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2026 Supreme(Online)(Mad) 48965

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. Asha, J
Gandhi – Appellant
Versus
Managing Director Tamil Nadu State Transport Corporation Villupuram Ltd. – Respondent
WP No. 18542 of 2026



Advocates:
For the Appellants/Petitioners: P. Manojkumar
For the Respondents: S. Pavithra

An employee is entitled to interest at the rate of 6% per annum on the belated payment of admissible terminal benefits from the date of retirement until the date of actual disbursal.

Headnote:The petitioner filed a writ petition under Art. 226 of the Constitution of India seeking a mandamus for 9% interest on delayed terminal benefits including Provident Fund, Earned Leave Salary, and Gratuity. The petitioner retired on 31.05.2025, but benefits were settled on 11.03.2026 after a delay of 284 days. The main issue was the eligibility for interest on late payment of retirement dues. The Court observed the respondent's willingness to pay interest at a rate of 6% per annum. The Court determined that terminal benefits should attract interest for the period of delay. The writ petition was disposed of with a direction to the respondents to pay 6% interest per annum on the belated payments within six weeks.

Table of Content
1. petitioner seeking interest for delayed terminal benefits settlement. (Para 1 , 2)
2. court ordered 6% interest on delayed terminal benefits payout. (Para 3 , 4 , 5 , 6)

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 pay interest to the petitioner at the rate of 9 percent per annum for the belated payment of his Provident Fund, Earned Leave Salary and Gratuity Amount within a time limit to be stipulated by this Court.

ORDER

The present Writ Petition has been filed seeking the issuance of a Writ of Mandamus directing the respondents to pay interest to the petitioner at the rate of 9 percent per annum for the belated payment of his Provident Fund, Earned Leave Salary and Gratuity Amount within a time limit to be stipulated by this Court.

2. It is the case of the petitioner that he joined the services of the respondent Corporation on 10.07.1992 as a Conductor and retired from service as Checiking Inspector on 31.05.2025, however, the terminal benefits have been settled only on 11.03.2026 with a delay of 284 days. Therefore, the petitioner claimed 9% interest on the belated payment of terminal benefits and he has also made a representation dated 01.04.2026 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.

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