STATE SECRETARY vs THE MANAGING DIRECTOR

WP No. 26579 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 29-10-2026
CORAM
THE HON'BLE MR JUSTICE C. SARAVANAN
WP No. 26579 of 2025
and W.M.P.Nos.29874, 29875 & 29877 of 2025
CNR: {HCMA011552592025}
State Secretary
Tamil Nadu Tasmac Virpanaiyaalargal Nala
Sangam, Regn No. Tntvrjcl2chetu -50-21-00006,
Head Office, 3/14-bajana Koil Street,
Chembarambakkam, Chennai 600 123
..Petitioner(s)
Vs
The Managing Director
Tamil Nadu State Marketing Corporaiton (tasmac)
Floor No 4 Thalamuthu Natarajan Maaligai,
Gandhi Irwin Road, Egmore Chennai 600 008
..Respondent(s)
PRAYER : Writ Petition filed under Article 226 of The Constitution of India
praying for the issuance of a Writ of Certiorarified Mandamus, Calling for the
records in the Impugned circular RC No R2 / 94579 / 2025 dated 14.07.2025 in
as much as it deprives a part of the wage increase i.e., Rs1000/- with effect from
01.04.2025 to 451 shop personnel and to direct the respondent to pay the above
451 shop personnel Rs.2000/- per month with effect from 01.04.2025 without
any deduction / reduction.
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WP No. 26579 of 2025
For Petitioner(s): Mr.S.KUMARASWAMY
For Respondent(s): MR.K.Moorthy, Standing counsel for (TASMAC)
*
ORDER
The petitioner sangam, registered under the provisions of the Trade
Unions Act, 1926, has filed this writ petition challenging the impugned circular
dated 14.07.2025 issued by the respondent. By the said circular, a decision was
taken to increase the salaries/wages of all TASMAC employees by Rs.2,000/-,
except for 451 employees who were found to have been involved in Maximum
Retail Price (MRP) violations exceeding Rs.10/- in its retail outlets.
2. The impugned circular was issued in light of an announcement made
on the floor of the Assembly by the then Minister for Electricity, Prohibition
and Excise, who had decided to uniformly increase salaries/wages by
Rs.2,000/-.
3. It is further submitted that the identification of 451
personnel/employees/workers as having been involved in MRP violations
exceeding Rs. 10/-, and 4,016 employees/workers/personnel in MRP violations
below Rs. 10/-, is itself arbitrary and therefore liable to be interfered with. Apart
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WP No. 26579 of 2025
from that, it is submitted that even the Rs. 1,000/- hike, which was to take effect
on 01.04.2025, was withheld and subsequently decided to be paid only via
another circular dated 13.07.2026 during the pendency of the present writ
petition. It is submitted that even the policy decision in the circular dated
13.07.2026 has been implemented only with effect from 01.04.2026.
4. Learned counsel for the respondent submits that the impugned circular
issued by the respondent is based on reports received from the Senior Regional
Managers. These reports revealed that approximately 4,467 shop personnel
were involved in MRP violations during 2024 and 2025. Out of these, 4,016
shop personnel were found to be involved in MRP violations of amounts below
Rs. 10/-, while 451 were involved in violations of Rs. 10/- and above.
5. In this background, a uniform decision was taken to enhance the
consolidated pay of the shop personnel as follows:-
(i) those who were not falling under the category of the 451 violators
were to receive an increase of Rs. 2,000/-, in their salary; and
(ii) those 451 shop personnel involved in MRP violations in excess of
Rs.10/- were to receive an increase of only Rs. 1,000/- in the monthly salary.
6. It is submitted that the higher incentives cannot be given to those who
have indulged in higher MRP violations, thereby bringing disrepute to
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WP No. 26579 of 2025
TASMAC. It is submitted, a conscious decision was taken to differentiate
between employees who were not involved in MRP violations, those involved
in violations below Rs. 10/-, and those involved in violations of Rs. 10/- and
above.
7. It is further submitted that the policy decision reflected in the
impugned circular is in any event subject to detailed administrative instructions
and eligibility criteria, with an express objective of prohibiting misconduct on
the part of the employees. Furthermore, the TASMAC Board, in its 2018th
meeting held on 24.04.2025, authorized the Managing Director of TASMAC to
implement this decision.
8. It is further submitted that in the impugned circular there is a
reasonable classification and serves the legitimate objective of discouraging
malpractices, which are detrimental to the image of the Respondent TASMAC
among the consuming public at large. Finally, it is submitted that the principles
of natural justice have not been violated. The action taken is merely an interim
measure, without prejudice to any further disciplinary proceedings, and the 451
affected personnel will be afforded an opportunity of being heard in accordance
with the proposed disciplinary action.
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WP No. 26579 of 2025
9. I have considered the arguments advanced by the learned counsel for
the petitioner and the learned counsel for the respondent. There cannot be any
discrimination in the wage hike of the personnel of the respondent, TASMAC,
some of whom are aligned with the petitioner sangam. Even if all 451 shop
personnel are not members of the petitioner's association, it cannot be said that
the petitioner lacks the legitimacy to represent the interests of those among the
451 employees who are impacted by the decision in the impugned circular of
the respondent. Therefore, the 1st objection of the Respondent is over ruled
insofar as writ petition being filed by the petitioner.
10. The wage hike must be uniform. In case any employee is found
violating the prescribed norms, appropriate disciplinary proceedings can be
initiated in accordance with the applicable rules and the terms and conditions of
their employment. Under these circumstances, I am of the view that the
discrimination in the impugned circular, introduced without prior disciplinary
proceedings, cannot be countenanced.
11. Since the wage revision must be uniform, recovery of part of wage
can be only by way of punishment imposed in accordance with disciplinary
proceedings which may be initiated against these 451 shop personnel. However,
merely because the Senior Regional Managers have submitted a report that 451
shop personnel have violated MRP prescription, ipso facto , will not justify a
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WP No. 26579 of 2025
discrimination without corresponding imposition of a punishment in a
disciplinary proceedings in accordance with the applicable rules and the terms
and conditions of their employment.
12. At this stage, it is informed by the learned counsel for the respondent
that disciplinary proceedings were indeed initiated, and the concerned
employees have also been punished. This statement, made across the bar by the
learned counsel for the respondent, is recorded. Therefore, there cannot be a
double jeopardy or dual punishment—namely, a discriminatory wage revision
in addition to the punishment under the disciplinary mechanism applicable to
TASMAC employment.
13. Consequently, the impugned circular of the respondent is held to be
arbitrary and discriminatory insofar as the 451 employees of the respondent,
TASMAC, are concerned.
14. There shall be a direction to the respondent to revise the pay/wages of
these 451 shop personnel on par with other serving shop personnel of the
respondent, TASMAC. Consequently, there shall also be a direction to the
respondent to release the arrears with effect from 01.04.2026.
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WP No. 26579 of 2025
15. Therefore, this writ petition is dismissed on the above terms. There
shall be no order as to costs. Consequently, the connected writ miscellaneous
petitions are closed.
29-10-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
RNA
To
The Managing Director
Tamil Nadu State Marketing Corporaiton (tasmac)
Floor No 4 Thalamuthu Natarajan Maaligai,
Gandhi Irwin Road, Egmore Chennai 600 008
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WP No. 26579 of 2025
C.SARAVANAN, J.
RNA
WP No. 26579 of 2025
and W.M.P.Nos.29874, 29875 & 29877 of 2025
29-10-2026
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