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CDJ 2025 Assam HC 219 print Preview print print
Court : High Court of Gauhati
Case No : WP (C) of 5866 of 2014
Judges: THE HONOURABLE MR. JUSTICE DEVASHIS BARUAH
Parties : Buildworth Shramik Union, Kamrup Versus The Management Of M/s Buildworth Pvt. Ltd. Ghy
Appearing Advocates : For the Petitioner: A. Dasgupta, Sr. Advocate, B. Das, Advocate. For the Respondent: R. Sharma, Advocate.
Date of Judgment : 16-12-2025
Head Note :-
Subject
Judgment :-

Judgment & Order (Oral):

1. Heard Mr. A. Dasgupta, the learned Senior Counsel assisted by Ms. B. Das, the learned counsel appearing on behalf of the petitioner and Mr. R. Sharma, the learned counsel appearing on behalf of the respondent.

2. The instant proceedings is filed by the Trade Union against the respondent challenging the Award dated 30.11.2013 passed by the learned Labour Court Guwahati, Assam whereby the reference was decided against the workmen.

3. During the course of hearing on 28.10.2025, this Court enquired as to whether there is any possibility of an amicable settlement and in that regard, permitted the respondent to submit a proposal without prejudice. In pursuance thereto, various proposals have been exchanged between the petitioner and the respondent. On 20.11.2025, the learned counsel who represented the petitioner had submitted that the petitioner was agreeable for an ex-gratia payment of ₹41 lakhs plus ₹23.34 lakhs towards gratuity and retrenchment benefit as the full and final settlement.

4. Mr. R. Sharma, the learned counsel appearing on behalf of the respondent had also submitted that the respondent was also agreeable subject to vacation of the quarters by the workmen. Accordingly, this Court therefore directed both the parties to file affidavits before this Court.

5. In pursuance thereto, both the petitioner as well as the respondent have filed their respective affidavits.

6. In the additional affidavit filed by the petitioner, they indicated the amount of gratuity and retrenchment payable by the Management and enclosed the same in the form of chart as Annexure-A. From a perusal of the said Annexure-A to the additional affidavit, it is seen that the total gratuity payable has been shown as ₹8,69,502/- and the retrenchment benefits have also been shown as ₹14,64,716/- roughly ₹14.65 lakhs. It is also stated in the additional affidavit filed on behalf of the petitioner that they are agreeable for an ex-gratia payment of ₹41 lakhs against 41 workmen, i.e. Rs. One Lakh each. The total claim of the petitioner is ₹64.34 lakhs. It is also mentioned the members of the petitioner would vacate the possession of the quarters within 9-12 months time. Further to that, it is also mentioned that the said amount of ₹64.34 lakhs be paid directly to the Account of Buildworth Shramik Union, Central Bank of India, A/c No.- 151855741-2 (3203), Dispur Branch or individually to each workman as per his entitlement. Paragraph Nos.5, 6 & 7 of the said additional affidavit being relevant is reproduced herein under:-

                    “5. So far ex-gratia amount is concerned, each employee whose name figured in the table, prepared by the management will get Rs.1 Lakh(Rupees one Lakh only). So the total amount payable to the employees is Rs. 14.65 Lakhs (Retrenchment compensation) + Rs. 8.69 Lakhs (Gratuity) + Rs. 41 Lakhs (ex-gratia) = Total Rs. 64.34 Lakhs.

                   6. That the petitioner ensures it that after receiving payment, the Members of petitioner will vacate the possession of the Quarters within 9-12 month time.

                   7. That this Hon’ble Court may kindly be pleased to pass a direction to The Management of M/s Buildworth Pvt. Ltd. to release the amount payable to 41 workers who are members of the petitioners union. If this Hon’ble Court desires that the due amount shall be disbursed by the union to its members than union can do the same. In such case the management may be directed to deposit Rs. 64.34 Lakhs (Rupees Sixty Four Lakhs Thirty Four Thousands Only) in the account of Buildworth Shramik Union, Central Bank of India , A/c No.- 151855741-2 (3203), Dispur Branch.”

