Madras High Court
B.Anandan vs The Management Of on 1 October, 2021
W.P.No.21246 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 01.10.2021
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.21246 of 2021
(Through Video Conferencing)
B.Anandan ... Petitioner
Vs.
The Management of
Tamil Nadu State Transport Corporation (Kovai) Ltd,
Rep by its Managing Director,
Coimbatore. ... Respondent
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 the encashment amount payable for 75 days of earned leaves,
surrendered by him in the years before his retirement, as admitted by the
respondent, together with 18% interest, along with the interest amount
calculated for the period of delay from 01.05.2019 to 24.01.2021 in paying
the amounts paid towards his terminal benefits namely EPF Employee's
Contribution, Gratuity and Encashment of Earned/Sick Leaves at the rate of
18% per annum.
For Petitioner : Ms.Nandhini for Mr.V.Ajay Khose
For Respondent : Mr.A.Sundaravadhanam
Standing Counsel
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Page No. 1 of 5
W.P.No.21246 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
respondents to pay the petitioner the encashment amount payable for 75 days
of earned leaves, surrendered by him in the years before his retirement, as
admitted by the respondent, together with 18% interest, along with the
interest amount calculated for the period of delay from 01.05.2019 to
24.01.2021 in paying the amounts paid towards his terminal benefits namely
EPF Employee's Contribution, Gratuity and Encashment of Earned/Sick
Leaves at the rate of 18% 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.21246 of 2021
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
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 17.08.2021 of the petitioner
and to pay interest at the rate of 4% per annum for the payment of terminal
benefits namely EPF Employee's Contribution, Gratuity and Encashment of
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https://www.mhc.tn.gov.in/judis/
W.P.No.21246 of 2021
Earned Leave/Sick Leave and other legal dues to the petitioners in six
equated monthly instalments commencing from 1st December, 2021. No
costs.
01.10.2021
(1/3)
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
jas
To
The Management of
Tamil Nadu State Transport Corporation (Kovai) Ltd,
Rep by its Managing Director,
Coimbatore.
_____________
https://www.mhc.tn.gov.in/judis/
W.P.No.21246 of 2021
C.SARAVANAN,J.
jas
W.P.No.21246 of 2021
01.10.2021
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https://www.mhc.tn.gov.in/judis/
