A superannuated employee is entitled to interest on terminal benefits if the delay in disbursement is not attributable to the employee's own actions.

ORDER

The writ petition is filed for the below relief:

"directing the respondents to pay interest on the belated payment of terminal benefits namely such as provident fund amount, Gratuity amount and Encashment of Leave salary amount to the petitioner at the rate of 6 percentage per annum, for the period from (30.10.2025) the date of retirement to till the date of actual disbursement, within a time frame.".

2. The brief facts which has culminated in the filing of this writ petition are set out below:

2.1. It is the case of the petitioner that the petitioner was retired from service under Voluntary Retirement Of Service on 30.10.2025. The respondents settled the terminal benefits namely such as provident fund amount, Gratuity amount and Encashment of Leave salary amount with a delay of ten months. Therefore, the respondents are legally bound to pay interest to the petitioner. Therefore, the petitioner made a representation to the respondents to pay the interest at the rate of 6% p.a., for the belated payment of the petitioner’s terminal benefits namely such as provident fund amount, Gratuity amount and Encashment of Leave salary amount. Since there is no response, the petitioner is before this Court.

3. Heard the learned Counsel on either side and perused the materials available on records.

4. Admittedly, the terminal benefits namely such as provident fund amount, Gratuity amount and Encashment of Leave salary amount has been paid belatedly for no fault of the petitioner. Therefore, the petitioner is entitled to interest on the same. Therefore, the Writ petition is allowed as prayed for and a mandamus is issued directing the respondents to disburse the 6% interest for belated payment of provident fund amount, Gratuity amount and Encashment of Leave salary amount for the period from the date of retirement to till the date of actual disbursement within a period of one (1) month from the date of receipt of a copy of this order. No costs.