Allowed¶24

V.Seenivasagan v. The Management

Madras HC29 Apr 2025WP(MD)/13189/2025

Case brief

AI extract

What is this about?

Interest on belated/delayed payment of terminal and retirement benefits; 6% per annum interest; EPF Employee's Contribution; Gratuity; Encashment of Leave; retired Conductor; TamilNadu State Transport Corporation (Madurai) Limited, Virudhunagar Region; Writ of Mandamus; Article 226 Constitution of India; Madras High Court Madurai Bench; BATTU DEVANAND, J.; follows W.P(MD)No.4866 of 2023 (C.Murugan v. TNSTC (Tirunelveli) Ltd., order dated 07.03.2023); issue no longer res-integra; interest from date of retirement till actual disbursement; payment within three months; no costs.

What did the court decide?

Interest at 6% per annum on the belated payment of retirement benefits from the date of retirement till date of actual disbursement, payable within three months from receipt of a copy of the order; no order as to costs. ¶24

V.Seenivasagan Vs The Management — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

¶24

Issue for consideration

Whether the respondents are liable to pay interest on the belated settlement of the petitioner's terminal benefits (EPF Employee's Contribution, Gratuity and Encashment of Leave), and if so at what rate and for what period.

¶19

Court's answer

The issue of interest payable on belated settlement of terminal benefits is no longer res-integra, having been dealt with by this Court on various occasions, including in W.P(MD)No.4866 of 2023 (C.Murugan v. TNSTC (Tirunelveli) Ltd.), which the Court followed.

¶19

Ratio / Principle

Respondents directed to pay interest at 6% per annum on the belated payment of retirement benefits, commencing from the date of retirement till date of actual disbursement.

¶25

Key takeaways

The interest is to be paid within a period of three months from the date of receipt of a copy of the order.ratio¶25

Detailed headnote1 paragraphs

Writ petition under Article 226 by a retired Conductor of TamilNadu State Transport Corporation (Madurai) Limited, Virudhunagar Region (appointed 27.01.1993, retired 31.05.2023), seeking a Writ of Mandamus for interest at 6% per annum for the delay from 01.06.2023 to 09.03.2025 in payment of terminal benefits, namely EPF Employee's Contribution, Gratuity and Encashment of Leave. 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., dated 07.03.2023), allowed the writ petition and directed the 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; no order as to costs.

¶1

W.P(MD)No.13189 of 2025

¶2

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 29.04.2025

¶3

CORAM:

¶4

THE HONOURABLE MR. JUSTICE BATTU DEVANAND

¶5

W.P.(MD)No.13189 of 2025

¶6

V.Seenivasagan ...Petitioner

¶7

Vs.

¶8

The Management of TamilNadu State Transport Corporation (Madurai) Limited, Virudhunagar Region, Rep. by its Managing Director, Virudhungar . ...Respondent

¶9

Prayer: Writ Petition is filed under Article 226 of the Constitution of India,

¶10

in the nature of a Writ of Mandamus, directing the respondents to pay the petitioner interest at the rate of 6% per annum, for the period of delay from 01.06.2023 to 09.03.2025 in paying the amounts paid towards his terminal

¶11

benefits namely EPF Employee's Contribution, Gratuity and Encashment of Leave.

¶12

For Petitioner : Mr.S.Arunachalam For Respondent : Mr.S.Raja Standing Counsel

¶13

1/4

¶14

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

¶15

W.P(MD)No.13189 of 2025

¶16

O R D E R

¶17

This Writ Petition has been filed seeking a Writ of Mandamus directing the respondents to pay the petitioner interest at the rate of 6% per annum, for the period of delay from 01.06.2023 to 09.03.2025 in paying the amounts paid towards his terminal benefits namely EPF Employee's Contribution, Gratuity and Encashment of Leave.

¶18

2. The petitioner was appointed as Conductor in the respondent Corporation on 27.01.1993 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.

¶19

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

¶20

2/4

¶21

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

¶22

W.P(MD)No.13189 of 2025

¶23

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.

¶24

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

¶25

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 order.

¶26

There shall be no order as to costs.

¶27

29.04.2025 3/4 Index : Yes / No Internet : Yes / No NCC : Yes / No gvn

¶28

3/4

¶29

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

¶30

W.P(MD)No.13189 of 2025

¶31

BATTU DEVANAND, J.