Karnataka High CourtCivil Procedure and EvidenceEmployment and Labour Law

Connected gratuity writ petitions were disposed of in terms of the parties’ voluntary compromise.

VIRENDRA SUNIL BAGLEv.APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT

Connected gratuity writ petitions were disposed of in terms of the parties’ voluntary compromise.. VIRENDRA SUNIL BAGLE vs APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT. Karnataka High Court. LawLens
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In brief

The question

1. Whether the Court should accept the parties’ compromise under Order XXIII Rule 3 CPC and dispose of the three connected writ petitions in its terms

The court held

The Court disposed of all three writ petitions in terms of the compromise petition, directed that the petition be treated as part of the order, and directed the Registry to draw a decree accordingly.

It also directed

It also ordered the refund of the petitioners’ court fee, subject to verification.

01Facts

The three connected writ petitions challenged orders made by the appellate and controlling authorities under the Payment of Gratuity Act, 1972.

The petitioners were former directors of the company, and Respondents 5–13 were its former workmen.

During the writ proceedings, the parties filed a joint compromise petition under Order XXIII Rule 3 of the Code of Civil Procedure, 1908, seeking to settle the disputes and dispose of all three petitions on agreed terms.

pp. 12–14

The settlement provided, among other things, for payment of ₹2,00,000 to each workman, withdrawal of pending claims, and release of employment-related claims.

pp. 14–19

The parties appeared before the Court; their advocates identified them and their signatures, and the parties confirmed that the settlement was voluntary and made without duress.

p. 13

02Issues

i.1. Whether the Court should accept the parties’ compromise under Order XXIII Rule 3 CPC and dispose of the three connected writ petitions in its terms

pp. 12–13, 19–20

ii.2. Whether, upon recording the compromise, the Court should direct the Registry to draw a decree and refund the court fee

p. 20

03Law Applied

Order XXIII Rule 3 of the Code of Civil Procedure, 1908, provides the procedural basis for a court to record a compromise and dispose of proceedings where it is satisfied that the parties have settled their dispute.

pp. 12–13, 20

The writ petitions were brought under Articles 226 and 227 of the Constitution, and the underlying dispute concerned orders under the Payment of Gratuity Act, 1972; however, the Court did not determine any substantive issue under that Act.

pp. 12–13, 20

Provisions in the judgment · 1

PAYMENT OF GRATUITY ACT, 1972 Section 7

04Reasoning

The Court verified that the compromise petition was signed by the parties, that their identities and signatures were confirmed by their advocates, and that the parties affirmed the settlement was voluntary and free from duress.

p. 13

Being satisfied with the compromise terms, the Court accepted them as the basis for disposing of all three connected writ petitions, without adjudicating the merits of the gratuity authorities’ orders.

pp. 19–20

05Holding

The Court disposed of all three writ petitions in terms of the compromise petition, directed that the petition be treated as part of the order, and directed the Registry to draw a decree accordingly.

p. 20

It also ordered the refund of the petitioners’ court fee, subject to verification.

p. 20
Karnataka High Court

Original Court PDF

VIRENDRA SUNIL BAGLEvsAPPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT

Karnataka High Court · October 08, 2026

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