Madras High CourtWP/18125/2021disposed of

C.Amalraj v. Tamil Nadu State Transport

2021-12-10Honourable Mr Justice V. Parthiban6 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED:10.12.2021

CORAM

THE HON'BLE MR. JUSTICE V.PARTHIBAN W.P.Nos.18125, 18127, 18132, 18136, 18138, 18140, 18143, 18181 & 18184 of 2021 C.AMALRAJ ... PETITIONER in WP No.18125 of 2021 R.PARAMASIVAM ... PETITIONER in WP No.18127 of 2021 R.THIRUMOORTHY ... PETITIONER in WP No.18132 of 2021 P.THANGARAJU ... PETITIONER in WP No.18136 of 2021 P.SUBRAMANIAM ... PETITIONER in WP No.18138 of 2021 P.KANAGARAJ ... PETITIONER in WP No.18140 of 2021 R.ANBALAGAN ... PETITIONER in WP No.18143 of 2021 K.Sundararajan ... PETITIONER in WP No.18181 of 2021 K.VARUDARAJU ... PETITIONER in WP No.18184 of 2021 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 in all Writ Petitions

WP No.18125 of 2021:

India praying to issue a writ of Mandamus directing the respondents to pay the petitioner interest at the rate of 6% per annum for the belated payment of his PF, gratuity, commuted

value of pension and earned leave salary, to pay him wages towards 45 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 6%, within a specified time as may be fixed by this Hon'ble Court. WP No.18127 of 2021:

percent per annum for the belated payment of his PF, gratuity, commuted value of pension and earned leave salary, 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 6 percent within a specified time, as may be fixed by this Honourable Court.

WP No.18132 of 2021:

WP No.18136 of 2021:

WP No.18138 of 2021:

WP No.18140 of 2021:

WP No.18143 of 2021:

WP No.18181 of 2021:

percent per annum for the belated payment of his PF, gratuity and earned leave salary, 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 6 percent within a specified time, as may be fixed by this Honourable Court.

WP No.18184 of 2021:

percent per annum for the belated payment of his PF, Gratuity and Earned Leave Salary, 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 6 percent within a specified time, as may be fixed by this Honourable Court.

For Petitioners :

Mr.V.Ajay Khose (In all W.Ps.) For Respondents :

Mr.Rajeni Ramadoss Standing counsel (In all W.Ps.) COMMON ORDER In all these writ petitions, the prayer is for the grant of interest for the belated settlement of retirement benefits like P.F, Gratuity, and encashment of Earned Leave/sick leave etc. As a matter of fact, this Court, both Single Judges and Division Benches dealt with such prayer earlier for payment of interest for the belated settlement of retirement benefits to the retired transport employees.

2.The Courts have been granting payment of interest @ 4% or 6% as the case may be. In some cases, the Division Bench of this Court has granted 6% interest and in few other cases this Court has granted 4% interest. On the whole, this Court finds that, there is no consensus as to whether 4% or 6% to be granted in such matters where the employees have been settled their retirement benefits belatedly due to resource crunch faced by the State Corporation.

3. Today, when this batch of writ petitions have been taken up for hearing, there was a clamour for claiming higher interest of 6 percent and it was also opposed by the counsels who are

representing the corporations. According to them in a recent decision of the learned Judge of this Court in W.P.No.23229 of 2021 dated 28.10.2021, after taking into account the various earlier orders, has granted only 4 percent interest. Per contra, the learned counsel Mr.Ajay khoshe would rely on a decision of the Division Bench of this Court in W.A.(MD).No.1349 & 1350 of 2021 dated 12.07.2021, wherein there was a direction to pay 6% interest. A learned Judge of this Court following the above Division Bench Judgment in Writ Appeal No.1349 & 1350 of 2021, in a batch of Writ Petitions in W.P.Nos.15636, 15640, 15647, 15651, 15654 & 15656 of 2021 dated 29.07.2021 has once again granted 6% interest for the delayed payments. One other learned Judge of this Court vide order dated 02.07.2021 in W.P.No.10553 of 2021 has ordered 6% interest.

Therefore, learned counsels appearing on behalf of the petitioners would pray for 6% interest as majority of the judges have granted the same. 4.At this learned counsels representing the Corporation uniformly submitted that already the Corporations have suffered huge losses due to Covid-19 situation prevailing in State for more than 20 months. The Corporations would be unable to mobilize and come up with funds to pay 6% interest. The Corporations are already facing severe financial strain, and unable to sustain itself and any further increase in the percentage of interest to be paid to the employees, it would result in severe financial burden on the corporation, which the Corporations would be unable to bear. The Corporations would also have to take into consideration the serving employees and the retiring employees also in future.

Therefore, a passionate request has been made before this Court for grant of 4% interest which should be reasonable and fair to compensate belated payments made to the retired employees.

5. In consideration of the request emanating from the learned Standing counsels for the Corporations, which appear to this Court to be fair and reasonable considering the weak financial position of the Corporations, this Court persuaded the learned counsels appearing for the petitioners to accept 4% interest. All the counsels who are representing the parties today have uniformly accepted 4% interest to be payable on the belated payments made to the petitioners. During the course of argument it is also agreed by all the counsels of the corporation that the 4% interest payable would be settled in one lump-sum, if 8 weeks time is granted to the Corporation. 6.In view of the consensus being reached by the parties, these writ petitions are disposed of with the following directions;

The Corporation is directed to pay 4% interest to all the employees who have been settled belatedly

their retirement benefits within a period of 8 weeks from the receipt of copy of order of this Court. In case, some of the employees who have not been settled their portion of the retirement benefits as such are also entitled to be paid 4% interest till they receive the actual retirement benefits in full.

Those payments would also carry 4% till the date it is fully released by the corporation. The interest of 4% would cover the period of 8 weeks from the date of receipt of copy of this order.

Any further default of the payments by the corporation, the interest would be enhanced to 6 percent after the expiry of 8 weeks of period of time and such percentage would become payable till the entire amounts are settled to the employees concerned. 7.All the Writ Petitions stand disposed of accordingly. No costs.

Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant Registrar mrm/tri To

1. The Managing Director, Tamil Nadu State Transport Corporation (Salem) Ltd., 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.

+8ccs to Mr.V.Ajoy Khose, Advocate, S.R.Nos.66006 to 66010 & 66014, 66015, 66017 W.P.Nos.18125, 18127, 18132, 18136, 18138, 18140, 18143, 18184 & 18181 of 2021 SMI(CO) SU(12/01/2022)