Madras High Court
K.Nallathambi vs Tamil Nadu State Transport ... on 7 April, 2021
WP NO.8702 OF 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.04.2021
CORAM
THE HONOURABLE MR. JUSTICE M.GOVINDARAJ
WP NO.8702 OF 2021
K.Nallathambi .. Petitioner
Versus
1.Tamil Nadu State Transport Corporation
(Coimbatore) Ltd.,
Rep. by its Managing Director
Mettupalayam Road, Coimbatore.
2.Tamil Nadu State Transport Corporation
Employees' Pension Fund Trust
Rep. by its Administrator
Thiruvalluvar Illam, Pallavan Salai,
Chennai – 2. .. Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus, directing the respondents 1&2 to pay
the petitioner interest for the belated payment of P.F., Gratuity, Encashment
of Earned / Sick Leave and commuted value of pension, at the rate of 12%
per annum, within a time frame as may be fixed by this Court.
For Petitioner : Mr.V.Ajoy Khose
For Respondent : Mr.A.Sundaravadhanan
Standing Counsel
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WP NO.8702 OF 2021
ORDER
Mr.A.Sundaravadhanan, 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 for the belated payment of P.F.,
Gratuity, Encashment of Earned / 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 04.06.1987 as Driver. He was retired from service
on 31.05.2019 as Driving Instructor on attaining the age of superannuation.
However, his terminal benefits, namely EPF, Gratuity and leave salary etc.,
were paid only on 24.01.2021, 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.
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WP NO.8702 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.
7.Following the above judgments, a learned Single Judge of
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WP NO.8702 OF 2021
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
that he is entitled to interest for the amount already settled, he can agitate
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WP NO.8702 OF 2021
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
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Index : Yes / No
Internet : Yes / No
TK
To
1.The Managing Director
Tamil Nadu State Transport Corporation
(Coimbatore) Ltd.,
Mettupalayam Road, Coimbatore.
2.The Administrator
Tamil Nadu State Transport Corporation
Employees' Pension Fund Trust
Thiruvalluvar Illam, Pallavan Salai,
Chennai – 2.
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WP NO.8702 OF 2021
M.GOVINDARAJ, J.
TK
WP NO.8702 OF 2021
07.04.2021
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