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E.Gunasekaran v. Metropolitan Transport Corporaiton Limited

Madras HC9 Jan 2025WP/530/2025

Case brief

AI extract

What is this about?

Interest on belated payment of terminal benefits; PF, earned leave salary, gratuity, commuted value of pension; Metropolitan Transport Corporation Ltd.; Tamil Nadu State Transport Employees Pension Fund Trust; Article 226 mandamus; 6% per annum interest for delay period; 12% per annum default interest; eight-week compliance window; representation dated 11.11.2024; retirement 30.06.2022; settlement 02.06.2023; writ petition disposed of.

What did the court decide?

Payment of the eligible terminal-benefit amount with 6% per annum interest for the delay period within eight weeks; failing timely payment, 12% per annum interest from the date the amount became due and payable until actual disbursement. ¶41

E.Gunasekaran Vs Metropolitan Transport Corporaiton… — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioner is entitled to interest for the belated payment of his PF, earned leave salary, gratuity and commuted value of pension, and at what rate. +1 more

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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 the rate of 6% per annum for the delay period in settling the amount, payment to be made within eight weeks from the date of receipt of a copy of the order.

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Ratio / Principle

Default stipulation: 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.

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Detailed headnote1 paragraphs

Madras High Court (V.Bhavani Subbaroyan, J.), W.P.No. 530 of 2025, decided 09.01.2025: E.Gunasekaran, who served the Metropolitan Transport Corporation Ltd. as Driver from 13.04.1988 and retired as Traffic Inspector on 30.06.2022, whose terminal benefits (PF, earned leave salary, gratuity and commuted value of pension) were settled only on 02.06.2023, sought a Writ of Mandamus under Article 226 of the Constitution directing payment of interest at 12% per annum on the belated payment, his representation of 11.11.2024 having gone unanswered. Taken up by consent for final disposal at admission, the Court, noting the respondents' undertaking, directed the Respondent/Corporation to pay the eligible amount with interest at 6% per annum for the delay period within eight weeks of receipt of a copy of the order, failing which the amount would fetch 12% per annum interest from the date it became due and payable till actual disbursement. Writ petition disposed of; no order as to costs.

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W.P.No. 530 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 09.01.2025

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CORAM:

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THE HONOURABLE MRS. JUSTICE V.BHAVANI SUBBAROYAN

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W.P.No.530 of 2025

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E.Gunasekaran .. Petitioner

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Versus

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1.Metropolitan Transport Corporation Ltd., Rep by its Managing Director, No.2, Pallavan Salai,

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Chennai 600 002.

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2.The Administrator,

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Tamil Nadu State Transport Employees Pension Fund Trust, Thiruvalluvar Illam,

Anna Salai,

Chennai 600 002.

...Respondents

Prayer: This petition is filed under Article 226 of the Constitution of

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India to issue a Writ of Mandamus, directing the respondents to pay the petitioner interest for the belated payment of his PF, earned leave salary,

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Gratuity and commuted value of pension at the rate of 12% per annum,

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within a specified time as may be fixed by this Hon'ble Court.

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For Petitioner : Mr.R.Krishnaswamy

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

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W.P.No. 530 of 2025

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For Respondent 1 : Mr.Balaji, Standing Counsel For Respondent 2 : Mr.C.S.K.Sathish Standing Counsel

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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,

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directing the respondents to pay the petitioner interest for the belated payment of his PF, earned leave salary, Gratuity and commuted value of pension at the rate of 12% per annum, 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 in the Respondent Transport Corporation as Driver on 13.04.1988 and retired as Traffic Inspector on 30.06.2022. Inspite the petitioner retired on

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W.P.No. 530 of 2025

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30.06.2022 his terminal benefits were settled only on 02.06.2023. 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 11.11.2024. However, no action has been taken by the respondents till date. Hence this petition.

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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

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by either side counsel, this Court directs the Respondent/Corporation to pay the eligible amount as payable to the petitioner along with interest at

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W.P.No. 530 of 2025

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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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7.With the above directions, this Writ Petition stands disposed of. No order as to costs.

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09.01.2025

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Speaking order : Yes/No Neutral citation : Yes/No Index : Yes/No smn

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W.P.No. 530 of 2025

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