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Madras High Court

P.Vasukilenin vs The Managing Director on 24 September, 2021

Author: C.Saravanan

Bench: C.Saravanan

                                                                            W.P.No.17171 of 2021


                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 24.09.2021

                                                      CORAM

                                     THE HON'BLE MR.JUSTICE C.SARAVANAN

                                               W.P.No.17171 of 2021

                                            (Through Video Conferencing)


                  P.Vasukilenin                                             ... Petitioner

                                                        Vs.

                  1.The Managing Director,
                    Tamil Nadu State Transport
                        Corporation (Salem) Ltd.,
                    Ramakrishna Salai, Salem – 636 007.

                  2.The Administrator,
                    Tamil Nadu State Transport Corporation,
                    Employees Post Retirement Welfare
                        Fund Scheme,
                    Thiruvalluvar House, Pallavan Salai,
                    Chennai – 600 002.                                      ... Respondents

                            Writ Petition filed under Article 226 of Constitution of India, for
                  issuance of a Writ of Mandamus, to direct the respondents to disburse the
                  payments relating to interest amount of Provident Fund, Gratuity, Earned
                  Leave Salary and Commutation and other benefits like Social Welfare
                  Scheme amount, ERBS Pension amount, EL Surrender arrears and IRT Share

                  _____________
https://www.mhc.tn.gov.in/judis/
                  Page No. 1 of 5
                                                                               W.P.No.17171 of 2021

                  amount and all other retirement benefits along with the entitled difference of
                  dearness allowances also, with interest at 12% per annum with effect from
                  01.03.2020 within the stipulated time.

                                        For Petitioner     : Mr.N.Desinghu

                                        For Respondents : Mr.D.Raghu


                                                         ORDER

This Writ Petition has been filed for a Writ of Mandamus, to direct the respondents to pay interest at the rate of 12% per annum for the belated payment of Provident Fund, Gratuity, Earned Leave Salary and Commutation and other benefits like Social Welfare Scheme amount, ERBS Pension amount, EL Surrender arrears and IRT Share amount and all other retirement benefits along with the entitled difference of dearness allowances also, with effect from 01.03.2020 in terms of the decision of the First Bench of the Madurai Bench of this Court in W.A. (MD) Nos.383 to 457 of 2015.

2. The First Bench of the Madurai Bench of this Court, in the above case, has directed the State Transport Corporation to settle the terminal benefits of its employees in 12 equal monthly installments and to pay interest at the rate of 6% on the terminal benefits payable to the workman. _____________ https://www.mhc.tn.gov.in/judis/ Page No. 2 of 5 W.P.No.17171 of 2021 The First Bench of the Madurai Bench of this Court has also held that workman is entitled to 18% interest for the defaulted period of installments.

3. It is noticed that though the above observation of the First Bench of the Madurai Bench of this Court was followed by a learned Single Judge in W.P.No.15886 of 2020 vide order dated 19.01.2021, the learned Single Judge has subsequently modified the views in W.P.No.506 of 2021 vide order dated 24.03.2021 considering the constraints of the State Finance due to the outbreak of Covid-19 with the following directions:-

“(i) Respondent/Transport Corporation is directed to pay interest @ 4% per annum to the Petitioner for the belated payment of gratuity, leave salary and communication of pension amount that are yet to be settled, in six equal monthly instalments, commencing 01.04.2021.
(ii) In case of delay in making instalments within the time stipulated supra, with reference to the judgment of the Division Bench of this Court (supra), interest payable for the period of delay shall be at 6% per annum.”

4. Considering the same, this Writ Petition is disposed by directing the respondents to consider the representations dated 22.07.2021 of the petitioner and to pay interest at the rate of 4% per annum for the belated payment of all _____________ https://www.mhc.tn.gov.in/judis/ Page No. 3 of 5 W.P.No.17171 of 2021 legal dues to the petitioner in six equated monthly instalments commencing from 1st November, 2021. No costs.

24.09.2021 (1/3) Index : Yes/No Internet : Yes/No jen To

1.The Managing Director, Tamil Nadu State Transport Corporation (Salem) Ltd., Ramakrishna Salai, Salem – 636 007.

2.The Administrator, Tamil Nadu State Transport Corporation, Employees Post Retirement Welfare Fund Scheme, Thiruvalluvar House, Pallavan Salai, Chennai – 600 002.

_____________ https://www.mhc.tn.gov.in/judis/ Page No. 4 of 5 W.P.No.17171 of 2021 C.SARAVANAN, J.

jen W.P.No.17171 of 2021 24.09.2021 (1/3) _____________ https://www.mhc.tn.gov.in/judis/ Page No. 5 of 5