Madras High Court

T.Marudhavanan vs The Principal Secretary To ... on 22 December, 2021

                                                              W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020




                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED: 22.12.2021

                                                           CORAM

                                      THE HONOURABLE MR.JUSTICE V.PARTHIBAN

                                                  W.P.Nos.20931 of 2019 and
                                                   17203 and 18419 of 2020

                     W.P.No.20931 of 2019

                     T.Marudhavanan                                                         ... Petitioner
                                                      -Vs.-
                     1.The Principal Secretary to Government,
                       Transport Department,
                       Fort.St.George, Chennai - 600 009.

                     2.The Managing Director,
                       Tamil Nadu State Transport Corporation (VPM) Ltd,
                       3/137 Salamedu,
                       Valuthareddy-Post,
                       Villupuram-605 602.

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

                                  Writ Petition filed under Article 226 of the Constitution of India
                     praying to issue a Writ of Mandamus, directing the 2nd and 3rd
                     respondents to disburse the retirement benefits, viz., Earned Leave
                     Surrender Salary Amount of Rs.5,92,404/-, Gratuity Amount of


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                                                              W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020




                     Rs.9,62,753/-, Pension Commutation Amount of Rs.8,39,276/-, Provident
                     Fund Contribution Amount of Rs.5,664/-, Post Retirement Benefit Fund
                     Amount of Rs.18,500/- the total comes to Rs.24,18,597/- (Rupees Twenty
                     Four Lakhs Eighteen Thousand and Five Hundred Ninety Seven Only)
                     with 18% interest on delayed payment to the petitioner the
                     Superintendent who has retired from service on 31.05.2018.

                     W.P.No.17203 of 2020
                     Gurunathan                                                             ... Petitioner
                                                             -Vs.-

                     1.The Principal Secretary to Government,
                       Transport Department,
                       Secretariat, Chennai-600 009.

                     2.The Managing Director,
                       Metropolitan Transport Corporation (Chennai) Ltd,
                       Anna Salai, Chennai-600 002.

                     3.The Administrator,
                       Tamil Nadu State Transport Corporation,
                       Pension Fund Trust, Thiruvalluvar House,
                       Pallavan Salai, Chennai 600 002.                                   .. Respondents

                                  Writ Petition filed under Article 226 of the Constitution of India
                     praying to issue a Writ of Mandamus directing the 2nd                         and 3rd
                     respondents to pay interest at the rate of 18% per annum for the belated
                     payment of retirement benefits as per the representation dated
                     30.09.2019, 01.10.2019 and 22.10.2019 within the time limit that may
                     be fixed by this Hon'ble Court.


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                                                              W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020




                     W.P.No.18419 of 2020
                     Pandian                                                                ... Petitioner
                                                             -Vs.-

                     1.The Principal Secretary to Government,
                       Transport Department,
                       Secretariat, Chennai-600 009.

                     2.The Managing Director,
                       Metropolitan Transport Corporation (Chennai) Ltd,
                       Anna Salai, Chennai 600 002.                                       .. Respondents

                                  Writ Petition filed under Article 226 of the Constitution of India
                     praying to issue a Writ of Mandamus, directing the 2nd respondent to
                     pay interest at the rate of 18% per annum for the belated payment of
                     retirement benefits as per the representation dated 30.09.2019,
                     01.10.2019 within the time limit that may be fixed by this Hon'ble Court.


                                  For Petitioner in all WPs : Mr.D.Veerasekharan

                                  For R1 in all WPs        : Mr.L.S.M.Hasan Fizal,
                                                             Additional Government Pleader
                                  For R2 & R3 in
                                  W.P.20931 of 2019        : Mr.G.Saravana Kumar

                                  For R2 & R3 in
                                  W.P.Nos.17203 &
                                  18419 of 2020            : Mr.K.Moorthy.

                                                            ******

https://www.mhc.tn.gov.in/judis W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020

COMMON ORDER

In these writ petitions, the prayers are 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 these batch of 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 counsels who are representing the

https://www.mhc.tn.gov.in/judis W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020

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.D.Veerasekharan 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

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

https://www.mhc.tn.gov.in/judis W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020

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

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

https://www.mhc.tn.gov.in/judis W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020

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% after the

expiry of 8 weeks of period of time and such percentage

would become payable till the entire amounts are settled to

https://www.mhc.tn.gov.in/judis W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020

the employees concerned.

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

22.12.2021

Speaking/Non-speaking order Index: Yes/No Internet : Yes/No ms

1.The Principal Secretary to Government, Transport Department,

https://www.mhc.tn.gov.in/judis W.P.Nos.20931 of 2019 and 17203 & 18419 of 2020

Secretariat, Fort.St.George, Chennai - 600 009.