Madras High Court
P.Elumalai vs The Managing Director on 14 December, 2021
W.P.No.23809 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:14.12.2021
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.No.23809 of 2021
P.Elumalai ...Petitioner
Vs.
1.The Managing Director,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd.,
3/137, Salamedu, Villupuram,
Villupuram District - 605 602.
2.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd.,
Vellore Region, Rangapuram,
Vellore - 632 009.
3.The General Manager,
Tamil Nadu State Transport
Cooperation (Villupuram - III) Ltd.,
Thiruvannamalai Region,
Bye Pass Road, Vengikkal,
Thiruvannamalai District - 606 604.
4.The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Pallavan Salai, Chennai - 600 002.
...Respondents
PRAYER: Petition filed under Article 226 of the Constitution of India
praying to issue a writ of Mandamus directing the respondents to pay
the petitioner a sum of Rs.2,94,990/- towards interest for the belated
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W.P.No.23809 of 2021
payment of terminal benefits such as Gratuity, Leave salary and
commutation amount.
For Petitioner .. Mr.S.T.Varadarajulu
For Respondents .. Ms.Mishra Sathya Seeman
(for R.1 to R.3)
Mr.C.S.K.Sathish, Standing counsel
(for R.4)
ORDER
In the present 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.
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W.P.No.23809 of 2021
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 Corporation. 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.Chandrakumar
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 Corporation
uniformly submitted that already the Corporation has suffered huge
losses due to Covid-19 situation prevailing in State for more than 20
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W.P.No.23809 of 2021
months. The Corporation would be unable to mobilize and come up
with funds to pay 6% interest. The Corporation is 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
Corporation would be unable to bear. The Corporation 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 Corporation, which appear to this Court to
be fair and reasonable considering the weak financial position of the
Corporation, 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.23809 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.
7.Therefore, the Writ Petition stand disposed of. No costs.
14.12.2021
mrm/tri
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W.P.No.23809 of 2021
Index:Yes/No
Internet:Yes
To
1.The Managing Director,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd.,
3/137, Salamedu, Villupuram,
Villupuram District - 605 602.
2.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram) Ltd.,
Vellore Region, Rangapuram,
Vellore - 632 009.
3.The General Manager,
Tamil Nadu State Transport
Cooperation (Villupuram - III) Ltd.,
Thiruvannamalai Region,
Bye Pass Road, Vengikkal,
Thiruvannamalai District - 606 604.
4.The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Pallavan Salai, Chennai - 600 002.
https://www.mhc.tn.gov.in/judis
W.P.No.23809 of 2021
V.PARTHIBAN,J.
tri/mrm
W.P.No.23809 of 2021
14.12.2021
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