Allowed

S.Guhan, v. The Management of

Madras HC15 Dec 2025WP(MD)/35576/2025

Case brief

AI extract

What is this about?

A transport corporation employee retired under VRS in December 2023 but was in service on 01.09.2023, when a 6% pay revision under the 15th tripartite wage settlement took effect. The writ petition sought revision and arrears. The court allowed it, directing revision with benefits from 01.09.2024 plus 6% annual interest for delay beyond Clause 37(b).

What did the court decide?

Direction to revise pay scale w.e.f. 01.09.2023, provide benefits from 01.09.2024 per 15th wage settlement, and settle arrears within six months with 6% per annum interest for delayed period.

S.Guhan, Vs The Management of — Labour and Industrial Disputes | Madras HC (2025)

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W.P(MD)No.35576 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED: 15.12.2025

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CORAM:

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THE HONOURABLE MR.JUSTICE B.PUGALENDHI

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W.P(MD)No.35576 of 2025

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S.Guhan ... Petitioner

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The Management of Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Trichy Region, Rep by its General Manager, Trichy. ...Respondent

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PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus, directing the respondent to revise/re-fix the scale of pay of the petitioner w.e.f. 01.09.23 to till his retirement, based on the wage settlement dated 29.05.25 and consequently to pay him difference/arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on such re-fixed scale of pay payable to him on the month of his retirement, together with 18 percent interest per annum, within a time frame as may be fixed by this Court.

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

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W.P(MD)No.35576 of 2025

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For Petitioner : Mr.S. Arunachalam, For Respondent : Mr.S.C.Herold Singh Standing Counsel

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O R D E R

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The petitioner was appointed as a Junior Tradesman in the respondent transport Corporation on 18.05.1990. He retired from service on 31.12.2023 under VRS. The retirement benefits have been settled to him after several months of his retirement. Thereafter, the 15^th tripartite wage settlement under Section 12(3) of the Industrial Disputes Act was entered into between the Management and 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, with effect from 01.09.2023 notionally and monetary benefits with effect from 01.09.2024.

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2.Admittedly, the petitioner was in service as on

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

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W.P(MD)No.35576 of 2025

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01.09.2023. Therefore, the petitioner 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 the petitioner's wages based on the 15th wage settlement dated 29.05.2025 and to pay the benefits with interest.

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3.Mr.S.C.Herold Singh, learned Standing Counsel takes

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notice for the respondent and submitted that as per Clause 37(b) of the settlement u/s.12(3) of the Act dated 29.05.2025, the Management is expected to revise the scale of pay from 01.09.2023 and to calculate the arrears of amount with effect from 01.09.2024

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and pay the amount on four quarterly installments. According to him, they would calculate the difference of pay, if any, due to the petitioner and it would be paid within a reasonable time.

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4.This Court paid it's anxious consideration to the rival

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

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W.P(MD)No.35576 of 2025

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submissions made on either side and perused the materials placed on record.

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5.The 15th wage settlement under Section 12(3) of the

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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. Therefore, the monetary benefits would be paid with effect from 01.09.2024 and the arrears if any, would be settled in four quarterly installments.

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6.Clause 37(b) of the settlement dated 29.05.2025 reads

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as under:-

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epYitj; bjhif 01.09.2024 Kjy; fzf;fplg;gl;L 4

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jtizfshf fhyhz;LnjhWk; tHq;fg;gLk;. ”

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7.The petitioner was in service as a permanent employee

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

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W.P(MD)No.35576 of 2025

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of the Transport Corporation as on 01.09.2023 and therefore, he is entitled for the benefits as per this 15th wage settlement. He was paid with the retirement benefits as per the earlier wage settlement. The 15^th wage settlement provides revision of scale of pay by 6% on the basic pay, for those who were in service as on 01.09.2023, however monetary benefits with effect from 01.09.2024. Therefore, the petitioner is entitled for the benefits, pursuant to the revision of scale of pay from 01.09.2024.

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8.Admittedly, such a revision has not been made till

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date. Any belated settlement of monetary benefits due to an employee needs to be settled with interest at the rate of 6% per annum. Therefore, this writ petition stands allowed with a direction to the respondent Transport Corporation to revise the pay scale of the petitioner with effect from 01.09.2023 and provide the benefits with effect from 01.09.2024, as per the 15th wage settlement dated 29.05.2025 and settle the benefits along with arrears to the petitioner within a period of six months from the date of receipt of a copy of

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

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W.P(MD)No.35576 of 2025

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this order, with interest @ 6% per annum. The interest shall be calculated for the period beyond Clause 37(b) of the settlement dated 29.05.2025 till the date of actual payment. There shall be no order as to costs.

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15.12.2025

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NCC: Yes/No Index:Yes/No Internet:Yes vrn To The Management of Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Trichy Region, Rep by its General Manager, Trichy.

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

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W.P(MD)No.35576 of 2025

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B.PUGALENDHI, J.

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vrn

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Order made in W.P(MD)No.35576 of 2025

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15.12.2025 (3/28)

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

S.Guhan, v. The Management of

Case brief

What is this about?

What did the court decide?

S.Guhan, v. The Management of

Case brief

What is this about?

What did the court decide?

What the court decided

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