Interest to be paid on retirement benefits if settled belatedly – HC orders

The Madurai Bench of the Madras High Court has directed the Tamil Nadu government to pay an official 10 per cent interest on retirement benefits which were settled belatedly. The court also ordered dropping of charges against him and allowed him to retire from service.

The petitioner, S Kumarasamy, said he had been working as an assistant commissioner of Tirunelveli corporation when he was issued a memo under Section 17 (b) on May 15, 2007. But, he was allowed to retire. Then the charges against him were dropped by a government order on October 13, 2009. His terminal benefits were settled without any interest from May 2007 on April 1, 2010. He prayed that he be paid interest for the belated settlement of his benefits. Justice D Hariparanthaman before whom the petition came up for hearing said that since the disciplinary proceedings were dropped on October 2009, he was entitled to interest on his terminal benefits and that the same should be paid within four weeks.