Facts
The petitioner, a retired Driving Instructor with the Tamil Nadu State Transport Corporation, retired on 30 April 2025. His retirement benefits were paid on 11 March 2026.
Source reference: p. 2, para. 2After his representation seeking interest for the delay received no response, he filed a writ petition seeking interest at 6% per annum from retirement until payment.
Source reference: p. 2, para. 2The respondents confirmed that the benefits had been paid on 11 March 2026.
Source reference: p. 3, para. 4The petition was taken up for final disposal by consent.
Source reference: p. 3, para. 5Issues
Whether the petitioner was entitled to interest on retirement benefits paid belatedly.
Source reference: pp. 2–3, paras. 2–3, 7–9If so, what rate and period of interest should apply.
Source reference: p. 5, para. 9Law Applied
In S.K. Dua v. State of Haryana, (2008) 3 SCC 44, the Supreme Court held that an employee may claim interest on delayed retiral benefits under applicable statutory rules or administrative instructions; even absent such provisions, a claim may be founded on Articles 14, 19 and 21 of the Constitution.
Source reference: pp. 3–4, para. 7A Division Bench of the Madras High Court, in W.A.(MD) No. 403 of 2010 and connected matters, held that delayed payment of retirement benefits may attract interest notwithstanding the absence of an express provision, and fixed the rate at 6% per annum.
Source reference: pp. 4–5, para. 8Reasoning
The petitioner’s benefits were paid only on 11 March 2026, after his retirement on 30 April 2025.
Source reference: p. 2, para. 2; p. 3, para. 4Applying S.K. Dua and the Division Bench’s ruling concerning Transport Corporation employees, the Court held that retirement benefits should be paid promptly and that delay warrants compensation by way of interest, even where the governing rules do not expressly provide for it.
Source reference: pp. 3–5, paras. 7–9It therefore applied the Division Bench’s 6% rate to the petitioner’s eligible benefits.
Source reference: pp. 3–5, paras. 7–9Holding
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 1 May 2025 until the date of actual disbursement.
Payment was ordered within six months from receipt of a copy of the order; no costs were awarded.
Source reference: p. 5, para. 9Original Court PDF
J.KrishnanvsThe Government of Tamil Nadu
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