G.Nagarajan v. The Managing Director
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 08.11.2023
CORAM:
THE HONOURABLE MR. JUSTICE M.S. RAMESH G.Nagarajan ... Petitioner Vs.
1.Tamil Nadu State Transport Corporation (Salem) Ltd., Rep.by its Managing Director No.12, Ramakrishna Road, Salem-7.
2.The General Manager Tamil Nadu State Transport Corporation (Salem) Limited., Dharmapuri Region, Bharathipuram Dharmapuri.
3.The Administrator Tamil Nadu State Transport Corporation Employees Post Retirement Welfare Fund Scheme, Thiruvalluvar House, Pallavan 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 disburse the interest for belated payment of Provident Fund, Gratuity, Commutation Amount, Earned Leave Salary Amount, Welfare Amount, IRT Amount and consequently direct the respondents to pay the unsettled benefits of leave encashment, ERBS amount and six days salary along with interest within the stipulated time as may be fixed by this Hon'ble Court. 1/5
For Petitioner : Mr.J.Pradeep For Respondent : Mr.K.Raja, Standing Counsel - for R1 & R2 Mr.C.S.K.Sathish, Standing Counsel-for R3
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 30.06.2019 on reaching the age of superannuation. However, his terminal benefits came to be settled belatedly on 22.01.2021 and the respondents have not paid interest for the belated payment. In this regard, the petitioner has given a representation to the respondents on 12.10.2023, 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 6% per annum. In this background, this Court is of the view that if the respondents are directed to pay interest on the belated payment of the terminal benefits of the petitioner, 2/5
the ends of justice could be secured.
4. In the light of the above observations, there shall be a direction to the respondents herein, to settle the interest amount at the rate of 6% 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.
08.11.2023 Index:Yes/No Speaking order/Non-speaking order Internet: Yes/No KST To 1.Tamil Nadu State Transport Corporation (Salem) Ltd., Rep.by its Managing Director No.12, Ramakrishna Road, Salem-7.
2.The General Manager Tamil Nadu State Transport Corporation (Salem) Limited., Dharmapuri Region, Bharathipuram Dharmapuri.
3.The Administrator Tamil Nadu State Transport Corporation Employees Post Retirement Welfare Fund 3/5
Scheme, Thiruvalluvar House, Pallavan Salai Chennai 600 002.
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M.S.RAMESH,J.
KST 08.11.2023 5/5