Tamilnadu State Transport Corporations v. State of Tamil Nadu

Page1 of 13 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15-07-2026 CORAM THE HON'BLE MR JUSTICE S. M. SUBRAMANIAM AND THE HON'BLE MR.JUSTICE N.SENTHILKUMAR WP No. 7715 of 2023, WA NO. 2210 OF 2021,WA NO. 2221 OF 2021 and WP NO. 6307 OF 2021

¶1Tamil Nadu State Transport Corporations Retired Administrative and technical supervisory Staff Welfare association, Rep. by its President, K.Kalyanasundaram, (REG NO.19/2011 ), Salem west), C-42, ATC Nagar, Alagapuram Pudur, Salem 636 016

¶2K.Kalyanasundaram PPO No. 647 Tamil Nadu State Transport corporations, Salem, C-42, ATC Nagar, Alagapuram Pudur Post , Salem 636 016 ..Petitioner(s) Vs

¶1State of Tamil Nadu Rep. by its additional Chief Secretary, Transport Department, Fort St.George, Chennai 09

¶2The Secretary to the Government Finance department, Fort St.George, Chennai 09

¶3The Principal Accountant General (A and E) Government of Tamil Nadu, Tamil Nadu, Teyampet, Chennai 18 ..Respondent(s) WA No. 2210 of 2021

¶1The State Transport Corporation (Villupuram) Ltd Page2 of 13 Rep. By The General Manager, State Transport Corporation Villupuram, 3/137 Salamedu, Vazhudhareddy, Villupuram.

¶2The Secretary The State Transport Corporation (villupuram) Ltd.Tamil Nadu State Transport Corporation, No. 3/37 Salamedu, Vazhudhareddy, Villupuram 605 602.

¶3The Director Tamil Nadu State Transport Corporation Employees Pension Trust, Tiruvalluvar House, Pallavan Salai, Chennai 600 002. ..Appellant(s) Vs R.Karunanidhi ..Respondent(s) WA No. 2212 of 2021

¶1The State Transport Corporation (villupuram) Ltd Rep. By The General Manager, State Transport Corporation Villupuram, 3/137 Salamedu, Vazhudhareddy, Villupuram.

¶2The Secretary The State Transport Corporation (villupuram) Ltd.Tamil Nadu State Transport Corporation, No. 31/37 Salamedu, Vazhudhareddy, Villupuram 605 602.

¶3The Director Tamil Nadu State Transport Corporation Employees Pension Trust, Tiruvalluvar House, Pallavan Salai, Chennai 600 002. ..Appellant(s) Vs T.C.M. Kasim S/o. Mohammed, No.20/3, Mohammed Nabi St, Roshanai, Dindivanam. ..Respondent(s) Page3 of 13 WA No. 2221 of 2021

¶1The State Transport Corporation Ltd Rep By The General Manger, No.3/137, Salamedu, Vazhudhareddy, Villupram 605 602

¶2The Secretary Tamil Nadu State Transport Corporation, Villupuram Ltd, Villupuram Chennai 600 002 ..Appellant(s) Vs R.Chandrasekaran Tradesman (retired) 35 Rajarajeswari Nagar, Koothapakkam, Cuddalore 607 002 ..Respondent(s) WP No. 6307 of 2021 The State Transport and Transport Corporations Retired Employees, Welfare Association, Rep by its General Secretary, K.Karasan (Reg.No.127/ 2001), No.2, Pallavan salai, Chennai-600 002 ..Appellant(s) Vs

¶1The Government of Tamil Nadu The Secretary, Transport Department, Government of TamilNadu, Secretariat, Chennai 600 009

¶2The Secretary Transport Department, Government of TamilNadu, Secretariat, chennai-600009

¶3TamilNadu State Transport corporations Employees Pension fund Trust, Rep by its Administrator, Thiruvalluvar Illam, Pallavan Salai, chennai-600 002

¶4Metropolitan Transport corporation Limited Rep by its Managing Director, Pallavan Illam , Anna salai, Chennai-600 002

¶5State Express Transport corporation Limited Rep by its Managing Director, Thiruvalluvar Page4 of 13 Illam, Pallavan salai, Anna salai, Chennai-600 002

¶6TamilNadu State Transport corporation (villupuram )Limited Rep by its Managing Director, 3/137, Salamedu, Vazhudareddy, Villupuram 605 602

¶7TamilNadu State Transport corporation (Salem) Limited Rep by its Managing Director, 12, Ramakrishna Road, Seerangapalayam, Salem 636 007

¶8TamilNadu State Transport corporation (coimbatore) Limited Rep by its Managing Director, 37, Mettupalayam Road, Coimbatore-641 043

¶9TamilNadu State Transport corporation (Kumbakonam )Limited Rep.by its Managing Director, New Railway station Road, Kumbakonam 612 001

¶10TamilNadu state Transport corporation (Madurai)Limited Rep by its Managing Director, Bye pass Road, Madurai 625 002

