Disposed

W.Prabhu Kumar v. Tamil Nadu State Transport Corporation Ltd.

Madras HC1 Mar 2024WP/5292/2024

Case brief

AI extract

What is this about?

Writ petition seeking interest on belated payment of terminal benefits — gratuity, provident fund and leave surrender/earned leave encashment. Following earlier orders in identical matters, the court directed payment of 6% per annum interest from retirement till actual disbursement within eight weeks.

What did the court decide?

Interest at 6% per annum on belated terminal benefits from date of retirement till actual disbursement, payable within eight weeks.

W.Prabhu Kumar Vs Tamil Nadu State Transport… — Pension and Retirement Benefits | Madras HC (2024)

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W.P.No.5292 of 2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 01.03.2024

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CORAM:

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THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN

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W.P.No.5292 of 2024

W.Prabhu Kumar

...Petitioner

-Vs-

The Tamil Nadu State Transport Corporation Ltd, Coimbatore Division I, represented by its Managing Director, No.37, Mettupalayam Road,

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Coimbatore.

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The Administrator, Tamil Nadu Pension Trust, Pallavan Salai, Chennai. ... Respondents

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Prayer : Writ Petition filed under Article 226 of Constitution of India praying

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for the issuance of a Writ of Mandamus, directing the first respondent herein to pay interest, for the delayed payments made with respect of Gratuity, Provident Fund and leave surrender and encashment of Earned Leave along with interest.

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For Petitioner : Mr.D.Anand Raja For R1 : Mr.C.Gouthamaraj Standing Counsel For R2 : Mr.C.S.K.Sathish

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ORDER

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

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Page 1 of 4

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W.P.No.5292 of 2024

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This writ petition has been filed for direction directing the first respondent herein to pay interest, for the delayed payments made with respect of Gratuity, Provident Fund and leave surrender and encashment of Earned Leave along with interest.

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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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“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

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

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Page 2 of 4

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W.P.No.5292 of 2024

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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 to pay

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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. 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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With the above directions, this writ petition is disposed of. There shall be no order as to costs.

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01.03.2024

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

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G.K.ILANTHIRAIYAN. J,

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

Page 3 of 4

W.P.No.5292 of 2024

The Managing Director, The Tamil Nadu State Transport Corporation Ltd, Coimbatore Division I, No.37, Mettupalayam Road, Coimbatore.

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The Administrator, Tamil Nadu Pension Trust, Pallavan Salai, Chennai.

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W.P.No.5292 of 2024

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01.03.2024

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

W.Prabhu Kumar v. Tamil Nadu State Transport Corporation Ltd.

Case brief

What is this about?

What did the court decide?

W.Prabhu Kumar v. Tamil Nadu State Transport Corporation Ltd.

Case brief

What is this about?

What did the court decide?

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