TNSTC to settle dues of retired employees in 12 instalments

Tamil Nadu Stare Transport Corporation today submitted to the Madras High Court bench here that they would clear retirement benefits of the staff, numbering about 150, in 12 monthly instalments from July one.
Chief Justice Sanjay Kishan Kaul and Justice S Manikumar today said the TNSTC should settle the dues, running to about Rs 10 crore, with six per cent interest, failing which the dues would carry 18 per cent interest.
The Additional Advocate General submitted that the Government had issued a order to the effect that retirement benefits of the TNSTC employees would be settled in 12 monthly instalments from July 1, 2015.

The Judges recorded the submission and said the amount would carry six per cent and default would carry 18 per cent interest.
The Judges also disposed appeal filed by 150 retired employees against the Single Judge's order, which said terminal benefits could be settled in accordance with the seniority and and six per cent interest.
The appellants said the judge should have directed the Corporation to settle terminal benefits within a timeframe and should have not have ordered for six per cent interest.

As per Gratuity Act, the gratuity amount should be settled within 30 days. They should pay seven per cent interest for the period beyond three months and if it exceeded one year, they should pay 10 per cent interest.

Similarly, the Corporation was charging 12 per cent for the PF loan taken by the staff. Therefore, for retaining the retirement benefits they should pay interest rate of 12 per cent.
The PF due had not been settled, they said seeking the court's intervention.