High Court · 2025

W.P(MD)No.12158 of 2025BEFORE THE MADURAI BENCH OF MADRAS HIGH COURTDATED : 28.04.2025CORAM:THE HONOURABLE MR. JUSTICE BATTU DEVANANDW.P.(MD)No.12158 of 2025R.Subburam ...Petitioner Vs. 1.The Additional Chief Secretary to Government of Tamilnadu, Transport Department, Fort. St.George, Chennai – 600 0009.2.The Tamil Nadu State Transport Corporation (Madurai) Ltd., Represented by its Managing Director, Madurai – 625 010.3.The General Manager, The Tamil Nadu State Transport Corporation (Madurai) Ltd., Madurai Region, Madurai – 625 010.4.The Administrator, Tamilnadu State Transport Corporation Employees Pension Fund Trust, Pallavan Salai, Chennai – 600 002. ...RespondentsPrayer: Writ Petition is filed under Article 226 of the Constitution of India, in the nature of a writ of Mandamus, directing the respondents to 1 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 2025settle petitioner's retirement benefits including Provident Fund of Rs.10,01,314/- Gratuity amount of Rs.13,67,065/- and Terminal leave salary amount of Rs.8,00,214/- Commuted value of pension of Rs.8,86,624/- totaling to Rs. 40,55,217/- (Forty Lakhs Fifty Five Thousand Two Hundred and Seventeen only) together with interest at the rate of 6 percent per annum from the dated of his retirement i.e., 31.12.2023 to till the date on which the said benefits are settled to him. For Petitioner: Mr.A.Rahul For R1: Mr.P.Subbaraj Special Government AdvocateFor R2 & R3: Mr.Ramachandra Pradeep Standing CounselFor R4: Mr.S.C.Herold Singh Standing CounselO R D E R This writ petition has been filed seeking a writ of Mandamus directing the respondents to settle the retirement benefits of the petitioner including provident fund, gratuity, terminal leave salary and commuted value of pension together with interest at the rate of 6% per annum from the date of his retirement i.e.31.12.2023 to till the date on which the said benefits are settled to him. 2 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 20252. The facts of the case are that the petitioner joined in the first respondent Corporation as Clerk with effect from 13.12.1992. After periodical promotion, the petitioner was promoted as Superintendent. He retired from service on 31.12.2023 on attaining the age of superannuation. Though the respondents had allowed the petitioner to retire from service with effect from 31.12.2023, the retirement benefits were not disbursed to the petitioner. In fact, one year prior to his retirement, he can withdraw 90% of his total provident fund accumulation as per Rule 13(1)(j) of TNSTC Employees Provident Fund Trust Rules. The amount of Rs.10,01,314/- is lying in the provident fund account, out of which, the petitioner is entitled to withdraw 90% of the said amount. But the respondents did not permit the petitioner to withdraw the said amount. As per the petitioner, he is entitled for a sum of Rs.10,01,314/- towards provident fund, Rs.13,67,065/- towards gratuity, Rs.8,00,214/- towards terminal leave salary, and Rs.8,86,624/- towards commuted value of pension. Totally, the petitioner is entitled for a sum of Rs.40,55,217/- after his retirement.3 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 20253. The learned counsel for the petitioner submits that the petitioner needs funds for the medical treatment of his wife. The petitioner with a hope that he can get terminal benefits much earlier which will be useful for the treatment of his wife. But the terminal benefits were not disbursed even after nearly one year from the date of his retirement. He borrowed money from the money lenders and he needs funds to repay the loan. Hence, he made representation, dated 28.03.2025 to the respondents. But till date, the amounts have not been paid. Aggrieved by the same, the petitioner approached this Court by filing this writ petition.4. The learned Standing Counsel for the respondents 2 to 4 submits that the respondent Corporation is in financial crisis. They have to get funds from the State Government. Due to that reason, they could not settle the retirement benefits to the petitioner.5. Having heard the submissions of the respective learned counsels and on perusal of the materials available on record, this Court is not in a position to accept the contention of the learned standing counsel for the respondents 2 to 4. Admittedly, the petitioner was allowed to retire with 4 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 2025effect from 31.12.2023. After retirement, the petitioner is entitled for retirement benefits, for which he is legally entitled. Without settling the same, the respondents committed serious mistake by withholding the said benefits for the last one year, which is not permissible under the settled proposition of law. The retirement benefits such as provident fund, gratuity and other terminal benefits are not bounty. The respondents are not paying the said amount as charity to the petitioner. The Hon'ble Apex Court and this Court time and again held that the employees after retirement are entitled for all the retirement and terminal benefits, for which they are entitled, as a matter of right. In the present case, it appears that the respondents did not consider the representation, dated 28.03.2025 submitted by the petitioner to redress his grievance. 6. For the aforesaid reasons, this court intends to direct the respondents to settle all the terminal benefits for which the petitioner is legally entitled towards provident fund, gratuity, terminal leave salary and commuted value of pension forthwith to the petitioner to meet the interest of justice.5 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 20257. Accordingly, this writ petition is allowed with the following directions:1. The respondents 2 to 4 are directed to settle all the terminal benefits for which the petitioner is legally entitled and also release the pension to the petitioner forthwith.2. The respondents 2 to 4 are directed to pay 6% interest towards provident fund, gratuity, terminal leave salary from the date of his retirement till the date of actual payment to the petitioner. No costs. 28.04.2025Index :Yes / NoInternet : Yes / NoNCC :Yes / NoSN6 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 2025To,1.The Additional Chief Secretary to Government of Tamilnadu, Transport Department, Fort. St.George, Chennai – 600 0009.2.The Managing Director, Tamil Nadu State Transport Corporation (Madurai) Ltd., Madurai – 625 010.3.The General Manager, The Tamil Nadu State Transport Corporation (Madurai) Ltd., Madurai Region, Madurai – 625 010.4.The Administrator, Tamilnadu State Transport Corporation Employees Pension Fund Trust, Pallavan Salai, Chennai – 600 002. 7 https://www.mhc.tn.gov.in/judis W.P(MD)No.12158 of 2025BATTU DEVANAND , J. SNW.P.(MD)No.12158 of 202528.04.20258