S.Selvaganapathi vs The Tamil Nadu State Transport Corporation (Kumbakonam) Limited

Court
Madras High Court

WP(MD) No. 31458 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 04-11-2026
CORAM
THE HON'BLE MR. JUSTICE B.PUGALENDHI
WP(MD) No. 31458 of 2026
CNR:{HCMD011564602026}
S.Selvaganapathi
..Petitioner(s)
Vs
1. The Tamil Nadu State Transport Corporation,
(Kumbakonam) Limited,
Rep By Its Managing Director,
Kumbakonam,
Thanjavur District.
2. The General Manager,
Tamil Nadu State Transport Corporation
(Kumbakonam) Limited,
Kumbakonam Region,
Kumbakonam, Thanjavur District.
..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 the interest at the rate of 18% per annum for the
belated payment of retirement benefits including, Provident Fund, Earned
Leave and medical leave Salary and Gratuity amount, within the time
limit that may be fixed by this Court.
For Petitioner(s) :M/s D.Siva Raman
For Respondent(s) : Mr.S.C.Herold Singh
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WP(MD) No. 31458 of 2026
ORDER
This writ petition is filed for a mandamus, directing the respondent
to pay interest to the petitioner for the belated payment of the payment of
Provident Fund, Earned Leave and medical leave Salary and Gratuity
amount, from the date of his retirement till the date of actual payment,
within the time stipulated by this Court.
2.The case of the petitioner is that he retired from service on
31.05.2025 as Assistant Manager (Non-Technical). However the
retirement benefits were settled to him only on 11.03.2026. 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 30.09.2026 to the respondent, however, the same did
not evoke any response. Hence, 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.
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WP(MD) No. 31458 of 2026
4. It is reported on behalf of the respondents that the terminal
benefits have been settled to the petitioner in the month of March 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 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
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WP(MD) No. 31458 of 2026
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' benefit. If the Trust could not make payments
within the time stipulated, then, irrespective of whether
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WP(MD) No. 31458 of 2026
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 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.
04-11-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
DSK
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WP(MD) No. 31458 of 2026
To
1.The Managing Director,
The Tamil Nadu State Transport Corporation (Kumbakonam) Limited
Kumbakonam,
Thanjavur District.
2. The General Manager,
Tamil Nadu State Transport Corporation,
(kumbakonam) Limited,
Kumbakonam Region,
Kumbakonam,
Thanjavur District.
B.PUGALENDHI, J.
DSK
WP(MD) No. 31458 of 2026
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WP(MD) No. 31458 of 2026
04-11-2026
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