Karnataka High Court
M/S. Ibm India Limited vs L.Thomas Selvan on 27 February, 2025
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WP No. 10715 of 2013
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 27TH DAY OF FEBRUARY, 2025
BEFORE
THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE
WRIT PETITION NO. 10715 OF 2013 (L-TER)
BETWEEN:
M/S. IBM INDIA LIMITED,
PRESTIGE TOWERS LEVEL 7,
NO.99, RESIDENCY ROAD,
BANGALORE-560025, NOW AT EMBASSY GOLF
LINKS BLOCK A, 3RD FLOOR
INTERMEDIATE RING ROAD,
DOMLUR, BANGLORE-560071,
REPRESENTED BY ITS DIRECTOR
FINANCE THROUGH HIS POWER OF ATTORNEY HOLDER
MR LAHAR APAIAAH.
...PETITIONER
(BY SRI JOSHUA HUDSON SAMUEL, ADVOCATE)
AND:
L.THOMAS SELVAN,
S/O S N LAZAR, R/A NO.14/2, II FLOOR,
Digitally M E G OFFICERS COLONY,
signed by C BANGALORE-560033, NOW AT C/O LAWRENCE,
HONNUR NO.407, TRINITY ENCLAVE, OLD MADRAS ROAD,
SAB C V RAMAN NAGAR POST,
Location: BANGALORE-560093.
HIGH COURT ...RESPONDENT
OF (BY SRI A J SRINIVASAN, ADVOCATE)
KARNATAKA THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE
RECORDS LEADING TO THE PASSING OF THE AWARD DATED
17.12.12 BY THE 10ST ADDL. LABOUR COURT, IN ID NO.353/06, AT
ANNX-K AND ETC.
THIS PETITION, COMING ON FOR REPORTING SETTLEMENT
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
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WP No. 10715 of 2013
CORAM: HON'BLE MR JUSTICE ANANT RAMANATH HEGDE
ORAL ORDER
Heard learned counsel appearing for the petitioner as
well as the learned counsel appearing for the respondent. The
representative of the respondent is also present before the
Court. Both the learned counsel and the parties jointly submit
before the Court that the dispute between the parties is settled
and accordingly, they have filed the joint memo enclosing the
settlement agreement.
2. It is noticed that the joint memo is signed by the
authorised representative of the petitioner-Company, and the
respondent, in addition to the learned counsel for the petitioner
as well as the learned counsel for the respondent.
3. Petition is filed challenging the award for
reinstatement of respondent passed by the Labour Court in
I.D.No.353/2006 on the file of the I Additional Labour Court at
Bengaluru.
4. The terms of agreement reads as under:
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WP No. 10715 of 2013SETTLEMENT AGREEMENT
This Settlement Agreement (“Settlement Agreement”) is executed
on this 27th day of February, 2025, (“Effective Date”) by and
between:
(1) IBM INDIA PVT. LIMITED, a company incorporated under
the Companies Act, 1956, having its registered office at
Subramanya Arcade, 12, Bannerghatta Main Road, Bangalore 560
029, India, (hereinafter called “IBM India”, which expression shall,
unless excluded by or repugnant to the subject or context, be
deemed to include its holding, subsidiary, fellow subsidiary, group,
sister, associated and affiliated companies, bodies corporate and
entities, and their respective successors and assigns) represented
by its ______, ____ OF THE ONE PART, and(2) L. THOMAS SELVAN, C/o Lawrence, No. 407, Trinity
Enclave, Old Madras Road, CV Raman Nagar Post, Bangalore-
560093 (hereinafter called “the ex-employee”), which expression
shall, unless excluded by or repugnant to the subject or context, be
deemed to include his heirs, executors and administrators) OF
THE OTHER PART.
Each of the parties may be hereinafter referred to as a “Party” or
jointly referred to as the “Parties”.
WHEREAS
1. The ex-employee approached the First Additional Labour Court
(hereinafter referred to as “Labour Court”) at Bangalore, under
Section 10(4-A) of the Industrial Disputes Act 1947, by way of
I.D. No.353/2006 alleging that his services were illegally
terminated by IBM India vide Termination Order dated
05.11.2001 and claimed the relief of reinstatement with back
wages etc. As per the directions of the Labour Court, IBM India
had paid a total sum of Rs. 14,10,000/- (Rupees Fourteen Lakhs
Ten Thousand Only) for the period from January 2006 till
November 2012 to the ex-employee by way of interim relief
during the pendency of the dispute.
