P.Kalimuthu v. The Managing Director

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 17.03.2020

CORAM:

THE HONOURABLE MRS.JUSTICE J.NISHA BANU P.Kalimuthu ... Petitioner vs.

1. The Managing Director, Tamil Nadu State Transport Corporation (KUM) Ltd., New Railway Station Road, Kumbakonam 612 001.

2. The General Manager, Tamil Nadu State Transport Corporation (KUM) Ltd., Karaikudi Region, Mardhupathi, Managiri Post Karaikudi 630 307.

... Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of writ of mandamus, directing the respondents to disburse interest at the rate of 6% for retirement benefits Gratuity, Provident Fund, Leave Salary and Commutation. For Petitioner : Mr.K.Gokul For Respondents : Mr.P.Balasubramanian

O R D E R

By consent of both parties, this writ petition is taken up for final disposal at the stage of admission itself.

2. The petitioner's retirement benefits were settled belatedly on 20.09.2019 and in view of such belated settlement, the present writ petition has been filed seeking for interest on the belated payment of the terminal benefits.

3. It is brought to the notice of this Court that in an identical case of batch of writ petitions entertained by this Court, directions have been issued to the respondents to pay the interest at the rate of 6% on the belated payment of the terminal 1/3

benefits. This Court does not intend to deviate from the said procedure.

4. The learned Standing Counsel appearing for the respondents Corporation would submit that in view of the financial burden cast on the respondents corporation, they may be permitted to pay the interest on the belated payment in a liberal monthly installments.

5. I am not in agreement with the said representation made. There was already a duty cast on the respondents corporation to pay the terminal benefits on the date of retirement itself and the very fact that the belated disbursement of retirement benefit, would already put the retired employee to serious prejudice. Entertaining the said request for disbursement of the interest on the belated payment in installments, could cause further prejudice to the retired employees.

6. In the light of the above observations, there shall be a direction to the respondents to pay the penal interest at the rate of 6% per annum on the belated payment of the retirement benefits for the period from the date of the retirement till the date of actual disbursement, as expeditiously as possible and in any event, within a period of three months from the date of receipt of a copy of this order.

7. With the above directions, this Writ Petition is disposed of. No costs.

Sd/- Assistant Registrar () // True Copy // / /2020 Sub Assistant Registrar(CS) To:-

1. The Managing Director Tamil Nadu State Transport Corporation (KUM) Ltd., New Railway Station Road Kumbakonam 612 001

2. The General Manager Tamil Nadu State Transport Corporation (KUM) Ltd., Karaikudi Region Mardhupathi, Managiri Post Karaikudi 630 307.

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+1 CC to M/s.K.GOKUL, Advocate ( SR-12515[F] dated 19/03/2020 ) +1 CC to M/s.P.BALASUBRAMANIAN, Advocate ( SR-12123[F] dated 17/03/2020 ) Order made in W.P.(MD)No.5532 of 2020 17.03.2020 SRS/ 08.05.2020/ 3P/5C 3/3