Retired Transport Driver In Service On Sep 1, 2023, To Get 15th Wage-Settlement Benefits: Madras HC

In brief

The question

Whether the petitioner, who was in service on 1 September 2023 but retired before the settlement was entered into, was entitled to the pay revision and monetary benefits under the 15th wage settlement.

The court held

The Court allowed the writ petition and directed the Transport Corporation to revise the petitioner’s pay scale with effect from 1 September 2023 and provide the corresponding benefits from 1 September 2024, in accordance with the 15th wage settlement, within six months of receiving the order.

It also directed

The Corporation must pay interest at 6% per annum for the period beyond the payment schedule under Clause 37(b) until actual payment.

No order as to costs was made.

01Facts

The petitioner, a Selection Grade Driver employed by the Tamil Nadu State Transport Corporation, retired on 31 May 2025.

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The 15th wage settlement under Section 12(3) of the Industrial Disputes Act, entered into on 29 May 2025, provided for a 6% pay revision for employees in service on 1 September 2023, notionally effective from that date, with monetary benefits from 1 September 2024.

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The petitioner was in service on the qualifying date and sought the settlement’s benefits, but the revision had not been made when he filed the writ petition.

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The Corporation submitted that arrears would be calculated and, if payable, disbursed in quarterly instalments under Clause 37(b).

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02Issues

i.Whether the petitioner, who was in service on 1 September 2023 but retired before the settlement was entered into, was entitled to the pay revision and monetary benefits under the 15th wage settlement.

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ii.Whether delayed payment of the benefits attracted interest, and, if so, at what rate and for what period.

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03Law Applied

Section 12(3) of the Industrial Disputes Act provides the basis for the wage settlement between the Corporation and the trade unions.

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Under the terms of the 15th wage settlement dated 29 May 2025, employees in service on 1 September 2023 were eligible for a 6% pay revision, with monetary benefits from 1 September 2024; Clause 37(b) provided for arrears to be paid in four quarterly instalments.

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The Court held that belated monetary benefits due to an employee should be paid with interest at 6% per annum.

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Provisions in the judgment · 1

Industrial Disputes Act, 1947 Section 12

04Reasoning

The petitioner met the settlement’s qualifying condition because he was a permanent employee in service on 1 September 2023.

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His later retirement, on 31 May 2025, did not exclude him from the pay revision or the monetary benefits specified by the settlement.

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As the revision had not been made, the Court directed the Corporation to implement it and pay the resulting benefits.

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It applied the 6% interest rate to the delayed payment, limiting the interest period to the period beyond that contemplated by Clause 37(b) and until actual payment.

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