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2026 Supreme(Online)(Mad) 37096
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mummineni Sudheer Kumar, J
M.Kumar – Appellant
Versus
Management of Tamilnadu State Transport Corporation (Kumbakonam) Ltd. – Respondent
For the Appellants/Petitioners: Mr.S.Arunachalam
For the Respondents: Mr.K.Ramaiah, Standing Counsel
Entitlement to 6% interest on delayed terminal benefits for retired transport corporation employees.
Headnote:The petitioner sought a writ of mandamus under Article 226 of the Constitution of India directing payment of interest at 18% per annum on delayed terminal benefits including EPF contribution, gratuity, and leave encashment. The court noted the petitioner's retirement and respondent's delay in disbursing benefits. The court found the issue covered by prior Division Bench judgments. The court framed no distinct issues, relying on precedents from W.A.(MD) No.403 of 2010 batch dated 27.04.2014 and W.A.(MD) No.1419 of 2021 batch dated 26.07.2021. The ratio decidendi established entitlement to interest on belated terminal benefits for retired employees of the transport corporation. The writ petition is allowed, directing payment of 6% interest per annum on terminal benefits from retirement date till payment, to be complied within five months.
| Table of Content |
|---|
| 1. counsel takes notice and consent for disposal at admission. (Para 1 , 2) |
| 2. issue covered by prior division bench judgments. (Para 3 , 4) |
| 3. direct 6% interest on delayed terminal benefits. (Para 5) |
O R D E R
Mr.K.Ramaiah, learned Standing Counsel, takes notice for the respondent – Transport Corporation.
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 respondent – Transport Corporation.
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 27.04.2014 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 respondent is directed to pay interest at the rate of 6% per annum for the belated payment of the petitioner's terminal benefits, namely, EPF employee's contribution, gratuity and encashment of leaves, from the date of his retirement till the date on which those benefits are paid to the petitioner. The respondent is further directed to comply with the said direction as expeditiously as possible, at any rate, within a period of five months from the date of receipt of a copy of this order. No costs.
