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S.Ayyadurai v. The Management of

Madras HC25 Apr 2025WP(MD)/11853/2025

Case brief

AI extract

What is this about?

Belated settlement of terminal and pension benefits; interest on delayed gratuity, EPF contribution, leave encashment and commuted pension; Tamil Nadu State Transport Corporation employee retirement dues; 6% per annum interest from date of retirement till actual disbursement; writ of mandamus under Article 226; followed W.P(MD)No.4866 of 2023 (C.Murugan); Madurai Bench of Madras High Court; Battu Devanand, J.; 25.04.2025.

What did the court decide?

Writ petition allowed following the Court's earlier order in W.P(MD)No.4866 of 2023: 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; no order as to costs. ¶30

S.Ayyadurai Vs The Management of — Writ and Judicial Review | Madras HC (2025)

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W.P(MD)No.11853 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.04.2025

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CORAM:

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THE HONOURABLE MR. JUSTICE BATTU DEVANAND

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W.P.(MD)No.11853 of 2025

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S.Ayyadurai ...Petitioner

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Vs.

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The Management of Tamilnadu State Transport Corporation (Kumbakonam) Ltd., Trichy Region, Rep. by its General Manager, Trichy.

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The Administrator, Tamil Nadu State Transport Employees Pension Fund Trust, Thiruvalluvar Illam, Anna Salai, Chennai - 2. ...Respondents

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Prayer: Writ Petition is filed under Article 226 of the Constitution of India, in the nature of a Writ of Mandamus directing the respondents to pay the petitioner interest at the rate of 18% per annum, for the period of delay from 01.06.23 to 09.03.25 in paying the amounts paid towards his

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

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W.P(MD)No.11853 of 2025

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terminal and pension benefits namely EPF Employees Contribution, Gratuity, Encashment of Leaves and Commutated Value of Pension, within a time frame as may be fixed by this Court and without affecting

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his right to claim balance amounts towards those benefits.

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For Petitioner : Mr.S.Arunachalam For R1 : Mr.K.Ramaiah 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

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directing the respondents to pay the petitioner interest at the rate of 18%

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per annum, for the period of delay from 01.06.23 to 09.03.25 in paying

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the amounts paid towards his terminal and pension benefits namely EPF Employees Contribution, Gratuity, Encashment of Leaves and Commutated Value of Pension, within a time frame as may be fixed by this Court and without affecting his right to claim balance amounts towards those benefits.

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

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W.P(MD)No.11853 of 2025

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2. The petitioner was appointed as Conductor Assistant in the respondent Corporation on 10.12.1999 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

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

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W.P(MD)No.11853 of 2025

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The respondents shall pay interest to the petitioner at the rate of

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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 order.

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There shall be no order as to costs.

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25.04.2025 2/6

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Index : Yes / No Internet : Yes / No NCC : Yes / No

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GVN

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

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