Madras High Court
The President vs The Joint Registrar Of ... on 23 September, 2021
W.A. No. 1871 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 23.09.2021
CORAM
THE HONOURABLE MR. JUSTICE S.VAIDYANATHAN
AND
THE HONOURABLE MR. JUSTICE A.A. NAKKIRAN
W.A. No. 1871 of 2021
&
C.M.P. No. 11898 of 2021
The President,
Thirupathur Co-operative Primary
Agricultural and Rural
Development Bank Ltd.,
Cutchery Street,
Thirupathur PO – 635 601. ..Appellant
Vs.
1. The Joint Registrar of Co-operative
Societies,
Vellore Region, Vellore,
Pin – 632 009.
2. The Deputy Registrar of Co-operative
Societies, Pudupettai,
Tirupathur – 635 601.
3. Mr.N.S. Anbalagan ..Respondents
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W.A. No. 1871 of 2021
Prayer: Writ Appeal as against the order dated 30.04.2021 passed in
W.P. No. 16060 of 2015.
For Appellant :: Mr.P. Anbarasan
For Respondents :: Mr.K. Tippu Sultan
Govt. Advocate for R1 & R2
Mr. R. Suryakumaran for R3
JUDGMENT
(Judgment of the Court was delivered by S. VAIDYANATHAN,J.)
This writ appeal has been preferred against the order 30.04.2021
passed in W.P. No. 16060 of 2015.
2. The grievance of the appellant Co-operative Bank is that the
learned Single Judge ought not to have awarded interest @ 12% per annum
for belated payment of retirement dues on the ground that another employee
had been granted at the same rate on the terminal benefits like Gratuity,
Earned Leave, etc. According to the learned counsel for the appellant, the
other employee, who was granted 12% interest per annum on terminal
benefits had retired in 2006 whereas the 3rd respondent in this case had
retired in 2011, therefore, directing the Society to pay interest @ 12% per
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W.A. No. 1871 of 2021
annum is not warranted. In support of his contention, the learned counsel for
the appellant has relied upon the judgment of the Honourable Apex Court in
S.K. Dua V. State of Haryana reported in 2008 (3) SCC 44, which was
followed by a Division Bench of this Court in State of Tamil Nadu V. M.
Deivasigamani reported in 2009 (3) MLJ 1 and submitted that the rate of
interest requires to be reduced and that all the employees of the Society
have been granted interest only @ 8.5% per annum on retiral benefits, in
case, there is a delay in settlement of the same.
3. On the other hand, learned counsel for the 3 rd respondent/writ
petitioner would submit that once an employee retires from service, the
terminal benefits have got to be settled at the earliest and at least, within a
period of 30 days from the date of retirement. In this case, there was delay
in payment of retirement benefits and as the request of the 3rd
respondent/writ petitioner was turned down, he had approached this Court
seeking interest on the belated payment, which has been rightly considered
by the learned Single Judge.
4. Heard both paties.
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W.A. No. 1871 of 2021
5. It is not in dispute that the 3rd respondent/writ petitioner
attained the age of superannuation on 28.02.2011 and his terminal benefits
have been settled. As there was a delay in settlement of terminal benefits, he
approached this Court for interest on belated payment at the rate that may be
fixed by this Court. However, taking note of the fact that another employee
has been paid 12% interest per annum, this Court granted 12% interest per
annum on the retiral benefits for the writ petitioner also. The rate of interest
that was prevalent during the year 2006 was definitely higher and it cannot
be equated for the future years. Of course, money value has come down and
even 12% interest per annum is not going to fetch the money value lost.
Section 7(3A) of The Payment of Gratuity Act, 1972 prescribes rate of
interest @ 10% per annum on belated payment of gratuity and in case of
recovery, rate of interest @15% per annum has been prescribed. Though
the order of the learned Single Judge in awarding rate of interest @ 12% per
annum cannot be held to be incorrect, taking note of the pandemic situation,
this Court reduces the rate of interest to 10% per annum and the interest for
the belated payment of gratuity, earned leave, etc shall be paid within a
period of 3 months from the date of receipt of a copy of this order.
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W.A. No. 1871 of 2021
6. Insofar as Provident Fund is concerned, it is open to the
employer to remit it to the Provident Fund Account in terms of the
provisions of EPF Act, 1952. The writ appeal is disposed of with the above
modification. No costs. Connected C.M.P. is closed.
(S.V.N.J.) (A.A.N.J.)
nv 23.09.2021
To
1. The Joint Registrar of Co-operative
Societies,
Vellore Region, Vellore,
Pin – 632 009.
2. The Deputy Registrar of Co-operative
Societies, Pudupettai,
Tirupathur – 635 601.
S. VAIDYANATHAN,J.
https://www.mhc.tn.gov.in/judis/
W.A. No. 1871 of 2021
AND
A.A. NAKKIRAN,J.
nv
W.A. No. 1871 of 2021
23.09.2021
https://www.mhc.tn.gov.in/judis/
