Karnataka High Court
The Management Of St John'S Medical ... vs St John'S Medical College And Hospital on 22 November, 2024
Author: Krishna S Dixit
Bench: Krishna S Dixit
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NC: 2024:KHC:47690-DB
WA No. 2498 of 2012
C/W WA No. 2499 of 2012
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 22ND DAY OF NOVEMBER, 2024
PRESENT
THE HON'BLE MR JUSTICE KRISHNA S DIXIT
AND
THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR
WRIT APPEAL NO. 2498 OF 2012 (L-RES)
C/W
WRIT APPEAL NO. 2499 OF 2012 (L-RES)
IN WA No. 2498 OF 2012:
BETWEEN:
THE MANAGEMENT OF ST.JOHN'S MEDICAL COLLEGE
JOHN NAGAR, SARJAPUR ROAD
BANGALORE-560 034.
NOW REPRESENTED BY THE
SECREARY OF CBCI SOCIETY
FOR MEDICAL EDUCATION
REV. DR. LAWRENCE D'SOUZA
...APPELLANT
(BY SRI. S.N. MURTHY, SENIOR COUNSEL FOR
SRI. SOMASHEKAR, ADVOCATE)
Digitally signed by
SHAKAMBARI AND:
Location: HIGH
COURT OF ST JOHN'S MEDICAL COLLEGE AND HOSPITAL
KARNATAKA
STAFF ASSOCIATION, NO.219
1ST FLOOR, ST .JOHN'S MEDICAL COLLEGE
JOHN NAGAR, SARJAPUR ROAD
BANGALORE-560 034
REPRESENTED BY ITS GENERAL SECRETARY
...RESPONDENT
(BY SRI. K. KASTURI, SENIOR COUNSEL FOR
SRI. V.S. NAIK AND
SMT. MANJULA N. KULKARNI, ADVOCATES FOR C/R)
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WA No. 2498 of 2012
C/W WA No. 2499 of 2012
THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED
IN THE WRIT PETITION NO.11847/2004 (L-RES) DATED
12/03/2012.
IN WA NO. 2499 OF 2012:
BETWEEN:
THE MANAGEMENT OF ST JOHN'S MEDICAL COLLEGE
HOSPITAL, JOHN NAGAR
SARJAPUR ROAD, BANGALORE-560 034
REPRESENTED BY THE SECRETARY
OF CBCI SOCIETY FOR MEDICAL EDUCATION
REV.DR.LAWRENCE D'SOUZA
...APPELLANT
(BY SRI. S.N. MURTHY, SENIOR COUNSEL A/W
SMT. ROOPASHREE, ADVOCATE)
AND:
ST JOHN'S MEDICAL COLLEGE AND HOSPITAL
STAFF ASSOCIATION, NO.219
1ST FLOOR, ST.JOHN'S MEDICAL COLLEGE
JOHN NAGVAR, SARJAPUR ROAD
BANGALORE-560 034
REPRESENTED BY ITS GENERAL SECRETARY
...RESPONDENT
(BY SRI. K. KASTURI, SENIOR COUNSEL FOR
SRI. V.S. NAIK AND
SMT. MANJULA N. KULKARNI, ADVOCATES FOR C/R)
THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED
IN THE WRIT PETITION 32846/2004 DATED 12/3/12.
THESE APPEALS, COMING ON FOR FURTHER HEARING,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT
and
HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR
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WA No. 2498 of 2012
C/W WA No. 2499 of 2012
ORAL JUDGMENT
(PER: HON'BLE MR JUSTICE KRISHNA S DIXIT)
With the cooperation of the learned Senior Advocates
and instructing counsel appearing for the parties, the
dispute came to be amicably settled vide order dated
27.06.2024. For ease of reference, the terms of settlement
are reproduced as under:
"(1) In full satisfaction of the demands of the
respondent-Trade Unions, the appellant-
Management shall pay a lumpsum of
Rs.20,00,00,000/- (Rupees Twenty Crore) only, to
such members of the Association who answer the
definition of 'workman' in terms of section 2(s) of
the 1947 Act and obviously, those members who do
not so answer, not being entitled to any payment.
