Madras High Court
T.P.Sigamani vs The Management Of on 22 October, 2021
W.P.No.22474 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.22474 of 2021
(Through Video Conferencing)
T.P.Sigamani ... Petitioner
Vs.
The Management of
Tamil Nadu State Transport
Corporation (Kovai) Limited,
Erode Region,
Represented by its Managing Director,
Erode. ... Respondent
Prayer: Writ Petition filed under Article 226 of Constitution of India, for
issuance of a Writ of Mandamus directing the respondent to pay the
petitioner interest at the rate of 18% per annum for the period of delay from
01.02.2020 to 01.06.2021, in paying the amounts paid towards terminal
benefits of the petitioner namely EPF Employee's Contribution, Gratuity and
Encashment of Earned/Sick Leaves within a time frame.
For Petitioner : Mr.V.Ajoy Khose
For Respondent : Mr.A.Sundaravadhanam
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Page No. 1 of 4
W.P.No.22474 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
respondent to pay interest at the rate of 18% per annum for the belated
payment of the petitioner's 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
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W.P.No.22474 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
respondent to consider the representation dated 30.06.2021 of the petitioner
and to pay interest at the rate of 4% per annum for the belated payment of
EPF Employee's 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.
22.10.2021
(3/6)
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
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W.P.No.22474 of 2021
C.SARAVANAN,J.
arb
To
The Managing Director,
Management of
Tamil Nadu State Transport
Corporation (Kovai) Limited,
Erode Region, Erode.
W.P.No.22474 of 2021
22.10.2021
(3/6)
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