Disposed¶48

L.Murugesan v. The Management of

Madras HC5 Feb 2026WP/3856/2026

Case brief

AI extract

What is this about?

Retired TNSTC (Kovai) employees; terminal benefits; gratuity; encashment of leave; pay revision w.e.f. 01.09.2016; settlement dated 04.01.2018; Section 12(3) Industrial Disputes Act 1947; writ of mandamus; Article 226; permanent employees as on 01.09.2016; rejection unsustainable; interest; twelve weeks compliance; no costs.

What did the court decide?

Direction to the respondent to implement the revised pay as per the settlement under Section 12(3) of the Industrial Disputes Act, 1947 to the petitioners with interest (rate not specified by the Court), completing the exercise within twelve weeks from the date of receipt of a copy of the order; no costs. ¶48

L.Murugesan Vs The Management of — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioners, who retired before the settlement dated 04.01.2018 but were working in the Transport Corporation as permanent employees as on 01.09.2016, are entitled to revision of pay scale, including Gratuity and encashment of leave, under the settlement under Section 12(3) of the Industrial Disputes Act, 1947. +1 more

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Court's answer

Under the settlement dated 04.01.2018, persons who were working in the Transport Corporation as on 01.09.2016 as permanent employees are entitled to revision of pay scale, and the revision of pay scale includes Gratuity and encashment of leave.

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Ratio / Principle

The rejection of the petitioners' request on the ground that they were not in service as on the date of settlement is not sustainable, since the settlement makes clear that persons working in the Transport Corporation as on 01.09.2016 as permanent employees are entitled to revision of pay scale.

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Key takeaways

All the writ petitions are disposed of with a direction to implement the revised pay as per the settlement under Section 12(3) of the Industrial Disputes Act, 1947 to the petitioners with interest, the exercise to be completed within twelve weeks from receipt of a copy of the order; no costs.ratio¶48

Detailed headnote1 paragraphs

Madras High Court (M. Dhandapani J.), common order dated 05-02-2026 disposing of WP Nos. 3856, 3860, 3863, 3866 and 3867 of 2026 filed by retired Drivers/Conductors of Tamil Nadu State Transport Corporation (Kovai) Ltd seeking arrears of Gratuity and Encashment of Leave on revised pay scales effective 01.09.2016 under the settlement dated 04.01.2018 under Section 12(3) of the Industrial Disputes Act, 1947. Held: the settlement entitles persons who were working in the Corporation as permanent employees as on 01.09.2016 to revision of pay scale, which includes Gratuity and encashment of leave; rejection of their claims solely on the ground that they were not in service on the date of settlement is unsustainable. Writ petitions disposed of with a direction to implement the revised pay with interest within twelve weeks; no costs.

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WP No. 3856 of 2026

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 05-02-2026

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CORAM

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THE HONOURABLE MR JUSTICE M.DHANDAPANI WP No. 3856, 3860, 3863, 3866 and 3867 of 2026

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WP.No.3856 of 2026

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L.Murugesan Petitioner(s) Vs The Management of Tamil nadu State Transport Corporation (Kovai) Ltd, Rep. by its Managing Director, Coimbatore Respondent(s) WP No. 3860 of 2026 S. Nagarajan Petitioner(s) Vs The Management of Tamil nadu State Transport Corporation (Kovai) Ltd,Rep. by its Managing Director, Coimbatore Respondent(s) WP No. 3863 of 2026 K. Bharathi Petitioner(s) Vs The Management of Tamil nadu State Transport Corporation (Kovai) Ltd,Rep. by its Managing Director, Coimbatore Respondent(s)

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

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WP No. 3856 of 2026

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WP No. 3866 of 2026 K. Raju

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Petitioner(s)

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The Management of Tamil nadu State Transport Corporation (Kovai) Ltd,Rep. by its Managing Director, Coimbatore

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Respondent(s)

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WP No. 3867 of 2026 1. C.Palpandian S/o Chinnasamy 2/1B Moovar Nagar, 49, Kavundampalayam,, Coimbatore

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Petitioner(s)

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The Management of Tamil nadu State Transport Corporation (Kovai) Ltd,Rep. by its Managing Director, Coimbatore

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Respondent(s)

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PRAYER in WP No. 3856 of 2026; This writ petition is filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, Directing the respondent to pay the petitioner the difference /arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on the scale of pay payable to him form 1.09.23, as admitted by the Respondent in the RTI information dated 16.12.2025, together with 18 percent interest per annum, within a time frame as may be fixed by this honble Court.

