The court established that an employee is entitled to interest at the rate of 6% per annum on the belated payment of terminal retirement benefits from the date of retirement until the date of actual disbursal.

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 and Earned Leave salary as per 12(3) wage settlement and 10 days last month salary with effect from 01.08.2025.

ORDER

This writ petition is filed for the following relief:

“To direct the respondents to disburse the belated payment of interest amount of Provident Fund, Gratuity and Earned Leave salary as per 12(3) wage settlement and 10 days last month salary with effect from 01.08.2025.”

2. Heard the learned counsels appearing on either side. With the consent of both sides, the Writ Petition is taken up for hearing at the admission stage itself.

3. It is the case of the petitioner that he joined as Junior Assistant in the respondent corporation and retired from service on 31.07.2025. However, the terminal benefits have been settled belatedly and also that the salary for 10 days and difference amount of gratuity and leave salary as per the 12(3) wage settlement were not paid to him. Therefore, the petitioner sent a representation which evoked no response so far. Hence, the present Writ Petition has been filed claiming interest for the belated payment of retirement benefits such as Gratuity, Leave salary, Provident fund and commutation of pension amounts and to pay the salary as stated supra.

4. In view of the limited request made by the petitioner with regard to interest on the belated settlement of retirement benefits such as Gratuity, Leave salary, Provident fund and commutation of pension amounts, this Court directs the respondent to pay interest at the rate of 6% p.a. for the belated payment of retirement benefits from the date of retirement till the date of actual disbursal of the retirement benefits of the petitioner and to pay eligible amount if any, under the 12(3) wage settlement along with interest at the rate of 6% per annum for the delayed period and also to consider the issue in regard to disbursement of the 10 days last month salary as stated supra, if there is no other impediment in disbursing the same, within a period of six weeks from the date of receipt of a copy of this order, taking into account the bank rate of interest on deposits.

5. Accordingly, this Writ Petition is disposed of. No costs.