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2026 Supreme(Online)(Mad) 46386

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mummineni Sudheer Kumar, J
A. Sengaan – Appellant
Versus
Management of Tamil Nadu State Transport Corporation (Kumbakonam) Ltd. – Respondent
Writ Petition



Advocates:
For the Appellants/Petitioners: S. Arunachalam
For the Respondents: K. Ramaiah

Employees covered under a wage settlement are entitled to pay revisions and consequential terminal benefits from the date stipulated in the agreement, with interest payable on any belated settlement of these arrears.

Headnote:The petitioner filed a writ petition seeking a Writ of Mandamus to compel the respondent to revise the scale of pay effective from 01.09.2023, based on the wage settlement dated 29.05.2025, and to pay the corresponding arrears and terminal benefits with 18% interest. The court noted that the petitioner was an employee of the transport corporation entitled to the benefits of the 15th wage settlement. Following the precedent established in a coordinate bench order, the court observed that employees in service as of 01.09.2023 are entitled to the revision of pay scale and consequential financial benefits. The core issue was whether the petitioner is entitled to pay revision and arrears based on the 15th wage settlement. The ratio decidendi rests on the principle that the terms of a wage settlement are binding on the employer, and entitlement to revised pay scales arises from the cutoff date mentioned in the settlement, with interest being payable on belated payments of statutory and contractual benefits. The writ petition was allowed, and the respondent was directed to revise the petitioner's pay scale and disburse all consequential terminal benefits within a period of five months, with 6% interest on delayed amounts.

Table of Content
1. procedural compliance and consent for disposal of writ petition based on precedent. (Para 1 , 2 , 3 , 4 , 5)
2. entitlement to wage revision benefits and interest on delayed payments under wage settlements. (Para 6 , 7)

O R D E R

Mr.K.Ramaiah, learned Standing Counsel, takes notice for the 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 and the learned Standing Counsel appearing for the respondent.

4. This Writ Petition has been filed seeking issuance of a Writ of Mandamus directing the respondent to revise/re-fix the scale of pay of the petitioner with effect from 01.09.2023 till the date of his retirement, based on the wage settlement dated 29.05.2025 and consequently to pay the difference/arrears of wages and terminal benefits, namely gratuity and leave encashment, by revising the same on the basis of such re-fixed scale of pay as applicable in the month of his retirement, together with interest at 18% per annum, within a time frame 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 15th Wage Settlement dated 29.05.2025 and to settle all other benefits in terms of the said Settlement and pay arrears thereon to the petitioner within a period of five months from the date of receipt of a copy of this order, together with interest at the rate of 6% per annum for the b

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