¶11TamilNadu State Transport corporation (Tirunelveli)Limited Rep by its Managing Director, Kattabomman Nagar, Tirunelveli-682 002 ..Respondent(s) Writ Petition under Article 226 of the Constitution of India declaring that Rule 14(b) of Tamil Nadu State Transport corporation Employees Pension Fund Trust Rules is unconstitutional and ultra vires of Articles 14, 16 and 21 of the Constitution of India. WA No. 2210 of 2021 Writ Appeal under Clause 15 of the Letters Patent issuing writ of certiorari to set aside the order dated 30.09-2020 passed in WP No.6038 OF Page5 of 13 2012 and allow the present WA. WA No. 2221 of 2021 Writ Appeal filed Clause 15 of Letters Patent issuing writ of certiorari to set aside the order dated 30.09.2020 passed in WP.No.3015 of 2012. WP No. 6307 of 2021 Writ Petition filed under Article 226 of the Constitution of India issuing writ of declaration declaring that Rule 14(b) of the TamilNadu State Transport Employees' pension fund Rules and the order in G.O.Ms.No.135, Transport (D) Department, dated 15.12.2000 issued by the 2nd Respondent in so far as notifying the said Rules w.e.f.1.9.98, as unconstitutional aribtrary, irrational, unjust, unreasonable and discriminatory and violative of Arts14, 16, 21 and 300A of the Constitution and consequently direct the Respondents to sanction and pay monthly pension to all the retired employees who are covered by the TamilNadu State Transport corporation Employees pension Rules/ Scheme and who are in receipt of government pension and who are members of the petitioners Association, from the date of their superannuation/ Voluntary retirement / death, for the entire service rendered by them in the Respondent corporation 4 to 11, independently and without reference to the pension they have been getting from the Government, for the service rendered in the erstwhile state transport Department and without reference to Rule 14(b) and strictly in accordance with Rule 16 (a) (i) and (ii) and 16(b) of the TNSTCE pension Rules with arrears and other consequential benefits,together with interest award costs W.P.No.7715 of 2023 For Petitioner(s): Mr.M.Ramamoorthi For Respondent(s): Dr.R.Gouri, Government Counsel for R1 to R3, MR.C.S.K.Sathish, Standing Counsel for TNSTC for R4 Page6 of 13 W.P.No.6307 of 2021 For Petitioner(s): Mr.Vizay Priyan for Mr.R.Krishnaswamy For Respondent(s): Dr.R.Gouri, Government Counsel for R1, 2 Mr.K.Kathiresan for R5 Mr.C.S.K.Sathish for R6 Mr.K.Moorthy for R4 Mr.M.Aswin for R7 W.A.No.2210 of 2021 For Petitioner(s): Mr.Aswin For Respondent(s): Mr.D.Soondan Raj W.A.No.2221 of 2021 For Petitioner(s): Mr.Aswin For Respondent(s): Mr.A.Arulmozhi Common Order (Order of the Court was made by S.M.Subramaniam J.) The present writ of declaration has been instituted to declare Rule 14(b) of the Tamil Nadu State Transport Corporation Employees' Pension Fund Rules (for brevity, hereinafter referred to as 'Pension Fund Rules') is unconstitutional and ultra vires of Article 14, 16 and 21 of the Constitution of India.

¶2Tamil Nadu State Transport Corporations' Retired Administrative and Technical Supervisory Staff Welfare association along with some retired employees of the Corporation have filed the writ petitions challenging Rule Page7 of 13 14(b) of Pension Fund Rules.

¶3Mr.M.Ramamoorthi, learned counsel for the petitioners would mainly contend that pension in respect of the qualifying services rendered by the members of the association in the Corporation are restricted mainly on the ground that they are receiving Government pension for their services rendered in the erstwhile Transport Department of the Government of Tamil Nadu. Thus, restriction imposed under impugned Rule 14(b) of the Rules is unconstitutional and to be declared as void.

¶4He would drew the attention of this Court with reference to the judgment of the learned Single Judge of this Court in a batch of writ petitions vide order dated 27.09.2006 wherein Clause 5(b) of G.O.Ms.No.42, Transport

(RW) Department, dated 27.05.2005 was set aside. Since Clause 5(b) of the Government order has been set aside, the entire services rendered by the Corporation employees are to be reckoned as qualifying services for grant of pension under the Pension Fund Rules.

¶5The respective learned counsels appearing on behalf of the respondents would oppose by stating that erstwhile Tamil Nadu State Transport Department was dissolved and Transport Corporations are constituted. These Transport Corporations are registered under the Companies Act. Regarding the Government services rendered by the Page8 of 13 employees in the erstwhile Transport Department, pension has been granted for the eligible employees under the Tamil Nadu Pension Rules, 1978.

¶6Regarding services rendered by these employees under Transport Corporation, pensionary benefits are settled under the Pension Fund Rules. The employees served both under the erstwhile Transport department and Transport Corporation are getting two pensions. Taking note of these facts, Government introduced Rule 14(b) in Pension Fund Rules.

