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

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

What the court decided

AI extract

Outcome

Mandamus granted: respondents to pay interest at 6% per annum for belated payment of the petitioner's terminal benefits (EPF Employee's Contribution, Gratuity, Encashment of Earned/Sick Leave and other monetary benefits) from date of retirement till date of payment, compliance within five months of receipt of a copy of the order; no costs.

Issue for consideration

Whether the petitioner is entitled to interest at 6% for the belated payment of his retirement/terminal benefits (Gratuity, Provident Fund, Leave Salary and Commutation).

Court's answer

The writ petition is allowed; the respondents are directed to pay interest at 6% per annum for the belated payment of the petitioner's terminal benefits, including EPF Employee's Contribution, Gratuity, Encashment of Earned/Sick Leave and other monetary benefits, from the date of his retirement till the date on which the terminal benefits are paid.

Ratio / Principle

The respondents must comply with the interest-payment direction as expeditiously as possible and, at any rate, within a period of five months from the date of receipt of a copy of the order.

Detailed headnote1 paragraphs

Writ of Mandamus - Retirement/terminal benefits - Interest for belated payment - 6% per annum. Petitioner V.Lakshmanan sought interest at 6% on the belated payment of his retirement benefits (Gratuity, Provident Fund, Leave Salary, Commutation) from Tamil Nadu State Transport Corporation (KMB) Ltd. authorities. With the consent of both sides, the petition was disposed of at the admission stage, counsel on either side agreeing that the issue was squarely covered by Division Bench judgments of the Madras High Court in W.A.(MD) No. 403 of 2010 (batch, dated 07.04.2014) and W.A.(MD) No.1419 of 2021 (batch, dated 26.07.2021). The Court allowed the petition and directed the respondents to pay interest at 6% per annum for the belated payment of terminal benefits, including EPF Employee's Contribution, Gratuity, Encashment of Earned/Sick Leave and other monetary benefits, from the date of retirement till the date of payment, compliance to be effected within FIVE MONTHS of receipt of a copy of the order; no costs. (Mummineni Sudheer Kumar, J.)

WP(MD). No.18657 of 2026

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

Dated : 03/07/2026

CORAM

THE HON'BLE MR. JUSTICE MUMMINENI SUDHEER KUMAR

WP(MD). No.18657 of 2026

V.Lakshmanan ... Petitioner

Vs

The Managing Director, Tamil Nadu State Transport Corporation(KMB) Ltd., New Railway Station Road, Kumbakonam 612001.

The General Manager,, Tamil Nadu State Transport Corporation., (KMB) Ltd., Pudukkottai Region, Thirumayam Road, Pillai Thanneer Panthal, Pudukkottai. ... Respondents

PRAYER :- Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus directing the respondents to disburse interest at the rate of 6 percent for the belated payment of retirement benefits Gratuity, Provident Fund, Leave Salary and Commutation and pass such other or further orders as this Honble Court may deem fit and proper in the circumstances of this case and thus render justice.

1/4

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

WP(MD). No.18657 of 2026

For Petitioner : Mr.K.Gokul

For Respondents : Mr.S.C.Herold Singh

ORDER

Mr. S.C.Herold Singh, learned counsel takes notice for the

respondents.

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

3. Heard the learned counsel for the petitioner and the

learned counsel appearing for the respondents.

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 07.04.2014 and W.A.(MD) No.1419 of 2021 and batch, dated 26.07.2021.

2/4

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

WP(MD). No.18657 of 2026

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, including EPF Employee's Contribution, Gratuity Encashment of Earned/Sick Leave and other monetary benefits from the date of his retirement till the date on which the terminal 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.

03.07.2026

CM

To, 1. The Managing Director, Tamil Nadu State Transport Corporation(KMB) Ltd., New Railway Station Road, Kumbakonam 612001.

The General Manager,, Tamil Nadu State Transport Corporation., (KMB) Ltd., Pudukkottai Region, Thirumayam Road, Pillai Thanneer Panthal,Pudukkottai.

3/4

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

WP(MD). No.18657 of 2026

MUMMINENI SUDHEER KUMAR,J

CM

ORDER IN WP(MD) No.18657 of 2026

Date : 03/07/2026

4/4

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