Madras High Court
J. Anbarasu vs The Tamil Nadu State Transport on 26 July, 2021
W.P.No.13679 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.07.2021
CORAM
THE HON'BLE MR. JUSTICE S.S.SUNDAR
W.P.Nos. 13679, 13680, 13683, 13685, 13686 and 13689 of 2021
W.P.Nos. 13679 of 2021:
J. Anbarasu ..Petitioner
Versus
1. The Tamil Nadu State Transport
Corporation (Villupuram) Limited,
Represented by its Managing Director,
3/137, Salamedu,
Villupuram - 605 602.
2. The General Manager,
Tamil Nadu State Transport Corporation,
(Villupuram) Limited,
Vellore Region,
Rangapuram,
Vellore - 632 09.
3. Tamil Nadu State Transport Corporation,
Employees' Pension Fund Trust,
Rep. by its Administrator,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002. ... Respondents
https://www.mhc.tn.gov.in/judis/
W.P.No.13679 of 2021
Writ 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% p.a. for the belated payment of his
gratuity, earned leave salary and commuted value of pension and also to pay
the petitioner a sum of Rs.31660/- towards difference in gratuity and a sum
of Rs.15,925/- towards difference in earned leave salary, together with
interest at the rate of 6% till the amounts are actually paid, within a
specified time as may be fixed by this Court.
For Petitioner : Mr. R. Krishnasamy
For Respondents : Mr. C.S.K. Sathish
Standing Counsel
COMMON ORDER
Since all these writ petitions involve one and the same issue, they are
being disposed of in common.
W.P.No. 13679 of 2021, is filed by the petitioner seeking for issuance
of a Writ of Mandamus directing the respondents to pay the petitioner
interest at the rate of 6% p.a. for the belated payment of his gratuity, earned
leave salary and commuted value of pension and also to pay the petitioner a
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W.P.No.13679 of 2021
sum of Rs.31660/- towards difference in gratuity and a sum of Rs.15,925/-
towards difference in earned leave salary, together with interest at the rate
of 6% till the amounts are actually paid, within a specified time as may be
fixed by this Court.
2. In this context, a Division Bench of this Court, in the decision
in Government of Tamil Nadu, represented by the Secretary to
Government, Revenue Department and another vs. M. Deivasigamani,
(2009) 3 MLJ 1, has categorically stated that an employee is entitled to
claim interest for belated payment of pension and other retiral benefits in the
absence of any Statutory Rule, Administrative Instruction or Guideline.
Further, an employee can claim interest under Part III of the Constitution
relying on Articles 14, 19 and 21 of the Constitution of India. In Para No.6,
it was held thus:-
6. The contention of the appellant that as per the
Government norms, interest can be paid only on Death-cum-
Retirement Gratuity, in case of delay and the same cannot be
awarded to any other retiral benefits, is not tenable, in view
of the decision of the Supreme Court in S.K. Duew vs. State
of Haryana (2008) 3 SCC 44. In the reported case, the
https://www.mhc.tn.gov.in/judis/
W.P.No.13679 of 2021
appellant therein was served with three charge sheets/show
cause notices in June 1998, few days before his retirement.
However, he retired on 30.06.1998 on reaching the age of
superannuation. He was paid provisional pension, but other
retiral benefits were not given to him, which included
commuted value of pension, leave encashment, gratuity,
etc., They wee withheld till the finalisation of disciplinary
proceedings. While answering the issue as to whether the
appellant therein was entitled to interest on delayed payment
of retiral benefits, in the absence of any statutory rules,
administrative instructions or guidelines, the Supreme Court
at Paragraph 14 of the judgment, held as follows:-
"14. In the circumstances, prima facie, we are of the
view that the grievance voiced by the appellant appears to
be well founded that he would be entitled to interest on such
benefits. If there are statutory rules occupying the field, the
appellant could claim payment of interest relying on such
rules. If there are administrative instructions, guidelines or
norms prescribed for the purpose, the appellant may claim
benefit of interest on that basis. But even in the absence of
statutory rules, administrative instructions or guidelines, an
employee can claim interest under Part III of the
Constitution relying on Articles 14, 19 and 21 of the
Constitution. The submission of the learned counsel for the
appellant, that retiral benefits are not in the nature of
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W.P.No.13679 of 2021
'bounty' is, in our opinion, well founded and needs no
authority in support thereof. In that view of the matter, in
our considered opinion, the High Court was not right in
dismissing the petition in limine even without issuing notice
to the respondents."
