K.R.v.Josulaouri Vs Tamil Nadu state Transport Corporation (Salem) Ltd.

"directing the respondent to pay the petitioners’ interest for the belated payment of PF, gratuity and earned leave salary at the rate of 12% per annum within a specified time."

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It is the case of the petitioners that after serving in the respondent

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Corporation, they had retired from service, on attaining the age of 2/5

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

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W.P.No.11887 of 2026 superannuation, on 31.05.2024, 30.06.2024, 31.07.2024 respectively. The respondent had settled all the retiral benefits including Service Gratuity, Provident Fund, Leave Salary etc., only on 02.12.2025 with a delay of more than 1 ½ years. Therefore, the respondent is legally bound to pay interest to the petitioners. The petitioners have made representations to the respondent to pay the interest at the rate of 12% p.a., for the belated payment of Provident Fund, Earned Leave Salary, Gratuity Amount. Since the same was not considered to date, the petitioners are before this Court.

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The learned Standing Counsel for the respondent would fairly

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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 on either side and perused the materials available on records.

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Admittedly, the Earned Leave Salary, Gratuity Amount and Provident Amount etc., has been paid belatedly for no fault of the petitioners. Therefore, the petitioners are entitled to interest on the same. Therefore, a mandamus is issued directing the respondent to disburse the 6% interest for belated payment 3/5

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

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W.P.No.11887 of 2026

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of Earned Leave Salary, Gratuity Amount and Provident fund etc., within a period of one (1) month from the date of receipt of a copy of this order.

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