A.P.Kamaraju v. M/S. Metropolitan Transport Corporation
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:04.02.2022
CORAM
THE HON'BLE Mr. JUSTICE V.PARTHIBAN W.P.Nos.19542 & 19546 of 2020; 24606 & 24608 of 2021 1.A.P.Kamaraju
...Petitioner in W.P.No.19542/2020
2.S.Ravanan
...Petitioner in W.P.No.19546/2020
3.Mrs.M.O.Mary Chacko
...Petitioner in W.P.No.24606/2021
4.R.Manimozhi
...Petitioner in W.P.No.24608/2021
Vs.
M/s.Metropolitan Transport Corporation, Represented by its Managing Director, No.1, Pallavan Salai, Chennai - 600 002.
...Respondent in W.P.Nos.
19542 & 19546 of 2020 1.M/s.Metropolitan Transport Corporation, Represented by its Managing Director, No.1, Pallavan Salai, Chennai - 600 002.
2.M/s.Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, Rep by its Administrator, No.2, Pallvana Salai, Chennai - 600 002.
...Respondents in W.P.Nos.
24606 & 24608 of 2021 Prayer in W.P.No.19542/2020: Writ Petitions filed under article 226 of the Constitution of India prayed to issue a writ of Mandamus directing the respondent directing the respondent to settle a sum of Rs.12,00,000/- towards Gratuity, a sum of Rs.8,00,000/- towards Commutation of 1/3rd pension amount, a sum of Rs.1,92,000/- towards leave salary, a sum of Rs.8,00,000/- towards provident fund, a sum of Rs.4,500/- towards refund of EEC and EMC deposit and a sum of Rs.25,000/- towards surrender of 15 days Earned leave during 2017 with 6% interest by considering the representation of the petitioner dated 05.11.2020 in the light of the orders passed by this Hon'ble Court in W.P.No. 41605 and
41606 of 2016 dated 28.11.2016.
Prayer in W.P.No.19546/2020:
Writ Petition filed under Art 226 of the Constitution of India prayed to issue a writ of Mandamus or any other appropriate writ or direction in the nature of Writ, directing the Respondent to settle a sum of Rs.11,00,000/-towards Gratuity, a sum of Rs.7,50,000/-towards Commutation of 1/3rd Pension amount and a sum of Rs.48,000/-towards Leave Salary, a sum of Rs.8,00,000/-towards Provident Fund and a sum of Rs.4,500/-towards refund of EEC and EMC deposit with 6% interest by considering the representation of the petitioner dated 14.10.2020 in the light of the orders passed by this Hon'ble Court in W.P.No.41605 and 41606 of 2016 dated 28.11.2016.
Prayer in W.P.No.24606/2021: Writ Petitions filed under article 226 of the Constitution of India prayed to issue a writ of Mandamus directing the respondents herein to settle a sum of Rs.3,79,728/- to the petitioner herein towards interest for the belated settlement of Service Gratuity and other Terminal benefits by considering the representation of the petitioner dated 30.09.2021.
Prayer in W.P.No.24605/2021:
Writ Petition filed under Article 226 of the Constitution of India prayed issue a Writ of Mandamus or any other appropriate writ or direction in the nature of Writ directing the respondents herein to settle a sum of Rs.5,05,504/- to the petitioner herein towards interest for the belated settlement of Service Gratuity and other Terminal Benefits by considering the representation of the petitioner dated 04.10.2021.
For Petitioner .. Mr.D.Soundar raj (in all the Wps) For Respondents .. Mr.K.Moorthy (for R.1) (in all the WPs) Mr.C.S.K.Sathish (for R.2) (in W.P.Nos.24606 & 24608/2021) 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 matter is 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 Corporation. 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.Soundar Raj, 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 Corporation has suffered huge losses due to Covid-19 situation prevailing in State for more than 20 months. The Corporation would be unable to mobilize and come up with funds to pay 6% interest. The Corporation is 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 Corporation would be unable to bear. The Corporation 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 Corporation, which appear to this Court to be fair and reasonable considering the weak financial position of the Corporation, 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.These Writ Petitions stand disposed of accordingly. No costs.
Sd/- Assistant Registrar(CS-II) // True Copy // Sub Assistant Registrar mrm
To 1.The Managing Director, M/s.Metropolitan Transport Corporation, No.1, Pallavan Salai, Chennai - 600 002.
2.The Administrator, M/s.Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, No.2, Pallvana Salai, Chennai - 600 002.
+4cc to Mr.D.Soundar Raj, Advocate SR.No.7253,7250,7252,7254 +1cc to Mr.K.Moorthy, Advocate SR.No.7642 W.P.Nos.19542, 19546 of 2020 and W.P.Nos.24606 & 24608 of 2021 GP(CO) CB(09/03/2022)