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L.Krishnaveni v. The Managing Director

Madras HC23 Jan 2026WP(MD)/1738/2026

Case brief

AI extract

What is this about?

Belated payment of retirement/terminal benefits; interest on gratuity, provident fund, leave salary and pension commutation; death in service; TNSTC (Thirunelveli) Limited; Transport Corporation Employees Pension Trust; writ of mandamus; Article 226; S.K. Dua v. State of Haryana (2008) 3 SCC 44; W.A.(MD)No.403 of 2010 batch; 6% per annum interest; six-month compliance timeline; Madurai Bench; single judge.

What did the court decide?

Interest at 6% per annum on the belatedly paid terminal/retirement benefits (gratuity, provident fund, leave salary, pension commutation) of the petitioner's deceased husband, from the date of retirement till actual disbursement, payable within six months of receipt of a copy of the order; no costs. ¶8

L.Krishnaveni Vs The Managing Director — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioner, whose husband (a Transport Corporation employee who died in service) received his gratuity, provident fund, leave salary and pension commutation only belatedly, is entitled to interest on the delayed payment, and at what rate and from what date.

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Court's answer

The employer is liable to settle retirement benefits without delay, and where settlement is belated it must be compensated by payment of interest.

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Ratio / Principle

Following S.K. Dua v. State of Haryana, (2008) 3 SCC 44, and the Division Bench common order dated 04.07.2014 in W.A.(MD)No.403 of 2010 batch, the respondent Transport Corporation is directed to pay interest at 6% per annum on the belatedly paid retirement benefits from the date of retirement till the date of actual disbursement, within six months of receipt of a copy of the order.

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Detailed headnote1 paragraphs

Writ petition under Article 226 by the widow of a conductor of Tamil Nadu State Transport Corporation (Thirunelveli) Limited who died in service on 02.12.2023, seeking interest for belated payment of his gratuity, provident fund, leave salary and pension commutation, which were settled only on 26.08.2025; her representation dated 20.12.2025 went unanswered. Standing Counsel for the respondents conceded the settlement was belated. Relying on S.K. Dua v. State of Haryana, (2008) 3 SCC 44, and the Division Bench common order dated 04.07.2014 in W.A.(MD)No.403 of 2010 batch (which fixed 6% interest in identical circumstances), Justice B. Pugalandhi held the employer liable to compensate belated settlement of retirement benefits with interest, and disposed of the petition directing the Transport Corporation to pay interest at 6% per annum from the date of retirement till actual disbursement, within six months; no costs. Decided 23.01.2026.

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W.P(MD)No.1738 of 2026

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED: 23.01.2026

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CORAM:

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THE HONOURABLE MR.JUSTICE B.PUGALENDHI

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W.P(MD)No.1738 of 2026

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L.Krishnaveni ... Petitioner

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Vs.

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1.The Managing Director, Tamil Nadu State Transport Corporation (Thirunelveli) Limited, 23/2, Kattaboman Nagar, Thirunelveli-627011.

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2.The General Manager, Tamil Nadu State Transport Corporation (Thirunelveli)Limited, Thiruvanandhapuram Road, Vanarpettai, Thirunelveli-627 003.

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3.The Administrator, Tamil Nadu State Transport Corporation Employee’s Pension Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai 600 002.

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...Respondents

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

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W.P(MD)No.1738 of 2026

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PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus, to direct the respondents to pay interest at the rate of 6% per annum to petitioner for the belated payment of petitioner’s deceased husband’s Gratuity, Provident Fund, Leave salary and Pension Commutation from the date of retirement to the date of actual payment within a time frame as may be fixed by this Court.

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For Petitioner : Mr.D.Ramya For R1 & R2 : Mr.K.Ramaiah, Standing Counsel For R3 : Mr.S.C.Herold Singh Standing Counsel

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ORDER

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Seeking interest for the belated payment of terminal and pension benefits of the petitioner’s husband, the petitioner has approached this Court.

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

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W.P(MD)No.1738 of 2026

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2.The case of the petitioner is that her husband joined as a Conductor in the respondent Transport Corporation on 01.03.1993 and died while he was in service as Special Grade Conductor on 02.12.2023. However, the retirement benefits were settled only on 26.08.2025. Since the benefits have been settled belatedly, the respondents are liable to pay interest for the belated payment. Therefore, the petitioner gave a representation dated 20.12.2025 to the respondents, however, the same did not evoke any response. Therefore, the petitioner has filed this writ petition for the above said relief.

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3.Mr.K.Ramaiah, and Mr.S.C.Herold Singh, learned Standing Counsel takes notice on behalf of the respondents and submit that the terminal benefits have been settled to the petitioner, however, belatedly.

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4.By consent of both the parties, the writ petition is taken up for final hearing at the admission stage itself.

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

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W.P(MD)No.1738 of 2026

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5.This Court paid its anxious consideration to the rival

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submissions made and also perused the materials placed on record.

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6.The employer is liable to settle the retirement benefits to its employees without any delay and in case, if it is settled belatedly, it has to be compensated by way of interest for the belated payment. In this regard, the Hon'ble Apex Court in S.K.Dua vs. State of Haryana reported in 2008 (3) SCC 44 , has held as follows:

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“14. In the circumstances, prima facie, we are of the view

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that the grievance voiced by the appellant appears to be well founded that he would be entitled to interest on such benefits. If there are statutory rules occupying the field, the appellant could claim payment of interest relying on such rules. If there are administrative instructions, guidelines or norms prescribed for the purpose, the appellant may claim benefit of interest on that basis. But even in absence of statutory rules, administrative instructions or guidelines, an employee can claim interest under Part III of the Constitution relying on

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

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W.P(MD)No.1738 of 2026

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Articles 14, 19 and 21 of the Constitution. The submission of the learned counsel for the appellant, that retiral benefits are not in the nature of “bounty” is, in our opinion well founded and needs no authority in support thereof. In that view of the matter, in our considered opinion, the High Court was not right in dismissing the petition in living even without issuing notice to the respondents.”

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7.Following the same, in a similar issue, a Division Bench of this

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Court, in W.A.(MD)No.403 of 2010, etc. batch, vide common order dated 04.07.2014, has fixed the rate of interest at 6% per annum and held as under:-

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“5. ..... even though there is no provision in the Tamil Nadu State Transport Corporation Employees Pension Fund for payment of interest, cannot stand in the light of the law laid down by the Supreme Court in S.K.Dua v. State of Haryana and another, reported in (2008) 3 SCC 44. As a matter of fact, the Rules do not contemplate belated payment of retirement benefits. The Rules contemplate prompt payment. When the Rules contemplate prompt payment and not bleated payment,

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

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W.P(MD)No.1738 of 2026

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the Rules will not contain a provision for payment of interest. The Pension Fund which was created as a Trust by the Corporation was supposed to act in trust for the employees' benefit. If the Trust could not make payments within the time stipulated, then, irrespective of whether there is any provision for payment of interest or not, the Corporation is obliged to make payment.”

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8.Following the dictum laid down on this issue, the writ petition is disposed of with a direction to the respondent/Transport Corporation to pay interest for the belated payment of retirement benefits at the rate of 6% per annum from the date of retirement till the date of actual disbursement, within a period of six months from the date of receipt of a copy of this order. No costs.

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23.01.2026

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NCC: Yes/No Index:Yes/No gns

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

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W.P(MD)No.1738 of 2026

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