M.Velu v. The Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 17.11.2025

CORAM

THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN M.Velu ... Petitioner Vs

1. The Managing Director, Tamil Nadu State Transport Corporation, 3/137, Salamedu, Valudharetty P.O., Villupuram - 605602.

2. The General Manager, Tamil Nadu State Transport Corporation, Vellore Region, Rangapuram, Vellore - 632009.

3. The Administrator, TNSTC Employees Pension Fund Trust, No.2, Pallavan Salai, Thiruvalluvar Illam, Chennai - 600002.

... Respondents Writ Petition is filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the respondents to pay interest at the rate of 12% per annum on the belated payment of terminal benefits, viz., provident fund, gratuity and surrender leave salary and 1/6

commutation amount, amounting to Rs.42,70,276.00 for the period from 31.05.2023 to 10.03.2025 within a time frame to be fixed by this Court. For Petitioner : Mr.K.Balakrishnan For Respondents : Mrs.S.Pavithra, Standing Counsel (for R1 & R2) Mr.C.S.K.Sathish, Standing Counsel (for R3)

O R D E R

This Writ Petition has been filed for direction directing the respondents to pay appropriate interest to the petitioner for the delayed sanction and disbursement of retirement benefits.

2. Heard the learned counsel appearing on either side and perused the materials available on record.

3. In identical issues, this Court has passed various orders, justifying the payment of interest to the aggrieved pensioners and in the order dated 13.12.2019 in W.P.(MD) No.26481 of 2019, the following order came to be passed :- 2/6

"5. I am not in agreement with the said representation made. There was already a duty cast on the respondent Corporation to pay the terminal benefits on the date of retirement itself and the very fact that the belated disbursement of retirement benefit, had already put the retired employee to serious prejudice, entertaining the present request for disbursement of the interest on the belated payment in installments, could cause further prejudice to the retired employee.

6. In the light of the above observations, there shall be a direction to the respondent / Corporation to pay the penal interest at the rate of 6% per annum on the belated payment of the retirement benefits for the period from the date of the retirement, till the date of the actual disbursement, as expeditiously as possible and in any event, not before the expiry of three months from the date of receipt of a copy of this order.

4. This Court is of the view that the respondents could be directed to pay the interest on the belated payment, at the rate of 6% per annum, as ordered in the above writ petition.

5. In the light of the above findings, there shall be a direction to the 3/6

respondents herein to pay the interest on the belated payment of the terminal benefits to the petitioner at the rate of 6% per annum, commencing from the date of the retirement, till the date of actual disbursement, within a period of eight weeks from the date of receipt of a copy of this order.

6. With the above directions, this Writ Petition is disposed of. No costs.

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To

1. The Managing Director, Tamil Nadu State Transport Corporation, 3/137, Salamedu, Valudharetty P.O., Villupuram - 605602.

2. The General Manager, Tamil Nadu State Transport Corporation, Vellore Region, Rangapuram, Vellore - 632009.

3. The Administrator, TNSTC Employees Pension Fund Trust, No.2, Pallavan Salai, Thiruvalluvar Illam, Chennai - 600002.

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G.K.ILANTHIRAIYAN, J.

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