A workman who accepted voluntary retirement and benefits raised a dispute alleging forced resignation nearly three years later; the Government declined reference. The court upheld the refusal, holding that acceptance of VRS is a full and final settlement and that stale disputes need not be referred for adjudication.
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NC: 2026:KHC:35583 WP No. 27031 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF JULY, 2026
BEFORE
THE HON'BLE MS. JUSTICE JYOTI M WRIT PETITION NO. 27031 OF 2025 (L-RES)
BETWEEN:
SRI. RANGASWAMAIAH G., S/O. GANGAGUDDAIAH, AGED ABOUT 58 YEARS, RESIDING AT WARD NO.2, JANTHA COLONY, MALLAGHATTA, BIDANAGERE POST, KUNIGAL TALUK, TUMAKURU DISTRICT-572130.
…PETITIONER
(BY SRI. SIDDESWARASWAMY S.B., ADVOCATE)
AND:
HC-KAR
BANNERGHATTA ROAD,
BENGALURU-560029.
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.
NC: 2026:KHC:35583 WP No. 27031 of 2025
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THIS WRIT PETITION IS LISTED FOR ORDERS, THIS DAY, AN ORDER IS MADE AS UNDER:
ORAL ORDER
Sri.S.B.Siddeswara Swamy, counsel for the petitioner, Sri.K.P.Yoganna, Additional Government Advocate for respondent Nos.1 to 4 and Sri.K.R.Anand counsel for respondent Nos.5 and 6 appeared in person.
(i) Issue a writ of certiorari quashing the impugned endorsement bearing No.Kaa E 224 I D M 2025 dated 04.04.2025 issued by the 2nd respondent at Annexure-G and consequently direct the 2nd respondent to refer the dispute for adjudication to the jurisdictional Labour Court considering the facts and circumstances of the case.
(ii) Issue any other appropriate order or orders or directions as this Hon'ble Court may deem fit to grant by considering the facts and circumstances of the case, in the interests of justice and equity.
contentions.
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They submitted that the petitioner was seeking a reference three years after accepting voluntary retirement. Urging other contentions, they prayed for the dismissal of the petition.
NC: 2026:KHC:35583 WP No. 27031 of 2025
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and then later challenge its validity or claim ongoing employee status.
voluntarily retired and accepted associated benefits. Strangely, after a lapse of almost three years, he raised a dispute alleging a forceful resignation. The government refused to order a
reference. In my view, the refusal to refer the dispute is based on germane and relevant considerations. The reference for adjudication cannot be made without satisfying the precondition of an existing or apprehended industrial dispute. In the complete absence of an existing or at least "apprehended" industrial dispute, the government cannot pass an order of reference of a faded dispute for adjudication. The petitioner accepts the benefits of a transaction (VRS package) and then challenges its validity later. By accepting the full settlement, the petitioner is deemed to have waived all
previous or pending claims. The underlying legal principle is that while the law of limitation does not strictly apply to these proceedings, the government must still determine if a dispute is a "live" or "existing" dispute, keeping in mind that very stale
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claims are generally not encouraged or allowed due to the unsettling effect on employers' financial arrangements. The Government can refuse to refer a dispute if it is considered "stale" or has faded due to a long, unexplained lapse of time. The rationale is to avoid unsettling the employer's financial arrangements and ensure industrial peace. A formal way to state that the government cannot refer a claim for adjudication after a significant, unexplained delay is to say the government may not refer a stale dispute or stale claim for adjudication, as the dispute would be considered to have faded with the efflux of time.
NC: 2026:KHC:35583 WP No. 27031 of 2025
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associated benefits. The government is within its discretion to decline the reference for adjudication.
NC: 2026:KHC:35583 WP No. 27031 of 2025
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Because of dismissal of the Writ Petition, interim order granted if any stands discharged and pending interlocutory applications if any are disposed of.
SD/(JYOTI M) JUDGE
SS
List No.: 1 Sl No.: 27
2 issues framed by the court
Whether the Government could refuse to refer a workman's dispute alleging forced VRS to the Labour Court as a stale claim under Section 10 of the ID Act.
Whether the Government has jurisdiction at the reference stage to assess staleness or non-existence of an industrial dispute.
2 provisions across 2 enactments
Sri. Rangaswamaiah G.
The State of Karnataka, Department of Labour, represented by its Principal Secretary
The Deputy Special Officer (DO-6), Department of Labour
The Commissioner of Labour
The Assistant Labour Commissioner, Bengaluru Division-1
The Management of M/s. Prism Johnson Limited (H and R Johnson India Division)
Jyoti M
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
