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D.Premkumar vs The Management
2025 Latest Caselaw 4056 Mad

Citation : 2025 Latest Caselaw 4056 Mad
Judgement Date : 17 March, 2025

Madras High Court

D.Premkumar vs The Management on 17 March, 2025

                                                                                       W.P.No. 3426 of 2020

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                            (Special Original Jurisdiction)
                                               Reserved on              : 19.02.2025
                                               Pronounced on : 17.03.2025

                                                         PRESENT:

                                   THE HON’BLE DR. JUSTICE A.D. MARIA CLETE

                                                W.P.No. 3426 of 2020

                     D.Premkumar,
                     S/o. Dorairaj,
                     No.3, 12-1, Madeswaran Koil Road,
                     Kuttayoor – 641 104                                                   …Petitioner

                                                                  Vs.

                     The Management,
                     Tamilnadu State Transport Corporation
                     (Coimbatore) Ltd,
                     Mettupalayam Road,
                     Coimbatore – 641 043                                               …Respondent

                     Prayer in the W.P.

                     To issue appropriate Writs, Orders or Directions and in particular issue a
                     Writ in the nature of Certiorarified Mandamus after calling for the records
                     pertaining to the order dated 2.4.2019 passed the Hon’ble Principal Labour
                     Court, Coimbatore, in C.P.No.101/2017, quash the same and consequently
                     direct the respondent corporation to pay the petitioner a sum of
                     Rs.1,15,520/- towards difference in salary for the period from 1.7.2007 to
                     23.5.2009 and towards earned leave salary for that period, together with
                     interest at the rate of 12% from the date of due to the date of actual payment,
                     Award costs.




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                                                                                             W.P.No. 3426 of 2020

                     Appearance of Parties:

                     For Petitioner         : M/s. R.Krishnaswamy and V.AjayKhose, Advocates

                     For Respondent : M/s.A.Sundaravadhanam, M.Arun,A.Indumathi,
                                      Advocates

                                                     JUDGMENT

Heard.

2. The Petitioner, a workman, has filed this writ petition challenging the

order of the Principal Labour Court, Coimbatore, dated 02.04.2019, in C.P.

No. 101 of 2017. By the impugned order, the Labour Court rejected his

claim for payment of salary from the date of regularization. The writ petition

was listed for admission on 12.02.2020, and notice was taken by the counsel

for the Respondent Corporation.

3. The circumstances leading to the filing of this writ petition are as

follows: The Petitioner, a workman, was employed as a driver in the

Respondent Transport Corporation on 19.08.2006. As per the settlement

between the union and the management, any worker who completed 240

days of service was eligible for regularization. Accordingly, on 23.05.2009,

the Respondent issued an order regularizing the services of the Petitioner

along with 11 other workmen. The order granted regularization with

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retrospective effect from 01.07.2007 and fixed the pay scale at Rs. 4,320 –

Rs. 601 – Rs. 4,800 – Rs. 65 – Rs. 5,775, with the Petitioner’s salary set at

Rs. 4,296/-. The order also explicitly stated that all monetary benefits would

be calculated and paid to him.

4. However, the Respondent failed to fix the Petitioner's wages on a

time-scale basis from 01.07.2007 to April 2009. Instead, he continued to be

paid only on a daily wage basis. Consequently, the Petitioner computed the

wages due to him for the period from July 2007 to April 2009 in accordance

with the terms of the settlement. After deducting the amount already paid,

he determined that the outstanding balance amounted to Rs. 1,00,699/-. The

Petitioner was also not paid his earned leave wages, which totaled

Rs. 14,820.96.

5. Consequently, the Petitioner filed a claim petition before the Labour

Court under Section 33C(2), seeking a sum of Rs. 1,15,520/- along with

interest at the rate of 24% per annum. The petition was numbered as

C.P. No. 101 of 2017, and notice was issued to the Respondent Corporation.

