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2026 Supreme(Online)(Mad) 33341

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. ASHA, J
L.Subramanian – Appellant
Versus
The Managing Director Tamil Nadu State Transport Corporation (Coimbatore) Ltd. – Respondent
Writ Petition



Advocates:
For Petitioner(s): Mr. J. Titus Enock
For Respondent(s): Mr. M. Murali Vinodh Standing Counsel

Retired employees entitled to retrospective wage settlement terminal benefits with interest.

Headnote:The petitioner, a retired employee, sought terminal benefits including gratuity, leave salary, and pension arrears as per the 15th wage settlement under Section 12(3) of the Industrial Disputes Act, 1947, effective retrospectively from 01.09.2023, prior to which the petitioner retired on 31.10.2023. The respondent corporation failed to extend these benefits despite representation. The Court directed payment of differential amounts with 6% interest within six weeks. The issue was whether the petitioner was entitled to revised terminal benefits under the retrospective wage settlement. The Court accepted the respondent's submission and applied the settlement terms to grant relief. The writ petition was disposed of directing payment of applicable differential leave salary, gratuity, and pension arrears with 6% interest, no order as to costs.

Table of Content
1. petitioner's claim for retrospective terminal benefits. (Para 1 , 2)
2. counsel submissions heard. (Para 4)
3. court directs payment with interest. (Para 5 , 6)

PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, directing the respondent to pay the difference amount of terminal benefits such as gratuity and earned leave salary, as per the 15th wage settlement along with 18 percent per annum interest for the belated period of terminal benefits to the petitioner within stipulated time as may be fixed by this Court.

For Petitioner(s): Mr. J. Titus Enock For Respondent(s): Mr. M. Murali Vinodh Standing Counsel

ORDER

This Writ Petition has been filed seeking a direction to the Respondent to pay the difference amount of terminal benefits such as gratuity and earned leave salary, as per the 15th wage settlement along with 18 percent per annum interest for the belated period of terminal benefits to the petitioner within stipulated time as may be fixed by this Court.

2. The petitioner was working as a Special Grade Driver in the Respondent Corporation and retired from service on 31.10.2023 prior to the wage settlement entered into a settlement under Section 12(3) of the Industrial Disputes Act, 1947, dated 29.05.2025, which was given retrospective effect from 01.09.2023 respectively. As per the said settlement, the petitioner is entitled to the difference in leave salary, gratuity and pension arrears. However, the said benefits have not been extended to the petitioner. Though the petitioner submitted a representation dated 21.02.2026 in this regard to the respondents, the same has not been considered. Hence, the petitioner has come up with the present Writ Petition.

4. Heard the learned counsel appearing for the petitioner and the learned standing counsel appearing for the respondent corporation.

5. In view of the above submission of the learned Standing Counsel appearing on behalf of respondent, this Court deems it appropriate to direct the respondent to pay the applicable differential amount of leave salary, gratuity and pension arrears to the petitioner, in accordance with the 15th Wage Settlement dated 29.05.2025, together with interest at the rate of 6% per annum, within a period of six weeks from the date of receipt of a copy of this order.

6. Accordingly, this Writ Petition is disposed of with the aforesaid direction. There shall be no order as to costs.

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