An employer is legally obligated to pay interest on delayed disbursement of terminal benefits and differential amounts arising from a validly entered Industrial Disputes Act settlement.

PRAYER: The Writ Petition is filed under Article 226 of the Constitution of India seeking issuance of a Writ of Mandamus directing the Respondents to disburse the belated payment of interest amount of provident Fund, Gratuity, commutation and Earned Leave Salary amounts and other unsettle benefits of Difference amount of Gratuity and E.L. Salary as per 12 (3) wage Settlement and 10 days last month salary with effect from 01.07.2025 within the stipulated time as may be fixed by this Court.

For Petitioner(s): Mr. N.Desinghu For Respondent(s): Mr. K. Raja, Standing Counsel

ORDER

The Writ Petition has been filed seeking issuance of a Writ of Mandamus directing the Respondents to disburse the belated payment of interest amount of provident Fund, Gratuity, commutation and Earned Leave Salary amounts and other unsettle benefits of Difference amount of Gratuity and E.L. Salary as per 12 (3) wage Settlement and 10 days last month salary with effect from

01.07.2025 within the stipulated time as may be fixed by this Court.

2. It is the case of the petitioner that he had joined the services of the first respondent-Corporation as a Conductor on 19.02.1987 and had retired from service on 30.06.2025, on attaining the age of superannuation. The petitioner would submit that a settlement was entered into under Section 12(3) of the Industrial Disputes Act, 1947, on 29.05.2025.

3. The contention of the petitioner is that he is entitled to the revision of pay and consequential terminal benefits. However, the said benefits have not been extended to him and he was paid the terminal benefits based on the pre-revised pay and not as per the said settlement and his terminal benefits were also settled belatedly. Therefore, the petitioner had submitted a representation on 23.03.2026 to the respondents to pay interest at the rate of 18% for the belated terminal benefits and the differential amount in leave salary and gratuity as per 12(3) Settlement along with interest, but the same was not considered till date. Hence, the petitioner is before this Court, to espouse the said cause. 4. Heard the learned counsel on either side and perused the materials available on records.

5. The stand of the petitioner cannot be disputed. In view of the Settlement arrived at under Section 12(3) of the Industrial Disputes Act, 1947, which entitles the employees of the Transport Corporation to revision of pay including gratuity and encashment of leave, the respondents are directed (i) 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, and (ii) to pay the eligible differential amount in leave salary and gratuity as per the said Settlement along with admissible interest. The amounts shall be paid to the petitioner within a period of six (6) weeks from the date of receipt of a copy of this order.

6. With the above directions, the Writ Petition is disposed of. There shall be no order as to costs.