A retired transport corporation driver who was in service when the 15th tripartite wage settlement was signed sought revised pay from 01.09.2023 and consequential retirement benefits. The High Court held he was entitled to the 6% revision and ordered payment with 6% interest for the period beyond Clause 37(b).
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WP(MD)No.35262 of 2025
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 16.12.2025
CORAM:
THE HONOURABLE MR.JUSTICE B.PUGALENDHI
WP(MD)No.35262 of 2025
G.Krishnan
...Petitioner
Vs
1.The Managing Director, Tamil Nadu State Transport Corporation, Madurai Region, Corporate Office,
Madurai – 625 010.
The Tamil Nadu State Transport Corporation Pension Fund Trust, Thiruvalluvar House, Pallavan Salai,
Chennai – 600 002.
3.The State of Tamil Nadu, Rep by Secretary to Government, Finance (Pension) Department, Secretariat, Fort St.George, Chennai – 600 009. ...Respondents
Prayer : Writ Petition filed under Article 226 of the Constitution of India to issue a writ of mandamus directing the Respondents herein to revise the petitioner's wages with effect from 01.09.2023 based on the 15th tripartite wage settlement dated 29.05.2025 and to pay arrears of wages payable from 01.09.2023 to 31.03.2024 and also difference in Gratuity,
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Provident Fund, Leave Salary and arrears of pension from 01.04.2024 to 31.07.2025 along with the interest at the rate of 10% per annum from the date of wage settlement dated 29.05.2025 till the date of actual payment and subsequently direct the respondents to pay the interest at the rate of 18% per annum for the belated settlement of petitioner's retirement benefits namely EPF Employee's Contribution, Gratuity, and leave salary for the period from 31.03.2024 to 25.08.2025 based on petitioner's representation dated 14.10.2025 within the time limit that may be fixed by this Court.
For Petitioner : Mr.S.Sarvagan Prabhu For Respondent : Mr.S.C.Herold Singh, Nos.1 and 2 For Respondent : Mr.C.Venkatesh Kumar, No.3 Special Government Pleader
ORDER
The petitioner was working as a Special Grade Driver in the respondent transport corporation. He retired from service on attaining the age of superannuation on 31.03.2024. The retirement benefits due to him were settled by the respondent on 25.08.2025. However, after his retirement, the 15th tripartite wage settlement under Section 12(3) of the Industrial Disputes Act was entered into between the Management and
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Trade Unions on 29.05.2025. As per Clause 1 of the terms of settlement, the Management has agreed to revise the wages of the employees who were in service as on 01.09.2023 by revising the pay by 6% of the earlier wages.
2.The period covered under this settlement is from 01.09.2023 to 31.08.2027 and therefore, the petitioner, who was in service as on 01.09.2023 and retired from service on 31.03.2024, made a representation to the respondents seeking the benefits due to him as per the 15th wage settlement. Alleging inaction, he has filed this writ petition seeking a mandamus directing the respondents to revise his wages with effect from 01.09.2023, based on the 15th wage settlement dated 29.05.2025 and to pay the arrears of wages payable from 01.09.2023 till his date of retirement, difference in leave salary, gratuity, provident fund and arrears of pension from 31.03.2024 to 25.08.2025 with interest.
3.Learned Counsel for the petitioner submitted that the petitioner, who was in service as on 01.09.2023 is also entitled for the benefits as per the 15th wage settlement dated 29.05.2025. He is entitled for this
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6.The 15th wage settlement under Section 12(3) of the Industrial Disputes Act was entered into between the Management and the Unions on 29.05.2025. As per Clause 1 of the terms of the settlement, the Management has agreed to revise the wages of the employees, who were in service as on 01.09.2023, by revising the pay by 6% of the earlier wages.
7.The petitioner was in service as a permanent employee of the Transport Corporation as on 01.09.2023 and therefore, he is entitled for the benefits as per this 15th wage settlement. The petitioner has retired from service on 31.03.2024 and he was paid with the retirement benefits as per the earlier pay scale. Since there is a revision of scale of pay by 6% on the basic pay, the petitioner is entitled for this differential pay scale from 01.09.2023 till the date of his retirement and the consequential retirement benefits as per the revised scale of pay.
8.Clause 37(b) of this settlement dated 29.05.2025 enables the Management to pay the arrears of scale of pay from 01.09.2023 on four quarterly installments. This period is already over. For any delayed
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payment of retirement benefits, the employees are entitled for interest @
the date of actual payment. There shall be no order as to costs.
16.12.2025
DSK
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To
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B.PUGALENDHI.J.,
DSK
WP(MD)No.35262 of 2025
16.12.2025
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2 issues framed by the court
Whether a retired employee in service on 01.09.2023 is entitled to the wage revision benefits under the 15th tripartite wage settlement dated 29.05.2025, including revised retirement benefits and inte
Whether arrears and delayed retirement benefits should attract interest at 6% per annum beyond the installment period under Clause 37(b) of the settlement.
2 provisions across 2 enactments
G.Krishnan
The Managing Director, Tamil Nadu State Transport Corporation, Madurai Region
The Administrator, The Tamil Nadu State Transport Corporation Pension Fund Trust
The State of Tamil Nadu (Finance (Pension) Department)
B.Pugalandhi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
