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2026 Supreme(Online)(Mad) 99973


IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25-09-2026 CORAM THE HON'BLE MR JUSTICE S. M. SUBRAMANIAM AND THE HON'BLE MR.JUSTICE KRISHNASWAMY GOVINDARAJAN WA No. 437 of 2023 AND WA NO. 439 OF 2023,WA NO. 447 OF 2023, WA NO. 448 OF 2023,WA NO. 440 OF 2023, WA NO. 445 OF 2023,WA NO. 441 OF 2023, WP NO. 12751 OF 2021,WA NO. 1976 OF 2023,WA NO. 1965 OF
2023,WA NO. 1967 OF 2023,WA NO. 1969 OF 2023 CNR: {HCMA010105022023}
WA No. 437 of 2023:
The Additional Chief Secretary To Government Tamil Nadu, Transport Department, Secretariat, Chennai 9 ..Appellant(s)
Vs
1. R.Sankaran
2. S.Balasubramanian
3. M.Ramamurthy 4. V.Thiyagarajan
5. M.Vithiyanandam
6. L.Mariyadoss
7. S.Ramalingam
8. R.Pandiyan 9. R.Baskaran
10.V.Velusamy 11.V.Elangovan
12.S.Balakrishnan
13.R.Devarajan
14.A. Leela
15.R. Vasantha 16.V.Sivakumar
17.R.Venugopalan
18.K.Dayalan
19.P.Muthunarayanan
20.S.Umapathy
21.V.Rathinasamy
22.K.N.Karunyan 23.K.Muthusamy
24.R.Padmanabhan
25.P.Gopal
26.N.Palanisamy
27.C.R.Palanisamy 28.R.Jagannathan
29.R.Thangamudiraja
30.K.Sethuraman
31.K.J. Vijayakumar 32.R.Santhamoorthi
33.M.Vengitusamy
34.M.P.Jaganathan
35.K.Dorairaj
36.K.Ponnuswamy
37.V.Arumugam
38.P.N.Jaganathan
39.K.Arumugam 40.A.Manoharan 41.P.Sadasivam
42.P.Shanmugavelu
43.S.Selvaraj
44.S.Somasundaram
45.P.Masilamani
46.T.T.Devaraji
47.The Administrator, Tamil Nadu State Transport Corporation Employees Pension Fund Trust, Pallavan Salai, Chennai 600 002.
48.The Managing Director, Tamil Nadu State Transport Corporation (Villupuram ) Ltd., 3/137, Salamedu, Villupuram 605 602.
49.The Managing Director, Metropolitan Transport Corporation (Chennai ) Ltd., Anna Salai, Chennai 600 002.
50.The Managing Director, State Express Transport Corporation (Tamil Nadu) Ltd., Pallavan, Salai,600 002.
51.The Managing Director, Tamil Nadu state Transport Corporation (Kumbakonam) Ltd., 46, Railway Station New Road, Kumbakonam. 52.The Managing Director, Tamil Nadu State Transport Corporation (Madurai) Ltd., Bye Pass Road, Madurai 625 010.
53.The Managing Director, Tamil Nadu State Transport Corporation (Salem) Ltd., 12, Ramakrishna Road, Salem 636 007.
54.The Managing Director, Tamil Nadu State Transport Corporation (Coimbatore) Ltd., 37, Mettupalayam Road, Coimbatore 641 043.
55.The Managing Director, Tamil Nadu State Transport Corporation (Thirunelvelli) Ltd., Vannarappettai, TVDM Road, Thirunelvelli.
..Respondent(s)
Writ Appeal filed under Clause 15 of the Letters Patent to set aside the order dated 22.04.2022 and made in WP.No. 35085 of 2019.
For Appellant(s): Mrs.Y.Kavitha Additional Government Pleader For Respondent(s): Mr.S.T.Varadarajalu For R 1 To 46 Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For R 47 Mr.M.Aswin For R 48 And 53 Mr.C.Gowthamraj For R 49, 52 & 55 WA.No.439 of 2023:
For Appellant(s): Mrs.Y.Kavitha Additional Government Pleader For Respondent(s): Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For R 3 Mr.M.Aswin For R 2 WA.No.440 of 2023:
For Appellant(s): Mrs.Y.Kavitha Additional Government Pleader For Respondent(s): Mr.R.Krishnaswamy for R1&2 Mr.C.Gauthama Raj for R3&6 Mr.M.Aswin For R 5 & 7 Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For R10 WA.No.441 of 2023:
For Appellant(s): Mrs.Y.Kavitha Additional Government Pleader For Respondent(s): Mr.D.Soundar Raj for R1-8, 10&11 Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For R13 WA.Nos.445 & 448 of 2023:
For Appellant(s): Mrs.Y.Kavitha Additional Government Pleader For Respondent(s): Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For R3 WA.No.447 of 2023:
For Appellant(s): Mrs.Y.Kavitha Additional Government Pleader For Respondent(s): Mr.D.Soundar Raj for R1&2 Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For R3 WA.No.1965 of 2023:
For Appellant(s): Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For Respondent(s): Mrs.Y.Kavitha Additional Government Pleader for R47 Mr.C.Gauthama Raj for R49,52&55 Mr.M.Aswin for R48&53 WA.No.1967 of 2023:
For Appellant(s): Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For Respondent(s): Mr.R.Krishnaswamy for R1&2 Mrs.Y.Kavitha Additional Government Pleader for R3 Mr.C.Gauthamaraj for R4 Mr.C.Senapathi for R10 WA.No.1969 of 2023:
For Appellant(s): Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For Respondent(s): Mr.D.Sounder Raj for R2-8, 10&11 Mrs.Y.Kavitha Additional Government Pleader for R12-14 WA.No.1976 of 2023:
For Appellant(s): Mrs.Dakshayani Reddy, Senior Counsel For Mr.C.S.K.Sathish For Respondent(s): Mr.D.Sounder Raj for R1 Mrs.Y.Kavitha Additional Government Pleader for R3-5 WP.No.12751 of 2021:
For Petitioner(s): Mr.M.Dinesh For Respondent(s): Mrs.Y.Kavitha Additional Government Pleader for R1 Mrs.Dakshayani Reddy, Senior Counsel for Mr.C.S.K.Sathish for R2 Mr.M.Aswin for R5&8 Mr.C.Senapathi for R6 Mr.C.Gauthama Raj for R10

