D.Subburaman v. The Management

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04.01.2023

CORAM:

THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN AND THE HONOURABLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP D.Subburaman ...Appellant Vs.

The Management, Tamil Nadu State Transport Corporation (Villupuram) Ltd., Villupuram Region, Salamedu Villupuram, Villupuram District - 605 602.

...Respondent

Prayer : Writ Appeal filed under Clause 15 of the Letters Patent, to set aside the order dated 03.10.2019 in W.P.No.28877 of 2019, allow the Writ Appeal and consequently direct the respondent to pay interest for the belated payment of gratuity and commutation of pension amount. For Appellant : Mr.S.T.Varadarajulu For Respondents : Mr.M.Aswin, Standing Counsel 1/6

J U D G M E N T

(Judgment was made by R.SUBRAMANIAN, J.) The appellant is aggrieved by the dismissal of his writ petition in which he had sought for a writ of mandamus directing the respondents to pay interest for the belated payment of gratuity.

2. The Appellant joined the services of the Corporation in 1980 as Clerk and was regularised on 26.11.1981. After rendering 32 years of services he retired on 31.07.2012. His retirement benefits were not settled immediately after his retirement. His Gratuity was paid on 09.05.2015 after a delay of 32 months. The appellant therefore claimed that he is entitled to interest for the delay period on the Gratuity.

3. Though the appellant accepted the principal amount without protest, upon this Court passing order in W.A.No.665 of 2018 dated 28.03.2018 the appellant made a representation seeking interest. Since the same was not complied with, the appellant approached this Court with a prayer for mandamus. The said prayer for mandamus was rejected by the writ Court solely on the ground of delay and latches. 2/6

4. No doubt, there has been a delay on the part of the appellant, However, a Division Bench of this Court in W.A.No.665 of 2018 had passed an order on 09.07.2018 concluding that the Corporation is liable to pay interest on the belated payment of retirement benefits and the Division Bench took note of the fact of non-payment of interest to several thousands of employees and had in fact applied the doctrine of judgment in rem in other cases. This in our opinion would amount to a direction to the Corporation to pay interest to all the employees wherever there is a delay in disbursement of retirement benefits.

5. We are therefore of the considered opinion that by dismissal of the writ petition, the writ Court had gone against the pronouncement of the Division Bench. Once the Division Bench makes a direction and makes it a direction in rem that would definitely enure to the benefit of all the employees and that by itself would give a cause of action to other employees to seek payment of interest.

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6. We are therefore unable to uphold the order of the writ Court. The writ appeal is allowed with a direction to pay interest at 6% for the belated payment of Gratuity. It is made clear that the interest will be payable only for the delay period.

(R.S.M., J.) (S.S.K., J.) 04.01.2023 dsa Internet :Yes Index :No Speaking order 4/6

To 1.The Management, Tamil Nadu State Transport Corporation (Villupuram) Ltd., Villupuram Region, Salamedu Villupuram, Villupuram District - 605 602.

2.The Administrator, Tamil Nadu State Transport Corporation, Employees Pension Fund, Pallavan Salai, Chennai - 600 002.

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R.SUBRAMANIAN, J.

and SATHI KUMAR SUKUMARA KURUP , J.

dsa 04.01.2023 6/6