T.Ravikumar v. The Management ofTamil Nadu State Transport Corporation (Madurai) LtdMadurai Regionrep. by its
Case at a glance
Outcome
Disposed of
Following the dictum laid down on this issue, the writ petition is disposed of with a direction to the respondent/ Transport Corporation to pay interest for the belated payment of retirement benefits at the rate of 6% per annum from the date of retirement till the date of actual disbursement, within a period of six months from the date of receipt of a copy of this order
Provisions considered
- Constitution of India arts. 14, 19, 21, 226
Key paragraphs
- Para 66. The employer is liable to settle the retirement benefits to its employees without any delay and in case, if it is settled belatedly, 3/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 2026it has to be compensated by way of interest for the belated payment. In this regard, the…
Judgment
WP.(MD)No.650 of 2026BEFORE THE MADURAI BENCH OF MADRAS HIGH COURTDATED : 09.01.2026CORAM : THE HON`BLE MR.JUSTICE B.PUGALENDHIWP.(MD)No.650 of 2026T.Ravikumar ... PetitionerVs.
The Management of Tamil Nadu State Transport Corporation (Madurai) LtdMadurai Regionrep. by its Managing DirectorMadurai.
The AdministratorTamil Nadu State Transport Employees'Pension Fund TrustThiruvalluvar IllamAnna SalaiChennai - 2. ... RespondentsPrayer : Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of Writ of Mandamus, to direct the respondents to pay interest at the rate of 18% p.a. for the period of delay from 01.06.2024 to 01.12.2025, in paying the 1/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 2026amounts paid towards his terminal and pension benefits, namely, EPF Employee's Contribution, Gratuity, Encashment of leaves and commutation value of pension, within a time frame fixed by this Court. For Petitioner : Mr.S.ArunachalamFor Respondents : Mr.S.C.Herold Singh ORDERSeeking interest for the belated payment of terminal and pension benefits, the petitioner has approached this Court. 2. The case of the petitioner is that he joined as a Driver in the respondent Transport Corporation on 07.09.1988 and retired from service as Special Grade Driver Level-6 on 31.05.2024. However, the retirement benefits were settled to him only on 02.12.2025. Since the benefits have been settled belatedly, the respondents are liable to pay interest for the belated payment. Therefore, the 2/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 2026petitioner gave a representation dated 05.12.2025 to the respondents, however, the same did not evoke any response. Therefore, the petitioner has filed this writ petition for the above said relief.
Mr.S.C.Herold Singh, learned Standing Counsel takes notice on behalf of the respondents and submits that the terminal benefits have been settled to the petitioner, however, belatedly.
By consent of both the parties, the writ petition is taken up for final hearing at the admission stage itself.
This Court paid its anxious consideration to the rival submissions made and also perused the materials placed on record.
The employer is liable to settle the retirement benefits to its employees without any delay and in case, if it is settled belatedly, 3/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 2026it 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 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.” 4/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 20267.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.
Operative part
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 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.” 5/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 20268.Following the dictum laid down on this issue, the writ petition is disposed of with a direction to the respondent/ Transport Corporation to pay interest for the belated payment of retirement benefits at the rate of 6% per annum from the date of retirement till the date of actual disbursement, within a period of six months from the date of receipt of a copy of this order.
No costs. 09.01.2026NCC : Yes/NoIndex : Yes/NoInternet: Yesgns6/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 2026To1.The Managing DirectorTamil Nadu State Transport Corporation (Madurai) LtdMadurai Regionrep. by its Managing DirectorMadurai. 2. The AdministratorTamil Nadu State Transport Employees'Pension Fund TrustThiruvalluvar IllamAnna SalaiChennai - 2.7/8 https://www.mhc.tn.gov.in/judis WP.(MD)No.650 of 2026B.PUGALENDHI,JgnsWP.(MD)No.650 of 2026 09.01.20268/8
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: Following the dictum laid down on this issue, the writ petition is disposed of with a direction to the respondent/ Transport Corporation to pay interest for the belated payment of retirement benefits at the rate of 6% per annum from the date of retirement till the date of actual disbursement, within a period of six months from the date of receipt of a copy of this order
Which statutory provisions did this judgment involve?
Constitution of India — arts. 14, 19, 21, 226.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.