K.Subramani v. The Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 08.06.2023

CORAM:

THE HONOURABLE MR. JUSTICE M.S. RAMESH K.Subramani

...Petitioner

Vs 1.The Managing Director, Tamil Nadu State Transport Corporation (VPM) Ltd., Kancheepuram Region, No.3/137, Salamedu, Valudhareddy Post, Villupuram - 605 602.

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

...Respondents

PRAYER: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus directing the respondents to pay interest at 6% for the belated payment of terminal benefits namely the Gratuity, Encashment of leave salary, commutation of pension and RBS amount to the petitioner for the period from 31.07.2018 (the date of 1/4

retirement) till the date of payment, following the order passed in W.A.(MD) Nos.383 to 457 of 2015 dated 12.06.2015 and in C.M.P.No. 6352 of 2018 in W.A.No.665 of 2018 dated 13.07.2018. For Petitioner : Mr.V.S.Jagadeesan For Respondents : Mr.R.Venkatesa Perumal, Standing Counsel

ORDER

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

2. The petitioner herein, who was serving as a Selection Grade Driver under the respondent Corporation, had retired from service on 31.07.2018 on reaching the age of superannuation. However, his retirement benefits came to be settled only on 19.09.2019. The petitioner had given a representation on 09.05.2023, seeking for interest on the belated payment of the retirement benefits, which is yet to be considered.

3. This Court, in various decisions, have already taken a view that in all cases of belated payment of the terminal benefits, the concerned 2/4

employee would be entitled for interest at the rate of 4% per annum. In this background, this Court is of the view that the petitioner would be entitled for interest at the rate of 4% per annum on the belated payment of the terminal benefits.

4. In the light of the above observations, there shall be a direction to the first respondent herein to pay interest at the rate of 4% per annum on the belated payment of the terminal benefits to the petitioner, from the date of his retirement till the date of actual disbursement, i.e. between 31.07.2018 and 19.09.2019, within a period of four weeks from the date of receipt of a copy of this order.

5. With the above direction, the Writ Petition stands disposed of. No costs.

08.06.2023 Index:Yes/No Speaking order/Non-speaking order hvk 3/4

M.S.RAMESH,J.

hvk To 1.The Managing Director, Tamil Nadu State Transport Corporation (VPM) Ltd., Kancheepuram Region, No.3/137, Salamedu, Valudhareddy Post, Villupuram - 605 602.

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

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