J.Sankaran vs The Managing Director
2023 Latest Caselaw 3547 Mad

                                                                             W.P.No.10098 of 2023

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                                     DATED : 31.03.2023
                                                           CORAM
                          THE HON'BLE JUSTICE MRS.V.BHAVANI SUBBAROYAN

                                                     W.P.No. 10098 of 2023


                  J.Sankaran                                                          ... Petitioner

                                                            Versus

                  The Managing Director,
                  Tamil Nadu State Transport Corporation
                  Villupuram Ltd, Vazhudha Reddy Salai,
                  Villupuram District – 605 602.                                    ... Respondent


                  PRAYER: Writ Petition is filed under Article 226 of the Constitution of
                  India, prays to issue a Writ of Mandamus, directing the respondent to settle
                  one time payment of the entire retirement benefits of the petitioner i.e.
                  Provident fund, Gratuity, Commutation Fund, Leave Encashment, College
                  Fund, SSS Fund and other attendant benefits and enhanced dearness
                  allowances along with 18 percent interest on delayed payment from
                  31.01.2023 to till the date of disbursement of the terminal benefits to the
                  petitioner.

                                    For Petitioner       : Mr.R.Y.George Williams

                                    For Respondent       : Mr.Venkatesaperumal
                                                           Standing Counsel


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https://www.mhc.tn.gov.in/judis
                                                                           W.P.No.10098 of 2023




                                                      ORDER

The writ petition has been filed to direct the respondent to settle one

time payment of the entire retirement benefits of the petitioner i.e. Provident

fund, Gratuity, Commutation Fund, Leave Encashment, College Fund, SSS

Fund and other attendant benefits and enhanced dearness allowances along

with 18 percent interest on delayed payment from 31.01.2023 to till the date

of disbursement of the terminal benefits to the petitioner.

2. The learned Counsel for the petitioner would submit that the

petitioner joined in the service of the respondent's corporation as Conductor

on 18.08.1997 and continued to work upto 31.01.2023 and retired from

service on attainment of superannuation after completion of 25 years of

service. It is his contention that after his retirement, the respondent

corporation had not disbursed the terminal benefits till date. Further, the

respondent corporation had paid the Provident Fund amount only but had not

settled the other terminal benefits. The terminal benefits as on the date of

retirement after taking into the account of the enhanced dearness allowances

https://www.mhc.tn.gov.in/judis W.P.No.10098 of 2023

are Provident Fund, Gratuity, Commutation Fund, Leave Encashment,

College Fund and SSS fund. Further, as per the provisions of Payment of

Gratuity, the gratuity becomes payable on the date of superannuation or on

the date of retirement of the employer. In this case, inspite of retirement on

31.01.2023, the respondent corporation has not disbursed the retirement

benefits. He would submit that the Hon'ble Apex Court has also held in many

judgments that if the employer is unable to disburse the terminal benefits

then in such case, the employer has to pay the interest at the rate of 18 %

calculated from the date of retirement and date of payment for the belated

disbursement of terminal benefits.

3. He would also submit that due to non disbursement of his terminal

benefits, the petitioner made a representation on 06.02.2023 to the

respondent Corporation and requested to pay the terminal benefits. However,

since no action was taken on the part of the respondent Corporation till date,

the petitioner is constrained to file this present Writ Petition before this

Court. Hence, he seeks direction to disburse the retirement benefits after

duly taking into account the enhanced dearness allowances to the petitioner

to till the retirement benefits are paid and with interest at the rate of 18% for

https://www.mhc.tn.gov.in/judis W.P.No.10098 of 2023

delayed payment of retirement benefits to the petitioner.

4. The learned Standing Counsel appearing for the respondent

Corporation submitted that the representation given by the petitioner would

be considered by the authorities concerned and appropriate orders would be

passed on its own merits and in accordance with law.

5. Heard the learned counsel for the petitioner and the learned

Standing Counsel for the respondents corporation.

6. In view of the above facts and circumstances of the case, this Court

is of the view that so far, the respondent had settled the retirement benefits to

persons who have retired on or before November 2022. The persons, who

have retired after November 2022, they have to pay the same as per the

seniority of retirement. The respondent Corporation is directed to consider

the petitioner's representation dated 06.02.2023 as per the seniority of

settlement and pass appropriate orders on its own merits and in accordance

with law, as early as possible, within a period of eight weeks from the date of

receipt of a copy of this order.

https://www.mhc.tn.gov.in/judis W.P.No.10098 of 2023

7. With the above direction, this writ petition is disposed of. No order

as to costs.

31.03.2023

Index: Yes/ No nr

To

The Managing Director, Tamil Nadu State Transport Corporation (Villupuram Ltd, Vazhudha Reddy Salai, Villupuram District – 605 602.

https://www.mhc.tn.gov.in/judis W.P.No.10098 of 2023

V.BHAVANI SUBBAROYAN, J.

nr

W.P.No.10098 of 2023

31.03.2023

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