HC imposes cost of Rs 25,000 on TNSTC for not disbursing

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: Madras High Court today imposed a cost of Rs 25,000 on Tamil Nadu State Transport Corporation for not disbursing pension benefits to its employees who had taken voluntary retirement and directed it to work out the pensionary benefits and disburse the amount in eight weeks.
The court stated this while dismissing appeals filed by Tamil Nadu State Transport Corporation Employees pension Trust, the Administrator TNSTC Employees Provident Fund and the Management of Metropolitan Transport Corporation.
The Division bench comprising Justices N Paul Vasanthakumar and P R Sivakumar referred to an Apex Court order and other High Court judgements while passing its order and directed the corporation to pay the amount to one Singaravelu, the petitioner.

The matter pertains to rejection of pensionary benefits to employees of Transport Corporations who were allowed to retire between September 1 1998 and Dec 15 2000 under the Special VRS Scheme.
As per the scheme employees completing 50 years of age and a minimum qualifying service of 15 years or those who had put in 20 years of continuous service without reference to their age were eligible to avail VRS.
But a new pension scheme was introduced on Feb 2 1999 as per which an employee should have rendered a qualifying service of 20 years or more and attained the age of 50 years as on date of such VRS to avail the pension benefits.

The Managements of Transport Corporations contended that the employees are not eligible to seek pension under the new scheme "since the VRS of the newly introduced scheme rule has not been challenged in the petitions filed by them."

The bench concurred with submissions of counsel for the retired employees and said it was not necessary they challenge the validity of the clause.Once the Corporation allows workers to take VRS as per the scheme at that point of time,they could not go back on their commitment and contend that the employee was not entitled to retirement benefits, including pension.
It referred to the Apex Court judgment in another case rejecting the Corporation's contention that the retired employee has not fulfilled the newly introduced scheme and had imposed a cost of Rs one lakh on the Management.

The bench said the issues raised in these appeals has already been covered and finally decided by Apex Court and by various orders of Division Benches of this Court, rejecting similar pleas with costs.
It noted that the management had chosen to go on appeal even after this and rejected the plea and imposed the costs
It then directed the Transport Corporation to disburse pension benefits to the workmen in eight weeks.