Writ petition allowed directing respondents to pay 6% interest on delayed gratuity, PF, leave salary, and pension commutation from retirement date to actual payment within three months, following precedent in C.Murugan case.
Interest at 6% p.a. on belated payment of retirement benefits from date of retirement till actual disbursement within three months.
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W.P.(MD)No.6604 of 2025
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 12.03.2025
CORAM
THE HONOURABLE MR.JUSTICE BATTU DEVANAND
W.P.(MD)No.6604 of 2025
P.Natarajan
... Petitioner
Vs.
1.The Managing Director, Tamil Nadu State Transport Corporation (MDU) Limited, Byepass Road, Madurai – 625 016.
2.The Administrator, Tamil Nadu State Transport Corporation Pension Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai 600 002. ... Respondents
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 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 the time frame as may be fixed by this Court.
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W.P.(MD)No.6604 of 2025
For Petitioner : M/s.D.Ramya For R1 : Mr.K.Ramaiah Standing Counsel For R2 : Mr.S.C.Herold Singh Standing Counsel
O R D E R
This Writ Petition has been filed seeking a writ of mandamus directing the respondents to pay interest at the 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.
2. The petitioner was appointed as Driver in the respondent Corporation on 01.04.1995 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.
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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W.P.(MD)No.6604 of 2025
in several Writ Petitions. In fact, the issue involved in this writ petition is no longer res-integra.
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.
5. Accordingly, by following the order stated supra, this Writ Petition is allowed with the following direction:
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 this order.
6. No costs.
12.03.2025
NCC:yes/no Index:yes/no Internet:yes/no Sn
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W.P.(MD)No.6604 of 2025
To:
Madurai – 625 016.
2.The Administrator, Tamil Nadu State Transport Corporation Pension Trust, Thiruvalluvar Illam, Pallavan Salai,
Chennai 600 002.
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W.P.(MD)No.6604 of 2025
BATTU DEVANAND, J.
Sn
W.P.(MD)No.6604 of 2025
12.03.2025
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1 issue framed by the court
Is the petitioner entitled to interest at 6% per annum on belated payment of terminal benefits from the date of retirement?
Colour shows how this judgement treated each authority
C.Murugan vs. Tamil Nadu State Transport Corporation (Tirunelveli) Ltd. and AnotherFollowed¶25
W.P(MD)No.4866 of 2023 (C.MuruganVs. the Tamil Nadu State Transport Corporation (Tirunelveli) Ltd., and Another)
1 provisions across 1 enactments
P.Natarajan
The Managing Director, Tamil Nadu State Transport Corporation (MDU) Limited
The Administrator, Tamil Nadu State Transport Corporation Pension Trust
BATTU DEVANAND
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
