Madras High Court directs transport corporations on retirement benefits

The arrears shall carry 6% interest per annum and incase of delay, 10% interest should be paid

The Madras High Court on Friday directed government transport corporations in Tamil Nadu to settle the benefits of all the retired employees in 12 monthly instalments from November this year.

The arrears shall carry 6 % interest per annum. Incase of delay, 10% interest should be paid, the high court bench here said disposing petitions filed by a batch of retired employees.

The direction would not preclude the workman to question the computation of any terminal benefits if it was paid lesser than the amount to which he is entitled to receive, the judge said.

"It is very unfair on the part of the corporations to routinely leave their retiring employees in lurch and to disburse their terminal benefits only after the employees get court order," the court said.

"Since it has now been brought to the notice of the court that a large number of retired persons are yet to receive their retirement benefits, managing directors of all the corporations are directed to look into the matter and bestow due care to all the retired persons and ensure that they get their retirement benefits in 12 instalments without driving them to approach the court again and again," it said.

The court directed the registry to communicate the order to the Additional Chief Secretary (transport) for due compliance and follow-up action.