The relief sought for in this writ petition is for a direction to grant interest for the belated payment of Provident Fund to the writ petitioner. The order rejecting the payment of interest was issued in proceedings dated 5th March, 2015 by the fifth respondent.
2.The learned counsel appearing for the writ petitioner contended that the writ petitioner was employed in State Transport Corporation and his E.P.F. Account No is12190. The writ petitioner retired from service on attaining the age of superannuation on 31st May, 2012. However, there is a delay in settling the Provident Fund amount due to the writ petitioner.
3.The learned counsel for the writ petitioner contended that as per the provisions contained under Sub-clause (7) of Rule 72 of the Employees Provident Fund Scheme, 1952, the employees are entitled for 12% interest for the belated payment of Provident Fund. Thus, the writ petitioner is entitled for the claim made in this regard.
4.The learned counsel appearing for the respondents opposed the said contention by stating that the delay has been caused only on account of some administrative reason and therefore, the petitioner is not entitled to claim any interest.
5.The point of administrative delay cannot deprive the right of an employee to get interest for the belated settlement of the Provident Fund amount. The terminal and retirement benefits are not bounty and those benefits are deferred payment of the wages. No employee can be deprived of his right of terminal and retiral benefits in time. Since the date of retirement of an employee is well known to the employer in advance, necessary steps have to be taken by the employer to settle the dues without any further delay. The employees normally will calculate their benefits in order to meet out his demands to the family and his remaining life and therefore, any delay will certainly cause inconvenience and hardships to the employee as well as to his family. State being the factum of the case an employer should adhere to the principles in this regard and settle all retirement and terminal benefits immediately. In this view of the matter, the Writ Petition deserves to be considered.
6.The interest at 12% per annum was fixed at the time of framing of the Scheme and in the changing circumstances, this Court is of the opinion that it is appropriate to fix 9% interest per annum for the belated payment of Provident Fund.
7.Accordingly, the order impugned in this Writ Petition is quashed and the the respondents are directed to pay 9% interest per annum for the belated payment of Provident Fund and calculate the arrears and settle the same, within a period of twelve weeks from the date of receipt of a copy of this order.
The Writ Petition stands allowed on the above terms. No costs. Consequently, connected Miscellaneous Petition is closed.
27.07.2017 rpa To 1 State Express Transport Corporation Ltd.
Rep. by its Managing Director Thiruvalluvar Illam, Pallavan Salai, Chennai-2.
2 The Managing Director State Express Transport Corporation Ltd.