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The Management v. the Presiding Officer

Madras HC22 Sept 2025WP(MD)/17038/2021

Case brief

AI extract

What is this about?

Section 33-C(2) computation petition; earned leave salary; retirement benefits; abeyance of Labour Court order; dismissal from service; statutory appeal; Tamil Nadu Shops and Establishment Act; Tamil Nadu Co-operative Societies Act Section 87 surcharge; Payment of Gratuity Act Controlling Authority; cooperative wholesale stores; Labour Court Tiruchirappalli; writ of certiorari; Article 226; conditional liability to pay; WP.(MD)Nos.5422 & 5423 of 2019.

What did the court decide?

Writ petitions disposed of with no costs and connected miscellaneous petitions closed; the impugned Labour Court computation orders are kept in abeyance until the outcome of the statutory appeals before the authority under the Shops and Establishment Act, with conditional liability on the Management to pay the amounts ordered by the Labour Court if the workmen succeed.

The Management Vs the Presiding Officer — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the Labour Court computation orders directing payment of earned leave salary to the dismissed employees should be quashed, or instead kept in abeyance pending the statutory appeals against their dismissal before the authority under the Shops and Establishment Act.

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Court's answer

Since the respondents have been dismissed from service and statutory appeals are pending against those dismissal orders, and considering the earlier order of this Court in WP.(MD)Nos.5422 & 5423 of 2019 dated 16.06.2025, the impugned Labour Court orders shall be kept in abeyance until the outcome of the appeals pending before the authority under the Shops and Establishment Act.

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Ratio / Principle

If the workmen succeed before the authority under the Shops and Establishment Act, the Management shall be liable to pay the amount as ordered by the Labour Court, Trichirappalli.

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Detailed headnote1 paragraphs

Madras High Court (Madurai Bench) disposed of the Management's writ petitions challenging the Labour Court, Tiruchirappalli orders in Computation Petition Nos.27 & 28 of 2017 (under Section 33-C(2)), which had partially allowed erstwhile employees' retirement benefit claims by awarding Rs.82,389/- and Rs.85,023/- towards earned leave salary with 6% default interest. Holding that the employees had been dismissed from service and statutory appeals against the dismissal orders were pending before the authority under the Shops and Establishment Act, and following the Court's earlier order dated 16.06.2025 in WP.(MD)Nos.5422 & 5423 of 2019 (which had similarly kept gratuity orders in abeyance), the Court directed that the impugned orders be kept in abeyance until the outcome of those appeals; if the workmen succeed, the Management shall be liable to pay the amounts as ordered by the Labour Court. No costs; connected miscellaneous petitions closed.

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WP.(MD)Nos.17038 & 17039 of 2021

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 22.09.2025

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CORAM :

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THE HON`BLE MR.JUSTICE B.PUGALENDHI

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WP.(MD)Nos.17038 & 17039 of 2021 and WMP.(MD)Nos.13969 & 13973 of 2021

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The Management, Tiruchirappalli District Amaravathy Consumers, Cooperative Wholesale Stores Ltd., Tiruchirappalli.

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... Petitioner in both WPs. Vs. 1.The Presiding Officer, Labour Court, Tiruchirappalli. ... 1^st Respondent in both WPs. 2.S.Alleam Basha ... 2^nd Respondent in WP.(MD)No.17038 of 2021 3.P.Lalitha ... 2^nd Respondent in WP.(MD)No.17039 of 2021

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Common Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of Writ of Certiorari, to call for the records relating to the impugned order made in Computation Petition Nos.27 & 28 of 2017 passed by the first respondent dated 19.07.2021 & 08.07.2021 and quash the same.

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For Petitioner : Mr.P.R.Prithviraj

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https://www.mhc.tn.gov.in/judis

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WP.(MD)Nos.17038 & 17039 of 2021

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For R2 : Mr.V.O.S.Kalaiselvam

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COMMON ORDER

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The Management, Tiruchirappalli District Amaravathy Consumers, Cooperative Wholesale Stores Ltd., Tiruchirappalli has filed these writ petitions as against the orders passed by the Labour Court, Trichy in the Computation Petition Nos.27 & 28 of 2017 dated 19.07.2021 & 08.07.2021.

