A Anilkumar Vs M/S the Management of Poonam Cottons — Writ and Judicial Review | Karnataka HC (2026)

A Anilkumar Vs M/S the Management of Poonam Cottons — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Both writ petitions disposed of in terms of the joint memo: the award dated 25.10.2018 of the Principal Labour Court, Bangalore in I.D.No.07/2016 is set aside; the workman receives Rs. 3,00,000 as full and final settlement (Rs. 2,00,000 by Demand Draft No. 461077 dated 07.02.2026 and Rs. 1,00,000 in cash), inclusive of notional gratuity, in lieu of all claims including backwages; per the joint memo terms, refund of the Rs. 75,000 deposit (made pursuant to the interim order dated 24.01.2025) by the Principal Labour Court, Bengaluru is sought.

Issue for consideration

Whether the award dated 25.10.2018 in I.D.No.7/2016 should be modified to direct the management to pay full backwages and consequential benefits with continuity of service to the workman (W.P.No.46832/2019). +1 more

Court's answer

The workman, present before the Court, admitted agreeing to settle the dispute by receiving Rs.3,00,000/- towards full and final settlement, and acknowledged receipt of Rs.2,00,000/- through Demand Draft No.461077 dated 07.02.2026 and Rs.1,00,000/- in cash paid before the Court.

Ratio / Principle

Having perused the terms of the settlement and made an enquiry, the Court found that the parties had voluntarily entered into the settlement after understanding the terms and conditions, and saw no impediment to accepting the joint memo.

Key takeaways

The impugned award dated 25.10.2018 on the file of the Principal Labour Court, Bangalore in I.D.No.07/2016 is set aside in terms of the joint memo.ratio¶72
Both writ petitions stand disposed of in terms of the joint memo recording the settlement between the workman and the management.ratio¶73

Detailed headnote1 paragraphs

High Court of Karnataka (Anant Ramanath Hegde, J.), 09.02.2026 — Cross writ petitions by a workman (W.P.No.46832/2019, seeking modification of the award to grant full backwages and consequential benefits) and the management (W.P.No.2003/2025, seeking quashing of the award dated 25.10.2018 in I.D.No.7/2016 of the Principal Labour Court, Bangalore, which had set aside the refusal of employment dated 08.10.2015 and ordered reinstatement without backwages, and of the order dated 20.01.2024 of the 1st Addl. Labour Court in Application No. 02/2019). During pendency, on the Court's intervention, the parties filed a signed joint memo reporting an amicable settlement: Rs. 3,00,000 (inclusive of notional gratuity) as full and final settlement of all claims, paid as Rs. 2,00,000 by Demand Draft No. 461077 dated 07.02.2026 and Rs. 1,00,000 in cash, with the workman agreeing to withdraw all other cases; the joint memo also sought refund of the Rs. 75,000 deposited pursuant to the interim order dated 24.01.2025. The Court, after enquiry, found the settlement voluntary, found no impediment to accepting the joint memo, set aside the award dated 25.10.2018 in terms of the joint memo, and disposed of both petitions in terms thereof.

NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

1 -

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9^TH DAY OF FEBRUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

WRIT PETITION NO. 46832 OF 2019 (L-RES)

C/W

WRIT PETITION NO. 2003 OF 2025 (L-RES)

IN WP No. 46832/2019

BETWEEN:

A ANILKUMAR, S/O K AMARANARAYANA SETTY, AGED ABOUT 45 YEARS, R/AT NO.229/A, TANK 'B, MAIN ROAD, 2^ND STAGE, SUBRAMANYANAGAR, BANGALORE - 560021.

…PETITIONER

Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA

(BY SRI RAMESH KUMAR M C, ADVOCATE FOR SRI. C N KRISHNA REDDY.,ADVOCATE)

AND:

M/S THE MANAGEMENT OF POONAM COTTONS SITUATED AT NO.42, D K LANE, R T STREET, 27^TH CROSS, CHICKPET, BANGALORE-560053, REPRESENTED BY ITS PROPRIETOR, NAMELY SMT PREETHI V JAIN.

…RESPONDENT

(BY SRI MANJUNATHA B., ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO MODIFY THE AWARD DATED 25.10.2018 PASSED BY THE PRINCIPAL LABOUR COURT, BANGLAORE IN I.D.NO.7/2016 VIDE ANNEXURE-A AND FURTHER DIRECTED THE

NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

2 -

HC-KAR

RESPONDENT MANAGEMENT TO PAY FULL BACKWAGES AND ALSO CONSEQUENTIAL BENEFITS FROM THE DATE OF REFUSAL OF WORK TILL THE DATE OF REINSTATEMENT WITH CONTINUITY OF SERVICE.

IN WP NO. 2003/2025

BETWEEN:

M/S POONAM COTTONS, REPRESENTED BY ITS EX PROPRIETOR, SMT. PREETHI V JAIN, PITALYA NIWAS, NO.331, 9^TH MAIN, 52^ND CROSS, 4^TH BLOCK, RAJANJINAGAR, BENGALURU-560010.

...PETITIONER

(BY SRI MANJUNATHA B.,ADVOCATE)

AND:

A ANIL KUMAR, S/O K AMRANARAYA SHETTY, AGED ABOUT 45 YEARS, NO.229/A, TANK BU MAIN ROAD, 2^ND STAGE, SUBRAMANYANAGAR, BENGALURU-560021.

