Learned counsel for the applicant as well as learned

counsel for the 2^nd respondent – NGEF have filed a Joint

Memo duly signed by them, which reads as under:-

Joint Memo

“ 1.

The applicant had filed the above CA seeking for

payment as Per final Settlement Scheme 2016 along with

back wages and consequential benefits. All the above claims

were duly considered by the 2^nd Respondent, and a memo

was filed along with calculation with a proposal to pay Rs.

17,02,477/-.

2.

The Government of Karnataka(majority shareholder

of NGEF Limited) filed Company application 184/2015

seeking for recall of the Winding up order og NGEF Limited

for the utilization of the company land for public

infrastructure projects, accordingly Govt had settled all the

3

Secured Creditors and had number of discussion with the

Employees Union through the KSIIDc the Nodal agency.

There were 120 ex employees who had not opted for any of

the VRS Scheme. Thus Final Settlement Scheme 2016 was

provided to these 120 ex employees. The Final Settlement

Scheme 2016 was arrived based on the discussion with the

employee union. The compensation there of was computed

by D.K Upendra and Co. A CA firm based on the

government Order. 15.07.2016. Considering the undertaking

provided by the Respondent in the earlier CA 84/2018, the

Respondent has computed the settlement payable to the

Applicant on the same formula.

3.

Since the Applicant disputed the basic wage which

was fixed, the matter was referred to mediation. The 2^nd

respondent considered the basic wage of one Mr.

Nandakumar who was also similarly placed employee and

accordingly revised its settlement proposal during the

mediation to effect a full and final settlement, substantially

revising the original computation detailed as follows:

Sl.

No.

Particulars

Amount

1.

Back wages for 27months(21.09.2000

to 20.12.2002)

1,89,378

2.

Compensation under 2016 Scheme

8,88,649

3.

Interest @ 8% (20.12.2002 to

31.08.2022) 7194 days

14,01,193

Total

24,79,221

Less:

Original Computation

17,02,477

Increase

7,76,744

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The above detailed computation is provided herewith.

4.

The Respondents submits that, the maximum

settlement amount provided in the Settlement scheme

ranges from Rs. 9.00 Lakhs to 29.00 Lakhs only based

on their cadre and Nos. of years of Service. The copy of

the settlement computation for the 120 are furnished

herewith. The Settlement computation was filed along

with Memo dated: 20.09.2019.

5.

It is submitted that though the revision was

provided at the mediation, the Applicant had not

accepted the same. In the mediation, the revision, of

basic wages was given effect by the Respondent,

whereby the compensation originally offered stood

revised, however the same was unacceptable by the

Applicant. There was a computation error, regarding the

calculation, which is now being harped upon by the

applicant.

The

Respondent

submits

that

any

undertaking/ proposal given in the mediation is not

binding unless the matter stands disposed off through

mediation. As such the submission of the applicant may

be rejected on this ground alone. Be it as it may be, the

respondent is still willing to go ahead with the proposal

given at mediation however the same is subject to

proper calculation as stated above.

5

6.

It is submitted that the Applicant is dragging

the above matter, as such the above is the final

computation offered by the respondent, as the

Respondent is already burdened with 8% interest for

the past 3 years, though the Respondent is earning

only a nominal interest of 4 % on the FD’s.

Considering the above, this Hon’ble Court may

be

pleased

to

direct

the

Applicant

to

accept

Rs.24,79,221/- as full and final settlement in the interest

of justice and equity. “

2. In view of the aforesaid Joint Memo of settlement

filed by the parties and being satisfied with the terms and

conditions thereto, C.A.No.18/2019 is disposed of directing the

2^nd respondent - NGEF to pay a sum of Rs.24,86,707/- within

a period of three weeks from today.