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Palanichamy.v v. The Management of

Madras HC14 Jun 2022WP(MD)/11629/2022

Case brief

AI extract

What is this about?

By consent, the Madurai Bench of the Madras High Court disposed of a writ petition seeking interest on belated terminal benefits. The Court directed the Corporation to pay 6% penal interest from the date of retirement for up to three months, accepting the respondent's request for an extension due to the COVID-19 pandemic.

What did the court decide?

Direction to the respondent to pay 6% penal interest on belated retirement benefits within six months from the date of the order.

Palanichamy.v Vs The Management of — Pension and Retirement Benefits | Madras HC (2022)

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W.P.(MD)No.11629 of 2022

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 14.06.2022 CORAM:

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THE HONOURABLE MR.JUSTICE G.CHANDRASEKHARAN W.P.(MD)No.11629 of 2022

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V.Palanichamy ... Petitioner

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The Management of Tamilnadu State Transport Corporation (Madurai) Ltd., Dindigul Region, Rep by its General Manager, Dindigul. ... Respondent

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PRAYER : Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Mandamus, directing the respondent to pay petitioner interest at the rate of 18 % per annum, for the period of delay from 01.10.2019 to 24.01.2021, in paying the amounts paid towards the petitioner's terminal benefits 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.

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ORDER

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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. Aggrieved against the belated settlement of the terminal benefits to the petitioner, he has claimed interest on the belated payment in this Writ Petition.

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3. In 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:-

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

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W.P.(MD)No.11629 of 2022

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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.”

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4. This Court is of the view that the respondent 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.

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5. At this juncture, Mr.J.Senthilkumaraiah, 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.

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6. The learned counsel for the petitioner also does not have any objections to the same.

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7. In this background, there shall be a direction to the respondent 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 three (3) months from the date of receipt of a copy of this order.

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

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// True Copy //

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/06/2022 Sub Assistant Registrar(CS)

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TO:

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The General Manager,

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Management of Tamilnadu State Transport Corporation (Madurai) Ltd., Dindigul Region, Dindigul.

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RD(22.06.2022) 2P 2C https://hcservices.ecourts.gov.in/hcservices/

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Palanichamy.v v. The Management of

Case brief

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Palanichamy.v v. The Management of

Case brief

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