Facts
The petitioner, a Tradesman who retired from the respondent Transport Corporation on 31 March 2025, alleged that his retirement benefits were paid belatedly on 11 March 2026.
Source reference: p. 1–3The benefits included EPF employees’ contribution, gratuity, leave encashment and commuted pension.
Source reference: p. 1–3After his representation seeking interest received no response, he filed a writ petition seeking interest at 18% per annum for the delay.
Source reference: p. 1–3The respondents confirmed that the benefits had been settled on 11 March 2026.
Source reference: p. 3Issues
Whether the petitioner was entitled to interest on retirement benefits paid after his retirement.
Source reference: p. 3–5If so, what rate of interest and period of payment should apply?
Source reference: p. 3, 5–6Law Applied
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, such a claim may be founded on Part III of the Constitution, including Articles 14, 19 and 21.
Source reference: p. 4Following that principle, a Division Bench of the Madras High Court held in W.A.(MD) No. 403 of 2010 and connected matters (common order dated 4 July 2014) that where retirement benefits are delayed, the employer is liable to pay interest, notwithstanding the absence of an express provision in the Pension Fund rules; the rate fixed in that case was 6% per annum.
Source reference: p. 5Reasoning
The Court accepted that the petitioner’s retirement benefits had been paid only on 11 March 2026, after his retirement on 31 March 2025.
Source reference: p. 2–3Applying S.K. Dua and the Division Bench’s ruling on delayed payment by the Transport Corporation, it held that delayed retirement benefits must be compensated by interest.
Source reference: p. 4–6It followed the established rate of 6% per annum rather than the 18% claimed.
Source reference: p. 4–6Holding
The Court disposed of the writ petition and directed the respondents to pay interest at 6% per annum on the eligible retirement benefits disbursed belatedly, calculated from the date of retirement until actual disbursement.
Payment was to be made within six months of receipt of a copy of the order.
Source reference: p. 6No costs were awarded.
Source reference: p. 6Original Court PDF
K.VenugopalvsThe Management of
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