Court awards 6% interest on belated retirement benefits based on bank deposit rates.

PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying for a writ of Mandamus, directing the respondents to pay interest @ 10% for the belated payment of Leave Salary and Commutation amount to the petitioner.

For Petitioner(s): Mr.S.T.Varadarajalu For Respondent(s): Mr.R.BAlaji Standing Counsel, for R1 Mr.C.S.Ksathish, for R2

ORDER

The writ petition is filed praying for a Writ of Mandamus, directing the respondents to pay interest @ 10% for the belated payment of Leave Salary and Commutation amount to the petitioner.

2. The learned counsel for the petitioner and the respondents in unison submitted that the issue raised in the present writ petition stands covered by the judgment of this Court in W.P.No.32130 of 2025 [K.B.Srinivasaragavan vs. The Managing Director, Tamil Nadu State Transport Corporation (Villupuram) Ltd.] dated 28.08.2025, wherein this Court was pleased to issue the following order, the relevant portions of which is extracted hereunder:

" The above writ petition is filed seeking a mandamus to the respondents to pay 10 percent interest for the belated payment of terminal benefits such as Gratuity and Leave Salary to the petitioner.

2. It is an admitted fact that the petitioner, who had joined the services of the respondent~Corporation, had retired from service on 30.04.2019. Though the petitioner had retired on 30.04.2019, the retirement benefits had been deposited into his account only on 22.01.2021 after a gap of nearly 21 months from the date of his retirement. Therefore, the petitioner had claimed interest @10% towards the belated payment of terminal benefits. However, the respondents have not taken any steps whatsoever to consider the petitioner’s representation dated 30.07.2025. The fact that the payments have been made with a delay has not been controverted by the respondents.

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

4. Considering the above facts and circumstances of the case, a mandamus is issued to the respondents to pay interest @ 6% for the belated payment of the retirement benefits from the date of retirement till the date of actual disbursal of the terminal benefits of the petitioner, 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. ”

3. Accordingly, the Writ Petition stands disposed of on similar terms.