(Through Video Conferencing) vs The Managing Director
2021 Latest Caselaw 21436 Mad

                                                                                    W.P.No.11388 of 2021

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 26.10.2021

                                                        CORAM

                                  THE HONOURABLE MR.JUSTICE C.SARAVANAN

                                                 W.P.No.11388 of 2021

                                            (Through Video Conferencing)
                    K.Sadhasivam                                                     ... Petitioner

                                                         Vs

                    1.The Managing Director,
                      Tamil Nadu State Transport Corporation (VPM) Ltd,
                      No.3/137, Salamedu,
                      Vazhuthareddy Post,
                      Villupuram – 605 602.

                    2.The Administrator,
                      Tamil Nadu State Transport Corporation
                          Employees Pension Fund Trust,
                      Thiruvalluvar House, Pallavan Salai,
                      Chennai – 600 002.                                          ... Respondents

                    Prayer : Petition filed under Article 226 of the Constitution of India to issue a
                    Writ of Mandamus, to direct the respondents to pay the petitioner interest at
                    6% for the belated payment of the gratuity, leave salary, commutation of
                    pension and other benefits to the petitioner for the period from 30.04.2019
                    the date of retirement to 23.01.2021 the date of settlement by following the
                    order passed in W.A.(MD).Nos.383 to 457 of 2015 dated 12.06.2015 and in
                    C.M.P.No.6352 of 2018 in W.A.No.665 of 2018 dated 13.07.2018.


https://www.mhc.tn.gov.in/judis
                    1
                                                                                     W.P.No.11388 of 2021




                                    For Petitioner    : Mr.V.Ajoy Khose

                                    For Respondent    : Mr.A.Sundaravadhanam
                                                        Standing Counsel

                                                        ORDER

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

respondents to pay the petitioner interest at the rate of 6% per annum, for the

belated payment of the gratuity, leave salary, commutation of pension and

other benefits to the petitioner for the period from 30.04.2019 the date of

retirement to 23.01.2021 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.

https://www.mhc.tn.gov.in/judis

W.P.No.11388 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

respondents to consider the representation dated 19.04.2021 of the petitioner

and to pay the benefits of the petitioner namely Gratuity, Leave Salary,

Commutation of Pension and other legal dues to the petitioner in six equated

monthly instalments commencing from 1st January, 2022. As far as the

encashment of earner leave is concerned, the respondent shall pass https://www.mhc.tn.gov.in/judis

W.P.No.11388 of 2021

appropriate orders within a period of three months from the date of receipt of

a copy of this order. No costs.

26.10.2021

Index: Yes/ No Internet : Yes/No Speaking/Non-speaking Order jas

To

1.The Managing Director, Tamil Nadu State Transport Corporation (VPM) Ltd, No.3/137, Salamedu, Vazhuthareddy Post, Villupuram – 605 602.

2.The Administrator, Tamil Nadu State Transport Corporation Employees Pension Fund Trust, Thiruvalluvar House, Pallavan Salai, Chennai – 600 002.

https://www.mhc.tn.gov.in/judis

W.P.No.11388 of 2021

C.SARAVANAN,J.

Jas

W.P.No.11388 of 2021

26.10.2021

https://www.mhc.tn.gov.in/judis