Madras High Court
A.Madalaimuthu vs The Managing Director on 2 February, 2022
1
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:02.02.2022
CORAM
THE HON'BLE Mr. JUSTICE V.PARTHIBAN
W.P.Nos.6951, 6955, 6957 & 6959 of 2021
A.madalaimuthu ...Petitioner in W.P.No.6951/2021
Edwin Lazer Dcruze ...Petitioner in W.P.No.6955/2021
R.Narayanan ...Petitioner in W.P.No.6957/2021
A.Rangasamy ...Petitioner in W.P.No.6959/2021
Vs.
1.The Managing Director,
Tamil Nadu State Transport Corporation
(Salem) Limited,
Ramakrishna Salai,
Salem- 636 007.
2.The Adminstrator,
Tamil Nadu State Transport Corporation
Employees Post Retirement Welfare Fund Scheme,
Thiruvalluvar House, Pallavan Salai,
Chennai - 600 002.
...Respondents in all WPs
Common Prayer: Writ Petitions filed under article 226 of the
Constitution of India prayed to issue a writ of Mandamus directing
the respondents to disburse the payments relating to interest
amount of P.F, Gratuity, Leave Salary and Commutation amounts
other benefits like arrears of leave surrender V.R.S.Compensation,
Social Welfare Scheme, ERBS Pension amount and IRT share and all
other retirement benefits along with the entitled difference of
Dearness Allowance also, with interest at 12% per annum with
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effect from 01.06.2018, 01.05.2019, 01.08.2019, 01.04.2018.
For Petitioners .. Mr.N.Desinghu
(in all the WPs)
For Respondents .. Mr.A.Sundaravadanam,
(for R.1)
Mr.C.S.K.Sathish,
(for R.2)
(in all the WPs)
COMMON ORDER
In all these writ petitions, the prayer is for the grant of
interest for the belated settlement of retirement benefits like P.F,
Gratuity, and encashment of Earned Leave/sick leave etc. As a
matter of fact, this Court, both Single Judges and Division Benches
dealt with such prayer earlier for payment of interest for the belated
settlement of retirement benefits to the retired transport
employees.
2.The Courts have been granting payment of interest @ 4%
or 6% as the case may be. In some cases, the Division Bench of
this Court has granted 6% interest and in few other cases this Court
has granted 4% interest. On the whole, this Court finds that, there
is no consensus as to whether 4% or 6% to be granted in such
matters where the employees have been settled their retirement
benefits belatedly due to resource crunch faced by the State
Corporation.
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3. Today, when this matter is taken up for hearing, there was
a clamour for claiming higher interest of 6 percent and it was also
opposed by the counsels who are representing the Corporation.
According to them in a recent decision of the learned Judge of this
Court in W.P.No.23229 of 2021 dated 28.10.2021, after taking into
account the various earlier orders, has granted only 4 percent
interest. Per contra, the learned counsel Mr.N.Desinghu, would rely
on a decision of the Division Bench of this Court in
W.A.(MD).No.1349 & 1350 of 2021 dated 12.07.2021, wherein
there was a direction to pay 6% interest. A learned Judge of this
Court following the above Division Bench Judgment in Writ Appeal
No.1349 & 1350 of 2021, in a batch of Writ Petitions in
W.P.Nos.15636, 15640, 15647, 15651, 15654 & 15656 of 2021
dated 29.07.2021 has once again granted 6% interest for the
delayed payments. One other learned Judge of this Court vide order
dated 02.07.2021 in W.P.No.10553 of 2021 has ordered 6%
interest. Therefore, learned counsels appearing on behalf of the
petitioners would pray for 6% interest as majority of the judges
have granted the same.
4.At this learned counsels representing the Corporation
uniformly submitted that already the Corporation has suffered huge
losses due to Covid-19 situation prevailing in State for more than 20
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months. The Corporation would be unable to mobilize and come up
with funds to pay 6% interest. The Corporation is already facing
severe financial strain, and unable to sustain itself and any further
increase in the percentage of interest to be paid to the employees,
it would result in severe financial burden on the corporation, which
the Corporation would be unable to bear. The Corporation would
also have to take into consideration the serving employees and the
retiring employees also in future. Therefore, a passionate request
has been made before this Court for grant of 4% interest which
should be reasonable and fair to compensate belated payments
made to the retired employees.
5. In consideration of the request emanating from the learned
Standing counsels for the Corporation, which appear to this Court to
be fair and reasonable considering the weak financial position of the
Corporation, this Court persuaded the learned counsels appearing
for the petitioners to accept 4% interest. All the counsels who are
representing the parties today have uniformly accepted 4% interest
to be payable on the belated payments made to the petitioners.
During the course of argument it is also agreed by all the counsels
of the corporation that the 4% interest payable would be settled in
one lump-sum, if 8 weeks time is granted to the Corporation.
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6.In view of the consensus being reached by the parties,
these writ petitions are disposed of with the following directions;
The Corporation is directed to pay 4% interest to
all the employees who have been settled belatedly their
retirement benefits within a period of 8 weeks from the
receipt of copy of order of this Court. In case, some of
the employees who have not been settled their portion
of the retirement benefits as such are also entitled to
be paid 4% interest till they receive the actual
retirement benefits in full.
Those payments would also carry 4% till the date
it is fully released by the corporation. The interest of
4% would cover the period of 8 weeks from the date of
receipt of copy of this order.
Any further default of the payments by the
corporation, the interest would be enhanced to 6
percent after the expiry of 8 weeks of period of time
and such percentage would become payable till the
entire amounts are settled to the employees concerned.
7.These Writ Petitions stand disposed of accordingly. No costs.
02.02.2022
Index:Yes/No
Internet:Yes/No
https://www.mhc.tn.gov.in/judis
mrm
To
1.The Managing Director,
Tamil Nadu State Transport Corporation
(Salem) Limited,
Ramakrishna Salai,
Salem- 636 007.
2.The Adminstrator,
Tamil Nadu State Transport Corporation
Employees Post Retirement Welfare Fund Scheme,
Thiruvalluvar House, Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis
V.PARTHIBAN,J.
mrm
W.P.Nos.6951, 6955, 6957 & 6959 of 2021
02.02.2022
https://www.mhc.tn.gov.in/judis
