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K.Rajaram (Rtd Sp.Gr.Driver) v. The Managing Director

Madras HC18 Mar 2026WP/10657/2026

Case brief

AI extract

What is this about?

Interest on belated terminal benefits — TNSTC (Villupuram); retirement 31.05.2024, disbursement 02.12.2025; claim at 12% p.a., Court directed 6% p.a.; Provident Fund, Gratuity, Sureender (surrender) leave salary; principal Rs.26,28,677/-; Writ of Mandamus under Section 226 of the Constitution of India; representation ignored; writ petition allowed, no costs; payment within six weeks; Madras High Court, P.T. Asha J., 18.03.2026.

What did the court decide?

Payment of interest at 6% per annum on the admissible terminal benefits from the date of retirement till actual disbursal, within six weeks from receipt of a copy of the order; writ petition allowed with no costs. ¶31

K.Rajaram (Rtd Sp.Gr.Driver) Vs The Managing Director — Writ and Judicial Review | Madras HC (2026)

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W.P.No.10657 of 2026

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated : 18.03.2026

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CORAM

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THE HONOURABLE Ms. JUSTICE P.T. ASHA

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W.P.No. 10657 of 2026

K.Rajaram

...Petitioner

Vs.

1.The Managing Director, TNSTC (Villupuram) Ltd., No.3/137, Salamedu, Valudhareddy P.O., Villupuram.

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2.The General Manager TNSTC (Villupuram) Ltd, Vellore Region, Rangapuram, Vellore – 632 009. ...Respondents

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Prayer: Writ Petition is filed under Section 226 of the Constitution of India for issue of Writ of Mandamus, directing the respondents to pay interest at the rate of 12% per annum on the belated payment of terminal benefits viz., Provident Fund, Gratuity and Sureender Leave salary amounting to Rs.26,28,677/- for the period from 31.05.2024 to 02.12.2025 within a time frame to be fixed by this Court. 1/6

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

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W.P.No.10657 of 2026

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For Petitioner : Mr.K.Balakrishnan For Respondents : Ms. Pavithra 1 & 2 Standing Counsel

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O R D E R

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This writ petition is filed for the following relief:

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“To direct the respondents to pay interest at the rate of 12% per annum on the belated payment of terminal benefits viz., Provident Fund, Gratuity and Sureender Leave salary amounting to Rs.26,28,677/- for the period from 31.05.2024 to 02.12.2025 within a time frame to be fixed by this Court”.

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The case of the petitioner is that he was appointed as a Driver in the respondent corporation on 11.04.2001 and retired from service on attaining the age of superannuation on 31.05.2024. However, the terminal benefits have been settled to the petitioner only on 02.12.2025 and no interest has been paid for the delayed period. Therefore, the petitioner had submitted a representation to the respondents to pay

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

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W.P.No.10657 of 2026

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interest for the delayed period. Since the same was not considered, the present writ petition has been filed.

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The learned Standing Counsel for respondents 1 and 2 would fairly submit that they are willing to pay the interest at the rate of 6% per annum for the belated payment of the eligible and admissible amount.

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Heard the learned counsel for both sides and perused the materials available on record.

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In view of the above submission of the learned Standing

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Counsel, this Court deems it appropriate to direct the respondents to pay interest at the rate of 6% per annum for the belated payment of admissible terminal benefits from the date of retirement till the date of actual disbursal of the terminal benefits of the petitioner within a period of six weeks from the date of receipt of a copy of this order.

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

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W.P.No.10657 of 2026

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