Citation : 2023 Latest Caselaw 5614 Mad
Judgement Date : 7 June, 2023
W.A.No.1087 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07.06.2023
CORAM:
THE HONOURABLE MR.JUSTICE S.VAIDYANATHAN
AND
THE HONOURABLE MR.JUSTICE K.RAJASEKAR
W.A.No.1087 of 2023 and
C.M.P.No.11011 of 2023
The Management, Metropolitan
Transport Corporation, Anna Salai,
Chennai-600002. .. Appellant
-vs-
Thiru.I.Vellaisamy .. Respondent
Writ Appeal filed under Clause 15 of the Letters Patent, to set aside the order
dated 01.10.2020 made in W.P.No.22037 of 2018 and allow the Writ Appeal.
For Appellant : Mr.R.Ramanlaal
Additional Advocate General
for Mr.C.Gauthamaraj
For Respondent : Mr.Ajay Khose
****
1/6
https://www.mhc.tn.gov.in/judis
W.A.No.1087 of 2023
JUDGMENT
This Writ Appeal has been preferred against the order of the learned Single Judge
dated 01.10.2020 made in W.P.No.22037 of 2018, in dismissing the Writ Petition filed
by the Appellant herein, by confirming the order of the Authority dated 13.04.2018,
passed in Case No.5184 of 2013.
2. The Respondent/Workman,who was sponsored through employment exchange,
was engaged as a driver by the Appellant from 26.12.2008 onwards and was given
appointment as daily wage employee on 21.11.2013 on temporary basis. In furtherance
to a settlement dated 31.08.2005 entered into between the Appellant and its Trade
Union representing its employees under Section 12 (3) of the Industrial Disputes Act,
1947(in short "the I.D.Act"), the Appellant confirmed the services of the
Respondent/Workman on 01.05.2016 for having completed 240 days of employment.
3.While so, the Respondent/Workman made an application under Section 3(1) of
the Tamil Nadu Industrial Establishment (Conferment of Permanent Status to
Workmen) Act, 1981 (in short " the Permanent Status Act") before the Labour Inspector
-II, Nanadanam, Chennai, claiming benefit of conferment of permanent status on having
completed, continuous service for a period of 480 days in 24 calendar months in the
https://www.mhc.tn.gov.in/judis W.A.No.1087 of 2023
Industrial Establishment of the Appellant. The said authority, vide order dated
13.04.2018, granted permanent status to the Workman with effect from 10.09.2011.
Being aggrieved, the Appellant/Management filed a Writ Petition before this Court in
W.P. No.22037 of 2018. The learned Single Judge, vide order dated 01.10.2020,
dismissed the said Writ Petition, by confirming the order dated 10.09.2011 passed by
the authority. The said order is under challenge in this Intra Court Appeal.
4. Mr.R.Ramanlaal, learned Additional Advocate General appearing for the
Appellant submitted that there was a settlement entered into under Section 12(3) of the
I.D.Act, between the Employees and the Union on 31.08.2005. He further submitted
that though the services of the Workman were confirmed on 01.05.2016, after having
completed 240 days of continuous service, as the said settlement is of the year 2005,
the same would be applicable only to those employees who have joined services prior to
the date of settlement.
5. In the case on hand, the Respondent/Workman joined the services of the
Appellant/Management on 26.12.2008. Though, normally, settlement entered into
between the parties will bind all the persons, be it present or past depending upon the
clause contained in the settlement, the settlement which is of the year 2005 mentioned
https://www.mhc.tn.gov.in/judis W.A.No.1087 of 2023
supra restricts confirmation of permanent status to the employees who have completed
240 of days service and those who have joined the service prior to the date of
settlement. Hence, the benefits of the said settlement are not applicable to the case of
the Respondent/Workman. At this juncture, it is worth pointing out that no settlement
or Government Order can run counter to the provisions of the Permanent Status Act.
The authority, taking note of the provisions of the Permanent Status Act, has granted
conferment of permanent status to the Workman, however, granted monetary relief only
from the date of filing of the application.
6. Mr.Ajay Khose, learned counsel for the Respondent/Workman submitted that
the Employee would be entitled to all the benefits on and from the date of completion of
480 days of service, within a period of 24 calendar months, in the light of the deeming
provisions of the Permanent Status Act.
7. The respondent/workman has not filed any Writ Petition challenging the
portion of the order depriving monetary benefits prior to the date of filing of the
application. Merely because, no Writ Petition has been filed, it will not deprive the
workman in claiming monetary benefits ordered by this Court in the Writ Petition filed
by the Management.
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8. Mr.Ajay Khose, learned counsel appearing for the Workman, across the bar,
fairly submitted that he will not claim monetary benefits from the date of filing
application, however, the Workman is willing to pay his contribution to the Provident
Fund on or from the date of completion of 480 days of service as per the orders of the
authority and that the employer may also be directed to contribute their P.F.
contribution. He further submitted that the employee would be entitled to arrears from
the date of application as per the orders of the authority and the amount payable towards
Provident Fund can be adjusted from the said amount.
9. We are of the view that no settlement can be signed depriving the benefits of
the Permanent Status Act. In the case of hand, as there was no settlement applicable to
the respondent/workman as mentioned supra, the benefit of the said settlement is
applicable only to those employees who were appointed prior to the date of settlement.
As the Transport Corporation has to settle the amount towards provident fund, as per
the aforesaid discussions, we direct that the Provident Fund amount due to the employer
and employee has to be deposited to the Provident Fund Trust within a period of four
months from the date of receipt of a copy of this judgment, however, without any
interest, as wages are going to be paid pursuant to the orders of this Court.
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S. VAIDYANATHAN,J., and K.RAJASEKAR,J
arr
10. It is needful to reiterate that the employee's contribution can be deducted
from the share of the employee's arrears and the contribution towards his share can be
paid from that amount. After the order of the Authority conferring permanent status, if
any employee enters into a settlement under the Industrial Disputes Act, 1947 giving up
certain or all benefits, then the settlement will prevail.
With the above observation and direction, this Writ Appeal stands disposed of.
No costs. Consequently, connected Miscellaneous Petition is closed.
[S.V.N., J.,] [K.R.S., J]
07.06.2023
Index: Yes / No
Internet: Yes / No
arr
W.P.No.1087 of 2023
https://www.mhc.tn.gov.in/judis
W.A.No.1087 of 2023
https://www.mhc.tn.gov.in/judis
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