Madras High Court
K.Chandran vs The Managing Director on 22 October, 2021
W.P.No.22504 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 22.10.2021
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.22504 of 2021
(Through Video Conferencing)
K.Chandran ... Petitioner
Vs.
1.The Managing Director,
Metropolitan Transport Corporation (Chennai) Limited,
Pallavan House, Chennai – 600 002.
2.The Administrator,
Tamil Nadu State Transport Corporations
Employees Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai – 600 002. ... Respondents
Prayer: Writ Petition filed under Article 226 of Constitution of India, for
issuance of a Writ of Mandamus directing the respondents to pay 10%
interest to the petitioner for the belated payment of terminal benefits such as
Gratuity, Leave Salary and Commutation Amount.
For Petitioner : Mr.S.T.Varadarajulu
For Respondents : Mr.K.Moorthy
Standing Counsel
____________
Page No. 1 of 4
W.P.No.22504 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
respondents to pay interest at the rate of 10% per annum for the belated
payment of the petitioner's Gratuity, Leave Salary and Commutation Amount
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
____________
W.P.No.22504 of 2021
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
respondents to consider the representation dated 15.09.2021 of the petitioner
and to pay interest at the rate of 4% per annum for the belated payment of
Gratuity, Leave Salary and Commutation Amount and other legal dues to the
petitioner in six equated monthly instalments commencing from 1st
December, 2021. No costs.
22.10.2021
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
____________
W.P.No.22504 of 2021
C.SARAVANAN,J.
arb
To
1.The Managing Director,
Metropolitan Transport Corporation (Chennai) Limited,
Pallavan House, Chennai – 600 002.
2.The Administrator,
Tamil Nadu State Transport Corporations
Employees Pension Fund Trust,
Thiruvalluvar Illam, Pallavan Salai,
Chennai – 600 002.
W.P.No.22504 of 2021
22.10.2021
____________
