Persuading the State government to extend a helping hand to State transport corporations that are groaning under a mountain of liabilities – as much as ₹17,064.88 crore as on June 30 – is arguably one of the most challenging tasks that the Madras High Court had to contend with this year.
Though two different Division Benches, both led by Justice S. Manikumar, succeeded in making the government shell out some money towards statutory dues to retired as well as serving employees, a substantial part remains unpaid till date because the government is not keeping up the promises made to the court.
It all started when Justices M.V. Muralidaran and N. Seshasayee took suo motu notice of a post card sent by R. Mayandi Servai, an 82-year-old retired transport corporation employee, accusing the transport corporation of not paying terminal benefits to retired employees and statutory dues to the employees in service.
Subsequently, the case was listed before Division Benches led by Mr. Justice Manikumar, who on September 5 found that the State transport undertakings had to pay a whopping amount of ₹1,138.66 crore to retired employees, ₹5,349.93 crore to those in service and around ₹10,576.29 crore towards loans and other dues as on June 30.
Shocked over such mounting liabilities, the court said it expected the State government to act fast since every passing day was leading to a consequential increase in the quantum of liabilities. It recorded the submission of Transport Secretary P.W.C. Davidar that the corporations would be restructured with funding from external agencies by December 30.
It also included the Finance Secretary as one of the parties to the case and adjourned further hearing to September 8 when the court was informed on behalf of the Chief Secretary and the Transport Secretary that the government had agreed to clear ₹1,138.66 crore due to the retired employees of transport corporations by October 7.
Buying time
On October 9, the government turned a volte face and said that it could not pay ₹ 1,138.66 crore at one go. It sought the indulgence of the court in making the payment in three monthly instalments beginning from November 15. Though the court expressed its displeasure, it agreed to the proposal since the government cited severe financial constraints.
The judges, nevertheless, directed the State government to pay a substantial amount of money to the retired employees forthwith so that they would be able to celebrate Deepavali. Complying with the direction, the government spent over ₹100.79 crore to pay ₹39,000 each to 25,846 retired government employees on October 16.
Subsequently, the government did not comply with its undertaking to pay the money even in instalments. Though ₹379 crore ought to have been sanctioned towards the second instalment by December 15, it told the court on December 22 that steps were under way to disburse about ₹175 crore at the earliest. After directing the government to pay the agreed amount of ₹175 crore by December 26, the judges said that a decision on the deficit amount of ₹204 crore in the second instalment, and also on the third instalment that falls due on January 15, would be taken when the court reopens after Christmas vacation on January 3. During the course of the last hearing, Mr. Justice Manikumar told advocate C.K. Chandrasekhar, representing some of the associations of retired employees, that the court was giving a long rope to the government only in the interest of the retired as well as serving employees who were suffering due to non receipt of their statutory entitlements.
