Madras High Court
D.Hidhayadulla vs The Management Of on 4 October, 2021
W.P.Nos.21309, 21312 & 21316 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 04.10.2021
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.Nos.21309, 21312 & 21316 of 2021
(Through Video Conferencing)
1.D.Hidhayadulla ... Petitioner
in W.P.No.21309 of 2021
2.V.Kalyanakumar ... Petitioner
in W.P.No.21312 of 2021
3.R.Chandrasekaran ... Petitioner
in W.P.No.21316 of 2021
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 Corporation
Employees' Pension Fund Trust,
Thiruvalluvar Illam, Anna Salai,
Chennai – 600 002. ... Respondents in all W.Ps
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https://www.mhc.tn.gov.in/judis/
Page No. 1 of 6
W.P.Nos.21309, 21312 & 21316 of 2021
Prayer in W.P.No.21309 of 2021: 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 01.08.2018 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.
Prayer in W.P.Nos.21312 & 21316 of 2021: 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 01.06.2019 to 24.01.2021 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.
For Petitioners : Ms.H.Nandhini
(In all W.Ps) for Mr.V.Ajoy Khose
For Respondents : Mr.A.Sundaravadhanam
(In all W.Ps) Standing Counsel
COMMON ORDER
These Writ Petitions have 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 01.08.2018 to 20.09.2019 and 01.06.2019 to 24.01.2021 in
paying the amounts paid towards the terminal and pension benefits of the
petitioners namely EPF Employee's Contribution, Gratuity, Encashment of
Earned/Sick Leaves and Commutated Value of Pension in terms of the
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https://www.mhc.tn.gov.in/judis/
Page No. 2 of 6
W.P.Nos.21309, 21312 & 21316 of 2021
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
that are yet to be settled, in six equal monthly
instalments, commencing 01.04.2021.
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https://www.mhc.tn.gov.in/judis/
Page No. 3 of 6
W.P.Nos.21309, 21312 & 21316 of 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 representation dated 30.06.2021 of the
petitioners and to pay interest at the rate of 4% per annum for the belated
payment of EPF Employee's Contribution, Gratuity and other legal dues to
the petitioners in six equated monthly instalments commencing from 1st
November, 2021. No costs.
04.10.2021
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
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https://www.mhc.tn.gov.in/judis/
Page No. 4 of 6
W.P.Nos.21309, 21312 & 21316 of 2021
To
1.The Managing Director,
Management of
Tamil Nadu State Transport
Corporation (Kovai) Limited,
Erode Region, Erode.
2.The Administrator,
Tamil Nadu State Transport Corporation
Employees' Pension Fund Trust,
Thiruvalluvar Illam, Anna Salai,
Chennai – 600 002.
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https://www.mhc.tn.gov.in/judis/
Page No. 5 of 6
W.P.Nos.21309, 21312 & 21316 of 2021
C.SARAVANAN, J.
arb
W.P.Nos.21309, 21312 & 21316 of 2021
04.10.2021
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https://www.mhc.tn.gov.in/judis/
