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G.Subburaj v. The Managing Director

Madras HC3 Apr 2025WP(MD)/9112/2025

Case brief

AI extract

What is this about?

Interest on belated payment of retirement/terminal benefits; delayed gratuity, provident fund, leave salary and pension commutation; 6% per annum interest direction; retired TNSTC driver; Tamil Nadu State Transport Corporation (Mdu) Ltd.; Tamil Nadu State Transport Corporation Pension Trust; writ of mandamus under Article 226; issue no longer res-integra; precedent W.P(MD)No.4866 of 2023 (C. Murugan) order dated 07.03.2023; payment within three months; no costs.

What did the court decide?

Interest at 6% per annum on the belated payment of retirement benefits (Gratuity, Provident Fund, Leave Salary, Pension Commutation) from the date of retirement till the date of actual disbursement, to be paid within three months from receipt of a copy of the order; no costs. ¶27

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

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W.P.(MD)No.9112 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 03.04.2025

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CORAM

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THE HONOURABLE MR.JUSTICE BATTU DEVANAND

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W.P.(MD)No.9112 of 2025

G.Subburaj

... Petitioner

Vs.

1.The Managing Director, Tamil Nadu State Transport Corporation (Mdu) Limited, Bye Pass Road, Madurai - 625016. 2.The Administrator , Tamil Nadu State Transport Corporation Pension Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai - 600002. ... 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 interest at the rate of 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 a time frame as may be fixed by this court.

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

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W.P.(MD)No.9112 of 2025

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For Petitioner : M/s.D.Ramya For Respondents : 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 interest at the rate of 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 a time frame fixed by this court.

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2. The petitioner was appointed as Driver in the respondent Transport Corporation on 01.11.1988 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 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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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.9112 of 2025

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4. This Court in W.P(MD)No.4866 of 2023 (C.MuruganVs. the Tamil

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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

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allowed with the following direction:

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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.

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6. No costs.

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03.04.2025

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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.9112 of 2025