Madras High Court
S.Uthyakumar vs The Management Of on 31 March, 2022
W.P.(MD)No.5777 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 31.03.2022
CORAM:
THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY
W.P.(MD)No.5777 of 2022
S.Uthyakumar ... Petitioner
Vs.
The Management of
Tamilnadu State Transport Corporation (Thirunelveli) Ltd.,
Thirunelveli Region,
Rep. by its General Manager,
Thirunelveli. ... Respondent
PRAYER : This Writ Petition is filed under Article 226 of Constitution of
India for issuance of Writ of Mandamus, to direct the respondent to pay
interest at the rate of 18% per annum, for the period of delay from
01.06.2018 to 21.09.2019, in paying the amounts paid towards the
terminal benefits of the petitioner namely EPF Employee's Contribution,
Gratuity and Encashment of Earned Leaves within a time frame as may
be fixed by this Court and without affecting his right to claim balance
amounts towards those benefits.
For Petitioner : Mr.S.Arunachalam
For Respondent : Mr.R.Rajamohan
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W.P.(MD)No.5777 of 2022
ORDER
Seeking a direction to the respondent to settle interest at the rate of
18% per annum for the belated payment of petitioner's terminal benefits
namely EPF Employee's Contribution, Gratuity and Encashment of
Earned Leaves, from the date of his retirement to till the date on which
the said benefits were settled 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 Special Grade
Conductor in the respondent corporation. Though he retired on
31.05.2018, on attaining the age of superannuation, his retirement
benefits were settled belatedly. Hence, the petitioner has made a
representation to the respondent on 22.11.2021, 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.
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W.P.(MD)No.5777 of 2022
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 respondent 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
31.05.2018, 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
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
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W.P.(MD)No.5777 of 2022
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 respondent to pay interest at the rate of 6% per annum
for the belated retirement benefits namely EPF Employee's Contribution,
Gratuity and Encashment of Earned Leaves, 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 before this
Court.
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W.P.(MD)No.5777 of 2022
10.The Writ Petition is disposed of with the above direction.
No costs.
11.Post this matter on 04.08.2022 'for reporting compliance'.
31.03.2022
Index: Yes/No
Internet: Yes/No
cp
Note :In view of the present lock down owing to
COVID-19 pandemic, a web copy of the order may be
utilized for official purposes, but, ensuring that the copy of
the order that is presented is the correct copy, shall be the
responsibility of the advocate/litigant concerned.
To:-
The General Manager,
The Management of
Tamilnadu State Transport Corporation (Thirunelveli) Ltd.,
Thirunelveli Region,
Thirunelveli.
https://www.mhc.tn.gov.in/judis
W.P.(MD)No.5777 of 2022
KRISHNAN RAMASAMY, J.
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W.P.(MD)No.5777 of 2022
31.03.2022
https://www.mhc.tn.gov.in/judis
