Madras High Court
P.Pradhaban vs The Managing Director on 7 January, 2021
W.P.(MD) No.99 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 07.01.2021
CORAM:
THE HONOURABLE MR.JUSTICE M.S.RAMESH
W.P.(MD) No.99 of 2021
P.Pradhaban ...Petitioner
Vs
1.The Managing Director,
Tamil Nadu State Transport Corpn., (KMB) Ltd.,
New Railway Station Road,
Kumbakonam-612001.
2.The General Manager,
Tamil Nadu State Transport Corpn., (KMB) Ltd.,
Kumbakonam Region,
New Railway Station Road,
Kumbakonam-612001. ...Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India for issuance of Writ of Mandamus, to direct the respondents to
settle the petitioner's surrender leave salary for 158 days in respect of the
years 2011-2012, 2012-2013, 2013-2014, 2014-2015, 2015-2016,
2016-2017 and 2017-2018 together with interest at the rate of 18% per
annum payable from the date for retirement to till the date of actual
payment.
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W.P.(MD) No.99 of 2021
For Petitioner : Mr.K.Gokul
For Respondents : Mr.D.Sivaraman
Standing Counsel
ORDER
This writ petition has been filed for issuance of Writ of Mandamus,
directing the respondents to settle the petitioner's surrender leave salary
for 158 days in respect of the years 2011-2012, 2012-2013, 2013-2014,
2014-2015, 2015-2016, 2016-2017 and 2017-2018, together with
interest at the rate of 18% per annum payable from the date of retirement
to till the date of actual payment.
2.Heard Mr.K.Gokul, learned counsel appearing for the petitioner
and Mr.D.Sivaraman, learned Standing Counsel appearing for the
respondents.
3.By consent of both parties, this writ petition is taken up for final
disposal at the admission stage itself.
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W.P.(MD) No.99 of 2021
4.The grievance of the petitioner is that after his retirement, the
respondents have not settled the surrender leave salary and therefore, he
claims the disbursement of the same together with interest.
5.The learned counsel for the petitioner, as well as the learned
Standing Counsel appearing for the respondents, submitted that the issue
involved in the present writ petition is covered by various orders of this
Court, including the order, dated 13.12.2019, passed in the case of
S.Alagesan Vs. The Managing Director, Tamil Nadu State Transport
Corporation (Kumbakonam) Ltd., and another in W.P.(MD).No.26487
of 2019. The relevant portion of the order reads as follows:
“4. An identical issue came up for
consideration before the Division Bench of this
Court in W.A(MD) No.210 of 2019 and the
Hon'ble Division Bench by judgment dated
04.09.2019 had upheld the view of the learned
Single Judge against which the writ petition
came to be filed and also rejected the
Corporation plea that the employee had not
claimed the encashment of the surrender leave
within the stipulated time. The relevant
portion of the said order reads as follows:-
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W.P.(MD) No.99 of 2021
'2. This appeal is filed by the Tamil
Nadu State Transport Corporation,
Kumbakonam Division. The respondent filed
W.P(MD).No.2449 of 2018 praying for a
Writ of Certiorarified Mandamus to quash
the order dated 21.12.2017 and direct the
appellants to settle the petitioner's surrender
leave salary. The appellant Corporation
resisted the claim by contending that even
though as per the settlement entered into
under Section 12(3) of the Industrial Dispute
Act, the employee is entitled for surrendering
and encashing 15 days in one year or 30
days in two years, the same has not been
done by the writ petitioner during his service
during 2011-2014 and after superannuation
only in the year 2016, he has made a claim
of surrender of earn leave, based on the
circular issued by the appellant
Corporation, dated 09.01.2017. Further, it
is submitted that the circular is not meant for
enabling the retired employees to renew their
claim of surrendering their earned leave of
15 days in a year during the service i.e.,
between 2011-2014 and it is applicable only
for existing employees. Therefore, it is
submitted that the respondent/writ petitioner
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W.P.(MD) No.99 of 2021
cannot lay his claim based upon the circular,
dated 09.01.2017. 3.The learned counsel
appearing for the respondent/writ petitioner
submitted that though the petitioner
superannuated on 31.05.2016, from the year
2011 onwards, the said practice of
surrendering 15 days or 50% of the earn
leave per year was done away by the
appellants Corporation on account of
financial crises. Further, the action based
on the settlement entered into under Section
12(3) of the Act was not available to the
respondent/writ petitioner, because the
appellants Transport Corporation is citing
financial crisis. The learned Single Judge
took into consideration the facts placed
before him and also noted the circular dated
09.01.2017 and taking note of the fact that
there is record to show that the appellants
transport corporation pleaded financial
crises for non-settling the surrender leave
salary, allowed the writ petition.
4.While doing so, the Writ Court
referred to an earlier order in the case of
A.Sundararajan Vs., Tamil Nadu State of
Transport Corporation (Kumbakonam
Limited) [W.P(MD).No.24245 of 2016 etc
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W.P.(MD) No.99 of 2021
batch], wherein similar relief sought for has
been granted and the writ petitions were
allowed and the appellants Transport
Corporation was directed to implement the
same. Thus in our considered view, the
learned Single Judge has rightly gone into
the factual position and took note of stand of
the appellants corporation as to why earlier
they did not permit surrender and allowed
the writ petition. Therefore, we find that the
appellants have not made out any ground to
interfere with the order passed by the
learned Single Judge.'
5. In the light of the above, this
Court is of the view that the petitioner would
be entitled to claim salary for the surrendered
leave.”
6.In view of the aforesaid decision being in favour of the
petitioner, this Court is also of the view that the petitioner herein is
entitled to succeed in the present writ petition.
7.At this juncture, Mr.D.Sivaraman, learned Standing Counsel
appearing for the respondent Corporation submitted that the Division
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W.P.(MD) No.99 of 2021
Bench of this Court as well as the learned Single Judges of this Court in
many cases have ordered for payment of earned leave salary, but have not
granted interest and therefore, he submitted that the interest need not be
paid for non-surrender of earned leave.
8.In all the decisions cited by the learned Standing Counsel, both
the Division Bench, as well as the learned Single Judges, there is no
discussion with regard to the non entitlement of the interest. Since there
is no dictum laid down in any of the decisions to the effect that the
employees will not be entitled for interest on belated payment of earned
leave, I am unable to accept these submissions made by the learned
Standing Counsel.
9.Accordingly, there shall be a direction to the respondents herein
to settle the surrender leave salary for 158 days, in respect of the years
2011-2012, 2012-2013, 2013-2014, 2014-2015, 2015-2016, 2016-2017
and 2017-2018, together with interest at the rate of 6% per annum from
the date of retirement till the date of actual disbursement. The
respondents shall be entitled to disburse the surrender leave salary in six
Equal Monthly Installments and the 1st Installment shall commence from
1st of March 2021.
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W.P.(MD) No.99 of 2021
M.S.RAMESH, J.
cp
10.This writ petition stands allowed accordingly. No costs.
07.01.2021
Index : Yes / No
Internet : Yes / No
cp
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.
To
1.The Managing Director,
Tamil Nadu State Transport Corpn., (KMB) Ltd.,
New Railway Station Road,
Kumbakonam-612001.
2.The General Manager,
Tamil Nadu State Transport Corpn., (KMB) Ltd.,
Kumbakonam Region,
New Railway Station Road,
Kumbakonam-612001.
Order made in
W.P.(MD) No.99 of 2021
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