- 1 - NC: 2025:KHC:9937 WP No. 23091 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 23091 OF 2024 (L-RES) BETWEEN: 1. M/S RAMAKRISHNA HOTEL AND ENTERPRISES RAMAKRISHNA LODGE REGISTERED UNDER COMPANIES ACT, 1956 NO 262, SUBHEDAR CHATRAM ROAD, GANDHINAGAR, BENGALURU - 560009 REPRESENTED BY ITS DIRECTOR D JAYARAJ S/O LATE H DASAPPA AGED ABOUT 73 YEARS 2. DJR ENTERPRISES PVT LTD., REGISTERED UNDER COMPANIES ACT 1956 SHOP NO 20/30 1ST FLOOR, SJR VIVA MALL (KALPANA COMPLEX) KEMPEGOWDA ROAD, BENGALURU - 560009 REPRESENTED BY ITS DIRECTOR GNANESHWAR JAYARAJ AGED ABOUT 32 YEARS …PETITIONERS (BY SRI. NAVEEN CHANDRASHEKAR, ADVOCATE FOR MS. DEVI SOWMYA L., ADVOCATE) Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - NC: 2025:KHC:9937 WP No. 23091 of 2024 AND: 1. THE STATE OF KARNATAKA REPRESENTED BY PRINCIPAL SECRETARY, TO GOVERNMENT REVENUE DEPARTMENT, 3RD GATE, 5TH FLOOR, M.S.BUILDING, DR B R AMBEDKAR VEEDHI BENGALURU-560001 2. THE STATE OF KARNATAKA REP BY PRINCIPAL SECRETARY TO GOVT LABOUR DEPARTMENT NO. 141 4TH FLOOR VIKASA SOUDHA DR B R AMBEDKAR VEEDHI BENGALURU-560001 3. SPECIAL TAHSILDHAR BENGALURU NORTH TALUK, KANDAYA BHAVAN GROUND FLOOR, K G ROAD, BENGALURU - 560009 4. THE ASSITANT LABOUR COMMISISONER AND CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT 1972 SUB DIVISION 5 KARMIKA BAHVANA MANJUNATH NAGAR BAGALAKUNTE BENGALURU - 560073 5. RAMANNA K S S/O LATE SHANAIAH AGED ABOUT MAJOR, R/ANO 3769, 6TH BLOCK, SIR M VISVESHWARAIAH LAYOUT ULLALA BENGALURU - 560110 - 3 - NC: 2025:KHC:9937 WP No. 23091 of 2024 6. RANGAIAH H K S/O KODAIAH, AGED ABOUT MAJOR, R/ANO 751 VASTHANAGARA HESARAGHATTA BENGALURU NORTH TALUK, BENGALURU - 560088 7. LAKSHMIKANTH N T S/O THIMMEGOWDA AGED ABOUT MAJOR, R/A NIDUVALLALU HEBBURU HOBLI, TUMKUR DISTRICT - 572120 8. PUTTASWAMY C L S/O LT LINGAIAH D, R/A NO 10, 5TH CROSS, 4TH MAIN, AGARAHARA DASARAHALLI, MAGADI ROAD, BENGALURU - 560079 9. RAMANNA S/O LATE GOVINDAPPA AGED ABOUT 60 YEARS R/ANO 171 4TH CROSS, 4TH MAIN, PANCHASHEELA NAGAR MOODALAPALYA BENGALURU - 560079 10. YOGEESH M R S/O LATE RAJANNA, R/A KELAGADE BEEDI, MOTAGANAHALLI, MAGADI TALUK SOLUR HOBLI, RAMANAGARA DISTRICT - 562127 - 4 - NC: 2025:KHC:9937 WP No. 23091 of 2024 11. RAMANNA K S/O LATE KARIYANNA R/AT NO 107, 5TH CROSS, KURUBARAHALLI, J C NAGAR BENGALURU - 560086 12. NANJUNDA S/O KARIAPPA, R/A NO 239, GANGA NADI ROAD, BRUNDAVAN NAGAR DHOBHI GHAT BENGALURU - 560019 13. SRINIVAS S/O LATENALLAPPA K T R/A NO. 529, 10TH CROSS 1ST MAIN VENKATASWAMY GARDEN IPD SALAPPA LAYOUT, JAGAJEEVARAM NAGAR BENGALURU -560026 14. RANGASWAMY S/O RANGAIAH R/A NO. 23, 1ST FLOOR 9TH CROSS, NEAR AKASH THEATRE RAJESHWARI NAGAR LAGGERE BENGALURU - 560058 15. N H HANUMAIAH S/O NARASIMHAIAH AGED ABOUT 61 YEARS R/A NO. 20/105, 11TH CROSS, MUNESHWARA NAGAR SUNKADAKATTE BENGALURU 560 091 - 5 - NC: 2025:KHC:9937 WP No. 23091 of 2024 16. PUTTASWAMY S/O MARIAPPA R/A NO. 240, 1ST STAGE MARUTHINAGAR, SONNENAHALLI SURVEY NO. 17, KENGERI