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The Managing Director vs K. Palaniammal
2021 Latest Caselaw 20014 Mad

Citation : 2021 Latest Caselaw 20014 Mad
Judgement Date : 30 September, 2021

Madras High Court
The Managing Director vs K. Palaniammal on 30 September, 2021
                                                                                    W.A. No. 2512 of 2021

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      DATED: 30.09.2021

                                                             CORAM

                                  THE HONOURABLE MR. JUSTICE S. VAIDYANATHAN
                                                    AND
                                   THE HONOURABLE MR. JUSTICE A.A. NAKKIRAN

                                                    W.A. No. 2512 of 2021
                                                              &
                                                   C.M.P. No. 16376 of 2021
                     The Managing Director,
                     Tamil Nadu State Transport Corporation
                      Salem Division,
                     12, Ramakrishna Salai,
                     Salem – 7.                                                  ..Appellant

                                                              Vs.
                     1.           K. Palaniammal
                     2.           The Administrator,
                                  Tamil Nadu State Transport Corporation
                                   Employees Pension Fund Trust,
                                  Chennai – 2.                                   ..Respondents
                     Prayer:           Writ Appeal as against the order dated 20.02.2020 passed in
                     W.P. No. 17541 of 2012.
                                             For Appellant     ::    Ms.Rajathi for Mr.D. Raghu
                                                             *****

                                                       JUDGMENT

S. VAIDYANATHAN,J.

AND A.A. NAKKIRAN,J.

The present writ appeal has been preferred against the order of the

learned Single Judge dated 20.02.2020 passed in W.P. No. 17541 of 2012. https://www.mhc.tn.gov.in/judis

1\8 W.A. No. 2512 of 2021

2. One Kariamalai, who joined the service of the Transport

Corporation on 06.05.1981 as a driver was issued with a charge memo on

29.10.2001 for having absented himself from duty unauthorisedly.

Thereafter, on the basis of the enquiry conducted by the appellant

Corporation, he was dismissed from service. Against the order of dismissal,

the said employee had raised an industrial dispute before the Labour Court,

Salem in I.D. No. 160 of 2003 and by order dated 17.01.2005, the Labour

Court while agreeing with the punishment imposed, came to the conclusion

that the dismissal from service was disproportionate to the charges and

converted the dismissal into one of discharge and directed the appellant

Corporation to extend all monetary benefits due to the employee within a

period of three months. Thereafter, the said employee died on 11.10.2005.

Thereafter, the wife of the employee, the 1st respondent herein made a

representation to the appellant for sanction of family pension, which was

rejected. As against the same, she preferred W.P. No. 11043 of 2011 for

compliance of the award passed by the Labour Court and the said writ

petition was disposed by order dated 20.06.2011 observing that inasmuch as

the appellant Corporation had not challenged the award of the Labour

Court, the same had become final and directed the appellant to implement https://www.mhc.tn.gov.in/judis

2\8 W.A. No. 2512 of 2021

the award of the Labour Court within eight weeks. Pursuant to the said

order, the appellant Corporation, relying upon a clarification issued by the

Government vide Letter No. 19209/D/2004-11 dated 16.11.2006, passed an

order dated 01.09.2011 stating that as per Rule 21 of the Tamil Nadu State

Transport Corporation Employees’ Pension Fund Rules, removal or

discharge from service would enable a person to get some monetary

benefits, but not pension. Aggrieved over the same, the employee’s wife

again knocked the doors of this Court by filing W.P. No. 17541 of 2012

seeking a direction to the appellant Corporation to give compassionate

appointment or grant family pension. The said writ petition was partly

allowed by order dated 20.02.2020 directing the appellant to provide family

pension to the writ petitioner within a period of twelve weeks. Challenging

the same, the present writ appeal has been filed by the Transport

Corporation.

3. According to the appellant, the employee, S. Kariamalai, was a

regular absentee, who had suffered several punishments during his tenure in

service and finally, for absenting himself from duty, after conducting

enquiry, he was dismissed from service. According to the appellant, the

employee had 58 bad past records during his service. Besides, according to https://www.mhc.tn.gov.in/judis

3\8 W.A. No. 2512 of 2021

the appellant, the Labour Court had also upheld the punishment of dismissal

imposed by the Corporation, but the same was modified only to enable the

employee/his legal heirs to get some monetary benefits and the 1 st

respondent herein/wife of the employee, would not be entitled to family

pension as per Rule 21 of Tamil Nadu State Transport Corporation

Employees’ Pension Fund Rules, which is extracted hereunder:

“Rule 21 – Guarantee of Pensionary Benefits

a) The payment of benefits will be guaranteed by the Pension Trust. Provided further, a member removed or dismissed from service shall have no claim over pension / pensionary benefits.

b) The Trustees shall, for the purpose of providing the pension for the members pursuant to the Rules, accumulate the contributions in respect of the members from all the STUs and pay the eligible pensinioary benefits to the individual members directly through the respective Corporation.

c) The beneficiary shall furnish a live certificate every year as directed by the Board of Trustees.”

