Madras High Court
V.K.Shanmugasundaram vs The Tamil Nadu State Transport on 7 October, 2021
W.P.No.21732 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.10.2021
CORAM
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.No.21732 of 2021
(Through Video Conferencing)
V.K.Shanmugasundaram ... Petitioner
Vs
The Tamil Nadu State Transport
Corporation Ltd.,
Rep. by its Managing Director,
No.37, Mettupalayam Road,
Coimbatore-641 043. ... Respondent
Prayer : Petition filed under Article 226 of the Constitution of India to issue a
Writ of Mandamus, to direct the respondents to settle interest at the rate of
6% for the belated payment of terminal benefits to the petitioner in respect of
Gratuity, Leave Salary, Provident Fund from the date of the petitioner's
retirement to date of actual payment for the said benefits in the time schedule
to be directed by this Court.
For Petitioner : Mr.M.A.Sivakumaran
For Respondent : Mr.A.Sundaravadhanam
Standing Counsel
https://www.mhc.tn.gov.in/judis/
1
W.P.No.21732 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
Respondent to settle interest at the rate of 6% for the belated payment of
terminal benefits to the petitioner in respect of Gratuity, Leave Salary,
Provident Fund from the date of the petitioner's retirement to date of actual
payment for the said benefits 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
https://www.mhc.tn.gov.in/judis/
W.P.No.21732 of 2021
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
respondents to consider the representation dated 19.07.2021 of the petitioner
and to pay interest at the rate of 4% per annum for the belated payment of
terminal benefits to the petitioner in respect of Gratuity, Leave Salary,
Provident Fund and other legal dues to the petitioner in six equated monthly
instalments commencing from 1st December, 2021. No costs.
07.10.2021
Index: Yes/ No
Internet : Yes/No
Speaking/Non-speaking Order
jas/rgm
https://www.mhc.tn.gov.in/judis/
W.P.No.21732 of 2021
C.SARAVANAN, J.
jas/rgm
To
The Managing Director,
Tamil Nadu State Transport Corporation Ltd.,
No.37, Mettupalayam Road,
Coimbatore-641 043.
W.P.No.21732 of 2021
07.10.2021
https://www.mhc.tn.gov.in/judis/