2. The Labour Court passed an award dated 17.12.2012 directing
IBM India to reinstate the ex-employee into service with back
wages and other consequential benefits. (“the Impugned Award”).
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3. IBM India thereafter filed a Writ Petition (W.P. No.10715 of
2013) before the Hon’ble High Court of Karnataka, at Bangalore
challenging the aforesaid Impugned Award (“Writ Petition”) and
vide interim order dated 04.03.2013, the Hon’ble High Court
stayed the Impugned Award of the Labour Court, subject to
payment under Section 17-B of the Industrial disputes Act, 1947.
As per the directions of the Hon’ble High Court of Karnataka, in
W.P. 41066 of 2014(L-PF), IBM India had paid a total sum of Rs.
70,84,487.86/- (Rupees Seventy Lakhs Eighty-four Thousand four
hundred and eighty seven and Paise Eighty Six only) from January
2013 till February 2025 to the ex-employee under Section 17-B of
the Industrial Disputes Act, 1947.
4. Pursuant to discussions between the Parties on various issues with
respect to the disputes between them, it has been mutually agreed
to resolve the matter amicably on the terms and conditions
contained herein.
NOW THEREFORE THIS SETTLEMENT AGREEMENT
WITNESSETH:
1. The parties have agreed to settle their disputes and the ex-
employee has agreed to receive a total sum of Rs. 54,00,000/-
(Rupees Fifty Four Lakhs only) (hereinafter referred to as the
“Settlement Amount”) in full and final settlement of all his
claims/ demands in respect of his erstwhile employment with
IBM.
2. The Parties undertake to take all necessary steps to place this
settlement on record and take steps for closure / withdrawal of
the Writ Petition within one week of execution of this Settlement
Agreement and to take any other necessary steps, including
signing and filing such Joint Memos, Applications/ Petitions
confirming the settlement of disputes between the Parties.
3. IBM India agrees to pay the Settlement Amount after deduction
of applicable taxes, in the following manner;
a) Rs. 22,26,512/- after withholding tax and cess of Rs. 7,73,488/-
within seven working days from the Effective Date.
b) Rs. 21,07,500/- after withholding tax and cess of Rs. 2,92,500/-
on or before 20.04.2025.
The ex-employee intends to seek permission from the Hon’ble
High Court of Karnataka to spread over the Settlement Amount
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from the date of his separation from IBM i.e., 05.11.2001 till the
date of this settlement (Effective Date) in order to enable the ex-
employee to avail relief under Section 89 of the Income-tax Act
1961 as per the Judgment of the Hon’ble Supreme Court in
Sundaram Motors Vs. Ameer Jan 1985 (1) SCC 118.
4. The final payment under Section 17-B of the Industrial disputes
Act, 1947 of Rs.48,955/- for the month of March 2025, will be
paid as usual. There will be no further payments to the ex-
employee under Section 17-B of the Industrial Disputes Act, 1947,
or towards salary or any other emoluments whatsoever, relating to
employment with IBM India.
5. The Parties agree that the ex-employee will be treated as having
resigned from the services of IBM India on and with effect from
05.11.2001 and the ex-employee shall, for all intents and purposes,
be treated as if he had resigned from the services of IBM India on
05.11.2001.
6. Upon receipt of the aforesaid Settlement Amount, the ex-
employee will have no further claims whatsoever against IBM
India with respect to or arising from his employment and
termination, including but not limited to any illegality of
termination or resignation, back wages, continuity of service, any
notional or consequential benefits (including without limitation
stock or equity grants or awards, pensions, superannuation, or
gratuity), including his terminal benefits and waives and gives up
all any claims arising out of or relating in any manner to his
employment with, or separation from IBM India. On payment of
the aforesaid Settlement Amount neither party will prosecute,
proceed with or assert any existing or further claims they may
have against each other with respect to or arising from the
employment with IBM India or the subsequent termination
thereof.
