M/S. Simpson and Company Ltd., Vs M/S.Addison Paints & Chemicals — Madras HC (2025) — LawSathi Research

M/S. Simpson and Company Ltd., Vs M/S.Addison Paints & Chemicals — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Both writ petitions disposed of in terms of the settlement (no costs; connected M.P. closed). Final operative para-4 (substituted on 11.06.2025) records the writ petition as allowed with directions: deposit of Rs.35 Lakhs by the petitioner-management to the credit of I.D. No.83/1984 within two weeks; respondents/Association to furnish within four weeks the list of members including legal heirs of deceased workmen with entitlement statements, plus bank details; Tribunal to disburse proportionately to each workman's bank account within four weeks thereafter; upon deposit, quashing of the prosecution under G.O. Ms. No.205 dated 28.06.2011 and of C.C. No.4168/2011 (Metropolitan Magistrate No.2, Chennai); on failure to deposit, the G.O. and the criminal case revive; Registry to issue a fresh corrected order copy.

Issue for consideration

Whether G.O. (D) No.205 dated 28.6.2011 passed by the 2nd respondent (Principal Secretary to Government, Labour and Employment Department) should be called for and quashed, as prayed in WP No.23891 of 2011. +2 more

Court's answer

Direction (v): on the petitioner making the prescribed deposit, the prosecution launched against the petitioner for non-payment of the amount by issuance of G.O. Ms. No.205 dated 28.06.2011 shall stand quashed.

Ratio / Principle

As both sides submitted that the issue between the parties had been settled, the writ petitions were not adjudicated but disposed of in terms of the settlement reached between them, with no costs, and the connected miscellaneous petition was closed (common order dated 21.04.2025).

Key takeaways

The terms and conditions of the settlement, reproduced on 25.04.2025 to form part of the order dated 21.04.2025, bound the management to comply with its filed affidavit within two weeks and required the union to furnish the list of members including legal heirs of deceased workmen and a statement of entitlement, on the basis of which worksheet the amount was to be deposited to all workmen.ratio¶287
Para-4 of the order dated 25.4.2025 was substituted with a corrected operative paragraph recording the terms and conditions filed by the petitioner.ratio¶11
The substituted operative paragraph (corrected on 11.06.2025) records the terms and conditions as filed by the petitioner, as extracted, and states that the writ petition is allowed with the following directions.

Detailed headnote1 paragraphs

Madras High Court (single Bench, M. Dhandapani, J.) - W.P. Nos. 23891 & 26098 of 2011 (with M.P. No.1 of 2011), involving M/s. Simpson And Company Ltd. (Addisons Paints and Chemicals Division) and the Addisons Paints and Chemicals Ltd., Assistants' Association, with the Government of Tamil Nadu (Labour and Employment Department) as co-respondent. By common order dated 21.04.2025 the writ petitions - one seeking quashment of G.O. (D) No.205 dated 28.6.2011 and the other seeking payment of dues under the award in I.D.No.83/84 dated 31.12.1992 to association members - were disposed of in terms of an agreed settlement, without adjudication. The settlement terms were incorporated on 25.04.2025 to form part of that order, and on mention on 11.06.2025 para-4 of the order dated 25.04.2025 was substituted to record expressly: (i) deposit by the management of Rs.35,00,000/- to the credit of I.D. No.83/1984 within two weeks; (ii) submission by the respondents/Association, within four weeks, of the list of workmen members including legal heirs of deceased workmen with an entitlement statement; (iii) furnishing of workmen's bank details; (iv) proportionate disbursement by the Tribunal to each workman's bank account within four weeks thereafter; (v) upon such deposit, quashing of the prosecution launched pursuant to G.O. Ms. No.205 dated 28.06.2011 and of C.C. No.4168/2011 pending before the Metropolitan Magistrate No.2, Chennai; and (vi) revival of the G.O. and the criminal case on failure to deposit. Registry directed to effect the corrections and issue a fresh order copy.

Procedural history

How this case reached the court

AI extract

Order under challenge
G.O. (D) No.205 dated 28.6.2011 issued by the 2nd respondent (Principal Secretary to Government, Labour and Employment Department), sought to be quashed in WP No.23891 of 2011; pursuant to this G.O. (printed elsewhere as G.O. Ms. No.205) prosecution was launched against the petitioner for non-payment of amounts, and C.C. No.4168/2011 was pending before the Metropolitan Magistrate No.2, Chennai.¶117
Government of Tamil Nadu - Labour and Employment (A1) Department (2nd respondent in WP No.23891 of 2011) · 28.6.2011
Prior proceeding
An award was made in Industrial Dispute I.D.No.83/84 dated 31.12.1992, with dues payable to the members of the petitioner Association; WP No.26098 of 2011 sought enforcement of payment of these dues with restitutionary compensation and exemplary costs.¶120
Prior proceeding
Cause title of the petitioner in WP No.23891 of 2011 was amended vide order dated 20.06.2023 made in W.M.P.No.17234 of 2023.¶66
Prior proceeding
In WP No.26098 of 2011 the petitioner (Association) was amended as per order dated 19.01.2024 in W.M.P.No.20988 of 2023, and R-2 (M/s.Simpson and Co.Ltd.) was likewise amended by the same order.¶225
Prior proceeding
Prosecution had been launched against the petitioner pursuant to G.O. Ms. No.205 dated 28.6.2011, with C.C. No.4168/2011 pending; the counsel for the petitioner complained that the withdrawal of this prosecution and quashment of the criminal case were not reflected in para-4 of the order dated 25.4.2025 and prayed for correction.¶6
Prior proceeding
By common order dated 21.04.2025, on the joint submission that the issue between the parties had been settled, both writ petitions were disposed of in terms of the settlement, with no costs, and the connected miscellaneous petition was closed.¶151
Prior proceeding
By order dated 25.04.2025, at the request of counsel for the petitioners, the terms and conditions of the settlement were scanned, reproduced and incorporated so as to form part of the final order dated 21.04.2025.¶282
Prior proceeding
The reproduced settlement terms directed the management (WP No.23891 of 2011) to comply with its affidavit within two weeks, and the union to furnish the list of members including legal heirs of deceased workmen with a statement of entitlement, on whose basis the amount was to be deposited to all workmen.¶287
Prior proceeding
On mention on 11.06.2025, counsel pointed out that the petitioner's affidavit regarding deposit of Rs.35 Lakhs for disbursal to workmen had been taken on record but was not explicitly incorporated in para-4 of the order dated 25.4.2025; the respondent/Association raised no objection to the correction.¶5
Prior proceeding
On 11.06.2025 this Court substituted para-4 of the order dated 25.4.2025 with a detailed operative paragraph carrying the deposit, furnishing, disbursal, quashment and revival directions, and directed the Registry to carry out the corrections and issue a fresh order copy.¶11
Prior proceeding
The Registry was directed to carry out the corrections in the order dated 25.4.2025 and issue a fresh order copy to the parties.¶23