Madras High Court
G. Vijayaragavan vs The Managing Director on 4 August, 2021
W.P.No.16151 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.08.2021
CORAM
THE HONOURABLE MR.JUSTICE A.A.NAKKIRAN
W.P.No.16151 of 2021
G. Vijayaragavan ... Petitioner
-vs-
1.The Managing Director,
Tamil Nadu State Transport Corporation (VPM) Ltd.,
No.3/137, Salamedu
Vazhuthareddy Po.
Villupuram – 605 602.
2. The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Thiruvalluvar House, Pallavan Salai,
Chennai – 600 002. ... Respondents
PRAYER: Writ Petition filed under Article 226 of Constitution of India
praying for the issuance of a Writ of Mandamus, directing the respondents to
pay interest @ 6% for the belated payment of gratuity, Leave Salary and
commutation of pension and other benefits to the petitioner for the period
from 30.06.2019 the date of retirement to 23.01.2021 the date of settlement
by following the order passed in W.A.(MD)Nos.383 to 457 of 2015 dated
12.06.2015 and in CMP.No.6352 of 2018 in W.A.No.665 of 2018 dated
13.07.2018.
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W.P.No.16151 of 2021
For Petitioner :Mr.V.S.Jagadeesan
For Respondents :Mr.Moorthy
Standing Counsel for Transport Corporation
ORDER
With the consent of both parties, this Writ Petition is taken up for final
disposal at the admission stage itself.
2. Mr.Moorthy, learned Standing Counsel for Transport Corporation
takes notice for the respondents.
3. The petitioner herein, who retired from the services of the
Respondents Corporation on reaching the age of superannuation, have come
up with the above Writ Petition, seeking a direction to the Respondents to
pay interest at 6% for the belated payment of gratuity, Leave Salary and
commutation of pension and other benefits to the petitioner for the period
from 30.06.2019 the date of retirement to 23.01.2021 the date of settlement
by following the order passed in W.A.(MD)Nos.383 to 457 of 2015 dated
12.06.2015 and in CMP.No.6352 of 2018 in W.A.No.665 of 2018 dated
13.07.2018.
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W.P.No.16151 of 2021
4. Heard the learned counsel on either side and perused the material
documents available on record.
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.16151 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 four equal
monthly installments, commencing from 01.10.2021. 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
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W.P.No.16151 of 2021
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.
04.08.2021
Index : Yes/No
Internet : Yes/No
(gv)
To:
1.The Managing Director,
Tamil Nadu State Transport Corporation (VPM) Ltd.,
No.3/137, Salamedu
Vazhuthareddy Po.
Villupuram – 605 602.
2. The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Thiruvalluvar House, Pallavan Salai,
Chennai – 600 002.
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W.P.No.16151 of 2021
A.A.NAKKIRAN., J.
(gv)
W.P.No.16151 of 2021
04.08.2021
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