P.Senthivel vs The Management Of
2022 Latest Caselaw 6709 Mad

Citation : 2022 Latest Caselaw 6709 Mad
Judgement Date : 31 March, 2022

Madras High Court

P.Senthivel vs The Management Of on 31 March, 2022

                                                                          W.P.(MD).No.4379 of 2021


                       BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                             DATED:31.03.2022

                                                    CORAM:

                        THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY

                                           W.P.(MD).No.4379 of 2021

                     P.Senthivel                                         ... Petitioner

                                                    vs.

                     1.The Management of
                           Tamil Nadu State Transport Corporation (Madurai) Ltd.,
                       Dindigul Region,
                       Rep. by its General Manager,
                       Dindigul.

                     2.The Administrator
                       Tamil Nadu State Transport Employees' Pension Fund Trust,
                       Thiruvalluvar Illam
                       Annasalai
                       Chennai 2.                                     ... 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
                     interest at the rate of 18% per annum for the period of delay from
                     01.05.2019 to 24.01.2021 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
                     commuted value of pension, along with the balance amount of Rs.
                     15,922/- payable towards encashment of earned/sick leaves together with


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                                                                                   W.P.(MD).No.4379 of 2021


                     interest with at the rate of 18% per annum within a time frame as fixed
                     by this Court.
                                        For Petitioner            : Mr.S.Arunachalam
                                        For Respondents         : Mr.J.Senthil Kumaraiah




                                                           ORDER

Seeking a direction to the respondents to pay interest at the rate of

18% per annum for the period of delay from 01.05.2019 to 24.01.2021 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 commuted value of pension, along with the

balance amount of Rs.15,922/- payable towards encashment of

earned/sick leaves together with interest with at the rate of 18% per

annum within a time frame as fixed by this Court, 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 Grade

https://www.mhc.tn.gov.in/judis W.P.(MD).No.4379 of 2021

Tradesman in the respondent corporation. Though he retired on

30.04.2019, on attaining the age of superannuation, his retirement

benefits were settled belatedly. Hence, the petitioner has made a

representation to the respondents on 29.01.2021, 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

30.04.2019 on attaining the age of superannuation. However, his

retirement benefits were settled belatedly.

https://www.mhc.tn.gov.in/judis W.P.(MD).No.4379 of 2021

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 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

https://www.mhc.tn.gov.in/judis W.P.(MD).No.4379 of 2021

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

for the belated terminal and pension benefits of the petitioner namely

EPF Employee's Contribution, Gratuity, Encashment of Earned/Sick

Leaves and commuted value of pension, along with the balance amount

of Rs.15,922/- payable towards encashment of earned/sick leaves