Retired employees entitled to retrospective wage settlement arrears including interest at 6% for delay.

PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, directing the Respondents to pay interest amounts to the petitioner for the belatedly paid Service Gratuity, Provident Fund, Leave Salary and Commutation of Pension along with the arrears payable on account of 15th wage Settlement at the rate of 6 percent per annum for 3 months of delayed payment in the light of the judgment passed by this Court on 23.10.2024 in W.P. No.30766 of 2024 by considering the representation dated 16.03.2026.

For Petitioner(s): Mr. N.Ishak For Respondent(s): Ms. V.Jayalakshmi Standing Counsel for R1 and R2 Mr.C.S.K.Sathish Standing Counsel for R3

Order

This Writ Petition has been filed seeking a direction to the Respondents to pay interest amount to the petitioner for the belatedly paid Service Gratuity, Provident Fund, Leave Salary and Commutation of Pension along with the arrears payable on account of 15^th wage Settlement at the rate of 6 percent per annum for 3 months of delayed payment in the light of the judgment passed by this Court on 23.10.2024 in W.P. No.30766 of 2024 by considering the representation dated 16.03.2026.

2. The petitioner was working as Senior Tradesman L5 in the Respondent Corporation and retired from service on 30.11.2025 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 16.03.2026 in this regard to the respondents, the same was not considered and therefore, in order to espouse the said cause, the petitioner has come up with present Writ Petition.

3. The learned Standing Counsel for the respondents would fairly submit that they are willing to pay the applicable differential amount of leave salary, gratuity and pension arrears in accordance with the 15th Wage Settlement dated 29.05.2025 together with interest at the rate of 6% per annum.

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

5. In view of the above submission of the learned Standing Counsel appearing on behalf of respondents, this Court deems it appropriate to direct the respondents 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.