Case Note & Summary
The intra Court appeal was filed by the appellant seeking interest on the belated settlement of terminal benefits. The appellant retired on 31.08.2019, and his terminal benefits were settled on 22.01.2021. The writ court had previously ruled that the appellant was not entitled to any interest for the delayed payment. The appellant's counsel argued that he deserved interest due to the significant delay in payment. The respondents contended that the delay was due to a financial crisis caused by the Covid-19 pandemic, which hindered the immediate settlement of terminal benefits. The court considered the financial difficulties faced by the Transport Corporation and decided to set aside the previous order denying interest. It directed the respondents to pay 4% interest on the belated settlement of terminal benefits within eight weeks. The writ appeal was allowed in part, with no costs awarded.
Headnote
A) Employment Law - Terminal Benefits - Entitlement to Interest - Not applicable under the circumstances - The appellant sought interest on delayed terminal benefits settled post-retirement. The court acknowledged the financial crisis faced by the Transport Corporation during the Covid-19 period and directed payment of 4% interest on the belated settlement of terminal benefits within eight weeks. Held that the appellant is entitled to interest due to the circumstances of delayed payment (Paras 1-4).
Issue of Consideration
Whether the appellant is entitled to interest on the belated settlement of terminal benefits.
Final Decision
The court set aside the writ order denying interest and directed the respondents to pay 4% interest on the belated settlement of terminal benefits within eight weeks.
Law Points
- Interest on delayed payment
- Terminal benefits
- Financial crisis considerations
