Case Note & Summary
The case involves four writ appeals filed by the Tamil Nadu State Transport Corporation (TNSTC) Salem Limited against the orders of a learned Single Judge dated 14.11.2025 and 17.11.2025 in W.P.Nos.43554, 43557, 43552, and 44005 of 2025. The writ petitions were filed by employees of TNSTC seeking correct fixation of their pay in accordance with Government Orders G.O.Ms.No.74 and G.O.Ms.No.85. The learned Single Judge allowed the writ petitions and directed the Corporation to fix the pay of the employees as per the said Government Orders. Aggrieved, the Corporation filed the present intra-court appeals under Clause XV of the Letters Patent. The Division Bench, comprising Justice S.M. Subramaniam and Justice R. Sakthivel, heard the appeals. The appellants argued that the Corporation is an independent entity and not bound by the Government Orders. However, the court found that the Corporation is a State within the meaning of Article 12 of the Constitution and is bound by the Government Orders relating to pay fixation. The court further held that the Corporation cannot unilaterally alter the pay scales without following the prescribed procedure. The Division Bench dismissed all the appeals, upholding the orders of the learned Single Judge. The court directed the Corporation to comply with the Government Orders and fix the pay of the employees accordingly. The judgment was delivered on 24-06-2026.
Headnote
A) Service Law - Pay Fixation - Government Orders - The issue pertains to fixation of pay of employees of Tamil Nadu State Transport Corporation (TNSTC) in accordance with G.O.Ms.No.74 and G.O.Ms.No.85. The writ court directed the Corporation to fix pay as per the said Government Orders. The Division Bench upheld the writ court's order, holding that the Corporation is bound by the Government Orders and cannot deviate from them without following the prescribed procedure. (Paras 1-14) B) Writ Appeal - Letters Patent - Maintainability - The appeals were filed under Clause XV of the Letters Patent against the orders of the learned Single Judge. The Division Bench dismissed the appeals, finding no merit in the Corporation's challenge. (Paras 1-14)
Issue of Consideration
Whether the Tamil Nadu State Transport Corporation (TNSTC) is justified in fixing the pay of its employees contrary to the Government Orders (G.O.Ms.No.74 and G.O.Ms.No.85) and whether the writ court's order directing correct pay fixation is sustainable.
Final Decision
The Division Bench dismissed all the writ appeals, upholding the orders of the learned Single Judge. The court directed the Corporation to comply with the Government Orders and fix the pay of the employees accordingly.
Law Points
- Pay fixation
- Government orders binding on public sector undertakings
- Writ appeal
- Letters Patent
- Tamil Nadu State Transport Corporation
- Pensionary benefits
