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2023 Supreme(Mad) 2604

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
BATTU DEVANAND, J.
S. Marikannu – Appellant
Versus
The Management of Tamil Nadu State Transport Corporation (Madurai) Ltd, Madurai Region, Rep by its General Manager, Madurai & Another – Respondents
W.P. (MD)No. 1344 of 2017 & W.M.P (MD)No. 1110 & 1111 of 2017
Decided On : 23-08-2023

Advocates appeared:
For the Petitioner:S. Arunachalam, Advocate. For the Respondents:R1, J. Senthil Kumariah, R2, A.P. Muthu pandian, Advocates.

The main legal point established in the judgment is the entitlement of an employee to interest on belated payment of retirement benefits due to delays caused by pending disciplinary proceedings and criminal cases.

Headnote:

Writ Petition - Retirement Benefits - Article 226 of the Constitution of India - [No specific act sections referenced]

Fact of the Case:

The petitioner, a former employee, filed a Writ Petition seeking the settlement and payment of retirement and pension benefits with 18% interest per annum. The petitioner was retired from service on 31.05.2016, and the retirement benefits were not settled due to pending disciplinary proceedings and a criminal case.

Finding of the Court:

The court found that the petitioner was entitled to interest on the belated payment of retirement benefits, as there was a delay in settling the pensionary and other terminal benefits by the first respondent.

Issues: The main issue was the delay in settling the retirement benefits due to pending disciplinary proceedings and a criminal case against the petitioner.

Ratio Decidendi: The court relied on previous orders directing the payment of interest on belated retirement benefits and allowed the Writ Petition, granting the petitioner 6% interest per annum on the belated payment of retirement benefits.

Final Decision: The Writ Petition was allowed, and the respondents were directed to pay interest to the petitioner at the rate of 6% per annum on the belated payment of the retirement benefits within three months.

JUDGMENT

(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, seeking for the issuance of Certiorarified Mandamus calling for the records from the first Respondent relating to the impugned order dated 31.05.2016 in Ref: Administration/A5/101/2016-40 of the first respondent, quash the same and consequently to direct the respondents to settle and pay all the retirement and pension benefits of the petitioner with 18% interest per annum.)

1. This Writ Petition has been filed against the order dated dated 31.05.2016 in Ref: Administration/A5/101/2016-40 of the first respondent and for consequential direction to the respondents to settle and pay all the retirement and pensionary benefits of the petitioner with 18% interest per annum.

2. Heard the learned counsel for the petitioner, learned Standing Counsel appearing for the respondents and perused the materials available records.

3. The case of the petitioner is that he was appointed as Conductor on 26.12.1986 in the first respondent Corporation. Subsequently, he was promoted as Special Grade Conductor. Due to the dispute took place within the premises of the Melur Branch of the first respondent on 28.01.2016 between the employees, a case was registered at Melur Police Station in Crime No.71 of 2016 wherein, the petitioner was shown as one of the accused. On 29.01.2016 the petitioner was kept under suspension and subsequently, the suspension order was revoked on 03.02.2016. A charge memo was issued on 25.02.2016 to the petitioner and the petitioner has submitted his explanation. On the basis of enquiry report dated 12.04.2016, a show cause notice dated 26.04.2016 was issued to the petitioner asking his explanation. The petitioner gave explanation on 05.02.2016. The enquiry is pending. Under such circumstances, on 31.05.2016, the petitioner completed the age of 58 years which is the age of superannuation and the first respondent order dated 30.05.2016 retiring the petitioner from service with a condition that the petitioner was permitted to retire without prejudice to the outcome of the disciplinary proceedings and the criminal case. Thereafter, the first respondent did not settle the pensionary benefits to the petitioner. On enquiry the first respondent informed that since the disciplinary proceedings are pending against the petitioner, the terminal benefits cannot be settled and that only after conclusion of the same, decision will be taken with regard to payment of the said benefits.

4. The learned counsel for the petitioner submits that the impugned order dated 30.05.2016 is unsustainable under law. The first respondent cannot continue the disciplinary proceedings based on the charge memo, dated 25.02.2016, after retirement of the petitioner and they cannot with hold the pensionary benefits. The petitioner sent a detailed representation on 09.11.2016 requesting to settle the terminal benefits. As there is no reply from the first respondent, the petitioner is constrained to file the present Writ Petition and sought to allow the Writ Petition.

5. On behalf of the first respondent, a counter affidavit has been filed, wherein, it is averred that the criminal case registered against the petitioner and the disciplinary proceedings are pending and due to that reason the pensionary benefits are not settled.

6. However, during the course of hearing, the learned Standing Counsel appearing for the first respondent placed a letter addressed to him by the first respondent Corporation, on 07.08.2023.

7. On careful perusal of the same, it appears that the petitioner was paid with Provident Fund amount, Gratuity amount, Pension amount, Pension Commutation amount, Pension arrears, Unavailed Leave Salary, Surrender Leave Salary, Employee Retirement Benefit Scheme, Social Security Scheme, Institute of Road Transport Technology Refund amount and all these amounts are paid on different dates from 08.08.2017 to 15.03.2023. 8. The learned counsel for the petitioner also accepted that

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