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2026 Supreme(Online)(Mad) 46436

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mummineni Sudheer Kumar, J
S. Amutha – Appellant
Versus
Management of Tamil Nadu State Transport Corporation (Kumbakonam) Ltd. – Respondent
W.P.(MD) No. 9214 of 2026



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

The legal heirs of an employee in service on the designated cutoff date under a wage settlement are entitled to obtain a revision of pay scale and the corresponding arrears of terminal benefits.

Headnote:The petitioner filed this writ petition under Art. 226 of the Constitution of India seeking a Writ of Mandamus to revise the pay scale of her deceased husband, a former employee of the respondent corporation, based on a wage settlement dated 29.05.2025. The petitioner requested terminal benefit arrears along with 18% interest. The Court observed the facts are identical to a decision of a Coordinate Bench and deemed the matter squarely covered. The primary issue concerns whether the legal heirs of a deceased employee are entitled to revised terminal benefits under a new wage settlement. The Court relied on the ratio of a prior judgment, holding that employees in service on the relevant cutoff date are eligible for pay scale revision and consequential monetary benefits even if settled post-death. It reasoned that since the revision was stipulated for employees in service, the estate of the deceased is entitled to the resulting arrears. The Court allowed the writ petition, directing the respondent to revise the pay scale and settle consequential monetary benefits within five months from receipt of the order, subject to 6% interest per annum for the delayed payment.

Table of Content
1. petition for mandamus seeking revision of terminal benefits based on wage settlement. (Para 1 , 2 , 3 , 4)
2. adjudication based on precedent regarding employee eligibility for wage settlement revisions. (Para 5 , 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 deceased husband of the petitioner, namely late R.Saminathan (Staff No. 02DR4006), with effect from 01.09.2023 till the date of his death, based on the wage settlement dated 29.05.2025 and consequently to pay to the petitioner the difference/arrears of 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 death, 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 deceased husband of the petitioner, namely late R.Saminathan (Staff No. 02DR4006) 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

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