T.Nagarajan Vs The Managing Director — Madras HC (2025) — LawSathi Research

T.Nagarajan Vs The Managing Director — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Writ appeal disposed of with a direction to the respondent management to pay interest at 10% per annum on the belatedly settled gratuity for the period 01.07.2015 to 27.01.2018, such payment to be made once the inter se dispute between the two wives is settled in the manner known to law; no costs.

Issue for consideration

Whether the appellant is entitled to interest on the gratuity that was belatedly settled on 27.01.2018, for the period from 01.07.2015 to 27.01.2018, in light of Y.K.Singla v. Punjab National Bank (2013) 3 SCC 472, the writ court having granted no interest. +1 more

Court's answer

Following Y.K.Singla v. Punjab National Bank (2013) 3 SCC 472, where gratuity is belatedly paid it carries interest at 10% per annum; the management is obliged to pay interest for the period from 01.07.2015 to 27.01.2018.

Ratio / Principle

The respondent management is directed to pay the interest for the aforesaid period once the inter se dispute between the two wives is settled in the manner known to law.

Detailed headnote1 paragraphs

Gratuity - delayed payment - interest. The appellant, a Secondary Grade Assistant Manager in the respondent transport corporation, retired on 28.05.2007; his retirement benefits were withheld owing to a criminal prosecution, which was quashed by this Court on 30.06.2015 in Crl.O.P.(MD)No.20177 of 2013, yet the gratuity was settled only on 27.01.2018. The learned Single Judge allowed W.P.(MD)No.16907 of 2016 on 13.07.2017 but issued no direction for payment of interest. Allowing the point in the writ appeal, the Division Bench, relying on Y.K.Singla v. Punjab National Bank, (2013) 3 SCC 472, held that the management is obliged to pay interest at 10% per annum for the period 01.07.2015 to 27.01.2018. Since the standing counsel stated that the appellant (since deceased) appears to have contracted a bigamous marriage and that, due to the dispute between his two wives, even family pension remains unclaimed, the Court directed that the interest be paid once the inter se dispute between the two wives is settled in the manner known to law. Writ appeal disposed of; no costs.

W.A(MD) No.1222 of 2020

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

Dated : 19.08.2025

CORAM

THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN AND THE HONOURABLE MR.JUSTICE K.RAJASEKAR

W.A(MD) No.1222 of 2020

T.Nagarajan ... Appellant / Petitioner

Vs.

1.The Managing Director, Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Kumbakonam.

2.The General Manager, Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Karaikudi Region, Karaikudi.

3.The Administrator, Tamil Nadu State Transport Corporation Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai-2.

... Respondents/Respondents

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W.A(MD) No.1222 of 2020

PRAYER: Writ Appeal filed under Clause 15 of Letters Patent, praying this Court to set aside the order passed by the learned Judge in W.P.No. 16907 of 2016, dated 13.07.2017.

For Appellant : Mr.A.Rahul

For Respondents : Mr.S.C.Herold Singh for R1 & R2

: Mr.D.Sivaraman for R3

JUDGMENT

( Judgment of the Court was made by G.R.SWAMINATHAN, J.)

Heard both sides.

The appellant Nagarajan is no more. The appellant was working

as Secondary Grade Assistant Manager in the respondent transport corporation. He retired on 28.05.2007. His retirement benefits were not immediately settled for the reason that he was facing criminal prosecution. The criminal case was quashed by this Court vide order dated 30.06.2015 in Crl.O.P.(MD)No.20177 of 2013. The management ought to have settled the gratuity payable to the appellant immediately thereafter. But then, there was a delay. The gratuity amount was settled

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W.A(MD) No.1222 of 2020

only on 27.01.2018. In the meanwhile, the appellant had filed W.P. (MD)No.16907 of 2016. The learned Judge allowed the writ petition vide order dated 13.07.2017 but did not issue any direction for payment of interest. Aggrieved by this omission, this writ appeal has been filed.

Our attention is to the decision of the Hon'ble Supreme Court reported in 2013 3 SCC 472 (Y.K.Singla Vs. Punjab National Bank). The Hon'ble Superme Court had held that when gratuity is belatedly paid, it would carry interest at the rate of 10% per annum. The management is obliged to pay interest for the period from 01.07.2015 to 27.01.2018.

The learned standing counsel for the corporation states that the appellant appears to have contracted a bigamous marriage and in view of the dispute between two wives, even family pension has not been claimed. We direct the respondent management to pay the interest for the aforesaid period once the inter se dispute is settled between the two wives in the manner known to law.

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W.A(MD) No.1222 of 2020

The writ appeal is disposed of accordingly. No costs.

(G.R.S., J.) (K.R.S., J.) 19.08.2025

Index : Yes / No Internet : Yes / No NCC : Yes / No rmi

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W.A(MD) No.1222 of 2020

G.R.SWAMINATHAN, J.

AND K.RAJASEKAR, J.

rmi

W.A(MD) No.1222 of 2020

19.08.2025

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