STATE OF ORISSA vs SADASIVA MOHANTY

The Supreme Court held that the Central Administrative Tribunal's ruling, which limited the penal rent for government servants overstaying in allotted houses to one time the standard rent, was incorrect. The Court clarified that under Rule 11 of the Orissa Service Code, the government is empowered to charge penal rent at five times the standard rent for periods beyond four months of overstay after retirement. Consequently, the Court upheld the government's authority to impose such penalties, reversing the Tribunal's decision.