Madras High Court
B. Muthiah vs The Management Of Tamil Nadu on 1 April, 2022
W.P.(MD).No.5915 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. 5915 of 2022
B. Muthiah ... Petitioner
vs.
The Management of Tamil Nadu
State Transport Corporation
(Tirunelveli)Ltd.,
Thirunelveli Region,
Rep. By its General Manager,
Thirunelveli. ... Respondent
PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India for issuance of a Writ of Mandamus to direct the respondents to pay
the petitioner interest at the rate of 18% per annum, for the period of
delay from 01.01.19 to 21.09.19 in paying the amounts paid towards the
terminal benefits of the petitioner namely EPF Employee's Contribution
and within a time frame as may be fixed by this Court.
For Petitioner : Mr.S. Arunachalam
For Respondent : Mr. R. Rajamohan
1/6
https://www.mhc.tn.gov.in/judis
W.P.(MD).No.5915 of 2022
ORDER
Seeking a direction to the respondents to pay the petitioner interest
at the rate of 18% per annum, for the period of delay from 01.01.19 to
21.09.19 in paying the amounts paid towards the terminal benefits of the
petitioner namely EPF Employee's Contribution, 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
31.12.2018, on attaining the age of superannuation, his retirement
benefits were settled belatedly. Hence, the petitioner has made a
representation to the respondents on 22.11.2021, 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
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W.P.(MD).No.5915 of 2022
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 instalments.
6.Admittedly, the petitioner was retired from service on
31.12.2018, 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
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
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W.P.(MD).No.5915 of 2022
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
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
Director or the General Manager (Chief Finance Officer) shall appear
before this Court.
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W.P.(MD).No.5915 of 2022
10.The Writ Petition is disposed of with the above direction. No
costs.
11.Post this matter on 04.08.2022 'for reporting compliance'.
01.04.2022
Internet:Yes
RR
To
The General Manager,
Management of Tamil Nadu
State Transport Corporation
(Tirunelveli)Ltd.,
Thirunelveli Region,
Thirunelveli.
https://www.mhc.tn.gov.in/judis
W.P.(MD).No.5915 of 2022
KRISHNAN RAMASAMY,J.
RR
ORDER MADE IN
W.P.(MD).No.5915 of 2022
01.04.2022
https://www.mhc.tn.gov.in/judis
