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2026 Supreme(Online)(Mad) 49643

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. Asha, J
Abdul Mazeeth – Appellant
Versus
Metropolitan Transport Corporation – Respondent
WP.19788/2026



Advocates:
For the Appellants/Petitioners: D.Soundar Raj
For the Respondents: A.Vinothraj

An employee is entitled to interest on late payment of terminal benefits, and the court may issue a writ of mandamus to ensure compliance by the employer within a specified timeframe.

Headnote:The petitioner filed a writ petition seeking a mandamus to direct the respondent corporation to disburse retirement benefits along with 6% interest, citing failure to consider representations dated 27.03.2026 and 15.04.2026. The petitioner had been in service since 1988 and retired on 31.03.2026. The primary issue before the court was the delayed settlement of terminal benefits. The court noted the fair submission of the respondent’s counsel agreeing to settle the eligible amounts along with interest. The court disposed of the writ petition with a direction to the respondents to disburse the terminal benefits with 6% interest per annum within six weeks from the receipt of the order.

Table of Content
1. failure to disburse terminal benefits post-superannuation necessitates judicial intervention. (Para 1 , 2)
2. court directs payment of terminal benefits with interest for delayed disbursement. (Para 3 , 4 , 5 , 6)

Prayer: This writ petition is filed under Article 226 of the Constitution of India seeking writ of mandamus directing the 1st respondent herein to settle the retirement benefits with 6 percentage interest to the petitioner herein by considering the representation of the petitioner dated 27.03.2026 and 15.04.2026.

Order

This writ petition is filed for the following relief:

“To direct the 1st respondent herein to settle the retirement benefits with 6 percentage interest to the petitioner herein by considering the representation of the petitioner dated 27.03.2026 and 15.04.2026.”

2.The case of the petitioner is that he was appointed in the respondent corporation on 15.09.1988 and retired from service on attaining the age of superannuation on 31.03.2026. However, the terminal benefits have not been settled to the petitioner till date. Therefore, the petitioner had submitted a representation to the respondent dated 27.03.2026 and 15.04.2026, requesting them to settle retirement benefits. 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 would settle the eligible and admissible amount with 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 the eligible and admissible amount with interest at the rate of 6% per annum for the belated payment of the eligible and admissible amount, 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.

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