HOBLI, BENGALURU 560 056 17. CHANDRAPPA S/O MARIYAPPA R/A NO. 1643, 5TH MAIN GADI MUDDANNA ROAD MEENAKSHI NAGAR KAMAKSHIPALY A BENGALURU 560 079 18. GANESH K S/O LATE H V KRISHNAPPA R/A NO. 27, RESERVOIR STREE BASAVANAGUDI BENGALURU 560 004 19. THAMMAIAH Y E S/O EERA NAIK R/A YARIGENAHALLI J C PURA ARASIKERE TALUK HASSAN DISTRICT 573216 20. KRISHNAPPA S/O LATE YELLEGOWDA AGED ABOUT 60 YEARS R/A NO. 1914/263 MARALUHOLA, 2ND CROSS MANGALAVARAPETE CHANNAPATTANA TALUK RAMANAGARA DISTRICT 562160 - 6 - NC: 2025:KHC:9937 WP No. 23091 of 2024 21. NARASIMHA T S/O NARAYANASWAMY T R/A NO. 20, JAKKARAYANAKERE SESHADRIPURAM BENGALURU 560 020 22. VENKATARAMU S/O RAJARAME GOWDA R/A C/O DILIP KUMAR NO. 20/A, RAJGOPAL NAGAR NEAR RENUKA YELLAMMA TEMPLE LAGGERE BENGALURU 560 058 23. SHIVAKUMAR G C S/O LATE CHIKKAVEERAPPA G L AGED ABOUT 61 YEARS R/AT GUDDENAHALLI KASABA HOBLI, TURUVEKERE TALUK TUMKUR DISTRICT 572227 24. RAVIKUMAR S/O DESI GOWDA R/A NO. 771, 7TH MAIN NARMADA NADI ROAD BRUNDAVAN NAGAR BENGALURU - 560050 25. GIRIYAPPA S/O LATE MANJAPPA NAIK R A/T NO. 29, SAPTHAGIRI NILAY A 4TH MAIN, SVG NAGAR MOODALAPALYA BENGALURU 560 072 26. SHANKAR S/O RANGASWAMAIAH - 7 - NC: 2025:KHC:9937 WP No. 23091 of 2024 R/A NO. 113, 4TH A CROSS AKKALA GOODU VINAYAKANAGARA KAMAKSHIPALYA BENGALURU 560 079 27. VIJAYAKUMAR S/O LATE PAPANNA R/A NO. 84, BEHIND KALYANAPPA BUILDING NEAR BINDU AMOOLYA APARTMENT MUDDINAPALYA MAGADI MAIN ROAD BENGALURU 560 091 28. SMT. KALPANA W/O LATE ANAND V REPRESENTING DECEASED EMPLOYEE AGED ABOUT 52 YEARS R/A NO.1, 1ST CROSS R K STREET SESHADRIPURAM BENGALURU 560 020 29. SADASIVAIAH M R S/O REVANASIDDDAPPA R/A NO. 333, SITE NO. 261/108 LANDS LAYOUT NEAR NRSERY BUS STOP BEHIND VPM HOSPITAL NELAMANGALA 562 133 30. NAVEEN KUMAR M S/O MADAIAH R/A NO. 153, 1ST CROSS 1ST MAIN, KK LAYOUT PAPAREDDY PALYA BENGALURU 560 072 - 8 - NC: 2025:KHC:9937 WP No. 23091 of 2024 31. RAVIKUMAR Y M S/O LATE MOODALAGIRIAIAH R/A SRI SIDDALINGESHWARA NAGAR YADIYOORU KUNIGAL TALUK TUMKURU DISTRICT 572142 32. SMT. PUSHPA M H W/O LATE SRINIVAS G REPRESENTING DECEASED EMPLOYEE AGED ABOUT 33 YEARS R/A GUDDENAHALLI VILLAGE AND POST KASABA HOBLI TURUVEKERE TALUK TUMKUR DISTRICT 572227 33. PRAKASH S S/O LATE SIDDEGOWDA AGED ABOUT 58 YEARS R/A NO. 197, 11TH MAIN KALAPAP BLOCK SRINAGAR BENGALURU 560 050 34. DEVARAJA H K S/O LATE KRISHNAPPA AGED ABOUT MAJOR R/AT NO 308, 1ST MAIN PANCHASHEELA NAGAR MOODALAPALYA BENGALURU 560079 35. RAGHU B S/O LATE BOREGOWDA R/AT NO 107, DEVANAIKANAHALLI TURUVEKERE TLAUK TUMKURU DISTRICTG 572221 - 9 - NC: 2025:KHC:9937 WP No. 23091 of 2024 36. DEVARASJA M S/O MUDDAIAH AGED ABOUT 46 YEARS R/AT NO 225/1 3RD MAIN, 2ND BLOCK BAIRAPAP BLOCK THYAGARAJANAGAR BENGALURU 560028 37. YOGEESHA Y G S/O Y T GOVINDARAJ R/AT NEAR VINAYAKA TEMPLE BEHIND SIDDALINGESHWARA TEMPLE YADIYOORU KUNIGAL TALUK TUMKURU DISTRICT 572142 38. SHANKAR A S/O LATE SHIVAPPA R/AT D CROSS, 2ND WARD MUTHSANDRA DODDABALLAPURA BENGALURU