Madras High CourtWA(MD)/1153/2023dismissed

V.Vellaiappan v. The Superintending Engineer

2026-03-10Honourable Mr Justice G.R.Swaminathan,Honourable Ms.Justice R. Poornima22 pages

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 10.03.2026

CORAM

THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN AND THE HONOURABLE MS.JUSTICE R.POORNIMA W.A(MD)Nos.1153, 1220, 1227 & 1341 of 2023 W.A(MD)No.1153 of 2023:

V.Vellaiappan ... Appellant / 2nd Respondent Vs.

1.The Superintending Engineer, Karur Electricity Distribution Circle, Tamil Nadu Electricity Board (TNEB), (Tamil Nadu Generation and Distribution Corporation), Karur - 639 002.

2.The Chief Engineer / Distribution, Tamil Nadu General and Distribution Corporation (TANGEDCO), Trichy Region, Thennur, Trichy.

... Respondents 1 & 2/ Petitioners 3.The Assistant Commissioner of Labour, (Controlling Authority Under Payment of Gratuity Act, 1972), Dindigul.

... 3rd Respondent / 1st Respondent 1/22

Prayer: Writ Appeal filed under Clause 15 of the Letters Patent Act to set aside the order in W.P(MD)No.5134 of 2020 dated 30.01.2023 by allowing this Writ Appeal.

For Appellant : Mr.A.Haja Mohideen For Respondents : Ms.P.Malini for M/s.Agam Legal for R.1 & R.2 Mr.T.Amjad Khan Government Advocate for R.3 W.A(MD)No.1220 of 2023:

1.P.Ramakrishnan 2.S.Jeyapapaul Singh 3.P.Venugopalan 4.A.Subramanian 5.SU.Namachivayan 6.G.Navamani 7.V.Sethuraman 8.K.Ramu 9.K.Chelliah 10.M.Lakshmi ... Appellants / Petitioners 1 to 5, 7, 8, 13, 14 & 15 Vs.

1.The State represented by The Secretary to the Government, Labour and Employment Department, Fort St.George, Chennai - 9.

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2.The Commissioner of Labour, Office of the Commissioner of Labour, Chennai - 6.

3.Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Formerly TNEB, Rep by its Chairman / Director, 144, Anna Salai, Chennai - 600 002.

4.Tamil Nadu Electricity Board (TNEB), Presently Known as Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Rep by its Secretary, 144 Anna Salai, Chennai - 600 002.

5.The Deputy Commissioner of Labour, Authority Under the Payment of Gratuity Act, Combined Labour Court Complex, Bharathi Ula Salai, Race Course Salai, Madurai - 625 002.

6.The Additional Commissioner of Labour, Appellate Authority Under the Payment of Gratuity Act, 1st Floor, Tamil Nadu Housing Board, Ellis Nagar, Madurai - 625 001.

7.The Deputy Commissioner of Labour, The Controlling Authority Under the Payment of Gratuity Act, Office of Joint Commissioner of Labour, Sengulum Colony, Tiruchirappalli - 620 020.

8.The Joint Commissioner of Labour, The Appellate Authority 3/22

Under the Payment of Gratuity Act, Sengulum Colony, Tiruchirappalli - 620 020.

9.The Deputy Commissioner of Labour, The Controlling Authority Under the Payment of Gratuity Act, Dindigul Collector Office, Chettinaickenpatti, Dindigul - 624 004.

10.The Deputy Commissioner of Labour - Tirunelveli, The Controlling Authority Under the Payment of Gratuity Act, Combined Labour Department Office Buildings, Opposite to All India Radio, Konam, Nagercoil, Kanyakumari District.

... Respondents 1 to 10 / Respondents 1 to 10 11.M.Selvaraj 12.V.Chandran 13.R.Rajamani 14.D.Vellaiammal 15.P.Palammal ... Respondents 11 to 15 / Writ Petitioners 6, 9 to 12 Prayer: Writ Appeal filed under Clause 15 of the Letters Patent Act to set aside the order in W.P(MD)No.859 of 2022 dated 30.01.2023 by allowing this Writ Appeal.

For Appellants : Mr.A.Haja Mohideen 4/22

For Respondents : Mr.T.Amjad Khan Government Advocate for R.1, R.2, R.5 to R.10 Ms.P.Malini for M/s.Agam Legal for R.3 & R.4 W.A(MD)No.1227 of 2023:

1.R.Muthuirulandi 2.G.Krishnan 3.R.Karunanithi 4.D.Martin Deborus 5.M.Dakhsnamoorthy 6.S.Emalda 7.C.Elongovan 8.K.Subramanian 9.S.Jesudasan 10.M.Sudalai 11.P.Kannan 12.K.Murugan 13.M.Muthukrishnan 14.R.Hariharan 15.K.Vadivel 16.N.Shunmugavelu 17.M.Ganthi 18.R.Ganthi 19.G.Kannan 20.R.Lakshmanan 21.L.Krishnan 22.R.Saivadurai 23.P.Ganesan 24.S.Jeyaprakash 25.R.Dinakaran 26.K.Uthiran 27.M.Govindarajan 5/22

28.S.Sarathamani Devi ... Appellants / Petitioners 1, 3, 16, 20 to 23, 26, 28 to 30 & 32 to 48 Vs.

