Disposed

Abb India Limited v. Sri Lingaraju a R

Karnataka HC10 Sept 2020WA/1608/2018

Case brief

AI extract

What is this about?

High Court disposed of the writ appeal filed by ABB India Limited against a labour court award and single judge order. The appeal was settled out of court via a joint memo where the appellant agreed to an ex-gratia payment of Rs.18 lakhs spread over several years, settling all claims and terminating employment relationship.

What did the court decide?

Appeal disposed of; Labour Court award and Single Judge order substituted with terms of settlement; Ex-gratia of Rs.18 lakhs payable over period 01.04.2013 to 31.03.2020.

Abb India Limited Vs Sri Lingaraju a R — Labour and Industrial Disputes | Karnataka HC (2020)

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IN THE HIGH COURT OF KARNATAKA, BENGALURU

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DATED THIS THE 10^TH DAY OF SEPTEMBER, 2020

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PRESENT

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THE HON’BLE MRS. JUSTICE B.V.NAGARATHNA

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AND

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THE HON’BLE MR. JUSTICE RAVI V.HOSMANI

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WRIT APPEAL No.1608 OF 2018 (L-TER)

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BETWEEN:

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ABB INDIA LIMITED (FORMERLY KNOWN AS ABB LIMITED) PLOT NO.4-A, 5 & 6, 2^ND PHASE, PEENYA INDUSTRIAL AREA BENGALURU-560 058.

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REPRESENTED BY VICE PRESIDENT-HR SRI K.GOPALA

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... APPELLANT

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(BY SRI. S.N.MURTHY, SENIOR COUNSEL FOR SRI. SOMASHEKAR, ADVOCATE (THROUGH VC))

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AND:

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SRI. LINGARAJU A.R. S/O SRI RUDRAPPA AGED ABOUT 45 YEARS R/AT NO.13, K.M.V. 1^ST PHASE, RAMACHANDRAPUR, JALAHALLI POST, BENGALURU-560 013.

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..RESPONDENT

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(BY SRI. K.B.NARAYANA SWAMY, ADVOCATE (THROUGH VC))

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THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURTS ACT, 1961 PRAYING TO (A) SET

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ASIDE THE ORDER DATED 26.03.2018 OF THE LEARNED SINGLE JUDGE PASSED IN W.P. NO.48600/2017 AND CONSEQUENTLY ALLOW THE WRIT PETITION FILED BY THE APPELLANT; AND (B) SET ASIDE THE AWARD DATED 04.08.2017 OF THE FIRST ADDITIONAL LABOUR COURT IN I.D.NO.21/2012.

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THIS APPEAL COMING ON FOR ORDERS THIS DAY, NAGARATHNA J ., DELIVERED THE FOLLOWING:

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JUDGMENT

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This appeal has been filed by ABB India Limited against the respondent, who was a former employee of the appellant, assailing the order dated 26.03.2018 passed in W.P. No.48600/2017. The said writ petition was in fact filed by the very appellant, which was rejected. Being aggrieved, the writ appeal has been preferred.

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Today, the matter is listed for orders to record

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the settlement arrived at between the parties in terms of a joint memo filed by the parties. Learned senior counsel, Sri S.N. Murthy, appearing for the appellant’s learned counsel and learned counsel, Sri K.B. Narayana Swamy, appearing for the respondent submitted jointly through video conference that a joint memo has been

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filed wherein the terms of settlement have been recorded. That this appeal could be disposed of in terms of the settlement arrived at between the parties.

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Learned senior counsel appearing for

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appellant’s counsel also submitted that a sum of Rs.18,00,000/- (Rupees eighteen lakhs only) being payable as ex gratia payment shall be paid within a period of two weeks, if this Court is to direct the same, although it has been written as within a period of eight weeks from the date of receipt of the order. Learned counsel for the respondent stated that the amount of payment payable as ex gratia may be spread over the period from 01.04.2013 to 31.03.2020 as mentioned in clause (a) of the settlement. He further submitted that if the amount of Rs.18,00,000/- (Rupees eighteen lakhs) is paid by the appellant – Company, then the respondent would have no further claims whatsoever against the appellant – Company and that the respondent would abide by the terms of the settlement.

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Learned senior counsel for the appellant as

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well as learned counsel for the respondent further submitted that the award dated 04.08.2017 passed in I.D. No.21/2012 by the First Additional Labour Court, Bengaluru, and the order dated 26.03.2018 passed by learned Single Judge in W.P. No.48600/2017 stand substituted by the terms of settlement arrived at in the joint memo being filed by both sides and the appeal may be disposed of in terms thereof.