¶7Learned counsel for the respondents submit that entire Pension Fund Rules was framed in pursuance to the 12(3) settlement under the Industrial Disputes Act. Therefore, now the employees cannot turn around after their retirement and challenge the provisions.

¶8This Court is of the considered view that 12(3) settlement entered into between the Trade Unions and Management under the Industrial Disputes Act are binding on all the employees, and in respect of the Pension Fund Rules, it would cover the pensioners also.

¶9Pertinently, the writ petitioners herein are receiving two pensions. One under the Tamil Nadu Pension Rules, 1978 and other pension under the Pension Fund Rules. In this context, Rule 14(b) stipulates that Page9 of 13 "b) If a member is eligible for pension under any other scheme, pension payable under the scheme shall be calculated as follows: Gross pension shall be calculated notionally including the period of pensionable service rendered with the previous employer. Total eligible service shall be restricted to 30 years. The difference between the gross pension and the amount already received by the individual for the service rendered with the previous employer or the pension eligible under the scheme which ever is less shall be the eligible pension under the scheme."

¶10No doubt, pension is not a bounty, but deferred portion of the services rendered by the employees. Thus, pension is a right. Such right is conferred strictly in accordance with the terms and conditions of the pension scheme applicable to an employee. Pension scheme is a policy decision and a welfare scheme introduced by the Government to protect the livelihood of the employees and their families after their retirement. Thus, the High Court, in exercise of the power of judicial review, can neither expand the pension scheme nor tinker with the eligibility criteria fixed for grant of pension, as it would result in a financial burden on the exchequer. Such welfare schemes are the policy decision, and if any grievance exist, the aggrieved pensioners association or the individual pensioner may approach the competent authority for redressal. Page10 of 13

¶11As far as the impugned Rule 14(b) is concerned, entire Pension Fund Rules was framed in pursuance to 12(3) settlement under the Industrial Disputes Act entered into between trade union and management. Therefore, they cannot now turn around and challenge the said provision. Secondly, all the writ petitioners are receiving two pensions, i.e., under Tamil Nadu Pension Rules, 1978 and the Pension Fund Rules. This being the factum, this Court does not find any unconstitutionality in the matter of prescribing certain terms for grant of pension in respect of the services rendered by the employees both under the erstwhile Tamil Nadu State Transport Department and the subsequent Corporation constituted under the Companies Act.

¶12With these observations, writ petitions are disposed of. Regarding Writ appeals filed by the State Transport corporation, in view of the above observations made in the writ petitions, writ order dated 30.09.2020 passed in W.P.Nos.6038 and 015 of 2012 are set aside and Writ Appeals stand allowed. No costs. Consequently, the connected miscellaneous petitions, if any, are closed. (S.M.S.,J.) (N.S.,J.) 15-07-2026 Index: Yes/No Speaking/Non-speaking order GD Page11 of 13 To

¶1Additional Chief Secretary State of Tamil Nadu Rep. by its, Transport Department, Fort St.George, Chennai 09

¶2The Secretary to the Government Finance department, Fort St.George, Chennai

¶3The Principal Accountant General (A and E) Government of Tamil Nadu, Tamil Nadu, Teyampet, Chennai 18

¶4The Secretary, The Government of Tamil Nadu Transport Department, Government of TamilNadu, Secretariat, chennai 600 009

¶5TamilNadu State Transport corporations Employees Pension fund Trust, Rep by its Administrator, Thiruvalluvar Illam, Pallavan Salai, chennai-600 002

¶6Metropolitan Transport corporation Limited Rep by its Managing Director, Pallavan Illam , Anna salai, chennai-600 002

¶7State Express Transport corporation Limited Rep by its Managing Director, Thiruvalluvar Illam, Pallavan salai, Anna salai, Chennai-600

¶8TamilNadu State Transport corporation (villupuram )Limited Rep by its Managing Director, 3/137, Salamedu, Vazhudareddy, Villupuram 605 602

¶9TamilNadu State Transport corporation (Salem) Limited Rep by its Managing Director, 12, Ramakrishna Road, Seerangapalayam, Salem 636 007

10.TamilNadu State Transport corporation (coimbatore) Limited Page12 of 13 Rep by its Managing Director, 37, Mettupalayam Road, Coimbatore-641 043

11.TamilNadu State Transport corporation (Kumbakonam )Limited Rep.by its Managing Director, New Railway station Road, Kumbakonam 612 001

12.TamilNadu state Transport corporation (Madurai)Limited Rep by its Managing Director, Bye pass Road, Madurai 625 002

13.TamilNadu State Transport corporation (Tirunelveli)Limited Rep by its Managing Director, Kattabomman Nagar, Tirunelveli-682 002 WPoNo.o7715oofo2023 S.M.SUBRAMANIAMeJ. AND N.SENTHILKUMAReJ. GD WPeNo.e7715eofe2023 AND WAeNO.e2210eOFe2021,WAeNO.e2221eOFe2021,WPeNO.e6307eOFe2021, 15-07-2026 Page13oofo13