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C.Mahalingam v. The Managing Director

Mandamus – Interest on delayed terminal benefits

Madras HC9 Apr 2025WP(MD)/10108/2025

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Case brief

AI extract

What is this about?

Interest on delayed payment of terminal/retirement benefits; 6% per annum interest from date of retirement till actual disbursement; writ of mandamus under Article 226; Tamilnadu State Transport Corporation (Madurai) Ltd. and Tamil Nadu State Transport Employees Corporation Pension Fund Trust; driver retired 31.05.2023; follows C. Murugan v. TNSTC (Tirunelveli) Ltd., W.P.(MD) No.4866 of 2023 (order dated 07.03.2023); issue no longer res integra; Madurai Bench of Madras High Court; Battu Devanand, J.; petition allowed, no costs.

What did the court decide?

Writ petition allowed; respondents to pay interest at 6% per annum on the belated payment of retirement benefits from the date of retirement till date of actual disbursement, within three months from receipt of a copy of the order; no costs. ¶33

C.Mahalingam Vs The Managing Director — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioner is entitled to interest at 6% per annum on the belated settlement/payment of his terminal benefits (delay period 31.05.2023 to 10.03.2025).

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Court's answer

The issue of interest payable on belated settlement of terminal benefits is no longer res integra, having already been decided by this Court in W.P.(MD) No.4866 of 2023 (C. Murugan v. Tamil Nadu State Transport Corporation (Tirunelveli) Ltd. and Another) by order dated 07.03.2023.

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Ratio / Principle

Following the order in W.P.(MD) No.4866 of 2023, the respondents are directed to pay interest to the petitioner at 6% per annum on the belated payment of retirement benefits, commencing from the date of retirement till the date of actual disbursement, within three months from receipt of a copy of the order.

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Detailed headnote1 paragraphs

Mandamus - Interest on delayed terminal benefits - Retired Special Grade Driver of Tamilnadu State Transport Corporation (Madurai) Ltd. sought interest at 6% per annum for delay from 31.05.2023 to 10.03.2025 in settlement of terminal benefits, by writ under Article 226 of the Constitution of India. Held, the issue of interest payable on belated settlement is no longer res integra, being covered by the order dated 07.03.2023 in W.P.(MD) No.4866 of 2023 (C. Murugan v. Tamil Nadu State Transport Corporation (Tirunelveli) Ltd. and Another). Following that order, the writ petition was allowed: respondents directed to pay interest at 6% per annum on the belated payment of retirement benefits from the date of retirement till date of actual disbursement, within three months from receipt of a copy of the order. No costs. (Battu Devanand, J., Madurai Bench of Madras High Court, 09.04.2025)

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W.P.(MD) No.10108 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 09.04.2025

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CORAM:

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THE HONOURABLE Mr.JUSTICE BATTU DEVANAND

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W.P.(MD)No.10108 of 2025

C.Mahalingam

... Petitioner

1.The Managing Director, Tamilnadu State Transport Corporation (Madurai) Ltd., Bye Pass road, Madurai.

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2.The Administrator,

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Tamil Nadu State Transport Employees Corporation Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai- 600 002.

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... Respondents

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PRAYER: Petition filed under Article 226 of the Constitution of India,

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praying for issuance of Writ of Mandamus directing the respondents to

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https://www.mhc.tn.gov.in/judis

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W.P.(MD) No.10108 of 2025

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pay interest at the rate of 6% per annum, for the period of delay from 31.05.2023 to 10.03.2025 in paying the amounts paid towards the terminal benefits within a time frame as may be fixed by this Court.

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For Petitioner : Mr.G.M.Xavier For Respondents : Mr.Gladson Micheal Raja Durai Standing Counsel

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O R D E R

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This Writ Petition has been filed seeking a writ of mandamus directing the the respondents to pay interest at the rate of 6% per annum, for the period of delay from 31.05.2023 to 10.03.2025 in paying the amounts paid towards the terminal benefits within a time frame as may be fixed by this Court.

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The petitioner was appointed as Driver in the respondent

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Corporation on 13.10.1995 and he retired from service as Special Grade Driver on 31.05.2023. The learned counsel for the petitioner submits that

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https://www.mhc.tn.gov.in/judis

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W.P.(MD) No.10108 of 2025

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the petitioner's terminal benefits was not settled immediately and there is an abnormal delay.

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In view of the same, the only issue to be considered in this Writ Petition is with regard to interest payable on the belated settlement. This issue was dealt with by this Court on various occasions and this Court passed orders in several Writ Petitions. In fact, the issue involved in this writ petition is no longer res-integra.

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This Court in W.P(MD)No.4866 of 2023 (C.MuruganVs. the

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Tamil Nadu State Transport Corporation (Tirunelveli) Ltd., and

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Another) by order dated 07.03.2023 has decided this issue.

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Accordingly, by following the order stated supra, this Writ Petition is allowed with the following direction:

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The respondents shall pay interest to the petitioner at the rate of 6% per annum on the belated payment of the retirement benefits commencing from the date of retirement, till date of actual disbursement, within a period of three months from the date of receipt of a copy of this

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