S.Petchimuthu vs The Management Of
2022 Latest Caselaw 6739 Mad

Citation : 2022 Latest Caselaw 6739 Mad
Judgement Date : 31 March, 2022

Madras High Court

S.Petchimuthu vs The Management Of on 31 March, 2022

                                                                          W.P.(MD).No.5755 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.5755 of 2022


                     S.Petchimuthu                                           ... Petitioner

                                                    vs.

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

                     2.The Administrator,
                       The Tamil Nadu State Transport Corporation
                        Employees' Pension Fund Trust,
                       Thiruvalluvar Illam,
                       Anna Salai,
                       Chennai – 600 002.                                ... Respondents

                     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
                     interest to the petitioner at the rate of 6% per annum, for the period of
                     delay from    01.05.2020 to 01.06.2021, in paying the amounts paid
                     towards the terminal and pension benefits namely EPF Employee's
                     Contribution, Gratuity, Encashment of Earned Leaves and commutated
                     Value of Pension, within a time frame as may be fixed by this Court and

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https://www.mhc.tn.gov.in/judis
                                                                                    W.P.(MD).No.5755 of 2022


                     without affecting his right to claim balance amounts towards those
                     benefits.


                                        For Petitioner           : Mr. S.Arunachalam
                                        For R1                   : Mr. R.Rajamohan,
                                        For R2                   : Mr.A.Swaminathan


                                                            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, Gratuity, Encashment of Earned

Leaves 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 Conductor in the

respondent corporation. Though he retired on 30.04.2020, on attaining

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5755 of 2022

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 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 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

30.04.2020, on attaining the age of superannuation. However, his

retirement benefits were settled belatedly.

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5755 of 2022

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.

https://www.mhc.tn.gov.in/judis W.P.(MD).No.5755 of 2022

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, Encashment of Earned Leaves and Commutated

Value of Pension, 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,