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2025 Supreme(Online)(Mad) 65417

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mrs. N.Mala, J
S.Devapalan – Appellant
Versus
The Commissioner, Chennai City Municipal Corporation – Respondent
Writ Petition No.13993 of 2020 | W.M.P.Nos.17381 & 17383 of 2024



Advocates:
For the Appellants/Petitioners: Mr.S.N.Ravichandran
For the Respondents: M/s.Aswini Devi

The court established that employees are entitled to interest on delayed retirement benefits when the delay is attributable to employer actions, reinforcing rights under statutory rules and constitutional provisions.

Headnote:(A) Constitution of India - Article 226 - Tamil Nadu Pension Rules, 1978 - Claim for interest on belated payment of retirement benefits including DCRG and commutation of pension - Court allowed interest for the unreasonably delayed payment for the period from 01.07.2013 to 07.04.2020, holding that the delay was arbitrary and violated Article 21. (Paras 21, 22)

(B) Legal Principles - Interest Claim - The court recognized entitlement to interest on retirement benefits when delays are caused by the employer, and referenced relevant Supreme Court precedent affirming this principle. (Paras 20, 21)

Facts of the case:
The petitioner, a retired employee from a Municipal Corporation, claimed interest on his delayed DCRG and pension payments due to an absence of communication regarding audit objections, which the court found unjustified given the long period of non-communication during which the petitioner was eligible for benefits.

Findings of Court:
The significant delay in payment warranted interest at 7% per annum for the DCRG and pension amounts, demonstrating that the delay violated the petitioner's rights.

Issues: The core questions were whether the delay in payment justified interest, and the nature of the audit objections that caused the delay.

Ratio Decidendi: The court held that the employer's claim of audit objections must not infringe on the rights to interest for delayed payments and far exceeded statutory timelines, sustaining that the benefits constituted personal property under Article 300-A of the Constitution.

Result: Interest awarded at 7% for delayed payments.

Table of Content
1. petitioner's retirement and benefit claims. (Para 1 , 2)
2. arguments for interest on delayed payments. (Para 3 , 4 , 5)
3. court's review of respondent's compliance. (Para 6 , 8 , 9 , 10 , 11 , 12 , 14)
4. entitlement to interest on delayed pension. (Para 13 , 21 , 22)
5. order correction and final disposition. (Para 23)

ORDER

This writ petition has been filed challenging to call for the impugned order passed by the second respondent in Letter CZO.Na.Ka.No.A1/1999/2018 dated 04.06.2020 and quash the same and consequently to direct the first respondent to sanction INTEREST on the belated payment of a sum of Rs.8,14,077/- towards DCRG amount and a sum of Rs.4,58,865/- towards Commutation of Pension for the period from 01.07.2013 to 07.04.2020, in accordance with the provisions under Rule 45- A of the Tamil Nadu Pension Rules 1978 and also as settled by this Court in W.P.(MD) No.1115 of 2020 dated 02.01.2020, in the light of the orders passed by the Hon'ble Supreme Court in the case of S.K.DUA VS. Union of India.

2. The case of the petitioner is that the the Petitioner was appointed in the Chennai City Municipal Corporation as Surveyor on 14.09.1978 and subsequently promoted as Junior Engineer in the year 1987 and was further promoted as Assistant Executive Engineer on 15.05.2013 and superannuated on 30.06.2013. The Petitioner was allowed to retire from service in the proceedings of the Commissioner, Chennai City Municipal Corporation in Na. Ka.No. A4/1999/2013 dated 28.06.2013. However, the Commissioner, Chennai City Municipal Corporation has not sanctioned the General Provident Fund, Special Provident Fund and Encashment of Earned Leave at the Petitioner's credit as on 30.06.2013 and for the same, the petitioner has sent repeated representations. But, the same was not considered.

2.1. Therefore, the Petitioner has filed a Writ Petition before this Court in W.P.No.19614 of 2014 and this Court vide its order dated 05.08.2014 directed the Commissioner to release the General Provident Fund, Special Provident Fund and Encashment of Earned Leave at the credit of the Petitioner as on 30.06.2013, within a period of 8 weeks from the date of receipt of the copy of the order. However, since no order had been passed by the Commissioner, Chennai City Municipal Corporation as directed by this Court a Contempt Petition No.174 of 2015 was filed. Subsequently, the 2nd Respondent in the proceedings Na.Ka.No.A6/1999/2013 dated 06.04.2015 have issued orders sanctioning a sum of Rs.9,71,309/- towards Encashment of Earned Leave/Private Affairs and Special Provident Fund. However, the Commissioner, Chennai City Municipal Corporation had not released the DCRG amount, Commutation of Pension and Full Pension to the Petitioner.

2.2. Thereafter the 2nd Respondent issued a letter in Na.Ka.No.A6/1999/13 dated 06.04.2015 to recover a sum of Rs.29,45,316/- from the DCRG amount. The above impugned order of the 2nd Respondent was challenged before this Court by the Petitioner in W.P.No.25626 of 2015. This Court by its order dated 18.08.2015 set aside the impugned order of the dated 06.04.2015 and remanded the matter to the Commissioner, Chennai City Municipal Corporation to issue appropriate notice for recovery, if permissible under the Rules and Law after giving due notice to the Petitioner, within a period of 2 weeks and thereafter the Petitioner should submit his explanation within a further period of 2 weeks which can be considered by the 2nd Respondent 'within a period of 4 weeks' and take appropriate orders thereon.

2.3. The 2nd Respondent then sent a letter dated 20.10.2015 to the Petitioner to bring all the records relating to the audit objections of Rs.29,45,316/- before him on 03.11.2015 at 10.30 A.M and the same was challenged by the Petitioner in W.P.No.37085 of 2015 praying that this Court to direct the 1st Respondent to release the DCRG amount due to the Petitioner as on 01.07.2013 and also to sanction the Commutation of Pension and full

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