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P.Ramanathan vs The Managing Director
2021 Latest Caselaw 22174 Mad

Citation : 2021 Latest Caselaw 22174 Mad
Judgement Date : 11 November, 2021

Madras High Court
P.Ramanathan vs The Managing Director on 11 November, 2021
                                                                                      W.P(MD)No.20263 of 2021


                            BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                      DATED : 11.11.2021

                                                           CORAM:

                                    THE HONOURABLE MR.JUSTICE B.PUGALENDHI

                                                  W.P(MD)No.20263 of 2021

                     P.Ramanathan                                           ... Petitioner

                                                             versus

                     1. The Managing Director,
                        Tamilnadu State Transport Corporation
                            (Kumbakonam) Ltd.,
                        27, New Railway Station Road,
                        Kumbakonam – 612 001.

                     2. The Financial Advisor,
                        Tamilnadu State Transport Corporation
                          (Kumbakonam) Ltd.,
                        27, New Railway Station Road,
                        Kumbakonam – 612 001.

                     3. The Administrator,
                        TNSTC Employees Pension Trust,
                        SETC (TN) Ltd., No.2, Pallavan Salai,
                        Chennai – 600 002.                                  ... Respondents

                                  Writ Petition filed under Article 226 of the Constitution of India,
                     seeking for the issuance of Writ of Mandamus, to direct the respondents to
                     settle the petitioner's ERPS (Employees Retirement Pension Scheme)
                     amount for the period from 01.09.1992 to till the date on 31.05.2016 and


                     1/8


https://www.mhc.tn.gov.in/judis
                                                                                       W.P(MD)No.20263 of 2021


                     surrender leave salary for 167 days in respect of the years 2010-2011 to
                     2015-2016 together with interest at the rate of 6% per annum payable as per
                     court direction, in one instalment to the petitioner according to the last
                     drawn salary in the month of May 2016 to the petitioner as per the
                     representation dated 07.10.2021 within a stipulated time.


                                        For Petitioner     : Mr.K.Gokul
                                        For Respondents : Mr.D.Sivaraman

                                                             ORDER

By consent of both parties, this writ petition is taken up for final

disposal at the stage of admission itself.

2. Since the petitioner, who is the retired employee of the Transport

Corporation, claims to have not been paid with the surrender leave salary

for 167 days in respect of the years 2010-2011 to 2015-2016 and the

retirement benefits ie., Employees Retirement Pension Scheme amount with

interest, the present writ petition has been filed seeking for direction in that

regard.

3. The petitioner would submit that he has already made a

representation dated 07.10.2021 in this regard, which is said to be pending.

https://www.mhc.tn.gov.in/judis W.P(MD)No.20263 of 2021

If the said representation is directed to be disposed of within stipulated time,

the ends of justice could be secured.

4. Whenever a representation is made to a statutory authority to

redress the claim of the employee, there is a duty cast upon the authorities to

consider the same on its own merits and pass appropriate orders in one way

or other, instead of keeping the same pending indefinitely. Such an inaction

would amount to dereliction of duties and thereby this Court would be

justified in invoking its extraordinary powers under Article 226 of

Constitution of India and thereby direct such authority to consider the

representation within the stipulated time.

5. An identical issue with regard to the surrender leave salary came

up for consideration before the Division Bench of this Court in W.A(MD)

