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2026 Supreme(Online)(Mad) 42636

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.Dhandapani, J
Management of Metropolitan Transport Corporation – Appellant
Versus
Chandrasekaran – Respondent
Writ Petition No.24714 of 2024



Advocates:
For the Appellants/Petitioners: C.Gauthamaraj
For the Respondents: G.Vijay Priyan, R.Krishnaswamy, R.Murthi

Employees who have accepted regularization under a settlement agreement cannot, after a significant lapse of time, claim retrospective permanent status anterior to the date of settlement as such claims are deemed stale.

Headnote:The petitioner challenged an order passed by the labour authority granting retrospective permanent status to the first respondent, who had been regularized in 2006 following a settlement under the Industrial Disputes Act. The court analyzed whether employees accepting regularization through a tripartite settlement could subsequently claim permanent status from an earlier date after a significant delay of approximately 17 years. The core issue addressed was whether, after accepting the benefits of a settlement, an employee can claim permanency from an anterior date after a long lapse of time. Relying on established precedents, the court held that once an employee accepts the terms of a settlement and gains permanent status, they cannot turn around years later to seek retrospective benefits. The court emphasized that while the relevant Act does not prescribe a strict limitation period, long and unexplained delays in seeking relief cast doubts on the bona fides of the claimant. The writ petition was allowed, and the impugned order of the labor authority was set aside.

Table of Content
1. summary of petitioner's contention regarding the illegality of the impugned order for retrospective regularization. (Para 1 , 2)
2. conflicting arguments between the management's reliance on settlement agreements and the worker's plea for statutory permanency. (Para 3 , 4)
3. court observed that settling for permanency years ago precludes a claimant from seeking retrospective benefits after an unexplained delay. (Para 5)
4. the final decision to set aside the order due to the lack of bona fides and excessive delay in filing the claim. (Para 7 , 8)

ORDER

This petition has been filed challenging the order dated 01.08.2022 passed in Case No.4026 of 2019 by the 2nd respondent herein and to quash the same as being illegal, arbitrary and without jurisdiction.

2.The case of the petitioner is that the first respondent was initially engaged on a temporary basis as a Reserve Crew Driver on a stop-gap arrangement and was subsequently appointed as a daily wage driver on 24.12.2000. The first respondent was later granted regularisation with effect from 01.07.2006 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 18 years, the first respondent filed a claim petition under Conferment Permanent Status Act, in Case No.4026 of 2019 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 petition has 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 respondent had entered into service as a temporary driver in the year 2000, and that his services were regularised only in the year 2006. As per Conferment of Permanent Status Act, the first respondent was 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 respondent filed a petition 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 in the service in the

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