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K.Palanichamy v. The Managing Director

Madras HC6 Aug 2025WP(MD)/21471/2025

Case brief

AI extract

What is this about?

Belated payment of terminal benefits; 6% interest directed; Tamil Nadu State Transport Corporation (Kovai) Limited; TNSTC Employees' Pension Fund Trust; retirement 31.05.2023; benefits released 10.03.2025; commutation, gratuity, provident fund, current earn leave salary; writ of mandamus; Madurai Bench, Madras High Court; disposed within twelve weeks; no costs.

What did the court decide?

Direction to the respondents to pay 6% interest on the belatedly disbursed terminal benefits (commutation, gratuity, provident fund and current earn leave salary) from the due date till disbursement, within twelve weeks. ¶29

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

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W.P(MD)No.21471 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 06.08.2025

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CORAM

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THE HONOURABLE MR.JUSTICE R.VIJAYAKUMAR

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W.P(MD)No.21471 of 2025

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K.Palanichamy ... Petitioner

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Vs.

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1.The Managing Director, Tamil Nadu State Transport Corporation (Kovai) Limited, No.37, Mettupalayam Road, Coimbatore-641 043.

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2.The General Manager, Tamil Nadu State Transport Corporation (Kovai) Limited, Erode Region, Chennimalai Road, Erode-11.

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3.The Administrator, Tamil Nadu State Transport Corporation Employees' Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai-2. ... Respondents

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Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a 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.21471 of 2025

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settle the interest at the rate of 6% per annum for the belated payment of petitioner's terminal benefits including Commutation, Gratuity, Provident Fund and Current Earn Leave Salary from the date of the petitioner's retirement to till the date on which the said benefits were settled to him, within the time frame fixed by this Court.

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For Petitioner : Mr.S.Prasanth

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For R-1 & R-2 : Mr.K.Ramaiah Standing Counsel For R-3 : Mr.S.C.Herold Singh Standing Counsel

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ORDER

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The present writ petition has been filed by a retired employee of the respondent Transport Corporation seeking payment of interest for the belated disbursement of the terminal benefits.

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2. According to the learned Counsel appearing for the petitioner, the

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petitioner retired on 31.05.2023 and the terminal benefits were released on 10.03.2025. Seeking interest for the belated disbursement, the petitioner has sent a representation on 27.06.2025. Since the same has not been considered, the present writ petition has been filed.

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

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W.P(MD)No.21471 of 2025

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3. Considering the above said facts, the respondents are directed to pay

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