K.Nataraj vs The Management Of
2021 Latest Caselaw 24579 Mad

                                                             1

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    DATED:14.12.2021

                                                        CORAM

                                     THE HON'BLE Mr. JUSTICE V.PARTHIBAN

                      W.P.Nos.26446, 26449, 26451, 26453, 26454, 26455, 26458, 26471,
                      26473, 26476, 26477, 26549, 26552, 26554, 26557 & 26559 of 2021

                     W.P.No.26446 of 2021

                     K.Nataraj                                                       ... Petitioner

                                                         Vs.

                     The Management of
                     Tamil Nadu State Transport
                     Corporation (Kovai) Ltd.,
                     Coimbatore Region,
                     Rep by its Managing Director,
                     Coimbatore.
                                                                                    ...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 the petitioner the amount payable towards the encashment of 45 days of earned leaves, surrendered by him in the years before his retirement as admitted by the respondent, either based on his monthly wages of the respective months of surrender of those earned leaves, together with 18% interest from the date of his retirement, within a time frame as may be fixed by this Court.

                                   For Petitioner       ..     Mr.V.Ajoy Khose (in all WPs)

                                   For Respondents      ..
                                                         Mr.A.Sundaravadanam,
                                                         Standing Counsel (in all WPs)
                                                    COMMON ORDER


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In 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

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

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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 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 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

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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

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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. All these Writ Petitions stand disposed of accordingly. No

costs.

14.12.2021 Index:Yes/No Internet:Yes/No mrm/tri

V.PARTHIBAN,J.

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mrm

To

The Management of Tamil Nadu State Transport Corporation (Kovai) Ltd., Coimbatore Region, Rep by its Managing Director, Coimbatore.

W.P.Nos.26446, 26449, 26451, 26453, 26454, 26455, 26458, 26471, 26473, 26476, 26477, 26549, 26552, 26554, 26557 & 26559 of 2021

14.12.2021

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