IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Ms. Justice P.T. ASHA
A.Purusothaman – Appellant
Versus
The State of Tamil Nadu – Respondent
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 17-12-2025 CORAM THE HON'BLE MS. JUSTICE P.T. ASHA and WMP No.8427 of 2022 A.Purusothaman ..Petitioner(s)
Vs
1. The State of Tamil Nadu Rep. by its Principal Secretary, Rural Development and Panchayat Raj Department, Fort St. George, Chennai 600
009
2. The Director of Rural Development Saidapet ,Chennai 18
3. The District Collector Cuddalore District ..Respondent(s)
Prayer: The writ petition is filed under Section 226 of the Constitution of India for issuance of a writ of Certiorarified Mandamus, calling for records relating to the order of the 1st respondent made in Letter No. 15040/E6 /2021-4 dated 21.02.2022 to quash the same and to consequently direct the respondents to forthwith extend the differential interest on such belated payment of terminal benefits to a tune of Rs. 6,76,733/-.
For Petitioner(s): Mr.N.R.Jasmine Padma For Respondent(s): Mrs.S.Anitha, Spl.G.P.
ORDER
This Writ Petition has been filed for the following reliefs:-
“calling for records relating to the order of the 1st respondent made in Letter No. 15040/E6 /2021-4 dated 21.02.2022 to quash the same and to consequently direct the respondents to forthwith extend the differential interest on such belated payment of terminal benefits to a tune of Rs. 6,76,733/-.” 2. The petitioner seeks to challenge the rejection of his representation seeking interest at the rate of 12% on the belated payment of his retiral benefit dues. The request has been rejected by the 1st respondent stating that the interest as per admissible rate had already been sanctioned to the petitioner as per GO.Ms.No.487 dated 07.10.2009.
3. The learned counsel for the petitioner would submit that the 1st respondent while rejecting the claim of the petitioner had totally overlooked G.O.Ms.No.122 dated 20.02.1995, which is also referred to in the subsequent Government Orders, namely, G.O.Ms.No. 173 dated 01.04.2024 and G.O.Ms.No.487 dated 07.10.2009, wherein it has been clearly stated that the rate of interest payable on the DCRG, on and from 20.02.1995, is at the rate of 12% per annum, compounded annually. Therefore, since the petitioner had retired on 31.07.2000, he is entitled to interest at the rate of 12% per annum.
4. Heard the learned counsel on either side and perused the records.
5. GO.Ms.No.173 dated 01.04.2004 would read as follows:- “In the reference cited, orders were issued to pay interest at the rate of 12% compounded annually for the belated payment of Death Cum Retirement Gratuity for the Government Servants. The said order was issued based on the rate of interest fixed for the General Provident Fund by the Central Government.
2. Taking into consideration the rate of interest fixed by the Central Government in recent times for the General Provident Fund, it is ordered that the Government Servants who retire hereafter shall be paid interest at the rate based on the rate of interest in force payable for the General Provident fund in respect of the year in which the Government Servants retire.
3. This order comes into force with effect from
01.04.2004.”
6. GO.Ms.No.487 dated 07.10.2009 also confirms the said position in as much as the second proviso to the said amendment to Rule 45-A of the Tamil Nadu Pension Rules would read that on and from 01.04.2004, the rate of interest shall be at the rate of interest payable, on General Provident Fund during the year of the retirement of the Government Servant (compounded annually). 7. Admittedly, the petitioner had retired on 31.07.2000. Therefore, the rate of interest applicable in his case is 12% per annum even as per the above- referred Government Orders. Therefore, the impugned order passed by the 1st respondent dated 21.02.2022 is unsustainable.
8. Therefore, the impugned order passed by the 1st respondent dated
21.02.2022 is set aside and the Writ Petition is allowed as prayed for. No costs.
Consequently, the connected Miscellaneous Petition is closed.
17-12-2025 Index: Yes/No Speaking/Non-speaking order Ne
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