7. The ex-employee acknowledges and agrees that he does not have
any further claims whatsoever against IBM India under any
applicable labour legislations, including, without limitation, The
Industrial Disputes Act, 1947, The Employees Provident Funds &
Miscellaneous Provisions Act, 1952, the Minimum Wages Act,
1948, Payment of Bonus Act, 1965, Payment of Gratuity Act,
1972, Payment of Wages Act, 1936, and other applicable labour
laws. The ex-employee also acknowledges and agrees that he does
not have any claims against IBM India for any breach of the terms
and conditions of his employment, whether express or implied.
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8. The ex-employee also acknowledges and agrees that he does not
have any claims, whether civil or criminal, against IBM India with
respect to his employment with, and termination from, IBM India.
The ex-employee agrees that he shall not lodge any civil or
criminal claims against IBM India or take any actions thereto
(including filing of a civil lawsuit, lodging of a police complaint, or
other similar actions), at any time after the execution of this
Settlement Agreement.
9. In view of the terms of this settlement, the ex-employee has no
objection for the Hon’ble High Court to pass appropriate Orders
to set aside the Impugned Award.
10. Each party agrees not to publicize or disclose the terms and
conditions of this Settlement Agreement, any documents or
correspondence pertaining to this Settlement Agreement, or the
underlying circumstances except with the prior written consent of
the other or as required by law or as required to implement the
terms of this Settlement Agreement.
11. If any provision(s) of this Settlement Agreement or the application
thereof is held invalid, the invalidity shall not affect other
provisions or applications of the Settlement Agreement which can
be given effect without the invalid provision(s) or application and
to this end, the provisions of this Settlement Agreement are
declared to be severable.
12. Neither this Settlement Agreement, nor anything contained herein,
nor any action taken by either party in performance of their
obligations hereunder shall be construed as evidence of the
validity of any claims by either party against the other or an
admission of the same by either party.
13. This Settlement Agreement may not be changed or modified in
any manner, orally or otherwise, except by an instrument in
writing of equal formality which is signed by the Parties or their
duly authorized agents.
14. In addition to the above, the Parties agree that:
a) Each Party shall have the right to appropriate injunctive relief,
specific performance and other remedies to enforce the provisions
of this Settlement Agreement.
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b) If either party initiates proceedings to enforce this Settlement
Agreement, and such Party prevails, the other Party will pay all
costs and expenses incurred by the first Party in connection with
such proceeding, including reasonable attorneys’ fees. Such
proceedings shall only be initiated after the first party has
requested the other party to comply with the terms of this
Settlement Agreement, and the defaulting party has failed to
comply with the terms of this Settlement Agreement.
15. Both the Parties hereby acknowledge that each has been provided
sufficient time to review this Settlement Agreement and consult
their legal advisors, and that this Agreement will be construed
neither against nor in favor of either Party, but rather in
accordance with its fair meaning.
16. This Agreement shall be binding upon and inure to the benefit of
the Parties hereto and their respective heirs, legal representatives,
successors and assigns.
17. This Agreement shall be construed as a whole according to its fair
meaning and shall be governed by the laws of India. The courts at
Bangalore shall have exclusive jurisdiction to adjudicate any
dispute or difference between the Parties arising from this
Settlement Agreement.
5. This Court has gone through the terms of
settlement entered into between the parties. It is noticed that
the respondent has agreed to receive Rs.54.00 lakhs towards
full and final settlement of all his claims and payment schedule
is also provided in the agreement.
6. After having gone through the terms and conditions
of settlement, this Court does not find any impediment what-
so-ever to accept the settlement. Accordingly, same is
accepted.
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7. The impugned award is substituted in terms of
settlement arrived at between the parties.
8. This Court has also perused clause No.3(b) of the
agreement. The relief is sought to spread over the settlement
amount from the date of separation i.e. 05.11.2020 till the date
of settlement to enable to the ex-employee to claim the relief
under Section 89 of the Income Tax Act, 1961 in terms of the
law laid down by the Apex Court in SUNDARAM MOTORS
PVT. LTD. vs AMEERJAN AND ANR. (AIR 1985 SC 144) as
far as the benefit sought to be conferred on respondent in
terms of clause No.3(b).
9. As far as the benefits sought in terms of
aforementioned clause No.3(b) is concerned, the respondent is
entitled to such benefits as applicable under the provisions of
Sd/-
(ANANT RAMANATH HEGDE)
JUDGE
BRN/List No.: 1 Sl No.: 22
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