S.Boopathymani vs The Management Of
2021 Latest Caselaw 24908 Mad

Citation : 2021 Latest Caselaw 24908 Mad
Judgement Date : 17 December, 2021

Madras High Court

S.Boopathymani vs The Management Of on 17 December, 2021

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED:17.12.2021

                                                             Coram

                                       The Hon'ble Mr. Justice V.PARTHIBAN

                      W.P.Nos.11454, 11455, 11456, 11457, 11458, 11611, 11613, 11615,
                                          11616 & 11617 of 2021

                     W.P.No.11454 of 2021

                     S.Boopathymani                                                 ...Petitioner

                                                              Vs.

                     1.The Management of
                       Tamil Nadu State Transport Corporation (Kovai)Ltd,
                       Erode Region,
                       Represented by its Managing Director,
                       Erode.

                     2.The Administrator,
                       Tamil Nadu State Transport Employees'
                       Pension Fund Trust, Thiruvalluvar Illam,
                       Anna Salai, Chennai-2.
                                                                                 ...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 interest at the rate of 18% per annum, for the period of delay from 01.05.19 to 24.01.21, in paying the amounts paid towards the terminal and pension benefits of the petitioner namely EPF employees contribution, Gratuity, Encashment of Earned/Sick leaves and commutated value of pension, within a time frame as may be fixed by this Court.

                                    For Petitioner      ..    Mr.Ajay Khose
                                                              (in all WPs)

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

                                        For Respondents ..      Mr.A.Sundaravadanam
                                                                Standing Counsel (for R.1)
                                                                Mr.C.S.K.Sathish
                                                                Standing Counsel (for R.2)
                                                                (in all WPs)

                                                       COMMON 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

percent and it was also opposed by the counsels who are

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

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.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 Corporation has suffered huge

losses due to Covid-19 situation prevailing in State for more than 20

months. The Corporation would be unable to mobilize and come up

with funds to pay 6% interest. The Corporation are already facing

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

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.

6.In view of the consensus being reached by the parties, these

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

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.