[Cites 5, Cited by 0]
Madras High Court
G.Munusamy vs The Managing Director on 23 February, 2026
Author: B.Pugalendhi
Bench: B.Pugalendhi
WP(MD). No.4912 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Dated : 23.02.2026
CORAM
THE HONOURABLE MR. JUSTICE B.PUGALENDHI
WP(MD)No.4912 of 2026
G.Munusamy ... Petitioner
Vs
1. The Managing Director,
Tamil Nadu State Transport Corporation
(Mdu) Ltd.,
Bye Pass Road,
Madurai – 625 016.
2. The General Manager,
Tamil Nadu State Transport
Corporation (MDU) Ltd.,
Dindigul Regional Office,
District Collector Office Post,
Dindigul – 624 004. ... Respondents
Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Mandamus directing the respondents
to pay interest at the rate of 6% per annum to the petitioner for the
belated payment of Gratuity, Provident Fund, EL surrender and Leave
Salary from the date of retirement to the date of actual payment within a
time frame as may be fixed by this Court.
1/6
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WP(MD). No.4912 of 2026
For Petitioner : M/s.D.Ramya
For Respondents : Mr.Gladson Micheal Rajadurai,
Standing Counsel
ORDER
The petitioner was appointed as a Helper in the Transport
Corporation on 24.10.1988 and after rendering 36 years of service, he
retired from service as Senior Grade Tradesman on 31.05.2024.
However, the terminal benefits, namely, Gratuity, Provident Fund, EL
Surrender and Leave Salary, due to the petitioner were settled only on
02.12.2025. Seeking interest for the belated payment, the petitioner gave
a representation to the respondents on 14.02.2026, however, it was not
considered by the respondents. Therefore, the petitioner has filed this
writ petition for the above said relief.
2. Mr.Gladson Micheal Rajadurai, learned Standing Counsel, who
takes notice on behalf of the respondents, submits that the terminal
benefits have been settled to the petitioner, however belatedly.
3. By consent of both the parties, the writ petition is taken up for
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final hearing at the admission stage itself.
4. This Court paid its anxious consideration to the rival
submissions made and also perused the materials placed on record.
5. The employer is liable to settle the retirement benefits to its
employees without any delay and in case, if it is settled belatedly, it has
to be compensated by way of interest for the belated payment. In this
regard, the Hon'ble Apex Court in S.K.Dua vs. State of Haryana
reported in 2008 (3) SCC 44, has held as follows:
“14. In the circumstances, prima facie, we are of
the view that the grievance voiced by the appellant
appears to be well founded that he would be entitled to
interest on such benefits. If there are statutory rules
occupying the field, the appellant could claim payment of
interest relying on such rules. If there are administrative
instructions, guidelines or norms prescribed for the
purpose, the appellant may claim benefit of interest on
that basis. But even in absence of statutory rules,
administrative instructions or guidelines, an employee
can claim interest under Part III of the Constitution
relying on Articles 14, 19 and 21 of the Constitution. The
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submission of the learned counsel for the appellant, that
retiral benefits are not in the nature of “bounty” is, in
our opinion well founded and needs no authority in
support thereof. In that view of the matter, in our
considered opinion, the High Court was not right in
dismissing the petition in living even without issuing
notice to the respondents.”
6. Following the same, in a similar issue, a Division Bench of this
Court, in W.A.(MD)No.403 of 2010, etc. batch, vide common order
dated 04.07.2014, has fixed the rate of interest at 6% per annum and held
as under:-
“5. ..... even though there is no provision in the
Tamil Nadu State Transport Corporation Employees
Pension Fund for payment of interest, cannot stand in the
light of the law laid down by the Supreme Court in
S.K.Dua v. State of Haryana and another, reported in
(2008) 3 SCC 44. As a matter of fact, the Rules do not
contemplate belated payment of retirement benefits. The
Rules contemplate prompt payment. When the Rules
contemplate prompt payment and not bleated payment,
the Rules will not contain a provision for payment of
interest. The Pension Fund which was created as a Trust
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by the Corporation was supposed to act in trust for the
employees' benefit. If the Trust could not make payments
within the time stipulated, then, irrespective of whether
there is any provision for payment of interest or not, the
Corporation is obliged to make payment.”
7. Following the dictum laid down on this issue, the writ petition
is allowed with a direction to the respondents to pay interest, for the
belated payment of retirement/terminal benefits of the petitioner, at the
rate of 6% p.a., within a period of six months from the date of receipt of a
copy of this order. No costs.
23.02.2026
ogy
Index : Yes / No.
Internet: Yes / No.
NCC : Yes / No.
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B.PUGALENDHI, J.
ogy
To
1. The Managing Director,
Tamil Nadu State Transport Corporation
(Mdu) Ltd.,
Bye Pass Road,
Madurai – 625 016.
2. The General Manager,
Tamil Nadu State Transport
Corporation (MDU) Ltd.,
Dindigul Regional Office,
District Collector Office Post,
Dindigul – 624 004.
23.02.2026
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