Madras High Court
K.Varadaraju vs Tamil Nadu State Transport on 1 November, 2021
W.P.No.23440 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.23440 of 2021
(Through Video Conferencing)
K.Varadaraju ... Petitioner
Vs.
Tamil Nadu State Transport
Corporation (Salem) Limited,
Represented by its Managing Director,
No.12, Ramakrishna Road,
Salem – 7. ... Respondent
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 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.
For Petitioner : Ms.H.Nandhini
For Respondent : Mr.D.Raghu
Standing Counsel
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Page No. 1 of 4
W.P.No.23440 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
respondent to pay interest at the rate of 6% per annum for the belated
payment of the petitioner's Provident Fund, Gratuity 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.
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.23440 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 28.07.2021 of the petitioner
and to pay interest at the rate of 4% per annum for the belated payment of
Provident Fund, Gratuity, Earned Leave Salary and other legal dues to the
petitioner in six equated monthly instalments commencing from 1st
December, 2021.
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W.P.No.23440 of 2021
C.SARAVANAN,J.
arb
5. In case the petitioner is also entitled to Earned Leave surrendered by
the petitioner, the same shall also be paid by the respondent at the rate of 4%
per annum along with the aforesaid amounts. No costs.
01.11.2021
(2/7)
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
To
The Managing Director,
Tamil Nadu State Transport
Corporation (Salem) Limited,
No.12, Ramakrishna Road,
Salem – 7.
W.P.No.23440 of 2021
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https://www.mhc.tn.gov.in/judis
