Madras High Court
S.Ponnusami vs Tamil Nadu State Transport on 8 December, 2021
W.P.No.26079 & 26080 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:08.12.2021
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.Nos.26079 & 26080 of 2021
S.Ponnusami ...Petitioner in W.P.No.26079/2021
K.Mani ...Petitioner in W.P.No.26080/2021
Vs.
1.Tamil Nadu State Transport
Corporation (Villupuram) Ltd.,
Represented by its Managing Director,
3/137, Salamedu,
Villupuram- 605 602.
2.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd,
Vellore Region,
Rangapuram,
Vellore - 632 009.
3.Tamil Nadu State Transport Corporations,
Employees' Pension Fund Trust,
Represented by its Administrator,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002. ...Respondents
PRAYER: Petitions filed under Article 226 of the Constitution of India
praying to issue a writ of Mandamus directing the respondents to pay
the petitioner interest at the rate of 6% per annum for the belated
payment of the petitioners gratuity and commuted value of pension
within a specified time as may be fixed by this Court.
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W.P.No.26079 & 26080 of 2021
For Petitioner .. Mr.V.Ajay Khose
For Respondents .. Mr.S.Mishra Sathya Seeman
(for R1 & R2)
Mr.C.S.K.Sathish ( for R3)
ORDER
In all these writ petitions, the prayer is for the grant of interest
for the belated settlement of retirement benefits like P.F, Gratuity, and
encashment of Earned Leave/sick leave etc. As a matter of fact, this
Court, both Single Judges and Division Benches dealt with such prayer
earlier for payment of interest for the belated settlement of retirement
benefits to the retired transport employees.
2.The Courts have been granting payment of interest @ 4% or
6% as the case may be. In some cases, the Division Bench of this
Court has granted 6% interest and in few other cases this Court has
granted 4% interest. On the whole, this Court finds that, there is no
consensus as to whether 4% or 6% to be granted in such matters
where the employees have been settled their retirement benefits
belatedly due to resource crunch faced by the State Corporation.
3. Today, when this batch of writ petitions have been taken up
for hearing, there was a clamour for claiming higher interest of 6
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W.P.No.26079 & 26080 of 2021
percent and it was also opposed by the counsels who are representing
the corporations. According to them in a recent decision of the learned
Judge of this Court in W.P.No.23229 of 2021 dated 28.10.2021, after
taking into account the various earlier orders, has granted only 4
percent interest. Per contra, the learned counsel Mr.L.Chandra Kumar
and Mr.Ajay khoshe would rely on a decision of the Division Bench of
this Court in W.A.(MD).No.1349 & 1350 of 2021 dated 12.07.2021,
wherein there was a direction to pay 6% interest. A learned Judge of
this Court following the above Division Bench Judgment in Writ Appeal
No.1349 & 1350 of 2021, in a batch of Writ Petitions in
W.P.Nos.15636, 15640, 15647, 15651, 15654 & 15656 of 2021 dated
29.07.2021 has once again granted 6% interest for the delayed
payments. One other learned Judge of this Court vide order dated
02.07.2021 in W.P.No.10553 of 2021 has ordered 6% interest.
Therefore, learned counsels appearing on behalf of the petitioners
would pray for 6% interest as majority of the judges have granted the
same.
4.At this learned counsels representing the Corporations
uniformly submitted that already the Corporations have suffered huge
losses due to Covid-19 situation prevailing in State for more than 20
months. The Corporations would be unable to mobilize and come up
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W.P.No.26079 & 26080 of 2021
with funds to pay 6% interest. The Corporations are already facing
severe financial strain, and unable to sustain itself and any further
increase in the percentage of interest to be paid to the employees, it
would result in severe financial burden on the corporation, which the
Corporations would be unable to bear. The Corporations would also
have to take into consideration the serving employees and the retiring
employees also in future. Therefore, a passionate request has been
made before this Court for grant of 4% interest which should be
reasonable and fair to compensate belated payments made to the
retired employees.
5. In consideration of the request emanating from the learned
Standing counsels for the Corporations, which appear to this Court to
be fair and reasonable considering the weak financial position of the
Corporations, this Court persuaded the learned counsels appearing for
the petitioners to accept 4% interest. All the counsels who are
representing the parties today have uniformly accepted 4% interest to
be payable on the belated payments made to the petitioners. During
the course of argument it is also agreed by all the counsels of the
corporation that the 4% interest payable would be settled in one
lump-sum, if 8 weeks time is granted to the Corporation.
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W.P.No.26079 & 26080 of 2021
6.In view of the consensus being reached by the parties, these
writ petitions are disposed of with the following directions;
The Corporation is directed to pay 4% interest to all
the employees who have been settled belatedly their
retirement benefits within a period of 8 weeks from the
receipt of copy of order of this Court. In case, some of the
employees who have not been settled their portion of the
retirement benefits as such are also entitled to be paid
4% interest till they receive the actual retirement benefits
in full.
Those payments would also carry 4% till the date it
is fully released by the corporation. The interest of 4%
would cover the period of 8 weeks from the date of
receipt of copy of this order.
Any further default of the payments by the
corporation, the interest would be enhanced to 6 percent
after the expiry of 8 weeks of period of time and such
percentage would become payable till the entire amounts
are settled to the employees concerned.
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W.P.No.26079 & 26080 of 2021
7.All the Writ Petitions stand disposed of accordingly. No costs.
08.12.2021
mrm/tri
Index:Yes/No
Internet:Yes
To
1.Managing Director,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd.,
3/137, Salamedu,
Villupuram- 605 602.
2.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd,
Vellore Region,
Rangapuram,
Vellore - 632 009.
3.The Administrator,
Tamil Nadu State Transport Corporations,
Employees' Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis
W.P.No.26079 & 26080 of 2021
V.PARTHIBAN,J.
mrm
W.P.No.26079 & 26080 of 2021
08.12.2021
https://www.mhc.tn.gov.in/judis
