Madras High Court
R.Nageswaran vs The Management Of Tamil Nadu on 26 July, 2021
W.P.No.11025 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26.07.2021
CORAM:
THE HONOURABLE Mr. JUSTICE S.S.SUNDAR
W.P. No.11025 of 2021
(Through Video Conference)
R.Nageswaran ... Petitioner
Vs.
1.The Management of Tamil Nadu
State Transport Corporation (Kovai) Ltd.,
Erode Region,
Rep. by its Managing Director, Erode.
2. The Administrator,
Tamil Nadu State Transport
Employees' Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai, Chennai 600 002 ... Respondents
PRAYER: 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 18% per annum, for the period of delay from
01.06.2018 to 20.09.2019, in paying the amounts paid towards the terminal and
pension benefits of the petitioner namely EPF Employee's Contribution,
Gratuity, Encashment of Earned / Sick Leaves and Commutated Value of
Pension, within a time frame as may be fixed by this Court.
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W.P.No.11025 of 2021
For Petitioner : Mr. V.Ajoy Khose
For Respondents : Mr. A.Sundaravadanam,
Standing Counsel
******
O RD E R
Mr. A.Sundaravadanam, learned Standing Counsel, takes notice on
behalf of the respondents.
2. This Writ Petition has been filed for the issuance of a Writ of
Mandamus, directing the respondents herein to pay the petitioner interest at the
rate of 18% per annum for the period of delay from 01.06.2018 to 20.09.2019
towards the belated payment of the petitioner's terminal and pension benefits,
namely E.P.F. Employee's Contribution, Gratuity, Encashment of Earned / Sick
Leaves and Commutated Value of Pension, within a time stipulated by this
Court.
3. There is no dispute with regard to the fact about the belated payment
to the petitioner. Learned counsel appearing for the petitioner submitted that in
similar cases though interest at the rate of 6% was awarded by this Court,
recently in a few judgments of this Court, the rate of interest has been reduced
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W.P.No.11025 of 2021
from 6% to 4% based on the request of Transport Corporation because of their
financial crisis due to COVID-19 Pandemic. Learned counsel appearing for the
petitioner states that there is no dispute with regard to the factual averments. He
would also further state that the second respondent is the Competent Authority
to disburse the commuted value of pension and the first respondent is the
person who is liable to pay other Counts. It is well settled that retirement dues
must be paid in time.
4. Having regard to the facts and circumstances, and the precedents and
the consistent view taken by this Court, this Court is of the view that the
respondents are liable to pay an interest at 4% per annum for the delay in
payment of terminal benefits to the petitioner in this writ petition.
5. The learned Standing Counsel appearing for the respondents has no
serious objection as to the grant of interest at the rate of 4% and a direction to
pay the interest in six equal instalments.
6. Based on the submissions of the learned counsel appearing for the
petitioner and the learned Standing Counsel appearing for the respondents, this
Court is inclined to pass orders in the following lines:
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W.P.No.11025 of 2021
(i) The respondents are directed to pay the petitioner an interest
at the rate of 4% for the delayed payment of terminal benefits in
six (06) monthly instalments, commencing from 01.09.2021;
(ii) In case of any dispute with regard to the quantum of amount
payable under any head, it is open to the petitioner to work out
either amicably or by approaching proper forum;
(iii) In case the amount is not disbursed within the above said
instalments, and if there is a delay of more than three months,
then, the petitioner is entitled for an interest at 6% per annum;
and
(iv) If the delay exceeds more than one year from the date of
first instalment, then, the petitioner is entitled to approach this
Court for a higher rate of interest.
6. With the above directions, this writ petition is disposed of. No costs.
26.07.2021
Index :Yes / No
Speaking order / Non speaking order
sts
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W.P.No.11025 of 2021
To
1.The Managing Director,
Management of Tamil Nadu
State Transport Corporation (Kovai) Ltd.,
Erode Region, Erode.
2. The Administrator,
Tamil Nadu State Transport
Employees' Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai, Chennai 600 002
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W.P.No.11025 of 2021
S.S.SUNDAR. J.,
sts
Order made in
W.P. No.11025 of 2021
Dated:
26.07.2021
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