S Pannerselvam J10037 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. S.PANNERSELVAM (J10037) S/o 605/3 Cheran Nagar, Panapalayam, Palladam Tk, Tirupur District 641 664.
2.S Annamalai (J02256) S/o. S Ubramaniaya Chettiyar, 8/168c Dhali Road, Sathya Nagar, Udumalai Taluk, Tirupur 642 112.
3.A Krishnan (J01826) S/o. Anumanthan, 34 Lakshmipuram, Chithode, Erode 638 102.
4.C Athilakshmi (J02081) W/o. R Chandra Sekaran, 29/1 Thirunagar Colony, Rangasamudram Post, Sathyamangalam Taluki, Erode 638 042.
5.V Vijayalakshmi (J05654) W/o. Or Velusamy, Kaavilipalayam Post, Sathya Mangalam Taluk, Erode 638 402.
... Petitioner(s)
Vs.
1. The Managing Director Tamilnadu State Transport Corporation, Coimbatore 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 Respondents : 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 31.08.2019, 31.03.2023, 30.09.2012 as Assistant Manager, Senior Tradesman, Tradesman respectively. The husband of the 4th and 5th petitioners were retired from service on 31.05.2018 and 30.04.2018 as Senior Tradesman and Special Grade Conductor respectively. However, the respondents paid the retirement benefits belatedly only on January 2025, 30.10.2024, 11.07.2017, 19.09.2019 and 20.09.2015, after a lapse of 16 months, 21 months, 51 months, 15 months, 16 months respectively from their respective dates of retirement.
4. The case of the petitioners is that though they retired from service on the above mentioned respective dates, 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 (5/6) Index :
Yes/No Speaking Order :
Yes/No :
Yes/No To
1. The Managing Director Tamilnadu State Transport Corporation, Coimbatore 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 (5/6) 02.09.2025