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S. Arumugam (C15218) v. Metropolitan Transport Corporation Ltd.

Madras HC17 Feb 2026WP/5230/2026

Case brief

AI extract

What is this about?

Madras High Court; WP No. 5230 of 2026; decided 17-02-2026; M. Dhandapani J.; S.Arumugam v. Metropolitan Transport Corporation Ltd.; Article 226 mandamus; interest on belated payment of terminal benefits; PF, Gratuity and Surrender Leave Salary; 17 months delay; retirement 30.06.2024; disbursal 02.12.2025; representation 12.01.2026; 12% claimed; 6% interest directed; bank rate of interest on deposits; six weeks; no costs.

What did the court decide?

Interest @ 6% per annum on the belated payment of terminal benefits from the date of retirement (30.06.2024) till the date of actual disbursal (02.12.2025), payable within six weeks from receipt of a copy of the order; no order as to costs. ¶27

S. Arumugam (C15218) Vs Metropolitan Transport… — Writ and Judicial Review | Madras HC (2026)

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WP No. 5230 of 2026

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 17-02-2026

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CORAM

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THE HON'BLE MR JUSTICE M.DHANDAPANI

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WP No. 5230 of 2026

S.Arumugam

..Petitioner(s)

Metropolitan Transport Corporation Ltd., Rep. by its Managing Director, No.2, Pallavan Salai, Chennai-600 002

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..Respondent(s)

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Writ Petition filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, directing the Respondent to pay the petitioner interest for the belated payment of 17 months in paying PF, Gratuity and Surrender Leave Salary, with interest at the rate of 12% per annum, within a specified time as may be fixed by this Honble Court.

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For Petitioner(s): Ms.G.K. Dharshini For Respondent(s): Mr.A.Vinoth Raj Standing Counsel

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__________ Page1 of 4

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

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WP No. 5230 of 2026

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ORDER

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This Writ Petition has been filed directing the respondent to pay interest amount to the petitioner for the belated payment of 17 months in paying PF, Gratuity and Surrender Leave Salary, with interest at the rate of 12% per annum, within a specified time as may be fixed by this Hon’ble Court.

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It is the case of the petitioner that the petitioner, who had joined the services of the respondent Corporation, had retired from service on 30.06.2024, however, the terminal benefits have been settled only on 02.12.2025. Therefore, the petitioner claimed 12% interest on the belated payment of terminal benefits and he has also made representation on 12.01.2026 to pay interest for the belated payment of terminal benefits which has not been evoked any response so far. Hence, the petitioner is before this Court.

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Heard the learned counsels appearing on either side and perused the materials available on record.

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In view of the limited request made by the petitioner with regard to interest on the belated payment of terminal benefits, this Court directs the

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Page2 of 4

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

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WP No. 5230 of 2026

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respondent to pay interest @ 6% for the belated payment of terminal benefits from the date of retirement till the date of actual disbursal of terminal benefits of the petitioner, within a period of six weeks from the date of receipt of a copy

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of this order taking into account the bank rate of interest on deposits.

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