IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03-06-2026
CORAM: THE HON'BLE MS. JUSTICE P.T. ASHA
WP No. 18729 of 2026
1. M.Rangaswamy
S/o.C.Munusamy,
NO. 16,Murugappa Street,
Muthusamy Nagar, Ward No.43,
Vedhachalam Nagar Ext,
Kanchipuram District -631 502.
2. S.Jayagopi,
S/o.N.Sundaresan,
No. 15/9, Jeevanandam Street,
Gandhi Nagar, Jothi Nagar Post,
Arakonam, Ranipet District -631 003.
3. Jayasankaran.C.S,
S/o.M.srinivasan,
Plot No. 2, 3rd Cross street,
Sakthi Nagar, Alapakkam Post,
Chengalpattu District -603 003.
4. S.Karunakaran,
S/o.Subburayan,
No. 111,Chinna Thoppu,
Thimmarajanpettai, Walajapuram TK,
Kanchipuram District -631 601.
..Petitioner(s)
Vs
The General manager
Tamil Nadu State Transport Corporation
(Villupuram)Ltd,
Kanchipuram Region,
Chennai -Bangalore Highways,
Karapetti, Kanchipuram -631 552.
..Respondent(s)
PRAYER: The Writ Petition is filed under Article 226 of the Constitution of India seeking issuance of a Writ of Mandamus directing the respondent to pay difference in leave Salary and difference in gratuity as per 15th Wage settlement dated 29.05.2025 with 10 percentage interest to the petitioners
For Petitioner(s): Mr. S.T.Varadarajulu
For Respondent(s): M/s.S.Pavitha, Standing Counsel
ORDER
The Writ Petition has been filed seeking issuance of a Writ of Mandamus directing the respondent to pay difference in leave salary and difference in gratuity as per 15th Wage settlement dated 29.05.2025 with 10% interest to the petitioners.
2. The petitioners contend that they joined the services of the respondent corporation as helpers and drivers on various dates. They rendered between 28 and 37 years of continuous service and retired upon attaining the age of superannuation between the years 2024 and 2025, holding the posts of Special Grade Drivers and Senior Tradesmen. The petitioners submit that a settlement was subsequently entered into under Section 12(3) of the Industrial Disputes Act, 1947, on 29.05.2025.
3. The petitioners further contend that they are entitled to the revision of pay and consequential terminal benefits under the said settlement. However, these benefits were not extended to them; instead, their terminal benefits were calculated and settled belatedly based on the pre-revised pay scale. Consequently, the petitioners submitted representations on 23.03.2026, 30.03.2026, and 07.04.2026, respectively, requesting the respondents to pay interest at the rate of 10% per annum for the delayed disbursement of terminal benefits, alongside the differential amounts in leave salary and gratuity due under the 12(3) settlement. As these representations have not been considered till date, the petitioners have approached this Court to espouse their case.
4. Heard the learned counsel on either side and perused the materials available on records.
5. The stand of the petitioners cannot be disputed. In view of the Settlement arrived at under Section 12(3) of the Industrial Disputes Act, 1947, which entitles the employees of the Transport Corporation to revision of pay including gratuity and encashment of leave, the respondents are directed (i) to pay interest at the rate of 6% per annum for the belated payment of admissible terminal benefits from the date of retirement till the date of actual disbursal of the terminal benefits of the petitioners, and (ii) to pay the eligible differential amount in leave salary and gratuity as per the said Settlement along with admissible interest. The amounts shall be paid to the petitioner within a period of eight (8) weeks from the date of receipt of a copy of this order.
6. With the above directions, the Writ Petition is disposed of. There shall be no order as to costs.
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