1.The State represented by The Secretary to the Government, Labour and Employment Department, Fort St.George, Chennai - 9.

2.The Commissioner of Labour, Office of the Commissioner of Labour, Chennai - 6.

3.Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Formerly TNEB, Rep by its Chairman / Director, 144, Anna Salai, Chennai - 600 002.

4.Tamil Nadu Electricity Board (TNEB), Presently Known as Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Rep by its Secretary, 144, Anna Salai, Chennai - 600 002.

5.The Deputy Commissioner of Labour, Authority Under the Payment of Gratuity Act, Combined Labour Court Complex, Bharathi Ula Salai, Race Course Salai, Madurai - 625 002.

6.The Additional Commissioner of Labour, Appellate Authority under the Payment of Gratuity Act, 1st Floor, Tamil Nadu Housing Board, 6/22

Ellis Nagar, Madurai - 625 001.

7.The Deputy Commissioner of Labour, The Controlling Authority under the Payment of Gratuity Act, Office of Joint Commissioner of Labour, Sengulum Colony, Tiruchirappalli - 620 020.

8.The Joint Commissioner of Labour, The Appellate Authority under the Payment of Gratuity Act, Sengulum Colony, Tiruchirappalli - 620 020.

9.The Deputy Commissioner of Labour, The Controlling Authority under the Payment of Gratuity Act, Dindigul Collector Office, Chettinaickenpatti, Dindigul - 624 004.

... Respondents 1 to 10 / Respondents 1 to 10 11.K.Chinnathal 12.S.Ayyam Perumal 13.P.Jesurai 14.M.A.Abdul Jabbar 7/22

15.C.Rajan 16.P.Kolappa Pillai 17.P.Ganesan 18.A.Soloman Edwin 19.S.Mutham Perumal 20.E.Gombal 21.R.Pitchai 22.M.Rajagopal 23.A.Muthu 24.T.Pakkirisamy 25.A.John Napoleon 26.R.Perumal 27.S.Ramasamy 28.K.Rajendran 29.K.Poonusamy 30.R.Ramar ... Respondents 11 to 29 / Writ Petitioners 2, 4 to 15, 17 to 19, 24, 25, 27 & 31 Prayer: Writ Appeal filed under Clause 15 of the Letters Patent Act to set aside the order in W.P(MD)No.21093 of 2021 dated 30.01.2023 by allowing this Writ Appeal.

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For Appellants : Mr.A.Haja Mohideen For Respondents : Mr.T.Amjad Khan Government Advocate for R.1, R.2, R.5 to R.10 Ms.P.Malini for M/s.Agam Legal for R.3 & R.4 W.A(MD)No.1341 of 2023:

1.V.Vellaiappan 2.K.Rajacholan 3.S.Dhanapal 4.R.Santhanakrishnan 5.T.Ramu 6.P.Ramanujam 7.S.Susairaj 8.M.Vaiyapuri 9.P.Balasundram 10.M.Subramanian 11.P.Anbalagan 12.C.Vincent Cardoge 13.T.Devasahayam 14.A.Picthai 15.K.Antonyraj 16.A.Solaman 17.G.Pappaiah 18.R.Sethu 19.M.Maheswari 20.S.Rethinam 21.R.Jayaraj 22.S.Velayutham 23.G.Srinivasan 24.M.Karunanidhi 25.G.Pandian 26.V.Ayyyavoo 9/22

27.S.Nagan 28.A.Ayyasamy 29.S.Nagarajan 30.U.Krishnan 31.A.Damullalam 32.K.Gandhi 33.M.Govindan 34.K.Nagasamy 35.M.Manikkam 36.R.Mahalingam 37.M.Chinnathambi 38.K.Sathaia 39.P.K.Karuppaiah 40.C.Muthusamy 41.K.Muthuramalingam 42.N.Angusamy 43.C.Ganesan 44.R.Muthukrishnan 45.N.Ganesan 46.R.Sekaran 47.M.Ganesan 48.S.Soundaram 49.N.Ragavan 50.R.Gananshanmugam 51.R.Ambigai Sundaram 52.V.Gowri 53.B.Balu 54.M.Sumathi 55.V.Mariammal 56.V.Sethuraman 57.M.Abdul Hameed 58.M.Natrajan 59.P.Kuppusamy 60.K.Palani 61.V.Thiruvettai 62.P.R.Suriya Kumar 63.S.Thangapandi 64.V.Ganesan 65.S.Velusamy 10/22

66.P.Chinnamuthu ... Appellants / Petitioners 1, 2, 11, 13 to 15, 17, 18, 20 to 30, 32, 33, 35, 36, 49 to 56, 58, 60, 61, 63 to 67, 69, 70, 72 to 79, 82, 85 to 94, 97, 99, 101, 107, 110 & Vs.

