Writ Petition No. 7985 of 2007. Case: M. Subbaian Vs The Commissioner, The Director of Municipal Administration and The Secretary Municipal Administration and Water Supply Department. High Court of Madras (India)
| Case Number | Writ Petition No. 7985 of 2007 |
| Counsel | For Appellant: S. Sadasharam, Adv. And For Respondents: K. Rajkumar, Adv. and K. Balasubramanian, Spl. Govt. Pleader |
| Judges | P. Jyothimani, J. |
| Issue | Payment of Gratuity Act, 1972 - Section 8; Tamil Nadu Pension Rules, 1978 - Rules 33, 36, 38, 39, 42 and 45A; Constitution of India - Articles 14, 19 and 21 |
| Judgement Date | June 06, 2011 |
| Court | High Court of Madras (India) |
Order:
P. Jyothimani, J.
1. The writ Petitioner was employed as a Revenue Assistant/Bill Collector in the first Respondent Municipality and retired under the Voluntary Retirement Scheme on 30.06.1995. At the time of retirement, his retirement benefits were not settled and the gratuity amount of Rs. 46,591.25 was withheld. He has filed O.A. No. 6652 of 1997, challenging the order withholding the gratuity, dated 24.02.1997 before the Tamil Nadu State Administrative Tribunal, Chennai, which was transferred to this Court and numbered as W.P. No. 31936 of 2005 and the said writ petition was allowed on 24.02.2006. Thereafter, the Petitioner made a representation to the first Respondent to disburse the amount of Rs. 46,591.25, being the gratuity amount with interest at the rate of 12% per annum from 30.06.1995 and in spite of his several representations, the amount has not been paid. After many representations, the Respondents along with the letter dated 10.07.2006, have sent a cheque for a sum of Rs. 46,591.25 drawn on the City Union Bank Limited. The Petitioner has claimed interest for the period of non-payment of gratuity from 30.06.1995 to 10.07.2006 and since the same has not been paid, the present writ petition is filed for direction against the Respondents to pay interest at the rate of 12% per annum on the sum of Rs. 46,591.25 from 30.06.1995 to 10.07.2006.
2. It is seen that when the Director of Municipal Administration, viz., the second Respondent has passed an order on 24.02.1997, retaining the gratuity amount of Rs. 46,591.25 due to the Petitioner, this Court in the order dated 24.02.2006, has set aside the said order by allowing the writ petition. In spite of the same, the amount was not paid. It is seen that only after the legal notice was issued enclosing the copy of the order, on 27.03.2006 the Municipality has chosen to send a cheque for the said amount on 10.07.2006. There is no explanation forthcoming from the Respondents for the delay between 30.06.1995 to 10.07.2006.
3. As per the Government Order in G.O. Ms. No. 122 Finance (Pension) Department dated 20.02.1995, in respect of delayed payment of Death-cum-Retirement Gratuity, the Government has fixed interest at the rate of 12% per annum compounded annually. The operative portion of the said Government Order is as follows:
3. The Government have carefully examined the question of revision of rate of interest for the delayed payment of Death-cum-Retirement Gratuity and have...
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