A.Arumugam (Retd)., v. The Managing Director,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26-03-2026
CORAM
THE HON'BLE MS. JUSTICE P.T. ASHA WP NO. 11053 OF 2026 A.Arumugam (Retd)., Managing Director - AM0135, Plot No.105, salem main road, Grand Avenue, Bharathipuram, Dharmapuri - 636 705.
..Petitioner(s) Vs The Managing Director, Tamilnadu State Transport Corporation (Salem) Ltd., Head Office No.12, Ramakrishna Road, Salem - 636 007.
..Respondent(s) Prayer:- Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of Mandamus directing the respondent corporation to pay the petitioner interest at the rate of 18 percentage per annum, for the period of delay from 31.07.24 to 02.12.25 (16 months) in paying the amounts paid towards his terminal benefits namely EPF Employees Contribution, gratuity and earned leave within a time frame as may be fixed by this Court.
For Petitioner(s):
Mr.S.Sivaskandavarman For Respondent(s):
Ms.P.Pradeepa Standing Counsel Order The Writ Petition has been filed seeking to issue a writ of Mandamus directing the respondent corporation to pay the petitioner interest at the rate of 18 percentage per annum, for the period of delay from 31.05.24 to 02.12.25 (18 months) in paying the amounts paid towards his terminal benefits namely EPF Employees Contribution, commutation, gratuity and earned leave within a time frame as may be fixed by this Court.
2.
The case of the petitioner is that he joined the services of the respondent-Transport Corporation on 16.11.1982 and retired from service on attaining the age of superannuation on 31.07.2024. However, the terminal benefits have been settled to the petitioner on 02.12.2025 and no interest has been paid for the delayed period. Therefore, the petitioner had submitted a representation to the respondent dated 14.01.2026, to pay interest for the delayed period. Since the same was not considered, the present writ petition has been filed.
3.
The learned Standing Counsel for the respondents would fairly submit that they are willing to pay the interest at the rate of 6% per annum for the belated payment of the eligible and admissible amount. 4.
Heard the learned counsel for both sides and perused the materials available on record.
5.
In view of the above submission of the learned Standing Counsel, this Court deems it appropriate to direct the respondents to pay interest at the rate of 6% per annum for the belated payment of admissible terminal benefits from the date of retirement till the date of actual disbursal of the terminal benefits of the petitioners within a period of six weeks from the date of receipt of a copy of this order.
6. In the result, the Writ Petition is disposed of. No costs. 26-03-2026 Index: Yes/No Speaking/Non-speaking order SRN
To The Managing Director, Tamilnadu State Transport Corporation (Salem) Ltd., Head Office No.12, Ramakrishna Road, Salem - 636 007.
P.T.ASHA J.
SRN 26-03-2026