M.Swaminathan, vs The Managing Director,

Court
Madras High Court

WP(MD) No. 30538 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 27-10-2026
CORAM
THE HON'BLE MR JUSTICE B.PUGALENDHI
WP(MD) No. 30538 of 2026
CNR:{HCMD011490262026}
M.Swaminathan,
99CR1001,
S/o.Manickam,
No.2/28, Main Road,
Kabisthalam Post,
Papanasam Taluk,
Thanjavur District-614 203.
..Petitioner
Vs
1. The Managing Director,
Tamil Nadu State Transport Corpn,
(KMB) Ltd,
New Railway Station Road,
Kombakonam 612001
2. The General Manager
Tamil Nadu State Transport Corpn,
(KMB) Ltd,
Kumbakonam Region,
New Railway Station Road,
Kumbakonam 612001
..Respondents
PRAYER: S-38. Writ Petition filed under Article 226 of the
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WP(MD) No. 30538 of 2026
Constitution of India, praying this Court to issue a Writ of
Mandamus, direct the respondents to disburse interest at the rate of 6
percent for the belated payment of retirement benefits Gratuity,
Provident Fund, Leave Salary and Commutation and pass such
further or other orders as this Honble Court may deem fit and proper
in the nature and circumstances of the case and thus render justice.
For Petitioner :Mr.K.Gokul
For Respondents :Mr.P.F.Ferlin Castro
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 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 04.04.1999.
He retired from service as Special Grade Conductor, on 30.04.2025.
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WP(MD) No. 30538 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
20.08.2026 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. 30538 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
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WP(MD) No. 30538 of 2026
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
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WP(MD) No. 30538 of 2026
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 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.
27-10-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
VRN
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WP(MD) No. 30538 of 2026
To
1. The Managing Director,
Tamil Nadu State Transport Corporation
(KMB) Ltd,
New Railway Station Road,
Kombakonam 612001
2. The General Manager
Tamil Nadu State Transport Corporation
(KMB) Ltd,
Kumbakonam Region,
New Railway Station Road,
Kumbakonam 612001
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WP(MD) No. 30538 of 2026
B.PUGALENDHI, J.
vrn
Order made in
WP(MD) No. 30538 of 2026
27.10.2026
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