- 1 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 17TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO.107648 OF 2024 (GM-RES) BETWEEN: THE INDIA SUGARS AND REFINERIES LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956, HAVING ITS OFFICE AT 102 AND 108, MIDFORD HOUSE, OFF. M.G.ROAD, BENGALURU-560001. REPRESENTED HEREIN BY IT AUTHORIZED SIGNATORY MR. SHARANAPPA.M.A. …PETITIONER (BY SRI. SHASHIDHARAN, SENIOR COUNSEL FOR SRI. SHIVRAJ S. BALLOLI AND SRI. PRAVEEN GEJJI, ADVOCATES) AND: 1. ISR WORKERS UNION 3-179, PATEL NAGAR, HOSPET, VIJAYANAGAR DISTRICT-583211, REPRESENTED BY ITS PRESIDENT, MR. M.D. GHOUSE. 2. THE PRESIDING OFFICER INDUSTRIAL TRIBUNAL, HUBBALLI COURT COMPLEX, OPPOSITE HOSUR REGIONAL BUS STAND, KALLUR LAYOUT, HUBBALLI-580020. …RESPONDENTS (BY SRI. ANAND P. SAVADI, ADVOCATE FOR R1; R2-NOTICE SERVED ) Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO; A. TO SET ASIDE THE ORDER DATED. 27/11/2024 AS PER ANNEXURE-A PASSED BY THE RESPONDENT 2 AND ALLOW THIS PETITION.; B. TO CONSIDER THE PRAYERS DIRECTING THE R2 TO ISSUE DIRECTIONS TO RESPONDENT 1 TO VACATE THE QUARTERS IN RESPECT OF 37 WORKMEN AS PER I.A. NO. 9(ANNEXURE-L) AND COLLECT THE ADMITTED DUES AS PER THE BOOKS OF THE PETITIONER WITHOUT ANY FURTHER DELAY AND IN ACCORDANCE WITH THE DIRECTIONS OF THIS HON BLE COURT IN W.P. NO. 1486/2021 (ANNEXURE-C), OR DIRECT THE RESPONDENT 1 TO VACATE THE QUARTERS IN RESPECT 37 WORKMEN AS PER THE PRAYER OF IA 9 AND COLLECT THE ADMITTED DUES AS PER THE BOOKS OF THE PETITIONER FROM RESPONDENT NO.2; C. GRANT SUCH OTHER RELIEFS/ORDERS AS THIS HON’BLE COURT MAY DEEM FIT IN THE FACTS AND CIRCUMSTANCES OF THIS CASE, IN THE INTERESTS OF JUSTICE AND EQUITY. THIS CRIMINAL PETITION, HAVING BEEN HEARD AND RESERVED ON 28.08.2025, COMING ON FOR PRONOUNCEMENT OF ORDER THIS DAY, THE COURT DELIVERED THE FOLLOWING: CAV ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. The petitioner/sugar factory is before this Court, seeking for the following reliefs: a. To set aside the order dated 27/11/2024 as per Annexure-A passed by the Respondent 2 and allow this petition. b. To consider the prayers directing the R2 to issue directions to Respondent 1 to vacate the quarters in respect of 37 workmen as per I.A. No. 9(Annexure-L) and collect the admitted dues as per the books of the petitioner without any further delay and in accordance with the directions of this Hon’ble court in W.P. NO.1486/2021 (Annexure-C), or direct the Respondent 1 to vacate the quarters in respect 37 Workmen as per the prayer of IA9 and - 3 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 collect the admitted dues as per the books of the petitioner from Respondent 2; And c. Grant such other reliefs/orders as this Hon’ble Court may deem fit in the facts and circumstances of this case, in the interests of justice and equity. 2. History and background of the matter; 2.1. The petitioner had earlier filed WP No.1486 of 2021 claiming various reliefs and permission to dispose of the machinery to settle the dues of the workmen and other dues of the company. 2.2. This Court vide order dated 18.01.2023 permitted the petitioner to withdraw the amount deposited before this Court and make payments to the workmen as per the books of the petitioner. 2.3. This Court had also directed that the workmen, after receiving the amount, are at liberty to agitate their other claims before any forum or court, and restrained the petitioner from selling - 4 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 property worth Rs.22 crores towards security against the alleged claims of the workmen. He submits that though the respondent-Union has claimed a sum of Rs.29 crores to be due, in terms of books of accounts of the petitioner- company, the due amounts are Rs.7.33 crores. This Court had directed the petitioner to disburse the admitted amount of Rs.7.33 crores without prejudice to the right of the workmen to continue their agitation regarding the balance amount. 2.4. In furtherance thereof, the claim being to an extent of Rs.29 crores, an amount of Rs.7.33 crores being directed to be paid, the petitioner was directed to furnish security to the tune of Rs.22 crores pending consideration of the claims before the Industrial Tribunal and the Controlling Authority under the Payment of Gratuity Act. - 5 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 2.5. Subsequently, the petitioner having moved this Court in WP No.1486 of 2021, on account of the Labour Court not accepting the security and no direction having been issued to the workmen to vacate the quarters. In that background, this Court vide order dated 18-01-2024 directed the Labour Court to consider the application of the petitioner offering the security to a value of Rs.29,62,00,000/- as also directed labour Court to consider the split up or break up of the payment that is made to all the workmen and directed Labour Court to pass necessary orders within six weeks, reserving liberty to the workmen to agitate their other claims. 