B. Neelakandakurukkal vs Tamil Nadu State Transport
2022 Latest Caselaw 6575 Mad

Citation : 2022 Latest Caselaw 6575 Mad
Judgement Date : 30 March, 2022

Madras High Court

B. Neelakandakurukkal vs Tamil Nadu State Transport on 30 March, 2022

W.P.(MD).No.5589 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.5589 of 2022

B. Neelakandakurukkal ... Petitioner

vs.

1.Tamil Nadu State Transport
Corporation Ltd.,
Rep. by its Managing Director,
Thirunelveli Division,
Thirunelveli – 627 011.

2. The General Manager,
Tamil Nadu State Transport
Corporation Ltd.,
Nagercoil Region, Rani Thottam,
Nagercoil,
Kanyakumari – 629 001. ... Respondents

PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India for issuance of a Writ of Mandamus to issue a Writ of Mandamus
or any other appropriate writ or orders or directions in the nature of writ,
directing the respondents to pay 6% Interest for the belated payment of
terminal benefits such as P.F., Gratuity and Leave salary, payable to the
Petitioner from the date of his retirement i.e. 31.07.2019 to til the date of
actual payment made to him i.e. 25.01.2021 and all other attendant
benefits to him within the stipulated period and to pass such other or

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W.P.(MD).No.5589 of 2022

further orders as this Court.

For Petitioner : Mr. A.K. Thangavelu
For Respondents : Mr. R. Rajamohan(R1)
Mr.A. Swaminathan(R2)

ORDER

Seeking a direction to the respondents to pay 6% Interest for the

belated payment of terminal benefits such as P.F., Gratuity and Leave

salary, payable to the Petitioner from the date of his retirement i.e.

31.07.2019 to till the date of actual payment made to him i.e. 25.01.2021

and all other attendant benefits to him, 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 was working as Senior Assistant

in the respondent corporation. Though he retired on 31.07.2019, on

attaining the age of superannuation, his retirement benefits were settled

belatedly. Hence, the petitioner has made a representation to the

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5589 of 2022

respondents on 31.01.2022, for interest on the belated payment of the

terminal benefits. Since the said representation has not been considered

so far, the petitioner is before this Court.

4.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. Referring to the said judgment, he

would submit that the petitioner is entitled to 6% interest.

5.The learned counsel for the respondents submitted that due to

financial crisis they may be permitted to pay the interest on the belated

payment in monthly instalments.

6.Admittedly, the petitioner was retired from service on

31.07.2019, on attaining the age of superannuation. However, his

retirement benefits were settled belatedly.

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

as follows:

“8.When the appellant is liable to pay the

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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 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.”

8. As held by the Hon'ble Division Bench of this Court, when there

is a delay in payment of retirement benefits, the employee is entitled for

payment along with interest.

9.In view of the above, this Court is of the view that the petitioner

is entitled for the interest at the rate of 6% per annum. Therefore, this

Court directs the respondents to pay interest at the rate of 6% per annum

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for the belated retirement benefits including Provident Fund, Gratuity,

commuted value of pension and terminal leave salary, from the date of

his retirement till the date on which the said terminal benefits were

settled to him, on or before 31.07.2022, failing which, the Managing

Director or the General Manager (Chief Finance Officer) shall appear