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Madras High CourtWP/9365/2021disposed of

R.Narayanan v. The Managing Director

2021-04-17Honourable Mr Justice M. Govindaraj5 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 17.04.2021

CORAM

THE HONOURABLE MR.JUSTICE M.GOVINDARAJ WP NO.9365 OF 2021 1.R.Narayanan 2.V.Jayabalan 3.K.Arumugam 4.K.Raja 5.S.Loganathan 6.S.Pachaiyappan 7.P.Janagiraman 8.S.Lakshmanan 9.D.Thirunavukarasu 10.K.Suresh 11.R.Kumarasamy 12.S.Dayalan 13.R.Sankar 14.A.Murugan 15.E.Karthikeyagan 16.R.Latchapathy 17.S.Jayapal 18.K.Pannerselvam ..Petitioners

Versus

1.The Managing Director Tamil Nadu State Transport Corporation (Villupuram) Ltd., Salamedu, Villupram Villuparm District-605 602 2.The General Manager Tamil Nadu State Transport Corporation (Villupuram-III) Ltd., Thiruvannamalai Region Bye pass road, Vengikkal Thiruvannamalai District-606 604 3.The Administrator Tamil Nadu State Transport Corporation Employees Pension Fund Trust Pallavan Salai, Chennai - 600 002.

..Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the respondents to pay interest @ 10% for the belated payment of gratuity, leave salary and commutation of pension amount to the petitioners.

For Petitioner :

Mr.S.T.Varadarajalu For Respondents :

Mr.C.S.K.Sathish Standing Counsel

O R D E R

Mr.C.S.K.Sathish, learned Standing Counsel, takes notice on behalf of the respondents. By consent,the Writ Petition is taken up for final disposal at the admission stage itself. 2.This Writ Petition has been filed by the petitioners seeking for a direction to the respondents to pay interest @ 10% for the belated payment of gratuity, leave salary and commutation of pension amount to the petitioners. 3.The petitioners have joined the services of the respondent / Transport Corporation as Conductors and Drivers. Subsequently, they were promoted in various categories and retired on various dates. On the date of their retirement the Provident Fund amount alone was settled to them and the other retiral benefits viz., commutation of pension, service gratuity and leave salary were

paid on the following dates. The details of post held, date of retirement and the date of benefits paid to them are given below: Date of terminal benefit paid Sl.

No.

Name Post held and date of retirement R.Narayanan Spl.Grade Conductor30.06.2017 25.05.2018 V.Jayabalan Traffic Inspector30.06.2017 07.12.2017 K.Arumugam Checking Inspector30.06.2017 07.12.2017 4.

K.Raja Foreman-30.06.2017 07.12.2017 5.

S.Loganathan Traffic Inspector30.04.2017 07.08.2017 6.

S.Pachaiyappa n Traffic Inspector20.02.2017 16.06.2017 7.

P.Janagiraman Gardener30.04.2018 19.09.2019 8.

S.Lakshmanan Checking Inspector30.09.2019 24.01.2021 9.

D.Thirunavuka rasu Checking Inspector30.04.2019 24.01.2021 K.Suresh Driver-31.05.2019 24.01.2021 R.Kumarasamy Driver-30.06.2019 24.01.2021 S.Dayalan Driver-31.12.2019 24.01.2021 R.Sankar Conductor30.04.2019 24.01.2021 B.Murugan Driver-30.04.2019 24.01.2021 E.Karthikeyag an Driver-31.07.2019 24.01.2021 R.Latchapathy Conductor31.07.2019 24.01.2021 S.Jayagopal Driver-31.10.2019 24.01.2021

Date of terminal benefit paid Sl.

No.

Name Post held and date of retirement K.Pannerselva m Conductor30.06.2017 07.12.2017 Seeking interest for the belated payment of retiral benefits, the petitioners are before this Court.

4.Heard the submissions made on either side.

5.It is well settled in very many cases that the employee is entitled to interest for the belated payment of his retiral benefits. A Division Bench of this Court in GOVERNMENT OF TAMIL NADU, REP. BY ITS SECRETARY TO GOVERNMENT, REVENUE DEPARTMENT VS. M.DEIVASIGAMANI [2009 (3) MLJ 01] has held that the employee is entitled to interest on belated payment of pension and other retiral benefits, even in the absence of statutory rules / administrative instructions or guidelines and that he can claim interest under Part III of the Constitution, relying on Articles 14, 19 and 21 of the Constitution.

6.In a similar circumstance, the First Bench of this Court in W.A.(MD) Nos.383 to 457 of 2015 on 12.06.2015, directed the respondent / Transport Corporation to settle the terminal benefits of its employees in equal monthly installments and to pay 6% interest on the terminal benefits payable to the workman. It has also held that the workman is entitled to 18% interest for the defaulted period of installments.

7.Following the above judgments, a learned Single Judge of this Court in W.P.No.15886 of 2020 on 19.01.2021, directed the respondent/ Transport Corporation to pay interest @ 6% per annum, for the belated payment of gratuity and other retiral benefits.

8.Considering the facts and circumstances of the case and also considering the period of delay, this Court is inclined to grant interest @ 4% per annum, for the belated payment of gratuity, leave salary and commutation of pension amount that are yet to be settled, in six equal monthly installments, commencing from 01.06.2021. In case of delay in making installments within the time stipulated supra, the interest payable could be 10% for the delayed period to be recovered from the Officer responsible for disbursement of the amount. 9.It is made clear that the aforesaid direction to pay interest would not preclude the petitioners / workmen to question the computation of any of the terminal benefits, if the

same is paid lesser than the amount to which, they are entitled to receive. Likewise, if the petitioners have any grievance that they are entitled to interest for the amount already settled, they can agitate the same as per law, if they are entitled. 10.The Writ Petition is disposed of with the above observation and direction. No costs.

Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar Kpr To

1. The Managing Director Tamil Nadu State Transport Corporation (Villupuram) Ltd., Salamedu, Villupram Villuparm District-605 602

2. The General Manager Tamil Nadu State Transport Corporation (Villupuram-III) Ltd., Thiruvannamalai Region Bye pass road, Vengikkal Thiruvannamalai District-606 604

3. The Administrator Tamil Nadu State Transport Corporation Employees Pension Fund Trust Pallavan Salai, Chennai - 600 002.

+1cc to Mr.S.T.Varadarajulu, Advocate, S.R.No.23465/21 +1cc to Mr.C.S.K.Sathish, Advocate, S.R.No.23446/21 W.P.No.9365 OF 2021 JPL(CO) RGA(29/07/2021)