Madras High Court
N.Punniyakotti vs The Managing Director on 17 April, 2021
W.P.No.9452 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 17.04.2021
CORAM
THE HONOURABLE MR.JUSTICE M.GOVINDARAJ
W.P.No. 9452 of 2021
N.Punniyakotti ... Petitioner
Vs.
1.The Managing Director,
Tamil Nadu State Corporation,
(Villupuram) Limited,
3/137, Salamedu, Valudha Reddy Post,
Villupuram - 605 602.
2.The Administrator,
Tamil Nadu State Transport Corporations,
Employees Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002. ...Respondents
Prayer : Writ petition filed under Article 226 of Constitution of India praying
to issue a writ of mandamus, directing the respondents to pay the petitioner a
sum of Rs.2,79,226.00 towards interest for the belated payment of terminal
benefits such as Gratuity, Leave Salary, Commutation and towards surrender of
earned leave salary which surrendered in May 2018 and one month pension for
the month of July 2019 which is not paid to the petitioner till date.
For Petitioner : Mr.S.T.Varadarajulu
For Respondents : Mr.P.Karthikeyan
Additional Government Pleader
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W.P.No.9452 of 2021
ORDER
Mr.P.Karthikeyan, learned Additional Government Pleader, 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 a sum of Rs.2,79,226/- towards interest for
the belated payment of terminal benefits such as Gratuity, Leave Salary,
Commutation towards surrender of earned leave salary which surrendered in
May 2018 and one month pension for the month of July 2019 which is not paid
to the petitioner till date.
3.The petitioner has joined the service of the respondent /
Transport Corporation on 14.09.1986. He was retired from service on
30.06.2019 on attaining the age of superannuation. However, his terminal
benefits, namely EPF, Gratuity and leave salary etc., were paid only on
22.01.2021, after a lapse of 18 months, from the date of his retirement. Seeking
interest for the belated payment of terminal and benefits, the petitioner is before
this Court.
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W.P.No.9452 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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W.P.No.9452 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 that he is
entitled to interest for the amount already settled, he can agitate the same as per
law, if he is entitled.
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W.P.No.9452 of 2021
10.The Writ Petition is disposed of with the above observation and
direction. No costs.
17.04.2021
Pns
Index:Yes/No
Internet:Yes/No
Speaking Order/Non Speaking Order
To
1.The Managing Director,
Tamil Nadu State Corporation,
(Villupuram) Limited,
3/137, Salamedu, Valudha Reddy Post,
Villupuram - 605 602.
2.The Administrator,
Tamil Nadu State Transport Corporations,
Employees Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002.
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W.P.No.9452 of 2021
M. GOVINDARAJ, J.
Pns
W.P.No.9452 of 2021
17.04.2021
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