Case Note & Summary
The case involved two writ appeals filed by the Tamil Nadu State Transport Corporation against orders from the Madras High Court that had granted benefits to employees under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981. The respondents, who were temporarily engaged with the Transport Corporation, had previously executed an undertaking relinquishing their rights under the Act as part of a settlement reached in 2005. After a lapse of nine years, they sought to claim benefits based on the original order of the competent authority, which the Transport Corporation contested. The court noted that the respondents had accepted the terms of the settlement and could not later claim retrospective regularisation. The court emphasized the principles of laches and acquiescence, stating that rights not exercised for a long time become non-existent. The court ultimately set aside the writ orders and allowed the appeals, reinforcing the binding nature of the settlement and the undertaking executed by the respondents. The decision underscored the importance of adhering to agreed terms and the consequences of delay in asserting rights.
Headnote
A) Labour Law - Permanent Status of Workmen - Right to Claim Benefits - Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, Section 3 - Employees executed an undertaking relinquishing rights under the Permanent Status Act and subsequently regularised their services. Court held that they cannot later claim benefits under the Act after a significant delay and having accepted the terms of the settlement. (Paras 10-12).
Issue of Consideration
Whether the respondents can claim benefits under the Conferment of Permanent Status Act after having executed an undertaking relinquishing such rights.
Final Decision
The court set aside the writ orders dated 01.10.2024 made in W.P.Nos.10560 and 10562 of 2024 and allowed the writ appeals. The court emphasized the binding nature of the settlement and the undertaking executed by the respondents.
Law Points
- Doctrine of laches
- Doctrine of acquiescence
- Permanent status of workmen
- Industrial Disputes Act
- 1947
- Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act
- 1981
Case Details
2026 LawText (MAD) (08) 168
WA Nos. 563 and 565 of 2026
S. M. Subramaniam, Krishnaswamy Govindarajan
Mr.Anand Gopalan, Mr.S. Ravindran
Tamil Nadu State Transport Corporation (Coimbatore) Limited, The General Manager Tamil Nadu State Transport Corporation (Coimbatore) Limited, Erode Region, The General Manager Tamil Nadu State Transport Corporation (Coimbatore) Limited, Tiruppur Region
R.Rajendran, K Saminathan
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Nature of Litigation
Writ appeals against orders granting benefits under the Permanent Status Act.
Remedy Sought
Tamil Nadu State Transport Corporation sought to set aside the writ orders.
Filing Reason
Respondents claimed benefits under the Permanent Status Act after executing an undertaking relinquishing such rights.
Previous Decisions
Writ petitions were previously filed and orders were granted based on the Permanent Status Act.
Issues
Whether the respondents can claim benefits under the Conferment of Permanent Status Act after having executed an undertaking relinquishing such rights.
Whether the delay in asserting rights affects the validity of the claims made by the respondents.
Submissions/Arguments
Appellants argued that the respondents had given up their rights through an undertaking and could not claim benefits after a significant delay.
Respondents contended that the right conferred under the order passed by the competent authority could not be taken away.
Ratio Decidendi
The court held that rights not exercised for a long time become non-existent, and parties cannot claim benefits after relinquishing such rights through an undertaking.
Judgment Excerpts
The respondents executed an undertaking giving up their rights in respect of the order passed by the competent authority under the Conferment of Permanent Status Act.
Such writ petitions are filed by the litigants with an idea to restore dead cause of action or to claim the benefits which was given up long before.
In the absence of any challenge to 12(3) settlement and the regularisation order, the relief granted by the writ Court is not in consonance with the principles of law.
Procedural History
The respondents filed writ petitions seeking regularisation based on the Permanent Status Act, which were granted by the learned single Judge. The Transport Corporation appealed against these orders.
Acts & Sections
- Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act: Section 3
- Industrial Disputes Act: Section 12(3), Section 18(3)
