Madras High Court
S.Balasubramanian vs The Management on 4 January, 2023
W.A.No.352 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.01.2023
CORAM:
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
AND
THE HONOURABLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP
W.A.No.352 of 2020
and
C.M.P.No.5875 of 2020
S.Balasubramanian ...Appellant
Vs.
1.The Management,
Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
Villupuram Region,
Salamedu Villupuram,
Villupuram District – 605 602.
2.The Administrator,
Tamil Nadu State Transport Corporation,
Employees Pension Fund,
Pallavan Salai, Chennai – 600 002. ...Respondents
Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, to set aside
the order dated 03.10.2019 in W.P.No.28874 of 2019, allow the Writ Appeal
and consequently direct the respondents to pay interest for the belated
payment of gratuity and commutation of pension amount.
1/6
https://www.mhc.tn.gov.in/judis
W.A.No.352 of 2020
For Appellant : Mr.S.T.Varadarajulu
For Respondents : Mr.M.Aswin, Standing Counsel for R1
Mr.C.S.K.Sathish for R2
JUDGMENT
(Judgment was made by R.SUBRAMANIAN, J.)
The appellant is aggrieved by the dismissal of his writ petition in
which he had sought for a writ of mandamus directing the respondents to
pay interest for the belated payment of gratuity and commutation pension
2. The appellant joined the services of the Corporation on
14.11.1975 as a Junior Assistant and after rendering 35 years of services
eventually retired on 30.06.2010. His retirement benefits were not settled
immediately after his retirement. His Gratuity was paid on 26.03.2011 after
a delay of 8 months and 25 days. The Commutation Pension was paid on
14.07.2011 i.e., after 12 months and 13 days. The appellant therefore
claimed that he is entitled to interest for the delayed period on the Gratuity
and the Commutation Pension.
https://www.mhc.tn.gov.in/judis
W.A.No.352 of 2020
3. Though the appellant accepted the principal amount without
demand, upon this Court passing order in W.A.No.665 of 2018 dated
28.03.2018 the appellant made a representation seeking interest. Since the
same was not complied with, the appellant approached this Court with a
prayer for mandamus. The said prayer for mandamus was rejected by the
writ Court solely on the ground of delay and latches.
4. No doubt, there has been a delay on the part of the appellant,
However, a Division Bench of this Court in W.A.No.665 of 2018 had passed
an order on 09.07.2018 concluding that the Corporation is liable to pay
interest on the belated payment of retirement benefits and the Division
Bench took note of the fact of non-payment of interest to several thousands
of employees and had in fact applied the doctrine of judgment in rem in
other cases. This in our opinion would amount to a direction to the
Corporation to pay interest to all the employees wherever there is a delay in
disbursement of retirement benefits.
https://www.mhc.tn.gov.in/judis
W.A.No.352 of 2020
5. We are therefore of the considered opinion that by dismissal of
the writ petition, the writ Court had gone against the pronouncement of the
Division Bench. Once the Division Bench makes a direction and makes it a
direction in rem that would definitely enure to the benefit of all the
employees and that by itself would give a cause of action to other employees
to seek payment of interest.
6. We are therefore unable to uphold the order of the writ Court.
The writ appeal is allowed with a direction to pay interest at 6% for the
belated payment of Gratuity. It is made clear that the interest will be
payable only for the delay period.
(R.S.M., J.) (S.S.K., J.)
04.01.2023
dsa
Internet :Yes
Index :No
Speaking order
https://www.mhc.tn.gov.in/judis
W.A.No.352 of 2020
To
1.The Management,
Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
Villupuram Region,
Salamedu Villupuram,
Villupuram District – 605 602.
2.The Administrator,
Tamil Nadu State Transport Corporation,
Employees Pension Fund,
Pallavan Salai, Chennai – 600 002.
https://www.mhc.tn.gov.in/judis
W.A.No.352 of 2020
R.SUBRAMANIAN, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
dsa
W.A.No.352 of 2020
04.01.2023
https://www.mhc.tn.gov.in/judis
