IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN TUESDAY, THE 18TH NOVEMBER 2008 / 27TH KARTHIKA 1930 WP(C).No. 25003 of 2008(B) --------------------------------------- PETITIONER(S): ------------------------- V.S. BASHIR, S/O.K.BAVA RAWTHER, AGED 62, MANJU, OLAYIL, THEVALLY, KOLLAM - 691 009. BY ADV. SRI.S.R.DAYANANDA PRABHU RESPONDENT(S): ---------------------------- TRAVANCORE CEMENTS LTD., REP. BY ITS MANAGING DIRECTOR, NATTAKAM, KOTTAYAM-13. ADV. SRI.P.K.VIJAYAMOHANAN,SC,TRA.CEMENTS LT FOR R THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.N.RAVINDRAN, J ----------------------------- W.P.(C) NO: 25003 of 2008 ----------------------------- Dated this 18th day of November, 2008 JUDGMENT Heard Sri.S.R.Dayananda Prabhu, the learned counsel appearing for the petitioner and Sri.P.K.Vijayamohanan, the learned standing counsel appearing for the respondent. 2. The petitioner was Managing Director of the Travancore Cements Limited during the period from 19-6-2002 to 31-10-2004. He retired from service after he was reverted to the Indian Rare Earths Limited. After retirement, he claimed service benefits for the period during which he was the Managing Director of the respondent company. Aggrieved by the delay in settling the retirement benefits, he filed W.P.(C) No.31465 of 2007 in this Court. By Ext.P3 judgment delivered on 3-12-2007, this Court after noticing that there was no explanation for the delay in disbursing the arrears of salary and other benefits, directed the Principal Secretary to Government, Industries Department to take a decision on the approval sought by the respondent company as regards disbursement of arrears of salary and other benefits. Thereafter, by order passed on 14-1-2008, the Government directed disbursement of the benefits at the earliest. By Ext.P5 letter dated 4-3-2008 the respondent company informed the Indian Rare Earths Limited, that the sum of Rs.1,51,537 is payable to the petitioner, that the sum of Rs.40,564/- has been paid directly to the wpc:25003 of 2008 2 petitioner and that the balance payable to Indian Rare Earths Limited is only Rs.1,10,973/-. The respondent company also sought a clarification as to whether the said sum is to be paid directly to the petitioner or has to be remitted with the Indian Rare Earths Limited. Repeated correspondence thereupon followed and by Ext.P8 letter dated 4-6-2008 the Indian Rare Earths Limited informed the respondent company that out of the sum of Rs.1,10,973/- the gratuity component of Rs.48,756/- may be remitted with them and the balance may be paid over to the petitioner. Even thereafter, there was no progress in the matter. This writ petition was there upon filed on 18-8-2008 seeking a writ in the nature of mandamus commanding the respondents to release the sum of Rs.1,10,973/- with interest thereon at 18% per annum from 12-1-2005, till the date of payment. 3. The respondent has filed a counter affidavit contending inter alia that after verification it was found that the petitioner was entitled only to the sum of Rs.23,070/- towards pro rata contribution to the gratuity fund and that the balance payable is only Rs.85,287/-. It is further stated that a cheque for the said amount was sent to the Indian Rare Earths Limited along with Ext.R1(a) letter dated 25-8-2008 and that no further amount is payable to the petitioner. The petitioner does not dispute the said fact. His claim is now restricted to interest on the delayed payment wpc:25003 of 2008 3 of the sum of Rs.85,287/-. 4. I have considered the submissions made at the Bar by the learned counsel appearing on either side. Exts.P5 and P6 disclose that even after this Court directed payment of terminal benefits within four weeks from the date of receipt of a copy of the judgment, it was only towards the end of August 2008 that the respondent disbursed the balance terminal benefits which the petitioner was entitled to receive from the respondent. The petitioner was driven to the necessity of filing two writ petitions in this Court. From the conduct of the respondent it is evident that steps were not taken to disburse the amounts payable to the petitioner in time. Such being the situation, I am of the considered opinion that the petitioner is entitled to be compensated by award of interest for the delay in disbursement of the benefits. 5. The period fixed by this Court in Ext.P3 judgment admittedly expired in January 2008. There is no explanation for the delay in withholding payment of the sum of Rs.85,287/- till 25-8- 2008. In these circumstances, the petitioner is entitled to interest on the sum of Rs.85,287/- at the rate of 7.5% per annum from 1-2- 2008 till 25-8-2008, the date on which the cheque for Rs.85,287/- was transmitted to the Indian Rare Earths Limited for payment to the petitioner. The respondent shall within one month from the date of receipt of a copy of this judgment compute and pay interest wpc:25003 of 2008 4 to the petitioner on the sum of Rs.85,287/- at 7.5% per annum from 1-2-2008 till 25-8-2008. If payment as directed above is not made, it will be open to the petitioner to realise the said amount from the respondent company by taking appropriate steps in that regard. It will be open to the respondent company to recover the interest thus paid to the petitioner, from the officers responsible for the delay in payment of the benefits to the petitioner. P.N.RAVINDRAN, JUDGE bps