Madras High Court
A.Kannan 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.5766 of 2022
A.Kannan ... Petitioner
Vs.
1.The Management of
Tamilnadu State Transport Corporation (Thirunelveli) Ltd.,
Thirunelveli Region,
Rep. by its General Manager,
Thirunelveli.
2.The Administrator,
Tamil Nadu State Transport Employee's Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai,
Chennai-2. ... Respondents
PRAYER : This Writ Petition is filed under Article 226 of Constitution of
India for issuance of Writ of Mandamus, to direct the respondents to pay
interest to the petitioner at the rate of 6% per annum, for the period of
delay from 01.01.2019 to 22.09.2019, in paying the amounts paid
towards his terminal and pension benefits of the petitioner namely EPF
Employee's Contribution, Gratuity and Commutated Value of Pension
within a time frame as may be fixed by this Court and without affecting
his right to claim balance amounts towards those benefits.
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W.P.(MD)No.5777 of 2022
For Petitioner : Mr.S.Arunachalam
For R1 : Mr.R.Rajamohan
For R2 : Mr.A.Swaminathan
ORDER
Seeking a direction to the respondents to settle interest at the rate
of 6% per annum for the belated payment of petitioner's terminal and
pension benefits namely EPF Employee's Contribution, Gratuity and
Commutated Value of Pension, 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-Level 5 in the respondent corporation. Though he retired on
31.12.2018, on attaining the age of superannuation, his retirement
benefits were settled belatedly. Hence, the petitioner has made a
representation to the respondents on 26.11.2021, for interest on the
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W.P.(MD)No.5777 of 2022
belated payment of the terminal and pension 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
31.12.2018, 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
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W.P.(MD)No.5777 of 2022
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
for the belated retirement benefits namely EPF Employee's Contribution,
Gratuity and Commutated Value of Pension, from the date of his
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W.P.(MD)No.5777 of 2022
retirement till the date on which the said terminal and pension 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.
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.
https://www.mhc.tn.gov.in/judis
W.P.(MD)No.5777 of 2022
KRISHNAN RAMASAMY, J.
cp
To:-
1.The General Manager,
The Management of
Tamilnadu State Transport Corporation (Thirunelveli) Ltd.,
Thirunelveli Region,
Thirunelveli.
2.The Administrator,
Tamil Nadu State Transport Employee's Pension Fund Trust,
Thiruvalluvar Illam,
Anna Salai,
Chennai-2.
W.P.(MD)No.5766 of 202022
31.03.2022
https://www.mhc.tn.gov.in/judis
