Case Note & Summary
The case arose from a writ petition filed under Article 226 of the Constitution of India by a retired employee of the Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., seeking a mandamus to revise his pay scale and compute terminal benefits in accordance with a wage settlement. The petitioner had served as a Special Grade Conductor and retired on 31.12.2019. After his retirement, a wage settlement was entered into between the Union and the Management on 24.08.2022, which was given retrospective effect from 01.09.2019. The corporation, however, settled his terminal benefits without reference to this settlement, thereby denying him the enhanced amounts. The petitioner contended that since the settlement was applicable from a date when he was still in service, he was entitled to the benefit and to interest on the delayed payment. The respondent did not dispute this stand. The Court, after hearing both sides, found the petitioner's claim justified. It observed that the stand of the petitioner could not be disputed and, therefore, directed the respondent Corporation to pay the differential amounts in respect of gratuity, provident fund, and leave salary. The Court further ordered that the payment be made within six months along with 6% interest per annum computed from the date of the petitioner's retirement till the date of actual payment. The petition was thus disposed of with these directions.
Headnote
A) Labour Law - Wage Settlement - Retrospective Benefit to Retired Employee - Not mentioned - The petitioner, a retired Special Grade Conductor, was denied the benefit of a wage settlement dated 24.08.2022 which was made effective from 01.09.2019; his retirement occurred on 31.12.2019. Held: The petitioner is entitled to differential terminal benefits, including gratuity, provident fund, and leave salary, along with 6% interest per annum from the date of retirement until actual payment, to be paid within six months (Paras 2-4).
Issue of Consideration
Whether a retired employee is entitled to the benefits of a wage settlement entered after his retirement but made effective from a date when he was still in service.
Final Decision
The writ petition is allowed. The respondent Corporation is directed to pay the differential benefits in respect of gratuity, provident fund, and leave salary within six months from the date of receipt of the order copy, along with 6% interest per annum computed from the date of petitioner's retirement (31.12.2019) till the date of actual payment.
Law Points
- wage settlement applicable from prior date entitles retired employee to benefits
- differential terminal benefits with interest for delayed payment
- mandamus under Article 226 for enforcement of settlement
