Don’t miss the latest developments in business and finance.

HC advises TN to make transport corpns viable or close them

Image
Press Trust of India Madurai
Last Updated : Jun 11 2015 | 6:22 PM IST
Apparently irked by non-settlement of retirement benefits of the staff by Tamil Nadu State Transport Coporation and State Express Transport Corporation, the Madras High Court today advised the government to either make the Corporations economically viable or close them.
A divison bench of the High Court here, which was hearing the appeal filed by 150 staff whose retirement benefits had not been settled, said government should subsidise the corporations if they wanted them to survive.
The bench, comprising Chief Justice Sanjay Kishan Kaul and Justice S.Manikumar, wondered if government expected retired persons, who did not get retirement benefits after 2012, to survive by consuming air.
The appellants came on an appeal against a single judge's order which said terminal benefits could be settled in accordance with seniority and interest paid at six per cent.
The appellants said the judge should have directed the corporation to settle terminal benefits within a timeframe and should have not have ordered for six per cent interest.
As per Gratuity Act, the gratuity amount should be settled within thirty days. They should pay seven per cent interest for the period beyond three months and if it exceeded one year, they should pay 10 per cent interest.
Similarly, the Corporation was charging 12 per cent for the PF loan taken by the staff. Therefore, for retaining the retirement benefits they should pay interest rate of 12 per cent. Similarly PF had not been settled, the appellants said seeking the court's intervention.

More From This Section

First Published: Jun 11 2015 | 6:22 PM IST

Next Story