IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF MARCH, 2019 BEFORE THE HON’BLE MR. JUSTICE R. DEVDAS WRIT PETITION NOS.4508-4518 OF 2016 (S-RES) BETWEEN:
1. Sri.K.Sampath S/o.Krishnappa, Aged about 67 years, No.19/1, Gokul Tower, 6th Main, Gandhinagar, Bengaluru-560 009 2. Sri.A.T.Mysuraiah S/o. Late Thimmaiah, Aged about 63 years, No.11(12), 8th Main, 9th Cross, Shivanagar, Rajajinagar, Bengaluru – 560 010 3. Sri.N.Ramakrishnaiah S/o. Nanjunde Gowda, Aged about 65 years, No.897, 1st Main, 5th Block, Vidyaranyapura, HMT Layout, Bengaluru – 560 097 4. Sri.Mohammed Ateeq Ahmed S/o. Late Mohammed Haneef, Aged about 63 years, No.111, Santa Clara Apartment, 3rd Cross, 18th Main, 4th T Block, Jayanagar, Bengaluru – 560 041 5. Sri.Devegowda S/o. Late Javare Gowda, Aged about 63 years, No.6, 4th Main Road, Byraveswara Nagar, Mudalapalya, Bengaluru – 560 072 6. Sri.M.R.Vishwanath S/o.M.V.Ram Rao, Aged about 63 years, No.37/567, Panchavarna, 13th A Cross, Bhuvaneshwari Nagar, HAF Post, Hebbal Kempapura, Dasarahalli, Bengaluru – 560 024 7. Sri.V.L.Jayaram S/o.Lakshmaiah, Aged about 60 years, No.156, 2nd Blcok, HMT Layout, Vidyanayapura, Bengaluru- 560 097 8. Sri.S.N.Badrinath S/o.Narasimha Shastry, Aged about 69 years No.43, 2nd Main, Venkatacharinagar, Lottegollahalli, RMV 2nd stage, Bengaluru – 560 094 9. Sri.N.Pillappa S/o. Nanjappa, Aged about 62 years, No.307, 6th Cross, 3rd Block, HMT Layout, Vidyanayapura, Bengaluru- 560 097 10. Sri.M.Muniyappa S/o.Munishamappa, Aged about 62 years, No.615, 3rd Cross, 7th Main, HMT Layout, R.T.Nagar, Bengaluru – 560 032 11. Sri.R.Aswath S/o. Late Rajappa, Aged about 62 years, No.103, 14th Main, 1st Block, HMT Layout, Vidyarayapura, Bengaluru – 560 097 ... Petitioners (By Sri.K.Srinivas, Advocate) AND:
1. Hindustan Machine Tools Ltd (MBX) No.59, HMT Bhavan, Bellary Road, Bengaluru – 560 032 Rep by its Chairman & Managing Director 2. The Managing Director HMT Machine Tools Ltd., No.59, HMT Bhavan, Bellary Road, Bengaluru – 560 032 3. The General Manager Hindustan Machine Tools Ltd (HMT) Bengaluru Complex, Jalahalli, Bengaluru – 560 013 ... Respondents (By Sri. T.Rajaram, Advocate for R1 to R3) These writ petitions are filed under Articles 226 and 227 of the Constitution of India praying to direct the respondent-company to consider the representations given by the petitioners dated 02.01.2016 at Annexure-C to N.
These writ petitions coming on for hearing on I.A. this day, the Court made the following:
ORDER R. DEVDAS J., (ORAL):
The petitioners are ex-employees of the respondents – Hindustan Machine Tools Limited. The grievance of the petitioners is that in terms of the settlement dated 23.04.1995, they were eligible for payment of the arrears, in terms of Clause 13 of the settlement for the period from 01.01.1992 to 31.03.1995, but the respondent–Company failed to clear the payment of arrears in respect of the petitioners herein.
2. Learned counsel for the petitioners placed reliance on a judgment of the Hon’ble Supreme Court in Civil Appeal Nos.6121-6158/2003 (arising out of SLP(C).No.14440-14477/2002) which was disposed of on 07.08.2003. The Civil Appeal was filed by the respondent – HMT Ltd., against the order passed by this Court and the High Court of Andhra Pradesh. The Learned counsel for the petitioners submits that the Hon’ble Supreme Court considered the contentions of the respondent-Company that Clause 13 of the settlement would provide that the payment of arrears was only permitted if there is improvement in the financial performance of the Company and the same is to be determined by periodical reviews.
3. The Hon’ble Supreme Court held that such contention was unsound. It was held that Clause 13, does not say that the disbursement of arrears would be made only after all accumulated losses were completely wiped out. As a consequence, the appeals filed by the respondent – Company was partly allowed and the Company was directed to disburse 55% of the arrears payable during the period from 01.01.1992 to 31.03.1995 to all eligible employees, to the extent of their eligibility within three months from the date of judgment. Further, balance amount of the arrears payable shall be computed and disbursed to all eligible employees in three equal annual installments on or before 31.03.2005, 31.03.2006 and 31.03.2007 respectively.
4. Learned counsel for the petitioners submits that there is a clear direction by the Hon’ble Supreme Court that the disbursement of arrears shall be to all eligible employees. It was submitted that the petitioners herein were not parties before the Hon’ble Supreme Court and therefore, they made representation to the respondent – Company seeking arrears in terms of the direction issued by the Hon’ble Supreme Court. The respondent – Company has not considered the representation of the petitioners and the arrears remain unpaid.
5. Learned counsel for the respondent-Company submits that the financial condition of the respondent – Company is still very poor and the Company is not in a position to clear the arrears of the petitioners. Learned counsel for the respondent – Company further submits that the respondent-Company has filed statement of objections while placing on record the balance sheet and assets and liability of the Company to buttress his contention that the Company’s financial position is still not well off.
6. Having herd the learned counsel on both the sides and on perusing the writ papers, this Court is of opinion that the respondent – Company is liable to pay the petitioners in terms of the judgment of the Hon’ble Supreme Court. At this juncture, learned counsel for respondent – Company submits that 55% of the arrears in terms of the judgment dated 07.08.2003 has been paid to all eligible employees. However, it is an admitted fact that the arrears payable in terms of the judgment of the Hon’ble Supreme Court is yet to be paid to several of the employees. Nevertheless, the respondent – Company is duty bound to consider the representation given by the petitioners and pay the arrears as directed by the Hon’ble Supreme Court. The representation given by the petitioners have been produced at Annexure – C to N in the writ petition.
7. The respondent – Company is, therefore, directed to consider the representation of the petitioner and pay the arrears within a period of three months from the date of receipt of copy of this order. If the respondent – Company has not paid the arrears in terms of the judgment of the Hon’ble Supreme Court as stated supra, the respondent-Company is directed to give a reply to the petitioners giving valid reasons and statement of facts as to whether similarly placed employees who were before the Hon’ble Supreme Court were paid the arrears or not.
The petitions are accordingly disposed of.
8. In view of disposal of the writ petitions, I.A.No.1/2019 does not survive for consideration and the same is accordingly disposed of.
SD/- JUDGE KTY.