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Madras High Court

S.Ramadass vs The Managing Director on 18 March, 2021

Author: M.S.Ramesh

Bench: M.S.Ramesh

                                                                      W.P.(MD) No.6078 of 2021

                            BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                               DATED: 18.03.2021

                                                   CORAM:

                                THE HONOURABLE MR.JUSTICE M.S.RAMESH

                                           W.P.(MD) No.6078 of 2021

                      S.Ramadass                                            ... Petitioner
                                                         Vs

                      1.The Managing Director,
                        Tamilnadu State Transport Corporation (MDU) Ltd.,
                        Bye-pass Road,
                        Madurai-625 016.

                      2.The General Manager,
                        Tamilnadu State Transport Corporation (MDU) Ltd.,
                        Collectrate Post,
                        Bye-pass Road,
                        Dindigul-624 004.

                      3.The Administrator,
                        Tamilnadu State Transport Employees Pension Fund Trust
                        Thiruvalluvar Illam,
                        Pallavan Salai,
                        Chennai-2.                                        ... Respondents


                      PRAYER: Writ Petition filed under Article 226 of the Constitution of

                      India for issuance of Writ of Mandamus, to direct the respondents to

                      disburse interest at the rate of 6% for retirement benefits Gratuity,

                      Provident Fund, Commutation and Leave Salary.

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                                                                         W.P.(MD) No.6078 of 2021




                                          For Petitioner      : Mr.K.Gokul


                                          For Respondents : Mr.J.Senthilkumaraiah
                                                            Standing Counsel



                                                        ORDER

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

2.Aggrieved against the belated settlement of the terminal benefits to the petitioner, he has claimed interest on the belated payment in this Writ Petition.

3.In an identical issues, this Court has passed various orders, justifying the payment of interest to the aggrieved pensioners and in the order dated 13.12.2019 in W.P.(MD) No.26481 of 2019, the following order came to be passed:-

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5. I am not in agreement with the said representation made. There was already a duty cast on the respondent Corporation to pay the terminal benefits on the date of retirement itself and the very fact that the belated disbursement of retirement benefit, had already put the retired employee to serious prejudice, entertaining the present request for disbursement of the interest on the belated payment in installments, could cause further prejudice to the retired employee.
6. In the light of the above observations, there shall be a direction to the respondent /Corporation 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, not before the expiry of three months from the date of receipt of a copy of this order.

4.This Court is of the view that the respondents could be directed to pay the interest on the belated payment, at the rate of 6% per annum, as ordered in the above Writ Petition. 3/6 http://www.judis.nic.in W.P.(MD) No.6078 of 2021

5.At this juncture, Mr.J.Senthilkumaraiah, learned Standing Counsel appearing for the respondent Corporation would submit that owing to the Covid-19 pandemic situation and non-plying of buses for a considerable time, there has been a heavy revenue loss for the Corporation and therefore, the period of payment spread over three months as, ordered in the earlier Writ Petition, can be extended, so as to enable them to pay the interest amount, within a period of six months.

6.The learned counsel for the petitioner also does not have any objections to the same.

7.In this background, there shall be a direction to the respondents to pay the interest to the petitioner at the rate of 6% per annum on the belated payment of the retirement benefits, commencing from the date of retirement, till the date of actual disbursement, within a period of six months from the date of receipt of a copy of this order.

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8.This Writ Petition stands allowed in accordance with the above terms. No costs.

18.03.2021 Index : Yes / No Internet : Yes / No NOTE:

In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned.
To
1.The Managing Director, Tamilnadu State Transport Corporation (MDU) Ltd., Bye-pass Road, Madurai-625 016.
2.The General Manager, Tamilnadu State Transport Corporation (MDU) Ltd., Collectrate Post, Bye-pass Road, Dindigul-624 004.
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cp

3.The Administrator, Tamilnadu State Transport Employees Pension Fund Trust Thiruvalluvar Illam, Pallavan Salai, Chennai-2.

Order made in W.P.(MD) No.6078 of 2021 18.03.2021 6/6 http://www.judis.nic.in