V.Thangavel vs Tamil Nadu State Transport ...
2022 Latest Caselaw 51 Mad

                                  IN THE HIGH COURT OF JUDICATURE AT MADRASs

                                                 DATED:03.01.2022

                                                        Coram

                                       The Hon'ble Mr. Justice V.PARTHIBAN

                          W.P.Nos.27773, 27775, 27777, 27779, 27782 & 27784 of 2021

                     V.Thangavel                                                    ...Petitioner

                                                         Vs.

                     1.Tamil Nadu State Transport Corporation (salem) Ltd,
                       Represented by its The Managing Director,
                       No.12, Ramakrishna Road,
                       Salem - 7.

                     2.Tamil Nadu State Transport Corporations
                       Employees' Pension Fund Trust,
                       Represented by its Administrator,
                       Thiruvalluvar Illam, 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 to pay
                     the petitioner interest at the rate of 6% per annum for the belated
                     payment of his PF, gratuity, commuted value of pension and earned
                     leave salary, to pay him wages towards 30 days of earned leaves
                     surrendered by the petitioner, while he was in service; to settle the
                     amounts payable under the Social Security Scheme, Family Benfit
                     Fund, IRT Contributions and to refund of contributions under the Post
                     Retirement Benefit Scheme, together with interest at the rate of 6%
                     within a specified time.




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                                        For Petitioner    ..    Mr.R.Krishnaswamy

                                        For Respondents ..      Mr.A.Sundaravadanam (for R.1)
                                                                Mr.C.S.K.Sathish ( for R.2)


                                                               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.

3. Today, when this batch of 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 counsels who are representing

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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.R.Krishnaswamy,

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

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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.

6.In view of the consensus being reached by the parties, these

writ petitions are disposed of with the following directions;

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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.All the Writ Petitions stand disposed of accordingly. No costs.

03.01.2022 tri/mrm Index:Yes/No Internet:Yes

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To

1.The Managing Director, Tamil Nadu State Transport Corporation (salem) Ltd, No.12, Ramakrishna Road, Salem - 7.

2.The Administrator, Tamil Nadu State Transport Corporations Employees' Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai - 600 002.

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

V.PARTHIBAN,J.

tri/mrm

W.P.Nos.27773, 27775, 27777, 27779, 27782 & 27784 of 2021

03.01.2022

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