Retirees are entitled to interest on delayed retirement benefit payments.

Order

These Writ Petitions have been filed seeking a direction to the respondents to settle the interest for the belated payment of retirement benefits such as Gratuity, Earned Leave, Commutation of pension, Provident fund and other retirement benefits respectively payable to the petitioners with 6 percent rate of interest, within a time frame as fixed by this Court.

2. It is the case of the petitioners that they joined the service of the second respondent Corporation on 01.06.1994, 10.05.1988 & 29.10.1996 and was allowed to retire from service on 31.01.2024 & 31.10.2023 respectively. However, their terminal benefits namely, Gratuity, Earned Leave, Commutation of pension, Provident fund and other retirement benefits respectively have been settled only on 25.08.2025. Therefore, the petitioners claimed 6% interest on the belated settlement of retirement benefits and they have also made a common representation on 03.06.2025 to pay interest for the belated settlement of retirement benefits which have not evoked any response so far. Hence, the present Writ Petitions.

3. Heard the learned counsels appearing on either side and perused the materials available on record. With the consent of both sides, the Writ Petitions are taken up for hearing at the admission stage itself.

4. In view of the limited request made by the petitioners with regard to interest on the belated settlement of retirement benefits, this Court directs the respondents to pay interest at the rate of 6% p.a. for the belated payment of retirement benefits as stated supra from the date of retirement till the date of actual disbursal of the retirement benefits of the petitioners, if there is no impediment in disbursing the same, within a period of six weeks from the date of receipt of a copy of this order, taking into account the bank rate of interest on deposits.

5. Accordingly, these Writ Petitions are disposed of. There shall be no order as to costs.