Madras High Court
S.Palaniappan vs Tamil Nadu State Transport ... on 4 February, 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:04.02.2022
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.No.24595 of 2021
S.Palaniappan ...Petitioner
Vs.
1.Tamil Nadu State Transport Corporation(Salem Division)
Represented by its Managing Director,
No.12, Ramakrishna Road,
Salem - 636 007.
2.Tamil Nadu State Transport Corporation,
Employees' Pension Fund Trust,
Represented by its Adminstrator,
No.2, Pallavan Salai,
Chennai - 600 002. ...Respondents
PRAYER: Petition filed under Article 226 of the Constitution of India
praying to issue a writ of Mandamus directing the respondents herein
to settle a sum of Rs.1,81,185/- towards Terminal benefits and a sum
of Rs.1,08,628/- towards 6% interest for the belated settlement of
Terminal benefits altogether a sum of Rs.2,89,813/- by considering
the representation of the petitioner dated 17.09.2021.
For Petitioner .. Mr.D.Soundar Raj
For Respondents .. Mr.A.sundaravadanam
(for R.1)
Mr.C.S.K.Sathish
Standing Counsel (for R.2)
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ORDER
In this writ petition, 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.
3. Today, when this writ petition has been 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.Soudar raj,
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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
months. The Corporation would be unable to mobilize and come up
with funds to pay 6% interest. The Corporation are 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
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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. The learned counsel for the
petitioner has accepted 4% interest to be payable on the belated
payments made to the petitioners. During the course of argument it is
also agreed by both 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, this
writ petition stands disposed of with the following directions;
The Corporation is directed to pay 4% interest to
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
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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.The Writ Petition stands disposed of accordingly. No costs.
04.02.2022
tri/mrm
Index:Yes/No
Internet:Yes
To
1.Tamil Nadu State Transport Corporation(Salem Division)
Represented by its Managing Director,
No.12, Ramakrishna Road,
Salem - 636 007.
2.Tamil Nadu State Transport Corporation,
Employees' Pension Fund Trust,
Represented by its Adminstrator, No.2, Pallavan Salai,
Chennai - 600 002.
https://www.mhc.tn.gov.in/judis
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V.PARTHIBAN,J.
tri/mrm
W.P.No.24595 of 2021
04.02.2022
https://www.mhc.tn.gov.in/judis
