M.Balakrishna Kumar v. The Tamil Nadu State Transport Corporation Ltd.,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 29.07.2021
CORAM:
THE HONOURABLE Mr. JUSTICE S.S.SUNDAR W.P. No.15730/2021 1.M.Balakrishna Kumar 2.Vadivel
...Petitioners
Versus
1. The Tamil Nadu State Transport Corporation Ltd Coimbatore Division I, rep.by its Managing Director, No.37, Mettupalayam Road, Coimbatore.
2. The Administrator Tamil Nadu Pension Trust Pallavan Salai, Chennai.
...Respondents
Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Mandamus directing the 1st respondent herein to pay interest for the delayed payments made to the petitioner in respect of Gratuity, Commutation, Provident Fund and Earned Leave etc.
For Petitioner : Mr.D.Anand Raja For Respondents : Mr.Sundaravadhanam Standing Counsel
ORDER
(1) The writ petition is filed by the relieved employees of the 1st respondent Corporation for issuance of a writ of mandamus directing the respondents to pay interest for the delayed payment of Provident Fund, Gratuity, Commutation and Earned Leave.
(2) Mr.Sundaravadhanam, learned Standing counsel accepts notice on behalf of the respondents.
(3) In similar cases, this Court has recently reduced interest at 4% per annum for the delayed payment. It is admitted that the petitioners are entitled to terminal benefits and there is delay in settlement of terminal benefits namely Provident Fund, Gratuity, Commutation and Earned Leave. This Court uniformly has recognised the petitioners' https://hcservices.ecourts.gov.in/hcservices/
entitlement to interest. Though interest @ 6% was granted earlier, the Courts have subsequently reduced the rate of interest from 6% to 4% considering the difficulties of the Transport Corporation during Covid Pandemic.
(4) This Court is inclined to dispose of these writ petitions with the following direction:
The respondent Transport Corporation is directed to pay interest @ 4% per annum for the delayed payment of Provident Fund, Gratuity, Earned Leave and Commutation of Pension. The amount calculated towards interest should be paid in six monthly instalments commencing from 01.09.2021. In case of any further delay in paying instalments within the time stipulated by this order, the interest payable will be @ 6% for the delayed payment. If there is any dispute with regard to quantum, the parties are at liberty to workout their remedy independently and if there is a delay in payment beyond one year, then the petitioners are liberty to approach this Court for higher rate of interest.
(5) Accordingly, the writ petition stands disposed of. No costs.
Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar AP To
1. The Managing Director, Tamil Nadu State Transport Corporation ltd., Coimbatore Division I No.37, Mettupalayam Road, Coimbatore.
2. The Administrator Tamil Nadu Pension Trust Pallavan Salai, Chennai.
+1 CC to M/s.D.Anandraj, Advocate, Sr.No. 36652. W.P. No.15730/2021 PMK(CO) LS(24/08/2021) https://hcservices.ecourts.gov.in/hcservices/