A. Rayappan vs The Managing Director
2022 Latest Caselaw 6837 Mad

Citation : 2022 Latest Caselaw 6837 Mad
Judgement Date : 1 April, 2022

Madras High Court

A. Rayappan vs The Managing Director on 1 April, 2022

W.P.(MD).No.5916 of 2022

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

DATED:01.04.2022

CORAM:

THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY

W.P.(MD).No. 5916 of 2022

A. Rayappan ... Petitioner

vs.

1. The Managing Director,
The Tamil Nadu State Transport
Corporation Tirunelveli Ltd.,
Tirunelveli.

2. The General Manager,
The Tamil Nadu State Transport
Corporation Tirunelveli Ltd.,
Ranithottam,
Nagercoil – 629 001.
Kanyakumari District.

3. The Administrator,
The Tamil Nadu State Transport
Employees' Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai, Chennai -600 002. ... Respondents

PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India for issuance of a Writ of Mandamus or any other appropriate writ
or direction in the nature of a writ, directing the Respondents to pay the
12% interest for the belated payment of the Petitioner retirement benefits

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https://www.mhc.tn.gov.in/judis
W.P.(MD).No.5916 of 2022

i.e., Provident Fund, Gratuity, Surrender Leave salary and all other
retirement benefits from the date retirement to the actual date of payment
of retirement benefits to the petitioner and pay the same to the petitioner
within the time frame as may be fixed by this Court.

For Petitioner : Mr.N.S. Ramakrishna Dass
For Respondents : Mr.R. RajamohanR1, R2
Mr.A. Swaminathan R3

ORDER

Seeking a direction to the respondents to pay the 12% interest for

the belated payment of the Petitioner retirement benefits i.e., Provident

Fund, Gratuity, Surrender Leave salary and all other retirement benefits

from the date retirement to the actual date of payment of retirement

benefits to the petitioner and pay the same to the petitioner, the petitioner

is before this Court with the present writ petition.

2.By consent of both sides, the writ petition itself is taken up for

final disposal at the stage of admission itself.

3.According to the petitioner, he was working as Special Grade

Conductor in the respondent corporation. Though he retired on

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5916 of 2022

31.07.2019, on attaining the age of superannuation, his retirement

benefits were settled belatedly. Hence, the petitioner has made a

representation to the respondents on 07.01.2022, for interest on the

belated payment of the terminal benefits. Since the said representation

has not been considered so far, the petitioner is before this Court.

4.In this regard, the learned counsel for the petitioner referred to

the Division Bench judgment of this Court made in W.A.(MD) Nos.1883

to 1892 of 2021 dated 04.10.2021. Referring to the said judgment, he

would submit that the petitioner is entitled to 6% interest.

5.The learned counsel for the respondents submitted that due to

financial crisis they may be permitted to pay the interest on the belated

payment in monthly installments.

6.Admittedly, the petitioner was retired from service on

31.07.2019, on attaining the age of superannuation. However, his

retirement benefits were settled belatedly.

7.The Division Bench of this Court in the case cited supra has held

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5916 of 2022

as follows:

“8.When the appellant is liable to pay the surrender leave salary on the retirement of their employees, the delay in making payment of the leave salary is solely because of the appellants' inaction. The first respondent writ petitioner cannot be penalized for the wrong done by the appellant. Hence, the award of 6% interest on the surrender leave salary by the learned single Judge is perfectly correct. We do not find any ground to interfere with the orders passed by the learned single Judge. The writ appeals are devoid of merits and the same are dismissed. However, we make it clear that the reliefs granted by the learned single Judge in the writ petitions are confined only to the first respondent/writ petitioners, who have filed the writ petitions. No costs.

Consequently, connected miscellaneous Petitions are closed.”

8. As held by the Hon'ble Division Bench of this Court, when there

is a delay in payment of retirement benefits, the employee is entitled for

payment along with interest.

9.In view of the above, this Court is of the view that the petitioner

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5916 of 2022

is entitled for the interest at the rate of 6% per annum. Therefore, this

Court directs the respondents to pay interest at the rate of 6% per annum

for the belated retirement benefits including Provident Fund, Gratuity,

commuted value of pension and terminal leave salary, from the date of

his retirement till the date on which the said terminal benefits were

settled to him, on or before 31.07.2022, failing which, the Managing