A.Muruganandham v. The Managing Director,

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 10.08.2023

CORAM:

THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR WP.No.23458 of 2023 A.Muruganandam ... Petitioner Vs The Managing Director, Tamil Nadu State Transport Corporation [Villupuram] Ltd., 3/137, Salamedu, Villupuram - 605 602.

... Respondent Prayer:- Writ Petition filed, under the Article 226 of Constitution of India, to issue a Writ of Mandamus directing the respondent to pay interest @ 10 percent for the belated payment of Gratuity, Provident Fund and Leave Salary amount to the petitioner. For Petitioner : Mr.S.T.Varadarajulu For Respondent : Mr.R.Venkatesa Perumal 1/5

ORDER

This Writ Petition has been filed to direct the respondent to pay interest @ 10 percent for the belated payment of Gratuity Provident Fund and Leave Salary amount to the petitioner.

2. It is the case of the Writ Petitioner that he retired from service on 31.07.2022. The grievance of the petitioner is that his terminal benefits such as Gratuity, Provident and Leave Salary have been settled to the petitioner belatedly on 22.05.2023 and 23.05.2023. Hence, the petitioner is claiming interest at the rate of 10% on belated payment of terminal benefits to the petitioner. In this regard, the petitioner has given a representation to the respondent on 06.07.2023. However, the same has not been considered by the respondent. Hence, the present Writ Petition has been filed seeking 10% interest on belated payment of terminal benefits.

3. Heard Mr.S.T.Varadarajulu, learned counsel for the petitioner, Mr.R.Venkatesa Perumal, learned counsel appearing for the respondent. 2/5

4. 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. Hence, this Court is of the view that the petitioner is entitled for interest at the rate of 4% per annum on the belated payment of the terminal benefits.

5. Accordingly, the respondent is directed to pay interest at the rate of 4% per annum on the belated payment of the terminal benefits to the petitioner, from the date of his retirement till the date of actual disbursement within a period of eight weeks from the date of receipt of a copy of this Order.

6. With the above direction, this Writ Petition is disposed of. No costs.

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Index:Yes/No vrc To, The Managing Director, Tamil Nadu State Transport Corporation [Villupuram] Ltd., 3/137, Salamedu, Villupuram - 605 602.

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N.SATHISH KUMAR, J.

vrc WP.No.23458 of 2023 10.08.2023 5/5