N.Ramu v. The General Manager

ORDER This Writ Petition has been filed for the following reliefs:- "directing the respondents to pay difference in Gratuity and Leave salary based increased D.A.as per G.O.(Ms)No.95 dated 28.4.2025 and belated payment of Gratuity P.F.and Leave salary 10 percentage interest to the petitioner."

¶2It is the case of the petitioner that he joined the services of the respondent Corporation on 26.10.1999 and retired from service on 31.08.2025. However, his terminal benefits, were settled belatedly without payment of any interest. Further, though the respondent Corporation settled the petitioner's terminal benefits belatedly, the gratuity and leave salary were calculated without taking into account the enhancement in Dearness Allowance with effect from 01.07.2025, as per G.O.Ms.No.95, Finance Department, dated 28.04.2025. Therefore, the petitioner is entitled to the differential amount of gratuity and leave salary arising out of the revision in Dearness Allowance. In this regard, the petitioner submitted a representation to the respondent. Since no orders have been passed on the said representation, the present Writ Petition has been filed.

¶3The learned Standing Counsel appearing for the respondent submitted they are willing to pay interest at 6% per annum on the delayed payment of the Page3 of 5 petitioners' eligible and admissible terminal benefits. They also agreed to pay the eligible differential amount of terminal benefits, such as gratuity and leave salary on account of the enhancement of Dearness Allowance as per G.O.Ms.No.95, Finance Department, dated 28.04.2025, along with interest at 6% per annum.

¶4The learned Standing Counsel for the 1st respondent submitted that they are willing to pay interest at 6% per annum on the delayed payment of the petitioners' eligible and admissible terminal benefits. They also agreed to pay the eligible and admissible differential amount of terminal benefits as per 12(3) Settlement, along with interest at 6% per annum.

¶5Heard the learned counsel for the petitioner and the learned Standing Counsel appearing on behalf of the respondent.

¶6In view of the above submission of the learned Standing Counsel, this Court deems it appropriate to direct the respondent to pay interest at the rate of 6% p.a. for the belated payment of the eligible terminal benefits from the date of entitlement till the date of actual disbursal of the terminal benefits to the petitioner. The respondent is also directed to pay eligible differential amount of terminal benefits such as gratuity and leave salary arising out of the Page4 of 5 enhancement of Dearness Allowance with effect from 01.07.2025, in terms of G.O.Ms.No.95, Finance Department, dated 28.04.2025 along with interest at the rate of 6% per annum from the date on which the amounts became due till the date of actual payment. The said exercise shall be completed within a period of six weeks from the date of receipt of a copy of this order.

¶7Accordingly, the Writ Petition is disposed of. No costs. 22-07-2026 Index: Yes/No Speaking/Non-speaking order SHR To The General Manager Tamilnadu State Transport corporation (villupuram )Ltd No.3/137 Salamedu Vazhudha Reddy PO Villupuram -605 403 Page5 of 5 P.T.ASHA J. SHR 22-07-2026

Page1 of 5 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22-07-2026 CORAM THE HON'BLE MS. JUSTICE P.T. ASHA N.Ramu ..Petitioner(s) Vs The General Manager Tamilnadu State Transport corporation (villupuram ) Ltd No.3/137 Salamedu Vazhudha Reddy PO Villupuram -605 403 ..Respondent(s) Prayer:- Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of Mandamus directing the respondents to pay difference in Gratuity and Leave salary based increased D.A.as per G.O. (Ms)No.95 dated 28.4.2025 and belated payment of Gratuity P.F.and Leave salary 10 percentage interest to the petitioner. For Petitioner(s): Mr.T.Karkkivelan For Respondent(s): Ms.S.Pavithra, Standing Counsel Page2 of 5