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2026 Supreme(Online)(Mad) 17357

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. Dhandapani, J
A.Selvan – Appellant
Versus
The Managing Director Tamil Nadu State Transport Corporation Ltd – Respondent
WP No. 6162 of 2026 | WP No. 6171 of 2026 | WP No. 6177 of 2026



Advocates:
For the Appellants/Petitioners: Mr.N.Senthilkumar
For the Respondents: Mr.Murali Vinoth, Mr.C.S.K.Sathish

The Court ruled that delayed payments of terminal benefits warrant interest at a specified rate, acknowledging the obligation to timely disburse retirement dues.

Headnote:This judgment analyzes the claims for interest on delayed terminal benefits under Article 226 of the Constitution. The petitioners, having retired from service, asserted that their terminal benefits were settled belatedly. The Court found that the respondents must pay interest at 6% on these benefits. The central issue revolved around the timeliness of disbursal and the appropriate interest rate applicable during the delay. The final ruling stated, 'There shall be no order as to costs.'

Table of Content
1. claim for interest on delayed payment of terminal benefits. (Para 1 , 2)
2. court hears counsel and reviews records. (Para 3)
3. interest of 6% granted for delays in payment. (Para 4)
4. final decision on the disposal of writ petitions. (Para 5)

For Petitioner(s): Mr.N.Senthilkumar in all the writ petitions For Respondent: Mr.Murali Vinoth RR1 & 2 Mr.C.S.K.Sathish R3 in all the writ petitions COMMON ORDER The Writ Petitions have been filed to direct the Respondents to pay interest for the belated payment of provident fund., Gratuity , Encashment of Earned Leave, Surrender Leave, Commuted Value of Pension at the rate of 12 percent Per annum.

2. It is the case of the petitioners that the petitioners, who had joined the services of the respondent Corporation, had retired from service, however, the terminal benefits have been settled belatedly. Therefore, the petitioners claimed 12% interest on the belated payment of terminal benefits and they have also made representations to pay interest for the belated payment of terminal benefits which has not been evoked any response so far. Hence, the petitioners are before this Court.

3. Heard the learned counsels appearing on either side and perused the materials available on record.

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 taking into account the bank rate of interest on deposits.

5. Accordingly, the Writ Petitions are disposed of. There shall be no order as to costs. 23-02-2026 rli Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No To

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