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G.Balasubramaniyan v. The Managing Director

Madras HC3 Feb 2026WP(MD)/2742/2026

Case brief

AI extract

What is this about?

Delayed payment of retirement/terminal benefits; interest at 6% per annum for belated settlement; Tamil Nadu State Transport Corporation (Kum) Limited, Kumbakonam; TNSTC Pension Fund Trust; writ of mandamus under Article 226; S.K. Dua v. State of Haryana 2008 (3) SCC 44; W.A.(MD)No.403 of 2010 batch common order dated 04.07.2014; retirement 31.07.2024; settlement 02.12.2025; representation 06.12.2025; Madurai Bench of Madras High Court; B. Pugalendhi, J.; WP(MD)No.2742 of 2026; decided 03.02.2026; petition allowed, no costs.

What did the court decide?

Interest at 6% per annum on the delayed/belated payment of the petitioner's retirement/terminal benefits, payable within six months from the date of receipt of a copy of the order; no costs. ¶39

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

What the court decided

AI extract

Outcome

Interest at 6% per annum on the delayed/belated payment of the petitioner's retirement/terminal benefits, payable within six months from the date of receipt of a copy of the order; no costs.

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Issue for consideration

Whether the petitioner is entitled to interest on the delayed payment of his retirement/terminal benefits, settled only on 02.12.2025 despite retirement on 31.07.2024, pursuant to his representation dated 06.12.2025. +1 more

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Court's answer

Following the dictum in S.K. Dua v. State of Haryana and the Division Bench common order dated 04.07.2014 in W.A.(MD)No.403 of 2010 batch, the writ petition is allowed with a direction to the respondents to pay interest for the belated payment of the petitioner's retirement/terminal benefits at the rate of 6% per annum.

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Ratio / Principle

The employer is liable to settle retirement benefits to its employees without any delay, and where the settlement is belated, the employee has to be compensated by way of interest for the belated payment.

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Key takeaways

The 6% per annum interest is to be paid within a period of six months from the date of receipt of a copy of the order; no costs awarded.ratio¶39

Detailed headnote1 paragraphs

Madras High Court (Madurai Bench), B. Pugalendhi, J. — WP(MD)No.2742 of 2026, decided 03.02.2026. Petitioner served Tamil Nadu State Transport Corporation (Kum) Limited for 36 years and retired as Senior Assistant Engineer on 31.07.2024; his terminal benefits were settled only on 02.12.2025, and his representation dated 06.12.2025 seeking interest for the belated payment went unconsidered. Holding: the employer is liable to settle retirement benefits without delay, and belated settlement must be compensated by way of interest. Relying on S.K. Dua v. State of Haryana, 2008 (3) SCC 44, and a Division Bench of this Court's common order dated 04.07.2014 in W.A.(MD)No.403 of 2010, etc. batch (which fixed 6%), the respondents — TNSTC (Kum) Ltd. and the TNSTC Pension Fund Trust — were directed to pay interest at 6% per annum on the belated payment within six months from receipt of a copy of the order. Writ petition allowed; no costs.

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WP(MD). No.2742 of 2026

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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Dated : 03.02.2026

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CORAM

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THE HONOURABLE MR. JUSTICE B.PUGALENDHI

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WP(MD)No.2742 of 2026

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G.Balasubramaniyan ... Petitioner

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The Managing Director, Tamil Nadu State Transport Corporation (Kum) Limited, TNSTC Head Office, No.27, Railway Station New Road, Kumbakonam – 612 001.

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The Administrator, Tamil Nadu State Transport Corporation Pension Fund Trust, Thiruvalluvar Illam, Pallavan Salai, Chennai – 2. ... Respondents

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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 6% interest on the delayed payment of retirement benefits paid to the petitioner, from the date of his retirement i.e. 31.07.2024 to actual payment made on 02.12.2025, in view of the petitioner's representation dated 06.12.2025.

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

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WP(MD). No.2742 of 2026

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For Petitioner : Mr.SP.Vijaynivas For Respondents : Mr.SC.Herold Singh, Standing Counsel

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ORDER

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The petitioner was appointed as Assistant Engineer in the Transport Corporation in the year 1987 and after rendering 36 years of service, he retired from service as Senior Assistant Engineer on 31.07.2024. However, the terminal benefits due to the petitioner were settled only on 02.12.2025. Seeking interest for the belated payment, the petitioner gave a representation to the respondents on 06.12.2025, however, it was not considered by the respondents. Therefore, the petitioner has filed this writ petition for the above said relief.

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Mr.SC.Herold Singh, learned Standing Counsel, who takes

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notice on behalf of the respondents, submits that the terminal benefits have been settled to the petitioner, however belatedly.

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By consent of both the parties, the writ petition is taken up for

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

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WP(MD). No.2742 of 2026

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final hearing at the admission stage itself.

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This Court paid its anxious consideration to the rival submissions made and also perused the materials placed on record.

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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 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 Articles 14, 19 and 21 of the Constitution. The

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

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WP(MD). No.2742 of 2026

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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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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, the Rules will not contain a provision for payment of interest. The Pension Fund which was created as a Trust

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

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WP(MD). No.2742 of 2026

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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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Following the dictum laid down on this issue, the writ petition is allowed with a direction to the respondents to pay interest, for the belated payment of retirement/terminal benefits of the petitioner, at the rate of 6% p.a., within a period of six months from the date of receipt of a copy of this order. No costs.

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03.02.2026

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ogy Index : Yes / No. Internet: Yes / No. NCC : Yes / No.

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

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WP(MD). No.2742 of 2026

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B.PUGALENDHI, J.