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The Managing Director vs P.Sengamalai
2022 Latest Caselaw 15660 Mad

Citation : 2022 Latest Caselaw 15660 Mad
Judgement Date : 22 September, 2022

Madras High Court
The Managing Director vs P.Sengamalai on 22 September, 2022
                                                                                W.A.No.2476 of 2018

                                      IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    DATED: 22.09.2022

                                                              Coram

                                       The Hon'ble Mr. Justice PARESH UPADHYAY
                                                            and
                                  The Hon'ble Mr. Justice D.BHARATHA CHAKRAVARTHY

                                                   W.A.No.2476 of 2018
                                                and C.M.P.No.19972 of 2018


                     1.The Managing Director,
                      Tamil Nadu State Transport Corporation(Salem)
                         Limited,
                      12, Ramakrishna Road,
                      Salem-636 007.

                     2.The General Manager,
                       Tamil Nadu State Transport Corporation(Salem)
                         Limited,
                       Salem-636 007.

                     3.The Company Secretary,
                      TNSTC (Salem) Limited,
                      Salem-7.                                                  ..   Appellants

                                                               Vs

                     P.Sengamalai                                                .. Respondent


                                  Appeal preferred under Clause XV of Letters Patent against the
                     order dated 08.03.2018 made in W.P.No.20271 of 2012.


                                       For Appellants   ..      Mr.R.Balu

                                       For Respondent    .. Mr.P.M.Subramaniam for
                                                            Ms.S.Girija
                                                        JUDGMENT

https://www.mhc.tn.gov.in/judis W.A.No.2476 of 2018

(Delivered by PARESH UPADHYAY, J.)

1. Challenge in this appeal is made to the order dated

08.03.2018 recorded on W.P.No.20271 of 2012. This appeal is by

the respondent / Management.

2. Learned Advocate for the appellant has submitted that,

the demand made by the appellant – Management (towards interest)

was strictly in accordance with the provisions holding the field and

therefore interference therein by the learned single Judge is

erroneous and therefore this appeal be entertained.

3. On the other hand, learned advocate for the respondent -

workman has submitted that, the workman was out of employment

for the reasons not attributable to him and after considering the

totality learned single Judge has granted relief which may not be

interfered with. It is submitted that this appeal be dismissed.

4. Having heard learned advocates for the respective

parties and having considered the material on record, this Court

finds that in para : 9 of order under challenge, learned Single Judge

https://www.mhc.tn.gov.in/judis W.A.No.2476 of 2018

has recorded reason, which according to us, is just and proper. It

reads as as under:-

“9. This Court is unable to see as to how

the Corporation is justified in claiming

the interest on its contribution from the

employee, particularly in the teeth of the

fact that the employee himself has given an

undertaking foregoing the back-wages

apparently running to lakhs of rupees before

this Court in the earlier proceedings.

Such being the case, it is unconscionable

for the State Corporation to claim interest

from its employee towards its contribution

which was of course settled at the time of

discharge. At best, the employee is only

liable to pay actual contribution that was

settled in his favour viz., the sum of

Rs.35,146/- and not any accrued interest on

the said amount. Therefore, the claim of

the Corporation for Rs.1,53,572/- cannot be

sustained both in law and on facts.”

5. We find that, not only the demand of the employer of

https://www.mhc.tn.gov.in/judis W.A.No.2476 of 2018

Rs.1,53,572/- was illegal, the arbitrariness on the part of the

appellant- employer assumes further significance considering the fact

that, though the writ petitioner has retired way back in the year 2011

and now more than a decade has passed, only because of this

controversy, he is not paid anything towards his retirement dues. In

this background we find that, not only the order of learned single

Judge does not call for any interference, further direction also needs

to be given, as to why the same yardstick be not applied against the

appellant Corporation to pay interest to the workman, who is

deprived of his legitimate dues for a decade.

6. We also note that, the backwages are not paid to the

workman on the basis of his concession. This issue is already

considered by this Court in W.A.No.2302 of 2021 (order dated

03.02.2022), more particularly paragraph 8 thereof. We note that ,

learned Advocate for the appellant had attempted to rely on the

regulations for Tamil Nadu State Transport Management Pension Fund

Trust. We also find that, it is that very set of rules, which was under

consideration before the Bench in the matter referred above.

7. For the reasons recorded above, the following order is

passed:-

https://www.mhc.tn.gov.in/judis W.A.No.2476 of 2018

7.1 This appeal is dismissed.

7.2 The appellant - Corporation is directed to pay the terminal

dues to the workman (writ petitioner) as directed by learned single

Judge, not later than 17.10.2022.

7.3 The question of compensating the workman appropriately,

shall be considered, once the terminal dues are paid to the workman.

7.4 Connected civil miscellaneous petition would not survive.

8. List on 19.10.2022 'for reporting compliance'.

(P.U.J.,) (D.B.C.J.,) 22.09.2022 Index:No raa/21

https://www.mhc.tn.gov.in/judis W.A.No.2476 of 2018

PARESH UPADHYAY, J.

and D.BHARATHA CHAKRAVARTHY, J.

raa

W.A.No.2476 of 2018

22.09.2022

https://www.mhc.tn.gov.in/judis

 
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