T.Periaswamy vs The State Of Tamil Nadu ...
2021 Latest Caselaw 25101 Mad

Citation : 2021 Latest Caselaw 25101 Mad
Judgement Date : 21 December, 2021

Madras High Court

T.Periaswamy vs The State Of Tamil Nadu ... on 21 December, 2021

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 21.12.2021

                                                      Coram

                                       The Hon'ble Mr. Justice V.PARTHIBAN

                                          W.P.Nos.27099 & 27136 of 2021

                     T.Periaswamy                        ... Petitioner in W.P.No.27099 of 2021

                     C.Balakrishnan                      ... Petitioner in W.P.No.27136 of 2021

                                                        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,
                       Represented by its Administrator,
                       Thiruvalluvar Illam, Pallavan Salai,
                       Chennai - 600 002.
                                                                  ...Respondents in both W.Ps.

PRAYER in both W.Ps:Petitions 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

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

sought for in their representations dated 01.12.2021 and 10.11.2021 within a time to be stipulated by this Hon'ble Court.

                     In both W.Ps
                               For Petitioners              .. Mr.L.Chandrakumar

                                       For Respondents      .. Mr.L.S.M.Hasan Fizal, AGP for R1& R2
                                                               Mr.C.S.K.Sathish,
                                                               Standing counsel for R3

                                                       COMMON ORDER

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.

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

3. Today, when these 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 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 Nos.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 respondents uniformly

submitted that already the Corporation has suffered huge losses due to https://www.mhc.tn.gov.in/judis

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

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

payable till the entire amounts are settled to the employees

concerned.

7. These Writ Petitions stand disposed of accordingly. No costs.

21.12.2021 gsk/tri

Index:Yes/No Internet:Yes

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

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.