S.Rajakumaran vs The Tamil Nadu State Transport Corporation (Tirunelveli) Ltd

Court
Madras High Court

WP(MD) No. 32008 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 11-11-2026
CORAM
THE HON'BLE MR. JUSTICE B.PUGALENDHI
WP(MD) No. 32008 of 2026
CNR:{HCMD011586572026}
S.Rajakumaran
(EDP No.T2C920183)
1/148, Middle Street,
Aathala Vilai,
Thovalai Taluk,
Kanyakumari District
..Petitioner
Vs
1. The Tamil Nadu State Transport Corporation
(Tirunelveli) Ltd
Rep by its Managing Director,
Tirunelveli Division,
Kattapomman Nagar,
V.M.Chathiram,
TirunelveliTirunelveli
2. The Tamil Nadu State Transport Corporation
(Tirunelveli) Ltd
Rep by its General Manager,
Nagercoil Region,
Ranithottam,
Nagercoil.
3. The Administrator
Tamil Nadu State Transport Corporation
Employees Pension Fund Trust,
Thiruvailuvar Illam,
Anna Salai,
Chennai-2
..Respondents
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WP(MD) No. 32008 of 2026
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 pay interest at the rate of 12
percent per annum, for the period of delay from the petitioners date of
retirement (28.02.2025) to till the date of reimbursement (11.03.2026) of
amount paid towards the petitioners terminal and pension benefits namely
EPF Employees Contribution, Gratuity, Encashment of Earned/Sick
Leaves and other monetary benefits etc., within a time frame as may be
fixed by this Honble Court, without affecting the petitioners right to
claim balance amounts towards those benefits and pass any such other
further orders that may deems fit and proper to the facts and the
circumstances of the case and thus render justice.
For Petitioner :Mr. R.Murugan
For Respondents :Mr.Joseph Jerry
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 12% 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 a
Conductor in the respondent Transport Corporation on 23.12.1992.
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WP(MD) No. 32008 of 2026
He retired from service as Special Grade Conductor, on 28.02.2025.
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
26.10.2026 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.
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. 32008 of 2026
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 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
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WP(MD) No. 32008 of 2026
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' 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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WP(MD) No. 32008 of 2026
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 the date of his
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.
11-11-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
VRN
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WP(MD) No. 32008 of 2026
To
1. The Tamil Nadu State Transport Corporation (Tirunelveli) Ltd
Rep by its Managing Director
Tirunelveli Division
Kattapomman Nagar
V.M.Chathiram
TirunelveliTirunelveli
2. The Tamil Nadu State Transport Corporation (Tirunelveli) Ltd
Rep by its General Manager
Nagercoil Region
Ranithottam
Nagercoil
3. The Administrator
Tamil Nadu State Transport Corporation Employees Pension Fund
Trust
Thiruvailuvar Illam
Anna Salai
Chennai-2
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WP(MD) No. 32008 of 2026
B.PUGALENDHI, J.
vrn
Order made in
WP(MD) No. 32008 of 2026
11.11.2026
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