S.Mallika vs Tamil Nadu State Transport
2021 Latest Caselaw 25102 Mad

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 21.12.2021

                                                        Coram

                                       The Hon'ble Mr. Justice V.PARTHIBAN

                                                W.P.No.23173 of 2021

                     S.Mallika                                                         ...Petitioner

                                                          Vs.
                     1.Tamil Nadu State Transport
                       Corporation (Villupuram) Ltd.,
                       Represented by its Managing Director,
                       3/137, Salamedu,
                       Valudha Reddy Post,
                       Villupuram- 605 602.

                     2.Tamil Nadu State Transport
                       Corporation (Villupuram) Ltd,
                       Represented by its General Manager,
                       Kancheepuram Regional Office,
                       Karapettai,
                       Chennai-Bengaluru High way,
                       Kancheepuram - 631 552.

                     3.The Administrator,
                       Tamil Nadu State Transport Corporation
                       Employees' Pension Fund Trust,
                       Thiruvalluvar House, 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 settle all
                     the retiral benefits including Provident Fund, Service Gratuity, Leave Salary,

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                     1/8
                     Commutation of pension and other attendant benefits payable to the
                     petitioner consequent to her retirement on 30.11.2020 with 6% interest per
                     annum from the date of retirement within the time limit that may be
                     prescribed by this Court in accordance with the order passed by this Court
                     on 19.01.2021 in W.P.No.15886 of 2020.

                                        For Petitioner     ..    Mr.N.Ishak

                                       For Respondents     ..    Mr.C.S.K.Sathish,
                                                                 Standing Counsel for R.1 to R.3

                                                                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 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.N.Ishak 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.

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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

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

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

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.

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 the

employees who have been settled belatedly their retirement

benefits within a period of 8 weeks from the date of receipt of

a copy of the 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 a copy

of this order.

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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. This Writ Petition stands disposed of accordingly. No costs.

21.12.2021 gsk/tri

Index:Yes/No Internet:Yes

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To

1.Managing Director, Tamil Nadu State Transport Corporation (Villupuram) Ltd., 3/137, Salamedu, Villupuram- 605 602.

2.The General Manager, Tamil Nadu State Transport Corporation (Villupuram) Ltd, Kancheepuram Regional Office, Karapettai, Chennai Bangaluru High way, Kancheepuram - 631 552.

3.The Administrator, Tamil Nadu State Transport Corporations, Employees' Pension Fund Trust, Thiruvalluvar House, Pallavan Salai, Chennai - 600 002.

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

V.PARTHIBAN,J.

gsk/tri

W.P.No.23173 of 2021

21.12.2021

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