Karnataka High Court
T. S. Sheshadri vs The Management Of Grindwell Norton Ltd on 30 July, 2024
-1-
NC: 2024:KHC:30003
WP No. 50420 of 2017
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 30TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MRS JUSTICE K.S. HEMALEKHA
WRIT PETITION NO. 50420 OF 2017 (L-RES)
BETWEEN:
T. S. SHESHADRI,
S/O LATE K.R.SURAPPA,AGED ABOUT 53 YEARS,
RESIDING AT NO.23, 3RD CROSS,
RAGHAVENDRA NILAYA,
NEAR SHANIMAHATMA TEMPLE,DEVASANDRA,
K.R.PURAM, BANGALORE - 560 036.
...PETITIONER
(BY SRI. K.S. SUBRAHMANYA, ADVOCATE)
AND:
THE MANAGEMENT OF GRINDWELL NORTON LTD.,
DEVANAHALLI ROAD, OFF OLD MADRAS ROAD,
BANGALORE - 560 049,
Digitally signed by
MAHALAKSHMI B M REPRESENTED BY ITS HEAD (IR AND ADMIN.)
Location: HIGH MR. KIRAN G. TAULA.
COURT OF
KARNATAKA ...RESPONDENT
(BY SRI. NARASIMHA SWAMY N.S, ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-
QUASH THE PORTION OF IMPUGNED AWARD DTD 18.06.2015
PASSED BY THE 2ND ADDL LABOUR COURT IN I.D.NO.56/2009
VIDE ANNX-H WHERE IT IS HELD THAT THE ENQUIRY OFFICER
WAS JUSTIFIED IN HOLDING THAT THE CHARGES WERE
PROVED AND ALSO THE PORTION OF THE AWARD WHERE FULL
BACK WAGES, CONTINUITY OF SERVICE AND ALL OTHER
CONSEQUENTIAL BENEFITS ARE DENIED, AND TO GRANT THE
-2-
NC: 2024:KHC:30003
WP No. 50420 of 2017
BENEFITS OF FULL BACK WAGES WITH CONTINUITY OF
SERVICE AND ALL OTHER CONSEQUENTIAL BENEFITS TO THE
PETITIONER WORKMAN.
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING-B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA
ORAL ORDER
Joint memo of settlement is filed, duly signed by the
petitioner and the respondent and also their respective
counsel.
2. The terms and conditions of the settlement are
culled out at paragraph Nos.6 to 10:
"6. It is agreed by the Respondent to pay a lump
sum amount of Rs.6,00,000.00 lakhs (Rupees Six
Lakhs only), as ex-gratia, to the Petitioner in full and
final settlement of all his claims both before the
Second Additional Labour Court, Bengaluru in I. D.
No. 56 of 2009 and also before this Hon'ble Court in
the aforesaid Writ Petition such as continuity of
service, back-wages, consequential benefits such as
Gratuity etc., towards his claims and any other claims
in connection with employment of Petitioner with
Respondent. It is agreed by the petitioner that after
receipt of full and final settlement amount as
mentioned herein, there will not be any claim
whatsoever in respect of his employment by the
Petitioner against the Respondent.
NC: 2024:KHC:30003
7. The Petitioner has agreed to receive the lump
sum amount of Rs. 6,00,000/- (Rupees Six lakhs
only), as ex-gratia, in full and final settlement of all
the claims made both before the Second Additional
Labour Court, Bengaluru in I. D. No. 56 of 2009 and
also before this Hon'ble Court in the aforesaid Writ
Petition such as continuity of service, back-wages,
consequential benefits such as Gratuity etc., towards
his claims and any other claims in connection with
employment of Petitioner with Respondent.
8. The Petitioner is entitled to receive his PF
accumulation separately by submitting prescribed
Application before the PF Trust in case if he has not
drawn the same.
9. Two separate DDs, bearing No.831782 &
No.831783 both dated 20.07.2024 drawn on Standard
Chartered Bank, for ex- gratia amount of
Rs.5,00,000/- (Rupees Five Lakhs only) and Rs.
1,00,000/- (Rupees One Lakh only) respectively are
handed over to the Petitioner today before this
Hon'ble Court.
10. Whereas, both parties agree that, the amount
of Rs.6,00,000/- paid to the Petitioner under this
settlement, includes back wages for the period from
the date of his termination until the date of this
settlement. As such the said amount is spread over
for the period mentioned in this paragraph and
therefore the amount received through this
settlement shall not qualify for payment of Income
Tax/Tax Deduction at Source (TDS) as per Section 89
of the Income Tax Act. This is as per the judgment of
the Hon'ble Apex Court in the case of Sundaram
Motors Vs. Ameer Jan reported in 1984 (2) LLJ 22
1985 (1) SCC. Consequently, both parties humbly
pray that this Hon'ble Court may be pleased mention
the same in the order, to enable the Petitioner to avail
the benefits of relief under Section 89 of the Income
Tax Act, with a prayer to this Hon'ble Court to
NC: 2024:KHC:30003
apportion the compensation amount paid under this
settlement."
3. As per the terms and conditions of the
settlement, the respondent-management is paying lump
sum amount of Rs.6,00,000/- by way of demand drafts
bearing Nos.831782 and 831783 dated 20.07.2024 drawn
on Standard Chartered Bank towards the ex-gratia amount
of Rs.5,00,000/- and Rs.1,00,000/- towards the full and
final settlement of the claim of the petitioner herein and
the demand drafts numbers stated supra have been
handed over to the petitioner, who is present before this
Court, the xerox of the demand drafts are annexed along
with the joint memo of settlement. The petitioner and the
authorized officer of the respondent-management is
present before this Court.
4. The petitioner acknowledges the receipt of
demand drafts and agrees to the terms of settlement
enumerated in the joint memo of settlement.
NC: 2024:KHC:30003
5. The joint memo of settlement would form part
and parcel of this order.
6. The amount received by the petitioner is spread
over for the period from the date of his termination till the
date of this settlement and in light of the decision of the
Apex Court in the case of Sundaram Motors Pvt. ltd.
Vs. Ameerjan and Another1, the petitioner is at liberty
to avail benefit of relief as available under Section 89 of
the IT Act. In terms of the joint memo of settlement, the
writ petition stands disposed of and award passed by the
Labour Court in ID No.56/2009 dated 18.06.2015 is
modified.
Sd/-
(K.S. HEMALEKHA)
JUDGE
AT
(1985) 1 SCC 118
