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Madras High Court

K.Shanmugam vs The Secretary To Government on 15 March, 2021

Author: M.S.Ramesh

Bench: M.S.Ramesh

                                                                    W.P.(MD) No.5671 of 2021

                            BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                               DATED: 15.03.2021

                                                   CORAM:

                                THE HONOURABLE MR.JUSTICE M.S.RAMESH

                                            W.P.(MD) No.5671 of 2021

                      1.K.Shanmugam
                      2.G.Krishnan
                      3.N.Malathy
                      4.T.Kanthasamy
                      5.S.Soundirapandian
                      6.K.Sivasingaravelu
                      7.M.Murugesan
                      8.V.Ramadass
                      9.V.Natarajan                                       ... Petitioners
                                                        Vs

                      1.The Secretary to Government,
                        Transport Department,
                        Government of Tamil Nadu,
                        Secretariate,
                        St.George Fort,
                        Chennai-600 009.

                      2.The Managing Director,
                        Tamilnadu State Transport Corporation (Kumbakonam) Ltd.,
                        Railway Station Road,
                        Kumbakonam-612 001,
                       Thanjavur District.

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                                                                        W.P.(MD) No.5671 of 2021


                      3.The General Manager,
                        Tamil Nadu State Transport Corporation
                           (Kumbakonam) Ltd.,
                        Trichy Region,
                        Periyamilaguparai,
                        Trichy District.

                      4.The Administrator,
                        Tamil Nadu State Transport Corporation
                            Pension Fund Trust,
                        Thiruvalluvar House,
                        Pallavan Illam,
                        Chennai-600 002.                                       ... Respondents

                      PRAYER: Writ Petition filed under Article 226 of the Constitution of
                      India for issuance of Writ of Mandamus, to direct the respondents to
                      settle the interest for the belated payment of retirement benefits payable
                      to the petitioners with 18% rate of interest within the time frame that may
                      be stipulated by this Court.


                                         For Petitioner     : Mr.N.Sudhagar Nagaraj
                                         For R-1            : Mr.P.Mahendran
                                                              Additional Government Pleader

                                         For R-2 and R-3 : Mr.D.Sivaraman
                                                           Standing Counsel

                                         For R-4            : Mr.A.Swaminathan
                                                              Standing Counsel




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                                                                         W.P.(MD) No.5671 of 2021


                                                        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 petitioners, they have 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:-

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 3/6 http://www.judis.nic.in W.P.(MD) No.5671 of 2021 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.

5.At this juncture, Mr.D.Sivaraman, 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. 4/6 http://www.judis.nic.in W.P.(MD) No.5671 of 2021

6.The learned counsel for the petitioners 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.

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

15.03.2021 Index : Yes / No Internet : Yes / No cp 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.
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cp To
1.The Secretary to Government, Transport Department, Government of Tamil Nadu, Secretariate, St.George Fort, Chennai-600 009.
2.The Managing Director, Tamilnadu State Transport Corporation (Kumbakonam) Ltd., Railway Station Road, Kumbakonam-612 001, Thanjavur District.
3.The General Manager, Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Trichy Region, Periyamilaguparai, Trichy District.
4.The Administrator, Tamil Nadu State Transport Corporation Pension Fund Trust, Thiruvalluvar House, Pallavan Illam, Chennai-600 002.

Order made in W.P.(MD) No.5671 of 2021 15.03.2021 6/6 http://www.judis.nic.in