Full Judgment
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 17-03-2026
CORAM
THE HON'BLE MS. JUSTICE P.T. ASHA A.Jayakumar Adhiyur, Adhiyur Post, Thirupathur District. ..Petitioner(s) Vs
1. The Managing Director (Salem) Limited, No.12, Ramakrishna Road, Salem - 636 007.
2. The Administrator, Employees Welfare Fund Trust, Thiruvalluvar House, Pallavan Salai, Chennai - 600 002. ..Respondent(s)
Prayer: This Writ Petition is filed under Article 226 of the Constitution of India, seeking for a Writ of Mandamus directing the respondents to disburse the interest for the belated payment of Provident Fund, Gratuity and Leave Surrender at the rate of 12 % per annum and for the other unsettled benefits viz Earned Leave Surrender amount for the year of 2009-2011 and 2012-2019, 12(3) wage settlement, ERBS Pension and 10 days salary amount with interest at the rate of 12 % per annum within the stipulated time as may be fixed by this Hon’ble Court.
Page1 of 5 For Petitioner(s): Mr.N.Baskar For Respondent(s): Mr.K.Raja, Standing Counsel for R1
ORDER
The writ petition has been filed to issue a mandamus directing the respondents to disburse the interest for the belated payment of Provident Fund, Gratuity and Leave Surrender at the rate of 12 % per annum and for the other unsettled benefits viz Earned Leave Surrender amount for the year of 2009- 2011 and 2012-2019, 12(3) wage settlement, ERBS Pension and 10 days salary amount with interest at the rate of 12 percent per annum within the stipulated time as may be fixed by this Court.
2. The case of the petitioner is that he was appointed as Conductor in
the respondent-Transport Corporation on 11.09.1984 and retired from service as Checking Inspector on attaining the age of superannuation on 31.03.2024. However, the terminal benefits have been settled to the petitioner only on 25.08.2025 and no interest has been paid for the delayed period. Further, the respondent-Transport Corporation have not settled the earned leave surrender amount for the years 2009-2011 & 2012-2019, 12(3) wage settlement, ERBS Pension and 10 days salary amount. Therefore, the petitioner had submitted a representation to the respondents dated 01.11.2025, for payment of unsettled Page2 of 5 amounts as aforesaid along with interest for the delayed period. Since the same was not considered, the present writ petition has been filed.
3. The learned Standing Counsel for the first respondent would fairly submit that they are willing to pay the interest at the rate of 6% per annum for the belated payment of the eligible and admissible amount.
4. Heard the learned counsel for both sides and perused the materials available on record.
5. In view of the above, the writ petition is disposed of with the
following directions; i. the respondents are directed to pay interest at the rate of 6% per annum for the belated payment of admissible terminal benefits from the date of retirement till the date of actual disbursal of the terminal benefits of the petitioner, within a period of six (6) weeks from the date of receipt of a copy of this order. ii. As regards the other prayer seeking for leave surrender amount for the year 2009-2011 and 2012-2019, ERBS Pension and 10 days salary amount, the respondent Corporation is directed to consider the petitioner’s eligibility to receive the same as per 12(3) wage settlement and in case the petitioner is considered eligible to receive the same, to Page3 of 5 disburse the said amount to the petitioner along with interest at 6% per annum, within a period of three (3) weeks from the date of receipt of a copy of this order. No costs. 17-03-2026 Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No TSG To 1.The Managing Director Tamil Nadu State Transport Corporation, (Salem) Limited, No.12, Ramakrishna Road, Salem - 636 007. 2.The Administrator, Employees Welfare Fund Trust, Thiruvalluvar House, Pallavan Salai, Chennai - 600 002. Page4 of 5
P.T.ASHA, J.
TSG 17-03-2026 Page5 of 5