K.Kalyanasundaram v. The Managing Director

Madras HC22 Apr 2025WP(MD)/11090/2025

Case brief

AI extract

What is this about?

Writ petition mandamus interest belated payment terminal benefits retirement Tamil Nadu State Transport Corporation (Mdu) Limited TNSTC Pension Trust gratuity provident fund leave salary pension commutation 6% per annum date of retirement actual disbursement three months Article 226 Madurai Bench Madras High Court driver retired 31.05.2023 abnormal delay C. Murugan W.P(MD)No.4866 of 2023 res-integra no costs Battu Devanand.

What did the court decide?

Writ of mandamus granted: respondents directed to pay interest at 6% per annum on the belated payment of retirement benefits (Gratuity, Provident Fund, Leave Salary and Pension Commutation) from the date of retirement till the date of actual disbursement, within three months from receipt of a copy of the order; no costs. ¶¶24

K.Kalyanasundaram 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 interest is payable to the petitioner on the belated settlement of his terminal benefits (Gratuity, Provident Fund, Leave Salary and Pension Commutation), and if so at what rate and from what date.

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Court's answer

The issue of interest 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.) by order dated 07.03.2023.

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Ratio / Principle

By following the order in W.P(MD)No.4866 of 2023 (C. Murugan), the writ petition is allowed with directions.

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Key takeaways

The respondents shall pay interest to the petitioner at the rate of 6% per annum on the belated payment of the retirement benefits.ratio¶¶26
Interest runs commencing from the date of retirement till the date of actual disbursement, and is to be paid within a period of three months from the date of receipt of a copy of the order.ratio¶¶27

Detailed headnote1 paragraphs

Madras High Court (Madurai Bench), single judge (Battu Devanand, J.), allowed a writ petition under Article 226 of the Constitution of India filed by K. Kalyanasundaram, a Driver in the Tamil Nadu State Transport Corporation (Mdu) Limited who retired on 31.05.2023, seeking interest on the belated payment of his terminal benefits, namely Gratuity, Provident Fund, Leave Salary and Pension Commutation. Holding that the issue of interest on belated settlement of terminal benefits is no longer res-integra, the Court followed its earlier order in W.P(MD)No.4866 of 2023 (C. Murugan v. Tamil Nadu State Transport Corporation (Tirunelveli) Ltd. and Another) dated 07.03.2023 and directed the respondents, including the Tamil Nadu State Transport Corporation Pension Trust, to pay interest 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. No costs.

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W.P.(MD)No.11090 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 22.04.2025

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CORAM

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THE HONOURABLE MR.JUSTICE BATTU DEVANAND

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W.P.(MD)No.11090 of 2025

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K.Kalyanasundaram ... Petitioner

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Vs.

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1.The Managing Director, Tamil Nadu State Transport Corporation (Mdu) Limited, Bye Pass Road, Madurai - 625016. 2.The Administrator , Tamil Nadu State Transport Corporation Pension Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai - 600002. ... Respondents

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PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Mandamus, directing the respondents to pay interest at the rate of 6% per annum to the petitioner for the belated payment of Gratuity, Provident fund, Leave Salary and Pension Commutation from the date of retirement to the date of actual payment within a time frame as may be fixed by this court.

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

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W.P.(MD)No.11090 of 2025

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For Petitioner : M/s.D.Ramya For R1 : Mr.S.Ramachandra Pradeep Standing Counsel For R2 : Mr.S.C.Herold Singh 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 respondents to pay interest at the rate of 6% per annum to the petitioner for the belated payment of Gratuity, Provident fund, Leave Salary and Pension Commutation from the date of retirement to the date of actual payment within a time frame fixed by this court.

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2. The petitioner was appointed as Driver in the respondent Transport Corporation on 08.03.1999 and he retired from service on 31.05.2023. The learned counsel for the petitioner submits that the petitioner's terminal benefits was not settled immediately and there is an abnormal delay.

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3. 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

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

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W.P.(MD)No.11090 of 2025

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in several Writ Petitions. In fact, the issue involved in this writ petition is no longer res-integra.

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4. This Court in W.P(MD)No.4866 of 2023 (C.MuruganVs. the Tamil Nadu State Transport Corporation (Tirunelveli) Ltd., and Another) by order dated 07.03.2023 has decided this issue.

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5. 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

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of 6% per annum on the belated payment of the retirement benefits

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commencing from the date of retirement, till the date of actual disbursement, within a period of three months from the date of receipt of a copy of this order.

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6. No costs.

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22.04.2025

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NCC:yes/no Index:yes/no Internet:yes/no Sn

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

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W.P.(MD)No.11090 of 2025