Madras High Court
C.Nagarajan vs The Management Of on 27 October, 2021
W.P.No.23038 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.23038 of 2021
(Through Video Conferencing)
C.Nagarajan ... Petitioner
Vs.
1.The Management of
Tamil Nadu State Transport Corporation (Kovai) Limited,
Erode Region,
Represented by its Managing Director,
Erode.
2.The Administrator,
Tamil Nadu State Transport Employees'
Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai, Chennai – 2. ... Respondents
Prayer: Writ Petition filed under Article 226 of Constitution of India, for
issuance of a Writ of Mandamus directing the respondents 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 the terminal
and pension benefits of the petitioner namely EPF Employee's Contribution,
Gratuity, Encashment of Earned/Sick Leaves and Commutated Value of
Pension.
For Petitioner : Ms.H.Nandhini
for Mr.V.Ajoy Khose
For Respondents : Mr.A.Sundaravadhanam
Standing Counsel
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Page No. 1 of 4
W.P.No.23038 of 2021
ORDER
This Writ Petition has been filed for a Writ of Mandamus, to direct the
respondents to pay interest at the rate of 18% per annum for the belated
payment (from 01.02.2020 to 01.06.2021) 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 order dated
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W.P.No.23038 of 2021
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 30.06.2021 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
Index : Yes/No
Internet : Yes/No
Speaking/Non-speaking Order
arb
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W.P.No.23038 of 2021
C.SARAVANAN,J.
arb
To
1.The Managing Director,
Management of Tamil Nadu State
Transport Corporation (Kovai) Limited,
Erode Region, Erode.
2.The Administrator,
Tamil Nadu State Transport Employees'
Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai, Chennai – 2.
W.P.No.23038 of 2021
27.10.2021
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