Research › Search › Judgment

High Court of Karnataka · body

2025 DAILYLAW 16399 (KAR)

M/S. SSTELLA SILKS LIMITED v. ZILLA POWERLOOM AND HANDLOOM WORKERS UNION

WP/38905/2016 · 2025-06-17

Anant Ramanath Hegde

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR NC: 2025:KHC:20768 WP No. 38905 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO.38905 OF 2016 (L-RES) BETWEEN: M/S. SSTELLA SILKS LIMITED, NOW EASTERN SILK INDUSTRIES LIMITED, NO.441, TELNGARAHALLI ROAD, ANEKAL TALUK-562 106, BENGALURU URBAN DISTRICT, REP. BY ITS AUTHORIZED SIGNATORY, SRI NAVNEET KUMAR DUBEY, S/O. VINOD DUBEY, AGED ABOUT 32 YEARS. …PETITIONER (BY SRI SWAMY M.M., ADVOCATE) AND: ZILLA POWERLOOM & HANDLOOM WORKERS UNION, L-56, K.V. TEMPLE STREET, SULTHANPET, BENGALURU-560 053, REP. BY ITS SECRETARY. …RESPONDENT (BY SRI L. MURALIDHAR PESHWA, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE AWARD PASSED IN REFERENCE NO.96/2006 (OLD REF. NO.13/2001) BY THE FIRST ADDL. LABOUR COURT, BANGALORE ON 20.02.2016 VIDE ANNEXURE-C. THIS WRIT PETITION COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ANANT RAMANATH HEGDE Digitally signed by C HONNUR SAB Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:20768 WP No. 38905 of 2016 ORAL ORDER Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent. 2. The petitioner-Company has assailed the Award dated 20.02.2016 passed by First Additional Labour Court, Bengaluru, in Reference No.96/2006 (Old Reference No.13/2001). 3. In terms of the said Award, the Labour Court has partly allowed the Reference and directed the second party management to pay a compensation of Rs.5 Lakhs to all 29 workmen as one time settlement within 30 days from the date of the award. In case of default, 12% interest p.a. is awarded till payment. 4. Aggrieved by the said award, the second party management is before this Court in this writ petition. 5. Learned counsel for the petitioner would submit that insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, initiated by the Bank against the - 3 - HC-KAR NC: 2025:KHC:20768 WP No. 38905 of 2016 petitioner-Company is allowed and a resolution plan is put in place in terms of order dated 31.01.2024 passed by the National Company Law Tribunal, Kolkata. He would further submit that in terms of the said order, Rs.123.95 Lakhs is required to be paid towards workman's dues/benefits. Thus, he would contend that the present petition does not survive. 6. Learned counsel for the respondent, on the other hand, would submit that the respondent would challenge the resolution plan approved by the National Company Law Tribunal, Kolkata, in the proceedings No.CP(IB)No.588/KB/2020. 7. Learned counsel would further submit that copy of the resolution plan is not yet furnished to him. 8. It is noticed that the NCLT, Kolkata, has passed an order in proceedings No. No.CP(IB)No.588/KB/2020. Part of the resolution plan is extracted in the said order. - 4 - HC-KAR NC: 2025:KHC:20768 WP No. 38905 of 2016 9. In view of the resolution plan being accepted, this Court cannot pass any further order in the present writ petition. Accordingly, the writ petition is disposed of. 10. However, liberty is reserved to the respondent to seek such remedy as available in law. 11. The petitioner shall also furnish copy of the resolution plan to the respondent within 30 days from this order. Sd/- (ANANT RAMANATH HEGDE) JUDGE YKL List No.: 1 Sl No.: 28