2.6. Thereafter, on 12.03.2024, the Industrial Tribunal, Hubballi in I.D.No.84/2021 considering the applications filed by the petitioner, accepted the security offered by the petitioner, being 4 acres of land in Survey No.2 being worth of - 6 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 Rs.29 crores as sufficient and adequate security. 2.7. Thereafter, there being a dispute as regards the workmen who are in occupation of the quarters, the petitioner made an application seeking directions to the union to submit the undertaking of 37 workmen, whose names are common as regard the date of them vacating the premises and in respect of the remaining 17 workmen to file individual affidavits stating in which quarter number they are staying and, thereafter for appointment of a Court Commissioner to verify the veracity of the submissions made by those 17 persons. 2.8. No orders having been passed thereon, the petitioner once again approached this Court in WP No.102807 of 2024, when this Court directed the Tribunal to dispose of the I.A.No.5. I.A.No.5 came to be disposed by the Industrial - 7 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 Tribunal on 15.07.2024, directing the petitioner and the Union to furnish the name and address of a Court Commissioner to be appointed to inspect the disputed quarters, as also to ascertain the number of workmen residing in the quarters. The petitioner was also called upon to produce documentary evidence with regard to payment of admitted dues to the workmen. 2.9. The names for a Commissioner were submitted by both the parties. In pursuance of which, a Commissioner was appointed, he carried out inspection and submitted his report on 07-10- 2024. In terms of the said report, the Court Commissioner had indicated that the total number of workmen residing in the quarters was 39 and the number of workmen not residing in the quarters was 15. The details - 8 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 were also provided in the list submitted by the Commissioner. 2.10. Thereafter, the petitioner filed an application in I.A.No.IX seeking for a direction to the workmen, who were residing in the quarters to vacate the premises and hand over the vacant possession in the quarters to the petitioner- company. It is on the said application that the impugned order was passed on 27.11.2024 with the Labour Court being of the opinion that no such direction could be issued to the employees to vacate the quarters when the claim of the said workmen was pending adjudication. It is challenging this order dated 27.11.2024 that the petitioner is before this Court. 3. The submission of Shri R. Shashidhara, learned Counsel for the petitioner is that; - 9 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 3.1. The only option that the Industrial Tribunal had was to direct the workmen who were in occupation of the quarters of the petitioner to vacate the said premises. 3.2. The Industrial Tribunal could not have come to a conclusion that the claims are yet to be adjudicated and as such, no directions could be issued. 3.3. Once the Coordinate Bench of this Court, vide its order dated 18.01.2023 in WP No.1486 of 2021, had categorically opined that a sum of Rs.7.33 crores is to be distributed amongst the workmen, and insofar as the balance amount of Rs.22 crores, security is required to be provided. The security having been subsequently provided and accepted by the Labour Court vide its order dated 12.03.2024, passed on IA No.4. The interest of the workmen being secured, the workmen having received - 10 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 part of the payment, there is no option but for the workmen to vacate the premises. 