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2021 (4) TMI 321 - HC - Central ExciseEntitlement to petitioner's surrender leave salary for 64 days payable from the date of retirement to till the date of actual payment - respondents have not settled the surrender leave salary, at the time of retirement and now seeking disbursement - HELD THAT - The issue involved in the present writ petition is covered by various orders of this Court, in the case of S. ALAGESAN VERSUS THE MANAGING DIRECTOR TAMIL NADU STATE TRANSPORT CORPORATION (KUMBAKONAM) LTD., THE GENERAL MANAGER TAMIL NADU STATE TRANSPORT CORPORATION (KUMBAKONAM LTD. 2019 (12) TMI 1471 - MADRAS HIGH COURT wherein an issue was dealt in the case of THE TAMIL NADU STATE TRANSPORT CORPORATION (KUMBAKONAM) LIMITED, KUMBAKONAM, THE GENERAL MANAGER, THE TAMIL NADU STATE TRANSPORT CORPORATION (KUMBAKONAM) LIMITED, PUDUKKOTTAI. VERSUS D. SOUNDARARAJAN 2019 (9) TMI 1512 - MADRAS HIGH COURT where it was held that The learned Single Judge took into consideration the facts placed before him and also noted the circular dated 09.01.2017 and taking note of the fact that there is record to show that the appellants transport corporation pleaded financial crises for non-settling the surrender leave salary, allowed the writ petition. - In view of the decision being in favour of the petitioner, this Court is also of the view that the petitioner herein is entitled to succeed in the present writ petition. Interest on belated payment of earned leave - HELD THAT - In all the decisions cited by the learned Standing Counsel, both the Division Bench, as well as the learned Single Judges, there is no discussion with regard to the non entitlement of the interest - Since there is no dictum laid down in any of the decisions to the effect that the employees will not be entitled for interest on belated payment of earned leave, the submissions made by the learned Standing Counsel cannot be accepted that employees will not be entitled for interest on belated payment of earned leave. There shall be a direction to the respondents herein to settle the surrender leave salary for 64 days, in respect of the years 2011-2012, 2012-2013, 2013-2014, 2014-2015, 2015-2016, 2016-2017, 2017-2018 and 2018-2019, together with interest at the rate of 6% per annum from the date of retirement till the date of actual disbursement. The respondents shall be entitled to disburse the surrender leave salary in six Equal Monthly Installments and the 1st Installment shall commence from 1st of April 2021. Petition allowed.
Issues:
Claim for settlement of surrender leave salary and interest post-retirement. Analysis: The petitioner filed a writ petition seeking a Writ of Mandamus to direct the respondents to settle the surrender leave salary for 64 days from 2011-2019 along with interest at 18% per annum post-retirement. Both parties agreed for final disposal at the admission stage. The petitioner's grievance was the non-settlement of surrender leave salary after retirement. The issue was found to be covered by previous court orders, including one from 2019. The court referred to a case where a similar claim was upheld, emphasizing the petitioner's entitlement to claim salary for surrendered leave. The court noted the respondent's argument against payment of interest for non-surrender of earned leave. However, the court rejected this argument, stating that previous judgments did not preclude the entitlement to interest for belated payment of earned leave. Consequently, the court directed the respondents to settle the surrender leave salary for the specified period along with interest at 6% per annum from retirement till disbursement. The disbursement was to be made in six Equal Monthly Installments starting from April 1, 2021. The writ petition was allowed with no costs incurred.
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