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R. Perumal v. Tamil Nadu State Transport Corporation (Kovai) Ltd.

Madras HC24 Jan 2025WP/2117/2025

Case brief

AI extract

What is this about?

Madras High Court writ petition disposed: retired conductor R.Perumal, Tamil Nadu State Transport Corporation (Kovai) Ltd.; belated payment of terminal benefits (PF, Gratuity, Earned Leave) after 578 days; interest on delayed retirement benefits; 6% per annum interest direction with eight-week deadline; 12% default interest escalation clause; Writ of Mandamus; Article 226 Constitution of India; representation dated 22.11.2024; no costs.

What did the court decide?

Writ petition disposed of with directions to the respondent Corporation to pay the eligible terminal benefit amount with interest at 6% per annum for the delay period within eight weeks, failing which the amount will attract 12% per annum interest from the due date till actual disbursement; no order as to costs. ¶28

R. Perumal Vs Tamil Nadu State Transport Corporation… — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioner, whose PF, Gratuity and Earned Leave were settled 578 days after his retirement on 31.03.2023, is entitled to interest on the belated payment, and at what rate and within what time it must be paid.

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Court's answer

The Court directed the Respondent/Corporation to pay the eligible amount payable to the petitioner together with interest at 6% per annum for the delay period in settling the amount (rather than the 15% sought).

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Ratio / Principle

The payment with 6% interest shall be made within eight weeks from the date of receipt of a copy of the order.

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Key takeaways

If the amount is not paid within the time frame fixed by the Court, it will fetch interest at 12% per annum from the date on which the amount became due and payable till the date of actual disbursement.ratio¶26

Detailed headnote1 paragraphs

Writ Petition (Madras High Court, V. Bhavani Subbaroyan, J., 24.01.2025) by a retired Special Grade Conductor of Tamil Nadu State Transport Corporation (Kovai) Ltd. who retired on 31.03.2023 but whose PF, Gratuity and Earned Leave were settled only on 30.10.2024 (a delay of 578 days); he sought a Writ of Mandamus under Article 226 for interest at 15% per annum on the belated payment. By consent the petition was taken up for final disposal at admission. The Court, noting the respondent's undertaking to pay the eligible amount with 6% interest per its earlier orders, directed the Corporation to pay the eligible amount with interest at 6% per annum for the delay period within eight weeks, with an escalation clause that non-payment within the time frame would attract 12% per annum interest from the date the amount fell due until actual disbursement. Petition disposed of; no order as to costs.

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W.P.No. 2117 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 24.01.2025

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CORAM:

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THE HONOURABLE MRS. JUSTICE V.BHAVANI SUBBAROYAN

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W.P.No.2117 of 2025

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R.Perumal(JO5824) .. Petitioner

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Versus

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Tamil Nadu State Transport Corporation (Kovai) Ltd., Rep by its The Managing Director, No.37, Mettupalayam Road, Coimbatore 43.

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...Respondent

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Prayer: This petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing the respondent to pay the petitioner interest at the rate of 15% per annum for the belated payment of 578 days in paying the petitioner PF, Gratuity and Earned Leave with interest at the rate of 15% within a specified time, as may be fixed by this Hon'ble Court.

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For Petitioner : Mr.R.Krishnaswamy For Respondent : Mr.Murali Vinodh, Standing Counsel

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

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W.P.No. 2117 of 2025

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ORDER

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By consent of both parties, this writ petition is taken up for final disposal at the stage of admission itself.

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This writ petition is filed seeking to issue a Writ of Mandamus, directing the respondent to pay the petitioner interest at the rate of 15% per annum for the belated payment of 578 days in paying the petitioner PF, Gratuity and Earned Leave with interest at the rate of 15% within a specified time, as may be fixed by this Court.

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3.The case of the petitioner is that the petitioner joined the Respondent Transport Corporation as Conductor on 23.05.1987 and retired as Special Grade Conductor on 31.03.2023. Inspite the petitioner retired on 31.03.2023 his terminal benefits were settled only on 30.10.2024. Hence, the petitioner is entitled to interest for the belated payment made by the respondent due to which, the petitioner gave a representation to the respondents on 22.11.2024. However, no action has been taken by the respondents till date. Hence this petition.

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W.P.No. 2117 of 2025

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4.The learned counsel for the petitioner submitted that it would be

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suffice if this Court issues a direction to the respondents to consider the petitioner's representation and pass orders.

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5.The learned standing counsel appearing for the respondents submitted that the representation of the petitioner will be considered and will pay the eligible amount with 6% interest P.A as per the earlier orders of this Court.

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6.Considering the facts of the case and the submissions made by either side counsel, this Court directs the Respondent/Corporation to pay the eligible amount as payable to the petitioner along with interest at the rate of 6% per annum for the delay period in settling the said amount. This payment shall be made within a period of eight weeks from the date of receipt of a copy of this order. It is made clear that if the amount is not paid within the time frame fixed by this Court, it will fetch an interest at the rate of 12% per annum from the date on which the amount became due and payable till the date of actual disbursement.

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W.P.No. 2117 of 2025

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7.With the above directions, this Writ Petition stands disposed of.

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No order as to costs.

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24.01.2025

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