Gujarat High Court

Siddhi Vinayak Plastic vs Nilesh Shamjibhai Chavda S/O ... on 20 June, 2025

                                                                                                                NEUTRAL CITATION




                              C/FA/3084/2018                                     ORDER DATED: 20/06/2025

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                                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                                R/FIRST APPEAL NO. 3084 of 2018

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                                            SIDDHI VINAYAK PLASTIC
                                                     Versus
                          NILESH SHAMJIBHAI CHAVDA S/O SHAMJIBHAI NANJIBHAI CHAVDA
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                       Appearance:
                       MR MURALI N DEVNANI(1863) for the Appellant(s) No. 1
                       JEET Y RAJYAGURU(8039) for the Defendant(s) No. 1
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                            CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

                                                           Date : 20/06/2025

                                                            ORAL ORDER

1. Present Appeal is filed under Section 30 of the

Workmen's Compensation Act challenging the impugned

judgment and award dated 25.4.2018 passed by the

Commissioner for Workmen's Compensation in

Workmen's Compensation Non-fatal No.1 of 2014,

Rajkot, whereby learned Commissioner has partly

allowed the said case and awarded compensation of

Rs.1,99,652/- along with 12% interest and 10% penalty in

favour of present respondent. Being aggrieved and

dissatisfied with the said judgment and order, the

appellant has filed present appeal.

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2. In the present appeal, interim relief was granted by

this Court vide order dated 8.8.2018 and the same was

confirmed by this Court vide order dated 1.8.2019.

3. It appears that the amount of Rs.1,99,652/- awarded

by learned Commissioner has already deposited by the

appellant before learned Commissioner and vide order

dated 1.8.2019, 50% disbursement was grated by this

Court in favour of the claimant.

4. Today, Mr. Rajyaguru, learned counsel for the

respondent places on record a settlement deed dated

27.09.2019 and submitted that the parties have entered

into an amicable settlement and appellant has paid

Rs.2,99,652/- to the respondent, as full and final

settlement. The said settlement deed dated 27.09.2019

reads as under:-

"DEED OF SETTLEMENT Name and address of the Employer:

Pankaj Jayantilal Khaant, Partner of Siddhi Vinayak Plastic, R/o. SIDC Road, Shaapar - Veraval

Name and address of the applicant (Injured): Nilesh alias Shamjibhai Chavda alias Parmar, R/o. Shantidham - Shaapar Veraval

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Following settlement has arrived between the parties amicably.

Conditions of the Settlement:-

1) Nilesh alias Shamjibhai Chavda alias Parmar, the applicant herein had been working in the Siddhi Vinayak Plastic.

Consequent to the accident on 07/08/2010 at the workplace, right hand of the applicant was severed upto elbow due to entanglement in machine and as the applicant was minor at that time, he through his guardian and father

- Shamjibhai Nanjibhai Chavda had filed an application for compensation before the Commissioner under Workmen's Compensation Act, Rajkot vide W.C. (N.F.) 1/14 claiming compensation thereof, wherein the Ld. Commission had passed an order on 25/04/2018 to pay Rs.1,99,652/- with interest at the rate of 12% from 21/01/2013 till the realization, 10% of the amount of compensation towards penalty being Rs.19,965/- and Cost of Rs.2000/-. The applicant herein has preferred recovery application vide Miscellaneous Application No.32/18 pursuant to the said order to recover the amount as per the said order, which is presently pending for adjudication. Moreover, being aggrieved by the said order, the employer has preferred an appeal being First Appeal No.3084/2018 before the Hon'ble High Court, which is presently pending and passing Oral Order on 01/08/2019, the Hon'ble Court has granted conditional injunction therein.

Both the parties have agreed for settlement today on the amount as per the order of the Ld. Commissioner and the employer has no objection or dispute if the amount of Rs.1,99,652/- (Rupees One Lacs Ninety-nine Thousand Six Hundred Fifty-two only) deposited before the Ld. Commissioner,

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Rajkot, is paid to the applicant towards compensation as per the Order of the Hon'ble High Court. In addition, the employer has agred to pay Rs.1,00,000/- (Rupees One Lac only) to the injured Nilesh alias Shamjibhai Chavda alias Parmar as per the Order of the Hon'ble Court, which has been paid by cash today by the employer to the applicant. According to the settlement arrived between the parties over the amount as per the order passed by the Ld. Commissioner in W.C. (N.F.) 1/14, the employer has agreed to pay total Rs.2,99,652/- (Rupees Two Lacs Ninety- nine Thousand Six Hundred Fifty-two only) to the applicant and the applicant has agreed to accept the said amount and accordingly, settlement has arrived between the parties today.

