Madras High Court
R.Subramani vs The Managing Director 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.26853 of 2021 and
W.M.P.No.28308 of 2021
1.R.Subramani
2.M.Mohmed Ghouse
3.P.Ravichandran
4.S.Ramachandran
5.I.Chudaliyandi Devar
6.E.Govindarasu ...Petitioners
Vs.
1.The Managing Director,
Metropolitan Transport
Corporation (Chennai)Ltd,
2, Pallavan Illam,
Anna Salai, Chennai - 600 002.
2.The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Pallvan 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
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interest at the rate of 10% for the belated payment of terminal benefits such
as Provident Fund, Gratuity, Leave Salary and commutation of pension
amount to the petitioners.
For Petitioners .. Mr.S.T.Varadarajulu
For Respondents .. Mr.K.Moorthy
Standing Counsel (for R.1)
Mr.C.S.K.Sathish
Standing Counsel (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
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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
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.S.T.Varadarajulu 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 petitioners would pray for 6% interest as majority
of the judges have granted the same.
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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 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 counsel 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
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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, 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
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payable till the entire amounts are settled to the employees
concerned.
7. This Writ Petition stands disposed of accordingly. No costs.
Consequently, connected miscellaneous petition is also closed.
20.12.2021
gsk/tri
Index:Yes/No
Internet:Yes
To
1.The Managing Director,
Metropolitan Transport
Corporation (Chennai)Ltd,
2, Pallavan Illam,
Anna Salai, Chennai - 600 002.
2.The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Pallvan Salai, Chennai-600 002.
https://www.mhc.tn.gov.in/judis
V.PARTHIBAN,J.
gsk/tri
W.P.No.26853 of 2021
20.12.2021
https://www.mhc.tn.gov.in/judis
