Madras High Court
D.Subburaman vs The Management on 4 January, 2023
W.A.No.351 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.351 of 2020
D.Subburaman ...Appellant
Vs.
The Management,
Tamil Nadu State Transport Corporation
(Villupuram) Ltd.,
Villupuram Region,
Salamedu Villupuram,
Villupuram District – 605 602. ...Respondent
Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, to set aside
the order dated 03.10.2019 in W.P.No.28877 of 2019, allow the Writ Appeal
and consequently direct the respondent to pay interest for the belated
payment of gratuity and commutation of pension amount.
For Appellant : Mr.S.T.Varadarajulu
For Respondents : Mr.M.Aswin, Standing Counsel
1/6
https://www.mhc.tn.gov.in/judis
W.A.No.351 of 2020
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.
2. The Appellant joined the services of the Corporation in 1980 as
Clerk and was regularised on 26.11.1981. After rendering 32 years of
services he retired on 31.07.2012. His retirement benefits were not settled
immediately after his retirement. His Gratuity was paid on 09.05.2015 after
a delay of 32 months. The appellant therefore claimed that he is entitled to
interest for the delay period on the Gratuity.
3. Though the appellant accepted the principal amount without
protest, 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.
https://www.mhc.tn.gov.in/judis
W.A.No.351 of 2020
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.
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.
https://www.mhc.tn.gov.in/judis
W.A.No.351 of 2020
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.351 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.351 of 2020
R.SUBRAMANIAN, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
dsa
W.A.No.351 of 2020
04.01.2023
https://www.mhc.tn.gov.in/judis