...RESPONDENT

(BY SRI RAMESH KUMAR M C, ADVOCATE FOR SRI. C N KRISHNA REDDY.,ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE ENTIRE RECORDS LEADING TO THE PASSING OF THE AWARD DTD. 25.10.2018 PASSED BY THE PRINCIPAL LABOUR COURT, BENGALURU IN ID NO. 07/2016 AS PER ANNX-E.QUASH THE AWARD DTD. 25.10.2018 PASSED BY THE PRINCIPAL LABOUR COURT, BENGALURU IN ID 07/2016 AS PER ANNXE.QUASH THE ORDER DTD. 20.01.2024 PASSED BY THE 1ST ADDL. LABOUR COURT, IN APPLICATION NO. 02/2019 AS PER ANNX-K.

3 - NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

HC-KAR

THESE PETITIONS, COMING ON FOR REPORTING SETTLEMENT, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

ORAL ORDER

W.P.No.46832/2019 is filed assailing the award passed by

the Principal Labour Court, Bangalore in I.D.No.7/2016. In terms of the award dated 25.10.2018, the claim of the 1^st party - petitioner is allowed in part. The order dated 08.10.2015 refusing employment is set-aside. The Management - employer is directed to reinstate the 1^st party without backwages. The workman has assailed the award denying the backwages.

The Management-employer has filed W.P.No.2003/ 2025 assailing the award directing reinstatement.

Learned counsel for the employer and the learned counsel for the workman are before this Court and have filed a joint memo reporting settlement. The joint memo is duly signed by learned counsel for the workman and the learned counsel for the employer.

4 - NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

HC-KAR

The workman who is present before the Court and

admits that he has agreed to settle the dispute by receiving Rs.3,00,000/- towards full and final settlement of the matter.

The terms and conditions of the settlement are as

under:

"1. The Respondent workman herein has raised the dispute before the Labour Court in ID 07/2016. The Labour Court passed the Award dated 25.10.2018 and directed the Petitioner's Management to reinstate the Respondent. However, as on the date of passing the Award, the Petitioner's establishment was closed. The Respondent herein for execution of the Award has filed the 33(C)(2) Applications in Application No 02/2019 and another Application No 1/2020 and 14/2021 (3 separate applications).

2. The Petitioner being aggrieved by the Award dated 25.10.2018 and subsequent order in Application No 01/2020 dated 20.01.2024 has filed the Writ Petition No 2003/2025. The Respondent workman seeking back wages has filed Writ Petition in WP No 46832/2019.

3. During pendency of above Writ Petitions, on the intervention of the Hon'ble Court and suggestions to resolve the issue amicably and efforts by the parties had several rounds of discussions. After threadbare discussions as Win-Win situation and to

NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

5 -

HC-KAR

put an end to all the litigations between the parties forever, both the parties have agreed to settle the issues amicably.

4. Accordingly, as agreed by the parties, towards full and final settlement of the claims made by the Respondent workman before this Hon'ble Court and before the Labour Court in ID 07/2016 in Application No 02/2019; Application No 1/2020 and 14/2021 which including the notional gratuity, the Respondent workman has agreed to receive total full and final settlement of Rs 3,00,000/("Settlement Payment") which including Gratuity and the Petitioner has agreed to pay the full and final settlement amount of Rs 3,00,000/- to the Respondent workman. Accordingly, the Petitioner herein has paid Rs 2,00,000/- by way of Demand Draft dated 07.02.2026 bearing No. 461077 and Rs 1,00,000/-by way of Cash.

5. The amount of Rs 3,00,000/paid to the Respondent workman as full and final settlement of all his claims/reliefs sought in all the pending litigations before the Labour Court and in the above Writ Petitions. The Respondent has agreed that he will not make any claim/demands in whatsoever manner against the Petitioner and accepts that the above amount is full and final settlement in all manner. The Respondent workman has also agreed to withdraw all other cases filed by him before the Labour Court and authorities.

6 -

NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

HC-KAR

In view of the settlement arrived between the parties, both the parties respectfully prays that this Hon'ble Court be pleased to pass order/Judgment in terms of this settlement by substituting/modifying the Award dated 25.10.2018 passed by the Principal Labour Court, Bengaluru in ID 07/2016 and consequently direct the Principal Labour Court, Bengaluru to refund Rs 75,000/- which deposited pursuant to the interim order dated 24.01.2025 in the name 'Mrs Preethi V Jain', in the interest of justice and equity."

This Court has perused the terms of the settlement and also made an enquiry with the parties present before the Court. The parties admit that they have voluntarily entered into settlement after understanding the terms and conditions.

The workman acknowledges receipt of

Rs.2,00,000/- through Demand Draft bearing No.461077, dated 07.02.2026 and acknowledges receipt of Rs.1,00,000/- through cash which is paid before this Court.

This Court does not find any impediment to accept

the joint memo.

Hence, the following:

7 - NC: 2026:KHC:7564 WP No. 46832 of 2019 C/W WP No. 2003 of 2025

HC-KAR

ORDER

(i) The impugned award dated 25.10.2018 on the file of Principal Labour Court, Bangalore in I.D.No.07/2016 is set aside in terms of joint memo.

(ii) Accordingly, the petition is disposed of in terms of joint memo.

Sd/-

(ANANT RAMANATH HEGDE) JUDGE

GVP List No.: 1 Sl No.: 36