Madras High Court
R.Gnanasekaran vs The Managing Director on 2 November, 2021
W.P.Nos.23587 & 23589 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 02.11.2021
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.Nos.23587 & 23589 of 2021
(Through Video Conferencing)
1.R.Gnanasekaran ... Petitioner
in W.P.No.23587 of 2021
2.P.Dhanapal ... Petitioner
in W.P.No.23589 of 2021
Vs.
1.The Managing Director,
Tamil Nadu State Transport
Corporation (Salem) Limited,
Ramakrishna Salai, Salem – 636 007. ... 1st Respondent
in both W.Ps
2.The Administrator,
Tamil Nadu State Transport Employees
Post Retirement Welfare Fund Scheme,
Thiruvalluvar House, Pallavan Salai,
Chennai – 600 002. ... 2nd Respondent
in W.P.No.23587 of 2021
3.The General Manager,
Tamil Nadu State Transport
Corporation (Salem) Limited,
Barathipuram, Dharmapuri Region,
Dharmapuri – 636 705. ... 2nd respondent
in W.P.No.23589 of 2021
____________
https://www.mhc.tn.gov.in/judis/
Page No. 1 of 6
W.P.Nos.23587 & 23589 of 2021
Prayer in W.P.No.23587 of 2021: Writ Petition filed under Article 226 of
Constitution of India, for issuance of a Writ of Mandamus directing the
respondents to disburse the payments relating to interest amount of Provident
Fund, Gratuity, Earned Leave Salary and Commutation and other benefits
like, Social Welfare Scheme Amount, ERBS Pension Amount, 7 days salary
and EL Surrender Arrears and all other retirement benefits along with the
entitled difference of dearness allowances also, with interest at 12% per
annum with effect from 01.02.2020.
Prayer in W.P.No.23589 of 2021: Writ Petition filed under Article 226 of
Constitution of India, for issuance of a Writ of Mandamus directing the
respondents to disburse the payments relating to Social Welfare Scheme
Amount, ERBS Pension Amount, 7 days salary and EL Surrender Arrears
and all other retirement benefits along with the entitled difference of
dearness allowances also, with interest at 12% per annum with effect from
01.08.2016.
For Petitioners : Mr.N.Desinghu
(In both W.Ps)
For Respondents : Mr.D.Raghu
(In both W.Ps) Standing Counsel
COMMON ORDER
These Writ Petitions have been filed for a Writ of Mandamus, to direct
the respondents to disburse the payments at the rate of 12% per annum for
the belated payment of Provident Fund, Gratuity, Earned Leave Salary and
Commutation and other benefits like, Social Welfare Scheme Amount, ERBS
Pension Amount, 7 days salary and EL Surrender Arrears and all other
retirement benefits along with the entitled difference of dearness allowances
____________
https://www.mhc.tn.gov.in/judis/
Page No. 2 of 6
W.P.Nos.23587 & 23589 of 2021
with effect from 01.08.2016 and 01.02.2020 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.
3. It is noticed that though the above observation 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
____________
https://www.mhc.tn.gov.in/judis/
Page No. 3 of 6
W.P.Nos.23587 & 23589 of 2021
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, these Writ Petitions are disposed by directing
the respondents to consider the representations dated 20.10.2017,
08.06.2019, 10.05.2020, 02.06.2021 and 01.10.2021 of the petitioners and to
pay interest at the rate of 4% per annum for the belated payment of Provident
Fund, Gratuity, Earned Leave Salary, Commutation and other legal dues to
the petitioners in six equated monthly instalments commencing from 1st
January, 2021. No costs.
02.11.2021
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
____________
https://www.mhc.tn.gov.in/judis/
Page No. 4 of 6
W.P.Nos.23587 & 23589 of 2021
To
1.The Managing Director,
Tamil Nadu State Transport
Corporation (Salem) Limited,
Ramakrishna Salai, Salem – 636 007.
2.The Administrator,
Tamil Nadu State Transport Employees
Post Retirement Welfare Fund Scheme,
Thiruvalluvar House, Pallavan Salai,
Chennai – 600 002.
3.The General Manager,
Tamil Nadu State Transport
Corporation (Salem) Limited,
Barathipuram, Dharmapuri Region,
Dharmapuri – 636 705.
____________
https://www.mhc.tn.gov.in/judis/
Page No. 5 of 6
W.P.Nos.23587 & 23589 of 2021
C.SARAVANAN, J.
arb
W.P.Nos.23587 & 23589 of 2021
02.11.2021
____________
https://www.mhc.tn.gov.in/judis/
