Case Details: Tamil Nadu State Transport Corporation (Madurai) Ltd. vs. S. Palaniraj - [2026] 186 taxmann.com 151 (HC-Madras)
Judiciary and Counsel Details
- N. Sathish Kumar & M. Jothiraman, JJ.
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S.C. Herold Singh for the Appellant.
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M. Mohammed Imran for the Respondent.
Facts of the Case
In the instant case, the Respondents/workmen were engaged as Drivers through the employment exchange in the year 2001 and continued without interruption. A settlement under Section 12(3) of the Industrial Disputes Act was entered into between the Management of Transport Corporations and workmen on 25.09.2006.
Pursuant to the said 12(3) settlement, the services of all these daily-rated employees were regularised in sanctioned posts at the regular time scale of pay in the year 2006, vide an order dated 01.09.2005.
Respondents filed a writ petition challenging the fixation of a later effective date, seeking permanency from the date of completion of continuous service. Learned Single Judge partly allowed the writ petitions.
It was noted that, even though writ petitioners had entered into a 12(3) settlement on accepting the terms mentioned in the settlement in relation to the permanency of their work, Section 3(1) read with Explanation II of Section 3 of the Act would have a statutory effect over the above-mentioned settlement.
High Court Held
The High Court held that if a 12(3) settlement were binding on employees, it would amount to employees waiving their statutory rights, which was not permissible, as no person could waive any statutory rights conferred under the Special Act. Thus, there was no merit in these writ appeals, and the same were liable to be dismissed.
List of Cases Reviewed
- S. Palnairaj v. Management of Tamilnadu State Transport Corporation, (Madurai) Ltd. WP. (MD) Nos. 2069 & 2071 of 2013, dated 30-8-2022 (para 19) affirmed
List of Cases Referred to
- Management of Tamilnadu State Transport Corporation, (Madurai) Ltd. v. Labour Inspector [WA (MD) Nos. 1455 & 1456 of 2018, dated 24-10-2018] (para 7)
- Management of Tamilnadu State Transport Corporation, (Madurai) Ltd. v. Labour Inspector [Rev. Aplc. (MD) Nos. 81 & 82 of 2019, dated 20-6-2023] (para 8)
- Management of Tamilnadu State Transport Corporation, (Madurai) Ltd. v. S. Senthil [SLP. Nos. 16136-16137 of 2024, dated 17-7-2025] (para 9)
- State of Tamil Nadu v. Nellai Cotton Mills Ltd. (1990) 2 SCC 581 (para 13)
- Nellai Cotton Mills Ltd. v. State of Tamil Nadu [W. P. No. 5918 of 1983] (para 13)
- Metal Powder Co. Ltd. v. State of Tamil Nadu 1985 (2) L.L.J. 376 (para 14).
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