COMMON JUDGMENT

(Judgment of the Court was delivered by S.M.Subramaniam J.)

WA.Nos. 437, 439, 440, 441, 445, 447 and 448 of 2023 have been instituted by Transport Department, Government of Tamil Nadu. WA.Nos.1965, 1967, 1969 and 1976 of 2023 have been instituted by the Tamil Nadu State Transport Corporation.The present batch of Intra Court Appeals have been instituted under Clause-15 of the Letters Patent, challenging the common order dated 22.04.2022 passed by learned Single Judge in a batch of Writ Petitions.

2. Writ Petitions filed by Retired Officers / Pensioners of Transport Corporations were allowed, resulting in filing of present Writ Appeals. Pensioners filed Writ Petitions to implement the benefits of G.O.Ms.No.134, Transport (D) Department dated 09.04.2018, G.O.Ms.No.313, Finance (Pay Cell) Department dated 25.10.2017 and G.O.Ms.No.142, Transport (E) Department dated 26.09.2019, by adopting multiple factor of 2.57 as granted in the Government Orders to enhance the pay scale and recalculate terminal benefits and pension.

3. FACTS IN BRIEF:

i) Pensioners in the present Writ Appeals served as employees of Transport Corporations. By Government Order dated 29.09.2000, Tamil Nadu State Transport Undertakings were excluded from the purview of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (in short ‘the Act, 1952’) with effect from 01.09.1998 and subsequently, in lieu of the Employees Pension Scheme, 1955, a separate independent pension scheme, viz., Tamil Nadu State Transport Corporation Employees’ Pension Scheme (hereinafter referred to as ‘the Pension Scheme) was introduced and implemented with effect from 01.09.1998.

ii) Employees, who opted for Pension Scheme were granted benefits under the provisions of Scheme. Tamil Nadu State Transport Corporation Employees’ Pension Fund Rules were notified and Rule 2(w) of Rules defines that “Pensionary benefits” shall mean the pension or service gratuity and family pension and do not include Death-cum- Retirement Gratuity, applicable to the employees of Government of Tamil Nadu.

iii) Thus, Pension Rules were exclusively framed for the benefit of Retired Employees of Transport Corporation across State of Tamil Nadu and Rules itself list out eligible Transport Corporations under Rule 2(f), which defines that “Companies” shall mean the following State Transport Undertakings under the control of Government of Tamil Nadu:

MTC (Chennai Division-I) Ltd., Chennai

MTC (Chennai Division-II) Ltd., Chennai

SETC (Tamil Nadu Division-I) Ltd., Chennai

SETC (Tamil Nadu Division-II) Ltd., Chennai

TNSTC (Villupuram Division-I) Ltd., Villupuram

TNSTC (Villupuram Division-II) Ltd., Vellore

TNSTC (Villupuram Division-III) Ltd. Kancheepuram

TNSTC (Salem Division-I) Ltd., Salem

TNSTC (Salem Division-II) Ltd., Dharmapuri

TNSTC (Coimbatore Division-I) Ltd., Coimbatore

TNSTC (Coimbatore Division-II) Ltd., Erode

TNSTC (Kumbakonam Division-I) Ltd., Kumbakonam

TNSTC (Kumbakonam Division-II) Ltd., Trichy

TNSTC (Kumbakonam Division-III) Ltd., Karaikudi

TNSTC (Kumbakonam Division-IV) Ltd., Pudukkottai

TNSTC (Madurai Division-I) Ltd., Madurai

TNSTC (Madurai Division-II) Ltd., Tirunelveli

TNSTC (Madurai Division-III) Ltd., Nagercoil

TNSTC (Madurai Division-IV) Ltd., Dindigul

TNSTC (Madurai Division-V) Ltd., Virudhunagar

iv) Therefore, Transport Corporations are registered under the Companies Act and for the welfare of Retired Employees of Transport Corporations. A separate Pension Scheme was notified, which came into force with effect from 01.09.1998 and Scheme was extended to retired employees, who opted for pension scheme and in respect of other employees, terminal benefits were settled under the provisions of Provident Fund Act. Therefore, pensioners of Companies owned by State cannot be equated with Government Departments.

v) Legal position is that identity of the Government company remains distinct from the Government. The Government company is not identified with the Union but has been placed under a special system of

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