Facts
The petitioner sought interest on terminal benefits payable following her husband’s death while employed by the respondent Transport Corporation on 21 October 2024.
Source reference: p.1–3The benefits were disbursed on 11 March 2026.
Source reference: p.1–3After her representation dated 11 July 2026 elicited no response, she filed the writ petition seeking interest at 18% per annum for the delay.
Source reference: p.1–3The respondent reported that the benefits had been settled on 11 March 2026.
Source reference: p.3Issues
Whether the petitioner was entitled to interest for the delayed payment of her deceased husband’s terminal benefits?
Source reference: p.1–3, p.6–7If so, what rate and period of interest should apply?
Source reference: p.1, p.6–7Law Applied
In S.K. Dua v. State of Haryana, (2008) 3 SCC 44, the Supreme Court recognised that an employee may claim interest on delayed retiral benefits under applicable statutory rules or administrative instructions, and, even in their absence, may invoke Articles 14, 19 and 21 of the Constitution.
Source reference: p.4–5The Court also relied on the Division Bench decision in W.A.(MD) No. 403 of 2010 and connected matters, which fixed interest at 6% per annum and held that the absence of an express interest provision does not absolve the Corporation from paying interest when retirement benefits are delayed.
Source reference: p.5–6Reasoning
The Court accepted that the terminal benefits had been paid belatedly and applied the principle that such delay must be compensated by interest.
Source reference: p.6–7Relying on S.K. Dua and the Division Bench’s determination of a 6% rate in similar cases, the Court granted interest at 6% per annum rather than the 18% sought.
Source reference: p.6–7It directed that interest run from the employee’s death until actual disbursement.
Source reference: p.6–7Holding
The writ petition was disposed of with a direction to the respondent to pay interest at 6% per annum on the eligible terminal benefits, from 21 October 2024—the date of the employee’s death—until the date of actual disbursement, within six months of receiving a copy of the order.
No costs were awarded.
Source reference: p.7Original Court PDF
M.MutharuvsThe Management of
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