Madras High Court

A.P.Kamaraju vs M/S.Metropolitan Transport ... on 4 February, 2022

                                                       1

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED:04.02.2022

                                                    CORAM

                                    THE HON'BLE Mr. JUSTICE V.PARTHIBAN

                              W.P.Nos.19542 & 19546 of 2020; 24606 & 24608 of 2021

                     1.A.P.Kamaraju                    ...Petitioner   in   W.P.No.19542/2020
                     2.S.Ravanan                       ...Petitioner   in   W.P.No.19546/2020
                     3.Mrs.M.O.Mary Chacko             ...Petitioner   in   W.P.No.24606/2021
                     4.R.Manimozhi                     ...Petitioner   in   W.P.No.24608/2021

                                                           Vs.

                     M/s.Metropolitan Transport Corporation,
                     Represented by its Managing Director,
                     No.1, Pallavan Salai,
                     Chennai - 600 002.
                                                                 ...Respondent in W.P.Nos.

19542 & 19546 of 2020

1.M/s.Metropolitan Transport Corporation, Represented by its Managing Director, No.1, Pallavan Salai, Chennai - 600 002.

2.M/s.Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, Rep by its Administrator, No.2, Pallvana Salai, Chennai - 600 002.

...Respondents in W.P.Nos.

24606 & 24608 of 2021

Prayer in W.P.Nos.19542 & 19546/2020: Writ Petitions filed under article 226 of the Constitution of India prayed to issue a writ of Mandamus directing the respondent directing the respondent to settle a sum of Rs.12,00,000/- towards Gratuity, a sum of Rs.8,00,000/- towards Commutation of 1/3rd pension amount, a sum of Rs.1,92,000/- towards leave salary, a sum of Rs.8,00,000/- https://www.mhc.tn.gov.in/judis towards provident fund, a sum of Rs.4,500/- towards refund of EEC

and EMC deposit and a sum of Rs.25,000/- towards surrender of 15 days Earned leave during 2017 with 6% interest by considering the representation of the petitioner dated 05.11.2020 in the light of the orders passed by this Hon'ble Court in W.P.No. 41605 and 41606 of 2016 dated 28.11.2016.

Prayer in W.P.Nos.24606 & 24608/2021: Writ Petitions filed under article 226 of the Constitution of India prayed to issue a writ of Mandamus directing the respondents herein to settle a sum of Rs.3,79,728/- to the petitioner herein towards interest for the belated settlement of Service Gratuity and other Terminal benefits by considering the representation of the petitioner dated 30.09.2021.

                                       For Petitioner     .. Mr.D.Soundar raj
                                                             (in all the WPs)
                                       For Respondents     .. Mr.K.Moorthy (for R.1)
                                                             (in all the WPs)
                                                             Mr.C.S.K.Sathish (for R.2)
                                                             (in W.P.Nos.24606 &
                     24608/2021)

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

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.

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.D.Soundar Raj, 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% https://www.mhc.tn.gov.in/judis

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

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.

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

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.

04.02.2022

Index:Yes/No Internet:Yes/No mrm

1.M/s.Metropolitan Transport Corporation, Represented by its Managing Director, No.1, Pallavan Salai, Chennai - 600 002.

2.M/s.Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, Rep by its Administrator, No.2, Pallvana Salai, Chennai - 600 002.