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Madras High Court · body

2016 DIGILAW 62 (MAD)

K. Murugesan v. President/Secretary, A-2487, Thottappanayakanur Primary Agricultural Co-operative Loan Society

2016-01-05

D.HARIPARANTHAMAN

body2016
ORDER : The petitioner was appointed in the first respondent Cooperative Society on 22.04.1974. He retired from service on 30.09.2006 on attaining the age of superannuation, ie., he rendered 32 years of service. He was allowed to retire. 2. The grievance of the petitioner is that though he retired from service in 2006, he is not paid the terminal benefits such as gratuity, encashment of Earned Leave benefit and salary arrears from 01.04.2003 to 31.03.2006. His further grievance is that while he has to be paid Rs.7,54,207.30 towards the aforesaid heads, he was paid only Rs.1,18,851.30, ie., the Society has to pay him a sum of Rs.6,35,356/-. For the past 9 years, the aforesaid amount is not paid to him. Hence he has filed this writ petition. 3. According to the petitioner, one Thiru K.Muthaiah, who retired from service on 30.06.2014 was paid Rs.3,67,113/- towards terminal benefits and Rs.4,86,601/- is still due to be payable to the said Muthaiah. According to the petitioner, while he was paid only Rs.1,18,851.30, the said Muthaiah was paid Rs.3,67,113/-. In any event, the retirement benefits cannot be withheld arbitrarily in such a fashion and hence the petitioner has sought for a direction to the first respondent to settle the terminal benefits. 4. The first respondent has filed a counter. It is useful to extract paragraphs-3 and 4 of the counter, as under: 3. I respectfully submit that the petitioner retired from the service on 30.09.2006. As stated by the petitioner, the retirement benefits due to the individual is shown below:- Sl. No. Details Due Rs. Paid Rs. Balance Rs. 1. Gratuity (as per audit report) 1,74,050 - 1,74,050 2. Encashment of Earned leave 70,434 20,000 50,434 3. P.F. 98,851.30 98,851.30 - 4. Pending payment (01.04.2003 to 31.03.2006) 3,98,040 - 3,98,040 5. Due by the Society 12,832 - 12,832 Total 7,54,207.30 1,18,851.30 6,35,356 4. I submit that Thiru K.Muthaiah retire from service on 30.06.2014 and the details of payment of retirement benefits is shown below. Sl. No. Details Due Rs. Paid Rs. Balance Rs. 1. Gratuity (as per audit report) 2,36,617 - 2,36,617 2. Encashment of Earned leave 1,21,082 1,21,082 - 3. P.F. 2,46,031 2,46,031 - 4. Pending payment (01.04.2003 to 31.03.2006) 2,49,984 - 2,49,984 Total 8,53,714 3,67,113 4,86,601 5. Therefore the first respondent has admitted that Rs.6,35,356/- is due to the petitioner towards payment of terminal benefits. Now 9 years have passed. 1. Gratuity (as per audit report) 2,36,617 - 2,36,617 2. Encashment of Earned leave 1,21,082 1,21,082 - 3. P.F. 2,46,031 2,46,031 - 4. Pending payment (01.04.2003 to 31.03.2006) 2,49,984 - 2,49,984 Total 8,53,714 3,67,113 4,86,601 5. Therefore the first respondent has admitted that Rs.6,35,356/- is due to the petitioner towards payment of terminal benefits. Now 9 years have passed. The reason given by the first respondent that the financial position of the Society is in a bad condition, cannot be accepted and the terminal benefits cannot be withheld. Such withholding of terminal benefits amount to arbitrariness and the same is violative of Article 21 of the Constitution of India. Further, as stated above, the inaction of the first respondent in not settling the terminal benefits for the past 9 years is highly arbitrary. However, the learned counsel for the petitioner has submitted that the petitioner would be satisfied if a direction is issued to the first respondent to at least settle the retirement benefits in some instalments. 6. Taking into account the submissions made on both sides, the writ petition is disposed of directing the first respondent to settle the amounts due to the petitioner towards terminal benefits in three equal instalments, ie., once in two months from 10.02.2016. The first instalment shall be paid on or before 10.02.2016. If any of the instalments is not paid the defaulted payment shall carry 12% interest per annum. No costs.