S.Vijayakumar v. The Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 10.08.2021

CORAM:

THE HONOURABLE MR.JUSTICE A.A.NAKKIRAN W.P.No.16535 of 2021 [Video Conferencing] S. Vijayakumar ... Petitioner Vs.

The Managing Director, Metropolitan Transport Corporation, (Chennai ) Ltd., Pallavan House, Chennai - 600 002.

... Respondent Prayer:- Writ Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the respondent to pay the petitioner a sum of Rs.2,46,268/- towards interest for the belated payment of terminal benefits such as PF, Gratuity and Leave Salary. For Petitioner :

Mr.S.T. Varadarajulu For Respondent :

Mr.Stephen Raj for Mr.Moorthy Standing Counsel for Metropolitan Transport Corporation

ORDER

With the consent of both parties, this Writ Petition is taken up for final disposal at the admission stage itself.

2. Mr.Moorthy, learned Standing Counsel for Metropolitan Transport Corporation, takes notice for the respondent.

3. The petitioner herein, who retired from the service of the Respondent Corporation on reaching the age of superannuation, have come up with the above Writ Petition, seeking a direction directing the respondent to pay the

petitioner a sum of Rs.2,46,268/- towards interest for the belated payment of terminal benefits such as PF, Gratuity and Leave Salary.

4. Heard the learned counsel on either side and perused the material documents available on record.

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 terminal benefits such as Provident Fund, Gratuity and Leave Salary amount that are yet to be settled, in four equal monthly installments, commencing from 01.10.2021. 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 petitioner / workman to question the computation of any of the terminal benefits, if the same is paid lesser than the amount to which, he is entitled to receive. Likewise, if the petitioner has any grievance that he is entitled to interest for the amount already settled, he can agitate the same as per law, if he is entitled.

10. The Writ Petition is disposed of with the above observation and direction. No costs.

Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar gv To The Managing Director, Metropolitan Transport Corporation, (Chennai ) Ltd., Pallavan House, Chennai - 600 002.

+1cc to M/s.K.Moorthy, Advocate (SR No.39383) +1cc to M/s.ST.Varadarajulu, Advocate (SR No.39564) W.P.No.16535 of 2021 VSNII (CO) PR (17/08/2021)