Madras High Court
N.Ranganathan vs The Management Of on 27 January, 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 27.01.2022
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.Nos.1071 & 1073 of 2022
N.Ranganathan ...Petitioner in W.P.No.1071 of 2022
S.Ramesh Kumar ...Petitioner in W.P.No.1073 of 2022
Vs.
1.The Management of
Tamil Nadu State Transport Corporation (Kovai) Ltd,
Erode Region,
Represented by its Managing Director,
Erode.
2.The Administrator,
Tamil Nadu State Transport
Employees' Pension Fund Trust,
Thiruvalluvar Illam, Anna Salai,
Chennai - 2. ...Respondents in both W.Ps
PRAYER: Petitions filed under Article 226 of the Constitution of India
praying to issue a writ of Mandamus, directing the respondents to pay the
petitioner interest at the rate of 18% per annum, for the period of delay from
01.05.19 to 24.01.21, in paying the amounts paid towards the terminal and
pension benefits of the petitioner namely EPF Employee's Contribution,
Gratuity, Encashment of Earned/Sick leaves and Commutated value of
pension.
https://www.mhc.tn.gov.in/judis
In both W.Ps
For Petitioners .. Mr.V.Ajoy Khose
For Respondents .. Mr.A.Sundaravadanam,
Standing Counsel for R.1
Mr.C.S.K.Satish (for R.2)
COMMON ORDER
In 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 these writ petitions have been taken up for hearing,
there was a clamour for claiming higher interest of 6 percent and it was also
opposed by the counsel who is representing the corporation. According to
him, 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.V.Ajoy Khose 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 Nos.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 counsel
appearing on behalf of the petitioners would pray for 6% interest as
majority of the judges have granted the same.
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4.At this, learned counsel representing the Corporation 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 counsel 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 counsel 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
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the counsel 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;
(a) 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 date of receipt of
a copy of the 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.
(b) 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 a copy
of this order.
(c) Any further default of the payments by the
corporation, the interest would be enhanced to 6 percent after
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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.
27.01.2022
Index:Yes/No
Internet:Yes
gsk/tri
To
1.The Management of
Tamilnadu State Transport Corporation (Kovai) Ltd,
Erode Region,
Represented by its Managing Director,
Erode.
2.The Administrator,
Tamil Nadu State Transport
Employees Pension Fund Trust,
Thiruvalluvar Illam, Anna Salai,
Chennai - 2.
https://www.mhc.tn.gov.in/judis
V.PARTHIBAN,J.
gsk/tri
W.P.Nos.1071 &1073 of 2022
27.01.2022
https://www.mhc.tn.gov.in/judis