3.4. Once a Court Commissioner had been appointed and the Court Commissioner has given the details of the persons, who are in occupation of the quarters and the quarters which are not occupied, the Industrial Tribunal ought to have directed the persons who are in occupation of the quarters to vacate the same and permit the petitioner to take possession of the quarters which are not occupied. Instead of doing so, the Industrial Tribunal by way of the impugned order has considered that there is a serious dispute as regards the dues of the workmen, the said claim would have to be adjudicated. Pending such adjudication, no direction in terms of IA No.IX could be granted is completely misconceived. - 11 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 3.5. He therefore submits that the impugned order dated 27.11.2024 passed on IA No.IX in ID No.84 of 2021 is required to be set-aside. The application in IA No.IX be allowed, directing the 37 workmen who were in possession to vacate the quarters by collecting the admitted dues. 4. Shri Anant P.Savadi., learned counsel for respondent No.1-Union would submit that; 4.1. The dues as shown in the books of accounts of the petitioner are not acceptable to the workmen. There are much more amounts which are due, the valuation made by the petitioner, is not proper and correct. It is therefore required for the Industrial Tribunal to adjudicate the actual dues and as such, he submits that the Industrial Tribunal has rightly rejected IA No.9 pending such adjudication. - 12 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 4.2. His submission is that the closure compensation is required to be taken into consideration till the date of payment; there being no formal order of closure issued under Section 25 (O) of the Industrial Disputes Act. The contention of the company that the industry had closed in the year 2017, cannot be accepted. He further contends that even post-2017, the industry continued to be operational inasmuch as retirement orders were passed of several of the workmen in the year 2019. Thus, indicating that even until 2019, the industry was functioning, requiring the petitioner to make payment of full salary even to date, since there is no order by the appropriate Government granting permission under Section 25 of the ID Act to close the industry. 4.3. When all these aspects are yet to be considered, decided and adjudicated upon, the - 13 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 workmen who are in occupation of the premises/quarters, cannot be directed to vacate the same. Thus, putting in jeopardy, their claims against the petitioner and it is in that background, he submits that this Court ought not to intercede in the matter and as such, the petition is required to be dismissed. 5. Heard Shri Shashidharan., learned Senior counsel appearing for the petitioner and Shri Anant P.Savadi., learned counsel appearing for respondent No.1. Perused the papers. 6. The short question that would arise for consideration in the present matter is “whether Industrial Tribunal had any discretion to reject IA No. 9?” 7. The nature of orders passed by Co-ordinate Bench of this Court has been detailed hereinabove. The Co- ordinate Bench of this Court in a fond hope that some amounts could be received by the workmen pending - 14 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 adjudication, had directed the petitioner to make payment of the admitted amount of Rs.7.33 crores, as also directed the petitioner employer to provide security to the balance amount claimed and in that background, the order dated 18.01.2023 was passed, which is followed up with the order dated 18.01.2024, directing the Labour Court to consider the adequacy of the security offered. 8. In the above background, it is clear and categorical that the Co-ordinate Bench of this Court has sought to protect the interests of the workmen and the petitioner employer and balance both their interests by issuing the aforesaid directions. Though the claim of the workmen as per the submission of Shri Anant P.Savadi., learned counsel for respondent No.1 is in excess of Rs.29 crores. According to the petitioner, the admitted dues are at Rs.7.33 crores and that the petitioner is willing to make payment of the said admitted amounts, ratably to all the workmen. - 15 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 9. As regards the remaining amounts and the claims of the workmen, the same are pending adjudication in I.D.No.84 of 2021. This Co-ordinate Bench of this Court having directed the petitioner to make payment of the admitted amount of Rs.7.33 crores as also to furnish security for the balance amount, the petitioner has submitted security which has been accepted by the Industrial Tribunal vide its order dated 12.03.2024, passed on I.A.No.4 in ID No.84 of 2021. 