Madras High Court
R.Thangavel vs Tamil Nadu State Transport ... on 17 December, 2021
W.P.No.18263 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:17.12.2021
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.No.18263 of 2021
R.Thangavel ...Petitioner
Vs.
1.Tamil Nadu State Transport Corporation (Salem) Ltd,
Represented by its The Managing Director,
No.12, Ramakrishna Road,
Salem -7.
2.Tamil Nadu State Transport Corporation (Salem) Ltd,
Represented by its General Manager,
Dharmapuri Region, Bharathipuram,
Dharmapuri.
3.Tamil Nadu State Transport Corporation,
Employees' Pension Fund Trust,
Represented by its Administrator,
Thiruvalluvar Illam, 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 interest at the rate of 6% per annum for the belated
payment of his PF, gratuity, commuted value of pension and earned
leave salary, to pay the petitioner wages towards 30 days of earned
leaves surrendered by him, while he was in service; to settle the
amounts payable under the social security scheme, family benefit
fund, IRT Contributions and to refund of contributions under the post
Retirement Benefit Scheme, together with interest at the rate of 6%
within a specified time.
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W.P.No.18263 of 2021
For Petitioner .. Mr.V.Ajay Khose
For Respondents .. Mr.A.Sundaravadanam
Standing Counsel (for R.1 and R.2)
Mr.C.S.K.Sathish (for R.3)
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.
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
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W.P.No.18263 of 2021
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.Ajoy Khose 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 have 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 is already facing
severe financial strain, and unable to sustain itself and any further
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W.P.No.18263 of 2021
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
writ petitions are disposed of with the following directions;
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W.P.No.18263 of 2021
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 present Writ Petition stands disposed of
accordingly. No costs.
17.12.2021
tri/mrm
Index:Yes/No
Internet:Yes
https://www.mhc.tn.gov.in/judis
W.P.No.18263 of 2021
To
1.Tamil Nadu State Transport Corporation (Salem) Ltd,
Represented by its The Managing Director,
No.12, Ramakrishna Road,
Salem -7.
2.Tamil Nadu State Transport Corporation (Salem) Ltd,
Represented by its General Manager,
Dharmapuri Region, Bharathipuram,
Dharmapuri.
3.Tamil Nadu State Transport Corporation,
Employees' Pension Fund Trust,
Represented by its Administrator,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis
W.P.No.18263 of 2021
V.PARTHIBAN,J.
tri/mrm
W.P.No.18263 of 2021
17.12.2021
https://www.mhc.tn.gov.in/judis
