High Court · 2025

W.A.No.1445 of 2021IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 07.10.2025CORAM :THE HONOURABLE MR. JUSTICE M.S. RAMESHANDTHE HONOURABLE MR. JUSTICE R. SAKTHIVELW.A.No.1445 of 2021and C.M.P.No.8985 of 20211.The Managing Director,Tamil Nadu State Transport Corporation (Salem Division I) Limited,12, Ramakrishna Salai,Salem – 636 007.2.The General Manager,Tamil Nadu State Transport Corporation (Salem Division I) Limited,12, Ramakrishna Salai,Salem – 636 007.... AppellantsVs.1.P.Pachamuthu2.The Labour Inspector-cum-Inspector,Under Tamil Nadu Industrial Establishments,(Conferment of Permanent Status to Workmen) Act,Salem.... RespondentsPage 1 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, seeking to set aside the order dated 02.09.2020 made in W.P.No.39992 of 2005, passed by this Court.For Appellants: Mr.M.AshwinFor R1: Mr.G.PurushothamanFor R2: No appearance JUDGMENT(Judgment of the Court was made by M.S.RAMESH, J.)By an order dated 31.03.2005, the Authority under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, had granted permanent status to the first respondent herein from the date on which he had completed 480 days of service within 24 calendar months. However, the appellants herein, without complying with the order, appeared to have terminated his services through order dated 29.05.2015, which prompted the first respondent herein to file a Writ Petition before this Court in W.P.No.39992 of 2005. The learned Single Judge, while allowing the Writ Petition on 02.09.2020, had directed the Page 2 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021appellants herein to implement the order of the authority dated 31.03.2005, together with all the monetary benefits. This apart, the learned Single Judge had also directed for recovery of the interest amount payable to the first respondent herein from the salary of the Officials, who are responsible for the delay in implementation of the order. The relevant portion of the said order reads as follows:-.....“30. In view of the foregoing, when the Petitioner has an order in his favour, in order to avoid further round of litigations, this Court holds as under: (i) the Management of the Respondent/Transport Corporation is directed to implement the order dated 31.03.2005 passed by the 3 rd Respondent vide proceedings No.Aa/993/2001, forthwith, within a period of thirty (30) days from the date of receipt of a copy of this order. (ii) All monetary benefits due to the Petitioner from the date of his completion of 480 days in a period of 24 calender months, and other consequential benefits, after adjusting the amount already paid to him till he faced the order of dismissal from service, shall be paid to him within a period of thirty (30) days from the Page 3 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021date of receipt of a copy of this order, together with interest at 12% per annum. (iii) Calculation of monetary benefits to the Petitioner shall be made as it was done in the case of similarly placed employees. (iv) The Management of the Respondent/Transport Corporation shall furnish names of the Officials concerned, who are responsible for implementing the order of the Authority, and for calculation of monetary benefits. (v) If the order dated 31.03.2005 passed by the 3 rd Respondent is not implemented within the time stipulated supra, interest payable to the Petitioner for the delay in implementing the said order, shall be recovered from the salary of the Officials, who are responsible to implement the same, as was held by the Apex Court in the case of Central Co-operative Consumers vs. Labour Court (AIR 1994 SC 23). Such accrued interest shall be paid by the Respondent/Transport Corporation to the Petitioner and recovered from the Officials concerned. Page 4 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021(vi) Names of the Officials, who are to implement the order dated 31.03.2005 passed by the 3 rd Respondent herein, have to be furnished to the Petitioner and also to the Registry of this Court.....”Assailing this final order, the present Writ Appeal has been filed.2. Mr.M.Ashwin, learned counsel appearing for the appellants would submit that pursuant to the orders of the authority, the Trade Unions have entered into 12(3) settlement with the Management, regulating the regularisation of the temporary/part-time labourers and as such, the authority ought not to have ordered for permanent status to the first respondent herein from the date of completion of 480 days. He further submitted that even if the order is to be implemented, the Writ Court ought not to have ordered for recovery of the interest amount from the salary of the Officials of the Transport Corporation. 3. Per contra, the learned counsel appearing for the first respondent contended that the first respondent had completed 480 days in the year 2002 and had also submitted the relevant documents before the authority, Page 5 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021which has been properly considered. He further submitted that the delay in implementation of the order of the authority was on the part of the Management and therefore, the first respondent would be entitled for interest on the belated payment of the wages arising out of such implementation.4. We have given our anxious consideration to the submissions made by the respective counsels.5. When the Conferment of Permanent Status to Workmen Act provides for automatic conferment of permanent status on completion of 480 days of continuous employment in 24 calendar months, the appellants herein may not have the authority to over-ride the statutory provisions by entering into settlement and thereby diluting the provisions. The permanent status of the workman on completion of 480 days is a statutory right which cannot be withdrawn by way of a settlement. This legal position has been consistently upheld through several decisions of the Constitutional Courts. As such, the only ground raised, attacking clause 30 (i, ii & iii) of the order of the Writ Court, cannot be legally sustained.Page 6 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 20216. The Writ Court, while directing the Management to pay the arrears of the revised wages, on implementation of the order of the authority, had awarded for interest, predominantly on the ground that there was a delay on the part of the Management. We endorse the view of the learned Single Judge in this regard. However, in clause 30 (iv, v & vi) of the order of the Writ Court, this interest was directed to be recovered from the concerned officials, who are responsible in failing to implement the order of the authority. A perusal of the writ order does not disclose the reason, as to why such recovery has to be made from the officials. When there are no materials before the Writ Court to even remotely indicate that some officials were responsible for the delay in implementation of the order of the authority, it would not be justifiable for recovery of the interest amount from such officials. In the absence of any discussion, we do not endorse the directions of the learned Single Judge in clause 30 (iv, v & vi) of the order passed in the Writ Petition.7. In the light of the foregoing observations and discussions, the order passed in W.P.No.39992 of 2005 dated 02.09.2020, insofar as clause Page 7 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 202130 (i, ii & iii) are confirmed. However, clause 30 (iv, v & vi) are set aside. The Writ Appeal stands disposed of accordingly. Connected miscellaneous petition is closed.8. Post the matter on 19.11.2025 under the caption 'for reporting compliance'. [M.S.R, J.] [R.S.V, J.] 07.10.2025Index: YesSpeaking orderInternet: YesNeutral Citation: YesSniPage 8 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021ToThe Labour Inspector-cum-Inspector,Under Tamil Nadu Industrial Establishments,(Conferment of Permanent Status to Workmen) Act,Salem.Page 9 of 10 https://www.mhc.tn.gov.in/judis W.A.No.1445 of 2021M.S.RAMESH, J.andR. SAKTHIVEL, J.SniW.A.No.1445 of 202107.10.2025Page 10 of 10