High Court Disposes of Writ Appeals in Industrial Dispute Following Mediated Settlement. Management Agrees to Withdraw Suspension Penalty and Workers Waive Wages for Suspension Period, with Continuity of Service Maintained.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The writ appeals were filed under Clause 15 of the Letters Patent against the order dated 19.12.2024 in WP No.39546/2024. The dispute pertained to a penalty of 7 days suspension imposed on the appellants, who were workers, by the management for the period 25.08.2025 to 31.08.2025. The parties, with the assistance of the Tamil Nadu Mediation and Conciliation Centre at the High Court of Madras, reached a settlement on 28.04.2026. Under the terms of the settlement, the management agreed to withdraw the suspension penalty and remove any related entries from the service records of each appellant. The workers waived their wages for the suspension period but the period was treated as one of continuity of service for all purposes except wages, and it would not be treated as a break in service. The question of law raised in the writ appeals was left open and treated as not decided between the parties. The parties agreed not to institute any future claims or proceedings in this regard and that the settlement shall not be construed as an admission of guilt or liability. The settlement was stated to be voluntary, arrived at without coercion, undue influence, or misrepresentation. The High Court, upon noting the settlement, disposed of the writ appeals in terms thereof, with no order as to costs, and closed any connected miscellaneous petitions.

Headnote

A) Industrial Dispute - Settlement - Compromise - Letters Patent Appeal - The writ appeals were disposed of in terms of the settlement reached between the parties before the Tamil Nadu Mediation and Conciliation Centre, with the management withdrawing the suspension penalty and the workers waiving wages for the suspension period but with continuity of service. The question of law raised in the appeals was left open. Held that the appeals are disposed of in terms of the settlement (Paras 1-3).

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Issue of Consideration

WA Nos. 338, 342, 343, 344, 345, 373 of 2025

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Final Decision

The writ appeals are disposed of in terms of the settlement. No costs. Connected miscellaneous petitions, if any, are closed.

Case Details

2026 LawText (MAD) (07) 137

WA Nos. 338, 342, 343, 344, 345, 373 of 2025

2026-07-15

S.M. Subramaniam, C. Kumarappan

2026:MHC:2939

Mr.V.Prakash, Senior Counsel for Mr.Gokul S (for appellants); Mr.C Manohar Gupta (for respondents)

T.Udhayakumar (in WA No.338/2025) and other appellants in connected matters

The Management of Gates Unitta India Company Pvt. Ltd. and S.Viswanath, Senior Manager, HR

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Nature of Litigation

Writ appeals under Clause 15 of the Letters Patent challenging the order of a single judge in a writ petition.

Remedy Sought

To set aside the order dated 19.12.2024 in WP No.39546/2024.

Filing Reason

The appellants were aggrieved by the single judge's order concerning a penalty of suspension imposed on them.

Previous Decisions

The single judge's order dated 19.12.2024 in WP No.39546/2024.

Issues

Not mentioned; the appeals were disposed of based on a settlement without adjudication of any legal issue.

Judgment Excerpts

The management will withdraw the penalty of 7 days suspension imposed on the appellants from 25.08.2025 to 31.08.2025 in the respective service records of each of the appellants. The workers waive their wages for the period from 25.08.2025 to 31.08.2025. However, the period will be treated as one of continuity of service for all purposes, except wages and the said period will not be treated as break in service. The question of law raised in the writ appeals is left open and treated as not decided between the parties. In view of the above settlement, the writ appeals are disposed of. No costs.

Procedural History

The writ appeals were filed against the single judge's order dated 19.12.2024. During the pendency of the appeals, the parties participated in mediation at the Tamil Nadu Mediation and Conciliation Centre, High Court of Madras, and reached a settlement on 28.04.2026. The settlement terms were placed before the Division Bench, which disposed of the appeals in terms of the settlement on 15.07.2026.

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High Court High Court Disposes of Writ Appeals in Industrial Dispute Following Mediated Settlement. Management Agrees to Withdraw Suspension Penalty and Workers Waive Wages for Suspension Period, with Continuity of Service Maintained.
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