RURAL DISTRICT 562103 39. DEVARAJA C S S/O LATE NAGAPPA R/AT NO 741/4 9TH CROSS, JARAGANAHALLI J P NAGAR BENGALURU 560078 40. PUTTASWAMY S/O THIMMEGWODA R/AT NO 24, 6TH CROSS ANDHRALLI MAIN ROAD VIDYAMANA NAGARA BENGALURU 560091 - 10 - NC: 2025:KHC:9937 WP No. 23091 of 2024 41. DHANANJAYA T S/O LATE THAMAMIAH AGED ABOUT 62 YEARS R/AT NO 93, 5TH CROSS 4TH MAIN, PANCHASHEELA NAGARA MOODALAPALYA BENGALURU 560079 42. MAHADEVAIAH K S S/O SUBBAIAH R/A KODIMUDDANAHALLI D S PALYA POST HEBBURU HOBLI TUMKURU TALUK TUMKURU DISTRICT 572120 43. REVANASIDDAIAH S/O LATE SIDDAGANAIAH R/AT NO 55, 16TH CROSS KURUBARAHALLI JC NAGAR BENGALURU 560086 …RESPONDENTS (BY SMT. RASHMI RAO, HCGP FOR R1 TO R4; SRI. A.J.SRINIVASAN, ADVOCATE FOR R5 TO R43) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER BEARING NO. LD- IDM/752/2022/LD.DO.6.L.S DTD. 28.11.2022 PASSED BY THE R-2 ANNX-G AND THE CONSEQUENT PROCEEDINGS PENDING ON THE FILE IN REF.NO.71/2022 BEFORE THE PRESIDING OFFICER, PRINCIPAL LABOUR COURT, BENGALURU PREFERRED - 11 - NC: 2025:KHC:9937 WP No. 23091 of 2024 BY THE R-5 TO 43 SEEKING REINSTATEMENT WITH CONSEQUENTIAL BENEFITS AT ANNX-G1 IN SO FAR AS THE PETITIONERS ARE CONCERNED; QUASH THE CONFISCATION OF PROPERTY ORDER ISSUED BY R-3 BEARING NO.M.S.C/RI/CR/128/23-24 DTD. 15.07.2024 IN RESPECT OF THE SCHEDULE PROPERTY AT ANNX-J IN SO FAR AS THE PETITIONERS ARE CONCERNED. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners have called in question the second respondent's order under Section 10(1) of the Industrial Dispute Act, 1947 and the consequential proceedings in Reference No.71/2022 on the file of the Presiding Officer, Labour Court, Bengaluru [for short, 'the Labour Court'] while calling in question the third respondent's Confiscation Order dated 15.07.2024 for failure to pay the amount determined under the provisions of the Payment of Gratuity Act, 1972 [for short, 'the Gratuity Act']. In terms of the interim order granted by this Court, the petitioners - 12 - NC: 2025:KHC:9937 WP No. 23091 of 2024 have admittedly deposited a sum of Rs.50,00,000/- and the balance payable would be about another Rs.25,00,000/- along with the accrued interest. 2. Mr. Naveen Chandrashekar, the learned counsel for the petitioners, submits that the petitioners' grievance with the Confiscation Order dated 15.07.2024 [Annexure-J] is because it is not withstanding the private respondents’ assertion that they have been refused work leading to the order of reference dated 28.11.2022 [Annexure-G] while making a claim for payment of gratuity. The learned counsel relies upon the provisions of Section 4 of the Gratuity Act to underscore his contention that the liability to pay gratuity will be on the termination of the employment and until there is termination, the employer is entitled to withhold gratuity. 