S.Mariappan vs The Managing Director

Court
Madras High Court

WP(MD) No. 31112 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 30-10-2026
CORAM
THE HON'BLE MR. JUSTICE B.PUGALENDHI
WP(MD) No. 31112 of 2026
CNR:{HCMD011537822026}
S.Mariappan
Staff No.96DR1017436,
No.2/147A,
Mariammam Kovil Street,
Eriyodu,
Vedasandur Taluk,
Dindigul District
..Petitioner
Vs
1. The Managing Director
Tamil Nadu State Transport Corporation (Kovai)
Ltd,
No.37, Mettupalayam Road,
Coimbatore-641 043Coimbatore
2. The General Manager
Tamil Nadu State Transport Corporation (Kovai)
Ltd,
Coimbatore Region,
Mettupalayam Road,
Coimbatore-641 043
..Respondents
PRAYER: S-38 Writ Petition, filed under Article 226 of the
Constitution of India, praying this court to issue a WRIT OF
MANDAMUS, directing the respondents to settle the interest at the rate
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WP(MD) No. 31112 of 2026
of 6 percent per annum for the belated payment of petitioners terminal
benefits including Gratuity, Provident Fund, Earn Leave Salary,
Surrender Leave Salary and Old Leave Salary from the date of the
petitioners retirement to till the date on which the said benefits were
settled to him, within the time frame fixed by this Honble Court, and pass
such further or other orders as this Honble Court may deem fit and proper
in the circumstances of the case and thus render justice.
For Petitioner :Mr. S. Prasanth
For Respondents :Mr.K.Ramaiah
Standing Counsel
O R D E R
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 including
earned leave salary, 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 a
Driver in the respondent Transport Corporation on 06.07.1996. He
retired from service as Special Grade Driver on 31.03.2025.
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WP(MD) No. 31112 of 2026
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
24.09.2026 to the respondents, 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 respondent that the
retirement benefits have been settled to the petitioner on 11.03.2026.
It is also reported that the petitioner claims interest for the earned
leave salary also, which could not be granted.
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WP(MD) No. 31112 of 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 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
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WP(MD) No. 31112 of 2026
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 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'
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WP(MD) No. 31112 of 2026
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 except earned leave salary, that were disbursed belatedly,
from the date of his retirement till the date of actual disbursement,
within a period of three months from the date of receipt of a copy of
this order. No costs.
30-10-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
VRN
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WP(MD) No. 31112 of 2026
To
1. The Managing Director
Tamil Nadu State Transport Corporation (Kovai) Ltd
No.37, Mettupalayam Road
Coimbatore-641 043Coimbatore
2. The General Manager
Tamil Nadu State Transport Corporation (Kovai) Ltd
Coimbatore Region
Mettupalayam Road
Coimbatore-641 043
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WP(MD) No. 31112 of 2026
B.PUGALENDHI, J.
vrn
Order made in
WP(MD) No. 31112 of 2026
30.10.2026
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