An employer is liable to pay interest at a reasonable rate (6% per annum) on terminal benefits disbursed to an employee with significant delay following retirement.

PRAYER: The Writ Petition is filed under Article 226 of the Constitution of India seeking the issuance of a Writ of a Mandamus directing the respondents to disburse the belated payment of interest amount of Provident Fund, Gratuity, Commutation and Earned Leave Salary with effect from 01.07.2025 within the stipulated time as may be fixed by this Court.

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ORDER

The present Writ Petition has been filed seeking the 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 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 joined the services of the respondent Corporation on 01.10.1997 as a Conductor and retired from service as Special Grade Conductor on 30.06.2025, however, the terminal benefits have been settled only on 11.03.2026 with a delay of nine months. Therefore, the petitioner claimed 12% interest on the belated payment of terminal benefits and he has also made a representation dated 10.04.2026 to the respondents to pay interest for the belated payment of terminal benefits, which has not been evoked any response so far. Hence, the petitioner is before this Court.

3. The learned Standing Counsel for the respondent 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 counsels appearing on either side 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 (6) weeks from the date of receipt of a copy of this order.

6. Accordingly, this Writ Petition is disposed of. There shall be no order as to costs.