Madras High Court
N.Mahendran vs The Managing Director on 7 October, 2021
W.P.No.21636 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.10.2021
CORAM
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.No.21636 of 2021
(Through Video Conferencing)
N.Mahendran ... Petitioner
Vs
The Managing Director,
The Management of,
Tamil Nadu State Transport Corporation (Kovai) Ltd.,
Kovai Region,
Coimbatore. ... Respondent
Prayer : Petition filed under Article 226 of the Constitution of India to issue a
Writ of Mandamus, to direct the respondent to pay the petitioner interest at
the rate of 18% per annum, for the period of delay from 01.06.19 to 24.01.21,
in paying the amounts paid towards the terminal benefits of the petitioner
namely EPF Employee's Contribution, Gratuity and Encashment of
Earned/Sick Leaves within a time frame as may be fixed by this Court and
without affecting his right to claim balance amounts towards those benefits.
For Petitioner : Ms.Nandhini for Mr.V.Ajoy Khose
For Respondent : Mr.A.Sundaravadhanam
Standing Counsel
https://www.mhc.tn.gov.in/judis/
1
W.P.No.21636 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
respondent to pay the petitioner interest at the rate of 18% per annum, for the
period of delay from 01.06.19 to 24.01.21, in paying the amounts paid
towards the terminal benefits of the petitioner namely EPF Employee's
Contribution, Gratuity and Encashment of Earned/Sick Leaves 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
https://www.mhc.tn.gov.in/judis/
W.P.No.21636 of 2021
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
respondents to consider the representation dated 30.06.2021 of the petitioner
and to pay the terminal benefits of the petitioner namely EPF Employees
contribution, Gratuity and Encashment of Earned/ Sick Leaves and other
legal dues to the petitioner in six equated monthly instalments commencing
from 1st December, 2021. No costs.
07.10.2021
(3/3)
Index: Yes/ No
Internet : Yes/No
Speaking/Non-speaking Order
jas/rgm
C.SARAVANAN,J.
Jas/rgm
https://www.mhc.tn.gov.in/judis/
W.P.No.21636 of 2021
To
The Managing Director,
The Management of,
Tamil Nadu State Transport Corporation (Kovai) Ltd.,
Kovai Region,
Coimbatore.
W.P.No.21636 of 2021
07.10.2021
https://www.mhc.tn.gov.in/judis/
