Madras High Court
S.Mathiazhagan vs The Managing Director on 25 October, 2021
W.P.No.22739 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 25.10.2021
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.22739 of 2021
(Through Video Conferencing)
S.Mathiazhagan ... Petitioner
Vs.
1.The Managing Director,
Tamil Nadu State Transport Corporation (VPM) Limited,
Kandampakkam Post, Villupuram – 605 401.
2.The General Manager,
Tamil Nadu State Transport Corporation (VPM) Limited,
Villupuram Region, Villupuram.
3.The Administrator,
Tamil Nadu Employees' Pension Fund Trust,
Pallavan Salai, Chennai. ... Respondents
Prayer: Writ Petition filed under Article 226 of Constitution of India, for
issuance of a Writ of Mandamus directing the first and second respondents to
pay the interest at the rate of 18% per annum for the belated payment of the
gratuity of Rs.7,43,238/- along with computation to a tune of Rs.6,71,923/-
and leave salary to a tune of Rs.4,89,672/- along with the future interest
payable from the date of payment made till the date of realization.
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https://www.mhc.tn.gov.in/judis/
Page No. 1 of 4
W.P.No.22739 of 2021
For Petitioner : Mr.P.Paramasiva Doss
For Respondents : Mr.A.Saravana Kumar
Standing Counsel
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
first and second respondents to settle interest at the rate of 18% per annum
for the belated payment of the petitioner's gratuity of Rs.7,43,238/- along
with computation to a tune of Rs.6,71,923/- and leave salary to a tune of
Rs.4,89,672/- along with the future interest payable from the date of payment
made till the date of realization 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.
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https://www.mhc.tn.gov.in/judis/
W.P.No.22739 of 2021
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.
(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 11.10.2019 of the petitioner
and to pay interest at the rate of 4% per annum for the belated payment of
Gratuity, Computation and Leave Salary and other legal dues to the petitioner
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https://www.mhc.tn.gov.in/judis/
W.P.No.22739 of 2021
C.SARAVANAN,J.
arb
in six equated monthly instalments commencing from 1st December, 2021.
No costs.
25.10.2021
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
To
1.The Managing Director,
Tamil Nadu State Transport Corporation (VPM) Limited,
Kandampakkam Post, Villupuram – 605 401.
2.The General Manager,
Tamil Nadu State Transport Corporation (VPM) Limited,
Villupuram Region, Villupuram.
3.The Administrator,
Tamil Nadu Employees' Pension Fund Trust,
Pallavan Salai, Chennai.
W.P.No.22739 of 2021
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https://www.mhc.tn.gov.in/judis/
