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2026 Supreme(Online)(Mad) 42593
IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. Asha, J
C. Ramadass – Appellant
Versus
Managing Director Tamilnadu State Transport Corporation – Respondent
Writ Petition
For the Appellants/Petitioners: P.Manoj Kumar
For the Respondents: S.Pavithra
A state employer is legally obligated to disburse admitted terminal benefits to the legal heirs of a deceased employee within a reasonable timeframe, with interest payable for any inordinate delay.
Headnote:The dispute involves the non-disbursement of accrued terminal benefits, namely gratuity, provident fund, and deposit amounts, payable to the legal heir of a deceased employee under Article 226 of the Constitution of India. The petitioner, as the surviving father, sought a writ of mandamus to compel the transport corporation to release these dues following the death of his son. Upon review, the court determined that the respondents admitted the liability to pay the specified sums but failed to take action despite the submission of necessary legal documents. Key issues concern the obligation of a state-owned entity to timely disburse terminal benefits to eligible legal heirs. The court highlighted the legal necessity of fulfilling these financial obligations without undue delay. The ratio decidendi emphasizes that once an employer acknowledges owing statutory terminal benefits to a deceased employee's representative, it is incumbent upon them to effect payment within a reasonable timeframe, subject to interest for the delay. The writ petition is disposed of with a direction to the respondents to disburse the admitted terminal benefits along with interest at 6% per annum within eight weeks.
| Table of Content |
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| 1. legal heirs are entitled to claim terminal benefits of a deceased employee upon submission of proper documentation. (Para 1 , 2 , 3 , 4) |
| 2. court mandates disbursement of admitted dues along with interest to prevent financial injury due to administrative delay. (Para 5 , 6 , 7 , 8) |
PRAYER: The Writ Petition is filed under Article 226 of the Constitution of India for the issuance of a Writ of Mandamus directing the respondents to disburse the accrued terminal benefits of gratuity, provident fund and IRT Deposit payable to the petitioner in respect of the death of his deceased son MR.C.R.Saravanan (Pay Roll No. 40338) with interest at the rate of 12 percentage per annum from the date of entitlement to till the date of disbursement within a time limit to be stipulated by this Court.
For Petitioner(s): Mr. P.Manoj Kumar For Respondent(s): Ms.S.Pavithra Standing Counsel
ORDER
The present Writ Petition has been filed seeking the issuance of a Writ of Mandamus directing the respondents to disburse the accrued terminal benefits of Gratuity, Provident Rund and IRT Deposit payable to the petitioner in respect of the death of his deceased son MR.C.R.Saravanan (Pay Roll No. 40338) with interest at the rate of 12% per annum from the date of entitlement to till the date of disbursement within a time limit to be stipulated by this Court.
2. The learned counsel for the petitioner submits that the petitioner is the father of a deceased employee who was working as a Driver under the respondent Transport Corporation and died while in service. The deceased son of the petitioner had married on Poongodi; however, the said marriage was subsequently dissolved by a decree of divorce. The petitioner’s wife namely, Chandra Prabha, also passed away in the year 2014. Consequently, the petitioner claims to be one of the surviving legal heirs of the deceased employee.
3. While so, the second respondent issued a communication directing the petitioner to submit the death certificate and legal heirship certificate of his deceased son. Upon submission of the same, the second respondent disbursed a sum of Rs.2,77,226/- to the petitioner towards Death Relief Fund, after deducting the dues and payable by the deceased employee. However, the remaining terminal benefits including Gratuity, Provident Fund and IRT Deposit, have not yet been disbursed to the petitioner.
4. The petitioner has submitted a representation seeking disbursement of the remaining benefits and also sent a reminder; however, no action has been taken by the respondents till date. Aggrieved by the inaction and delay on the part of the respondents in settling the legitimate terminal benefits of his deceased son, the petitioner has approached this Court seeking appropriate relief.
5. Heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondents.
6. Upon perusal of the records, it is observed that the respondents have admitted that a sum of Rs.4,60,641/- towards Gratuity, Rs.5,27,299/- towards Provident Fund, and Rs.4,000/- towards IRT Deposit is due to the petitioner.
Despite this admission, the said amounts have not yet been disbursed.
7. Considering the facts and circumstances of the case, this Court directs the respondents to disburse the aforesaid sums, namely, Rs.4,60,641/- towards Gratuity, Rs.5,27,299/- towards Provident Fund, and Rs.4,000/- towards IRT Deposit, together with interest at the rate of 6% per annum from the date of death of the employee till the date of actual disbursement, within a period of eight (8) weeks from the date of receipt of a copy of this order.
8. With the above directions, this Writ Petition stands disposed of. There shall be no order as to costs.
