A.Habib Muhammed Noordeen v. The Management Of

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 06.10.2023

CORAM:

THE HONOURABLE MR. JUSTICE M.S. RAMESH A. Habib Muhammed Noordeen ... Petitioner Vs.

The Management of Tamil Nadu State Transport Corporation (Kovai) Ltd., Erode Region, Rep. by its Managing Director, Erode.

... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the respondent to pay the petitioner interest at the rate of 18% per annum, for the period of delay from 01.10.2020 to 01.12.2022, in paying the amounts paid towards his terminal benefits namely EPF Employee's Contribution, Gratuity and Encashment of Leaves within a time frame as may be fixed by this Court and without affecting his right to claim balance amounts towards those benefits.

For Petitioner : Mr.V. Ajoy Khose For Respondent : Mr.M. Murali Vinodh Standing Counsel 1/4

ORDER

With the consent of both the parties, this Writ Petition is taken up for final disposal at the admission stage itself.

2. The petitioner herein had retired from service on 30.09.2020 under the Voluntary Retirement Scheme. However, his terminal benefits came to be settled belatedly and the respondent has not paid the interest for the belated payment, for which the petitioner has given representation on 16.08.2023, which is yet to be considered.

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

2/4

4. In the light of the above observations, there shall be a direction to the respondent herein, to pay interest at the rate of 4% per annum on the belated payment of the terminal benefits from the date of the petitioner's retirement till the date of actual payment, within a period of four (4) weeks from the date of receipt of a copy of this order.

5. With the above direction, the Writ Petition stands disposed of. No costs.

06.10.2023 Speaking/Non-speaking Order Index: Yes/No Internet: Yes.No Sni To The Managing Director, Management of Tamil Nadu State Transport Corporation (Kovai) Ltd., Erode Region, Erode.

3/4

M.S.RAMESH,J.

Sni 06.10.2023 4/4