Case Note & Summary
The writ petition was filed by a retired Checking Inspector of the Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., seeking a direction to the respondent Management to pay the encashment of 135 days of earned leave surrendered by him during his service, together with interest. The petitioner retired on 31.01.2023. Despite making a representation on 03.01.2025 for disbursement of the surrender leave salary, the respondent did not release the amount. Consequently, the petitioner approached the Madurai Bench of the Madras High Court under Article 226 of the Constitution of India for a writ of mandamus. The court heard the counsel for both sides and perused the materials on record. It observed that the respondent had failed to consider the representation or disburse the eligible benefits. Considering these facts, the court directed the respondent to release the eligible surrender leave salary to the petitioner with interest at the rate of 6% per annum from the due date till the date of disbursement, within a period of twelve weeks from the date of receipt of a copy of the order. The writ petition was disposed of with no order as to costs. The judgment primarily favored the petitioner, ensuring timely payment of his retirement dues along with reasonable interest.
Headnote
A) Labour Law - Surrender Leave Salary - Retired Employee - Tamil Nadu State Transport Corporation - The petitioner, a retired Checking Inspector, sought disbursement of surrender leave salary with interest; the respondent failed to disburse despite representation; the court directed payment with interest at 6% per annum within 12 weeks (Paras 2-4)
Issue of Consideration
Whether the petitioner, a retired employee, is entitled to surrender leave salary with interest despite delay in disbursement
Final Decision
Writ petition disposed of. Respondent directed to release eligible surrender leave salary to petitioner with interest at 6% per annum from due date till disbursement, within twelve weeks from receipt of order copy. No costs.
Law Points
- Employer obligated to release surrender leave salary of retired employee
- interest at 6% per annum payable from due date till disbursement
