Tamilnadu Transport Corp Must Pay 6% Interest

Authority: Madurai Bench of Madras High Court

Order Date: 06 July 2026

Case Overview

• Petitioner: O. Subramani filed W.P.(MD) No.18830 of 2026 under Article 226 seeking a writ of mandamus directing the Managing Director and General Manager of Tamilnadu State Transport Corporation (MDU) Ltd. to pay interest on belated retirement benefits (gratuity, provident fund, leave salary, commutation).
• Respondents: Managing Director and General Manager of Tamilnadu State Transport Corporation (MDU) Ltd., represented by standing counsel Mr. D. Jebaraj.
• The petition argued that interest should be payable at 6% per annum from the date of retirement until actual payment.
• Both parties consented to disposal at the admission stage and agreed that the issue is covered by earlier judgments of this Court (W.A.(MD) No.403 of 2010 dated 06.07.2014 and W.A.(MD) No.1419 of 2021 dated 26.07.2021).

Final Outcome

• The Court allowed the writ petition.
• Respondents are directed to pay interest at 6% per annum on the delayed retirement benefits from the date of retirement to the date of actual payment.
• Compliance must be effected within five months of receipt of the order.
• No costs are awarded to either party.

Topics: Interest on Retirement Benefits, Court Mandamus, Tamilnadu State Transport Corporation