Retired Tamilnadu Civil Supply Corporation employees sought interest on gratuity paid years after retirement, relying on a 2014 circular. The court noted apprenticeship-period gratuity claims were excluded under Section 2(e) of the Payment of Gratuity Act and dismissed the writ petitions.
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W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 14.03.2024
CORAM:
THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN
W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022 and WMP.Nos.2127 & 2135 of 2022
WP.No.1965 of 2022
M.Krishnan ... Petitioner
Vs.
PRAYER:
Writ Petition is filed under Article 226 of Constitution of India
praying to issue a writ of certiorarified mandamus calling for the records
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W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
in Na.Ka.No.AGR2/50267/2021 on the file of the respondent dated 02.09.2021 and quash the same as illegal and direct the respondents to
pay the 12% interest on the belated payment to the petitioner as per the
Circular dated 19.05.2014.
For Petitioner in all WP's : Mr.A.Vinupradha
For Respondents in all WP's : Mr.C.Selvaraj,
COMMON ORDER
These writ petitions have been filed challenging the order
passed by the first respondent dated 02.09.2021, thereby rejected the claim of interest on belated payment.
Corporation. They had been settled with terminal benefits only after many years from the date of retirement. Therefore, they submitted representation seeking interest for the gratuity amount from the date on which the amount became due. As per the circular dated 19.05.2014 issued by the Managing Director of the Tamilnadu Civil Supply
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W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
Corporation revealed that during 1978-1987 Trainee Shop Assistants / Trainee Bill Clerks were recruited in Amudham Village Fair Price Shops in Thanjavur, Cuddalore, Dharmapuri and Tirunelveli Districts under the Special Scheme of Corporation Retail Trade Development Training Programme. They were initially paid monthly stipend of Rs.100/- and later increased to Rs.350/- per month. As per the Government order in GO.Ms.No.1204 Cooperation, Food and Consumer Protection Department dated 11.08.1987, all these Amudham Village Fair Price Shops have been transferred to Cooperative Societies from 01.10.1987 by giving an option to the Trainee Bill Clerks / Trainee Shop Assistants, either they can go over to the Cooperative Societies or to remain in Tamilnadu Civil Supply Corporation. Those who had preferred to work in the Tamilnadu Civil Supply Corporation were absorbed as Packer in the year 1989 and subsequently, they were promoted as Bill Clerks. Therefore, those period were not taken into account for calculating gratuity. However, subsequent to the resolution, the period was also taken for the purpose of calculating gratuity. Now the petitioners are seeking interest for the belated payment of gratuity.
W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
14.03.2024
Neutral citation:Yes/No Index: Yes/No Speaking/Non-speaking order lok
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W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
To
W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
G.K.ILANTHIRAIYAN, J.
lok
W.P.Nos.1965, 1966, 1971, 1974 & 1976 of 2022
14.03.2024
1 issue framed by the court
Whether retired employees whose gratuity was paid belatedly are entitled to interest on the delayed payment as per the Corporation's circular dated 19.05.2014.
3 provisions across 2 enactments
M.Krishnan
The General Manager(Administration) Gratuity Trust Fund, Tamilnadu Civil Supply Corporation Ltd., Head Office, Kilpauk, Chennai-10
The Regional Manager, Tamilnadu Civil Supply Corporation Ltd., Regional Office, Vellore
The Regional Manager, Tamilnadu Civil Supply Corporation Ltd., Regional Office, Villupuram
G.K.ILANTHIRAIYAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
