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D. Ramamurthy & Others v/s The Managing Director, Tamil Nadu State Transport Corporation (Villupuram) Ltd., Salamedu, Villupuram & Others


Company & Directors' Information:- TAMIL NADU STATE TRANSPORT CORPORATION (VILLUPURAM) LIMITED [Active] CIN = U60220TN1975SGC006829

Company & Directors' Information:- TRANSPORT CORPORATION OF INDIA LIMITED [Active] CIN = L70109TG1995PLC019116

Company & Directors' Information:- A S TRANSPORT PRIVATE LIMITED [Active] CIN = U60222TN1981PTC008886

Company & Directors' Information:- B K B TRANSPORT PRIVATE LIMITED [Active] CIN = U50300JH1990PTC004226

Company & Directors' Information:- M Y TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U63090UP2002PTC026917

Company & Directors' Information:- V K TRANSPORT PRIVATE LIMITED [Active] CIN = U22219GJ1997PTC032421

Company & Directors' Information:- G S TRANSPORT PVT LTD [Active] CIN = U63090WB1989PTC047780

Company & Directors' Information:- G B TRANSPORT (INDIA) PVT LTD [Active] CIN = U63090WB1979PTC032170

Company & Directors' Information:- V A TRANSPORT PRIVATE LIMITED [Active] CIN = U45202WB1996PTC081673

Company & Directors' Information:- H R T TRANSPORT COMPANY PRIVATE LIMITED [Strike Off] CIN = U63031DL1999PTC102593

Company & Directors' Information:- G M TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60100MH1994PTC076183

Company & Directors' Information:- G L TRANSPORT PRIVATE LIMITED [Active] CIN = U60200CH2010PTC032269

Company & Directors' Information:- R AND P TRANSPORT CO. PVT LTD [Active] CIN = U60231OR2006PTC027280

Company & Directors' Information:- R AND P TRANSPORT CO. PVT LTD [Active] CIN = U60231DL2006PTC149707

Company & Directors' Information:- V. N. TRANSPORT PRIVATE LIMITED [Active] CIN = U63090DL2004PTC125632

Company & Directors' Information:- C AND M TRANSPORT P LTD [Active] CIN = U60300MH1994PTC078458

Company & Directors' Information:- G R C TRANSPORT COMPANY PVT LTD [Strike Off] CIN = U63090WB1988PTC044164

Company & Directors' Information:- E C TRANSPORT LTD [Active] CIN = U63090WB1987PLC043252

Company & Directors' Information:- D G R TRANSPORT PRIVATE LIMITED [Active] CIN = U60231TZ2010PTC016521

Company & Directors' Information:- P T TRANSPORT PVT LTD [Strike Off] CIN = U63090WB1989PTC046423

Company & Directors' Information:- TRANSPORT INDIA PRIVATE LIMITED [Strike Off] CIN = U60230OR2007PTC009590

Company & Directors' Information:- C R TRANSPORT COMPANY PRIVATE LIMITED [Strike Off] CIN = U63090DL2002PTC115826

Company & Directors' Information:- A P M TRANSPORT COMPANY LIMITED [Strike Off] CIN = U60231KL1998PLC012555

Company & Directors' Information:- T. G. TRANSPORT PRIVATE LIMITED [Active] CIN = U02710CT2004PTC017051

Company & Directors' Information:- J. T. TRANSPORT PRIVATE LIMITED [Active] CIN = U63031WB2007PTC112457

Company & Directors' Information:- R S R TRANSPORT PRIVATE LIMITED [Active] CIN = U60210TZ1961PTC000392

Company & Directors' Information:- A & A TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U63010TN2008PTC070171

Company & Directors' Information:- S P TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059085

Company & Directors' Information:- A B TRANSPORT PRIVATE LIMITED [Active] CIN = U60221RJ2000PTC016701

Company & Directors' Information:- G. G. TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60210AS2008PTC008576

Company & Directors' Information:- A P K TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60221TN2005PTC058057

Company & Directors' Information:- S P S TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U63090WB1997PTC085564

Company & Directors' Information:- TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U60210TN1938PTC003051

Company & Directors' Information:- A G L TRANSPORT PRIVATE LIMITED [Active] CIN = U63090TN2005PTC056306

Company & Directors' Information:- W M TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U60210DL2001PTC113547

Company & Directors' Information:- B V M TRANSPORT CO. PRIVATE LIMITED [Strike Off] CIN = U00739KA1998PTC024103

Company & Directors' Information:- A O TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U99999MH1960PTC011783

Company & Directors' Information:- M R TRANSPORT COMPANY PVT LTD [Strike Off] CIN = U63090WB1987PTC042118

Company & Directors' Information:- P P TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U63090DL2003PTC119167

Company & Directors' Information:- D D J TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60210PB1996PTC019190

Company & Directors' Information:- M M TRANSPORT PVT LTD [Strike Off] CIN = U60231PB1979PTC004031

Company & Directors' Information:- J P TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60231PB1997PTC019652

Company & Directors' Information:- N P TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U63090OR2012PTC015128

Company & Directors' Information:- A N G TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U60300MH2013PTC246013

Company & Directors' Information:- L M A TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U63090MH2002PTC135727

Company & Directors' Information:- K. G. N. TRANSPORT PRIVATE LIMITED [Active] CIN = U74999MH2017PTC301073

Company & Directors' Information:- B S TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U63040TG2015PTC097190

Company & Directors' Information:- K AND A TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60200HP2010PTC031455

