K.Lokanathan, v. The Management Of
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.10.2023
CORAM:
THE HONOURABLE MR. JUSTICE M.S. RAMESH K.Lokanathan
...Petitioner
Vs.
1.The Management of Tamil Nadu State Transport Corporation (Kovai) Ltd., Erode Region, Rep. by its Managing Director, Erode.
2.The Administrator, Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, Thiruvalluvar Illam, Anna Salai, Chennai - 600 002.
...Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the respondents to pay the petitioner interest at the rate of 18% per annum for the period of delay from 01.06.2022 to 30.05.2023, in paying the amounts towards his terminal and pension benefits namely EPF Employee's Contribution, Gratuity, Encashment of Leaves/Already Surrendered Earned Leaves and Commutated value of Pension.
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For Petitioner : Mr.V.Ajay Khose For R1 : Mr.M.Murali Vinodh, Standing Counsel For R2 : Mr.C.S.K.Sathish, Standing Counsel
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 31.05.2022 on reaching the age of superannuation. However, his terminal benefits came to be settled belatedly on 30.05.2023 and the respondents have not paid the interest for the belated payments. In this regard, the petitioner has given a 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 2/4
entitled for interest at the rate of 4% per annum on the belated payment of the terminal benefits.
4. In the light of the above observations, there shall be a direction to the first 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, i.e. from 31.05.2022 to 30.05.2023, 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 Index:Yes/No Speaking order/Non-speaking order Sni 3/4
M.S.RAMESH,J.
Sni To 1.The Managing Director, Tamil Nadu State Transport Corporation (Kovai) Ltd., Erode Region, Erode.
2.The Administrator, Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, Thiruvalluvar Illam, Anna Salai, Chennai - 600 002.
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