CHENNAI: The Madras High Court has directed Tamil Nadu State Transport Corporation (TNSTC) to settle terminal benefits of 11 retired employees with 6 per cent interest in six instalments, commencing from March 1.
The court also said if there is a delay, the interest payable could be 10 per cent for the delayed period to be recovered from the officer responsible for disbursement of the amount. The issue pertains to a plea by D Ramamurthy and 10 others seeking direction to the corporation to pay 10 per cemt interest for the belated payment of gratuity, leave salary and commutation of pension amount to the petitioners.
Justice S Vaidyanathan said, “The benefits bestowed by law upon an employee in recognition of his committed continuous loyal and devoted duty by payment of the pension, gratuity, leave salary....are in the nature of the property.”
The court, in its order, also said that the direction to pay interest would not preclude the workmen to question the computation of any of the terminal benefits if the same is paid lesser than the amount to which they are entitled to receive.