N.Elangovan, vs The Tamil Nadu State Transport Corporation (Kumbakonam) Ltd,

Court
Madras High Court

WP(MD) No. 30592 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 28-10-2026
CORAM
THE HON'BLE MR. JUSTICE B.PUGALENDHI
WP(MD) No. 30592 of 2026
CNR:{HCMD011518462026}
N.Elangovan,
S/o.P.Namasivayam,
Mela Street,
Mullaikudi Post,
Boothalur Taluk,
Thanjavur District - 613 104
..Petitioner(s)
Vs
1. The Tamil Nadu State Transport Corporation
(Kumbakonam) Ltd,
Represented By Its Managing Director,
Kumbakonam -612 001
2. The General Manager
The Tamil Nadu State Transport Corporation
(kumbakonam) Ltd,
Kumbakonam Region,
Kumbakonam - 612 001
..Respondent(s)
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, praying this court to issue a Writ of Mandamus directing the
respondents to pay interest at the rate of 6 percent per annum on the
delayed disbursement of the petitioners terminal benefits including
Gratuity and Terminal Leave Salary for the period from the date of his
retirement till the date of actual disbursement and consequently direct the
respondent to settle the same to him within a time frame that may be
fixed by this Court.
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WP(MD) No. 30592 of 2026
For Petitioner(s) : Mr.A.Rahul
Advocate
For Respondent(s) : Mr.P.F.Ferlin Castro,
Standing Counsel
ORDER
This writ petition is filed for a Mandamus, directing the
respondents to pay interest to the petitioner at the rate of 6% per annum
for the belated payment of retirement benefits from the date of his
retirement till the actual payment, within the time stipulated by this
Court.
2.The case of the petitioner is that he was appointed as Conductor
in the respondent Transport Corporation on 25.10.2006. After completion
of 17 years of service, he voluntarily retired from service as Selection
Grade Conductor on 31.01.2024. However, the retirement benefits were
settled belatedly, ie. on 11.03.2026. Since the retirement benefits have
been settled belatedly, the respondents are liable to pay interest for the
belated payment. Therefore, the petitioner gave a representation dated
14.07.2026 to the respondents, however, the same did not evoke any
response. Therefore, the petitioner has filed this writ petition.
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WP(MD) No. 30592 of 2026
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 retirement
benefits have been settled to the petitioner on 11.03.2026.
5.By consent of both the parties, the writ petition is taken up for
final hearing at the admission stage itself.
6.This Court paid its anxious consideration to 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
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WP(MD) No. 30592 of 2026
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
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
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WP(MD) No. 30592 of 2026
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 the issue, this writ petition is
disposed of with a direction to the respondents to pay interest at the rate
of 6% per annum on the eligible retirement benefits that were disbursed
belatedly, from 01.02.2024 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.
28-10-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
ogy
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WP(MD) No. 30592 of 2026
To
1. The Managing Director,
Tamil Nadu State Transport Corporation (Kumbakonam) Ltd
Kumbakonam -612 001
2. The General Manager
The Tamil Nadu State Transport Corporation (kumbakonam) Ltd
Kumbakonam Region
Kumbakonam - 612 001
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WP(MD) No. 30592 of 2026
B.PUGALENDHI, J.
ogy
WP(MD) No. 30592 of 2026
28-10-2026
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