(2) The aforesaid amount of Rupees Twenty
Crore shall be deposited in the Registry of this
Court in three monthly installments: the first
installment of Rs.7,00,00,000/- (Rupees Seven
Crore) only, shall be remitted on or before
26.07.2024; the second installment of
Rs.7,00,00,000/- (Rupees Seven Crore) only, shall
be remitted on or before 25.08.2024; and the third
installment of Rs.6,00,00,000/- (Rupees Six Crore)
only, shall be remitted on or before 24.09.2024.
(3) If any breach is committed in remitting the
amount as undertaken and accordingly stipulated
above, the subject writ appeals shall stand
dismissed and as a consequence, the impugned
awards which otherwise stood modified in terms of
this settlement, shall revive on their own as
phoenix and further, the same shall be treated as
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the orders made by this court so that their non-
compliance may attract contempt action.
(4) Both the sides shall on the basis of records
and other evidentiary material, shall file with the
court within three weeks a list of members of both
the Unions who were the workmen in terms of
section 2(s) of the 1947 Act; they shall also furnish
the bank accounts of the employees, if available in
the Service Records so that the amount payable to
them can be remitted to the same at the earliest,
after making payment of some of that to the
account of the Trade Unions.
(5) Both the sides shall within three weeks
furnish the information about the demise of
workmen during the pendency of litigation and of
the details of their legal representatives/legal heirs,
so that on the establishment of their entitlement,
amount payable to the estate of the deceased can
be handed to these persons after ascertainment. If
needed, enquiry with the help of authorities
including police may be undertaken, so that
false/fraudulent claimants shall be put in jail.
(6) The modalities as to how the amount should
be released to the workmen who are alive and to
the L.Rs of the workmen who have expired or to
those whose particulars are not immediately
available, need to be framed on a warfooting so
that the fruits of this long drawn legal battle reach
the right hands at the earliest. In that connection,
both the sides shall make their written submissions
on the next date of hearing."
II. Learned Senior Advocate Mr. K.Kasturi assisted
by counsel on record Mr. V.S.Naik appearing for the
workmen/ Trade Union submits that in terms of the above
settlement, the Management has already deposited with
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the Registry of this Court a sum of Rs.20,00,00,000/-
(Rupees Twenty Crore) only and that the same needs to
be released in favour of the workmen, list whereof has
been furnished in the Tabular Form at Annexure-A to the
Memo dated 24.7.2024 filed by the counsel for
workmen/Trade Union. Learned counsel on record Mr.
Naik points out that the workmen i.e., Sl.No.1 (Nancy
Nanditha.M) to Sl.No.2613 (Sudhira.B.S.) both inclusive
being entitled to the payment specified against their
names have to be paid. He adds that there are only 19
workmen who have since passed away and their legal
representatives if come forward in unison are also be paid.
The names of deceased do avail in the very same list.
Learned Sr. Advocate Mr.S.N.Murthy assisted by counsel
on record Smt.Roopasri, raises certain issues and concerns
about the process of distribution of amount arguing that
the Management would face certain difficulties should a
section of workmen, their representatives or the Trade
Union or such other person raise unnecessary issues
concerning the claims or the process of remitting the
amount. He also expresses some apprehension about the
possible liability of the Management about TDS to be
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effected from the monies payable to the workmen. This we
address in the later part of this judgement.
III. Since majority of enlisted workmen are still
continuing in the employ of the very Management, we do
not see much difficulty in distributing the specified sums of
monies to them by crediting the same to their bank
accounts, to which wages are periodically being credited,
with a written intimation to all of them about this
judgement. This apart the Management will have the Bank
Account particulars of the retired, resigned & deceased
workmen, as well and therefore, the amount specified as
against their names in the subject list shall be credited to
their respective Bank Accounts, unless such accounts are
found to be not in operation. The Management and the
Trade Union shall give wide publicity to this judgement so
that those to whom money should reach, would come
forward to receive the same. It is also open to solicit any
information and records from the workmen or those who
claim under them.
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This exercise has to be accomplished within an outer limit
of eight weeks. To facilitate this exercise being
undertaken, the Registry of this court shall remit back the
amount of Rs.20,00,00,000/- (Rupees Twenty Crore) only
in deposit along with accrued interest if any, to the Bank
Account of the Management i.e., No.10001018003001 of
CBCI Society for Medical Education, without brooking any
delay, forthwith.