4. It is submitted by the Appellant that the learned Single Judge

erred in granting family pension to the writ petitioner, when the employee

had been dismissed from service and the said punishment had also been

upheld by the Labour Court. Therefore, the appellant seeks to set aside the

order under challenge.

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

4\8 W.A. No. 2512 of 2021

5. Heard both parties.

6. It is not in dispute that the husband of the 1st respondent

S. Kariamalai, was dismissed from service, which resulted in I.D.No. 160 of

2003 and by award dated 17.01.2005, the Labour Court had modified the

punishment of dismissal from service into one of discharge and directed the

appellant to extend all the terminal benefits to the workman. As the

workman passed away in the interregnum and the award of the Labour

Court was not complied with, the 1st respondent herein/ wife of the deceased

employee initially approached this Court for implementing the award of the

Labour Court. Eventhough the terminal benefits were received by the wife

of the deceased employee/1st respondent herein, her claim for family

pension was rejected by the appellant citing Rule 21 of the aforesaid Rules.

7. A reading of the Rule would make it very clear that there can

be cessation of employer– employee relationship on more than two grounds

and it can be due to non-employment, compulsory retirement, removal from

service, discharge from service and dismissal from service and as per Rule

21 of the Tamil Nadu State Transport Corporation Employees' Pension Fund

Rules, an employee who has been discharged of his duties on the ground of https://www.mhc.tn.gov.in/judis

5\8 W.A. No. 2512 of 2021

removal or dismissal from service alone would not be entitled to claim

pension or pensionary benefits and the word “discharge” is absent in the

said Rule. The dismissal can only be by way of punishment, whereas

discharge may or may not be by way of punishment. Dismissal is a straight

expulsion and discharge may be a golden handshake cessation.

8. The intention of the Labour Court, as could be seen from the

award, at paragraph No.11, is extracted hereunder:

“11/ Kothf. kDjhuUf;F tH';fg;gl;l gzpePff ;

jz;lid epahakhdJ vd;W Kot[ bra;J. dismissal jz;lidia discharge Mf khw;wp. discharge K:yk; fpilf;ff;Toa epjpg;gyd;fis fzf;fpl;L. ,j;jPht ; k;

fpilf;fg;bgw;W K:d;W khj';fSf;Fs; tH';fntz;Lk; vd;W vjph;kDjhuUf;F cj;jputpl;L jPh;tk;

gpwg;gpf;fg;gLfpwJ/ ,ju gupfhu';fis bghWj;J kD js;Sgo bra;ag;gLfpwJ/ bryt[jb ; jhif ,y;iy/@

9. The above extract would make it very clear that the employee

must be extended the pensionary benefits. Unfortunately, he is no more.

The order passed by the learned Single Judge cannot be found fault with as

he had rightly interfered with the impugned proceedings dated 01.09.2011

and directed the appellant Corporation to extend family pension and other

monetary benefits to the writ petitioner/1st respondent herein. However, the https://www.mhc.tn.gov.in/judis

6\8 W.A. No. 2512 of 2021

request of the writ petitioner for compassionate appointment was denied.

We find no reason to interfere with the order under challenge. The writ

appeal is accordingly dismissed. No costs. Connected C.M.P. is closed.

10. The appellant Corporation is given four months time to extend

pensionary benefits due to the employee from the date of

retirement/discharge till his death and family pension benefits, on or from

the date of employee's demise, to the 1st respondent/wife of the deceased

employee.

                                                                                (S.V.N.J.) (A.A.N.J.)
                     nv                                                               30.09.2021

                     To
                     The Administrator,

Tamil Nadu State Transport Corporation, Employees Pension Fund Trust, Chennai -2.

S. VAIDYANATHAN,J.

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

7\8 W.A. No. 2512 of 2021

AND

A.A. NAKKIRAN,J.

nv

W.A. No. 2512 of 2021

30.09.2021

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

8\8

 
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