C.Marusamy vs Tamil Nadu State Transport
2021 Latest Caselaw 24315 Mad

Citation : 2021 Latest Caselaw 24315 Mad
Judgement Date : 10 December, 2021

Madras High Court

C.Marusamy vs Tamil Nadu State Transport 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.24796 of 2021

                     C.Marusamy                                                                      ...
                                                                                             Petitioner

                                                               Vs.

                     Tamil Nadu State Transport
                     Corporation (Coimbatore) Ltd,
                     Represented by its Managing Director,
                     Mettupalayam Salai,
                     Coimbatore- 64103.                                                  ...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 6% per annum for
                     the belated payment of P.F, Gratuity and earned leave salary
                     within a specified time.
                                        For Petitioners             .. Mr.V.Ajay Khose

                                        For Respondents             .. Mr.A.Sundaravadanam
                                                                       Standing Counsel

                                                           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 https://www.mhc.tn.gov.in/judis

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 granted only 4 percent interest. Per contra, the

learned counsel 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 https://www.mhc.tn.gov.in/judis

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 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. https://www.mhc.tn.gov.in/judis

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 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.

https://www.mhc.tn.gov.in/judis

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.