2) An amicable settlement has arrived between the applicant herein and employer - Siddhi Vinayak Plastic and the employer hereby agreed to pay to the applicant herein as per the settlement, the amount of Rs.2,99,652/- (Rupees Two Lacs Ninety-nine Thousand Six Hundred Fifty-two only) pursuant to the order passed by the Commissioner under the Workmen's Compensation Act for the accident. The same has been paid by the employer to the applicant as per the details mentioned in the Para-1 above and the applicant hereby acknowledges the receipt thereof.

3) Upon receipt of the amount fixed by this settlement as per the details mentioned in Para-1 above, the applicant shall not file/institute any case pertaining to the same against the employer - Siddhi Vinayak Plastic and this settlement shall be treated as Full and Final Settlement. The said applicant has received the amount as per the settlement and therefore, the applicant shall

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have no right, interest or entitlement to the employer - Siddhi Vinayak Plastic pertaining to the said accident. The applicant hereby confirms the same by virtue of this settlement and the applicant hereby undertakes that he shall not file any case in future regarding the same.

4) As all the amounts towards compensation for the above stated accident have been remitted to the applicant as detailed at Para-1, Nilesh alias Shamjibhai Chavda alias Parmar shall not be entitled to any amount in future from the employer organization, i.e. Siddhi Vinayak Plastic and the amounts include all types of amounts mentioned and not mentioned above and therefore, the present settlement shall be deemed as 'Full and Final Settlement' between the parties.

5) The applicant undertakes qua this deed that he will not institute any litigation in this regard against the employer M/s. Siddhi Vinayak Plastic in future. Pursuant to the present deed, Recovery Application No. 32/2018 instituted by the applicant against the employer Siddhi Vinayak Plastic shall be withdrawn by him unconditionally. Moreover, pursuant to the present deed, the employer shall withdraw First Appeal No. 3084/2018, instituted before the Hon'ble High Court of Gujarat, unconditionally. On 01/08/2019, the Hon'ble High Court has issued the order to the effect that out of Rs.1,99,652/- deposited by the employer, 50% is to be deposited in Fixed Deposits and the remaining amount is to be rendered to the applicant and the amount in Fixed Deposits is to be kept in custody of the Ld. Commissioner. The parties herein agree that the present Deed of Settlement is to be placed before the Hon'ble High Court, bring the same to perusal of the Hon'ble High Court and pray for the

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directions with regard to the order as to keeping the remaining amount in custody.

6) As the applicant has been rendered the compensation for the accident as detailed at Para-1, the applicant voluntarily relinquishes, vide the present Settlement Deed, all his rights arising qua the provisions under the Workmen's Compensation Act and, vide the present deed, the applicant willingly forgoes any amount entitled to him as per the order dated 25/04/2018 passed by the Ld. Commissioner, as the employer organization, i.e. Siddhi Vinayak Plastic, has already rendered the ordered amount of Rs. 2,99,652/-, as detailed at Para-1, to the applicant and the same has been agreed between the parties herein qua the present Deed of Settlement.

7) The applicant has been rendered a total amount of Rs. 2,99,652/-, including principal amount, interest, expenses and penalty, as per the Commissioner's Order. The applicant and the employer Siddhi Vinayak Plastic have reached an amicable settlement. Despite that, if any amount remains due as per the order, the applicant agrees vide the present Settlement Deed that he willingly forgoes the same and he will not make any claim in the future for the same. The applicant agrees vide the present settlement that the applicant is not entitled to any amount from the employer as ordered by the Court.

Settlement as above has been executed by the parties herein out of willingly, without any influence and with understanding and the same shall be binding to us."

5. In view of the above and considering the fact that

the parties have already settled the dispute, 50% amount

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lying with learned Commissioner shall be disbursed in

favour of present respondent, after due verification

through R.T.G.S./N.E.F.T. along with interest, if any

accrued on it.

6. Present appeal stands disposed of in view of the

settlement deed dated 27.09.2019. Copy of the settlement

deed dated 27.9.2019 is taken on record. Record and