Employers must pay interest on delayed retirement benefits, even absent an express statutory provision.

The petitioner, a Special Grade Driver appointed on 24 July 1994, retired on 31 March 2024.

His retirement benefits were paid on 25 August 2025.

After making an unanswered representation dated 23 July 2026, he sought interest for the delayed payment.

Although the petition’s prayer referred to 18% interest for a specified period, the Court recorded the claim as one for interest at 6% per annum.

The respondents reported that the benefits had been settled on 25 August 2025.

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

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, such a claim may be grounded in Articles 14, 19 and 21 of the Constitution.

The Court also relied on the Division Bench decision in W.A.(MD) No. 403 of 2010 and connected cases, dated 4 July 2014, which held that the absence of an express interest provision in the Tamil Nadu State Transport Corporation Employees Pension Fund does not excuse delayed payment, and fixed interest at 6% per annum.

The Court found that the petitioner’s retirement benefits had been paid belatedly.

Applying S.K. Dua and the Division Bench’s ruling on delayed transport-corporation retirement benefits, it held that delay should be compensated by interest, notwithstanding the absence of a specific interest provision in the Pension Fund rules.

It therefore applied the 6% rate set by the Division Bench and calculated interest from retirement until actual disbursement.

No costs were awarded.