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2026 Supreme(Online)(Mad) 42644

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.Dhandapani, J
Management Metropolitan Transport Corporation (Chennai) Limited – Appellant
Versus
Inspector of Labour / Assistant Commission of Labour – Respondent
Writ Petition No. 52913 of 2025



Advocates:
For the Appellants/Petitioners: A. Vinothraj
For the Respondents: T. M. Rajangam, G. Vijay Priyan, R. Krishnasamy

Employees who have accepted regularization through a 12(3) settlement under the Industrial Disputes Act, 1947, are precluded from subsequently raising belated claims for retrospective permanent status under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, after an inordinate delay.

Headnote:The case involves a challenge by an employer against an order passed by the labor authority granting retrospective permanent status to a workman. The petitioner contended that the employee, having been regularized pursuant to a 12(3) settlement under the Industrial Disputes Act, 1947, could not belatedly claim permanent status from an anterior date after 17 years. The court observed that the respondent had accepted the terms of the settlement and served for over a decade, making the current claim stale. The primary issues were whether an employee, having accepted regularization based on a settlement, can subsequently initiate proceedings for retrospective permanency, and whether such a belated claim is maintainable under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981. The court reasoned that employees cannot turn back on a settlement and wake up after 17 years to claim rights that were already addressed by being placed on the permanent rolls of the corporation. The writ petition is allowed, and the impugned order passed by the first respondent is set aside.

Table of Content
1. factual background: initial temporary engagement, subsequent regularization via settlement, and late claim for permanency. (Para 1 , 2 , 4)
2. ratio: stale claims for retrospective permanency are unsustainable after accepting settlement-based regularization. (Para 3 , 7)

ORDER

This petition has been filed challenging the order dated 16.05.2023 passed in Case No.C/1169 /2021 by the 1st respondent herein and seeking to quash the same as being illegal, arbitrary and without jurisdiction.

2.The case of the petitioner is that the second respondent was initially engaged on a temporary basis as a conductor on a stop-gap arrangement and was subsequently appointed as a daily wage conductor on 01.02.2000. The second respondent was 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 17 years, the second respondent filed a claim petition under the Conferment of Permanent Status Act in Case No.C/1169 /2021 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 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 second respondent would submit that, admittedly the second respondent had entered into service as a temporary driver in the year 2000, and that his services were regularised only in the year 2005. As per Conferment of Permanent Status Act, the second 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 second 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 year 2006.

26. It is also not disputed by the respondents that they were working as temporary/casual drivers and conductors in the Corporation. The continuity of service of the said respondents from the time of their entry in the post on temporary basis is not spelt

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