Case Note & Summary
The petitioner, a former Special Grade Tradesman of the Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Karaikudi Region, filed a writ petition under Article 226 of the Constitution of India seeking a mandamus to compel the respondent to pay his surrender leave salary. He had surrendered 135 days of earned leave during his employment and retired on 28.02.2023. Despite making a representation on 03.01.2025, the respondent failed to disburse the surrender leave salary. The primary legal issue was whether the respondent was obligated to pay the surrender leave salary with interest. The petitioner contended that the amount was due based on either the monthly wages at the time of surrender or at the time of retirement, along with interest at 18% per annum. The respondent, through its standing counsel, did not contest the liability but the court proceeded after hearing both sides and perusing the record. The court, exercising its writ jurisdiction, observed that the petitioner was entitled to the surrender leave salary and that the delay in payment warranted interest. Consequently, the court directed the respondent to release the eligible surrender leave salary to the petitioner with interest at 6% per annum from the due date until the date of actual disbursement, within a period of twelve weeks from the receipt of the order copy. No costs were awarded. The writ petition was thus disposed of with the above directions.
Headnote
A) Service Law - Retirement Benefits - Surrender Leave Salary - Constitution of India, Article 226 - The petitioner, a retired Special Grade Tradesman of the respondent Transport Corporation, sought a writ of mandamus for payment of surrender leave salary for 135 days with interest at 18% p.a. The court, noting non-disbursement despite representation, directed the respondent to release the eligible surrender leave salary with interest at 6% p.a. from the due date till disbursement within twelve weeks (Paras 2-5).
Issue of Consideration
Whether the respondent is obligated to pay the petitioner's surrender leave salary for 135 days along with interest.
Final Decision
The writ petition was disposed of with a direction to the respondent to release the eligible surrender leave salary to the petitioner with interest at 6% p.a. from the due date till the date of disbursement, within twelve weeks from the receipt of the order copy. No costs were awarded.
Law Points
- Mandamus under Article 226 for enforcement of surrender leave salary
- interest at 6% p.a. from due date on delayed payment of retirement benefits
- no costs awarded
