N.Murugesan vs The Management Of
2021 Latest Caselaw 21874 Mad

Citation : 2021 Latest Caselaw 21874 Mad
Judgement Date : 1 November, 2021

Madras High Court

N.Murugesan vs The Management Of on 1 November, 2021

                                                                            W.P.No.23497 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.23497 of 2021

                                        (Through Video Conferencing)

               N.Murugesan                                              ... Petitioner

                                                    Vs.

               1.The Management of
                 Tamil Nadu State Transport
                   Corporation (Kovai) Limited,
                 Erode Region,
                 Represented by its Managing Director,
                 Erode.

               2.The Administrator,
                 Tamil Nadu State Transport
                   Employees' Pension Fund Trust,
                 Thiruvalluvar Illam, Anna Salai,
                 Chennai – 2.                                           ... Respondents

               Prayer: Writ Petition filed under Article 226 of Constitution of India, for
               issuance of 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 and without affecting the petitioner's right to
               claim balance amounts towards those benefits.


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               Page No. 1 of 4
                                                                             W.P.No.23497 of 2021

                                   For Petitioner     : Mr.V.Ajoy Khose

                                   For Respondents : Mr.A.Sundaravadhanam
                                                     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 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 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.

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.

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W.P.No.23497 of 2021

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 30.09.2021 of the petitioner

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

EPF Employee's Contribution, Gratuity, Encashment of Earned/Sick Leaves,

Commutated Value of Pension and other legal dues to the petitioner in six

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W.P.No.23497 of 2021

C.SARAVANAN,J.

arb

equated monthly instalments commencing from 1st December, 2021. No

costs.

01.11.2021 (6/8) Index : Yes/No Internet : Yes/No Speaking/Non-speaking Order