Madras High Court
P.Srinivasan vs The State Of Tamil Nadu ... on 20 December, 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:20.12.2021
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.No.24004 of 2021
P.Srinivasan ...Petitioner
Vs.
1.The State of Tamil Nadu represented by
its Principal Secretary,
Transport Department,
Fort St.George, Chennai -9
2.The Managing Director,
State Express Transport Corporation (TN) Ltd,
Chennai - 600 002.
3.Tamil Nadu State Transport Corporation
Employees' Pension Fund Trust,
Represneted 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
interest at the rate of 6% per annum for the belated payment of leave salary,
Provident fund, gratuity and commutation as sought for in his
representation dated 20.10.2021 within a time to be stipulated by this
Court.
https://www.mhc.tn.gov.in/judis
1/7
For Petitioner .. Mr.L.Chandrakumar
For Respondents .. Mr.L.S.M.Hasan Fizal
Additional Government Pleader
for R.1 & R.3
Mr.K.Kathiresan for R.2
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 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 writ petition has been taken up for hearing, there
https://www.mhc.tn.gov.in/judis
was a clamour for claiming higher interest of 6 percent and it was also
opposed by the counsel who is representing the corporation. According to
him, 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 counsel
appearing on behalf of the petitioner would pray for 6% interest as majority
of the judges have granted the same.
4.At this learned counsel 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
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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 counsel 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 counsel appearing for the petitioner 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 petitioner. During the course of argument it is also agreed by all
the counsel 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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6.In view of the consensus being reached by the parties, this writ
petition is 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
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concerned.
7. This Writ Petition stands disposed of accordingly. No costs.
20.12.2021
gsk/tri
Index:Yes/No
Internet:Yes
To
1.The Principal Secretary,
Transport Department,
Fort St.George, Chennai -9
2.The Managing Director,
State Express Transport Corporation (TN) Ltd,
Chennai - 600 002.
3.The Administrator,
Tamil Nadu State Transport Corporations,
Employees' Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis
V.PARTHIBAN,J.
gsk/tri
W.P.No.24004 of 2021
20.12.2021
https://www.mhc.tn.gov.in/judis
