T.Ayyappan v. The Management of

Madras HC17 Apr 2026WP(MD)/10774/2026

Case brief

AI extract

What is this about?

Delayed payment of terminal benefits interest mandamus; State Express Transport Corporation (Tamilnadu) Ltd.; Tamil Nadu State Transport Employees' Pension Fund Trust; W.P.(MD) No.10774 of 2026; Article 226; 6% per annum interest on EPF contribution, gratuity, leave encashment, commuted pension; reliance on W.A.(MD) No.403 of 2010 batch (17.04.2014) and W.A.(MD) No.1419 of 2021 batch (26.07.2021); disposal at admission stage; five-month compliance timeline; Mummineni Sudheer Kumar, J.; 17.04.2026.

What did the court decide?

Interest at 6% per annum payable by the respondents on the petitioner's terminal benefits (EPF employee's contribution, gratuity, encashment of leaves and commutated value of pension) from the date of his retirement till the date of actual payment, compliance within five months from receipt of a copy of the order; no costs.

T.Ayyappan Vs The Management of — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioner is entitled to interest for the delay in payment of his terminal benefits (EPF employee's contribution, gratuity, encashment of leaves and commutated value of pension), and if so at what rate and for what period.

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Court's answer

This Court allowed the writ petition and directed the respondents to pay interest at the rate of 6% per annum for the belated payment of the petitioner's terminal benefits, namely EPF employee's contribution, gratuity, encashment of leaves and commutated value of pension, from the date of his retirement till the date on which those benefits are paid, the issue being covered by earlier Division Bench judgments.

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Ratio / Principle

The respondents were further directed to comply with the interest-payment direction as expeditiously as possible, at any rate within a period of five months from the date of receipt of a copy of the order; no costs were awarded.

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Detailed headnote1 paragraphs

Writ of mandamus (Article 226) before the Madurai Bench by T.Ayyappan against the Management of State Express Transport Corporation (Tamilnadu) Ltd. and the Administrator, Tamil Nadu State Transport Employees' Pension Fund Trust, seeking interest for delay in payment of his terminal benefits, namely EPF employee's contribution, gratuity, encashment of leaves and commutated value of pension (delay period stated in the prayer as 01.08.2025 to 10.03.2026, interest sought at 18% per annum). With the consent of both sides the petition was disposed of at the admission stage, counsel agreeing the issue was squarely covered by Division Bench judgments in W.A.(MD) No.403 of 2010 batch (17.04.2014) and W.A.(MD) No.1419 of 2021 batch (26.07.2021). Petition allowed: respondents directed to pay interest at 6% per annum from the date of retirement till actual payment, compliance expeditiously and within five months from receipt of a copy of the order; no costs.

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W.P.(MD) No.10774 of 2026

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 17.04.2026

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CORAM:

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THE HONOURABLE MR.JUSTICE MUMMINENI SUDHEER KUMAR

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W.P.(MD) No.10774 of 2026

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T.Ayyappan ... Petitioner

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-vs-

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1.The Management of State Express Transport Corporation (Tamilnadu) Ltd., rep.by its Managing Director Pallavan Salai, Chennai-2

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2.The Administrator Tamil Nadu State Transport Employees' Pension Fund Trust Thiruvalluvar Illam Anna Salai, Chennai-2 ... Respondents

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PRAYER: Petition filed under Article 226 of the Constitution of India, to issue a writ of mandamus directing the respondents to pay the petitioner interest at the rate of 18% per annum for the period of delay from 01.08.2025 to 10.03.2026 in paying the amounts paid towards his terminal benefits, namely, EPF employee's contribution, gratuity, encashment of leaves and commutated value of pension, within a time frame as may be fixed by this Court, without affecting his right to claim balance amounts towards those benefits.

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Page 1 of 4

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

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W.P.(MD) No.10774 of 2026

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For Petitioner : Mr.S.Arunachalam For Respondents : Mr.S.C.Herold Singh Standing Counsel

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O R D E R

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Mr.S.C.Herold Singh, learned Standing Counsel, takes notice for the respondents.

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2. With the consent of both sides, this writ petition is disposed of at the admission stage.

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3. Heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondents.

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4. Learned counsel on either side unanimously agree that the issue involved in this writ petition is squarely covered by various Judgments passed by the Division Bench of this Court in W.A.(MD) No.403 of 2010 and batch, dated 17.04.2014 and W.A.(MD) No.1419 of 2021 and batch, dated 26.07.2021.

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Page 2 of 4

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

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W.P.(MD) No.10774 of 2026

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5. In the said circumstances, this writ petition is allowed and the respondents are directed to pay interest at the rate of 6% per annum for the belated payment of the petitioner's terminal benefits, namely, EPF employee's contribution, gratuity, encashment of leaves and commutated value of pension, from the date of his retirement till the date on which those benefits are paid to the petitioner. The respondents are further directed to comply with the said direction as expeditiously as possible, at any rate, within a period of five months from the date of receipt of a copy of this order. No costs.

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17.04.2026

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(1/2)

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NCC : Yes / No Index : Yes / No Internet : Yes / No

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krk

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Page 3 of 4

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