HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION No.22528 of 1999 ORDER: The petitioners were employed in different trades of Singareni Collieries Company Limited on different dates. All of them are working at Godavarikhani. The respondent-Company constructed residential quarters near the mines. The petitioners state that at the insistence of the respondents they have started living near the mines, in the residential quarters. Their grievance is that the respondents are levying penal rents in the range of Rs.1,500/- to Rs.2,000/-, though the House Rent Allowance being paid to them is only Rs.60/- per month. They place reliance upon the settlement arrived at between the Management of the respondent-Company and the Union in the year 1997. The respondents filed a counter-affidavit admitting that the petitioners are their employees and that they have occupied the residential quarters. The levy of penal rent is sought to be justified on the ground that the petitioners do not qualify under the criteria contained in the settlement. Heard learned counsel for the petitioners and learned Standing Counsel for the respondents. The very purpose of construction of residential quarters is to provide accommodation to the employees. It is not even alleged that the petitioners reside in the premises even after they were issued orders of eviction. It appears that there was some delay or lapse in the process of allotment of quarters. The fact, however, remains that the petitioners reside in the quarters, during the course of their employment in the mines, nearby the locality. A perusal of the settlement arrived at between the management and the union of the employees discloses that the occupation of the quarters for a period of three years by an employee who has put in ten years of service would not be treated as unauthorized. There is serious doubt as to when the petitioners occupied the quarters. The respondents plead that the occupation of the quarters was just prior to the filing of the writ petition. However, no proceedings are initiated against the petitioner for their eviction nor is it alleged that any employees who are seniors to the petitioners are awaiting allotment of accommodation. For the foregoing reasons, the writ petition is allowed and the respondents are directed not to collect penal rents from the petitioners. The petitioners, however, are liable to pay the rents that are stipulated to the premises for the period of their occupation. There shall be no order as to costs. _____________________________ JUSTICE L.NARASIMHA REDDY 17th June 2010 dr