Kabilar N Vs The Management of Tamilnadu State Transport Corporation (Kumbakonam) Limited

Prayer : Writ Petition filed under Article 226 of the Constitution of India to issue a writ of mandamus directing the respondent to revise / re-fix the scale of pay of the petitioner w.e.f 01.09.2023 to till his retirement, based on the wage settlement dated 29.05.2025 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% interest per annum, within a time frame as may be fixed by this court.

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For Petitioner : Mr.S.Arunachalam For Respondent : Mr.S.C.Herold Singh

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WP(MD)No.495 of 2026

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ORDER

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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 31.01.2024. The retirement benefits due to him were settled by the respondent belatedly. However, after his retirement, 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.

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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 31.01.2024, made a representation to the respondents seeking the benefits due to him as per the 15^th 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 15^th wage settlement dated 29.05.2025 and to pay the arrears of wages payable from 01.09.2023 till 2/7

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his date of retirement, difference in leave salary, gratuity, provident fund and arrears of pension from 01.09.2023 with interest.

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3.Learned Counsel for the petitioner submitted that the petitioner,

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who was in service as on 01.09.2023 is also entitled for the benefits as per the 15^th wage settlement dated 29.05.2025. He is entitled for this enhanced wages of 6% with effect from 01.09.2023 till the date of his retirement and since the basic pay has been enhanced by 6%, the other retirement benefits also needs to be revised in accordance with 15^th wage settlement. According to him, the revised pay and the other benefits have not been settled to the petitioner, despite his representation and therefore, the petitioner is constrained to file this writ petition.

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4.Mr.S.C.Herold Singh, learned Standing Counsel takes notice for the respondents and submitted that as per the settlement u/s.12(3) of the Act dated 29.05.2025, the Management is expected to calculate the arrears of amount and can 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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5.This Court paid it's anxious consideration to the rival submissions made and perused the materials placed on record.

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6.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.

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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 has retired from service on 31.01.2024 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.

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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 payment of retirement benefits, the employees are entitled for interest @ 6% per annum. Therefore, the arrears of salary and the differential retirement benefits due to the petitioner shall be paid together with 6% interest for the period beyond Clause 37(b) of the settlement dated 29.05.2025 till the realization.

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9.Accordingly, this writ petition stands allowed with a direction to the respondent Transport Corporation to settle the difference of pay based on the revised scale of pay as per the 15^th wage settlement dated 29.05.2025, together with the revised retirement benefits 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.

08.01.2026

DSK

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To