Delayed payment of retirement benefits warrants interest at 6% per annum.

The petitioner, a conductor employed by the respondent Transport Corporation from 31 March 1994, retired as a Special Grade Conductor on 30 June 2024.

His retirement benefits were paid on 2 December 2025.

After his representation seeking interest on the delayed payment received no response, he filed a writ petition seeking interest at 6% per annum from retirement until payment.

The respondents reported that the benefits had been settled on 2 December 2025.

Whether the petitioner was entitled to interest on retirement benefits paid after his retirement.

If so, what rate and period of interest should apply.

Under S.K. Dua v. State of Haryana, (2008) 3 SCC 44, an employee may claim interest on delayed retiral benefits under applicable statutory rules or administrative instructions; even in their absence, a claim may be founded on Articles 14, 19 and 21 of the Constitution, since retiral benefits are not a bounty.

Following that principle, a Division Bench of the Madras High Court held in W.A.(MD) No. 403 of 2010 and connected matters, by order dated 4 July 2014, that delayed payment of retirement benefits by a State Transport Corporation may attract interest at 6% per annum, notwithstanding the absence of an express provision for interest.

The Court exercised its writ jurisdiction under Article 226.

The petitioner’s benefits were paid approximately seventeen months after retirement, and the respondents confirmed the delayed payment.

Applying S.K. Dua and the Division Bench decision on the same issue, the Court held that delayed retirement benefits warranted compensation by way of interest; the absence of an express interest provision did not preclude such relief.

It therefore applied the 6% rate adopted in the Division Bench decision to the eligible benefits for the period of delay.

Payment was ordered within six months from receipt of a copy of the order; no costs were awarded.