TN State Transport Corp Ordered 6% Interest

Authority: Madras High Court, Madurai Bench

Order Date: 06 July 2026

Case Overview

• Petitioner: P. Senguttuvan filed writ petition W.P.(MD) No.18835 of 2026 under Article 226 seeking mandamus directing the respondents to pay interest at 6% per annum for belated payment of retirement benefits (gratuity, provident fund, leave salary, commutation).
• Respondents: Managing Director and General Manager of Tamil Nadu State Transport Corpn., (KMB) Ltd.
• Counsel: Petitioner's counsel Mr. K. Gokul; Respondents' standing counsel Mr. S.C. Herbert Singh.
• The issue was noted to be covered by earlier judgments of the Division Bench (W.A.(MD) No.403 of 2010, batch dated 06.07.2014; W.A.(MD) No.1419 of 2021, batch dated 26.07.2021).

Final Outcome

• The Court, with consent of both parties, disposed the petition at the admission stage and allowed it.
• Respondents are directed to pay interest at 6% per annum on the delayed retirement benefits from the date of the petitioner's retirement until actual payment.
• Compliance must be completed within five months of receipt of the order.
• No costs awarded to either side.

Topics: Legal Order, Retirement Benefits, Interest Liability