Madras High Court
S. Gubendran vs The Managing Director on 6 August, 2021
WP.No.16340 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.08.2021
CORAM:
THE HONOURABLE MR.JUSTICE A.A.NAKKIRAN
W.P.No.16340 of 2021
[Video Conferencing]
S. Gubendran .. Petitioner
Vs.
1. The Managing Director,
Tamil Nadu State Transport Corporation
(Villupuram) Limited,
Vazhuthareddy,
Villupuram - 605 602.
2. The General Manager,
Tamil Nadu State Transport Corporation
(Villupuram) Limited,
Kanchipuram Division
Karaipettai, Kanchipuram- 631 552.
3. The Administrator,
Tamil Nadu State Transport Corporation
Employees Post Retirement Welfare Fund Scheme
Thiruvalluvar House, Pallavan Salai,
Chennai - 600 002. ...Respondents
Prayer:- Writ Petition filed under Article 226 of the Constitution of India,
praying for issuance of a Writ of Mandamus directing the respondents to
https://www.mhc.tn.gov.in/judis/ 1
WP.No.16340 of 2021
pay the interest amount for Rs.15,22,749/- for the petitioner's delayed
payment of Gratuity amount, Commutation amount and Encashment of
Leave amount with 6% interest per annum till the date of payment, as per
the petitioner's representation dated 09.04.2021.
For Petitioner :Mr.R.Anbalagan
For Respondents :Mr.C.S.K.Sathish
Senior Counsel
for TNSTC, Villupuram.
ORDER
With the consent of both parties, this Writ Petition is taken up for
final disposal at the admission stage itself.
2. Mr.C.S.K.Sathish, learned Senior Counsel for TNSTC, Villupuram.
takes notice for the respondents.
3. The petitioner herein, who retired from the service 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 the interest amount for Rs.15,22,749/- for the
WP.No.16340 of 2021
petitioner's delayed payment of Gratuity amount, Commutation amount
and Encashment of Leave amount with 6% interest per annum till the date
of payment, as per the petitioner's representation dated 09.04.2021.
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
WP.No.16340 of 2021
/ 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 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 amount, Commutation
amount and Encashment of leave 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.
WP.No.16340 of 2021
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.
10. The Writ Petition is disposed of with the above observation and
direction. No costs.
06.08.2021
(4/5)
Index : Yes/No
Internet : Yes/No
gv
WP.No.16340 of 2021
A.A.NAKKIRAN, J.,
gv
To
1. The Managing Director,
Tamil Nadu State Transport Corporation
(Villupuram) Limited,
Vazhuthareddy,
Villupuram - 605 602.
2. The General Manager,
Tamil Nadu State Transport Corporation
(Villupuram) Limited,
Kanchipuram Division
Karaipettai, Kanchipuram- 631 552.
W.P.No.16340 of 2021
3. The Administrator,
Tamil Nadu State Transport Corporation
Employees Post Retirement Welfare Fund Scheme
Thiruvalluvar House, Pallavan Salai,
Chennai - 600 002.
06.08.2021
(4/5)