The Respondent Corporation entered an appearance and filed a counter

statement (dated Nil), opposing the claim.During the proceedings before the

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Labour Court, the Petitioner examined himself as PW1 and submitted five

documents, which were marked as Exhibits P1 to P5. On behalf of the

Respondent Corporation, six documents were produced and marked as

Exhibits R1 to R6.

6. The order of regularization dated 23.05.2009, which was submitted

by both parties, was marked as Ex.P2 on behalf of the Petitioner and Ex.R6

on behalf of the Respondent. This order stated that the Petitioner's services

were regularized with effect from 01.07.2007, and his time-scale pay was

fixed accordingly. It also prescribed a probation period for him. The

footnote of the order explicitly mentioned that the monetary benefits arising

from the regularization would be paid along with the salary for May 2009.

After examining these exhibits, the Labour Court concluded that the petition

for arrears was not barred by delay or laches and was maintainable.

However, it held that while the Petitioner's services were confirmed from

01.07.2007, he was entitled to monetary benefits only from 01.06.2009. The

Labour Court also rejected the documents submitted by the Respondent

regarding certain disciplinary proceedings initiated against the Petitioner.

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7. Aggrieved by the rejection of his claim petition through the order

dated 02.04.2019, the workman has filed the present writ petition. The

learned counsel for the Petitioner, assailing the order of the Labour Court,

also relied on a judgment of the Division Bench, wherein relief was granted

to similarly placed individuals. In the case of K.P. Sakthivel & Ors. vs. The

Management of Tamil Nadu State Transport Corporation &Anr., in Writ

Appeal Nos. 1581–1584 of 2021, dated 14.02.2023, the Division Bench

held as follows:

“A Division Bench of this Court, in W.A.No. 2155 of 2021, dated 30.01.2023, while considering the issue with regard to the benefit flowing to the employee under a settlement, has categorically held that the Labour Court is empowered to decide a pre-existing right without any adjudication. In this case, the benefit accrues from the orders of the management, wherein, it is admitted that the employees have been regularized with retrospective effect. Hence, the employees are entitled to the monetary benefit, as determined by the Labour Court, and the finding of the learned single Judge, on this issue, is interfered with.

Writ Appeals are, accordingly, allowed. The respondent management is directed to disburse the amount to the appellants – employees, as ordered by the Labour Court, without interest, within a period of three months from the date of receipt of a copy of this order, if not already paid. If the management fails to pay the amount as aforesaid, it will fetch interest at 6% per annum from the date of the management regularizing the services and the amount of interest shall be recovered from the Official (s), who is/are https://www.mhc.tn.gov.in/judis ( Uploaded on: 17/03/2025 08:16:07 pm )

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responsible to comply with the orders of the Court, and adverse entry shall be made in the service record of the said Officer(s) for dereliction of duty, that may be taken note of, for depriving promotions to the said Officer (s). In the light of the decision of the Supreme Court in Central Co-

operative Consumers’ Store Ltd Vs. Labour Court, H.P.at Shimla and another, 1993 (3) SCC 214, the amount and interest shall be paid first and recovery of interest cannot wait for releasing the amount due to the employees.”

8. In light of the foregoing, the order passed by the Labour Court is

clearly erroneous. The workman is entitled to arrears of salary from the date

of his regularization, as well as wages for earned leave. Accordingly, the

impugned order in C.P. No. 101 of 2017 dated 02.04.2019 is set

aside.Consequently, the Respondent Corporation is directed to pay the

Petitioner a sum of Rs. 1,15,520/-. However, instead of the 24% interest

claimed, as per the Division Bench order, the unpaid amount shall carry an

interest of 6% per annum from the date it became due until the date of

payment.The writ petition is allowed on the above terms. No costs.

17.03.2025 NCC : Yes / No Index : Yes / No Internet : Yes / No ay

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Copy to:

The Presiding Officer Principal Labour Court, Coimbatore (with records if any)

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DR. A.D.MARIA CLETE, J.

ay

Pre-delivery Judgment in

17.03.2025

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