Madras High CourtWP(MD)/5019/2026allowed

K.Vijayakumar, v. The State Express Transport Corporation Ltd,

2026-02-25Honourable Mr Justice B.Pugalendhi8 pages

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.02.2026 CORAM :

THE HON`BLE MR.JUSTICE B.PUGALENDHI K.Vijayakumar ... Petitioner Vs.

1.The State Express Transport Corporation Ltd, Rep. By its Managing Director Chennai 600 002 2.The General Manager The State Express Transport Corporation Ltd Head Office No.2 Thiruvalluvar Illam Pallavan Salai Chennai - 600 002 3.The Branch Manager The State Express Transport Corporation Ltd Branch Office Trichy - 620 020.

4.The Administrator The Tamil Nadu State Transport Corporation Employees Pension Fund Trust No.2 Thiruvalluvar Illam SETC Head Office Pallavan Salai Chennai 600 002 ... Respondents 1/8

Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of Writ of Mandamus, to direct the Respondents herein to revise the wages of the Petitioner with effect from 01.09.2023 based on the 15th wage settlement dated 29.05.2025 and to pay arrears of wages payable from 01.09.2023 to 31.07.2024, difference in Leave Salary, Gratuity and arrears of pension from 01.08.2024 to 31.07.2025 along with interest at the rate of 12 percent per annum from the date of wage settlement i.e., 29.05.2025 till the date of actual payment. For Petitioner : Mr.D.Siva Raman For R1 to R3 : Mr.K.Ramaiah, Standing Counsel.

For R4 : Mr.S.C.Herold Singh Standing Counsel.

ORDER

The petitioner has joined as a Driver in the respondent transport corporation on 28.03.1990 and retired from service on 31.07.2024. The retirement benefits due to him were settled by the respondent on 25.08.2025. However, the 15th tripartite wage settlement under Section 12(3) of the Industrial Disputes Act was entered into between the 2/8

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. 2.Admittedly, the petitioner was in service as on 01.09.2023 and retired from service on 31.07.2024 and 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 his wages, based on the 15th wage settlement dated 29.05.2025 and to pay the benefits with interest.

3.Mr.K.Ramaiah, learned Standing Counsel takes notice for the respondents 1 to 3 and Mr.S.C.Herold Singh, learned Standing Counsel takes notice for the fourth respondent and submit that as per Clause 37(b) of the settlement u/s.12(3) of the Act dated 29.05.2025, the Management is 3/8

expected to revise the scale of pay from 01.09.2023 and to calculate the arrears of amount with effect from 01.09.2024 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.

4.This Court paid it's anxious consideration to the rival submissions made on either side and perused the materials placed on record. 5.The 15th 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:- "M) ,e;j xg;ge;jj;jpd; K:ykhd gzg;gad; epYitj; bjhif 01.09.2024 Kjy; fzf;fplg;gl;L 4 jtizfshf fhyhz;LnjhWk; tHq;fg;gLk;."

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 15th wage settlement. The petitioner was retired from service on 31.07.2024 and he was paid with the retirement benefits as per the earlier wage settlement. The 15th 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.

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 5/8

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 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.

25.02.2026 NCC : Yes/No Index : Yes/No Internet:Yes gns To 6/8

4.The Administrator The Tamil Nadu State Transport Corporation Employees Pension Fund Trust No.2 Thiruvalluvar Illam SETC Head Office Pallavan Salai Chennai 600 002 7/8

B.PUGALENDHI,J gns 25.02.2026 8/8