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PRAYER in WP No. 3860 of 2026; This writ petition is filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, Directing the respondent to pay the petitioner the difference /arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on the scale of pay payable to him form 1.09.23, as admitted by the Respondent in the RTI information dated 29.09.2025 , together with 18 percent interest per annum, within a time frame as may be fixed by this honble Court.

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

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WP No. 3856 of 2026

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PRAYER in WP No. 3863 of 2026; This writ petition is filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, Directing the respondent to pay the petitioner the difference /arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on the scale of pay payable to him form 1.09.23, as admitted by the Respondent in the RTI information dated 02.01.26, together with 18 percent interest per annum, within a time frame as may be fixed by this honble Court.

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PRAYER in WP No. 3866 of 2026; This writ petition is filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, Directing the respondent to pay the petitioner the difference /arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on the scale of pay payable to him form 1.09.23, as admitted by the Respondent in the RTI information dated 24.11.25, together with 18 percent interest per annum, within a time frame as may be fixed by this honble Court.

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PRAYER in WP No. 3867 of 2026; This writ petition is filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, directing the respondent to pay the petitioner the difference /arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on the scale of pay payable to him form 1.09.23, as admitted by the Respondent in the RTI information dated 29.09.2025 , together with 18 percent interest per annum, within a time frame as may be fixed by this honble Court.

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For Petitioner(s): Ms.H.Nandhini, for M/s.S.Arunachalam in all the writ petitions For Respondent: Mr.C.Gauthamaraj in all the writ petitions

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COMMON ORDER

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The present writ petition has been filed seeking a direction to the respondents to pay the petitioner the difference /arrears of terminal benefits namely Gratuity and Encashment of Leave, after revising the same based on the scale of pay payable to him form 1.09.23, as admitted by the Respondent in the

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

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WP No. 3856 of 2026

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RTI information dated 29.09.2025 , together with 18 percent interest per annum, within a time frame as may be fixed by this honble Court.

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The petitioners in all these writ petitions were appointed either as a Driver or Conductor in the respondent Corporation and after completion of more than 30 years of service, they were upgraded to different posts in higher cadre. All the petitioners retired from service before the settlement under Section 12(3) of the Industrial Disputes Act, 1947, dated 04.01.2018, giving retrospective effect from 01.09.2016. Therefore, the petitioners are entitled to the pay revision with effect from 01.09.2016. However, the benefit of the settlement, dated 04.01.2018, is not extended to the petitioner.

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Hence, the petitioners made a representation to the respondent and the same was not considered and hence, they filed writ petitions, wherein this Court directed the respondent to consider the petitioners- representation and pass orders on merits and in accordance with law after giving opportunity to the petitioners. Pursuant to which, the respondent passed an order rejecting the request of the petitioners. Challenging the same, the petitioners have filed these writ petitions.

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Heard the learned counsel appearing for the petitioners and the learned standing counsel appearing for the respondent corporation.

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

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WP No. 3856 of 2026

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In order to resolve the dispute, in the settlement under Section 12(3) of

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the Industrial Disputes Act, 1947, dated 04.01.2018, it is stated as follows:

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Perusal of the above said settlement makes it clear that the persons who

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are working in the Transport Corporation as on 01.09.2016 as permanent

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employee, are entitled to revision of pay scale and the revision of pay scale includes Gratuity and encashment of leave. However, while calculating the same based on the pay revision, they were settled only with the pension and other benefits except gratuity and encashment of leave. The rejection of the

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

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WP No. 3856 of 2026

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petitioners- request was on the ground that the petitioners are not in service as on the date of settlement, which is not sustainable one, as in the settlement, it is

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made clear that the persons who are working in the Transport Corporation as on

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01.09.2016 as permanent employees, are entitled to revision of pay scale.

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In the result, all the writ petitions are disposed of with a direction to implement the revised pay as per the settlement under Section 12(3) of the Industrial Disputes Act, 1947, to the petitioners with interest. Such exercise shall be completed within a period of twelve weeks from the date of receipt of a copy of this order. No costs.

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05-02-2026

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rli

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

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1.The Management of Tamil nadu State Transport Corporation (Kovai) Ltd,Rep. by its Managing Director, Coimbatore

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

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