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Madras High CourtWP/29534/2018allowed

M.Sabapathy v. The State Of Tamil Nadu

2024-10-29Honourable Mr Justice Battu Devanand8 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 29.10.2024

CORAM

THE HONOURABLE MR.JUSTICE BATTU DEVANAND 1.M.Sabapathy 2.K. Krishnan 3.K. Lakshmanan 4.M. Saravanan 5.V. Arumugham 6.K. Chakkarai 7.M. Shanmugham 8.R. Shanmugha Sundaram 9.V. Bhanumathi 10.N. Janaki 11.G. Jagannathan 12.L. Munisamy 13.E. Narasimhalu Naidu 14.G. Murugan 15.P. Sundaramoorthi 16.T.V. Srinivasan 17.M. Shanmughanatham 18.A. Banumathi 19.M. Manickam 20.V.R. Soundararajan 21.S. Dhanam 22.A.M. Subramanian 23.N. Paramasivam 24.K. Gowri 25.R. Rajagopal 26.V. Natarajan 27.C. Chandra 28.K. Thilakvathy 29.R. Manjula 30.M. Krishnamoorthy 31.Krishnamoorthy 1/8

32.K. Sunnabee 33.M. Manoon Mani 34.S. Anbazhagan 35.V. Radha 36.R. Gnaneswaran 37.P. Noorulla 38.K. Shanmugam 39.S. Kamala 40.K. Sarangubai 41.P.V. Vadivel 42.A.S. Krishnarajan 43.P. Raja 44.P. Rajeswari 45.A. Viswanathan 46.C. Thavamani 47.K. Vijaya 48.M. Koteeswaran 49.P. Selvaraju 50.R. Thirupathi 51.P. Lakshmi 52.P.K. Kalaivani 53.M. Manikodi 54.C. Kannammal 55.S. Paruvatham 56.P. Raniammal 57.B. Kalyani 58.M. Pachiammal 59.C. Vasantha 60.R. Sellammal 61.P. Subramanian 62.C. Ganesan 63.S. Yasotha 64.M. Kaliappan 65.T. Sivanandam 66.N. Charumathi 67.M. Rajan 68.M. Ramasamy 69.G. Lakshmi 70.A. Murugesan 71.R. Rangammal 72.K. Kandasamy 2/8

73.R. Chinnaraju 74.K. Chinnasamy 75.R. Arunachalam 76.M. Ramamoorthy 77.R. Thavamani 78.M. Rosemary 79.G. Pusparani 80.K. Chinnasamy 81.C. Vasantha Kumari 82.N. Vasuki 83.K. Kaveri ... Petitioners Vs.

1.The State of Tamil Nadu, Rep., by the Principal Secretary to Government, Educational Department, Secretariat, Chennai - 600 009.

2.The District Elementary Education Officer, Krishnagiri District, Krishnagiri.

3.The Assistant Elementary Educational Officer, Kaveripattinam, Krishnagiri District.

... Respondents Writ petition is filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for records on the file of the first respondent herein in relation to G.O. (1D) No.258, School Education (Ni.V.2) Department dated 23.07.2015 and quash the same to the limited extent of calculating the interest on delayed payment on the basis of simple interest instead of calculating the interest on compound interest basis (to be compounded annually) and to the limited extent of restricting the period for which the interest has been calculated only till 31.12.2013 instead of reckoning the period from the respective dates of payments due to the petitioner till the date of actual disbursement of the respective amounts to the respective petitioners herein and to consequently directing the first respondent (i) to calculate the interest on delayed payment for the respective due dates of payment 3/8

of the amounts to the petitioners till the actual date of disbarment of amounts (i.e., till 21.05.2015) by applying compound interest (to be compounded annually) and to sanction and disburse the said amounts to the petitioners along with (ii) interest on the above arrived amount (to be compounded annually) w.e.f. 22.05.2014 till the actual date of disbursement of the amounts mentioned in items I and II herein after deducting the interest amount already paid to the petitioners on 14.08.2015. [Prayer amended as per order dated 11.06.2024 in W.M.P.No.10623 of 2024 in W.P. No.29534 of 2018] For Petitioners : Mr. S. Balarshram for Mr. M. Ravi For Respondents : Mrs. P. Raja Rajeswari, Government Advocate

