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2026 Supreme(Online)(Mad) 45663

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. Asha, J
P. Vinayagam – Appellant
Versus
Managing Director Tamil Nadu State Transport Corporation Villupuram Ltd – Respondent
Writ Petition



Advocates:
For the Appellants/Petitioners: P.Manoj Kumar
For the Respondents: S.Pavithra

A retired employee is entitled to claim differential retirement benefit payments arising from a wage settlement that is granted retrospective effect, provided the right to such benefits accrued during the employment period covered by the agreement.

Headnote:The petitioner sought a writ of mandamus directing the respondents to compute and disburse the difference in retirement benefits including leave salary, gratuity, and pension arrears, following a wage settlement reached under S.12(3) of the Industrial Disputes Act, 1947, which was given retrospective effect. The court noted that the employee had retired prior to the settlement but was entitled to the benefits arising from the retrospective revisions mandated by the agreement. The core issue was whether a retired employee is entitled to differential monetary benefits resulting from a retrospective wage settlement. The court observed that as the respondents consented to the entitlement and the quantum of payment, the dispute regarding the disbursement of arrears was effectively resolved. The writ petition was disposed of with a direction to the respondents to calculate and release the differential retirement benefits along with interest at 6% per annum within a period of six weeks.

Table of Content
1. basis of the claim for retrospective wage revision after retirement. (Para 2)
2. court directive for payment of arrears following respondent's consent. (Para 3 , 4 , 5 , 6)

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 revise the petitioner’s wages with effect 01.09.2023 based on the 15th wage settlement dated 29.05.2025 and pay him the difference in Leave salary gratuity and Arrears of pension form 01.07.2024 to 31.07.2025 along with the interest at the rate of 12 percent per annum from the date of entitlement to till the date of actual disbursement within a time limit to be stipulated by this Court.

For Petitioner(s): Mr. P.Manoj Kumar For Respondent(s): Ms.S.Pavithra Standing Counsel for R1 and R2

Order

This Writ Petition has been filed seeking a direction to the respondents to revise the petitioner’s wages with effect from 01.09.2023 based on the 15thwage settlement dated 29.05.2025 and pay him the difference in leave salary gratuity and arrears of pension form 01.07.2024 to 31.07.2025 along with the interest at the rate of 12 percent per annum from the date of entitlement till the date of actual disbursement within a time limit to be stipulated by this Court.

2. The petitioner was appointed as a Conductor in the respondent-

Corporation and after rendering nearly 32 years of service he retired from service as Traffic Inspector at Regional Office, Vellore region on 30.06.2024, 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 20.03.2026 in this regard to the respondents, the same has not been considered. Hence, the petitioner has come up with the 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 15thWage 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.

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