A retired conductor sought interest for belated settlement of terminal benefits. Following Supreme Court and Division Bench precedents, the court directed respondents to pay interest at 6% per annum on the delayed terminal benefits within six months.
Interest at 6% p.a. on belated terminal benefits, payable within six months from receipt of copy of order.
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WP(MD). No.844 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Dated : 12.01.2026
CORAM
THE HONOURABLE MR. JUSTICE B.PUGALENDHI
WP(MD)No.844 of 2026
P.Lenin ... Petitioner
Vs
Bye pass Road, Madurai – 625 016.
Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus directing the 2nd respondent to pay interest of Rs.3,13,285/- at the rate of 10% towards delayed payment of terminal benefits and accrued interest thereafter for the period from 01.07.2024 to 02.12.2025 the date of actual payment.
For Petitioner : Mr.K.K.Samy
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For R1 and R2 : Mr.S.Raja Standing Counsel
ORDER
The petitioner was appointed as a Conductor in the Transport Corporation and he retired from service on 30.06.2024. However, the terminal benefits due to the petitioner were settled belated. Seeking interest for the belated payment, the petitioner has filed this writ petition for the above said relief.
behalf of the respondents, submits that the terminal benefits have been settled to the petitioner, however belatedly.
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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 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
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dismissing the petition in living even without issuing notice to the respondents.”
“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 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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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.
12.01.2026 ogy Index : Yes / No. Internet: Yes / No. NCC : Yes / No. To
Bye pass Road, Dindigul.
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WP(MD). No.844 of 2026
B.PUGALENDHI, J.
ogy
WP(MD) No.844 of 2026
12.01.2026
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2 issues framed by the court
Whether an employee whose terminal benefits were paid belatedly is entitled to interest on the delayed payment.
At what rate interest should be paid on delayed retirement benefits by a transport corporation.
Colour shows how this judgement treated each authority
S.K.Dua vs. State of HaryanaFollowed¶5
2008 (3) SCC 44 · Who else cites this
W.A.(MD)No.403 of 2010Followed¶6
1 provisions across 1 enactments
P.Lenin
The Managing Director, Tamil Nadu State Transport Corporation (MDU) Ltd.,
The General Manager, Tamil Nadu State Transport Corporation (MDU) Ltd.,
B.Pugalendhi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
