Smt. S . Nirmala v. M/Syokogawa India Ltd

NC:(2026:KHC:22187( WP(No.(13029(of(2023( C/W(WP(No.(9847(of(2022( , ,,HC-KAR( ( ( IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU(

RDDATED(THIS(THE(23 (DAY(OF(APRIL,(2026(

BEFORE( THE(HON'BLE(MR.(JUSTICE(ANANT(RAMANATH(HEGDE( WRIT(PETITION(NO.(13029(OF(2023((L-RES)( C/W( WRIT(PETITION(NO.(9847(OF(2022((L-RES)( ( IN(WP(No.(13029/2023:( ( BETWEEN:(( ( SMT.,S.,NIRMALA, W/O,ANTONY,RAJ,, AGED,ABOUT,57,YEARS,, TH R/AT,NO.402,,9 ,MAIN,ROAD,, NEW,AVALAHALLI,,BDA,LAYOUT,, BENGALURU-560,085., …PETITIONER, (BY,SRI.,A.J.,SRINIVASAN,,ADVOCATE), ( AND:( (Digita llytisigned by0BELUR M/S.,YOKOGAWA,INDIA,LTD.,(,A,CO.,REGISTERED, RANGADHAMA UNDER,THE,INDIAN,COMPANY'S,ACT.),, STNANDINI PLOT,NO.96/1,,1 ,PHASE,,ELECTRONIC,CITY,,

Location:0HIGH HOSUR,ROAD,,BENGALURU-560,100,, COURT0OF REPRESENTED,BY,ITS,MANAGING,DIRECTOR., KARNATAKA …RESPONDENT, (BY,SRI.,PRASHANTH,B.R.,,ADVOCATE), , , THIS,W.P.,IS,FILED,UNDER,ARTICLES,226,AND,227,OF, THE, CONSTITUTION, OF, INDIA, PRAYING, TO, QUASHING, THE, PORTION, OF, THE, AWARD, PASSED, BY, THE, SECOND, ADDITIONAL,LABOUR,COURT,,BANGALORE,,DATED,24.02.2022, IN, REF.NO.21/2017,, AN, ORIGINAL, COPY, OF, WHICH, IS, AT, ANNEXURE-A,, ONLY, TO, THE, EXTENT, AGGRIEVED, OF, NOT, SPECIFYING, THAT, THE, PETITIONER, IS, ENTITLED, TO, ALL, NC:(2026:KHC:22187( WP(No.(13029(of(2023( C/W(WP(No.(9847(of(2022( , ,,HC-KAR( ( ( CONSEQUENTIAL,BENEFITS,AND,LIMITING,THE,BACK,WAGES, TO, ONLY, 75%,BACKWAGES, AND, MODIFY, THAT, PORTION, OF, THE, AWARD,, GRANTING, AND, SPECIFYING, THAT, THE, PETITIONER,WORKMAN,IS,ENTITLED,TO,ALL,CONSEQUENTIAL, BENEFITS,,INCLUDING,FULL,BACK,WAGES,,FROM,THE,DATE,OF, HER, ILLEGAL, UNJUSTIFIED, TERMINATION, TILL, HER, REINSTATEMENT,AND,GRANT,SUCH,OTHER,RELIEF,OR,RELIEFS, AS,THIS,HON'BLE,COURT,MAY,BE,PLEASED,TO,GRANT.,, , (IN(WP(NO.(9847/2022: , BETWEEN:( , , M/S,YOKOGAWA,INDIA,LTD, THNO.583,,19 ,MAIN,ROAD,, VYALIKAVAL,,NAGAWARA,, VEERANNAPALYA,, ARABIC,COLLEGE,POST,, BENGALURU-560,045, REPRESENTED,BY,ITS,,COMPANY,SECRETARY, COMPANY,REGISTERED,UNDER,THE,, COMPANIES,ACT,1951., ...PETITIONER, (BY,SRI.,B.R.,PRASHANTH,,ADVOCATE,FOR, ,,,,,,SMT.,SUNITA,SRINIVAS,,ADVOCATE), ( AND:( , , SMT.,S.,NIRMALA, AGED,ABOUT,56,YEARS,, THNO.402,,9 ,MAIN,ROAD,, NEW,AVALAHALLI,EXTENSION,, BENGALURU-560,085., ...RESPONDENT, (BY,SRI.,A.J.,SRINIVASAN,,ADVOCATE,FOR,C/R), , ,,,,,,,THIS,W.P.,IS,FILED,UNDER,ARTICLES,226,AND,227,OF, THE, CONSTITUTION, OF, INDIA, PRAYING, TO,QUASHING,THE, AWARD,DATED,24.02.2022,AS,AT,ANNEXURE-A,PASSED,BY, THE, PRESIDING, OFFICER,, SECOND, ADDITIONAL, LABOUR, COURT,, BANGALORE, IN, REF., NO.21/2017,, DIRECTING, THE,

PETITIONER TO REINSTATE THE RESPONDENT WITH CONTINUITY OF SERVICE WITH 75% BACKWAGES AND ETC.

THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

ORAL ORDER

These two writ petitions are filed assailing the award dated 24.02.2022 passed by the Second Additional Labour Court, Bengaluru in Reference No.21/2017. One petition is filed by the petitioner - workman and another petition is filed by the respondent - management to the extent of disallowing the claim of both parties.

¶2The workman and an authorized representative of the management are present and they are identified by their respective counsel.

¶3Learned counsel for the workman and the management have submitted a joint memo reporting settlement. The joint memo is signed by the workman as

well as the authorized representative of the management and the respective counsel.

