P.Rajendran vs The Tamil Nadu State Transport
2022 Latest Caselaw 6556 Mad

Citation : 2022 Latest Caselaw 6556 Mad
Judgement Date : 30 March, 2022

Madras High Court

P.Rajendran vs The Tamil Nadu State Transport on 30 March, 2022

                                                                             W.P.(MD).No.5600 of 2022


                       BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                               DATED:30.03.2022

                                                      CORAM:

                        THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY

                                            W.P.(MD).No.5600 of 2022

                     P.Rajendran                                            ... Petitioner
                                                   vs.
                     1.The Tamil Nadu State Transport
                           Corporation Ltd.,
                       Represented by it's Managing Director,
                       Madurai Division,
                       Bye Pass Road,
                       Madurai-625 016.

                     2.The General Manager,
                       The Tamil Nadu State Transport
                           Corporation Ltd.,
                       Dindigul Region,
                       Chettinaykkanpatti Post,
                       Dindigul-624 004.                                  ... Respondents

                     PRAYER: Writ Petition is filed under Article 226 of the Constitution of
                     India for issuance of a Writ of Mandamus to direct the respondents to pay
                     the Service Surrender Leave salary amount of Rs.1,35,897/- payable to
                     the petitioner for the period from 2010 to 2016, together with 6% interest
                     from the date of his retirement i.e. 31.05.2016 to till the date of payment
                     and all other attendant benefits to him within the stipulated period.


                                   For Petitioner           : Mr.A.K.Thangavelu
                                   For Respondents        : Mr.T.Senthil Kumariah

                     1/7
https://www.mhc.tn.gov.in/judis
                                                                                  W.P.(MD).No.5600 of 2022


                                                           ORDER

Seeking a direction to the respondents to pay the Service Surrender

Leave salary amount of Rs.1,35,897/- payable to the petitioner for the

period from 2010 to 2016, together with 6% interest from the date of his

retirement i.e. 31.05.2016 to till the date of payment and all other

attendant benefits, the petitioner is before this Court with the present writ

petition.

2.By consent of both sides, the writ petition itself is taken up for

final disposal at the stage of admission itself.

3.According to the petitioner, he retired from service on

31.05.2016 on attaining the age of superannuation. As on the date of

retirement, there are earned leave and he is entitled to encash the same.

Though he retired as early as on 31.05.2016, the said payment has not

been paid so far. Therefore, the petitioner made a representation to the

respondents, but the same has not been considered so far and hence, the

petitioner is before this Court. In this regard, the learned counsel for the

petitioner referred to the Division Bench judgment of this Court made in

W.A.(MD) Nos.1883 to 1892 of 2021 dated 04.10.2021.

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5600 of 2022

4.On the other hand, the learned counsel for the respondents would

submit that no doubt, the petitioner is entitled for earned leave salary.

However, since the respondent Corporation is in financial crisis, the same

could not be paid and he seeks some time by way of installment. Further

he would submit that some employees were retired during COVID-19

pandemic situation and in those cases, he would submit that interest need

not be awarded.

5.Admittedly, the petitioner was permitted to retire from service on

31.05.2016 on attaining the age of superannuation and that the petitioner

is entitled for the earned leave salary. Though the learned counsel for the

respondents accepted that the petitioner is entitled to earned leave salary,

he disputes only interest portion.

6.The Division Bench of this Court in the case cited supra has held

as follows:

“8.When the appellant is liable to pay the surrender leave salary on the retirement of their employees, the delay in making payment of the leave salary is solely because of the appellants' inaction. The first respondent writ petitioner cannot be penalized for

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5600 of 2022

the wrong done by the appellant. Hence, the award of 6% interest on the surrender leave salary by the learned single Judge is perfectly correct. We do not find any ground to interfere with the orders passed by the learned single Judge. The writ appeals are devoid of merits and the same are dismissed. However, we make it clear that the reliefs granted by the learned single Judge in the writ petitions are confined only to the first respondent/writ petitioners, who have filed the writ petitions. No costs.

Consequently, connected miscellaneous Petitions are closed.”

7.The Hon'ble Supreme Court in the case of State of Jharkhand

and others v. Jitendra Kumar Srivastava (2013) 12 SCC 210, held that

the retirement benefits of an employee are not bounty, but property and

withholding of such benefits, without due process of law, is violative of

Article 300(A) of the Constitution of India.

8.The Hon'ble Supreme Court as well as this Court in several

occasions have held that when there is a delay in payment of retirement

benefits, the employee is entitled for payment along with interest.

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5600 of 2022

9.In view of the law laid down by the Hon'ble Supreme Court as

well as the Division Bench of this Court, this Court is of the view that the