O R D E R

This Writ Petition has been filed against the G.O.(1D) No.258, School Education (Ni.V.2) Department, dated 23.07.2015 wherein, it is ordered to disburse the interest for the belated payment of provident fund and arrears of 5th pay commission to the petitioners on the following two grounds: -

1. The interest was not calculated on delayed payment from the respective due dates of payment of the amounts to the petitioners till the actual date of disbursement of amounts.

2. Interest on the said amount has to be compounded annually but simple interest was calculated while issuing the said G.O. 4/8

2. This Court by order dated 27.11.2013, while disposing of the W.P. No. 32207 of 2013, directed the respondents to settle the Provident Fund amount payable to the petitioners, Dearness Allowance and also the Fifth Pay Commission arrears if any, within 16 weeks from the date of receipt of copy of that order. It is also made it clear that, as far as the claim regarding interest is concerned, the authorities concerned are required to apply the appropriate G.O., which is in force and pay the amount accordingly, within the period stipulated therein.

3. In compliance of this order, the G.O.(ID) No.258 dated 23.07.2015 was issued.

4. Heard the learned counsel for the petitioners and the learned Government Advocate appearing for the respondents.

5. On perusal of G.O.(ID) No.258 dated 23.07.2015 impugned in this writ petition, it is clear that the respondents fixed the date i.e., 31.12.2013 as cut off date to count the payment of interest as directed by this Court in its order dated 27.11.2013 in W.P. No. 32207 of 2013. It is settled law that the payment of interest for belated payment of the amounts for which employee is legally entitled has to be calculated from the date of his retirement i.e., the date on which the amounts are due to him.

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6. But in the present case, the respondents erroneously fixed the date as 31.12.2013 to calculate the pension, which is illegal and irrational. The second ground raised by the petitioners is that, the simple interest is calculated to make payment to the petitioners. As per G.O.No.173, Finance (Pension) Department, dated 01.04.2004, the interest for belated payment has to be calculated based on the compound rate of interest. Infact, in the order dated 27.11.2013 in W.P. No.32207 of 2013, this Court directed to calculate the interest, the concerned authorities has to apply the appropriate G.Os. But contrary to the G.O.No.173, Finance (Pension) Department, dated 01.04.2004, the respondents calculated the simple interest instead of compound rate of interest, which is illegal and erroneous.

7. For the above said reasons, in the considered opinion of this Court, the G.O.(ID) No. 258, School Education Department, dated 23.07.2015 is passed contrary to the directions issued by this Court in order dated 27.11.2013 in W.P. No.32207 of 2013 and contrary to the G.O.173, Finance (Pension) Department dated 01.04.2004 and accordingly, it would not sustain in the eye of law. Accordingly, it is liable to be quashed. Accordingly the G.O. (1D) No.258, School Education (Ni.V.2) Department dated 23.07.2015 impugned in this writ petition is hereby quashed. 6/8

8. Accordingly, this Writ Petition is allowed with the following directions: - i) The respondents shall calculate the amount of interest payable to the petitioners as directed by this Court in the order dated 27.11.2013 in W.P. No. 32207 of 2013 from the date of actual due. ii) While calculating the interest, the respondents have to calculate the interest by applying compound rate of interest as per G.O.No.173, Finance (Pension) Department, dated 01.04.2004.

9. There shall be no order as to costs.

29.10.2024 Index :Yes/No AT To 1.The Principal Secretary to Government, State of Tamil Nadu, Educational Department, Secretariat, Chennai - 600 009.

2.The District Elementary Education Officer, Krishnagiri District, Krishnagiri.

3.The Assistant Elementary Educational Officer, Kaveripattinam, Krishnagiri District.

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BATTU DEVANAND, J.

AT 29.10.2024 8/8