K.Muthusamy vs The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited

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2026 Supreme(Online)(Mad) 15020

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI, J
K.Muthusamy – Appellant
Versus
The Managing Director, Tamil Nadu State Transport Corporation (Salem) Limited – Respondent
W.P.7309/2026 | W.P.7315/2026 | W.P.7317/2026 | W.P.7335/2026 | W.P.7337/2026

Important Points

Timeliness in disbursal of terminal benefits and entitlement to interest for delays.

Subject

Writ Jurisdiction - Service Matters

Act Referred

Constitution of India: Article 226

Headnote

The writ petitions filed under Article 226 of the Constitution sought Writ of Mandamus for the payment of interest on belated terminal benefits. The petitioners, retired employees, claimed interest from the date of retirement until actual disbursal. The Court directed the respondent to pay interest @ 6% within six weeks. The decision underscores the responsibility of the corporation to timely handle terminal benefits. The petitions are disposed of.

Advocates:
For the Appellants/Petitioners: Mr.N.Desinghu
For the Respondent: Mr.K.Raja

Table of Content
1. claims for interest on retirement benefits due to delays. (Para 2 , 3)
2. court's directive for timely payment of interest. (Para 4)

C O M M O N O R D E R

By consent, the writ petitions are taken up for final disposal at the admission stage itself.

2.These writ petitions have been filed seeking issuance of Writ of Mandamus directing the respondent to pay interest to the petitioners for the belated payment of retirement benefits, within a specified time.

3.The learned counsel appearing for the petitioners submitted that the petitioners who had joined the services of the respondent Corporation, had retired from service during July, 2024, May, 2024, May, 2024, January, 2019 and July, 2023, respectively, however, the terminal benefits have been settled only on 02.12.2025, 02.12.2025, 02.12.2025, 22.09.2019 and 25.08.2025 respectively. Therefore, the petitioners claimed interest on the belated payment of terminal benefits and made representation to the respondents to pay interest for the belated payment of terminal benefits, however, there is no response.

4.In view of the limited request made by the petitioners with regard to interest on the belated payment of terminal benefits, this Court directs the respondent to pay interest @ 6% for the belated payment of terminal benefits from the date of retirement till the date of actual disbursal of terminal benefits of the petitioners, within a period of six weeks from the date of receipt of a copy of this order.

5.Accordingly, these writ petitions are disposed of. No costs.