Madras High Court
A.Shanmugavel vs The Managing Director on 21 January, 2022
W.P(MD)No.876 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 21.01.2022
CORAM:
THE HONOURABLE MR.JUSTICE B.PUGALENDHI
W.P(MD)No.876 of 2022
A.Shanmugavel ... Petitioner
versus
1. The Managing Director,
Tamil Nadu State Transport
Corporation (TNSTC)
Madurai Division,
Registrar Office,
Bye Pass Road,
Madurai.
2. The General Manager,
Tamil Nadu State Transport
Corporation (TNSTC),
Virudhunagar Region,
Virudhunagar District. ... Respondents
Writ Petition filed under Article 226 of the Constitution of India,
seeking for the issuance of Writ of Mandamus, to direct the second
respondent to pay interest for the period of delay from 2011 to
07.10.2021 in paying the amount of earned leave surrender benefits,
1/10
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W.P(MD)No.876 of 2022
based on the petitioner's representation dated 01.12.2021.
For Petitioner : Mr.S.Ayyanar Premkumar
For Respondents : Mr.J.Senthil Kumariah
Standing Counsel
ORDER
This writ petition has been filed for a Mandamus, directing the
second respondent to pay interest for the belated payment of surrender
leave salary, based on the petitioner's representation dated 01.12.2021.
2. The learned counsel for the petitioner submits that the
petitioner served in the respondent Transport Corporation and he
retired from service on 30.04.2015. Though he was paid with all
retirement benefits, the surrender leave salary amount of Rs.46545/-
was not paid to him. Despite his several request, the respondents did
not come forward to settle the surrender leave salary. Therefore, he
filed a writ petition in W.P.(MD)No.12432 of 2021, which was
disposed of by this Court, vide order dated 23.07.2021. Thereafter
only, the respondents have settled the surrender leave salary amount of
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W.P(MD)No.876 of 2022
Rs.46545/- only on 07.10.2021. Since the surrender leave salary
amount was paid belatedly, he is entitled for the interest for the belated
payment of surrender leave salary. Therefore, he submitted a
representation dated 01.12.2021, requesting the respondent to pay
interest for the belated payment of surrender leave salary. But, the
same was not considered. Therefore, the petitioner has filed the present
writ petition.
3. Mr.J.Senthil Kumariah, learned Standing Counsel, takes
notice for the respondents and submits that in view of the financial
crisis, the surrender leave salaray amount has not been settled to the
petitioner in time. According to him, the Surrender Leave Salary was
already paid to the petitioner and there is no statutory obligation for the
respondents to give any interest for the belated payment of surrender
leave salary. The learned counsel has also relied on similar Orders
passed by this Court in W.P(MD)Nos.24245, 24247 and 24250 of
2016, dated 20.12.2016 and W.P(MD) No 12851 of 2020 dated
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W.P(MD)No.876 of 2022
28.09.2020, in support of his contention that this Court has not
entertained such a relief of payment of interest for the belated payment
of surrender leave salary.
4. Heard the rival submissions made herein.
5. The writ petition is filed seeking interest for the belated
payment of surrender leave salary. The petitioner is an employee of the
transport corporation and he retired from service in the year 2015, but,
the surrender leave salary was settled only in the year 2021 and
therefore, the petitioner claimed for interest for the belated payment of
Surrender Leave Salary.
6. A retiring employee is entitled for encashment of earned leave
at his credit on the date of retirement or death subject to a maximum of
240 days. The rate of Leave Salary shall be the monthly salary. The
employees are permitted to surrender earned leave at anytime in one
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W.P(MD)No.876 of 2022
Financial Year and there must be twelve months gap from one
surrender to another surrender. The surrender leave benefit was also
available with respondent corporation. However, the surrender leave
salary has not been disbursed from the year 2011 onwards in view of
the financial crisis of the Tamilnadu State Corporations.
7. The claim of earned leave surrender salary for 15 days per
year or 30 days once in two years has been admitted in the settlement
arrived between the corporation and the Employees Trade Union under
Section 12(3) Industrial Disputes Act, 1947. The Transport Corporation
issued a circular on 09.01.2017 permitting the earned leave salary for
its employees. The stand of the Corporation is that the circular dated
09.01.2017 is meant only for the existing employees and not for the
retired employees.