¶4The Court has perused the terms and conditions of the settlement. The terms of the settlement are as under: "1. It is agreed that compensation amount of INR 33,05,064/- (Rupees Thirty Three Lakhs Five Thousand Sixty Four Only) shall be paid to the Respondent towards full and final settlement of all the disputes and claims made in W.P.No.9487/2022 and W.P.No.13029/2023, including consequential benefits and full backwages arising out of discharge order dated

14.06.2016 and Award dated

24.02.2022 passed by the Second Additional Labour Court and all other legal benefits, including gratuity, provident fund, bonus, encashment of leave etc.

¶2It is submitted that the Respondent has agreed to receive compensation of a Gross amount of INR 33,05,064/- (Rupees Thirty Three Lakhs Five Thousand Sixty Four Only) and Net amount (post deduction of applicable TDS as per provisions of the Income Tax Act) of INR 28,03,042 (Rupees Twenty Eight Lakh Three Thousand and Forty Two Only) towards full and final settlement of all the disputes and claims made in W.P.No.9487/2022 and W.P.No.13029/2023, including consequential benefits and full backwages arising out of discharge order dated 14.06.2016 and Award dated 24.02.2022 passed by the Second Additional Labour Court and all other legal benefits, including gratuity, provident fund, bonus, encashment of leave etc.

Detailed break-up: Sl.No. Particulars Amount

(INR)

¶1Compensation (salary, etc.)* 29,69,729

¶2Leave encashment 69,969

¶3Gratuity 1,51,062

¶4Other allowances etc. 1,14,304

¶5Gross Total (1 + 2 + 3 + 4) 33,05,064

¶6Income Tax Deduction (5,02,022)

¶7Net Total/Payable (5-6) 28,03,042

*Computation of Compensation at Sl.No.1 of above table

From Date 15-06-2016 To Date

12.04.2022 Gross salary per year Company PF contribution (if employee was in employment) 15-Jun-16 31-Mar-17 3,87,683 17,100 01-Apr-17 31-Mar-18 4,87,992 21,600 01-Apr-18 31-Mar-19 4,87,992 21,600 01-Apr-19 31-Mar-20 4,87,992 21,600 01-Apr-20 31-Mar-21 4,87,992 21,600 01-Apr-21 31-Mar-22 4,87,992 21,600 01-Apr-22 12-Apr-22 16,266 28,43,909 1,25,820

(A) Total Gross salary from June 2016 to April 2022 INR 29,69,729

For the period 13th April 2022 till date of superannuation i.e. 31.05.2025, the respondent was paid 100% salary and PF contribution, hence no amount or bifurcation needs to be paid or shown.

¶3In pursuance of above agreement, Petitioner has paid the Respondent a Net amount (post deduction of applicable TDS as per the provisions of the Income Tax Act) of INR 28,03,042 (Rupees Twenty Eight Lakh Three Thousand and Forty-Two Only) by way of two Account Payee Cheques bearing:

a. No.561672 dated 16th April, 2026 having amount of INR 1,51,062 (Rupees One Lakh Fifty-One Thousand and Sixty-Two Only) drawn in favour of S. Nirmala on State Bank of India, and

b. No.543859 dated 16th April 2026 having amount of INR 26,51,980 (Rupees Twenty-Six Lakh Fifty-One Thousand Nine Hundred and Eighty Only) drawn in favour of S. Nirmala on State Bank of India.

towards full and final settlement of all the issues and disputes, including claim for full backwages and all other legal benefits, including gratuity, provident fund, bonus, encashment of leave etc.

¶4The above amount of compensation is deemed to be spread over for a period from the date of order of discharge i.e., 14.06.2016 till the date of settlement and shall not be treated as wages for any statutory purposes.

¶5The Respondent agrees that there are no more claims whatsoever against the Petitioner Company and that she shall not raise any dispute before any Authorities or Court of law against the Respondent.

¶6The Respondent agrees that she has entered into settlement voluntarily and without force and undue influence and after fully understanding the contents and consequences thereof.

¶7Both the parties submit that this Hon'ble Court may be pleased to order 'Spread over' of the settlement amount for the date of her discharge from service 14-05-2016 till 31-05-2025 which is the date she attained the age of 60 years, the date of superannuation, in order for her to avail relief under Section 89 of the Income Tax Act, 1961 as per the judgement of the Hon'ble Supreme Court in Sundaram Motors Vs. Ameer Jan 1985 (I) SCC 118.

In view of the settlement arrived at, both the parties respectfully pray that this Hon'ble Court may be pleased to dispose of above W.P.No.9487/2022 and W.P.No.13029/2023, in the interest of justice and equity."

¶5The Court has also perused Clause 7 of the joint memo. The said Clause 7 would refer to the 'Spread Over' of the settlement amount from 14.05.2016 (the date on which the workman was discharged from service) to

31.05.2025 (the date on which she attained the age of 60, i.e., the age of superannuation) in order to avail the relief under Section 89 of the Income Tax Act, 1961 as per the judgment of the Apex Court in Sundaram Motors Pvt. Ltd. Vs Ameerjan and another1.

¶6The Court is of the view that the workman is entitled to such benefit under the provisions of the Income Tax Act, 1961 and the Income Tax Act, 2025.

¶7The workman admits the receipt of two cheques for Rs.1,51,062/- and for Rs.26,51,980/-. Both cheques

1 1985 (1) SCC 118

are drawn in favour of the workman on State Bank of India.

¶8The workman is before the Court and has submitted that he has voluntarily entered into settlement. This Court does not find any impediment to accept the terms of the settlement.

¶9Under these circumstances, impugned Award dated 24.02.2022 in Reference No.21/2017 on the file of the Second Additional Labour Court, Bengaluru is set aside and substituted by the settlement.

¶10The petitions are disposed of in terms of the settlement.

Sd/- (ANANT RAMANATH HEGDE) JUDGE

SA List No.: 1 Sl No.: 39