Allowed

C.Dharmaraj v. The Tamil Nadu State Transport Corporation (Tirunelveli) Ltd.

Madras HC4 Apr 2025WP(MD)/9448/2025

Case brief

AI extract

What is this about?

A retired transport corporation driver sought interest on terminal and pension benefits paid nearly two years after his retirement. Following an earlier order in C.Murugan, the court allowed the petition and directed respondents to pay 6% per annum interest from retirement until actual disbursement.

What did the court decide?

Respondents to pay interest at 6% p.a. on belated retirement benefits from date of retirement to actual disbursement, within three months.

C.Dharmaraj Vs The Tamil Nadu State Transport… — Pension and Retirement Benefits | Madras HC (2025)

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W.P.(MD)No.9448 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 04.04.2025

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CORAM

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THE HONOURABLE MR.JUSTICE BATTU DEVANAND

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W.P.(MD)No.9448 of 2025

V.Rajan

... Petitioner

Vs.

1.The Tamil Nadu State Transport Corporation (Tirunelveli) Limited, Rep by its Managing Director, Tirunelveli Division,

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Kattapomman Nagar, V.M.Chathiram, Tirunelveli.

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2.The Tamil Nadu State Transport Corporation (Tirunelveli) Limited, Rep by its General Manager, Nagercoil Region, Ranithottam, Nagercoil.

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3.The Administrator,

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Tamil Nadu State Transport Employees Pension Fund Trust, Thiruvalluvar Illam, Anna Salai, Chennai -2. ... 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 12% per annum, for the period of delay from the petitioner's date of retirement (31.05.2023) to till the date of reimbursement (10.03.2025) of amount paid towards the petitioner's terminal and pension benefits namely EPF Employee's contribution, gratuity, encashment of earned/sick leaves and other monetary benefits etc., 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.9448 of 2025

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For Petitioner : Mr.R.Murugan For R1 & R2 : Mr.D.Jebaraj Standing Counsel For R3 : 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 for the period of delay from the petitioner's date of retirement (31.05.2023) to till the date of reimbursement (10.03.2025) of amount paid towards the petitioner's terminal and pension benefits namely EPF Employee's contribution, gratuity, encashment of earned/sick leaves and other monetary benefits etc., within a time frame fixed by this Court.

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2. The petitioner was appointed as Driver in the respondent Corporation on 23.01.1990 and he retired from service on 31.05.2023. The learned counsel

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

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

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W.P.(MD)No.9448 of 2025

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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

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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 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

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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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04.04.2025

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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.9448 of 2025