Madras High Court
L. Sathyamurthy vs Tamil Nadu State Transport ... on 6 August, 2021
WP.No.16380 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.16380 of 2021
[Video Conferencing]
L. Sathyamurthy .. Petitioner
Vs.
1. Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Rep. By the Managing Director
3/137, Salamedu
Valudhareddy Post,
Viillupuram – 605 602.
2.Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Rep. By the General Manager,
Vellore Regional Office,
Rangapuram, Vellore – 632 009.
3. The Administrator,
Tamil Nadu State Transport Corporation,
Employees Pension Trust,
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.16380 of 2021
pay interest amounts to Provident Fund, Service Gratuity and Leave Salary
at the rate of 4% per annum for 14 months of delayed payment in
accordance with the Order dated 12.06.2015 of the Hon'ble Division
Bench of this Court made in W.A.(MD).Nos.383 to 457 of 2015 and as
adopted in the Order dated 24.03.2021 in WP.No.506 of 2021 by
considering and passing orders on petitioner's representation dated
12.07.2021.
For Petitioner :Mr.N.Ishak
For Respondents :Mr.CSK.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.CSK.Sathish. learned Senior Counsel for TNSTC, (Villupuram)
takes notice for the respondents.
WP.No.16380 of 2021
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 interest amounts to the Provident Fund, Service
Gratuity and Leave Salary at the rate of 4% per annum for 14 months of
delayed payment in accordance with the Order dated 12.06.2015 of the
Hon'ble Division Bench of this Court made in W.A.(MD).Nos.383 to 457
of 2015 and as adopted in the Order dated 24.03.2021 in WP.No.506 of
2021 by considering and passing orders on petitioner's representation dated
12.07.2021.
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
WP.No.16380 of 2021
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 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 @
WP.No.16380 of 2021
4% per annum, for the belated payment of Provident Fund, Service
Gratuity and Leave Salary 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 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
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Index : Yes/No
Internet : Yes/No
gv
WP.No.16380 of 2021
A.A.NAKKIRAN, J.,
gv
To
1. Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Rep. By the Managing Director
3/137, Salamedu
Valudhareddy Post,
Viillupuram – 605 602.
2.Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Rep. By the General Manager,
Vellore Regional Office,
Rangapuram, Vellore – 632 009.
3. The Administrator,
Tamil Nadu State Transport Corporation,
Employees Pension Trust,
Thiruvalluvar House,
Pallavan Salai, Chennai – 600 002.
W.P.No.16380 of 2021
06.08.2021
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