P.Ramasamy Vs The Tamil Nadu State Transport… — Writ and Judicial Review | Madras HC (2026)

P.Ramasamy Vs The Tamil Nadu State Transport… — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ allowed: respondents to pay interest at 6% per annum for the belated payment of the petitioner's terminal benefits (provident fund, gratuity, terminal leave salary and commuted value of pension) from the date of his retirement till the date on which the terminal benefits are paid; compliance as expeditiously as possible and at any rate within twelve weeks of receipt of a copy of the order; no costs.

Issue for consideration

Whether the respondents must pay interest at the rate of 6% per annum on the petitioner's belatedly paid terminal benefits (provident fund, gratuity, terminal leave salary and commuted value of pension), for the period from his retirement (31.05.2024) to the date of settlement (02.12.2025), by way of a writ of mandamus.

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 (provident fund, gratuity, terminal leave salary and commuted value of pension), from the date of his retirement till the date on which the terminal benefits are paid to him.

Ratio / Principle

The respondents were further directed to comply with the interest direction as expeditiously as possible and, at any rate, within a period of twelve weeks from the date of receipt of a copy of the order.

Detailed headnote1 paragraphs

Mandamus writ (Art. 226) by a retired employee of TNSTC (Madurai) Ltd. seeking interest at 6% per annum on terminal benefits - provident fund, gratuity, terminal leave salary and commuted value of pension - paid belatedly (retirement 31.05.2024; settlement 02.12.2025, per the prayer). Learned counsel on either side concurred that the issue is squarely covered by Division Bench judgments of this Court in W.A.(MD) No.403 of 2010 and batch (dated 18.03.2014) and W.A.(MD) No.1419 of 2021 and batch (dated 26.07.2021); the writ was disposed of at the admission stage by consent and allowed. Directed: the respondents (the Corporation and its Managing Director; General Manager, Virudhunagar Region; Administrator, Tamilnadu State Transport Corporation Employees Pension Fund Trust) to pay 6% per annum interest from the date of retirement till actual payment of terminal benefits, compliance within twelve weeks; no costs. Coram: MUMMINENI SUDHEER KUMAR, J. (single Judge), Madurai Bench of Madras High Court; order dated 18.03.2026.

W.P.(MD) No.7494 of 2026

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

DATED : 18.03.2026

CORAM:

THE HONOURABLE MR.JUSTICE MUMMINENI SUDHEER KUMAR

W.P.(MD) No.7494 of 2026

P.Ramasamy

... Petitioner

-vs-

1.The Tamil Nadu State Transport Corporation (Madurai) Ltd., rep.by its Managing Director Madurai

2.The General Manager The Tamil Nadu State Transport Corporation (Madurai) Ltd., Virudhunagar Region Virudhunagar

3.The Administrator Tamilnadu State Transport Corporation Employees Pension Fund Trust Thiruvalluvar Illam Pallavan Salai Chennai-600 002 ... Respondents

PRAYER: Petition filed under Article 226 of the Constitution of India, to issue

a writ of mandamus directing the respondents to settle interest at the rate of

Page 1 of 4

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

W.P.(MD) No.7494 of 2026

6% per annum for the belated payment of petitioner's terminal benefits, including provident fund, gratuity, terminal leave salary and commuted value of pension from the date of retirement i.e. from 31.05.2024 to 02.12.2025, the date on which the said benefits were settled to him.

For Petitioner : Mr.A.Rahul For Respondents : Mr.K.Ramaiah Standing Counsel for R1 & R2 Mr.S.C.Herold Singh Standing Counsel for R3

O R D E R

Mr.K.Ramaiah, learned Standing Counsel, takes notice for the respondents 1 & 2 and Mr.S.C.Herold Singh, learned Standing Counsel, takes notice for the third respondent.

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 Standing Counsels appearing for the respective respondents.

Page 2 of 4

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

W.P.(MD) No.7494 of 2026

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 18.03.2014 and W.A.(MD) No.1419 of 2021 and batch, dated 26.07.2021.

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 provident fund, gratuity, terminal leave salary and commuted value of pension, 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 twelve weeks from the date of receipt of a copy of this order. No costs.

18.03.2026 (5/5)

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

krk

_____________ Page 3 of 4_

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

W.P.(MD) No.7494 of 2026

MUMMINENI SUDHEER KUMAR, J.

krk

W.P.(MD) No.7494 of 2026

18.03.2026

(5/5)

_____________ Page 4 of 4_

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