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2026 Supreme(Online)(Mad) 31086

IN THE HIGH COURT OF JUDICATURE AT MADRAS
MUMMINENI SUDHEER KUMAR, J
M.Baskaran – Appellant
Versus
The Managing Director Tamil Nadu State Transport Corporation (MDU) Ltd. – Respondent



Advocates:
For the Appellants/Petitioners: Ms.D.Ramya
For the Respondents: Mr.S.C.Herold Singh

Interest at 6% payable on delayed retirement terminal benefits as per precedents.

Headnote:The petitioner sought a writ of mandamus under Article 226 of the Constitution directing payment of interest at 6% per annum on belated terminal benefits including gratuity, provident fund, EL surrender salary, leave salary, and pension commutation from retirement date. The court noted the facts of delayed payments post-retirement by the transport corporation. The court found the issue covered by prior Division Bench judgments. The sole issue was whether interest is payable on delayed terminal benefits, as framed by reference to precedents. The ratio decidendi relied on Division Bench decisions in W.A.(MD) No.403 of 2010 batch dated 27.03.2014 and W.A.(MD) No.1419 of 2021 batch dated 26.07.2021, holding such interest payable. The writ petition is allowed, directing 6% interest on specified benefits from retirement till payment, compliance within twelve weeks.

Table of Content
1. admission stage disposal with consent. (Para 1 , 2 , 3)
2. issue covered by division bench precedents. (Para 4)
3. direct 6% interest on delayed benefits within 12 weeks. (Para 5)

O R D E R

Mr.S.C.Herold Singh, learned Standing Counsel, takes notice for the respondents.

2. With the consent of both sides, this writ petition is disposed of at the admission stage.

3. Heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondents.

4. Learned counsel on either side unanimously agree that the issue involved in this writ petition is squarely covered by various Judgments passed by the Division Bench of this Court in W.A.(MD) No.403 of 2010 and batch, dated 27.03.2014 and W.A.(MD) No.1419 of 2021 and batch, dated

26.07.2021.

5. In the said circumstances, this writ petition is allowed and the respondents are directed to pay interest to the petitioner at the rate of 6% per annum for the payment of gratuity, provident fund EL surrender salary, leave salary and pension commutation, from the date of his retirement till the date on which the terminal benefits are paid to the petitioner. The respondents are further directed to comply with the said direction as expeditiously as possible, at any rate, within a period of twelve weeks from the date of receipt of a copy of this order. No costs.

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