THE MANAGER (HR) ERM HINDUSTAN AERONAUTICS LIMITED vs. SHANTHA KUMAR B

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF NOVEMBER 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE S. VISHWAJITH SHETTY W.A. NO.295 OF 2021 (S-RES) BETWEEN: THE MANAGER (HR) ERM HINDUSTAN AERONAUTICS LIMITED AIRCRAFT RESEARCH AND DESIGN CENTRE MARATHAHALLI POST BANGALORE-560 037 NOW REPRESENTED BY DEPUTY GENERAL MANAGER (HR) - ARDC.

... APPELLANT (BY MR. SYED KASNIF, ADV., FOR MR. PRADEEP S. SAWKAR, ADV.,) AND: 1. SHANTHA KUMAR B SON OF LATE C D BHOOPAL AGED ABOUT 63 YEARS RESIDING AT NO.20 MAIGUNDA DEVA MUDALIAR ROAD FRAZER TOWN, BENGALURU-560 005. 1(a). KARNINA SHANTHA KUMAR AGED ABOUT 54 YEARS

2 WIFE OF LATE SRI. SHANTHA KUMAR B NO.20, 2ND FLOOR MAIGANDA DEVEA MUDALIAR ROAD FRAZER TOWN BENGALURU - 560005. 1(b). AKSHAY SHANTHA KUMAR AGED ABOUT 30 YEARS S/O LATE SRI. SHANTHA KUMAR B NO.20, 2ND FLOOR MAIGANDA DEVA MUDALIAR ROAD FRAZER TOWN, BENGLAURU -560005. 1(c). RIA AGED ABOUT 26 YEARS D/O LATE SRI. SHANTHA KUMAR B NO.20, 2ND FLOOR, MAIGANDA DEVA MUDALIAR ROAD, FRAZER TOWN BENGLAURU - 560005.

... RESPONDENTS (BY MR. V.S. NAIK, ADV., FOR C/R1 & R1(a & b) MRS. MANJULA KULKARNI, ADV., FOR R1(a-c)) - - - THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 12.01.2021 PASSED BY THE LEARNED SINGLE JUDGE IN W.P. NO.45133/2014 AND ALLOW THIS APPEAL. THIS W.A. COMING ON FOR PRELIMINARY HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

3 JUDGMENT

This intra Court appeal has been filed against the order dated 12.01.2021 passed by the learned Single Judge by which the writ petition preferred by the respondent has been allowed.

"1) That Respondents 1(a) to 1(c) hereby agree to receive a sum of Rs.28,00,000/- (Rupees Twenty Eight Lakhs only) in full and final settlement towards back wages from 23.08.2014 to 31.05.2018, Earned/Privilege/Vacation leave encashment and all other retirement benefits except for balance gratuity.

2) That the parties agree that the aforesaid sum of Rs.28,00,000/- payable to the deceased Respondent towards back wages from 23.08.2014 to

4 31.05.2018 and retirement benefits as stated in para 5 above shall be spread over for the period between 23.08.2014 and 31.05.2018 and the payment shall be made over to Respondents 1(a) and 1(b), equally to be credited to their joint account (Karnina Shanth Kumar & Akshay Shanth Kumar) by RTGS, viz., A/c No.922010012128613 at Axis Bank, Cox Town Branch, with IFSC Code UTIB0000231 after deducting Tax at Source towards income tax.

3) That the Appellant has agreed to pay the aforesaid amount through RTGS after deducting Tax at Source within a period of 10 days from the date of acceptance of this Joint Memo by this Hon'ble Court.

4) That the parties agree that the deceased Sri Shantha Kumar B has already received the Provident Fund from the Trust and no further amount is due in this regard.

5) That as on 23.08.2014, when the deceased Sri Shantha Kumar B was relieved from service upon acceptance of resignation, he was entitled to receive gratuity in a sum of Rs.10,00,000/- which was duly settled, immediately thereafter. However, in view of the Amendment to the Payment of Gratuity Act whereby the maximum gratuity was increased to Rs.20,00,000/- and since the period between 23.08.2014 and 31.05.2018 has been directed to be treated as in service, the deceased would be entitled to receive additional gratuity of Rs.10,00,000/- Respondents 1(a) to 1(c) hereby accept the said sum of Rs.10,00,000/- in full and final settlement of gratuity and since it does not attract any tax, Appellant is hereby requested to make the said payment without deduction of any tax at source by crediting it to the joint account of Respondents 1(a) and 1(b) through RTGS as per details mentioned above.

6) That the Appellant accepts the said request and agrees to pay balance gratuity of Rs.10,00,000/- equally to Respondents 1(a) & 1(b) without deduction of tax at source by crediting the same to their aforesaid joint account by RTGS within 10 days from the date of acceptance of this Joint Memo by this Hon'ble Court.

7) That the parties agree that Respondents accept the aforesaid benefits in full and final settlement of all their claims in respect of the back wages and retirement benefits of the deceased Sri Shantha Kumar B and confirm that no further amounts are due on any account whatsoever from the Appellant. Respondents 1(a) to 1(c) hereby confirm that they will not institute any proceedings in future in respect of the matters settled hereunder."