Case Note & Summary
The petitioner, a retired Conductor of the Tamil Nadu State Transport Corporation Tirunelveli Limited, filed a writ petition under Article 226 of the Constitution of India seeking a mandamus directing the respondents to pay interest at the rate of 6% per annum on the delayed payment of his retirement benefits, including Provident Fund, Gratuity, Earned Leave and Medical Leave salary, surrender leave salary, and other terminal benefits. The petitioner retired from service on 31.03.2023, but his retirement dues were not settled immediately, resulting in abnormal delay. Learned counsel for the petitioner submitted that the terminal benefits were belatedly paid. The primary legal issue before the court was the entitlement to interest on the belated settlement. The court observed that the issue was no longer res integra and had been consistently dealt with in several earlier writ petitions. Following a previous order of the same court in W.P.(MD)No.4866 of 2023 dated 07.03.2023 (C.Murugan Vs. Tamil Nadu State Transport Corporation (Tirunelveli) Ltd. and Another), the court held that the same relief should be granted. Accordingly, the writ petition was allowed with a direction to the respondents to pay interest at 6% per annum on the belated payment of all retirement benefits from the date of retirement (31.03.2023) until the actual date of payment. No costs were mentioned. The decision underscores the settled principle that employees are entitled to interest on delayed terminal benefits.
Headnote
A) Service Law - Retirement Benefits - Interest on Delayed Payment - Constitution of India, 1950, Article 226 - Petitioner retired on 31.03.2023 and terminal benefits were not settled immediately, causing abnormal delay. The issue of interest on belated settlement is no longer res integra. Following earlier order in C.Murugan Vs. Tamil Nadu State Transport Corporation (Tirunelveli) Ltd. and Another (W.P.(MD)No.4866 of 2023), held that the respondents shall pay interest at 6% per annum on the belated payment of retirement benefits from the date of retirement till actual date of payment. Writ Petition allowed. (Paras 2-5)
Issue of Consideration
Whether the petitioner is entitled to interest on the belated payment of retirement benefits.
Final Decision
The writ petition is allowed. The respondents are directed to pay interest to the petitioner at the rate of 6% per annum on the belated payment of retirement benefits from the date of retirement (31.03.2023) till the actual date of payment.
Law Points
- Interest on delayed retirement benefits payable at 6% per annum
- following precedent
- writ of mandamus issued
- res integra
