M.Madurai v. The Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 23.06.2023

CORAM:

THE HONOURABLE MR. JUSTICE M.S. RAMESH M.Madurai

...Petitioner

Vs 1.The Managing Director, Tamil Nadu State Transport Corporation (Villupuram) Ltd., Vazhuthareddy Post, Salamedu, Villupuram - 605 602.

2.The General Manager, Tamil Nadu State Transport Corporation (Villupuram) Ltd., Kancheepuram Region, Kancheepuram - 631 501.

...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 for the belated payment of Gratuity interest at the rate of 6% p.a. For Petitioner : Mr.N.Desinghu For Respondents : Mr.R.Venkatesa Perumal, Standing Counsel 1/4

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 Senior Tradesman under the respondent Corporation, had retired from service on 30.04.2011 on reaching the age of superannuation. However, his gratuity amount came to be settled belatedly only on 05.09.2012. The petitioner had given a representation to the first respondent on 22.09.2018, seeking for interest on the belated payment of the gratuity amount, 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 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.

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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 gratuity amount to the petitioner, from the date of his retirement till the date of actual disbursement, i.e., between 30.04.2011 and 05.09.2012, 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.

23.06.2023 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 (Villupuram) Ltd., Vazhuthareddy Post, Salamedu, Villupuram - 605 602.

2.The General Manager, Tamil Nadu State Transport Corporation (Villupuram) Ltd., Kancheepuram Region, Kancheepuram - 631 501.

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