Employees are entitled to interest on the delayed payment of terminal benefits, such as gratuity and provident fund, from the date of retirement until the actual date of disbursement, at a reasonable market rate determined by the court.

ORDER

This writ petition is filed for the following relief:

“To direct the Respondents to consider the Petitioners representation dated 07.04.2026 to pay interest at 10 percent per annum for the belated payment of leave salary, provident fund and gratuity from the date of retirement until realization.”

2.The case of the petitioner is that he was appointed as a Record Clerk in the respondent corporation on 04.02.1988 and retired from service on attaining the age of superannuation on 30.08.2025. However, the terminal benefits have been settled to the petitioner only on 11.03.2026 and no interest has been paid for the delayed period. Therefore, the petitioner had submitted a representation to the respondents dated 07.04.2026, to pay interest for the delayed period. Since the same was not considered, the present writ petition has been filed.

3.The learned Standing Counsel for respondents 1 and 2 would fairly submit that they are willing to pay the interest at the rate of 6% per annum for the belated payment of the eligible and admissible amount.

4.Heard the learned counsel for both sides and perused the materials available on record.

5.In view of the above submission of the learned Standing Counsel, this Court deems it appropriate to direct the respondents to pay interest at the rate of 6% per annum for the belated payment of admissible terminal 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.

6.With the above direction, the writ petition is disposed of. No costs.