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When queried, the respondent through video

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conference submitted that he has indeed agreed to the terms of the settlement and that the same is on his own free volition without there being any coalition or undue influence from any side.

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We have taken the joint memo on record. It is noted that it is signed by the representative of the appellant – Company, namely, Vice President - Human Resources, Sri Gopala K. and his counsel as well as the respondent, Sri Lingaraju A.R. as well as his counsel.

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The respondent – Sri Lingaraju A.R. is also present along with his counsel through video conference. He has been identified by his counsel. The Joint memo reads as under:

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“SHORT RECITAL OF THE CASE

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WHEREAS, the respondent was dismissed from service by order dated 10.09.2012 on certain acts of misconducts;

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AND WHEREAS, the respondent challenged his dismissal in I.D.No.21/2012 before the First Additional Labour Court;

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AND WHEREAS, by an Award dated 04.08.2017, dismissal order was set-aside and the respondent was reinstated with continuity of service and all consequential benefits but without back-wages;

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AND WHEREAS, the appellant challenged the Award in W.P.No.48600/2017 and the Learned Single Judge dismissed the Writ Petition on 26.03.2018;

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AND WHEREAS, the appellant challenged the order of the Learned Single Judge and the award passed by the Additional Labour Court in Writ Appeal No.1608/2018;

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AND WHEREAS, the Hon’ble division bench admitted the Writ Appeal and granted interim stay of the award;

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AND WHEREAS, during the pendency of this appeal, both the parties, with the assistance of their respective Advocates,

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discussed the matter and have settled the same on the following terms:

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Terms of Settlement

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a) The appellant shall pay a sum of Rs.18,00,000/- (Rupees eighteen lakhs only) as ex-gratia to the respondent once an order for spread over being passed by this Hon’ble Court, within a period of eight weeks from the date of receipt of order of this Hon’ble Court. The respondent is entitled to spread over of the ex-gratia amount for the period 01.04.2013 to 31.03.2020. The amount may be spread over equally for all these accounting years, and when so effected, the amount comes to Rs.2,57,143/- per each accounting year. An order to this effect may kindly be passed by this Hon’ble Court. The gratuity amount of Rs.4,91,518/- has already been paid to the respondent, vide ICICI Bank Cheque No.345305 dated 07.11.2012.

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b) The respondent agrees to receive the amount of ex-gratia in terms of clause (a) above in full and final settlement of all his claims.

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c) It is agreed between the parties that this settlement terminates the jural relationship of employer and employee between the appellant and the respondent as on the date of dismissal, that is, as on 10.09.2012.

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d) It is further agreed that the respondent shall have no more claims whatsoever, either monetary or otherwise against the appellant in respect of services rendered by

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him to the company or in respect of his non-employment.

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e) It is specifically agreed between the parties that the respondent shall not be entitled to either reinstatement or re-employment or fresh employment in the appellant company or in any other establishment of the appellant.

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f) Both the parties humbly pray that this Hon’ble Court may be pleased to substitute the award dated 04.08.2017 in I.D.No.21/2012 passed by the First Additional Labour Court, Bengaluru and order dated 26.03.2018 of the Learned Single Judge in W.P. No.48600/2017 in terms of this joint memo in the interest of justice and equity.”

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We have perused the terms of settlement

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arrived at between the parties. We find that the same are lawful and that there is no legal impediment to accept the terms of settlement.

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In the circumstances, this Appeal shall stand

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disposed of in terms of the settlement. The award dated 04.08.2017 in I.D. No.21/2012 passed by the I Additional

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Labour Court, Bengaluru, and order dated 26.03.2018 passed by learned Single Judge in W.P. No.48600/2017

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out of which this appeal arises, stand substituted in terms of the settlement as stated by learned senior counsel appearing for appellant’s counsel as well as counsel for the respondent. The sum of Rs.18,00,000/(Rupees eighteen lakhs) being paid as ex gratia amount to the respondent spread over for the period from 01.04.2013 to 31.03.2020 shall be paid within a period of two weeks from the date of receipt of certified copy of this judgment. Ordered accordingly.

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In view of disposal of the appeal, pending applications, I.A. Nos.1/2019 and 2/2019 stand disposed.

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Sd/JUDGE

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Sd/JUDGE

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Sma

Abb India Limited v. Sri Lingaraju a R

Case brief

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Abb India Limited v. Sri Lingaraju a R

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