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2026 Supreme(Online)(Mad) 42643

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.Dhandapani, J
Metropolitan Transport Corporation – Appellant
Versus
Assistant Commissioner of Labour – Respondent
W.P No.443 of 2025|W.P No.444 of 2025|W.P No.445 of 2025



Advocates:
For the Appellants/Petitioners: Gauthama Raj C
For the Respondents: T.Rajangam, G.Vijay Priyan

Workmen who have accepted the benefits of a settled regularization agreement and delayed seeking further retrospective permanent status for over a decade are precluded from reopening such claims, as their inaction signifies an absence of bona fides and renders the claim stale.

Headnote:The case involves a challenge by an employer against orders passed by labour authorities granting retrospective permanent status to workmen who had previously been regularized under a collective settlement. The main issue was whether employees, having accepted the benefits of a formal settlement, could, after a significant lapse of time, claim retrospective permanency under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981. The Court framed the central question as whether a workman, having slept on their rights for over a decade and a half after regularization, could reopen claims for retrospective permanent status. The ratio decidendi established that once employees have voluntarily accepted the terms of a settlement and served as permanent employees for a long duration, they are precluded from challenging their prior status or seeking retroactive benefits, as such claims are stale and lack bona fides.

Result: The writ petitions were allowed and the impugned orders of the labour authority were set aside.

Table of Content
1. initiation of writ proceedings by management against labor authority orders regarding permanency. (Para 1 , 2)
2. the principle of laches and the binding nature of industrial settlements regarding worker status. (Para 3 , 4 , 5)
3. court intervention to set aside orders granting retrospective permanency to employees due to unjustified delay. (Para 7 , 8)

ORDER

These three petitions have been filed challenging the impugned orders dated 11.03.2024 passed by the 1st respondent herein, and to quash the same as being illegal, arbitrary and without jurisdiction.

2.The case of the petitioner in respective writ petitions is that the second respondent therein were initially engaged on a temporary basis as Reserve Crew Drivers and Reserve Crew Conductor on a stop-gap arrangement and were subsequently appointed as daily wage drivers and conductor in the year 1999. They were later granted regularisation with effect from 01.09.2005 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 22 years, the second respondents filed claim petitions under the Conferment Permanent Status Act, in Case Nos.A/128, A/130 and A126 of 2023 before the first respondent seeking regularisation. However, the first 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 petitions have 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 second respondent would submit that, admittedly, the second respondents in the respective writ petitions had entered service as temporary drivers and conductor in the year 1999, and that their services were regularised only in the year 2005. As per Conferment of Permanent Status Act, the second respondents were 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 second respondents filed petitions 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 year 2006.

26. It is also not disputed by the respondents th

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