A writ petition sought 18% interest on belated retirement benefits. The Court, aligning with existing batch precedents, directed the respondent to pay 6% penal interest on the from date of retirement to actual disbursement within three months.
Direction to pay penal interest at 6% per annum on belated retirement benefits within three months.
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W.P.(MD) No.1685 of 2020
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 29.01.2020
CORAM:
THE HONOURABLE MR.JUSTICE M.S.RAMESH
W.P.(MD) No.1685 of 2020
T.Krishnamoorthy ... Petitioner
vs.
The Management of Tamilnadu State Transport Corpn., (Madurai) Ltd., Dindigul Region, Rep by its General Manager, Dindigul. ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of writ of mandamus, to direct the respondent to pay interest at the rate of 18% per annum, for the period of delay from 01.06.2018 to 21.09.2019 in paying the amounts paid towards the terminal benefits of the petitioner namely EPF Employee's Contribution, Gratuity, and Encashment of Earned/Sick Leaves within a time frame as may be fixed by this Court and without affecting his right to claim balance amounts towards those benefits.
For Petitioner : Mr.S.Arunachalam
For Respondent : Mr.J.Senthilkumariah Standing Counsel
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 22.09.2019 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 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 https://hcservices.ecourts.gov.in/hcservices/ procedure.
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W.P.(MD) No.1685 of 2020
4.The learned Standing Counsel appearing for the respondents would submit that in view of the financial burden cast on the respondent 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 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, 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.
Assistant Registrar (Records)
// True Copy //
cp
+1 CC to M/s.J.SENTHIL KUMARAIAH, Advocate ( SR-3628[F] dated 29/01/2020 )
JMN(10.02.2020) 2P : 2C
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2 issues framed by the court
Whether interest should be paid on belated terminal benefits including EPF, Gratuity, and encashed leaves.
Whether the petitioner is entitled to 6% or 18% interest on the delay period.
T.Krishnamoorthy
The Management of Tamilnadu State Transport Corpn., (Madurai) Ltd.
M.S.Ramesh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
