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2026 Supreme(Online)(Mad) 17358

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI, J
Gopalan – Appellant
Versus
Tamil Nadu State Transport corporation (Coimbatore) Ltd Rep by its The Managing Director – Respondent



Advocates:
For the Appellants/Petitioners: Mr.R.Krishnaswamy
For the Respondent: Mr.C.Gauthamaraj

Retired employees are entitled to interest on delayed terminal benefits.

Headnote:The petitioners, retired employees of the respondent Corporation, seek a Writ of Mandamus under Article 226 of the Constitution for the payment of interest on belated terminal benefits due to delayed payments. The court directs a 6% interest from the retirement date until actual disbursal, considering bank rates. The court disposes of the petition with no costs.

Table of Content
1. retired employees claim terminal benefits' interest (Para 1 , 2)
2. court reviews submissions and records (Para 3)
3. court grants interest on delayed payment (Para 4)
4. judgment disposed with no costs (Para 5)

PRAYER; Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Mandamus, directing the respondent to pay petitioner interest for the belated payment of petitioner terminal benefits, namely the PF, Gratuity, Surrender leave salary and the earned leave salary, at the rate of 12 percent per annum within a specified time frame, as may be timed by this honble court, Award costs.

For Petitioner(s): Mr.R.Krishnaswamy For Respondent: Mr.C.Gauthamaraj ORDER This Writ Petition has been filed to direct the respondent to pay petitioner interest for the belated payment of petitioner terminal benefits, namely the PF, Gratuity, Surrender leave salary and the earned leave salary, at the rate of 12 percent per annum.

2. It is the case of the petitioner 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, this Writ Petition is 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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