Deivam v. Vs The Tamil Nadu State Transport Corporation (Madurai) Limited

Madras HC8 Apr 2026WP(MD)/9500/2026

Case brief

AI extract

What is this about?

Interest on delayed payment of terminal and pension benefits (EPF contribution, gratuity, leave encashment); retiree of Tamil Nadu State Transport Corporation (Madurai); Madras High Court, Madurai Bench; writ allowed with 6% per annum interest from retirement till payment; covered by W.A.(MD) No.403 of 2010 batch and W.A.(MD) No.1419 of 2021 batch; compliance within twelve weeks.

What did the court decide?

Interest at 6% per annum for the belated payment of the petitioner's terminal and pension benefits from his date of retirement till actual payment, to be complied with within twelve weeks from receipt of a copy of the order; no costs. ¶¶5

Deivam v Vs The Tamil Nadu State Transport… — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the respondents are liable to pay interest for the delay in disbursing the petitioner's terminal and pension benefits (EPF employees contribution, gratuity, encashment of earned/sick leaves and other monetary benefits) from his date of retirement (31.01.2025) till reimbursement, and at what rate.

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Court's answer

The 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 and pension benefits (EPF employees contribution, gratuity, encashment of earned/sick leaves and other monetary benefits), from the date of his retirement till the date on which those benefits are paid to him.

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Ratio / Principle

The respondents must comply with the interest direction as expeditiously as possible, and in any event within a period of twelve weeks from the date of receipt of a copy of the order; no costs were awarded.

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Detailed headnote1 paragraphs

Writ of mandamus under Article 226 — Delayed payment of terminal and pension benefits (EPF employees contribution, gratuity, encashment of earned/sick leaves and other monetary benefits) — Petitioner retired 31.01.2025; benefits reimbursed only on 11.03.2026 — Prayer for interest at 12% per annum for the period of delay — With consent of both sides, petition disposed of at the admission stage, counsel agreeing the issue was squarely covered by Division Bench judgments in W.A.(MD) No.403 of 2010 and batch (dated 08.04.2014) and W.A.(MD) No.1419 of 2021 and batch (dated 26.07.2021) — Held: respondents directed to pay interest at 6% per annum for the belated payment of terminal and pension benefits from the date of retirement till the date of payment, compliance directed within twelve weeks from receipt of a copy of the order — No costs.

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W.P.(MD) No.9500 of 2026

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 08.04.2026

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CORAM:

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THE HONOURABLE MR.JUSTICE MUMMINENI SUDHEER KUMAR

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W.P.(MD) No.9500 of 2026

V.Deivam

... Petitioner

-vs-

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

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2.The Administrator Tamil Nadu State Transport Employees Pension Fund Trust Thiruvalluvar Illam Anna Salai, Chennai-2 ... Respondents

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

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a writ of mandamus directing the respondents to pay interest at the rate of 12% per annum for the period of delay from the petitioner's date of retirement (31.01.2025) to till the date of reimbursement (11.03.2026) of amount paid towards the petitioner's terminal and pension benefits, namely, EPF

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

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W.P.(MD) No.9500 of 2026

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employees contribution, gratuity, encashment of earned/sick leaves and other monetary benefits etc., within a time frame as may be fixed by this Court,

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without affecting the petitioner's right to claim balance amounts towards those benefits .

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For Petitioner : Mr.R.Murugan For Respondents : Mr.S.Gladson Michael Rajadurai Standing Counsel for R1 Mr.S.C.Herold Singh Standing Counsel for R2

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O R D E R

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Mr.S.Gladson Michael Rajadurai, learned Standing Counsel, takes

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notice for the first respondent and Mr.S.C.Herold Singh, learned Standing Counsel, takes notice for the second respondent.

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

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3. Heard the learned counsel for the petitioner and the learned Standing Counsels appearing for the respective respondents.

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

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W.P.(MD) No.9500 of 2026

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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 08.04.2014 and W.A.(MD) No.1419 of 2021 and batch, dated 26.07.2021.

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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 and pension benefits, namely, EPF employees contribution, gratuity, encashment of earned/sick leaves and other monetary benefits etc., from the date of his retirement till the date on which the terminal and pension 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.

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08.04.2026

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

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krk

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W.P.(MD) No.9500 of 2026