Madras High Court
A.K.Shanmugam vs The Management Of on 27 October, 2021
W.P.No.23016 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 27.10.2021
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.23016 of 2021
(Through Video Conferencing)
A.K.Shanmugam ... 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
01.05.2019 to 24.01.2021, in paying the amounts paid towards the terminal
benefits of the petitioner namely EPF Employee's Contribution, Gratuity and
Encashment of Earned/Sick Leaves within a time frame as may be fixed by
this Hon'ble Court and without affecting his right to claim balance amounts
towards those benefits.
For Petitioner : Ms.H.Nandhini
for Mr.V.Ajoy Khose
For Respondent : Mr.A.Sundaravadhanam
Standing Counsel
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Page No. 1 of 4
W.P.No.23016 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 (from 01.05.2019 to 24.01.2021) of the petitioner's EPF Employees
Contribution, Gratuity, Encashment of Earned/Sick Leaves and Commuted
Value of Pension 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.23016 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 30.08.2021 of the petitioner
and to pay interest at the rate of 4% per annum for the belated payment of
EPF Employees Contribution, Gratuity, Encashment of Earned/Sick Leaves
and other legal dues to the petitioner in six equated monthly instalments
commencing from 1st December, 2021. No costs.
27.10.2021
(6/7)
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
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https://www.mhc.tn.gov.in/judis
W.P.No.23016 of 2021
C.SARAVANAN,J.
arb
To
The Managing Director,
The Tamil Nadu State Transport Corporation (Kovai) Limited,
Erode Region, Erode.
W.P.No.23016 of 2021
27.10.2021
(6/7)
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https://www.mhc.tn.gov.in/judis
