E.Dayalan v. The Managing Director
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03-06-2026
CORAM
THE HON'BLE MS. JUSTICE P.T. ASHA E.Dayalan (Pay Roll No. 15433 and PPO No. 4865) S/o. Erusan, No. 6/16 New Street, Seruvangi Avvai Nagar, Gudiyatham and Taluk, Vellore district 632 602 ..Petitioner(s) Vs
1. The Managing Director Tamil Nadu State Transport corporation (villupuram ) Ltd., 3/137 Salamedu, Villupuram 605 602
2. The General Manager Tamil Nadu State Transport corporation (villupuram ) Ltd., Vellore Region, Rangapuram, Vellore 632 009 ..Respondent(s) PRAYER: The Writ Petition is filed under Article 226 of the Constitutiion of India seeking the issuance of a Writ of Mandamus directing the respondents to disburse the differential sum of Gratuity and Leave Encashment benefits to the
petitioner based on Dearness Allowance revision with effect from 1.07.2025 with interest at the rate of 9 percent per annum from the said date of entitlement to till the date of actual disbursement within a time limit to be stipulated by this Court.
For Petitioner(s):
Mr. P.Manojkumar A.Brindha Devipriya For Respondent(s):
M/s.S.Pavithra, Standing Counsel
ORDER
The present Writ Petition has been filed seeking the issuance of a Writ of Mandamus directing the respondents to disburse the differential sum of Gratuity and Leave Encashment benefits to the petitioner based on Dearness Allowance revision with effect from 1.07.2025 with interest at the rate of 9 percent per annum from the said date of entitlement to till the date of actual disbursement within a time limit to be stipulated by this Court.
2. It is the case of the petitioner that he joined the services of the respondent-Corporation as a Conductor on 05.03.1995 and retired from service on 31.07.2025 on attaining the age of superannuation, while holding the post of Checking Inspector. The petitioner contends that although the Dearness Allowance (DA) was revised from 55% to 58% of the basic pay, his retirement benefits such as gratuity and leave encashment benefits were erroneously
calculated and disbursed based on the pre-revised rate of 55%. Aggrieved by this, the petitioner submitted a representation dated 01.04.2026 to the respondent, requesting the payment of the differential amount along with interest. However, the said representation has not been considered by the respondents to date. Left with no other alternative, the petitioner has approached this Court.
3. The learned Standing Counsel for the respondent would fairly submit that they are willing to pay the eligible amount along with the interest at the rate of 6% per annum.
4. Heard the learned counsel appearing on either side.
5. In view of the above submission of the learned Standing Counsel, this Court directs the respondents to pay the eligible differential amount of gratuity and leave encashment, along with interest at the rate of 6% per annum, from the date of entitlement till the date of actual disbursement, within a period of six (6) weeks from the date of receipt of a copy of this order.
6. With the above directions, this Writ Petition stands disposed of. There shall be no order as to costs.
03-06-2026 Asi To
1. The Managing Director Tamil Nadu State Transport corporation (villupuram ) Ltd., 3/137 Salamedu, Villupuram 605 602
2. The General Manager Tamil Nadu State Transport corporation (Villupuram ) Ltd., Vellore Region, Rangapuram, Vellore 632 009
P.T.ASHA, J.
Asi 03-06-2026