Madras High Court
S. Pandiyan vs The Managing Director on 18 August, 2021
WP.No.17126 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.08.2021
CORAM:
THE HONOURABLE Mr. JUSTICE A.A.NAKKIRAN
W.P. No.17126 of 2021
S. Pandiyan .. Petitioner
Versus
1.The Managing Director,
Metropolitan Transport Corporation (Chennai ) Ltd.,
Pallavan House, Chennai – 600 002.
2.The Administrator,
Tamilnadu State Transport Corporations,
Employees Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai 600 002. .. Respondents
Prayer:- Writ Petition filed under Article 226 of the Constitution of
India, praying to issue a Writ of Mandamus directing the respondents to
pay to the petitioner 10% interest for the belated payment of the terminal
benefits such as Gratuity, Surrender Leave salary and Pension
Commutation amount.
For Petitioner : Mr.S.T.Varadarajulu
For Respondents : Mr.K.Moorthy
Standing Counsel for MTC
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https://www.mhc.tn.gov.in/judis/
WP.No.17126 of 2021
ORDER
With the consent of both parties, this Writ Petition is taken up for
final disposal at the admission stage itself.
2. Mr.K.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 to the petitioner 10% interest for the belated payment
of the terminal benefits such as Gratuity, Surrender Leave salary and
Pension Commutation amount.
4. Heard the learned counsel on either side and perused the
material documents available on record.
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WP.No.17126 of 2021
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.17126 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 the terminal benefits such as
Gratuity, Surrender Leave salary and Pension Commutation 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
https://www.mhc.tn.gov.in/judis/
WP.No.17126 of 2021
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.
18.08.2021
(2/2)
Index : Yes/No
Internet : Yes
gv
https://www.mhc.tn.gov.in/judis/
WP.No.17126 of 2021
A.A.NAKKIRAN. J.,
gv
To
1.The Managing Director,
Metropolitan Transport Corporation (Chennai ) Ltd.,
Pallavan House, Chennai – 600 002.
2.The Administrator,
Tamilnadu State Transport Corporations,
Employees Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai 600 002.
W.P. No.17126 of 2021
18.08.2021
(2/2)
https://www.mhc.tn.gov.in/judis/
