Madras High Court
M.Anthonyraj vs The Managing Director on 21 December, 2021
W.A.(MD) No.2222 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 21.12.2021
CORAM :
THE HON'BLE MR.MUNISHWAR NATH BHANDARI,
ACTING CHIEF JUSTICE
AND
THE HON'BLE MRS.JUSTICE PUSHPA SATHYANARAYANA
W.A.(MD) No.2222 of 2021
M.Anthonyraj ... Appellant/Petitioner
Vs.
1.The Managing Director,
Tamil Nadu State Transport Corporation (MDU) Ltd.,
Bye-Pass Road,
Madurai – 625 016.
2.The General Manager,
Tamil Nadu State Transport Corporation (MDU) Ltd.,
Collectorate Post,
Bye-Pass Road,
Dindigul – 624 004. ... Respondents/Respondents
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https://www.mhc.tn.gov.in/judis
W.A.(MD) No.2222 of 2021
PRAYER: Writ Appeal filed under Clause 15 of Letters Patent to set aside the
order, dated 26.03.2021, passed in W.P.(MD) No.6927 of 2021, on the file of this
Court.
For Appellant : Mr.K.Gokul,
For Respondents : Mr.P.Thilak Kumar,
Government Pleader
JUDGMENT
[Judgment of the Court was delivered by
The Hon'ble ACTING CHIEF JUSTICE]
By this Writ Appeal, a challenge is made to the judgment dated 26.03.2021,
passed in W.P.(MD) No.6927 of 2021, where the Writ Court allowed the benefit of
interest on delayed payment of Gratuity while denying all other retiral dues.
2. Learned Counsel for the appellant submitted that there was no reason for the
Court to deny interest on the delayed payment on all retiral dues, it is more so, when a
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W.A.(MD) No.2222 of 2021
similar prayer in regard to the payment of interest was allowed by the Division Bench of
this Court in other set of litigations. The benefit of interest has been claimed on the
delayed payment because even after retirement in the month of June 2019, the settlement
of dues was made in the month of January, 2021. Therefore, the appellant is entitled to
interest on all the retiral dues. The prayer is accordingly to allow the interest on other
retiral dues as well.
3. The learned Government Pleader has contested the appeal, but could not justify
the denial of interest on retiral dues. It is not in dispute that the appellant retired in the
month of June 2019, but the settlement of retiral dues was made only in January 2021.
4. In view of the facts given above, we find no reason for the learned Single Judge
to deny the benefit of interest on all the retiral dues and keeping it limited to only
Gratuity. The retiral dues in terms of Leave Encashment or other benefits should have
been made on the date of retirement or within a reasonable period given, but cannot be
with a delay of more than a year and in case of delay, the employees are entitled to
interest.
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W.A.(MD) No.2222 of 2021
5. Accordingly, this Writ Appeal is allowed and the judgment of the learned Single
Judge is modified to the extent of grant of benefit of interest on all retiral dues at the rate
of 6% p.a. The payment arising out of the decision herein would be made within a period
of four [4] months from the date of receipt of a copy of this judgment. There shall be no
order as to costs.
[M.N.B., A.C.J.] [P.S.N., J.]
21.12.2021
Index : Yes / No
Internet : Yes / No
MR/RM
Note : In view of the present lock down owing to COVID-19
pandemic, a web copy of the order may be utilized for
official purposes, but, ensuring that the copy of the order that
is presented is the correct copy, shall be the responsibility of
the Advocate / litigant concerned.
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W.A.(MD) No.2222 of 2021
To
1.The Managing Director,
Tamil Nadu State Transport Corporation (MDU) Ltd.,
Bye-Pass Road,
Madurai – 625 016.
2.The General Manager,
Tamil Nadu State Transport Corporation (MDU) Ltd.,
Collectorate Post,
Bye-Pass Road,
Dindigul – 624 004.
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https://www.mhc.tn.gov.in/judis
W.A.(MD) No.2222 of 2021
THE HON'BLE ACTING CHIEF JUSTICE
and
PUSHPA SATHYANARAYANA, J.
MR/RM
W.A.(MD) No.2222 of 2021
21.12.2021
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