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2026 Supreme(Online)(Mad) 21106

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI, J
John Bosco – Appellant
Versus
Tamil Nadu State Transport Corporation (Coimbatore) Ltd – Respondent



Advocates:
For the Appellants/Petitioners: Mr.G.Vijay Priyan
For the Respondent(s): Mr.C.Gauthamaraj

The court mandated interest on delayed terminal benefits, establishing that such payments should be timely to avoid undue hardship.

Headnote:The Writ Petition under Article 226 of the Constitution of India sought a direction for payment of interest on belated terminal benefits. The petitioners who retired between 2018 and 2023 claimed interest for delays in benefit disbursement. The Court directed the respondent to pay 6% interest from retirement until actual payment, emphasizing adherence to the prevailing bank rate. The petition was ultimately disposed of without costs.

Table of Content
1. petition filed for interest on late benefits. (Para 1 , 2 , 3)
2. heard arguments and reviewed case records. (Para 4)
3. court orders 6% interest on delayed benefits. (Para 5)
4. writ petition disposed without costs. (Para 6)

ORDER

This Writ Petition has been filed to direct the respondents to pay the petitioner interest for the belated payment of the petitioner terminal benefits,namely the PF,Gratuity,Surrender leave salary and the earned leave salary,at the rate of 12% per annum to the petitoiners.

2. With the consent of the learned counsel appearing on either side, this Writ Petition is taken up for disposal at the admission stage.

3. It is the case of the petitioners that the petitioners, who had joined the services of the respondent Corporation, had retired from service in the year 2018-2023, however, the terminal benefits have been settled only on 16.04.2025, 12.02.2025, 10.03.2025 & 21.09.2019 respectively. Therefore, the petitioners claimed 12% interest on the belated payment of terminal benefits and they have also made representations on 11.07.2025, 02.07.2025, 22.05.2025, 16.06.2025, 02.07.2025, 15.07.2025 & 16.06.2025, 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.

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

5. 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.

6. Accordingly, this Writ Petition is disposed of. There shall be no order as to costs. 26-02-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No KKN M.DHANDAPANI, J.

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