contended that in the meantime Petitioner was also sanctioned with the final pension on dtd.30.01.2025.
Legal Reasoning
However, it is contended that since the penal rent so indicated in Annexure-6, was never determined by giving due opportunity of hearing to the Petitioner and in accordance with law, basing on such letter issued under Annexure-6, Petitioner should not have been imposed with the penal rent. It is also contended that basing on AG Audit, such penal rent cannot be imposed and it is per se illegal. Page 4 of 7 // 5 // 6. Mr. C.K. Pradhan, learned Addl. Government Advocate on instruction contended that since Petitioner remained on unauthorized occupation of the quarter for the period from 03.09.2009 to 02.12.2018, basing on AG audit, Petitioner was initially issued with a show-cause. On consideration of her reply and the audit made by AG, Petitioner was directed to deposit a sum of Rs.4,37,800/- towards penal rent vide letter dtd. 08.06.2022 under Annexure-6. However, it is contended that in the meantime vide letter dtd.24.07.2025, District Social Welfare Officer, Cuttack, has already moved the Accountant General- Opposite Party No.9 for release of the residue gratuity amount by withholding a sum of Rs.4,37,800/-. 6.1. It is also contended that in the meantime final pension has been sanctioned in favour of the Petitioner on 30.01.2025. 6.2. It is however contended that since Petitioner is liable to pay penal rent to the tune of Rs.4,37,800/-, the said sum has been withheld from the gratuity amount of the Petitioner as due to her. 7. Mr. S.K. Patra, learned counsel appearing for the Accountant General on the other hand contended that such a system is prevalent in the Office of the Accountant General to cause Audit and report as to whether any employee is liable to pay any penal rent. Basing on such audit, Petitioner has been held liable to pay the penal rent. 8. Having heard learned counsel appearing for the Parties, considering the submissions made and the materials available on record, this Court finds that prior to issuance of the Page 5 of 7 // 6 // impugned letter dtd.08.06.2022 under Annexure-6, Petitioner though was issued with a show-cause and Petitioner submitted the reply under Annexure-5 Series, but final decision was not taken on the issue. However, basing on AG audit, Petitioner was directed to pay a sum of Rs.4,37,800/- towards penal rent for the period 03.09.2009 to 02.12.2018 vide letter dtd.08.06.2022 under Annexure-6. 8.1. Since Petitioner has paid the monthly rent till November, 2018 as found from Annexure-3 prior to imposing the penal rent, it is the view of this Court that, Petitioner should have been noticed and the penal rent if any should have been determined in accordance with law. Since aforesaid paraphernalia has not been followed, it is the view of this Court that without following the same, Petitioner could not have been issued with the letter under Annexure-6. 8.2. Be that as it may, since Petitioner has already received the final pension and steps are being taken now to release the residue gratuity amount by withholding a sum of Rs.4,37,800/-, this Court while disposing the Writ Petition directs Opposite Party No.10, to re-decide the issue as to whether Petitioner is liable to pay the penal rent for the period indicated in Annexure-6 in respect of the quarter in question by giving an opportunity of hearing to the Petitioner and with issuance of a detailed show-cause. This Court directs Opposite Party No.10 to take a decision within a period of three (3) months from the date of receipt of this order. Release of the withheld gratuity amount of Rs.4,37,800/-, will be subject to final decision to be taken by Opposite Party No.10 Page 6 of 7 // 7 // as directed. Petitioner is permitted to take all such plea as is available to her before the Collector. 8.3. Since Petitioner because of the demand made under Annexure-6 was not released with her pension and the gratuity amount by withholding a sum of Rs.4,37,800/- it is the view of this Court that Petitioner is entitled to get interest @ 6% on such final pension and residue gratuity amount. This Court also directs Opposite Party No.10 to calculate the interest to be payable and disburse the same in favour of the Petitioner within the aforesaid time period. 9. With the aforesaid observations and directions the Writ
Decision
Petition stands disposed of. (Biraja Prasanna Satapathy) Judge Subrat Signature Not Verified Digitally Signed Signed by: SUBRAT KUMAR BARIK Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 27-Sep-2025 12:51:06 Page 7 of 7