Madras High Court
V.Desingu vs Tamil Nadu State Transport ... on 23 December, 2021
1
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 23.12.2021
CORAM
THE HON'BLE Mr. JUSTICE V.PARTHIBAN
W.P.Nos.27353, 27349, 27358, 27360 & 27363 of 2021
V.Desingu ... Petitioner in W.P.No.27353 of 2021
S.Subramanian ... Petitioner in W.P.No.27349 of 2021
K.Sellappan ... Petitioner in W.P.No.27358 of 2021
K.Rajamanickam ... Petitioner in W.P.No.27360 of 2021
T.Bhuvaneshwari ... Petitioner in W.P.No.27363 of 2021
Vs.
1.Tamil Nadu State Transport Corporation (Salem) Ltd.,
Rep by its Managing Director,
No.12, Ramakrishna Road,
Salem - 7. ... Respondent in W.P.Nos.27349, 27358,
27360 & 27363 of 2021
1.Tamil Nadu State Transport Corporation (Salem) Ltd.,
Rep by its Managing Director,
No.12, Ramakrishna Road,
Salem - 7.
2.Tamil Nadu State Transport Corporation
Employees' Pension Fund Trust,
Rep by its Administrator,
Thiruvalluvar Illam, Pallavan Salai,
Chennai – 600 002. ... Respondents in W.P.No.27353 of 2021
https://www.mhc.tn.gov.in/judis
Prayer in W.P.No.27353 of 2021: Petition filed under Article 226 of
The Constitution of India praying to issue a Writ of Mandamus, directing
the Respondents to pay the petitioner interest at the rate of 6% per annum
for the belated payment of his PF, gratuity and commuted value of
pension, to pay him wages towards 30 days of earned leaves surrendered
by the petitioner, while he was in service; to settle the amounts payable
under the Social Security scheme, Family Benefit Fund, IRT
Contributions and to refund of contributions under the Post Retirement
Benefit Scheme, together with interest at the rate of 6% within a
specified time.
Prayer in W.P.Nos.27349, 27358, 27360 & 27363 of 2021: Petitions
filed under Article 226 of The Constitution of India praying to issue a
Writ of Mandamus, directing the Respondent to pay the petitioner
interest at the rate of 6% per annum for the belated payment of his PF,
gratuity and earned leave salary, to pay him wages towards 30 days of
earned leaves surrendered by the petitioner, while he was in service; to
settle the amounts payable under the Social Security Scheme, Family
Benefit Fund, IRT Contributions and to refund of contributions under the
Post Retirement Benefit Scheme, together with interest at the rate of 6%
within a specified time.
For Petitioner
in all W.Ps : Mr.V.Ajoy Khose
For Respondents
in all W.Ps : Mr.A.Sundaravadanam for R1
: Mr.C.S.K.Sathish for R2 in
W.P.No.27353 of 2021
https://www.mhc.tn.gov.in/judis
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.
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
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it was also opposed by the counsels who are representing the corporation.
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.V.Ajoy Khose 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 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
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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 counsels 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
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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, 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.
https://www.mhc.tn.gov.in/judis
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. These Writ Petitions stand disposed of accordingly. No
costs.
23.12.2021
Index : yes/No
Internet : Yes
gsk/mpl
To
1.The Managing Director,
Tamil Nadu State Transport Corporation (Salem) Ltd.,
No.12, Ramakrishna Road,
Salem - 7.
2.The Administrator,
Tamil Nadu State Transport Corporations,
Employees' Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai – 600 002.
https://www.mhc.tn.gov.in/judis
V.PARTHIBAN,J.
gsk/mpl
W.P.Nos.27353,27349, 27358, 27360 & 27363 of 2021
23.12.2021
https://www.mhc.tn.gov.in/judis
