S.Mathiazhagan v. The Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 25.10.2021

CORAM

THE HON'BLE MR.JUSTICE C.SARAVANAN W.P.NO.22739 OF 2021 (Through Video Conferencing) S.Mathiazhagan ... Petitioner .Vs.

1. The Managing Director, Tamil Nadu State Transport Corporation (VPM) Limited, Kandampakkam Post, Villupuram - 605 401.

2. The General Manager, Tamil Nadu State Transport Corporation (VPM) Limited, Villupuram Region, Villupuram.

3. The Administrator, Tamil Nadu Employees' Pension Fund Trust, Pallavan Salai, Chennai.

... Respondents PRAYER:- Writ Petition filed under Article 226 of Constitution of India, for issuance of a Writ of Mandamus directing the first and second respondents to pay the interest at the rate of 18% per annum for the belated payment of the gratuity of Rs.7,43,238/- along with computation to a tune of Rs.6,71,923/- and leave salary to a tune of Rs.4,89,672/- along with the future interest payable from the date of payment made till the date of realization.

For Petitioner : Mr.P.Paramasiva Doss For Respondents : Mr.G.Saravana Kumar Standing Counsel

ORDER

This Writ Petition has been filed for a Writ of Mandamus, to direct the first and second respondents to settle interest at the rate of 18% per annum for the belated payment of the petitioner's gratuity of Rs.7,43,238/- along with computation to a tune of Rs.6,71,923/- and leave salary to a tune of Rs.4,89,672/- along with the future interest payable from the date of payment made till the date of realization in terms of the decision of the First Bench of the Madurai Bench of this Court in W.A.(MD)Nos.383 to 457 of 2015.

2. The First Bench of the Madurai Bench of this Court, in the above case, has directed the State Transport Corporation to settle the terminal benefits of its employees in 12 equal monthly installments and to pay interest at the rate of 6% on the terminal benefits payable to the workman. The First Bench of the Madurai Bench of this Court has also held that workman is entitled to 18% interest for the defaulted period of installments.

3. It is noticed that though the above observation of the First Bench of the Madurai Bench of this Court was followed by a learned Single Judge in W.P.No.15886 of 2020 vide order dated 19.01.2021, the learned Single Judge has subsequently modified the views in W.P.No.506 of 2021 vide order dated 24.03.2021 considering the constraints of the State Finance due to the outbreak of Covid-19 with the following directions:- "(i) Respondent/Transport Corporation is directed to pay interest @ 4% per annum to the Petitioner for the belated payment of gratuity, leave salary and communication of pension amount that are yet to be settled, in six equal monthly instalments, commencing 01.04.2021.

(ii) In case of delay in making instalments within the time stipulated supra, with reference to the judgment of the Division Bench of this Court (supra), interest payable for the period of delay shall be at 6% per annum."

4. Considering the same, this Writ Petition is disposed by directing the respondent to consider the representation dated 11.10.2019 of the petitioner and to pay interest at the rate of 4% per annum for the belated payment of Gratuity, Computation and Leave Salary and other legal dues to the petitioner in six

equated monthly instalments commencing from 1st December, 2021. No costs.

Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar arb To 1.

The Managing Director, Tamil Nadu State Transport Corporation (VPM) Limited, Kandampakkam Post, Villupuram - 605 401.

2.

The General Manager, Tamil Nadu State Transport Corporation (VPM) Limited, Villupuram Region, Villupuram.

3.

The Administrator, Tamil Nadu Employees' Pension Fund Trust, Pallavan Salai, Chennai.

+1cc to Mr.G.Saravana Kumar, Advocate, S.R.No.54940 W.P.NO.22739 OF 2021 CP(CO) PBS/01/12/2021