Madras High Court
M.Subramanian vs The Management Of on 7 April, 2021
WP NO.8588 OF 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.04.2021
CORAM
THE HONOURABLE MR. JUSTICE M.GOVINDARAJ
WP NO.8588 OF 2021
M.Subramanian .. Petitioner
Versus
The Management of
Tamil Nadu State Transport Corporation
(Kovai) Ltd.,
Rep. by its Managing Director
Coimbatore. .. Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus, directing the respondent to pay
interest to the petitioner at the rate of 18% per annum, for the period of
delay from 01.09.2019 to 24.01.2021, in paying the amounts paid towards
the petitioner's terminal benefits namely EPF Employee's Contribution,
Gratuity and Encashment of Earned / Sick Leave within a time frame as may
be fixed by this Court and without affecting the petitioner's right to claim
balance amounts towards those benefits.
For Petitioner : Mr.V.Ajoy Khose
For Respondent : Mr.A.Sundaravadhanan
Standing Counsel
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WP NO.8588 OF 2021
ORDER
Mr.A.Sundaravadhanan, 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 for the period of delay from
01.09.2019 to 24.01.2021 in paying the amounts paid towards terminal
benefits, namely, EPF Employee's Contribution, Gratuity and Encashment
of Earned / Sick Leaves.
3.The petitioner has joined the services of the respondent /
Transport Corporation on 15.06.1983 as Assistant Engineer. He was retired
from service on 31.08.2019 as Selection Grade Senior Assistant Engineer
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 17 months from the date of his retirement. Seeking interest
for the belated payment, the petitioner is before this Court.
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WP NO.8588 OF 2021
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
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.8588 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.8588 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.
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Index : Yes / No
Internet : Yes / No
TK
To
The Managing Director
Tamil Nadu State Transport Corporation
(Kovai) Ltd.,
Coimbatore.
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WP NO.8588 OF 2021
M.GOVINDARAJ, J.
TK
WP NO.8588 OF 2021
07.04.2021
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