M Palanisamy Jo 6844 v. The Managing Director
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 02.09.2025 CORAM :
THE HONOURABLE MR. JUSTICE A.D.JAGADISH CHANDIRA
1. M Palanisamy (J06844) S/o Mariappan, 126/48, Chennampatti West, Anthiyur Tk, Erode District 638 504.
2.R. Tamilarasan (J06339) 21 Station Pudur, Pasur Post, Erode 638 154.
3.P. Elango(J09185) S/o. Ponnusamy, 529 Kovai Pirivu, Nambiyur Main Road, Alukuli Post, Gobi Tk, Erode 638 453 4.R Subbulakshmi(J09230) W/o. N Rajendran, 94 Vedar Colony, New Vadavalli Post, Sathyamangalam Tk Erdoe 638 401.
... Petitioner(s) Vs.
1. The Managing Director Tamilnadu State Transport Corporation, Coimbatoer Ltd, 37 Mettupalayam Road, Coimbatore 641 043.
2.The General Manager Tamilnadu State Transport Corporation,
(Coimbatore) Ltd, Chennaimalai Road, Erode 1 3.The Administrator Tamilnadu State Transport Corporation EPF Trust, Pallavan House, Tiruvallur Salai, Chennai 600 002.
... Respondent(s) Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a writ of Mandamus, to direct the respondents to pay interest for the belated payment of provident fund, death cum retirement gratuity, encashment of earned leave, surrender leave, and commuted value of pension at the rate of 12% per annum within the time frame fixed by this Hon'ble Court and pass.
For Petitioners : Mr.N.K.Ponraj For Respondent : Mr.M.Murali Vinodh Standing Counsel (For R1 to R3) COMMON ORDER Mr.M.Murali Vinodh, learned Standing Counsel takes notice on behalf of the respondent. By consent of both parties, the present writ petition is taken up for final disposal at the stage of admission itself.
2. The petitioners have filed this writ petition to issue a Writ of Mandamus, directing the respondents herein to pay interest for the belated payments made to them in respect of Death Cum Retirement Gratuity (DCRG), Commuted Amount, Provident Fund Amount and Earned Leave Amount.
3. The first three petitioners were retired from service on 31.05.2023, 30.04.2023, 31.05.2019 as Conductor, Special Grade Conductor, Special Grade Driver respectively and the husband of the 4th petitioner was retired from service on 30.06.2023 as ITI Helper. However, the respondents paid the retirement benefits belatedly only on 10.03.2025, 12.02.2025, 10.02.2021 and 16.04.2025, after a lapse of 20 months from their respective dates of retirement.
4. The case of the petitioners is that though they retired from service on 31.05.2023, 30.04.2023, 31.05.2019 and 30.06.2023 respectively, the respondents failed to settle the retirement benefits on the due dates, citing paucity of funds. The petitioners would further state that they are entitled to receive retirement benefits on the date of retirement itself and that due to the delay, their families were put to serious hardship and prejudice. Even after repeated representations, requesting interest on the belated settlement, the respondents have not taken any steps to pay the same. Hence, the present writ
petition has been filed.
5. When the matter is taken up for hearing, the learned counsel for the petitioners brought to the notice of this Court the order passed by the Coordinate Bench of this Court in a similar matter in W.P.No.25610 of 2024 dated 03.09.2024, wherein this Court had directed the respondent to pay interest at the rate of 6% p.a. for the belated payment of terminal benefits to the petitioner therein within a period of six (6) weeks from the date of receipt of a copy of this order.
6. Learned counsel appearing for the respondents did not dispute the above submission made by the learned counsel for the petitioners.
7. This Court perused the order passed in W.P.No.25610 of 2024, wherein, this Court has held as under :- "5. Taking into consideration the facts and circumstances of the case and the grievance expressed by the petitioner, there shall be a direction to the respondent to pay interest at the rate of 6% p.a. for the belated payment of terminal benefits to the petitioner within a period of six (6) weeks from the date of receipt of a copy of this order. It is made clear that if the amount is not paid within the time frame fixed by this Court, it will fetch interest at the rate
of 12% p.a. from the date on which the amount became due and payable till the date of actual realisation."
8. The aforesaid decision is squarely applicable to the facts of the present case. Accordingly, applying the ratio laid down in the above case, this Writ petition stands disposed of with a direction to the respondents to pay interest at the rate of 6% p.a. for the belated payment of terminal benefits such as, Provident Fund, Gratuity, Pension commutation and Earned Leave amount to the petitioners within a period of eight (8) weeks from the date of receipt of a copy of this order. It is made clear that, if the amount is not paid within the time frame fixed by this Court, it will fetch interest at the rate of 9% p.a. from the date on which the amount became due and payable till the date of actual realisation. There shall be no order as to costs. kak 02.09.2025 (3/6) Index :
Yes/No Speaking Order :
Yes/No :
Yes/No To
1. The Managing Director Tamilnadu State Transport
Corporation, Coimbatoer Ltd, 37 Mettupalayam Road, Coimbatore 641 043.
2.The General Manager Tamilnadu State Transport Corporation, (Coimbatore) Ltd, Chennaimalai Road, Erode 1 3.The Administrator Tamilnadu State Transport Corporation EPF Trust, Pallavan House, Tiruvallur Salai, Chennai 600 002.
A.D.JAGADISH CHANDIRA, J.
kak (3/6) 02.09.2025