SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(Mad) 24917

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI, J
P. Manickam – Appellant
Versus
The Managing Director, Tamil nadu State Transport Corporation, (Salem) Limited – Respondent
W.P Nos. 1447, 1449 & 1454 of 2026



Advocates:
For the Appellants/Petitioners: Mr. N.Desinghu
For the Respondents: Mr.K.Raja, Mr.C.S.K.Sathish

The Court established the right to claim interest on delayed terminal benefits as per statutory mandates, emphasizing timely disbursement after retirement.

Headnote:The petitioners, retired employees of the Tamil Nadu State Transport Corporation, claimed interest for delayed terminal benefits under Article 226 of the Constitution of India, citing representations made for claims. The Court observed the delayed settlement of benefits and directed the Managing Director to pay interest at 6% from retirement until actual disbursal of dues. Key issue was the lack of timely response to benefits claims. The Court found the petitioners entitled to interest during the delay period. The final order calls for payment of interest within six weeks.

Table of Content
1. claim for interest on delayed terminal benefits (Para 1 , 2)
2. court's observation and review of the case (Para 3)
3. determination to pay interest at 6% on benefits (Para 4)

COMMON ORDER

These Writ Petitions have been filed to direct the respondents to pay interest for the belated payment of Gratuity, P.F and Leave Salary to the petitioners and other unsettled benefits of Difference amount of pension Arrears, Gratuity and Earned Leave salary as per 12 (3) wage Settlement including 10 days salary.

2. It is the case of the petitioners that the petitioners, who had joined the services of the respondent Corporation, retired from service in the year 2024, however, the terminal benefits have been settled only on 02.12.2025. Therefore, the petitioners claimed interest on the belated payment of terminal benefits and they have also made representations on 04.12.2025 & 05.12.2025 to pay interest for the belated payment of terminal benefits as also other benefits to which the petitioner is entitled. However, said representations have not been considered so far. Hence, the petitioners are before this Court.

3. Heard the learned counsel 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 1st respondent to pay interest @ 6% for the belated payment of terminal benefits and to any other benefits to which the petitioners are entitled in accordance with law from the date of retirement till the date of actual disbursal of such benefits of the petitioners, within a period of six (6) 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.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top