They own it. So yes, like it or not, it's permitted. It's up to you to format the disk - if it is accessible at that level - before it is removed. If it's too badly damaged to format, then it's an academic point because no-one is going to be able to access it easily. If it's duff, it'll be destroyed and if it turns out to be okay, it'll be wiped, refurbed and perhaps passed on to some place.