7. In view of the judgment of the Supreme Court,
it is now well settled that an employee is entitled to interest
on belated payment of pension and other retiral benefits,
even in the absence of statutory rules/administrative
instructions or guidelines and he can make his claim for
interest, under Part III of the Constitution, relying on
Articles 14, 19 and 21 of the Constitution.
3. Similarly, in the decision in D.P. Selvaraj vs. Government of
Tamil Nadu, rep. by the Secretary to Government, Finance (T &A1)
Department, Chennai, (2009) 5 MLJ 1361, a learned single Judge of this
Court held that when there is a delay in disbursement of the retirement
benefits, the Government servant is entitled to receive interest on the
belated payment of retiral benefits, particularly when the delay is not on the
part of the employee. In Para No.8, it was held as follows:-
"8. Considering the submissions made by
the learned counsels appearing on behalf of the
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W.P.No.13679 of 2021
petitioner, as well as the respondent, this Court
finds that nothing has been shown by the learned
counsel appearing on behalf of the respondent to
deny the claims made on behalf of the petitioner.
Further, the learned Government Advocate
appearing for the respondent has not been in a
position to show that the delay in payment of the
arrears of the retiral benefits is due to the
petitioner. In such circumstances, the respondent
is directed to pay the arrears of the retiral benefits,
due to the petitioner, along with the interest at the
rate of 12% per annum from the date when the
amounts fell due till the date of its actual payment.
Such payment shall be made within a period of
twelve weeks from the date of receipt of a copy of
this order."
4. The above decisions are squarely applicable to the facts of this
case. In this case, admittedly, the delay is only on the part of the
respondents and not on the part of the petitioner and therefore, the petitioner
is entitled to the benefit of interest.
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W.P.No.13679 of 2021
5. Taking into account the prevailing COVID-19 Pandemic
situation, this Court is of the view that the petitioner is entitled to get
interest at the rate of 4% per annum from the date when the amounts fell due
till the date of actual payment. However, this Court is unable to give any
positive direction with regard to payment of difference in gratuity and
difference in leave salary and it is for the respondents to take a decision
thereon.
6. Accordingly, these Writ Petitions are disposed of. With regard
to payment of gratuity and leave salary, it is open to the petitioner to pursue
his case. If the respondents have no dispute with regard to the petitioner's
entitlement, the same is also to be disbursed of within a period of six weeks
from the date of receipt of a copy of this order. No costs.
26.07.2021
Index:Yes / No
Internet: Yes / No
Speaking / Non-Speaking order
msm
https://www.mhc.tn.gov.in/judis/
W.P.No.13679 of 2021
To
1. The Managing Direcotr,
Tamil Nadu State Transport
Corporation (Villupuram) Limited,
3/137, Salamedu,
Villupuram - 605 602.
2. The General Manager,
Tamil Nadu State Transport Corporation,
(Villupuram) Limited, Vellore Region,
Rangapuram, Vellore - 632 09.
3. Tamil Nadu State Transport Corporation,
Employees' Pension Fund Trust,
Rep. by its Administrator,
Thiruvalluvar Illam, Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis/
W.P.No.13679 of 2021
S.S.SUNDAR, J.
msm
W.P.No. 13679 of 2021
26.07.2021
https://www.mhc.tn.gov.in/judis/
