Madras High Court
K.Raghu vs The Tamil Nadu State Transport ... on 22 July, 2021
W.A.(MD)No.1413 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 22.07.2021
CORAM:
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MRS.JUSTICE S.ANANTHI
W.A.(MD)No.1413 of 2021
K.Raghu ... Appellant
Vs.
1.The Tamil Nadu State Transport Corporation Limited,
Represented by its Managing Director,
Thirunelveli Division,
Thirunelveli - 627 011.
2.The Administrator,
The Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Thiruvalluvar Illam,
Pallavan Salai,
Chennai - 600 002. : Respondents
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W.A.(MD)No.1413 of 2021
PRAYER: Writ Appeal filed under Clause 15 of Letters Patent Act,
praying to set aside the order dated 25.03.2021 passed in
W.P.(MD).No.6736 of 2021.
For Appellant : Mr.A.K.Thangavelu
For Respondents : Mr.R.Raja Mohan
Standing Counsel for Transport
JUDGMENT
*************
[Judgment of the Court was delivered by T.S.SIVAGNANAM, J.]
Heard Mr.A.K.Thangavelu, learned Counsel appearing for the
appellant, Mr.R.Raja Mohan, learned Standing Counsel appearing
for the respondents.
2.This Writ Appeal is directed against the order in W.P.
(MD)No.6736 of 2021 dated 25.03.2021.
3.Identical impugned orders were considered for their
correctness by us in W.A.(MD)Nos.1349 & 1350 of 2021 and the
Writ Appeals were allowed by judgment dated 12.07.2021. The
operative portion of the judgment reads as follows:
“4.The appellants who are the retired
workmen of the respondent Corporation are
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W.A.(MD)No.1413 of 2021
not aggrieved by the entirety of the
impugned order, but only insofar as it has
declined the payment of interest on the
belated payment of Provident Fund and
Earned Leave Salary. Undisputed facts are
that the appellant V.Rajendran retired
during June 2019 and the appellant
S.Gnanasekaran retired in April 2019 and
their retirement benefits were settled only
on 30.01.2021. So far as the gratuity is
concerned, since it is a reward for the past
services and not a bounty, statutorily the
respondent Corporation is bound to pay
interest. Therefore, the learned Single
Bench rightly directed for payment of
interest at 6% p.a. on the belated payment
of gratuity.
5.So far as the Provident Fund and
Earned Leave Salary are concerned, the
learned Single Bench has denied the same
on the ground of pandemic. This, in our
considered view, is untenable because, the
Provident Fund and Earned Leave Salary
have also been held to be retirement
benefits and any delay in settling the same
would attract interest payable for the delay.
The decision of the Hon'ble Supreme Court
in S.K.Dua Vs. State of Haryana and
another in Civil Appeal No.184 of 2008
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W.A.(MD)No.1413 of 2021
dated 09.01.2008, will come to the aid and
assistance of the appellants. Therefore, we
are of the clear view that the delay in
payment of Provident Fund and Earned
Leave Salary also to be compensated by
payment of interest, which we fix at 6% p.a.
It is submitted before us that insofar as
appellant Rajendran, the retirement benefits
were settled 21 months after he retired and
insofar as Gnanasekaran, it was settled after
19 months he retired from service.
6.In the light of the above, these Writ
Appeals are allowed and that portion of the
impugned orders declining grant of interest
on belated payment of Provident Fund and
Earned Leave Salary is set aside and the
respondent Corporation is directed to pay
interest at the rate of 6% p.a. for the period
of delay. This direction be complied with
within a period of six [6] weeks from the
date of receipt of a copy this judgment.
However, there shall be no order as to
costs.”
4.Following the above decision, this Writ Appeal is also
disposed of with a direction to the Respondent Corporation to pay
interest at the rate of 6% p.a. for the period of delay. This direction
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W.A.(MD)No.1413 of 2021
be complied with within a period of six [6] weeks from the date of
receipt of a copy of this judgment. However, there shall be no order
as to costs.
[T.S.S., J.] & [S.A.I., J.]
22.07.2021
Index : Yes / No
Internet: Yes / No
MR
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 Corporation Limited,
Thirunelveli Division,
Thirunelveli - 627 011.
2.The Administrator,
The Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Thiruvalluvar Illam,
Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis/
W.A.(MD)No.1413 of 2021
T.S.SIVAGNANAM., J.
and
S.ANANTHI., J.
MR
JUDGMENT MADE IN
W.A.(MD)No.1413 of 2021
22.07.2021
https://www.mhc.tn.gov.in/judis/
