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2025 Supreme(Kar) 1596

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ANANT RAMANATH HEGDE, J.
Mr Ramamurthy C K – Appellant 
Versus 
Bosch Limited  - Respondent 
WRIT PETITION NO.17695 OF 2021 (L-RES) C/W WRIT PETITION NO.12656 OF 2021 (L-RES), WRIT PETITION NO.21703 OF 2021 (L-RES), WRIT PETITION NO.23395 OF 2021(L-RES), WRIT PETITION NO.23730 OF 2021(L), WRIT PETITION NO.23786 OF 2021(L-RES), WRIT PETITION NO.1434 OF 2022(L-RES)
Decided on : 07-08-2025

Advocates Appeared:
For the Appellant :SMT PRAMILA NESARGI, SR. ADV. A/W SRU GEORGE ANTHONY CRUZ, ADVOCATE)
For the Respondent: SRI KASTURI, SENIOR ADV. A/W SMT SUBHA ANANTHI, SRI PRINCE ISAAC, AGA

Joint requests for conciliation can occur post-failure reports, and the Government must critically assess any settlement's validity, especially regarding claims of coercion.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 11, 12, 18, and 19 - Petitioners challenged the validity of the settlement dated 08.02.2017 accepted by the Deputy Labour Commissioner - Allegations of coercion in signing the settlement - Employer contended the agreement was binding; previous conciliations were valid - Court found the appropriate Government did not sufficiently assess the validity of the settlement before referring disputes for adjudication. (Paras 18, 49, 81)

Facts of the case:
Former employees of the respondent company contested the acceptance of a settlement by the Conciliation Officer regarding their claims post-retrenchment, citing coercion. (Paras 2, 12)

Findings of Court:
The impugned Reference Orders dated 20.11.2019, 09.03.2021, and 28.06.2021 were set aside for insufficient examination by the appropriate Government. (Paras 81, 82)

Issues: Whether a subsequent joint petition for conciliation is permissible after a failure report is sent; If the Government adequately assessed the settlement's validity. (Paras 23, 34)

Ratio Decidendi: The Court found that even after a failure report, the Government can allow a second conciliation upon a joint request, and it must critically examine disputes over a settlement's validity rooted in claims of coercion before arbitration. (Paras 28, 68)

Result: Writ petitions by workmen dismissed; management's petitions allowed in part, with disputes remitted to the Government. (Paras 82)

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ORDER :

ANANT RAMANATH HEGDE, J.

These two batches of Writ Petitions involve petitions by both the Employer and the Workmen.

(i) 92 workmen filed Writ Petition No.17695/2021.

(ii) 40 workmen filed Writ Petition No.12656/2021, and one of the petitioners died during the pendency of the petition.

(iii) 10 workmen filed Writ Petition No.21703/2021

(iv) 23 workmen filed Writ Petition No.1434/2022. In all, 165 former workmen of the respondent company are the petitioners in the aforementioned writ petitions.

2. In all four petitions referred to above, workmen have assailed the validity of the settlement dated 08.02.2017, wherein the Deputy Labour Commissioner, Region- 2, Bengaluru/the Conciliation Officer has accepted the settlement said to have been entered into between the Workmen and the Management.

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3. Writ Petition No.23395/2021 is filed by the Company against 110 workmen assailing the order dated 28.06.2021, in LD-IDM/334/2021-LD-DO-6 passed by the appropriate Government, referring the dispute for adjudication pending in Ref.No.11/21.

4. Writ Petition No.23786/2021 is filed by the Company against 40 workmen, assailing the reference order dated 09.03.2021 in LD-IDM/104/2021-LD-DO-6 passed by the appropriate Government referring the dispute for adjudication pending in Ref.No.7/21.

5. Writ Petition No.23730/2021 is filed by the Company against 10 workmen, assailing the reference order dated 20.11.2019 in LD-IDM/371/2019-LD.DO.5.L.S passed by the appropriate Government referring the dispute for adjudication pending in Ref.No.49/19

6. For the sake of convenience, the employees are to as Workmen and the Company is referred to as the Employer in all petitions.

7. Heard the learned Senior counsel Smt.Pramila Nesargi for the Workmen, learned senior counsel Sri K.Kasturi for the Employer, and the learned Additional Government Advocate for the officials under the Industrial Disputes Act, 1947 (for short, ‘Act, 1947’).

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8. Before referring to the rival contentions, it is necessary to set out the factual background.

9. Workmen who have filed the petitions were former employees of Bosch Limited and claim to have worked for the Company for more than 10 years. The Employer claims that the Workmen were contract employees, hired on a contract basis.

10. It appears that an industrial dispute arose between the Workmen and the Employer on the premise that the Workmen were denied employment from 16.08.2015. Before the Conciliation Officer, proceedings were held, and on 01.10.2016, the Conciliation Officer recorded that the conciliation failed and referred the matter to the appropriate Government.

11. It appears, parties thought of amicably negotiating a workable solution, and at the intervention of the minister for the concerned Industry, the conciliation proceeding resumed before the jurisdictional Deputy Labour Commissioner.

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12. In the said proceeding, on 08.02.2017, the settlement was recorded. Workmen received Rs 14 lakhs each towards the full and final settlement of their claim. Receipt of Rs.14 lakhs each by the Workman is not in dispute.

13. Some of the Workmen raised an industrial dispute questioning the validity of the settlement.

14. Workmen referred to above have filed the writ petitions questioning the validity of the settlement dated 08.02.2017. The Employer has filed the petitions questioning the orders referring the dispute to the Labour Court.

15. Learned Senior counsel appearing for the petitioners/Workmen raised the following contentions:

(a) In the first conciliation proceeding, after several meetings, on 01.10.2016, the Conciliation Officer recorded that the conciliation proceeding failed and reported to the appropriate Government. Once the conciliation proceeding is closed as having failed, and a report is sent to the Government for further action, neither the Additional Chief Secretary to the Department of Labour nor the Deputy Commissioner of Labour will have the jurisdiction to initiate the conciliation proceeding afresh, and the settlement pro

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