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2.The respondents/erstwhile employees of the petitioner Management have filed the above petitions before the Labour Court under Section 33-C(2) of the Industrial Act claiming retirement benefits of Rs.1,51,662/- and Rs.1,62,378/- together with interest. The said petitions were partially allowed by the Labour Court directing the petitioner/Management to pay a sum of Rs.82,389/- and a sum of Rs.85,023/- towards earned leave salary within a period of 60 days from the date of order and in default, the employees will be entitled to subsequent interest at the rate of 6% per annum. Aggrieved by these order dated 19.07.2021 & 08.07.2021, the Management has preferred these writ petitions.

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https://www.mhc.tn.gov.in/judis

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WP.(MD)Nos.17038 & 17039 of 2021

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3.The learned counsel appearing for the petitioner / Management submits that the respondents were dismissed from service on 13.07.2022 and 11.07.2022 respectively. As against the respondents, surcharge proceedings were initiated, pursuant to the surcharge order passed under Section 87 of the Tamil Nadu Co-operative Societies Act, dated 26.02.2022. He further submits that the respondents have also filed similar such request before the Controlling Authority under the Payment of Gratuity Act, Trichy and the same was ordered in their favour. The order passed by the Controlling Authority was challenged before the Joint Commissioner of Labour/Appellate Authority and the same was also allowed in favour of the employees. As against these orders, the petitioner/Management has filed separate writ petitions in WP. (MD)Nos.5422 & 5423 of 2019 and the same were disposed of by recording that they were dismissed from service and they have already filed statutory appeal before the authority under the Shops and Establishment Act, 1987 by reserving their rights to workout the remedy. Pursuant to the orders of the authority under the Shops and Establishment Act, the said petitions were disposed of with a direction to keep the orders under abeyance until the outcome of the appeals pending before the authority under the Shops and Establishment Act.

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https://www.mhc.tn.gov.in/judis

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WP.(MD)Nos.17038 & 17039 of 2021

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4.The learned counsel appearing for the petitioner has also

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produced a copy of the order of this Court in WP.(MD)Nos.5422 & 5423 of 2019 dated 16.06.2025 and relevant paragraph is extracted hereunder:-

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6.Challenging the dismissed orders, statutory

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appeals are pending before the authority under the Tamil Nadu Shops and Establishment Act 1986. Therefore, payment of gratuity by the Management would not arise at this stage. In case, if both the appeals are allowed, the respective workmen would be entitled to seek gratuity. Hence, the orders impugned in the writ petitions shall be kept in abeyance until the outcome of the appeals pending before the authority under the Shops and Establishment Act. If the workmen succeed before the authority under the Shops and Establishment Act, the Management shall be liable to pay the gratuity as per the statutory liability.

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5.Considering the fact that the respondents herein have been dismissed from service and statutory appeals are also pending as against those dismissal order and also considering the earlier order passed by this Court in WP.(MD)Nos.5422 & 5423 of 2019, dated 16.06.2025, the impugned orders in this writ petitions shall be kept in abeyance until the outcome of the appeals pending 4/6

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https://www.mhc.tn.gov.in/judis

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WP.(MD)Nos.17038 & 17039 of 2021

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before the authority under the Shops and Establishment Act. If the workmen succeed before the authority under the Shops and Establishment Act, the Management shall be liable to pay the amount as ordered by the Labour Court, Trichirappalli. Accordingly, these writ petitions are disposed of. No costs. Consequently, connected miscellaneous petition are closed.

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22.09.2025

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NCC : Yes/No Index : Yes/No Internet:Yes gns

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The Presiding Officer, Labour Court, Tiruchirappalli.

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https://www.mhc.tn.gov.in/judis

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