3. This Court must opine that it is trite that the question of liability to pay gratuity must be determined with reference to the employer’s stand - 13 - NC: 2025:KHC:9937 WP No. 23091 of 2024 and when queried in this regard, Mr. Naveen Chandrashekar is categorical that the petitioners contend that there is termination of employment with effect from 30.06.2020. Mr. Naveen Chandrashekar cannot gainsay that whether the private respondents have been refused work is an aspect that will have to be considered by the Labour Court in the pending Reference and the payment of gratuity would be subject to the outcome in such proceedings. In fact, Mr. A. J. Srinivasan, the learned counsel for the private respondents, proposes to rely upon a decision of the High Court of Gujarat to contend that normally if the workmen succeed, the payment of gratuity received will have to refunded without interest, but if there is an order for reinstatement with back wages, it would be subject to the set off. 4. This Court must opine that this position will remain unassailable, and therefore, the question for consideration must be answered against the - 14 - NC: 2025:KHC:9937 WP No. 23091 of 2024 petitioners calling upon them to pay the gratuity as is determined along with interest. Mr. Naveen Chandrashekar submits that this Court must enable orders for refund of the amount in deposit so that the petitioners will have reasonable time to disburse the amount in deposit, while also stating that this Court must grant reasonable time so that the remaining amount along with interest is also mobilized and paid. Mr. A. J. Srinivasan, and Ms. Rashmi Rao are heard in the light of this request. This Court is of the view that this request, given the circumstances will not be unreasonable, and as such, the following: ORDER a. The petition is disposed of observing that the payment of gratuity and interest in terms of the Controlling Authority's order will be subject to the outcome of the final decision in the Reference in No.71/2022 pending before the Labour Court. - 15 - NC: 2025:KHC:9937 WP No. 23091 of 2024 b. The Registry is directed to refund the amount in deposit in favour of the second petitioner calling upon the second petitioner to furnish, within four [4] weeks from the date of receipt of a certified copy of this order, the account details for immediate transfer and deposit such amount with the Controlling Authority so received for pro- rata disbursement amongst the private respondents within the next four [4] weeks. c. The petitioners shall, within the next four [4] weeks deposit the remaining amount along with interest. d. It is needless to observe that the implementation of Annexure-J dated 15.07.2024, which is deferred for a period of eight [8] weeks shall be enforced, if there is any failure. - 16 - NC: 2025:KHC:9937 WP No. 23091 of 2024 e. It is observed that if any of the workmen who are entitled to payment of gratuity is no more, the amount shall be credited to the legal representatives concerned after due verification. Sd/- (B M SHYAM PRASAD) JUDGE RB