Madras High Court
The Hon'Ble Mr.Justice vs The Managing Director on 22 December, 2021
W.P.No.12431 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 22.12.2021
CORAM
THE HON'BLE Mr.JUSTICE V. PARTHIBAN
W.P.No.12431 of 2021
1.P.Eswaralingam
2.V.Chandran
3.A.Kandeeban
4.S.Murali
5.T.Sundarraj
6.V.Selvakumar
7.S.Sivasankar
8.P.Venkatesan
9.P.Chandrasekaran
10.M.Santhanakrishnan
11.N.Ezumalai
12.K.Mugamadh Ayup.
13.G.S.Subramaniyan
14.S.Parthasarathi
15.K.Thirunavukarasu
16.J.Mohan
17.S.Kumar
18.N.Ragu
19.V.Prabhakaran
20.S.Mohan
21.V.Alamelu
22.P.Idhayarasu
23.A.Vinayagam
24.T.Tamizharasan
25.K.Sekar
26.G.Ashokan
1/8
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
27.S.Kumaraguru
28.S.Sekar ... Petitioners
-Vs.-
1.The Managing Director,
Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Salamedu, Villupuram,
Villupuram District 605 602.
2.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram-III) Ltd.,
Kanchipuram Region,
Bangalore Bye pass Road, Ponnerikarai,
Kanchipuram District 631 552.
3.The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Pallavan Salai, Chennai 600 002. .. Respondents
Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus, to direct the respondents to pay the
interest at 10% for the belated payment of gratuity, leave salary,
commutation of pension amount to the petitioners.
For Petitioners : Mr.S.T.Varadarajalu
For Respondents : Mr.G.Saravanakumar for R1 and R2
Mr.C.S.K.Sathish for R3
******
2/8
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
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 batch of writ petitions have been taken up for
hearing, there was a clamour for claiming higher interest of 6 percent and
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
it was also opposed by the counsels who are representing the
corporations. 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.Varadarajalu 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.
4.At this learned counsels representing the Corporations uniformly
submitted that already the Corporations have suffered huge losses due to
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
Covid-19 situation prevailing in State for more than 20 months. The
Corporations would be unable to mobilize and come up with funds to pay
6% interest. The Corporations 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 Corporations would be unable to
bear. The Corporations 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 Corporations, which appear to this Court to be
fair and reasonable considering the weak financial position of the
Corporations, this Court persuaded the learned counsels 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
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
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 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
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
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% 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.
22.12.2021
Speaking/Non-speaking order
Index: Yes/No
Internet : Yes/No
ms
https://www.mhc.tn.gov.in/judis
W.P.No.12431 of 2021
V.PARTHIBAN, J.,
ms
To
1.The Managing Director,
Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Salamedu, Villupuram,
Villupuram District- 605 602.
2.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram-III) Ltd.,
Thiruvannamalai Region,
Bye Pass Road, Vengikkal,
Thiruvannamalai District-606 604.
3.The Administrator,
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Pallavan Salai, Chennai 600 002.
W.P.No.12431 of 2021
22.12.2021
https://www.mhc.tn.gov.in/judis
