MADURAI: The Madurai Bench of the Madras High Court, in separate cases, refused to permit the Tamil Nadu State Transport Corporation (TNSTC) to disburse the penal interest for delay in settling pension benefits to its employees in monthly instalments. The interest, accrued at a rate of six per cent, should be paid within three months.
Justice M S Ramesh was passing orders on petitions filed by several retired employees, seeking direction to the TNSTC to pay the said penal interest. He said that he is not in agreement with the representation made by the standing counsel of the TNSTC, who prayed the court to permit the TNSTC to disburse the interest on the belated payment in liberal monthly instalments citing the financial burden cast on the TNSTC.
The judge said that there already was a duty cast upon the TNSTC to pay the terminal benefits on the date of retirement itself. Since the belated disbursement of the benefit already put the retired employee to serious prejudice, entertaining the present request for disbursement of the interest on the belated payment in instalments could cause further prejudice to the retired employee.