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2026 Supreme(Online)(Mad) 32148

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
G.R. Swaminathan, R. Poornima, JJ
M.MOHAN – Appellant
Versus
THE PRESIDING OFFICER – Respondent
W.A(MD) No.248 of 2021 of 2022|W.A.(MD) No.1299 of 2023|W.A.(MD) No.1305 of 2023



Advocates:
For the Appellants/Petitioners: S. Arunachalam, Ajmal Khan
For the Respondents: Ajmal Khan, S. Arunachalam, Shrijayanthy

Workmen serving over 240 days annually who are orally terminated without enquiry or misconduct are entitled to permanency status and subsequent closure and lay-off compensation, even if the establishment has since closed.

Headnote:The matter pertains to the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workman) Act, 1981 and the Industrial Disputes Act. A workman employed as an NMR welder since 1979 was orally terminated in 1994. The Labour Court held the termination illegal but denied backwages as the mill closed in 2002. The court determined the workman had served over 240 days annually and was entitled to permanent status. The court examined the legality of the termination and the right to permanency. It held that since no enquiry was held and no misconduct was attributed, "Section 25(f) as well as Section 25(n) of Industrial Dispute Act will kick in." The court reasoned that in the interest of justice, the workman should be considered a permanent employee. These Writ Appeals are disposed of accordingly.

Table of Content
1. employment history and the occurrence of illegal oral termination. (Para 2)
2. entitlement to permanency status based on service duration and illegality of termination without enquiry. (Para 3 , 4)
3. award of closure compensation, lay-off benefits, and interest in lieu of backwages. (Para 5 , 6)

In W.A.(MD)No.248 of 2022

PRAYER:

Writ Appeal filed under Clause 15 of the Letters Patent as against the order of this Court dated 05.02.2021 in W.P.(MD)No.15016 of 2010 dismissing the same.

For Appellant : Mr.S.Arunachalam

For Respondents : Mr.Ajmal Khan

Additional Advocate General

assisted by Mrs.Shrijayanthy

for R2

: R1- Labour Court

: No appearance

for R3

In W.A.(MD)No.1299 of 2023

The Management,

Madurai Sugars,

Pandiarajapuram,

Vadipatty Taluk,

Madurai District,

represented through its

Chief Executive. ... Appellant / Petitioner

Vs.

1.The Presiding Officer,

Labour Court,

Madurai.

2.M.Mohan

3.Tamil Nadu Sugar Corporation,

690, Anna Salai,

Chennai, through its Chairman. ... Respondents

PRAYER:

Writ Appeal filed under Clause 15 of the Letters Patent as against the order of this Court dated 05.02.2021 in W.P.(MD)No.6089 of 2010 dismissing the same.

For Appellant : Mr.Ajmal Khan

Additional Advocate General

assisted by Mrs.A.Shrijayanthy

For Respondents : Mr.S.Arunachalam

for R2

: No appearance

for R3

: R1-Labour Court

In W.A.(MD)No.1305 of 2023

The Management,

Madurai Sugars,

Pandiarajapuram,

Vadipatty Taluk,

Madurai District,

represented through its

Chief Executive. ... Appellant / Petitioner

Vs.

1.The Presiding Officer,

Labour Court,

Madurai.

2.A.Muthannan

3.Tamil Nadu Sugar Corporation,

690, Anna Salai,

Chennai, through its Chairman. ... Respondents

PRAYER:

Writ Appeal filed under Clause 15 of the Letters Patent as against the order of this Court dated 05.02.2021 in W.P.(MD)No.6119 of 2010.

For Appellant : Mr.Ajmal Khan

Additional Advocate General

assisted by Mrs.A.Shrijayanthy

For Respondents : Mr.S.Arunachalam

for R2

: No appearance

for R3

: R1-Labour Court

COMMON JUDGMENT

(Judgment of the Court was made by G.R.SWAMINATHAN, J.)

Heard both sides.

2. Thiru.Mohan joined the Madura Sugars, Padiyarajapuram Village, Vadipatty Taluk, Madurai District as NMR welder in the year 1979. Even though he had served for more than 240 days in a given year, he was not made permanent. Mohan also did not approach the authority under Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workman) Act, 1981 seeking relief. Be that as it may, from 15.12.1994, he was disengaged. That amounted to oral termination. Hence, Mohan raised industrial dispute and it was taken on file by the Labour Court, Madurai in I.D.No.41 of 2002. It is seen that Mohan did not approach the Labour Court immediately. Instead, he filed the writ petition before the High Court and the said writ petition was dismissed with liberty to raise an industrial dispute. Before the Labour Court, Mohan examined himself as WW1. He also marked as many as 46 exhibits. On the side of the management, 6 exhibits were marked. The Labour Court after considering the evidence on record passed an award on 29.04.2009 holding that termination of Mohan was illegal. Since the Mill itself was closed in the year 2002, the Labour Court directed that Mohan should be considered as having been in service from the date of 15.12.1994 till the mill was closed. He was also held to be entitled to other benefits. He was, however, not given any backwages. Challenging the denial of backwages, Mohan filed W.P.(MD)No.15016 of 2010. The Management also challenged the award and filed W.P. (MD)No.6089 of 2010. The learned single Judge vide order dated 05.02.2021 declined to interfere with the award passed by the Labour Co

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