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2026 Supreme(Mad) 1316

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. Dhandapani, J.
The Management of Metropolitan Transport Corporation (Chennai) Limited - Petitioner
Versus
M.Nagarajan – Respondent
WP Nos. 32770, 32776, 32779, 32783 and of 2024 and WMP Nos.35607, 35612, 35614 and 35617 of 2024
Decided On : 22-04-2026

Advocates Appeared:
For the Petitioner: M/s. C.Gauthamaraj
For the Respondent:Mr.G.Vijay Priyan for M/s. R.Krishnaswamy Mr.R.Murthi Government Advocate

Once workers accept permanent status via a formal industrial settlement, they cannot subsequently claim retrospective permanency after a significant, unexplained delay, as such stale claims lack the necessary bona fides required to seek judicial or administrative intervention.

Headnote:(A) Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981 - Industrial Disputes Act, 1947 - Section 12(3) - Regularisation of service - Workers absorbed and regularised based on a bipartite settlement agreement - Claim for retrospective permanent status raised after nearly two decades of service. (Paras 2, 27)

(B) Limitation and Delay - Concept of bona fides - While no specific period of limitation is prescribed for moving a plea for permanent status, a long, unexplained delay in approaching the relevant authority after benefiting from a settlement agreement casts doubt on the bona fides of the claimants - Claimants cannot turn around and seek retrospective benefits after accepting their permanent status under a settled agreement for over a decade and a half. (Paras 3, 38, 39)

Facts of the case:
The respondents were initially engaged as temporary crew members and subsequently regularised as daily wage employees following a settlement agreement. Over 17 years after the settlement, the respondents filed claims before the authority seeking retrospective permanent status. The authority allowed these claims, prompting the management to challenge the orders, contending that the claims were stale and inconsistent with the accepted settlement.

Findings of Court:
The court observed that the workers had accepted the terms of the settlement and served for years without protest. The attempt to reopen the issue after a long duration, without explaining the delay, lacked merit. The court held that once a worker is regularised based on a formal settlement, they cannot subsequently seek an earlier date of permanency that contradicts the established agreement.

Issues: Whether employees who have been regularised pursuant to a collective settlement agreement are entitled to claim retrospective permanent status after a significant, unexplained delay in approaching the authority.

Ratio Decidendi: The court followed the principle that participants in a formal industrial settlement who remain silent for over a decade and a half cannot validly claim retrospective permanency. The inordinate delay without reasonable justification undermines the veracity and bona fides of the claim.

Result: Writ petitions allowed; impugned orders set aside.

Table of Content
1. establishing the factual matrix of delayed claims for permanent status. (Para 1 , 2)
2. competing arguments on settlement acceptance versus retrospective permanent status rights. (Para 3 , 4)
3. analysis of stale claims and the absence of bona fides in delayed legal proceedings. (Para 5)
4. setting aside impugned orders based on settled precedent regarding stale claims. (Para 7)

ORDER :

M. Dhandapani, J.

These four petitions have been filed challenging the impugned orders dated 30.04.2024 and 11.03.2024 passed by the 2nd respondent herein, and to quash the same as being illegal, arbitrary and without jurisdiction.

2.The case of the petitioner in respective writ petitions is that the first respondent therein were initially engaged on a temporary basis as Reserve Crew Drivers and Reserve Crew Conductors on a stop-gap arrangement and were subsequently appointed as daily wage drivers and conductors in the years 1999 and 2000. They were later granted regularisation with effect from 01.09.2005 pursuant to the 12(3) Settlement dated 31.08.2005. It is the further case of the petitioner that, in view of the Government ban order dated 05.07.2001, no fresh appointments or regularisations could be made during the currency of the ban period. After a lapse of 23 years, the first respondents filed claim petitions under the Conferment Permanent Status Act, in Case Nos.E/115, E/117, A/129 and E/116 of 2023 before the second respondent seeking regularisation. However, the second respondent, without appreciating the counter statement and without any supporting documents from the applicant erroneously passed the impugned order directing regularisation. Hence the present writ petitions have been filed.

3.The learned counsel for the petitioner would submit that the issue involved in the present writ petition is no longer res integra, as the same has already been decided by the Hon’ble Division Bench of this Court in W.A(MD) No.442 of 2025 etc., batch. In the said judgment, the Hon’ble Division Bench of this Court held that the employees having accepted the terms of the 12(3) settlement and served for about ten years, cannot turn around at one fine morning and file a petition under the Permanent Status Act claiming retrospective permanent status on completion of 480 days of continuous service till the date on which they were regularised in the sanctioned post. It was further held that a person, who has slept over his rights, cannot wake up at one fine morning and claim such benefits and in the ordinary circumstances, such claims are to be construed as stale. Further, this Court had also passed a detailed order with regard to the Conferment of Permanent Status in W.P No.7191 of 2024 etc., Batch. Accordingly, he prayed for appropriate orders.

4.Per contra, the learned counsel appearing for the first respondent would submit that, admittedly, the first respondents in the respective writ petitions had entered service as temporary drivers and conductors in the years 1999 and 2000, and that their services were regularised only in the year 2005. As per Conferment of Permanent Status Act, the first respondents were entitled to be made permanently upon after completion 480 days within a calendar year, however, the same was not done by the petitioner Corporation. Subsequently, on the basis of legal advice, the first respondents filed petitions under said Act, which came to be allowed. Hence, the said order does not warrants any interference. Accordingly, he prayed for dismissal of the petition.

5.Heard the learned counsel on either side and perused the materials available on record.

6.This Court in W.P No.7191 of 2024 etc. batch cases, held as follows:

25. It is not disputed by the respondents that based on the settlement arrived at between the Unions and the Corporation on 31.8.2005, the respondents, who were daily wagers and working as temporary/casual drivers and conductors were absorbed on completion of 240 days of continuous service and regularised

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