Allowed¶27

V.Subramanian v. The Management of

Madras HC11 Mar 2025WP(MD)/6411/2025

Case brief

AI extract

What is this about?

Interest on delayed terminal/pension benefits - TNSTC (Kumbakonam) Ltd. and TNSTC Employees Pension Fund Trust - retired employee claimed 18% p.a. for delay 01.05.2023 to 11.02.2025 in payment of EPF contribution, gratuity, leave encashment, commuted pension - Court held issue no longer res-integra and followed W.P(MD)No.4866 of 2023 (C.Murugan, order dated 07.03.2023) - writ petition allowed - 6% per annum interest from date of retirement till actual disbursement, payable within three months - no costs - Article 226 mandamus - Madurai Bench of Madras High Court - Battu Devanand, J. - decided 11.03.2025.

What did the court decide?

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

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

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the respondents are liable to pay interest for the delay in settling the petitioner's terminal and pension benefits (EPF Employee's contribution, gratuity, encashment of leaves and commutated value of pension), and at what rate.

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Court's answer

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

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Key takeaways

The Court observed that the question of interest payable on belated settlement of terminal benefits had been dealt with on various occasions and that the issue involved in this writ petition is no longer res-integra, which is why it disposed of the petition by following its earlier order in W.P(MD)No.4866 of 2023 dated 07.03.2023 rather than deciding the point afresh.obiter¶25

Detailed headnote1 paragraphs

Madras High Court (Madurai Bench), W.P.(MD)No.6411 of 2025, decided 11.03.2025 by Battu Devanand, J. The petitioner, V.Subramanian, a former Junior Tradesman of the Tamil Nadu State Transport Corporation (Kumbakonam) Limited, Pudukottai Region (appointed 23.01.1987, retired 30.04.2023), sought a mandamus under Article 226 directing payment of interest at 18% per annum for the delay from 01.05.2023 to 11.02.2025 in settling his EPF Employee's contribution, gratuity, encashment of leaves and commutated value of pension. Holding that interest on belated settlement of such benefits is an issue no longer res-integra, the Court followed its own 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 until the date of actual disbursement, within three months of receipt of a copy of the order; no costs.

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W.P.(MD)No.6411 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 11.03.2025

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CORAM

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THE HONOURABLE MR.JUSTICE BATTU DEVANAND

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W.P.(MD)No.6411 of 2025

V.Subramanian

... Petitioner

Vs.

1.The Management of Tamil Nadu State Transport Corporation (Kumbakonam) Limited, Pudukottai Region, Represented by its Managing Director, Pudukottai.

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2.The Administrator, Tamil Nadu State Transport Corporation Employees Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai – 02. ... 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 the petitioner interest at the rate of 18% per annum for the period of delay from 01.05.2023 to 11.02.2025, in paying the amounts paid towards his terminal and pension benefits namely EPF Employee's contribution, gratuity, encashment of leaves and commutated value of pension, within a time frame as may be fixed by this Court and without affected 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.6411 of 2025

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For Petitioner : Mr.S.Arunachalam For R1 : Mr.K.Jagadeesh Balan 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 the petitioner interest for the period of delay from 01.05.2023 to 11.02.2025, in paying the amounts paid towards his terminal and pension benefits namely EPF Employee's contribution, gratuity, encashment of leaves and commutated value of pension, within a time frame fixed by this Court.

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2. The petitioner was appointed as Junior Tradesman in the first respondent Corporation on 23.01.1987 and he retired from service on 30.04.2023. 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

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

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W.P.(MD)No.6411 of 2025

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was dealt with by this Court on various occasions and this Court passed orders

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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 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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11.03.2025

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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.6411 of 2025

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To:

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1.The Managing Director, The Management of Tamil Nadu State Transport Corporation (Kumbakonam) Limited, Pudukottai Region, Pudukottai.

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2.The Administrator, Tamil Nadu State Transport Corporation Employees Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai – 02.

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

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W.P.(MD)No.6411 of 2025

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BATTU DEVANAND, J.

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W.P.(MD)No.6411 of 2025

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11.03.2025

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

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V.Subramanian v. The Management of

Case brief

What is this about?

What did the court decide?

V.Subramanian v. The Management of

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

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Cases cited

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