Madras High Court
R.Jayachandran vs Tamil Nadu State Transport ... on 7 April, 2021
WP NO.8742 OF 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.04.2021
CORAM
THE HONOURABLE MR. JUSTICE M.GOVINDARAJ
WP NO.8742 OF 2021
R.Jayachandran .. Petitioner
Versus
1.Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
Rep. by the Managing Director
3/137, Salamedu, Valudha Reddy Post,
Villupuram – 605 602.
2.Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
Rep. by the General Manager
Kancheepuram Regional Office
Karapettai, Chennai Bangalaru Highway,
Kancheepuram – 631 552.
3.The Administrator
Tamil Nadu State Transport Corporation
Employees Pension Trust
Pallavan Salai,
Chennai – 600 002. .. Respondents
1/8
https://www.mhc.tn.gov.in/judis/
WP NO.8742 OF 2021
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus, directing the respondents to pay
interest amounts to the service gratuity, leave salary and commutation of
pension amount at the rate of 6% per annum for 18 months of delayed
payment in accordance with the orders dated 12.06.2015 of the Hon'ble
Division Bench of this Court made in W.A. (MD) Nos.383 to 457 of 2015
and as adopted in the order made on 19.01.2021 in W.P.No.15886 of 2020
by considering and passing orders on the representation dated 26.02.2021 of
the petitioner.
For Petitioner : Mr.N.Ishak
For Respondents : Mr.C.S.K.Sathish
Standing Counsel
ORDER
Mr.C.S.K.Sathish, learned Standing Counsel, takes notice on
behalf of the respondents. 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 respondents to pay interest to the service gratuity, leave
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WP NO.8742 OF 2021
salary and commutation of pension amount at the rate of 6% per annum for
14 months of delayed payment in accordance with the orders dated
12.06.2015 of the Division Bench of this Court made in W.A. (MD)
Nos.383 to 457 of 2015 and as adopted in the order made on 19.01.2021 in
W.P.No.15886 of 2020 by considering his representation dated 26.02.2021.
3.The petitioner has joined the services of the respondent /
Transport Corporation on 29.03.1997 as Conductor. Subsequently, he was
promoted as Checking Inspector and retired from service on 30.06.2019 on
attaining the age of superannuation. On the date of his retirement, Provident
Fund amount alone was settled to him and the other retiral benefits viz.,
commutation of pension, service gratuity and leave salary were paid only on
24.01.2021, viz., after a lapse of 18 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.
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WP NO.8742 OF 2021
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
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.
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WP NO.8742 OF 2021
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 01.06.2021. 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
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
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WP NO.8742 OF 2021
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.
07.04.2021
Index : Yes / No
Internet : Yes / No
TK
https://www.mhc.tn.gov.in/judis/
WP NO.8742 OF 2021
To
1.The Managing Director
Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
3/137, Salamedu, Valudha Reddy Post,
Villupuram – 605 602.
2.The General Manager
Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
Kancheepuram Regional Office
Karapettai, Chennai Bangalaru Highway,
Kancheepuram – 631 552.
3.The Administrator
Tamil Nadu State Transport Corporation
Employees Pension Trust
Pallavan Salai,
Chennai – 600 002.
https://www.mhc.tn.gov.in/judis/
WP NO.8742 OF 2021
M.GOVINDARAJ, J.
TK
WP NO.8742 OF 2021
07.04.2021
https://www.mhc.tn.gov.in/judis/
