Madras High Court
C.Dayalan vs Tamil Nadu State Transport ... on 4 January, 2023
W.A.No.332 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.332 of 2020
C.Dayalan ...Appellant
Vs.
1.Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Rep. by the Managing Director,
No.3/137, Salamedu, Valudhareddy Post,
Villupuram – 605 602.
2.Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Rep. by the General Manager,
Kancheepuram Regional Office,
Chennai – Bengalaru Highway,
Karapettai, Kancheepuram – 631 552. ...Respondents
Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, against the
order dated 18.09.2019 in W.P.No.27570 of 2019.
For Appellant : Mr.N.Ishak
For Respondents : Mr.M.Aswin, Standing Counsel
1/6
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W.A.No.332 of 2020
JUDGMENT
(Judgment was made by R.SUBRAMANIAN, J.)
The appellant is aggrieved by the dismissal of his writ petition
seeking a direction to the respondent Corporation to pay interest for the
belated payment of gratuity.
2. The writ Court dismissed the writ petition on the ground of
delay and latches. The appellant joined the services of the respondent
Corporation on 17.08.1974 and retired on 30.06.2012 after attaining the age
of superannuation. On the date of his retirement, his Provident Fund was
disbursed. The other retirement benefits like Commutation Pension were
paid to the petitioner belatedly in November 2013 and for the delayed
payment, interest was paid on 16.08.2018 as per the order passed by the
Division Bench of this Court in W.A.No.665 of 2018.
3. The gratuity of the petitioner was paid to him only on
12.05.2015, since the interest for the belated payment of gratuity was not
paid, the petitioner made a representation on 25.09.2018 and followed by a
remainder on 11.05.2019. Since his request was not complied with, the
petition sought for a mandamus.
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W.A.No.332 of 2020
4. The writ Court rejected the petition solely on the ground of
delay. The liability to pay interest for the delayed payment of gratuity is a
statutory liability and the same arises due to non-compliance with the
provisions of the statute which requires payment of gratuity within a period
of 30 days from the date of retirement.
5. Section 7(3)(a) of the Payment of Gratuity Act imposes an
obligation on the employer to pay gratuity within a period of 30 days and if
the gratuity is not paid within 30 days simple interest at such rate, not
exceeding the rate notified by the Central Government for long term
deposits should be paid. This being the statutory liability, the same cannot
be denied to the petitioner. Yet another circumstance which impel us to over
turn to the verdict of the writ Court is the order of the Division Bench dated
09.07.2018, wherein, the Division Bench has considered the delay in
payment of gratuity and has observed as follows:-
As liability of the Transport
Corporations, to pay interest, on the belated
payment of retirement benefits is confirmed,
keeping in mind the non-payment of interest for
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W.A.No.332 of 2020
several thousands of employees, we invoke the
doctrine of judgment in rem to other cases.
6. In view of the above pronouncement, we are of the opinion that
this judgmnet by itself would provide a cause of action for the petitioner to
demand payment of interest. If this judgment is taken as a cause of action to
demand payment of interest, the petitioner is well within time and the
petitioner cannot be blamed or non-suited on the ground of latches.
7. The writ appeal is therefore allowed and the writ petition will
stand allowed with a direction to the respondent to pay interest at 6% on the
gratuity amount from the date on which it fell due, i.e., 30 days after
retirement of the petitioner till the date on which it is actually paid. No
costs.
(R.S.M., J.) (S.S.K., J.)
04.01.2023
dsa
Internet :Yes
Index :No
Speaking order
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W.A.No.332 of 2020
To
1.Managing Director,
Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
No.3/137, Salamedu, Valudhareddy Post,
Villupuram – 605 602.
2.General Manager,
Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Kancheepuram Regional Office,
Chennai – Bengalaru Highway,
Karapettai, Kancheepuram – 631 552.
https://www.mhc.tn.gov.in/judis
W.A.No.332 of 2020
R.SUBRAMANIAN, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
dsa
W.A.No.332 of 2020
04.01.2023
https://www.mhc.tn.gov.in/judis
