T.Velayutham Vs The Managing Director

Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of Writ of Mandamus directing the respondents herein to revise the petitioner's wages with effect from 01.09.2023 based on the 15^th tripartite wage settlement dated 29.05.2025 and to pay arrears of wages payable from 01.09.2023 to 31.10.2023 and also difference in

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

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WP.(MD)No.36837 of 2025

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Gratuity, Provident Fund, Leave Salary and arrears of pension from 01.11.2023 to 31.07.2025 along with the interest at the rate of 6% per annum from the date of 15^th wage settlement to till the date of actual payment and subsequently direct the respondents to pay the interest at the rate of 6% per annum for the belated settlement of the petitioner's retirement benefits, namely, EPF Employee's Contribution, Gratuity and leave salary for the period from 31.10.2023 to 25.08.2025 based on the petitioner's representation dated 23.10.2025 within the time limit that may be fixed by this Court.

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For Petitioner : Mr.S.Sarvagan Prabhu For R1 : Mr.S.Raja, Standing Counsel For R2 : Mr.S.C.Herold Singh, Standing Counsel

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ORDER

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The petitioner was appointed as a Foreman in the respondent transport corporation on 27.02.1988 and after rendering 36 years of service, he retired from service as Special Grade Driver on 31.10.2024. 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

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WP.(MD)No.36837 of 2025

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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 01.09.2023 and therefore, the petitioner made a representation to the respondent seeking the benefits due to him as per the 15^th wage settlement. Alleging inaction, he has filed this writ petition seeking a mandamus to the respondents to revise his wages, based on the 15^th wage settlement dated 29.05.2025 and to pay the benefits with interest.

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Mr.S.Raja, learned Standing Counsel takes notice for the 1^st respondent and submits that as per Clause 37(b) of the settlement u/s.12(3) of the ID 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, which is payable in four quarterly installments. According to him, they would calculate the same and if there is any due, it would be paid to the petitioner within a reasonable time.

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4.This court has considered the rival submissions made and perused

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the materials placed on record.

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5.The 15^th 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. 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 as under:-

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“M) ,e;j xg;ge;jj;jpd; K:ykhd gzg;gad;

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epYitj; bjhif 01/09/2024 Kjy; fzf;fplg;gl;L

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4 jtizfshf fhyhz;LnjhWk; tH';fg;gLk;. ”

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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 15^th wage settlement. The petitioner retired from service on 31.10.2024. 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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WP.(MD)No.36837 of 2025

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8.Admittedly, such a revision has not been made till 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 15^th wage settlement dated 29.05.2025 to the petitioner within a period of six months from the date of receipt of a copy of 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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02.01.2026

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NCC : Yes/No Index : Yes/No Internet:Yes ogy

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To

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