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Madras High CourtWP/20931/2019disposed of

T.Marudhavanan, v. The Principal Secretary

2021-12-22Honourable Mr Justice V. Parthiban5 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 22.12.2021

CORAM

THE HONOURABLE MR.JUSTICE V.PARTHIBAN W.P.Nos.20931 of 2019 and 17203 and 18419 of 2020 W.P.No.20931 of 2019 T.Marudhavanan ... Petitioner -Vs.- Fort.St.George, Chennai - 600 009.

Tamil Nadu State Transport Corporation (VPM) Ltd, 3/137 Salamedu, Valuthareddy-Post, Villupuram-605 602.

Pension Fund Trust, Thiruvalluvar-House, Pallavan Salai, Chennai - 600 002.

.. Respondents Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the 2nd and 3rd respondents to disburse the retirement benefits, viz., Earned Leave Surrender Salary Amount of Rs.5,92,404/-, Gratuity Amount of Rs.9,62,753/-, Pension Commutation Amount of Rs.8,39,276/-, Provident Fund Contribution Amount of Rs.5,664/-, Post Retirement Benefit Fund Amount of Rs.18,500/- the total comes to Rs.24,18,597/- (Rupees Twenty Four Lakhs Eighteen Thousand and Five Hundred Ninety Seven Only) with 18% interest on delayed payment to the petitioner the Superintendent who has retired from service on 31.05.2018.

W.P.No.17203 of 2020 Gurunathan ... Petitioner

-Vs.- Secretariat, Chennai-600 009.

Metropolitan Transport Corporation (Chennai) Ltd, Anna Salai, Chennai-600 002.

Pension Fund Trust, Thiruvalluvar House, Pallavan Salai, Chennai 600 002.

.. Respondents Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus directing the 2nd and 3rd respondents to pay interest at the rate of 18% per annum for the belated payment of retirement benefits as per the representation dated 30.09.2019, 01.10.2019 and 22.10.2019 within the time limit that may be fixed by this Hon'ble Court. W.P.No.18419 of 2020 Pandian ... Petitioner -Vs.- Secretariat, Chennai-600 009.

Metropolitan Transport Corporation (Chennai) Ltd, Anna Salai, Chennai 600 002.

.. Respondents Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the 2nd respondent to pay interest at the rate of 18% per annum for the belated payment of retirement benefits as per the representation dated 30.09.2019, 01.10.2019 within the time limit that may be fixed by this Hon'ble Court.

For Petitioner in all WPs : Mr.D.Veerasekharan For R1 in all WPs : Mr.L.S.M.Hasan Fizal, Additional Government Pleader

For R2 & R3 in W.P.20931 of 2019 : Mr.G.Saravana Kumar For R2 & R3 in W.P.No.17203 & for R2 in W.P.No.18419 of 2020 : Mr.K.Moorthy.

****** C O M M O N O R D E R In these writ petitions, the prayers are 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 these 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.D.Veerasekharan 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 counsel 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 Corporations 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% 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. These Writ Petitions stand disposed of accordingly. No costs.

Sd/- Assistant Registrar(CS-VII) // True Copy // Sub Assistant Registrar ms To Secretariat, Fort.St.George, Chennai - 600 009.

Tamil Nadu State Transport Corporation (VPM) Ltd, 3/137 Salamedu, Valuthareddy-Post, Villupuram-605 602.

Pension Fund Trust, Thiruvalluvar-House, Pallavan Salai, Chennai - 600 002.

4.The Managing Director, Metropolitan Transport Corporation (Chennai) Ltd, Anna Salai, Chennai-600 002.

+3cc to Mr.D.Veerasekaran, Advocate SR.No.69004 +3cc to Mr.K.Moorthy, Advocate SR.No.69104, 69105 & 69106 +1cc to Mr.G.Saravanakumar, Advocate, SR.No.69491 +1cc to the Government Pleader, SR.No.69837 W.P.Nos.20931 of 2019 and 17203 &18419 of 2020 GJ(CO) CB(10/01/2022)