Facts
The petitioner, a Conductor who retired as a Special Grade Conductor on 28 February 2025, was in service on 1 September 2023.
Source reference: p. 2A settlement under Section 12(3) of the Industrial Disputes Act, 1947, dated 29 May 2025, provided for a 6% pay revision notionally from 1 September 2023, with monetary benefits from 1 September 2024 and any arrears payable in four quarterly instalments.
Source reference: pp. 2–3After seeking the settlement benefits from the respondent Corporation, the petitioner filed this writ petition alleging that his pay had not been revised.
Source reference: pp. 2–3The Corporation submitted that it would calculate any amount due and pay it within a reasonable time.
Source reference: p. 3Issues
Whether an employee who retired after being in service on 1 September 2023 was entitled to the pay revision and monetary benefits under the 15th wage settlement.
Source reference: pp. 5–6Whether delayed payment of those benefits warranted interest, and, if so, at what rate and for what period.
Source reference: p. 5Law Applied
Section 12(3) of the Industrial Disputes Act, 1947, provides the statutory framework for the wage settlement at issue.
Source reference: p. 2Under Clause 1 of the 15th settlement dated 29 May 2025, employees in service on 1 September 2023 were entitled to a 6% revision of pay, notionally from that date, with monetary benefits from 1 September 2024.
Source reference: p. 5Clause 37(b) provides for arrears to be calculated from 1 September 2024 and paid in four quarterly instalments.
Source reference: p. 4The Court stated that belated monetary benefits due to an employee should be paid with interest at 6% per annum.
Source reference: p. 5Reasoning
The petitioner was a permanent employee in service on 1 September 2023, so the settlement applied to him notwithstanding his retirement before it was concluded.
Source reference: pp. 5–6The Court therefore held that he was entitled to have his pay revised from 1 September 2023 and to receive the resulting monetary benefits from 1 September 2024.
Source reference: pp. 5–6Because the revision had not been made, the Court directed payment with 6% interest, calculated for the period beyond the time allowed under Clause 37(b) until actual payment.
Source reference: p. 6Holding
The writ petition was allowed.
The Corporation was directed to revise the petitioner’s pay with effect from 1 September 2023 and provide the corresponding benefits from 1 September 2024, in accordance with the settlement, within six months of receiving a copy of the order.
Source reference: p. 6Interest at 6% per annum is payable for the period beyond that contemplated by Clause 37(b) until actual payment.
Source reference: p. 6No order as to costs was made.
Source reference: p. 6Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Linked provisions open on LawLens.
Industrial Disputes Act, 19471
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P.MathialaganvsThe Management of
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