Disposed

R.Sekar v. the Managing Director

Madras HC30 Jan 2024WP/1798/2024

Case brief

AI extract

What is this about?

Retired transport corporation employee sought interest on belated disbursement of provident fund, gratuity, leave salary, leave surrender arrears and seven days' salary. Following an earlier identical order, the court directed payment of 6% per annum interest from retirement date till actual disbursement within eight weeks.

What did the court decide?

Direction to pay 6% per annum interest on belated terminal benefits from retirement date till actual disbursement, within eight weeks; no costs.

R.Sekar Vs the Managing Director — Pension and Retirement Benefits | Madras HC (2024)

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W.P.No.1798 of 2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 30.01.2024

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CORAM:

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THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN

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W.P.No.1798 of 2024

R.Sekar

... Petitioner

-Vs-

1.The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited, No.12 Ramakrishna Road, Salem-636 007.

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2.The General Manager, Tamil Nadu State Transport Corporation (Salem) Limited, Dharmapuri Region, Bharathipuram, Dharmapuri. ... Respondents

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Prayer : Writ Petition filed under Article 226 of Constitution of India praying for the issuance of a Writ of Mandamus, directing the respondents to disburse the belated payment of interest amount of Provident Fund, Gratuity and Leave salary amounts and other unsettled benefits Arrears of Leave Surrender and 7 days salary with effect from 01.10.2019 within the stipulated time as may be fixed by this Honourable Court.

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Page 1 of 6

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https://www.mhc.tn.gov.in/judis

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For Petitioner : Mr.N.Desinghu For Respondents : Mr.K.Raja Standing Counsel

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W.P.No.1798 of 2024

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ORDER

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This Writ Petition has been filed for direction directing the respondents to disburse the belated payment of interest amount of Provident Fund, Gratuity and Leave salary amounts and other unsettled benefits Arrears of Leave Surrender and 7 days salary with effect from 01.10.2019 within the stipulated time as may be fixed by this Honourable Court.

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Heard the learned counsel on either side and perused the materials available on record.

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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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Page 2 of 6 https://www.mhc.tn.gov.in/judis

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W.P.No.1798 of 2024

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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 the 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 respondents could be directed

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to pay the interest on the belated payment, at the rate of 6% per annum,

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as ordered in the above writ petition.

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5. In the light of the above findings, there shall be a direction to the respondents herein to pay the interest on the belated payment of the terminal benefits to the petitioner at the rate of 6% per annum, commencing from the date of the retirement, till the date of actual disbursement, within a period of eight weeks from the date of receipt of a copy of this order.

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Page 3 of 6 https://www.mhc.tn.gov.in/judis

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W.P.No.1798 of 2024

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With the above directions, this writ petition is disposed of.

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There shall be no order as to costs.

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30.01.2024

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(½)

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Internet: Yes Index : Yes/No Speaking/Non Speaking order mn

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Page 4 of 6 https://www.mhc.tn.gov.in/judis

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W.P.No.1798 of 2024

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1.The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited, No.12 Ramakrishna Road, Salem-636 007.

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2.The General Manager, Tamil Nadu State Transport Corporation (Salem) Limited, Dharmapuri Region, Bharathipuram, Dharmapuri.

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Page 5 of 6 https://www.mhc.tn.gov.in/judis

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W.P.No.1798 of 2024

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G.K.ILANTHIRAIYAN. J,

W.P.No.1798 of 2024

30.01.2024

Page 6 of 6 https://www.mhc.tn.gov.in/judis

R.Sekar v. the Managing Director

Case brief

What is this about?

What did the court decide?

R.Sekar v. the Managing Director

Case brief

What is this about?

What did the court decide?

What the court decided

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