S.Pandiyan vs Tamil Nadu State Transport
2021 Latest Caselaw 21822 Mad

Citation : 2021 Latest Caselaw 21822 Mad
Judgement Date : 1 November, 2021

Madras High Court

S.Pandiyan vs Tamil Nadu State Transport on 1 November, 2021

                                                                            W.P.No.23460 of 2021

                            IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                            DATED : 01.11.2021

                                                 CORAM

                                  THE HON'BLE MR.JUSTICE C.SARAVANAN

                                           W.P.No.23460 of 2021

                                        (Through Video Conferencing)

               S.Pandiyan                                               ... Petitioner

                                                    Vs.

               1.Tamil Nadu State Transport
                   Corporation (Salem) Limited,
                 Represented by its Managing Director,
                 No.12, Ramakrishna Road,
                 Salem – 7.

               2.Tamil Nadu State Transport Corporations
                   Employees' Pension Fund Trust,
                 Represented by its Administrator,
                 Thiruvalluvar Illam, Pallavan Salai,
                 Chennai – 600 002.                                     ... Respondents

               Prayer: Writ Petition filed under Article 226 of Constitution of India, for
               issuance of 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
               Provident Fund, Gratuity, Commuted Value of Pension 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.


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                                                                             W.P.No.23460 of 2021

                                   For Petitioner     : Ms.H.Nandhini

                                   For Respondents : Mr.D.Raghu
                                                     Standing Counsel


                                                    ORDER

This Writ Petition has been filed for a Writ of Mandamus, to direct the

respondents to pay interest at the rate of 6% per annum for the belated

payment of the petitioner's Provident Fund, Gratuity, Commuted Value of

Pension and Earned Leave Salary, to pay 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% per annum in terms

of the decision of the First Bench of the Madurai Bench of this Court in

W.A.(MD)Nos.383 to 457 of 2015.

2. The First Bench of the Madurai Bench of this Court, in the above

case, has directed the State Transport Corporation to settle the terminal

benefits of its employees in 12 equal monthly installments and to pay

interest at the rate of 6% on the terminal benefits payable to the workman.

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W.P.No.23460 of 2021

The First Bench of the Madurai Bench of this Court has also held that

workman is entitled to 18% interest for the defaulted period of installments.

3. It is noticed that though the decision of the First Bench of the

Madurai Bench of this Court was followed by a learned Single Judge in

W.P.No.15886 of 2020 vide order dated 19.01.2021, the learned Single

Judge has subsequently modified the views in W.P.No.506 of 2021 vide

order dated 24.03.2021 considering the constraints of the State Finance due

to the outbreak of Covid-19 with the following directions:-

“(i) Respondent/Transport Corporation is directed to pay interest @ 4% per annum to the Petitioner for the belated payment of gratuity, leave salary and communication of pension amount that are yet to be settled, in six equal monthly instalments, commencing 01.04.2021.

(ii) In case of delay in making instalments within the time stipulated supra, with reference to the judgment of the Division Bench of this Court (supra), interest payable for the period of delay shall be at 6% per annum.”

4. Considering the same, this Writ Petition is disposed by directing the

respondent to consider the representation dated 28.07.2021 of the petitioner

and to pay interest at the rate of 4% per annum for the belated payment of

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W.P.No.23460 of 2021

Provident Fund, Gratuity, Commuted Value of Pension, Earned Leave Salary

and other legal dues to the petitioner in six equated monthly instalments

commencing from 1st December, 2021.

5. In case the petitioner is also entitled to Earned Leave surrendered by

the petitioner, the same shall also be paid by the respondents at the rate of

4% per annum along with the aforesaid amounts. No costs.

01.11.2021 (4/8) Index : Yes/No Internet : Yes/No Speaking/Non-speaking Order