Company & Directors' Information:- K. C. TRANSPORT PRIVATE LIMITED [Active] CIN = U63030JK2017PTC009897

Company & Directors' Information:- S N TRANSPORT PRIVATE LIMITED [Under Process of Striking Off] CIN = U60200DL2014PTC264029

Company & Directors' Information:- R J TRANSPORT COMPANY PRIVATE LIMITED [Active] CIN = U63010DL2013PTC248305

Company & Directors' Information:- S. K. T. TRANSPORT INDIA PRIVATE LIMITED [Strike Off] CIN = U60230MP2012PTC028886

Company & Directors' Information:- D C V TRANSPORT PRIVATE LIMITED [Strike Off] CIN = U60210TZ1960PTC000375

Company & Directors' Information:- P V E TRANSPORT PRIVATE LIMITED [Active] CIN = U60210TN1961PTC004682

Company & Directors' Information:- THE TRANSPORT COMPANY LIMITED [Dissolved] CIN = U99999MH1940PLC010301

    W.P.No. 15886 of 2020

    Decided On, 19 January 2021

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE S. VAIDYANATHAN

    For the Petitioners: S.T. Varadarajulu, Advocate. For the Respondents: C.S.K. Sathish, Advocate.



Judgment Text

(Prayer: Petition filed under Article 226 of Constitution of India to issue a Writ of Mandamus, directing the respondents to pay interest @ 10% for the belated payment of gratuity, leave salary and commutation of pension amount to the petitioners.)The benefits bestowed by law upon an employee in recognition of his committed continuous loyal and devoted duty by payment of the pension, gratuity, leave salary etc. are in the nature of property.2. This right to property cannot be taken away without following due process of law, as right to property has been recognised under Article 300-A of the Constitution of India.3. It is an accepted position that Gratuity and pension are not the bounties. The concern expressed by the Hon'ble Supreme Court impressing that the retirement dues must be paid in time, is reflected, in the case of Dr.Uma Agarwal vs. State of U.P., reported in (1999) 3 SCC 438, and the observation needs as under:-“....grant of pension is not a bounty but a right of the government servant. The Government is obliged to follow the Rules mentioned in the earlier part of this order in letter and in spirit. Delay in settlement of retiral benefits is frustrating and must be avoided at all costs. Such delays are occurring even in regard to family pensions for which too there is a prescribed procedure. This is indeed unfortunate. In cases where a retired government servant claims interest for delayed payment, the Court can certainly keep in mind the time-schedule prescribed in the Rules/Instructions apart from other relevant factors applicable to each case.”4. The Tamil Nadu State Transport Corporation is a State as defined under Article 12 of the Constitution of India. It is expected to be a model employer and as a State, it is expected to ensure the enjoyment of the fundamental rights to its employees.5. Alleging that after retirement, the only source of survival is the terminal benefits and if it is not paid as per the time schedule prescribed under various enactments, that it would amount to violation of fundamental rights, this petition has been filed.6. It is appropriate to consider the time limit prescribed under payment of gratuity Act, to understand the need for the timely payment of retirement dues. The Payment of Gratuity Act, 1972 reads as under:“4.Payment of gratuity:(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-(a) on his superannuation, or(b) on his retirement or resignation, or(c) on his death or disablement due to accident or disease;Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to the heirs.Explanation.- For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.(2) to (6) ....”7. Delay in payment:Rule 45-A of the Tamil Nadu Pension Rules, 1978 provides that interest shall be payable on the belated payment beyond a period of two months from the date of retirement of a Government Servant.8. The Hon'ble Division Bench of this Court in the case of Government of Tamil Nadu, Rep. by its Secretary to Government, Revenue Department and the District Collector, Erode vs. M.Deivasigamani, reported in 2009 (3) MLJ 01 held that an employee is entitled to interest on belated payment of pension and other retiral benefits, even in the absence of statutory rules / administrative instructions or guidelines and that he can claim interest under Part III of the Constitution, relying on Articles 14, 19 and 21 of the Constitution.9. Coming to the facts of the present case, the petitioners joined the respondent Corporation as Conductor and Drivers and retired from service on different dates as Special Grade Conductor / Drivers on reaching the age of superannuation. They have now filed this writ petition seeking for a direction to the respondents to pay interest for the belated payment of gratuity, leave salary and commutation of pension amount.10. The First Bench of this Court in similar matter has passed an order dated 12.06.2015 in W.A.(MD) Nos.383 to 457 of 2015, issuing direction to the transport Corporations to settle the terminal benefits of its employees in equal monthly installments and to pay 6% interest on the terminal benefits payable to the workman. The Bench has also held that workman is entitled to 18% interest for the defaulted period of installments.11. In these circumstances, the writ petition is disposed of with the following directions:-I) A direction is issued to the transport corporation to pay interest @ 6% per annum, as per the Division Bench judgment referred to above, for the belated payment of gratuity, leave salary and commutation of pension amount that are yet to be settled, in six equal monthly instalments, commencing from 01.03.2021. In case of delay in making ins

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talments within the time stipulated supra, the interest payable could be 10% for the delayed period to be recovered from the Officer responsible for disbursement of the amount;ii) The aforesaid direction to pay interest would not preclude the workmen to question the computation of any of the terminal benefits, if the same is paid lesser than the amount to which, they are entitled to receive. Likewise, if the petitioners have any grievance that they are entitled to interest for the amount already settled, they can agitate the same as per law, if they are entitled. No costs.
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