Madras High Court
C.Kanniyappan vs The General Manager on 10 December, 2021
1
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:10.12.2021
CORAM
THE HON'BLE Mr. JUSTICE V.PARTHIBAN
W.P.No.23974 of 2021
1.C.Kanniyappan
2.S.Prakasam
3.A.Srinivasan
4.G.Dhanasekaran
5.A.Kumar
6.A.Mallinathan ...
Petitioners
Vs.
The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram-III) Ltd,
Thiruvannamalai District – 606 604. ...Respondent
Prayer: Writ Petition filed under article 226 of the Constitution of
India prayed to issue a writ of Mandamus directing the respondent to
pay interest to the petitioner at the rate of 10% for the belated
payment of P.F. amount.
For Petitioners .. Mr.S.T.Varadarajulu
For Respondents .. Mr.G.Saravanakumar
Mr.S.Mishra Sathya Seeman
https://www.mhc.tn.gov.in/judis
2
ORDER
In this writ petition, 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
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
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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
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
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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.
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
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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.
7. This Writ Petition stands disposed of accordingly. No
costs.
10.12.2021
Index:Yes/No
Internet:Yes/No
mrm/tri
V.PARTHIBAN,J.
mrm
To
https://www.mhc.tn.gov.in/judis
The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram-III) Ltd,
Thiruvannamalai District – 606 604.
W.P.No.23974 of 2021
10.12.2021
https://www.mhc.tn.gov.in/judis
