Consent to accept reduced compensation in lieu of awarded amount is valid if mutually agreed upon.

ORDER

(1)The writ petition is filed to quash the impugned Award dated 30.10.2018, made in ID.No.117/2010, passed by the Principal Labour Court, Coimbatore.

(2)The 1st respondent raised a dispute against the illegal termination by the 2nd respondent. The Labour Court, on 30.10.2018, passed the impugned Award in ID.No.117/2010, directing the petitioner and the 2nd respondent to pay compensation of Rs.60,000/- to the 1st respondent. Aggrieved by the Award passed by the Labour Court, in the aforesaid ID, the petitioner filed the above writ petition for the aforesaid relief.

(3)When the matter was taken up for hearing earlier on 04.11.2025, the learned counsel for the 1st respondent submitted that by order dated 06.10.2021, this Court, at the time of admission, directed the petitioner to deposit a sum of Rs.50,000/- before the Principal Labour Court, Coimbatore, in ID.No.117/2010. The learned counsel further submitted that the said amount was deposited and the 1st respondent may be permitted to withdraw Rs.50,000/- towards full and final compensation amount in stead of Rs.60,000/-, awarded by the Labour Court.

(4)The learned counsel for the 1st respondent also sought time to file an affidavit in support of the above submission.

(5)Today, the 1st respondent has filed an affidavit stating that he consents to receive Rs.50,000/- towards full and final compensation amount in stead of Rs.60,000/- awarded by the Labour Court, with a permission to withdraw the said amount deposited before the Principal Labour Court, Coimbatore.

In view of the affidavit filed by the 1st respondent, the writ petition is (6)

disposed of with a direction to the Principal Labour Court, Coimbatore, to disburse the amount of Rs.50,000/- lying to its credit in ID.No.117//2010, to the 1st respondent, upon the 1st respondent filing appropriate application for withdrawal. No costs. Consequently, connected miscellaneous petition is closed.