V.M.Sakthivelu Vs the Managing Director — Writ and Judicial Review | Madras HC (2026)

V.M.Sakthivelu Vs the Managing Director — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Direction to the respondents to pay interest at 6% per annum on the petitioner's admissible terminal benefits from the date of retirement (31.05.2019) till the date of actual disbursal (22.01.2021), within six weeks from receipt of a copy of the order; writ petition disposed of with no costs.

Issue for consideration

Whether the petitioner, whose terminal benefits (Provident Fund, Leave Liability, Gratuity and Pension Commutation Amount) were settled belatedly on 22.01.2021 after retirement on 31.05.2019, is entitled to interest for the delayed period, and at what rate (9% per annum claimed).

Court's answer

This Court directs the respondents to pay interest at 6% per annum for the belated payment of the petitioner's admissible terminal benefits (rate adopted following the learned Standing Counsel's submission offering 6%, in place of the 9% claimed in the prayer).

Ratio / Principle

The interest is payable for the period from the date of retirement (31.05.2019) till the date of actual disbursal of the petitioner's terminal benefits (22.01.2021).

Key takeaways

The directed payment of interest is to be completed within six weeks from the date of receipt of a copy of the order.ratio¶¶37

Detailed headnote1 paragraphs

Madras High Court (W.P. No. 7752 of 2026, P.T. Asha J., order dated 02.03.2026): A retired Conductor of the Metropolitan Transport Corporation (Chennai) Ltd., who retired on superannuation on 31.05.2019 but whose Provident Fund, Leave Liability, Gratuity and Pension Commutation Amount were settled only on 22.01.2021, sought by way of a Writ of Mandamus under Section 226 of the Constitution of India interest at 9% per annum on the belated payment of his terminal benefits. The learned Standing Counsel for respondents 1 and 2 fairly offered to pay interest at 6% per annum on the eligible and admissible amount. On that submission, the Court directed the respondents to pay interest at 6% per annum on the admissible terminal benefits from the date of retirement till the date of actual disbursal, within six weeks from receipt of a copy of the order. The writ petition was disposed of with no costs. No precedent cases are cited in the judgment.

W.P.No.7752 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 02.03.2026

CORAM

THE HONOURABLE Ms. JUSTICE P.T. ASHA

W.P.No. 7752 of 2026

V.M.Sakthivelu ...Petitioner

Vs.

The Managing Director, Metropolitan Transport Corporation (Chennai) Ltd., Pallavan Illam, Pallavan Salai, Chennai- 600 002

2.The General Manager Metropolitan Transport Corporation (Chennai) Ltd., Pallavan Illam, Pallavan Salai, Chennai - 600 002

The Administrator, Tamil Nadu State Transport Corporation Employees’ Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai - 600002. ...Respondents

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Prayer:

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 to the petitioner at the rate of 9% per annum for the belated payment of his Provident Fund, Leave Liability, Gratuity and Pension Commutation Amount within a time limit to be stipulated by this Court.

For Petitioner : Mr. J.Lakshminarayanan For Respondents : Mr. R.Balaji 1 & 2 Standing Counsel

O R D E R

This writ petition is filed for the following relief:

“To direct the respondents to pay interest to the petitioner at the rate of 9% per annum for the belated payment of his Provident Fund, Leave Liability, Gratuity and Pension Commutation Amount within a time limit to be stipulated by this Court.”

2.The case of the petitioner is that he was appointed as a Conductor in the respondent corporation on 04.06.1997 and retired 2/6

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W.P.No.7752 of 2026

from service on attaining the age of superannuation on 31.05.2019. However, the terminal benefits have been settled to the petitioner only on 22.01.2021 and no interest has been paid for the delayed period. Therefore, the petitioner had submitted a representation to the respondents dated 09.01.2026, to pay interest for the delayed period. Since the same was not considered, the present writ petition has been filed.

3.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.

4.Heard the learned counsel for both sides and perused the

materials available on record.

5.In view of the above submission of the learned Standing

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 3/6

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W.P.No.7752 of 2026

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.

6.In the result, the Writ Petition is disposed of. No costs.

02.03.2026

kan

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W.P.No.7752 of 2026

To

The Managing Director, Metropolitan Transport Corporation (Chennai) Ltd., Pallavan Illam, Pallavan Salai, Chennai- 600 002

2.The General Manager Metropolitan Transport Corporation (Chennai) Ltd., Pallavan Illam, Pallavan Salai, Chennai - 600 002

The Administrator, Tamil Nadu State Transport Corporation Employees’ Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai - 600002.

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W.P.No.7752 of 2026

P.T. ASHA, J

kan

W.P.No.7752 of 2026

02.03.2026

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