No.210 of 2019 and the Hon'ble Division Bench by judgment dated

04.09.2019 had upheld the view of the learned Single Judge against which

the writ appeal came to be filed and also rejected the Corporation plea that

the employee had not claimed the encashment of the surrender leave within

the stipulated time. The relevant portion of the said order reads as follows:-

https://www.mhc.tn.gov.in/judis W.P(MD)No.20263 of 2021

“2. This appeal is filed by the Tamil Nadu State Transport Corporation, Kumbakonam Division. The respondent filed W.P(MD).No.2449 of 2018 praying for a Writ of Certiorarified Mandamus to quash the order dated 21.12.2017 and direct the appellants to settle the petitioner's surrender leave salary. The appellant Corporation resisted the claim by contending that even though as per the settlement entered into under Section 12(3) of the Industrial Dispute Act, the employee is entitled for surrendering and encashing 15 days in one year or 30 days in two years, the same has not been done by the writ petitioner during his service during 2011-2014 and after superannuation only in the year 2016, he has made a claim of surrender of earn leave, based on the circular issued by the appellant Corporation, dated 09.01.2017. Further, it is submitted that the circular is not meant for enabling the retired employees to renew their claim of surrendering their earned leave of 15 days in a year during the service i.e., between 2011-2014 and it is applicable only for existing employees. Therefore, it is submitted that the respondent/writ petitioner cannot lay his claim based upon the circular, dated 09.01.2017.

                                        3.The       learned    counsel     appearing      for      the
                                  respondent/writ     petitioner    submitted    that   though     the

petitioner superannuated on 31.05.2016, from the year 2011

https://www.mhc.tn.gov.in/judis W.P(MD)No.20263 of 2021

onwards, the said practice of surrendering 15 days or 50% of the earn leave per year was done away by the appellants Corporation on account of financial crises. Further, the action based on the settlement entered into under Section 12(3) of the Act was not available to the respondent/writ petitioner, because the appellants Transport Corporation is citing financial crisis. The learned Single Judge took into consideration the facts placed before him and also noted the circular dated 09.01.2017 and taking note of the fact that there is record to show that the appellants transport corporation pleaded financial crises for non-settling the surrender leave salary, allowed the writ petition.

4.While doing so, the Writ Court referred to an earlier order in the case of A.Sundararajan Vs., Tamil Nadu State of Transport Corporation (Kumbakonam Limited) [W.P(MD).No.24245 of 2016 etc batch], wherein similar relief sought for has been granted and the writ petitions were allowed and the appellants Transport Corporation was directed to implement the same. Thus in our considered view, the learned Single Judge has rightly gone into the factual position and took note of stand of the appellants corporation as to why earlier they did not permit surrender and allowed the writ petition. Therefore, we find that the appellants have not made out any ground to interfere with the order passed by the learned Single Judge.”

https://www.mhc.tn.gov.in/judis W.P(MD)No.20263 of 2021

6. In the light of the above, this Court is of the view that the petitioner

would be entitled to claim salary for the surrender leave.

7. For all the forgoing reasons, although the petitioner has made a

representation dated 07.10.2021, the petitioner is directed to make a fresh

representation, enclosing a copy of this order, seeking for settlement of his

surrender leave salary and on receipt of the such representation, the

respondents herein shall consider the same and disburse the eligible leave

salary through four equal monthly installments in the light of the aforesaid

Division Bench Judgment. The respondents shall ensure that the first

installment is disbursed at least within a period of four weeks from the date

of receipt of fresh representation along with a copy of this order.

8. So far as non payment of ERPS (Employees Retirement Pension

Scheme) amount is concerned, the petitioner is directed to submit a separate

representation to the respondents along with a copy of this order and the

same shall be considered by the respondents within a period of four weeks

from the date of receipt of such representation. It is needless to say that the

https://www.mhc.tn.gov.in/judis W.P(MD)No.20263 of 2021

petitioner is entitled to get interest for the belated payment of terminal and

pensionary benefits.

9. With the above directions, this Writ Petition stands disposed of.

No costs

11.11.2021

Index : Yes / No. Internet: Yes / No. ogy

Note: In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned.

To

1. The Managing Director, Tamilnadu State Transport Corporation (Kumbakonam) Ltd., 27, New Railway Station Road, Kumbakonam – 612 001.

2. The Financial Advisor, Tamilnadu State Transport Corporation (Kumbakonam) Ltd., 27, New Railway Station Road, Kumbakonam – 612 001.

https://www.mhc.tn.gov.in/judis W.P(MD)No.20263 of 2021

B.PUGALENDHI, J.

ogy

3. The Administrator, TNSTC Employees Pension Trust, SETC (TN) Ltd., No.2, Pallavan Salai, Chennai – 600 002.

W.P(MD)No.20263 of 2021

11.11.2021

https://www.mhc.tn.gov.in/judis

 
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