Madras High Court Dismisses TANGEDCO's Appeals Against Regularisation of Daily Wage Employees — Upholds Parity in Pay and Regularisation for Workers with 10+ Years of Service. The court held that daily wage employees who completed 10 years of continuous service are entitled to regularisation under Section 3(1)(b) of the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, and to equal pay for equal work under Articles 14 and 16 of the Constitution.

High Court: Madras High Court In Favour of Accused
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Case Note & Summary

The case involves multiple writ appeals filed by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) against an order of a learned Single Judge dated 16.02.2022 in W.P.No.10639 of 2020 and connected matters. The respondents, daily wage employees of TANGEDCO, sought regularisation and parity in pay with regular employees. The learned Single Judge allowed the writ petitions, directing TANGEDCO to regularise the services of the respondents who had completed 10 years of continuous service and to grant them pay parity. TANGEDCO appealed, arguing that the respondents were not workmen under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, and that the principle of equal pay for equal work did not apply. The Division Bench of the Madras High Court, comprising Justice S.M. Subramaniam and Justice K. Surender, dismissed the appeals. The court held that the respondents, having completed 10 years of continuous service, were entitled to regularisation under Section 3(1)(b) of the Act. The court also applied the principle of equal pay for equal work, noting that the respondents performed the same duties as regular employees. The court found no merit in the appeals and upheld the Single Judge's order, directing TANGEDCO to implement the regularisation and pay parity within a specified period.

Headnote

A) Service Law - Regularisation of Daily Wage Employees - Entitlement to Regularisation - Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, Section 3(1)(b) - Daily wage employees who completed 10 years of continuous service are entitled to be conferred permanent status and regularised - The court upheld the writ court's direction to regularise the respondents who had completed 10 years of service, rejecting the appellant's contention that they were not workmen under the Act (Paras 10-15).

B) Service Law - Equal Pay for Equal Work - Parity in Pay - Article 14, Article 16 of the Constitution of India - Daily wage employees performing same duties as regular employees are entitled to equal pay - The court held that the principle of equal pay for equal work applies, and the appellant cannot deny parity in pay to daily wage employees who have been regularised (Paras 16-20).

C) Service Law - Writ Appeal - Scope of Interference - Letters Patent Appeal - The court held that the writ court's order directing regularisation was based on settled legal principles and did not warrant interference in appeal (Paras 21-25).

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Issue of Consideration

Whether daily wage employees who have completed 10 years of continuous service are entitled to regularisation and parity in pay with regular employees, and whether the writ court's direction to regularise such employees is sustainable.

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Final Decision

The Division Bench dismissed all the writ appeals, upholding the Single Judge's order directing regularisation of the respondents who completed 10 years of continuous service and granting them pay parity with regular employees.

Law Points

  • Regularisation of daily wage employees
  • parity in pay
  • equal pay for equal work
  • Article 14
  • Article 16
  • Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act
  • 1981
  • Section 3(1)(b)
  • Letters Patent Appeal
  • writ appeal
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Case Details

2026 LawText (MAD) (04) 117

W.A.Nos.2751, 2399, 2437, 2546 of 2022, 53, 54, 61 and 64 of 2023

2026-04-06

S. M. Subramaniam, K. Surender

Mr.Anandh Gopalan, Mrs.Nalini Chidambaram, Dr.S.Suriya

Tamil Nadu Generation and Distribution Corporation Limited

M.Murugesan and Others

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Nature of Litigation

Writ appeals against a Single Judge order directing regularisation of daily wage employees and grant of pay parity.

Remedy Sought

Appellant sought to set aside the Single Judge order; respondents sought regularisation and equal pay.

Filing Reason

Appellant challenged the Single Judge's order directing regularisation of daily wage employees who completed 10 years of service.

Previous Decisions

Learned Single Judge allowed W.P.No.10639 of 2020 and connected matters on 16.02.2022, directing regularisation and pay parity.

Issues

Whether daily wage employees who completed 10 years of continuous service are entitled to regularisation under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981. Whether such employees are entitled to equal pay for equal work under Articles 14 and 16 of the Constitution.

Submissions/Arguments

Appellant argued that respondents are not workmen under the Act and that the principle of equal pay for equal work does not apply. Respondents argued that they have completed 10 years of continuous service and are entitled to regularisation and pay parity.

Ratio Decidendi

Daily wage employees who have completed 10 years of continuous service are entitled to regularisation under Section 3(1)(b) of the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, and to equal pay for equal work under Articles 14 and 16 of the Constitution.

Judgment Excerpts

The respondents have completed 10 years of continuous service and are entitled to regularisation under Section 3(1)(b) of the Act. The principle of equal pay for equal work applies to the respondents as they perform the same duties as regular employees.

Procedural History

The respondents filed writ petitions before the Madras High Court seeking regularisation and pay parity. The learned Single Judge allowed the petitions on 16.02.2022. TANGEDCO filed writ appeals under Clause 15 of the Letters Patent. The Division Bench heard the appeals and dismissed them on 06.04.2026.

Acts & Sections

  • Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981: Section 3(1)(b)
  • Constitution of India: Article 14, Article 16
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