8. The surrender of earned leave salary is not only applicable to
the existing employees and also to the retired employees, retirement on
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W.P(MD)No.876 of 2022
medical invalidation and legal heirs of the deceased employees. The
entitlements for the earned leave benefits was already settled by various
Judgment of this court and in this case, the surrender leave salary was
already settled to the petitioner. With regard to the entitlement of
interest for the belated payment of earned leave salary, this Court, vide
order dated 20.12.2016, in W.P.(MD)Nos.24245, 24247 and 24250 of
2016, has permitted only for the grant of Leave Salary though the writ
Petitions were filed for the relief payment of interest for the belated
payments. A similar stand was taken by this Court in W.P.(MD)No.
12851 of 2020, dated 28.09.2020. However, in W.P.(MD)No.1502 of
2020, vide order dated 27.01.2020, this Court permitted the payment of
interest for the belated payment of surrender of earned leave. A
Division Bench of this court in W.A(MD) No.210 of 2019, by
Judgment dated 04.09.2019, has also granted the relief of leave salary
without any interest.
9. Pension, Graduity, Commutation, Earned Leave, GPF are
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W.P(MD)No.876 of 2022
termed as retirement benefits or terminal benefits. The Gratuity Act
provides for 10% of interest for the belated payment of gratuity
amount. However, there is no other statutory rule provides interest for
the belated payment of other terminal benefits. May be, the Legislature
are not expected this kind of delay in Payment of retirement benefits.
The State Transport Corporation is also providing certain welfare
measures to the citizens, such as, free travel pass to the students, free
tickets to the women etc.
10. The Government is not providing compensation to this
welfare schemes and ultimately, the corporation is facing financial
crises. The welfare scheme alone was not the sole reason for the
financial crises of the transport department. The mismanagement and
non administration also contribute to some extent. The employees and
traders unions are silent spectators of the non administration and also
responsible to some extent for the financial crisis.
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W.P(MD)No.876 of 2022
11. Though there is no statutory obligation for the management to
pay interest for the belated payment of terminal benefits, the Apex
Court in S.K.Dua vs. State of Haryana reported in 2008 (3) SCC 44 held
that the retirement benefits are not in the nature of bounty and even in
the absence of any statutory rules, administrative instructions or
guidelines, an employee can claim interest under part III of the
Constitution by relying on Article 14,19 and 21 of the Constitution of
India. Following the Judgment of the Hon’ble Supreme Court, this
Court passed several orders, directing the Management to pay interest
at the rate of 6% for the belated payment of terminal benefits.
12. It is to be noted that though the Hon’ble Apex Court in
S.K.Dua’s case has not prescribed the quantum of interest eligible
amount for the belated payment of terminal benefits, this Court fixed
6% interest for the terminal benefits by taking into consideration of
financial crisis of the transport corporation.
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W.P(MD)No.876 of 2022
13. As discussed above, Surrender Leave Salary is eligible to an
employee in a Financial Year for 15 days within a calendar year or 30
days in two years. The Surrender Leave salary was denied to the
employees in view of the financial crisis faced by the Corporation. It is
agreed between the Management and the Union under 12(3) Settlement
that there shall not be any interest for the belated payment of surrender
of earned leave.
14. Considering the financial crisis faced by the Transport
Corporation and the 12(3) settlement, this court in earlier orders
referred above, has not granted any interest for the belated payment of
surrender leave. Therefore, this court is not inclined to grant interest
for the belated payment of surrender leave salary.
15. Accordingly, the writ petition is dismissed. No costs.
21.01.2022
ogy
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W.P(MD)No.876 of 2022
B.PUGALENDHI, J.
ogy
To
1. The Managing Director,
Tamil Nadu State Transport
Corporation (TNSTC)
Madurai Division,
Registrar Office,
Bye Pass Road,
Madurai.
2. The General Manager,
Tamil Nadu State Transport
Corporation (TNSTC),
Virudhunagar Region,
Virudhunagar District.
W.P(MD)No.876 of 2022
21.01.2022
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