WA/2991/2026 of The Government of Tamil Nadu Vs I. Ganesan on 29 September 2026

J U D G M E N T

(Judgment of the Court was delivered by S.M.Subramaniam,J.) State preferred the present Intra Court Appeal, challenging the order dated 20.06.2023 passed in W.P.No.28065 of 2012.

2. First Respondent filed writ of mandamus, seeking direction to the 1st appellant herein to confer interest @ 18% per annum for the delayed payment of DCRG, commuted value of pension, PF, GPF and on other retirement benefits from 01.09.2007 to 04.06.2012 as per Pension Rule 45-A (1-A) (i) (a). Writ Court in exercise of its discretion, granted interest @ 12% per annum. Thus, State preferred the present Writ Appeal.

3. Admissible interest rates are contemplated under Rule 45(A) of the Tamil Nadu Pension Rules, 1978, which reads as under: “45A. [ Interest on delayed payment of Gratuity.

(1) Interest at the rate of eight per cent per annum shall be payable on the death-cum-retirement gratuity paid beyond (a) period of two months from the date of retirement of a Government servant Provided that on and from the 12th June 1987, the rate of such interest shall be as follows:- (a)seven per cent per annum beyond a period of three months and up to one years; and (b)ten per cent per annum beyond a period of one year;

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Provided further that on and from 20th February 1995, the rate of such interest shall be twelve percent per annum (compounded annually). Provided also that on and from 1st April 2004, the rate of such interest shall be at the rate of interest payable, on General Provident Fund during the year of retirement of the Government servant (compounded annually).] Provided further that no such interest shall be payable:- (a)where the institution of departmental or judicial proceeding against the retiring Government servant concerned is pending; and (b)for the fraction of a month. (1 -A) The period beyond which such interest is payable, shall be as follows:-

(i) in the case of a Government servant retired otherwise on superannuation and where the death-cum-retirement gratuity is withheld on account of disciplinary proceeding pending against him:- (a)three months from the date of retirement where the Government servant is exonerated of all charges and where the death- cum-retirement gratuity is paid on the conclusion of disciplinary proceedings.

(b) three months from the date of death where the disciplinary proceedings are dropped on account of death of a Government servant.

(c) three months from the date of issue of orders by the competent authority allowing payment of death-cum-retirement gratuity where the Government servant is not

(ii) six months from the date of retirement of a Government servant otherwise than on superannuation under Fundamental Rule 56(2) or 56(3) or rules 33, 36, 38, 39 and 42 of the Tamil Nadu Pension Rides, 1978.

(iii) six months from the date of death of a Government servant while in service and where the delay is not caused on account of more than one claimant

(iv) three months from the date of issue of orders revising the emoluments where the amount of death-cum-retirement gratuity already paid is enhanced on account of revision of emoluments and

(v) six months from the date of absorption in the case of permanent absorption in the Public Sector Undertakings or Autonomous Bodies otherwise that on en mass transfer on conversion of

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Government department or a part thereof into Public Sector Undertakings or Autonomous Bodies.”

4. When the Rule contemplates interest for the belated settlement of benefits, it is unnecessary for High Court to exercise its discretion for grant of higher or lesser rate of interest. Pension Scheme is to be implemented within its contour and any deviation or violation would result in inconsistency amongst pensioners or Government employees, who are all claiming interest for the belated settlement of terminal benefits. Uniformity and consistency in the matter of grant of interest for the belated settlement are just and necessary.

5. Pension Scheme is to be implemented as per its terms and conditions. Courts are not expected to grant interest over and above the interest as contemplated under Rules. In the present case, Rule 45(A) would clearly stipulate admissible rate of interest and the said interest is to be paid to the 1st respondent by calculating the delayed period.

6. In view of the above Rule position, the present Writ Appeal is partly allowed. The impugned order dated 20.06.2023 passed in W.P.No.28065 of 2012 is modified to the extent that Appellants are directed to settle interest as per the rate contemplated under Rule 45(A)

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of the Tamil Nadu Pension Rules, 1978 to the 1st respondent within a period of twelve weeks from the date of receipt of a copy of this judgment. No costs. Consequently, connected Miscellaneous Petition is closed. (S.M.S.,J.) (K.G.R.,J.) 29-09-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No AR To: The Accountant General Tamil Nadu Circle, Anna Salai, Teynampet, Chennai - 18.

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S.M.SUBRAMANIAM,J. AND KRISHNASWAMY GOVINDARAJAN,J. AR W.A.No.2991 of 2026 29-09-2026