P.Karuppanasamy vs Tamil Nadu State Transport
2021 Latest Caselaw 21412 Mad

                                                                W.P.No.11464 of 2021

          IN THE HIGH COURT OF JUDICATURE AT MADRAS

                              DATED : 26.10.2021

                                    CORAM

           THE HONOURABLE MR.JUSTICE C.SARAVANAN

                              W.P.No.11464 of 2021

                        (Through Video Conferencing)

P.Karuppanasamy                                              ... Petitioner

                                     Vs

Tamil Nadu State Transport
      Corporation (Coimbatore)Limited,
Rep by its Managing Director,
Mettupalayam Road,
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 interest to the petitioner
for the belated payment of P.F., Gratuity, and encashment of earned leave/sick
leave, at the rate of 12% per annum.


             For Petitioner      : Mr.V.Ajoy Khose

            For Respondent       : Mr.A.Sundaravadhanam
                                   Standing Counsel




1
                                                                W.P.No.11464 of 2021

                                  ORDER

This Writ Petition has been filed for a Writ of Mandamus, to direct the

respondent to pay interest to the petitioner for the belated payment of P.F.,

Gratuity, and encashment of earned leave/sick leave, at the rate of 12% per

annum 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

outbreak of Covid-19 with the following directions:-

W.P.No.11464 of 2021

“(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 09.03.2021 of the petitioner

and to pay the interest of the petitioner for the belated payment of P.F.,

Gratuity and Encashment of Earned leave/ Sick leave and other legal dues to

the petitioner in six equated monthly instalments commencing from 1st

December, 2021. No costs.

26.10.2021 (1/4) Index: Yes/ No Internet : Yes/No Speaking/Non-speaking Order jas

W.P.No.11464 of 2021

C.SARAVANAN,J.

Jas

To

The Managing Director, Tamil Nadu State Transport Corporation (Coimbatore)Limited, Mettupalayam Road, Coimbatore.

W.P.No.11464 of 2021

26.10.2021