Rajasekaran M vs The State Express Transport Corporation (Tamil Nadu) Limited

Court
Madras High Court

WP(MD) No. 30796 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 02-11-2026
CORAM
THE HON'BLE MR. JUSTICE B.PUGALENDHI
WP(MD) No. 30796 of 2026
CNR:{HCMD011498962026}
Rajasekaran M
..Petitioner(s)
Vs
The State Express Transport Corporation
(Tamil Nadu) Limited,
Represented by its Managing Director,
Pallavan Salai,
Chennai – 600002.
..Respondent(s)
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, to issue a Writ of mandamus, directing the respondent to pay
interest at the rate of 6% per annum on the Provident Fund for the period
from the date of the petitioner retirement till the date of actual
disbursement and consequently direct the respondent to settle the same to
the petitioner within a time frame that may be fixed by this Court.
For Petitioner(s) :M/s A.Rahul
For Respondent(s) : Mr.S.C.Herold Singh,
Standing Counsel
ORDER
This writ petition is filed for a Mandamus, directing the
respondent to pay interest to the petitioner for the belated payment
of the provident fund from the date of his retirement till the actual
payment, within the time stipulated by this Court.
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WP(MD) No. 30796 of 2026
2.The case of the petitioner is that he worked as a Conductor in
the respondent transport corporation and he retired from service on
30.06.2019. However the provident fund was settled to him only on
31.03.2026. Since the benefits have been settled belatedly, the
respondent is liable to pay interest for the belated payment.
Therefore, the petitioner gave a representation dated 22.06.2026 to
the respondent, however, the same did not evoke any response.
Therefore, the petitioner has filed this writ petition.
3.The learned counsel for the petitioner submits that in similar
writ petitions, this Court has ordered for payment of interest at the
rate of 6% p.a. for the belated payment of retirement benefits and
therefore, the petitioner is also entitled for the same relief.
4. It is reported on behalf of the respondents that the terminal
benefits have been settled to the petitioner in the month of December
2019.
5. By consent of both the parties, the writ petition is taken up
for final hearing at the admission stage itself.
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WP(MD) No. 30796 of 2026
6.This Court has considered the rival submissions made and
also perused the materials placed on record.
7.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:
“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 dismissing the petition in living
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WP(MD) No. 30796 of 2026
even without issuing notice to the respondents.”
8.Following the same, in a similar issue, a Division Bench of
this 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:-
“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.”
9.Following the dictum laid down on this issue, the writ
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WP(MD) No. 30796 of 2026
petition is disposed of with a direction to the respondent/Transport
Corporation to pay interest for the belated payment of retirement
benefits at the rate of 6% per annum from his date of retirement till
the date of actual disbursement, within a period of six months from
the date of receipt of a copy of this order. No costs.
02-11-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
DSK
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WP(MD) No. 30796 of 2026
To
The Managing Director,
State Express Transport Corporation (Tamil Nadu) Limited,
Pallavan Salai,
Chennai – 600002.
B.PUGALENDHI, J.
DSK
WP(MD) No. 30796 of 2026
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WP(MD) No. 30796 of 2026
02-11-2026
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