IV. The apprehension of learned Sr. Advocate
Mr.S.N.Murthy that the Management is duty bound to
deduct tax component from the payables and remit the
same to the Income Tax Department, is alleviated by the
reply of Mr.V.S.Naik appearing for the workmen that in no
case, any income tax is payable, looking to the smallness
of monies payable to each of the enlisted workmen, as
mentioned above. After payment is made to the workmen,
the Management may intimate the same to the
jurisdictional I.T. office, if it so chooses. However, we
make it clear that the TDS shall not be an issue qua the
Management in any circumstance whatsoever.
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V. Mr.Murthy may not have the apprehension of
any difficulty in making the payment to the workmen as
indicated above inasmuch as no Trade Union nor any of its
office bearers nor any other workmen shall interfere with
the process of distribution of monies to the workmen who
are entitled to the same, under the settlement in question.
If there is any interference, the same may be brought to
the notice of this court so that stringent action can be
taken against them, in accordance with law.
VI. The Management may make payment to the
L.Rs of deceased workmen, if such L.Rs come in unison
and furnish one common Bank Account number for doing
the same. However, the Management shall not entertain
any rival claim but may tell the rival claimants to approach
this court for seeking resolution of the same. However, the
amount remaining with the Management which otherwise
would have been paid to the workmen deceased or
otherwise for any reason whatsoever, shall be kept in a
separate account so that the interest would accrue thereon
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and the same would enure to the benefit of workmen or
their L.Rs as the case may be when it is distributed. We
make it clear that the payment if made to the Bank
Account of the workmen as indicated above, shall give the
Management full discharge from the liability.
VII. After complying the above directions, the
Management shall file the compliance report with full
particulars with the Registrar General of this Court and
copy be marked to the Commissioner, Department of
Labour, Government of Karnataka, Bannerghatta Road,
Bengaluru, forthwith.
VIII. At this stage, learned counsel Mr.Naik seeks an
order quantifying the fees payable to all the advocates
who represented the workmen/Trade Union for decades in
the legal battles fought before several
Courts/Tribunals/Authorities. We solicited the suggestion
in this regard from Mr.Murthy and the Trade Union General
Secretary Mr.Bolegowda who is personally present before
us, this day too. We had a long interaction with this office
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bearer of the Union. In matters like this, it is difficult to
quantify the fees payable to the counsel representing the
Labour. We are told at the Bar that ordinarily, collectively
about 5% of the amount payable to the workmen is
charged as fees of their advocates, when cases of this
nature run for decades before various fora. This appears to
be reasonable too, regard being had to the quantum of
service rendered by the Bar to the labour class of the kind
for long. However, we abstain from making any order in
this regard. We have also noted that about
Rs.1,60,00,000/- (Rupees One Crore & Sixty Lakh) or so,
would remain after paying off what is due to the workmen.
This amount along with interest accruing if any, shall be
remitted by the Management to the Trade Union's Bank
Account No.05210100015411, Bank of Baroda, St. John's
Medical College Branch, Bangalore. This direction is issued
as sought for by the learned advocate on record
Mr.V.S.Naik in the presence of and on the instruction of
Mr.Bolegowda, the General Secretary of the Union.
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Should any difficulty arise in implementing the letter
& spirit of this judgement, it is open to the concerned to
move this Court through an appropriate application.
We will be failing in our duty if we part with the
papers without placing on record our deep appreciation for
the assistance rendered by learned Senior Advocate
Mr.S.N.Murthy appearing for the Management, learned
Senior Advocate Mr.K.Kasturi and learned advocate on
record Mr.V.S.Naik both appearing for the workmen/Trade
Union.
With the above observations and in terms of the
settlement between the parties and also the developments
that took place thereafter as reflected in the orders made
pendente lite, these Writ Appeals stand disposed off, costs
having been made easy.
Sd/-
(KRISHNA S DIXIT)
JUDGE
Sd/-
(RAMACHANDRA D. HUDDAR)
JUDGE
SMJ/CBC
