The Madras High Court observed that the petitioner was entitled to get the surrender leave salary with the Interest rate of 6% and ordered respondent to disburse the salary in monthly instalments.
“The respondents herein to settle the surrender leave salary for 64 days, in respect of the years claimed together with interest at the rate of 6% per annum from the date of retirement till the date of actual disbursement.”
The above observation was made by the Single-judge bench of Madras High Court, comprising of the Justice M. S. Ramesh while dealing with the Writ petition filed under Article 226 of the Constitution of India to issue a writ of mandamus, directing the respondents to settle the petitioner's surrender leave salary for 64 days in respect of the years 2011-2012, 2012-2013, 2013-2014, 2014-2015, 2015-2016, 2016-2017, 2017-2018 and 2018-2019 together with interest at the rate of 18% per annum payable from the date of retirement to till the date of actual payment.
Factual Background
The Petitioner was an employee in Tamil Nadu State Transport Corporation. He was retired from the department and got all the claims and benefit which retired people get. The Surrender leave salary was left to be paid. The Petitioner demanded for the Surrender leave salary. Therefore this petition was filed before this Court.
Contention of the Petitioner
The Counsel on the behalf of the petitioner states that after the retirement of the petitioner, the respondents have not settled the surrender leave salary and therefore, he claims the disbursement of the same together with interest of 18%.
Contention of the Respondent
The Counsel on the behalf of Respondent submitted that in many cases the Court had ordered for payment of earned leave salary, but have not granted interest and therefore, he submitted that the interest need not be paid for non surrender of earned leave.
Court Reasoning & Judgment
The Court laid emphasis on the case of S. Alagesan v. The Managing Director, Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., and another in which Single –judge Bench of this Court held that:
“An identical issue came up for consideration before the Division Bench of this Court in W.A (MD) No.210 of 2019 and the Hon'ble Division Bench by judgment dated 04.09.2019 had upheld the view of the learned Single Judge against which the writ petition came to be filed and also rejected the Corporation plea that the employee had not claimed the encashment of the surrender leave within the stipulated time. This Court is of the view that the petitioner would be entitled to claim salary for the surrendered leave.”
Relying on the above judgment, the Court held that Respondent was ordered to disburse the Surrender leave salary with the interest of 6% from the date of retirement till the date of actual disbursement. The Court also instructed that:
“The respondents shall be entitled to disburse the surrender leave salary in six Equal Monthly Installments and the 1st Installment shall commence from 1st of April 2021.”
The Bench allowed the petition and instructed the respondent accordingly.
Case Details
Case: W.P.(MD) No.5111 of 2021
Petitioner: R.Karuthapandian
Respondent: The Managing Director, Tamil Nadu State Transport Corporation (Kumbakonam)
Limited & Ors.
Counsels for the Petitioner : Mr.K.Gokul
Counsels for the Respondents: Mr.P.Balasubramanian
Quorum: Justice M. S. Ramesh
Read Order@LatestLaws.com
Share this Document :Picture Source :
