P. Arthanari v. Tamilnadu State Transport Corporation(Salem) Ltd.,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 27.06.2022
CORAM
THE HONOURABLE MR.JUSTICE D.KRISHNAKUMAR P. Arthanari
...Petitioner
Vs.
1. Tamil Nadu State Transport Corporation (Salem) Ltd., Represented by its Managing Director, No. 12, Ramakrishna Road, Salem -7.
2. Tamil Nadu State Transport Corporations Employees' Pension Fund Trust Represented by its Administrator, Thiruvalluvar Illam, Pallavan Salai, Chennai - 600 002.
...Respondents
Writ Petition filed under Article 226 of the Constitution of India, for the issuance of a writ of Mandamus, directing the respondents to pay the petitioner interest at the rate of 12 % per annum for the belated payment of his earned leave salary and commuted value of pension, to pay him wages towards 30 days of earned leaves surrendered by the petitioner, while he was in service; to settle the amounts payable under the Social Security Scheme, Family Benefit Fund, IRT Contributions and to refund of contributions under the post retirement benefit Scheme, together with interest at the rate of 12 % within a specified time fixed by this Court.
For Petitioner : Mr. V. Porkodi For Respondent : Mr. K. Raja for Transport Corporation 1/6
ORDER
The relief sought for in the writ petition is for a Mandamus directing the directing the respondents to pay the petitioner interest at the rate of 12 % per annum for the belated payment of his earned leave salary and commuted value of pension, to pay him wages towards 30 days of earned leaves surrendered by the petitioner, while he was in service; to settle the amounts payable under the Social Security Scheme, Family Benefit Fund, IRT Contributions and to refund of contributions under the post retirement benefit Scheme, together with interest at the rate of 12 % within a specified time fixed by this Court.
2. Heard the learned Counsel appearing for the petitioner and the learned Counsels appearing for the respondents.
3. The petitioner was working as Conductor, under the respondent Transport Corporation and he retired from service on 31.01.2018, on attaining the age of superannuation. At the time of retirement, he was working as Traffic Inspector. But, the respondents have settled the retirement benefits to the petitioner belatedly, without any interest and also not paid wages towards 30 days of earned leave surrendered by him. Hence, he made a representation on 10.03.2022 to pay interest for the belated payment and payment of wages 2/6
towards surrender of earned leave, but the respondents has neither given reply nor paid the same. Hence, he has filed the instant writ petition before this Court.
4. The learned counsel appearing for the petitioner submitted that, the respondents have settled the retirement benefits to the petitioner without any interest, and the respondents have also not paid 30 days of earned leave surrendered by the petitioner and despite requests made by him, the respondents did not pay interest for the belated payment of retirement benefits and the earned leave surrendered by him. He has also relied on a decision of the Hon'ble Division Bench of this Court in W.A.(MD)No.383 to 457 of 2015, dated 12.06.2015, wherein the Hon'ble Division Bench of this Court has fixed the rate of interest at 6% per annum for the belated payment of retirement benefits, on the same line, orders may be issued in the present writ petition.
5. The learned Standing Counsel appearing for the respondents fairly accepted the fact that the respondent Corporation have settled the retirement benefits to the petitioner belatedly. He also submitted that the petitioner is entitled for interest only at the rate of 4% per annum for the belated payment. 3/6
6. The learned Standing Counsel appearing for the respondents further submitted that the respondents will consider the petitioner's representation dated 10.03.2022 with regard to payment of wages towards 30 days of earned leave surrendered by him.
7. In view of the above submissions and with the consent of both parties, insofar as for payment of interest is concerned, there shall be a direction to the respondents to pay penal interest at the rate of 4% per annum for the belated payment of retirement benefits to the petitioner, within a period of twelve weeks from the date of receipt of a copy of this order, subject to the condition that if the petitioner has not already given up their right for claiming interest for the retirement benefits. It is also made clear that in default, the respondentCorporation shall have to pay the interest amount at the rate of 6% per annum to the petitioner and insofar as payment of wages towards 30 days of earned leave surrendered by the petitioner is concerned, the respondents are directed to consider the representation of the petitioner dated 10.03.2022 and pass appropriate orders within a period of twelve (12) weeks from the date of receipt of a copy of this order.
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8. With the above directions, the writ petition is disposed of. No costs. 27.06.2022 Index : Yes / No Internet : Yes/ No mrn To
1. The Managing Director Tamil Nadu State Transport Corporation (Salem) Ltd., No. 12, Ramakrishna Road, Salem -7.
2. The Administrator, Tamil Nadu State Transport Corporations Employees' Pension Fund Trust Thiruvalluvar Illam, Pallavan Salai, Chennai - 600 002 5/6
D.KRISHNAKUMAR, J.
(mrn) 27.06.2022 6/6