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A. Singaravelu v/s The Managing Director, The State Express Transport Corporation Tamil Nadu Ltd., Chennai & Another

    W.P.(MD). No. 22411 of 2011

    Decided On, 08 December 2017

    At, Before the Madurai Bench of Madras High Court

    By, THE HONOURABLE MR. JUSTICE P.D. AUDIKESAVALU

    For the Petitioner: S. Govindan, Advocate. For the Respondents: K. Sathyasingh, Advocate.



Judgment Text


(Prayer: Writ Petition filed under Article 226 of the Constitution of India, to issue a writ of Mandamus, directing the respondents to sanction and settle the retirement benefits such as Gratuity Surrender Leave Salary for 225 days, Social Security Scheme Benefit, I.R.T. Contribution, Employees Retirement Benefit Scheme benefits and other Retirement Benefits applicable to the Managerial Cadre along with 18% Interest per annum within a stipulated period.)

1. This Writ Petition has been filed to direct the respondents to sanction and settle the retirement benefits such as Gratuity Surrender Leave Salary for 225 days, Social Security Scheme Benefit, I.R.T. Contribution, Employees Retirement Benefit Scheme benefits and other Retirement Benefits applicable to the Managerial Cadre along with 18% Interest per annum within a stipulated period.

2. Heard Mr.S.Govindan, learned counsel appearing for the petitioner and Mr.K.Sathyasingh, learned counsel, who take notice on behalf of the respondents. By consent of both parties, this Writ Petition is taken up for final disposal at the admission stage itself.

3. It is brought to the notice of this Court by the learned counsel on both sides that a Division Bench of this Court by order dated in W.P. (MD) Nos.383 to 457 of 2015, while dealing with the payment of terminal benefits of the employees of the Transport Corporation has passed the following order:

“The learned Additional Advocate General submits that he has obtained written instructions vide letter No. 7945/E/2015-2 dated 11/6/2015 that the terminal benefits of the appellants would be settled through twelve equal monthly installments, carrying interest of 6% p.a.

2. The said statement is thus taken on record and the respondents will be bound by the same. We have to keep in mind the judicial pronouncement of the Honourable Supreme Court in D.D.TEWARI (D) THR. LRS. Vs. UTTAR HARYANA BIJLI VITRAN NIGAM LTD & ORS (2014 (9) SCALE – 78), wherein it is held that in case of any delay in making the payment of the installments, the interest payable would become 18% p.a., for the delayed period apart from any other remedy which may be available to the appellants for non-compliance of undertaking given to this Court.

3. The installments to be paid from July 2015 and each installments should be paid on or before 7th of each month.

4. The Writ Appeals are disposed of accordingly. No costs.

Consequently, the connected Miscellaneous Petitions are closed.”

4. Since the petitioner has sought for a similar relief of payment of terminal benefits, this Writ Petition is disposed of with the following directions:

(i) the respondents shall inform the eligible amount to be paid to the petitioner on or before 30th December, 2017;

(ii) terminal benefits shall be paid to the petitioner in 12 equal monthly installments, carrying interest at 6% p.a. commencing from February, 2018, which should be paid on or before 7th day of each month;

(iii) in the event of default of payment of installments, the defaulted amount shall carry intere

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st at the rate of 18% per annum for the delayed period; (iv) in the event of default of payment of the installments or there is any factual dispute on computation of the aforesaid amounts resulting in short payment, the petitioner shall be at liberty to pursue the available remedies for the same in accordance with law. No costs.
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