10. Thus, the petitioner having acted upon the orders passed by this Court, has changed its position by offering the security required to cater to the claims of the workmen. What the petitioner was hopeful of, was getting the possession of the properties so as to enable the petitioner to deal with those properties to settle the dues of the petitioner. 11. Admittedly, as of today, the Industry has stopped functioning, there is no work that the workmen are rendering insofar as the Industry is concerned. Even - 16 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 according to Shri Anant P.Savadi, learned counsel for respondent No.1, the quarters which are in occupation by the workmen, are more or less in a dilapidated condition. They lack maintenance and some of the workmen are in symbolic possession of the said quarters, but are not living in the said quarters on account of the same being unfit for human habitation. 12. Such being the case, I am of the considered opinion that the actions on part of the respondent-Union and the workmen in continuing to retain the symbolic possession or otherwise, is only to try and coerce the petitioner to come to terms even before the adjudication of the claims of the workmen and towards this end, the proceedings in ID No.84 of 2021 have been misused by the said workmen against the petitioner. 13. As afore indicated, when the Coordinate bench of this Court had directed the payment of Rs.7.33 crores, provide security for the balance amount pending - 17 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 adjudication in ID No.84 of 2021, much time has been spent on the tangential issues from the year 2021 till now, which time could have been well utilised by the employer, workmen and the Labour Court in determining the issues, rather than doing that, time has been spent on determination as regards the admitted amounts being due, security being furnished, who is in occupation of the quarters, etc. 14. 14. If at all the fond hope expressed by the Co-ordinate Bench of this Court in WP No.1486 of 2021 vide order dated 18.01.2023 had been accepted and acted upon, the workmen would have received an amount of Rs.7.33 crores in the year 2023 itself, and the balance due would have been adjudicated by now. 15. The Co-ordinate bench of this Court having categorically directed the workmen to vacate the premises by receiving the admitted amount pending adjudication of the disputed amount, it was but required for the Union to have complied with the said - 18 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 directions and more than that, it was required for the Industrial Tribunal to have complied with the directions issued by the Coordinate bench of this Court. Instead of doing so, the Industrial Tribunal has got sidetracked in coming to a conclusion that the dues of the employer to the workmen are yet to be adjudicated. Therefore, the workmen cannot be directed to vacate the premises. What the Industrial Tribunal ought to have realised is that the workmen are not vacating the premises unconditionally. The premises are being vacated by receiving the admitted amount of Rs.7.33 crores ratably, the balance amount would be adjudicated in ID No.84 of 2021 and such adjudication would be binding on the petitioner employer, as regards which the employer has already furnished a security of a property worth Rs.29 crores. 16. In that view of the matter, I am of the considered opinion that the Industrial Tribunal has completely - 19 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 misdirected itself while passing the order on IA No.IX. As such, I pass the following: ORDER i. The writ petition is allowed. ii. The order dated 27.11.2024 passed on IA No.IX by the Industrial Tribunal, Hubballi in ID No.84 of 2021 is set-aside. Consequently, IA No.IX is allowed. iii. The workmen are directed to vacate the premises by collecting the admitted dues as per the books of the petitioner. iv. The petitioner shall furnish a list of admitted dues to respondent No.1 within a period of 15 days from today and the amounts shall be disbursed by the Industrial Tribunal from the amount in deposit within 15 days time. v. The Industrial Tribunal, Hubballi, is directed to dispose of ID No.84 of 2021 as expeditiously as - 20 - HC-KAR NC: 2025:KHC-D:12325 WP No. 107648 of 2024 possible and determine the dues owed by the employer to each of the workmen at the earliest, at any rate, within a period of 12 months from the date of receipt of a copy of this order. Sd/- (SURAJ GOVINDARAJ) JUDGE AM/- CT:PA List No.: 1 Sl No.: 183