The High Court of Madras, addressing a writ petition by a retired employee, directed the employer to pay 6% per annum interest on belated terminal benefits from the date of retirement until actual payment.
Direction to settle 6% per annum interest on belated terminal benefits from retirement date until payment within four weeks.
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.No. 2823 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.02.2024
CORAM
THE HONOURABLE MR.JUSTICE BATTU DEVANAND
W.P.No. 2823 of 2024
K. Jothivel
... Petitioner
Vs.
1.The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited, No.12, Ramakrishna Road, Salem – 636 007.
2.The General Manager, Tamil Nadu State Transport Corporation (Salem) Limited, Dharmapuri Region, Bharathipuram, Dharmapuri.
3.The Administrator, Tamil Nadu State Transport Corporation, Employees Post Retirement Welfare Fund Scheme, Thiruvallurvar House, Pallavan Salai, Chennai – 600 002. ... Respondents
Writ petition is filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to disburse the interest for belated payment of Provident Fund, Gratuity, Earned Leave Salary amount, Social Welfare amount and Pension Commutation with interest within the stipulated time as may be fixed by this Court.
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For Petitioner : Mr. J. Pradeep
For Respondents : Mr. K. Raja, for R1 & R2 Standing Counsel Mr. C.S.K. Sathish, for R3 Standing Counsel O R D E R
W.P.No. 2823 of 2024
With the consent of both the parties, this Writ Petition is taken up for final disposal at the admission stage itself.
2 . The petitioner herein had retired from service on 30.06.2022 on
reaching the age of superannuation. However, his terminal benefits came to be settled belatedly and the respondents have not paid interest for the belated payment. In this regard, the petitioner had given a representation to the respondents on 20.01.2024, which is yet to be considered.
3 . This Court, in various decisions, have already taken a view that in all
cases of belated payment of the terminal benefits, the concerned employee would be entitled for interest at the rate of 6% per annum. In this background, this Court is of the view that if the respondents are directed to pay interest on the belated payment of
the terminal benefits of the petitioner, the ends of justice could be secured.
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W.P.No. 2823 of 2024
4 . In the light of the above observations, there shall be a direction to the
first respondent herein to settle the interest amount at the rate of 6% per annum on the belated payment of the terminal benefits from the date of the petitioner's retirement till the date of actual payment, within a period of four weeks from the date of receipt of a copy of this order.
5 . With the above direction, the Writ Petition stands disposed of. No costs.
08.02.2024
Index :Yes/No Neutral Citation :Yes/No
AT
To 1.The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited, No.12, Ramakrishna Road, Salem – 636 007.
2.The General Manager, Tamil Nadu State Transport Corporation (Salem) Limited, Dharmapuri Region, Bharathipuram, Dharmapuri.
3.The Administrator, Tamil Nadu State Transport Corporation, Employees Post Retirement Welfare Fund Scheme, Thiruvallurvar House, Pallavan Salai, Chennai – 600 002.
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W.P.No. 2823 of 2024
BATTU DEVANAND, J.
AT
W.P.No. 2823 of 2024
08.02.2024
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3 issues framed by the court
Whether the petitioner is entitled to interest on belated payment of terminal benefits.
What rate and period for interest calculation on belated payment of terminal benefits.
How to dispose of the writ petition.
1 provisions across 1 enactments
K. Jothivel
The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited
The General Manager, Tamil Nadu State Transport Corporation (Salem) Limited
The Administrator, Tamil Nadu State Transport Corporation, Employees Post Retirement Welfare Fund Scheme
BATTU DEVANAND
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
