Facts
The litigation involves a dispute between M/s. Tractors & Farm Equipment Limited (the Management) and T. Ramesh (the Employee) originating from I.D.No.139 of 2018 on the file of the II Additional Labour Court, Chennai. Following a common order dated 26.08.2025 and an order on compensation dated 28.08.2025 in W.P.No.1849 of 2022, both parties filed cross-appeals under Clause 15 of the Letters Patent
Source reference: p. 1-2During the pendency of these appeals, the parties entered into private negotiations and executed a formal Memorandum of Compromise on 28.04.2026
Source reference: p. 2Issues
1. Whether the writ appeals can be disposed of in terms of a private settlement/memorandum of compromise entered into between the employer and employee
Source reference: p. 2, 72. Whether the employee is entitled to withdraw the principal amount deposited by the management in the Labour Court as per the settlement terms
Source reference: p. 7Law Applied
The Court applied the principle of judicial recognition of out-of-court settlements in labor disputes, where parties voluntarily resolve their grievances through a Memorandum of Compromise.
Source reference: p. 7It further applied procedural rules regarding the withdrawal of funds deposited pendente lite in a lower forum (II Additional Labour Court) in alignment with the consensus of the parties
Source reference: p. 7Reasoning
The Court observed that the Management and the Employee had successfully negotiated and formalized their agreement through a Memorandum of Compromise dated 28.04.2026
Source reference: p. 2-6Since a settlement had been reached, the Court reasoned that further judicial adjudication on the merits of the writ appeals was unnecessary
Source reference: p. 7Regarding the specific sum of Rs. 10 Lakhs previously deposited by the Management with the II Additional Labour Court, the Court gave effect to the parties' mutual agreement: the Employee was to receive the principal amount, while the Management was entitled to the accrued interest
Source reference: p. 7The Court held the parties bound by these agreed terms.
Source reference: p. 7Holding
The High Court disposed of both Writ Appeals (W.A.Nos.4013 & 3979 of 2025) in terms of the Memorandum of Compromise.
The Court directed the II Additional Labour Court, Chennai, to permit the Employee to withdraw the principal deposit of Rs. 10 Lakhs and the Management to withdraw the accrued interest within two weeks of receiving the application
Source reference: p. 7No costs were awarded
Source reference: p. 8Original Court PDF
Tractors and farm Equipment LimitedvsT.Ramesh
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