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R. Selvakumar v. the Managing Director

Madras HC9 Jan 2025WP/669/2025

Case brief

AI extract

What is this about?

Madras High Court; V. Bhavani Subbaroyan J.; W.P.No.669 of 2025; writ of mandamus; Article 226; TNSTC Salem Ltd.; TNSTC Employees Pension Trust; retired Special Grade Conductor; terminal benefits belated settlement; Provident Fund; Gratuity; leave encashment; ERBS amount; last 11 days salary; 6% interest for belated payment; 12% interest on default; eight weeks; disposed; no costs.

What did the court decide?

Respondent/Corporation directed to pay the eligible amount payable to the petitioner with interest at 6% per annum for the delay period, within eight weeks of receipt of the order; on failure to pay within that time frame, the amount fetches interest at 12% per annum from the due date till actual disbursement. ¶38

R. Selvakumar Vs the Managing Director — 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 disbursement of interest at 6% for the belated payment of Provident Fund and Gratuity. +1 more

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Court's answer

The 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.

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Ratio / Principle

The payment of the eligible amount with 6% per annum interest shall be made within a period of 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 the rate of 12% per annum from the date on which the amount became due and payable till the date of actual disbursement.ratio¶37

Detailed headnote1 paragraphs

Madras High Court (V. Bhavani Subbaroyan, J.), W.P.No.669 of 2025, decided 09.01.2025 — A retired Special Grade Conductor of Tamil Nadu State Transport Corporation (Salem) Ltd., who retired on 31.05.2022 but whose terminal benefits were settled only on 22.05.2023, filed a Writ of Mandamus (Article 226 of the Constitution of India) seeking disbursal of 6% interest for belated payment of Provident Fund and Gratuity and payment of unsettled leave encashment amount, ERBS amount and last 11 days salary, after a representation of 24.12.2024 drew no response. Taking up the petition for disposal at admission by consent, the Court directed the Respondent/Corporation to pay the eligible amount with interest at 6% per annum for the delay period within eight weeks from receipt of a copy of the order, and made clear that default would attract interest at 12% per annum from the date the amount became due and payable till actual disbursement. Writ Petition disposed of; no order as to costs.

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W.P.No. 669 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.669 of 2025

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R.Selvakumar .. Petitioner

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Versus

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1.The Managing Director

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Tamil Nadu State Transport Corporation (Salem) Ltd., No.12, Ramakrishna Road,

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Salem 636 007.

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2.The General Manager

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Tamil Nadu State Transport Corporation (Salem) Ltd., Dharmapuri Region, Bharathipuram,

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Dharmapuri.

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3.The Administrator,

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TNSTC Employees Pension Trust, Thiruvalluvar House, No.2, Pallavan Salai, Chennai 600 002.

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...Respondents

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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 disburse

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the 6% interest for belated payment of Provident Fund, Gratuity and

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1/6

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

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W.P.No. 669 of 2025

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consequently direct the respondents to pay the unsettled benefits of leave encashment amount, ERBS amount and last 11 days salary within the stipulated time as may be fixed by this Hon'ble Court.

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For Petitioner : Mr.J.Pradeep For Respondents : Mr.K.Raja, 1 & 2 Standing Counsel For Respondent : Mr.C.S.K.Sathish 3 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, directing the respondents to disburse the 6% interest for belated payment of Provident Fund, Gratuity and consequently direct the respondents to pay the unsettled benefits of leave encashment amount, ERBS amount and last 11 days salary within the stipulated time as may be fixed by this Court.

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

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W.P.No. 669 of 2025

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3.The case of the petitioner is that the petitioner joined the Respondent Transport Corporation as conductor on 07.03.1992 and retired as Special Grade Conductor on 31.05.2022. Inspite the petitioner retired on 31.05.2022 his terminal benefits were settled only on 22.05.2023. 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 24.12.2024. 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 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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W.P.No. 669 of 2025

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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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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. 669 of 2025

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