Madras High Court
A.Jaleel vs Metropolitan Transport ... on 23 April, 2021
WP NO.10322 OF 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 23.04.2021
CORAM
THE HONOURABLE MR. JUSTICE M.GOVINDARAJ
W.P.No.10322 of 2021
A.Jaleel .. Petitioner
Versus
1.Metropolitan Transport Corporation (Chennai) Ltd
Rep. by its Managing Director
Pallavan Illam Anna Salai
Chennai 2.
2.The Managing Director
Tamilnadu State Transport Corporation
(Tirunelveli) Ltd.
Kattabomman Nagar, Thirunelveli. .. Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus directing the 1st respondent to pay the
petitioner interest at the rate of 12 percentage per annum for a sum of
Rs.11,02,403/- which was paid to the petitioner towards gratuity to pay
interest for a sum of Rs.5 35 783/- which was paid to the petitioner towards
PF at the rate of 12 percentage per annum to pay the petitioner a sum of
Rs.3 88 224/- towards earned leave salary with interest at the rate of 12
percentage per annum to pay the petitioner interest for a sum of Rs.45 858/-
which was paid to the petitioner towards surrender of 30 days earned leave
which surrender in July 2017 and to pay the petitioner the amounts payable
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WP NO.10322 OF 2021
under the Social Security Scheme Family Benefit Fund Scheme and IRT
Contributions with interest at the rate of 12% per annum by collecting and
recovering the earned leave salary for 88 days from the 2nd respondent.
For Petitioner : Mr.V.Ajay Khose
For Respondents : Mr.K.Moorthy Standing Counsel
ORDER
Mr.K.Moorthy, learned Standing Counsel, takes notice on behalf of
the respondent. By consent, the Writ Petition is taken up for final disposal at
the admission stage itself.
2.This Writ Petition has been filed by the petitioner seeking for
a direction to the respondent to pay interest amount for the belated payment
of P.F, Gratuity, encashment of earned leave/sick leave and commuted value
of pension at the rate of 12% per annum.
3. The petitioner has joined the services of the respondent /
Transport Corporation on 19.08.1986 as Conductor. He retired from service
on 31.05.2019 as Checking Inspector on attaining the age of
superannuation. However, his terminal benefits, namely EPF, Gratuity and
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WP NO.10322 OF 2021
leave salary etc., were paid only on 25.01.2021, after a lapse of 20 months
from the date of his retirement. Seeking interest for the belated payment of
retiral benefits, the petitioner is before this Court.
4.Heard the submissions made on either side.
5.It is well settled in very many cases that the employee is
entitled to interest for the belated payment of his retiral benefits. A Division
Bench of this Court in GOVERNMENT OF TAMIL NADU, REP. BY ITS
SECRETARY TO GOVERNMENT, REVENUE DEPARTMENT VS.
M.DEIVASIGAMANI [2009 (3) MLJ 01] has held that the employee is
entitled to interest on belated payment of pension and other retiral benefits,
even in the absence of statutory rules / administrative instructions or
guidelines and that he can claim interest under Part III of the Constitution,
relying on Articles 14, 19 and 21 of the Constitution.
6.In a similar circumstance, the First Bench of this Court in
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WP NO.10322 OF 2021
W.A.(MD) Nos.383 to 457 of 2015 on 12.06.2015, directed the respondent /
Transport Corporation to settle the terminal benefits of its employees in
equal monthly installments and to pay 6% interest on the terminal benefits
payable to the workman. It has also held that the workman is entitled to
18% interest for the defaulted period of installments.
7.Following the above judgments, a learned Single Judge of this
Court in W.P.No.15886 of 2020 on 19.01.2021, directed the respondent/
Transport Corporation to pay interest @ 6% per annum, for the belated
payment of gratuity and other retiral benefits.
8.Considering the facts and circumstances of the case and also
considering the period of delay, this Court is inclined to grant interest @ 4%
per annum, for the belated payment of gratuity, leave salary and
commutation of pension amount that are yet to be settled, in six equal
monthly installments, commencing from 01.07.2021. In case of delay in
making installments within the time stipulated supra, the interest payable
could be 10% for the delayed period to be recovered from the Officer
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WP NO.10322 OF 2021
responsible for disbursement of the amount.
9.It is made clear that the aforesaid direction to pay interest
would not preclude the petitioner / workman to question the computation of
any of the terminal benefits, if the same is paid lesser than the amount to
which, he is entitled to receive. Likewise, if the petitioner has any grievance
that he is entitled to interest for the amount already settled, he can agitate
the same as per law, if he is entitled.
10.The Writ Petition is disposed of with the above observation
and direction. No costs.
22.04.2021
Index : Yes / No
Internet : Yes
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WP NO.10322 OF 2021
M.GOVINDARAJ, J.
Kpr
To
1.The Managing Director
Metropolitan Transport Corporation (Chennai) Ltd
Pallavan Illam Anna Salai
Chennai 2.
2.The Managing Director
Tamilnadu State Transport Corporation
(Tirunelveli) Ltd.
Kattabomman Nagar, Thirunelveli.
W.P.No.10322 of 2021
23.04.2021
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