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2026 Supreme(Online)(Mad) 33799

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, M.JOTHIRAMAN, JJ
The General Manager, Tamil Nadu State Transport Corporation Madurai Ltd. – Appellant
Versus
The Assistant Commissioner of Labour, (Prohibition), Virudhunagar – Respondent
W.A.(MD)No.348 of 2026 | C.M.P.(MD)No.3232 of 2026 | W.P.(MD)No.22646 of 2022



Advocates:
For Appellants: Mr.S.Gladson Michael Rajadurai
For Respondents: Mr.A.Kannan (R1), Additional Government Pleader, Mr.R.Praveena (R2)

Statutory right to permanency after 480 days overrides settlements under Industrial Disputes Act.

Headnote:Section 3 of the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act mandates that workmen completing 480 days of continuous service in 24 calendar months shall be made permanent, overriding any prior settlements under Section 12(3) of the Industrial Disputes Act. The workman, appointed as Reserve Crew Driver, completed the requisite service period and applied for permanency, opposed by management citing a settlement requiring intermediate daily wage appointment and an accident. The authority and Single Judge upheld permanency from 25.12.2016, finding no legal impediment from the settlement. The court framed whether a Section 12(3) settlement bars conferment of permanent status despite 480 days' service. The ratio decidendi affirms that the explanation to Section 3 explicitly includes settlements as overridden 'law', rendering them ineffective against statutory permanency rights. The writ appeal is dismissed, upholding the order conferring permanent status; no order as to costs.

Table of Content
1. workman seeks permanency after 480 days despite settlement. (Para 1 , 2)
2. section 3 overrides settlements for permanency. (Para 4 , 5 , 6)
3. appeal dismissed, upholding permanency order. (Para 7)

Challenging the order passed by the learned Single Judge in W.P.(MD)No.22646 of 2022, the present writ appeal is filed.

2.The respondent was appointed as Reserve Crew Driver in the petitioner Corporation on 05.08.2015. He has completed 480 days of service within a period of 24 calender months. Therefore, he filed an application before the Assistant Commissioner of Labour on 01.02.2019 seeking conferment of permanent status. The said application has been objected by the appellant Management on the ground that there is a settlement under Section 12(3) of the Industrial Dispute Act between the writ petitioner and the appellant Management to the effect that as and when the reserve drivers complete 480 days, they have to be appointed as a daily wage driver. The further contention of the appellant Management is that without appointing the Reserve Drivers as a daily wager, they cannot be conferred with permanent status or absorbed as a regular employee. That apart, the workman involved in an accident on 04.06.2018 and therefore, the workman is not entitled to seek any absorption as regular employee. However, the Assistant Commissioner of Labour having arrived at a finding that the workman has completed 480 days of service in 24 calender months, held that the workman is entitled to be made as permanent from 25.12.2016 onwards. The appellant management aggrieved by the said order, filed the writ petition.

3.The Writ Court having held that any settlement under Section 12(3) of theIndustrial Disputes Actwould not be a legal impediment for the authority to confer permanent status upon the workman, dismissed the writ petition filed by the Management. Challenging the same, the present writ appeal is filed.

4.Heard the submissions made by the learned counsel appearing on either side and perused the entire materials placed on record.

5. Section 3 of the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act provides that notwithstanding anything contained in any law for the time being in force every workman who is in continuous service for a period of four hundred and eighty days in a period of twenty four calendar months in an industrial establishment shall be made permanent. The explanation makes it very clear that for the purpose of this section, ‘law’ includes any award, agreement, settlement, instrument or contract of service whether made before or after the commencement of this Act.

6.In view of the above said provision, even there was any settlement as contended by the learned counsel for the appellant, that will not have any effect. This has been clarified in the above said provision.

7.Admittedly, the second respondent has completed 480 days of service in 24 calender months and hence, he filed an application before the Commissioner seeking permanent status. The learned Single Judge having considered all these aspects, has dismissed the writ petition.

8.We do not find any reason to interfere with the said order.

Accordingly, this writ appeal is dismissed. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.

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