1.The State represented by The Secretary to the Government, Labour and Employment Department, Fort St.George, Chennai - 9.

2.The Commissioner of Labour, Office of the Commissioner of Labour, Chennai - 6.

3.Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Formerly TNEB, Rep by its Chairman / Director, 144, Anna Salai, Chennai - 600 002.

4.Tamil Nadu Electricity Board (TNEB), Presently Known as Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Rep by its Secretary, 144, Anna Salai, Chennai - 600 002.

5.The Deputy Commissioner of Labour, Authority Under the Payment of Gratuity Act, Combined Labour Court Complex, Bharathi Ula Salai, Race Course Salai, Madurai - 625 002.

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6.The Additional Commissioner of Labour, Appellate Authority under the Payment of Gratuity Act, 1st Floor, Tamil Nadu Housing Board, Ellis Nagar, Madurai - 625 001.

7.The Deputy Commissioner of Labour, The Controlling Authority under the Payment of Gratuity Act, Office of Joint Commissioner of Labour, Sengulum Colony, Tiruchirappalli - 620 020.

8.The Joint Commissioner of Labour, The Appellate Authority under the Payment of Gratuity Act, Sengulum Colony, Tiruchirappalli - 620 020.

9.The Deputy Commissioner of Labour, The Controlling Authority under the Payment of Gratuity Act, Dindigul Collector Office, Chettinaickenpatti, Dindigul - 624 004.

... Respondents 1 to 10 / Respondents 11.K.Marappan 12.V.Krishnan 12/22

13.P.Nagappan 14.A.Subramanian 15.M.Dhanapackiyam 16.T.Kuppan 17.M.Duraimanickkam 18.M.Chinnan 19.G.Kathirvel 20.A.Ganeshan 21.R.Muthiyan 22.P.Murugaesan 23.M.Thangavel 24.D.Jaganathan 25.P.Marimuthu 26.R.Jayaraman 27.R.Gurusami 28.P.Balachandran 29.R.Arusamy 30.V.Palaniyappan 31.K.Durgaiyandi 32.N.Arasuappan 13/22

33.N.Petchimuthu 34.N.Balan 35.K.Thangaraju 36.S.Sundramurthi 37.K.Gandhi 38.R.Loganathan 39.K.Karuppiah 40.S.Sabasthian 41.N.Solapandiyan 42.M.Rajendran 43.M.Angusamy 44.S.Murugesan 45.S.Sudarsan 46.E.Gangaiyan 47.P.Ramasamy 48.R.R.Govindraj 49.P.Valli 50.S.Nargisjan 51.G.Saroja 52.S.Arumugam 14/22

53.V.Murugandi 54.V.V.Kannan 55.P.Raman ... Respondents 11 to 55 / Writ Petitioners 3 to 10, 12, 16, 19, 31, 34, 37 to 48, 57, 59, 62, 68, 71, 80, 81, 83, 84, 95, 96, 98, 100, 102 to 106, 108 & 109 Prayer: Writ Appeal filed under Clause 15 of the Letters Patent Act to set aside the order in W.P(MD)No.17828 of 2021 dated 30.01.2023 by allowing this Writ Appeal.

For Appellants : Mr.A.Haja Mohideen For Respondents : Mr.T.Amjad Khan Government Advocate for R.1, R.2, R.5 to R.10 Ms.P.Malini for M/s.Agam Legal for R.3 & R.4 COMMON JUDGMENT (Judgment of the Court was made by G.R.Swaminathan J.) Heard both sides.

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2.The appellants herein were employees of TANGEDCO. Contending that their gratuity claims were not honoured, they filed applications before the controlling authority under the Payment of Gratuity Act, 1972. Awards were passed in their favour. Challenging the same, TANGEDCO filed writ petitions before this Court. The learned single Judge vide order dated 30.01.2023 set aside the order passed by the controlling authority and allowed the writ petitions. Assailing the same, these writ appeals have been filed.

3.Paragraphs 6, 8, 9 and 10 of the order of the learned single Judge read as follows:

"6. As per the power available under Section 5 of the Act, the State Government has issued G.O.(Ms.).No. 699, Labour and Employment Department, dated 16.03.1983, exempting from the application of Payment of Gratuity Act to the respondent Corporation and the same was confirmed by the Division Bench of this Court in W.A.No.75 of 2018. The Division Bench of this Court, vide order dated 27.09.2018, set aside the order passed by the learned single Judge and confirmed the exemption granted to the respondent Corporation and the decision of the Apex Court relied on by the learned 16/22

counsel for the petitioners is not applicable to the case on hand. Hence, he prayed for appropriate orders.

