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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Dewan Bahadur Ramgopal Mills Limited – Appellant
Versus
State of Telangana – Respondent
ORDER :
NAGESH BHEEMAPAKA, J.
Heard Sri A.K. Jayaprakash Rao, learned counsel for petitioner and learned Government Pleader for Labour on behalf of Respondents 1 and 2 and Sri K.V. Satya Ramachandra Rao, learned counsel on behalf of the 4th respondent.
2. The Writ Petition filed by Petitioner challenging the proceedings initiated by Respondent No.2 under Section 33-C(1) of the Industrial Disputes Act, 1947 (for short, ‘the Act’) against Petitioner and its properties in CRLMP No. 1722 of 2023 on the file of the Hon’ble XII Additional Chief Metropolitan Magistrate, City Criminal Courts at Nampally, Hyderabad. These proceedings were initiated for recovery of a sum of Rs. 30,38,00,000/- (Rupees thirty crores thirty-eight lakhs only) which was declared payable to the employees of Petitioner under a Certificate for Recovery No. B/55/2021 dated 03.01.2023. This certificate was issued based on an alleged settlement between various recognized Employees’ Unions and Respondent No.3. Petitioner contends that these proceedings are illegal, arbitrary, and not maintainable against Petitioner, hence, seeks to quash them.
According to Respondent No.2, Petitioner company, DBR Mills, located in Tank Bund
The court affirmed that a party cannot evade liability for workers' claims based on technicalities, as obligations from employment contracts remain intact under the Industrial Disputes Act.
A development agreement holder can be held liable for workers' claims under a binding settlement, even if not classified as an employer under the Industrial Disputes Act.
A party that voluntarily enters into a settlement agreement under the Industrial Disputes Act cannot evade its obligations based on unrelated litigation or claims of lack of employer-employee relatio....
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