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2026 Supreme(Online)(Mad) 46365

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mummineni Sudheer Kumar, J
G. Paul Expedit – Appellant
Versus
Metropolitan Transport Corporation – Respondent
Writ Petition



Advocates:
For the Appellants/Petitioners: R. Murugan
For the Respondents: K. Ramaiah, S.C. Herold Singh

Employees covered by a wage settlement are entitled to receive revised pay scales and consequential terminal benefit enhancements effective from the notified date, and any delay in the disbursement of such arrears warrants the payment of interest by the employer.

Headnote:The petitioner filed a writ petition under Art. 226 of the Constitution seeking a Writ of Mandamus to compel the transport corporation to revise his scale of pay based on the 15th Wage Settlement dated 29.05.2025, with effect from 01.09.2023, and to disburse resulting arrears and terminal benefit increments. The court relied on a coordinate bench precedent involving an identical factual matrix, determining that employees in service as of the effective date of the new wage settlement are entitled to the revised scale and consequential monetary benefits. The central issue was whether an employee is eligible for retrospective wage revision and adjusted terminal benefits following a new wage settlement. The Court reasoned that since the wage settlement provides for a scale revision for those in service, the respondent is obligated to implement this revision, and any delay in disbursing the consequential arrears necessitates the payment of interest at a fair rate to compensate the employee. The writ petition is allowed, with respondents directed to revise the petitioner's pay scale and disburse all consequential monetary benefits—including arrears—within five months, along with interest fixed at 6% per annum for delayed payments.

Table of Content
1. court acknowledges the nature of the writ petition concerning wage revision claims. (Para 1 , 2 , 3 , 4)
2. adoption of precedent for mandatory implementation of wage settlements and interest on arrears. (Para 5 , 6 , 7)

O R D E R

Mr.K.Ramaiah, learned Standing Counsel, takes notice for the first respondent and Mr.S.C.Herold Singh, learned Standing Counsel, takes notice for the second respondent.

2. With the consent of both sides, this Writ Petition is disposed of at the admission stage itself.

3. Heard the learned counsel for the petitioner, the learned Standing Counsel appearing for the first respondent and the learned Standing Counsel appearing for the second respondent.

4. This Writ Petition has been filed seeking the issuance of a Writ of Mandamus directing the first respondent to revise the petitioner’s scale of pay with effect from 01.09.2023 based on the new wage settlement dated 29.05.2025 (15th Wage Settlement) and consequently to pay the petitioner the difference/arrears of wages for the period from 01.09.2023 to 31.03.2024, as well as the differential amounts in the petitioner’s terminal benefits, namely gratuity, leave encashment and pension, after revising the same based on such re-fixed scale of pay applicable as on the date of the petitioner’s retirement, together with interest at 18% per annum, within such time as may be fixed by this Court.

5. Today, when the matter is taken up for consideration, the learned counsel on either side agree that the issue that arises for consideration in this Writ Petition is squarely covered by an order passed by a Coordinate Bench of this Court in W.P.(MD) No.3191 of 2026, dated 05.02.2026 [M.Priya vs. The Managing Director, Tamil Nadu State Transport Corporation, Madurai Region Corporate Office and others], in an identical factual situation and a copy of the said order is also placed before this Court.

6. In light of the consensus, this Court does not see any reason to adjudicate the case on hand on merits and is of the view that this Writ Petition can be disposed of in terms of the order dated 05.02.2026 passed by a Coordinate Bench of this Court in W.P.(MD) No.3191 of 2026, wherein the learned Single Judge has held as follows:

“7.The petitioner’s husband was in service as a permanent employee of the Transport Corporation as on 01.09.2023 and therefore, he is entitled for the benefits as per this 15th wage settlement. The petitioner’s husband died, while he was in service on 27.12.2023 and he was paid with the retirement benefits as per the earlier wage settlement. The 15th wage settlement provides revision of scale of pay by 6% on the basic pay, for those who were in service as on 01.09.2023, however monetary benefits with effect from 01.09.2024. Therefore, the petitioner’s husband is entitled for the monetary benefits, pursuant to the revision of scale of pay from 01.09.2024 and the consequential retirement benefits.

8.Admittedly, such a revision has not been made till date. Any belated settlement of monetary benefits due to an employee needs to be settled with interest at the rate of 6% per annum. Therefore, this writ petition stands allowed with a direction to the respondent Transport Corporation to revise the pay scale of the petitioner’s husband with effect from 01.09.2023 and provide the monetary benefits with effect from 01.09.2024, as per the 15th wage settlement dated 29.05.2025 and settle the benefits along with arrears to the petitioner within a period of six months from the date of receipt of a copy of this order, with interest @ 6% per annum. The interest shall be calculated for the period beyond Clause 37(b) of the settlement dated 29.05.2025 till the date of actual payment. There shall be no order as to costs.”

7. In light of the above, this Writ Petition is allowed, directing the respondents to revise the pay scale of the petitioner with effect from 01.09.2023 and to provide all consequential monetary benefits with effect from 01.09.2024, as per the

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