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Madras High CourtWP/23795/2021disposed of

B.Devaraj Pr No. 6874 v. Tamil Nadu State Transport Corporation (Coimbatore) Ltd

2021-12-06Honourable Mr Justice V. Parthiban5 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED:06.12.2021

CORAM

THE HON'BLE MR.JUSTICE V.PARTHIBAN W.P.NOS.23795, 23796, 23797, 23798, 23955, 24045, 24887 OF 2021 B.Devaraj ... Petitioner in W.P.No.23795 of 2021 M.BABURAMESH PR NO. 16525 ... Petitioner in W.P.No.23796 of 2021 A.NATARAJAN PR NO. 14671 ... Petitioner in W.P.No.23797 of 2021 R.RAJENDRAN PR NO. 14533 ... Petitioner in W.P.No.23798 of 2021 ELAMATHI ... Petitioner in W.P.No.23955 of 2021 NITHIYANANTHAN ... Petitioner in W.P.No.24045 of 2021 T.CHITRADEVI ... Petitioner in W.P.No.24887 of 2021 Vs.

Tamil Nadu State Transport Corporation (Coimbatore) Limited, Represented by its Managing Director, Mettupalayam Road, Coimbatore - 600 043.

... RESPONDENT in WP Nos.23795 to 23798 of 2021 and 24887 of 2021

1. THE PRINCIPAL SECRETARY TO GOVERNMENT, TRANSPORT DEPARTMENT, FORT ST. GEORGE, CHENNAI 600 009.

2. THE MANAGING DIRECTOR, TAMIL NADU STATE TRANSPORT CORPORATION (CBE) LTD., 37, METTUPALAYAM ROAD, COIMBATORE 641 043.

... RESPONDENTS in WP Nos.23955 & 24045 of 2021

PRAYER in W.P.Nos.23795 to 23798 & 24887 of 2021:- Petitions filed under Article 226 of the Constitution of India praying to issue a writ of Mandamus directing the respondent to pay interest at the rate of 6% per annum for belated payment of his P.F., Gratuity, Earned Leave Salary, within a specified time as may be fixed by this Honourable Court. PRAYER in W.P.No.23955 of 2021 This Petition filed under Article 226 of the Constitution of India praying to issue a writ of Mandamus directing the respondents to pay interest at the rate of 18 percentage per annum for the belated payment of retirement benefits for the period from 30.06.2018 to 18.09.2019 i.e 15 months on par with order made in WP(MD).No. 10553 of 2021 dated 02.07.2021 within the time limit fixed by this Honourable Court. PRAYER in W.P.No.

24045 of 2021 This Petition filed under Article 226 of the Constitution of India praying to issue a writ of Mandamus directing the respondents to pay interest at the rate of 18 percent per annum for the belated payment of retirement benefits for the period from 31.05.2019 to 29.01.2021 i.e. 20 months on par with order made in W.P. (MD) No. 10553 of 2021 dated 02.07.2021 within the time limit fixed by this Honourable Court.

PRAYER in W.P.No.24887 of 2021 This Petition filed under Article 226 of the Constitution of India praying this Court to issue a writ of Mandamus directing the respondent to pay the petitioner's husband, interest at the rate of 6 percentage per annum for the belated payment of the petitioner's husband PF, gratuity, earned leave salary, within a specified time as may be fixed by this Honourable Court. For Petitioners .. Mr.V.Ajay Khose For Respondent .. Mr.A.Sundaravadanam Standing Counsel 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.L.Chandra Kumar and 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 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 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(CO) //True Copy// Sub Assistant Registrar mrm/tri To

1. The Managing Director, Tamil Nadu State Transport Corporation (Coimbatore) Limited, Mettupalayam Road, Coimbatore - 43.

2. The Principal Secretary to Government, Transport Department, Fort St.George, Chennai - 600 009.

+2cc to Mr.V.Ajay Khose, Advocate, S.R.Nos.64909 & 64914 +1cc to the Government Pleader, S.R.Nos.64832 & 64833 W.P.No.23795, 23796, 23797, 23798, 23955, 24045, 24887 of 2021 CP(CO) RLP(21/12/2021)