The Management Vs N.Kalirajan — Writ and Judicial Review | Madras HC (2026)

The Management Vs N.Kalirajan — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ miscellaneous petition ordered: the interim Section 17B payment direction is clarified such that the last drawn salary is Rs.64,724/- (the amount payable to the workman from the month of August 2026 being Rs.64,724/-), shift allowance and leave encashment being excluded; determination of the excess already paid and its recovery under law left to separate remedies of the Management.

Issue for consideration

Whether the last drawn wages payable under Section 17B of the Industrial Disputes Act, 1947 during pendency of WP No.1441 of 2023 should be Rs.64,724/- (excluding shift allowance and leave encashment) rather than the Rs.1,04,396/- earlier fixed, and how any excess already paid is to be dealt with.

Court's answer

It is made clear that the last drawn salary for the month of July was Rs.64,724/-.

Ratio / Principle

Last drawn wages under Section 17B of the Industrial Disputes Act can only be granted for the amount of wages drawn in the last month.

Key takeaways

Shift allowance and leave encashment included in the computed figure of Rs.1,04,396/- cannot form part of the last drawn wage under Section 17B.ratio¶30
The amount paid in excess cannot be determined in this petition; option is left open to the Management to seek remedy under law for recovery of the said amount.ratio¶32

Detailed headnote1 paragraphs

MADRAS HIGH COURT (K. Surender, J.) — WMP No.16105 of 2024 in WP No.1441 of 2023, decided 20-07-2026 — Industrial Disputes Act, 1947, Section 17B — interim payment of last drawn wages — Management's (WIPRO Limited) writ miscellaneous petition under Article 226 seeking modification of the interim order dated 13.03.2024 in WMP No.11687 of 2023, which had fixed last drawn wages at Rs.1,04,396/- based on the workman's Section 17B application. Perusing the salary slip for July (dated 03.07.2017), the Court found the higher figure included shift allowance of Rs.9,600/- and leave encashment of Rs.25,444/-, while the total salary reflected was Rs.64,724/-. Held: last drawn wages under Section 17B can only be granted for the amount of wages drawn in the last month, and such allowances cannot form part of the last drawn wage; the last drawn salary for July was therefore Rs.64,724/-. Clarified that the amount payable to the workman from the month of August 2026 is Rs.64,724/-. The excess already paid could not be determined in the petition; the Management was left free to seek remedy under law for recovery thereof. Writ miscellaneous petition ordered (allowed).

WMP No. 1529 of 2023

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 20-07-2026

CORAM

THE HON'BLE MR.JUSTICE K.SURENDER

WMP No.16105 of 2024 in

WP No.1441 of 2023

The Management WIPRO Limited Head office No.105, Anna Salai, Guindy Chennai 600 032 Branch office: CDC5, 602, 603, 2-COT, SC-2 Medavakkam, Sholinganallur, Chennai 600 119.

..Petitioner

Vs

N.Kalirajan

..Respondent

This writ miscellaneous petition is filed under Article 226 of the Constitution of India, seeking to modify the order dated 13.03.2024 and provide for a sum of Rs.64,724/- as last drawn salary to be paid to the former employee on and from 12^th January 2023 being the date of filing the Writ Petition as arrears and for future time pending disposal of the writ petition as required under Section 17(B) of the Industrial Disputes Act, and effect suitable recoveries / adjustments.

For Petitioner: Ms.N.Swathy for Mr.S.Ramasubramaniam and Associates For Respondent: Mr.R.Rajaram

ORDER

This writ miscellaneous petition is filed seeking to modify the order of

this Court, dated 13.03.2024, passed in WMP No.11687 of 2023, directing the Management to pay the backwages.

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WMP No. 1529 of 2023

The workman in the writ petition filed an application under Section 17

B of the Industrial Disputes Act, 1947 seeking backwages wherein it was shown

that an amount of Rs.1,04,396/- was the last drawn wages, based on which this Court by an order dated 13.03.2024 directed payment of the last drawn wages from the date of filing of the writ petition. Accordingly the amounts were paid.

The grievance of the petitioner in the present Writ Miscellaneous petition is that the petitioner’s last drawn salary was Rs.64,724/- and not Rs.1,04,396/-.

The learned counsel for the respondent / workman would submit that this Court having gone through the salary slip, has ordered payment of Rs.1,04,396/-.

On perusal of the salary slip for the month of July dated 03.07.2017, the amount mentioned as Rs.1,04,396/- has included shift allowance and leave encashment of Rs.9,600/- and Rs.25,444/-. However, the total salary that is reflected is Rs.64,724/-. The last drawn wages under Section 17 B of the Act, can only be granted for the amount of wages drawn in the last month. Therefore, it is made clear the last drawn salary for the month of July was Rs.64,724/-. The amount that is reflected as Rs.1,04,396/- was a calculation

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WMP No. 1529 of 2023

which included the shift allowance and leave encashment and such allowances cannot form part of last drawn wage.

In view of the above, it is clarified that the amount payable to the workman from the month of August 2026 is Rs.64,724/. However, the amount

paid in excess cannot be determined in this petition. Option is left open to the Management to seek remedy under law for recovery of the said amount.

With the above observation, this writ miscellaneous petition is ordered.

(K.SURENDER,J.) 20-07-2026

Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No vum

To N.KalirajanNo. 72/1 Veerasamy street, Mdipakkam chennai 600 091

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WMP No. 1529 of 2023

K.SURENDER J.

vum

WMP No.16105 of 2024 in WP No.1441 of 2023

20-07-2026 (1/2)

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WMP No. 1529 of 2023

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