7. ...

8. The issue arises in the present writ petitions is whether the person, who receiving the pension, is entitled for gratuity or not. For better appreciation, Section 5 of the said Act reads as follows:

Power to exempt "(1) The appropriate Government may, by notification, and subject to such conditions as may be specified in the notification, exempt any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act if, in the opinion of the appropriate Government, the employees in such establishment, factory, mine, oilfield, plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.

(2) The appropriate Government may, by notification and subject to such conditions as may be specified in the notification, exempt any employee or class of employees employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or class of employees are in receipt of gratuity or pensionary 17/22

benefits not less favourable than the benefits conferred under this Act.

(3) A notification issued under sub-section (1) or sub-section (2) may be issued retrospectively a date not earlier than the date of commencement of this Act, but no such notification shall be issued so as to prejudicially affect the interests of any person. "

9. A perusal of Section 5 of the Act reveals that the State Government have power to exempt any establishment or any employee for getting gratuity amount, if they received gratuity or pensionary benefits not less than the benefits conferred under this Act. Admittedly, the petitioners are the retired employees of the respondent Corporation and they are also pensioners and already they were paid the death cum retirement gratuity under the Pension Scheme. Apart from that, they have made applications before the Gratuity authority claiming gratuity amount under the Payment of Gratuity Act, 1972. The learned single Judge has allowed the writ petition in W.P.(MD).No. 33704 of 2002 filed by the employee of the respondent Corporation claiming gratuity amount under the Act 1972. However, the same was challenged before the Division Bench of this Court and the Division Bench of this Court has set aside the order and held in favour of the respondent Board. Equally, it is also undisputed that the State Government granted exemption to the 18/22

respondent Corporation from application of the Act vide G.O.(Ms.).No.699, Labour and Employment Department dated 16.03.1983. Further, this Court has perused the order of learned single Judge and the learned single Judge order was modified by the Division Bench of this Court. Hence, as a judicial discipline, this measure was followed by the Division Bench of this Court and not carrying the Apex Court decision. In the Apex Court decision, the establishment, who was arrayed as a party before the Apex Court, was not exempted from payment of gratuity. However, in the present cases, exemption was granted to the respondent Corporation from payment of gratuity in respect of the person, who receiving pension from the respondent Corporation.

10. In view of the above, the writ petition in W.P. (MD).No.5134 of 2020 filed by the respondent Corporation is allowed and the other writ petitions in W.P.(MD).Nos.859 of 2022, 17828 of 2021 and 21093 of 2021 filed by the employees of the Corporation are dismissed. No costs. Consequently, the connected Miscellaneous Petitions are closed."

4.We do not find any error in the approach adopted by the learned single Judge. The Government had specifically exempted the corporation from the applicability of the said Act. Therefore, the 19/22

controlling authority lacked the jurisdiction to entertain the claim of the employees of TANGEDCO. There is no merit in these writ appeals. 5.These Writ Appeals stand dismissed. No costs. [G.R.S., J.] [R.P, J.] 10.03.2026 NCC : Yes / No Index : Yes / No Internet : Yes/ No MGA To 1.The Secretary to the Government, Labour and Employment Department, Fort St.George, Chennai - 9.

2.The Commissioner of Labour, Office of the Commissioner of Labour, Chennai - 6.

3.The Chairman / Director, Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Formerly TNEB, 144, Anna Salai, Chennai - 600 002.

4.The Secretary, Tamil Nadu Electricity Board (TNEB), Presently Known as Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), 144, Anna Salai, Chennai - 600 002.

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5.The Deputy Commissioner of Labour, Authority Under the Payment of Gratuity Act, Combined Labour Court Complex, Bharathi Ula Salai, Race Course Salai, Madurai - 625 002.

6.The Additional Commissioner of Labour, Appellate Authority under the Payment of Gratuity Act, 1st Floor, Tamil Nadu Housing Board, Ellis Nagar, Madurai - 625 001.

7.The Deputy Commissioner of Labour, The Controlling Authority under the Payment of Gratuity Act, Office of Joint Commissioner of Labour, Sengulum Colony, Tiruchirappalli - 620 020.

8.The Joint Commissioner of Labour, The Appellate Authority under the Payment of Gratuity Act, Sengulum Colony, Tiruchirappalli - 620 020.

9.The Deputy Commissioner of Labour, The Controlling Authority under the Payment of Gratuity Act, Dindigul Collector Office, Chettinaickenpatti, Dindigul - 624 004.

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G.R.SWAMINATHAN, J.

AND R.POORNIMA , J.

MGA 10.03.2026 22/22