Allowed

V.Ramalingam v. the Managing Director

Madras HC24 Jan 2020WP(MD)/1376/2020

Case brief

AI extract

What is this about?

The petitioner sought issuance of writ of mandamus directing the respondent Transport Corporation to pay 6% interest on belated retirement benefits due to delayed settlement. The Court allowed the petition, directing the payment of penal interest within three months, rejecting the plea for installment payments.

What did the court decide?

Direction to pay penal interest at 6% p.a. on belated retirement benefits from date of retirement till actual disbursement within three months.

V.Ramalingam Vs the Managing Director — Labour and Industrial Disputes | Madras HC (2020)

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W.P.(MD) No.1376 of 2020

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 24.01.2020

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CORAM:

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THE HONOURABLE MR.JUSTICE M.S.RAMESH W.P.(MD) No.1376 of 2020

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V.Ramalingam

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vs.

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1.The Managing Director,

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Tamil Nadu State Transport Corporation (Tvl) Ltd., 23/2, Thoothukudi Road,

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Kattabomman Nagar,

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Tirunelveli District.

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2.The General Manager,

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Tamil Nadu State Transport Corporation (Tvl) Ltd., Tirunelveli Region,

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Tirunelveli District. ... Respondents

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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 and Leave Salary.

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For Petitioner : Mr.K.Gokul

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For Respondents : Mr.R.Rajamohan Standing Counsel

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O R D E R

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

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2.The petitioner's retirement benefits were settled belatedly on 21.09.2019 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.

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3.It is brought to the notice of this Court that in an identical cases, a batch of writ petitions entertained by this Court and directions have been issued to the respondents to pay the interest at the rate of 6% on the belated payment of the terminal benefits. This Court does not intend to deviate from the said procedure.

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4.The learned Standing Counsel appearing for the respondents would submit that in view of the financial burden cast on the https://hcservices.ecourts.gov.in/hcservices/ respondent Corporation, they may be permitted to pay the interest

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W.P.(MD) No.1376 of 2020

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on the belated payment in a liberal monthly installments.

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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.

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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, within a period of three months from the date of receipt of a copy of this order.

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

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Assistant Registrar (RECORDS)

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// True Copy //

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/ /2020 Sub Assistant Registrar(CS)

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+1 CC to MR.P.BALASUBRAMANIAN, Advocate ( SR-2866[F] dated 24/01/2020 )

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+1 CC to MR.R.RAJAMOHAN, Advocate ( SR-3035[F] dated 24/01/2020 )

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+1 CC to MR.K.GOKUL, Advocate ( SR-3039[F] dated 27/01/2020 )

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W.P.(MD) No.1376 of 2020 24.01.2020

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KM/(04.02.2020) 2P 4C

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https://hcservices.ecourts.gov.in/hcservices/

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V.Ramalingam v. the Managing Director

Case brief

What is this about?

What did the court decide?

V.Ramalingam v. the Managing Director

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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