E.Balakrishnan vs The Management Of
2022 Latest Caselaw 6727 Mad

Citation : 2022 Latest Caselaw 6727 Mad
Judgement Date : 31 March, 2022

Madras High Court

E.Balakrishnan vs The Management Of on 31 March, 2022

                                                                                   W.P.(MD).No.5735 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.5735 of 2022


                     E.Balakrishnan                                                  ... Petitioner

                                                         vs.

                     The Management of
                     Tamilnadu State Transport Corporation (Thirunelveli) Ltd.,
                     Thirunelveli Region,
                     Represented by its General Manager,
                     Thirunelveli.                                         ... Respondent

                     PRAYER: Writ Petition is filed under Article 226 of the Constitution of
                     India for issuance of a Writ of Mandamus to direct the respondent to pay
                     the petitioner interest at the rate of 6% per annum, for the period of
                     delay from       01.05.2019 to 24.01.2021, in paying the amounts paid
                     towards      petitioner's    terminal     benefits   namely    EPF     Employee's
                     Contribution and Gratuity within a time frame as may be fixed by this
                     Honourable 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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https://www.mhc.tn.gov.in/judis
                                                                                    W.P.(MD).No.5735 of 2022


                                                            ORDER

Seeking a direction to the respondent to settle interest at the rate of

6% per annum for the belated payment of petitioner's terminal benefits

namely EPF Employee's Contribution and Gratuity 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

30.04.2019, on attaining the age of superannuation, his retirement

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

representation to the respondent on 17.11.2021, 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.

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5735 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

30.04.2019, 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 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

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5735 of 2022

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 respondent to pay interest at the rate of 6% per annum

for the belated retirement benefits namely EPF Employee's Contribution

and Gratuity, 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

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5735 of 2022