In a writ petition for terminal benefits, the Court rejected the respondent's request to pay interest in installments due to financial burden and directed payment at 6% per annum within three months to prevent further prejudice to the retired employee.
A direction was issued to pay penal interest at 6% per annum on belated retirement benefits within three months.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P.(MD) No.3759 of 2020
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 25.02.2020
CORAM:
THE HONOURABLE MR.JUSTICE M.S.RAMESH
W.P.(MD) No.3759 of 2020
P.Somu
... Petitioner
Vs.
The Management of
Tamil Nadu State Transport Corporation (Tirunelveli) Ltd., Tirunelveli Region,
rep., by its General Manager, Tirunelveli.
... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of writ of mandamus, directing the respondent to pay interest at the rate of 18% per annum for the period of delay from 01.03.2018 to 02.11.2018 in paying the amounts 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.R.Rajamohan 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 03.11.2018 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 identical cases, a batch of writ petitions were entertained by this Court and directions have been issued to the respondents to pay interest, at the rate of 6% per annum on the belated payment of the terminal benefits. This Court does not intend to deviate from such orders passed in similar cases.
4.The learned Standing Counsel appearing for the respondent would submit that in view of the financial burden cast on the https://hcservices.ecourts.gov.in/hcservices/
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W.P.(MD) No.3759 of 2020
respondent Corporation, they may be permitted to pay the interest on the belated payment in 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.
// True Copy //
/ /2020 Sub Assistant Registrar(CS)
Rmk
To
The Management of
Tamil Nadu State Transport Corporation (Tirunelveli) Ltd., Tirunelveli Region,
rep., by its General Manager, Tirunelveli.
+1 CC to M/s.R.RAJAMOHAN, Advocate ( SR-8140[F] dated 25/02/2020 )
W.P.(MD) No.3759 of 2020 25.02.2020
rmk TK/SAR. /09.03.2020/2P/3C
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2 issues framed by the court
Whether the respondent corporation should be directed to pay penal interest on belatedly settled retirement benefits.
Whether the interest should be paid in installments or as a lump sum.
1 provisions across 1 enactments
P.Somu
Tamil Nadu State Transport Corporation (Tirunelveli) Ltd.
M.S.RAMESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
