Turn TNSTC profitable or close it down: CJ

[V.Balasubramani]

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Turn TNSTC profitable or close it down: CJ

Chief Justice of Madras High Court Sanjay Kishan Kaul on Thursday expressed his strong disapproval for the way in which Tamil Nadu State Transport Corporation (TNSTC) had not been paying terminal benefits to hundreds of its retired employees by citing financial crunch for years .

“This cannot go on forever. You either turn the corporation profitable or close it down. You cannot deny terminal benefits,” he said during the hearing of a batch of 75 writ appeals filed by retired TNSTC employees challenging a single judge’s order to disburse their terminal benefits in the order of seniority.

Hearing the appeals along with Justice S. Manikumar at the High Court Bench here, the Chief Justice said: “I have been coming across cases filed by retired TNSTC employees ever since I assumed office [as Chief Justice on July 26, 2014] here. This is unnecessary litigation. Terminal benefits are essential for the sustenance of retired employees.”

Appearing on behalf of the appellants, advocate G.R. Swaminathan pointed out that some of the retired employees had not been paid even gratuity since 2012. He contended that the single judge was not right in ordering disbursement on the basis of seniority since terminal benefits should be disbursed to every employee as and when he retires from service.

Read more at: http://www.thehindu.com/news/cities...itable-or-close-it-down-cj/article7307702.ece

 

[V.Balasubramani]

Tasmac revenue may be diverted to TNSTC, suggests judge

After being rapped by the Madras High Court Bench here on Thursday, the Tamil Nadu State Transport Corporation (TNSTC) informed the court on Friday that it would disburse the retirement benefits of about 75 of its former employees, who had approached the Bench, in 12 monthly instalments beginning from July.

The First Division Bench comprising Chief Justice Sanjay Kishan Kaul and Justice S. Manikumar recorded the submission and ordered that every instalment must be paid on or before the seventh day of a month. Failure to do so would attract interest at the rate of 18 per cent per annum from the day of default till the day of payment, they said.

Wondering for how long could the TNSTC survive without having finances to even disburse terminal benefits to its retired employees, the Chief Justice said: “In our country, we do not have any other social security system other than this. When such is the case, you cannot deny even that to retired employees and make them dependant on their children.”

He suggested that the government could consider giving a one-time grant to the corporation to come over the financial crisis faced by it and then make sure that it was run profitably. Mr. Justice Manikumar pitched in to state that a part of the revenue generated from the sale of liquor through Tamil Nadu State Marketing Corporation could be diverted to the TNSTC.

Source: http://www.thehindu.com/news/cities/Madurai/tasmac-revenue-may-be-diverted-to-tnstc-suggests-judge/article7311413.ecehttp://www.thehindu.com/news/cities/Madurai/tasmac-revenue-may-be-diverted-to-tnstc-suggests-judge/article7311413.ece