7. The respondent has also filed an affidavit on 15.12.2025 wherein they have also agreed to the said amount of ₹64.34 lakhs as a full and final settlement and it is further stated at paragraph No.7A of the said affidavit that the 50% of the amount would be paid within 30 days from the date of this Court's order and the balance 50% within 60 days. It is also mentioned that on the payment of the final installment, the workmen would simultaneously be required to vacate the respondent company's quarter located in the premises of the respondent company's property which is still in their occupation. Paragraph No.4 to 7A being relevant is reproduced herein under:-

                   “4. That, there are 41 workmen as per the records of the Respondent Company. On the basis of the salary as on July 2010, the workmen's gratuity and retrenchment is calculated taking service till 02.08.2010 as the workmen are still on illegal strike since 03.08.2010.

                   5. That, the gratuity payable to the workmen is Rs. 14.65 Lakhs, out of which Rs. 5.95 Lakhs have already been paid. Further, the retrenchment which is payable is Rs. 14.65 Lakhs. Accordingly, the total amount payable to the workmen comes to Rs. 23.34 Lakhs approximately (Rs. 14.65 lakh + Rs. 8.69 Lakhs).

                   6. Moreover, though the Respondent Company is still in financial difficulty as it is recovering its past cumulative losses, however as ex-gratia to the workmen and as a gesture of good will the Company is willing to pay Rs. 41 Lakhs to the workmen (i.e. Rs. 1 Lakh to each workman). This amount the Respondent Company feels is adequate compensation which strikes a balance so that neither party suffers any hardship.

                   7. That, the amount proposed to be paid by the Respondent Company to the workmen under the heads of gratuity, retrenchment and ex-gratia is provided in the chart annexed herewith as Annexure “A” which is to be regarded as part of this affidavit.

                   Copy of the chart depicting the amount proposed to be paid by the Respondent Company to the workmen is annexed herewith and marked as Annexure-A.

                   7A. That, the Respondent Company proposes to pay 50% of the amount within 30 days from the order of the Hon'ble Court and the balance 50% within 60 days. On payment of the final installment, the workmen would simultaneously require to vacate the Respondent Company’s quarters located in premises of the Respondent Company’s property, which they are still in occupation, on that very date and cannot continue to stay any longer after such payment has been tendered.”

8. The Court has duly heard the learned counsels appearing on behalf of the parties and from the affidavits so filed before this Court, it is apparent that both the parties have agreed at the quantum of the full and final settlement, i.e. ₹64,34,000/- certain differences arise as regards when the entire payment would be made and when the workmen would vacate the quarters.

9. This Court asked the counsels representing the petitioner as well as the respondent to obtain further instructions in that regard and it is duly submitted that the members of the petitioner Union would be willing to vacate the quarters on or before 31.05.2026.

10. Mr. Sharma, the learned counsel appearing on behalf of the respondent on instructions also submitted that the 50% of the amount shall be paid to the workmen as per their respective entitlement on or before 12.01.2026. As regards the remaining amount, the same shall be also paid individually to each of the workmen as per the entitlement on or before 13.04.2026.

11. Taking into account the above submission, this Court therefore disposes of the instant writ petition with the following observations and directions:-

                   (i) Both the petitioner as well as the respondent have agreed to a full and final settlement of all their disputes whereby the respondent herein shall pay the total sum of ₹64,34,000/- in total to all the 41 members of the petitioner’s Union.

                   (ii) The entitlement against each member of the petitioner’s Union shall be calculated on the basis of Annexure-A to the additional affidavit in so far as retrenchment and the gratuity and as regards the ex-gratia payment, each of the 41 members of the petitioner’s Union would be entitled to an amount of ₹1,00,000/-.

                   (iii) 50% of the said amount of ₹64,34,000/- shall be disbursed by the respondent to the members of the petitioner’s Union individually as per their entitlement on or before 12.01.2026.

                   (iv) The remaining amount shall be disbursed to the members of the petitioner’s Union individually on or before 13.04.2026.

                   (v) The members of the petitioner’s Union who are presently in occupation of the quarters belonging to the respondent’s establishment shall vacate on or before 31.05.2026.

                   (vi) Compliance affidavits be filed on behalf of the petitioner and the respondent on or before 08.06.2026.

                   (vii) Failure to comply would amount to non compliance to the undertaking given to his Court as well as violation to the order passed by this Court.

                   (viii) It is observed that if the compliance affidavits are not filed as directed herein above within 08.06.2026 the Registry shall put up the writ petition again before this Court.

 
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