B.Kurusadi Rajan v. The Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 01.09.2023

CORAM:

THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR WP.No.25752 of 2023

1. B.Kurusadi Rajan

2. G.Shanmugavel ... Petitioners Vs

1. The Managing Director, Tamil Nadu State Transport Corporation Ltd., No.37, Mettupalayam Road, Coimbatore - 43.

2. The General Manager, Tamil Nadu State Transport Corporation Ltd., Erode Region, Chennimalai Road, Erode - 638 001.

3. The Administrator, Tamil Nadu State Transport Corporation EPF Trust, Thiruvalluvar House, Pallavan Salai, Chennai - 600 002. ... Respondents Prayer:- Writ Petition filed, under the Article 226 of Constitution of India, to issue a Writ of Mandamus directing the respondents to pay interest for the belated payment of Provident Fund, Gratuity, Encashment of Earned Leave, Surrender Leave and Commuted Value of pension at 1/6

the rate of 12 percent per annum within a specified time as may be fixed by this Court.

For Petitioners : Mr.N.Senthilkumar For Respondents : Mr.M.Murali Vinoth Standing Counsel for the respondents 1 & 2 Mr.C.S.K.Sathish - R3

ORDER

This Writ Petition has been filed to direct the respondents to pay interest for the belated payment of Provident Fund, Gratuity, Encashment of Earned Leave, Surrender Leave and Commuted Value of pension at the rate of 12 percent per annum within a specified time as may be fixed by this Court.

2. It is the case of the Writ Petitioners that the writ petitioners 1 to 7 retired from service on 31.05.2022 and 306.06.2022 respectively. It is the contention of the learned counsel that the terminal benefits were 2/6

belatedly settled to the petitioners only on 22.05.2023. Therefore, the petitioners are eligible for interest on the belated payment of Provident Fund, Gratuity, Earned Leave, Commuted Pension and other benefits. Hence, seeks interest at the rate of 12% p.a. for belated payment of retirement benefits of the petitioners.

3. Heard Mr.N.Senthil Kumar learned counsel for the petitioners and Mr.M.Murali Vinoth, learned Standing Counsel appearing for the first and second respondents and Mr.C.S.K.Sathish, learned counsel appearing for the third respondent.

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.

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5. Accordingly, the first respondent is directed to pay interest at the rate of 4% per annum on the belated payment of the terminal benefits to the petitioners, from the date of their 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.

01.09.2023 Index:Yes/No vrc To,

1. The Managing Director, Tamil Nadu State Transport Corporation Ltd., No.37, Mettupalayam Road, Coimbatore - 43.

2. The General Manager, Tamil Nadu State Transport Corporation Ltd., Erode Region, Chennimalai Road, Erode - 638 001. 4/6

3. The Administrator, Tamil Nadu State Transport Corporation EPF Trust, Thiruvalluvar House, Pallavan Salai, Chennai - 600 002. 5/6

N.SATHISH KUMAR, J.

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