M/S HMT MACHINE TOOLS LIMITED (MBX) v. CONTROLLING AUTHORITY

Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA (BY SRI RAYAPPA Y HADAGALI, ADVOCATE) AND:

1. CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT AND ASSISTANT LABOUR COMMISSIONER (CENTRAL) SHRAM SADAN, 3RD CROSS, 3RD MAIN, 2ND PHASE, TUMKUR ROAD, YESWANTHPURA, BANGALORE - 560022.

2. DEPUTY COMMISSIONER, BANGALORE DISTRICT, KANDAYA BHAVAN, K.G.ROAD, BANGALORE - 560009. - 2 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR

3. THE SPECIAL TAHASHILDAR, BANGALORE NORTH TALUK, KANDAYA BHAVAN, K.G.ROAD, BANGALORE - 560009.

4. MR. M.S.LOKESH, SON OF LATE MR. SOMESHWARAIAH AGED ABOUT 64 YEARS, NO.144, 5TH MAIN ROAD, KEB LAYOUT, BTM 1ST STAGE, BANGALORE - 560029.

5. MR. MUNIRAJ B N, SON OF MR. M NARAYANA GOWDA, AGED ABOUT 63 YEARS, NO.9, 1ST A CROSS, CHOWDESHWARI NILAYA, SARWABOWMA NAGAR, CHIKKAKALSANDRA, BANGALORE - 560061.

6. MR. N PUTTASWAMACHAR, SON OF MR. N M NARASIMHACHAR, AGED ABOUT 63 YEARS, NO.65, OPP. ROYAL ENGG. WORKS, BYRAWESHAWAR NAGAR, MANGANAHALLI CROSS, ULLAL, BANGALORE - 560110.

7. MR. ANJANEYALU T, AGED ABOUT 62 YEARS, SON OF MR. RAJAIAH T., H.NO.A-117, SECTOR - II, HMT COLONY, JALAHALLI POST, BANGALORE - 560013.

8. MR. V ANAND, SON OF MR. VEERABHARDRACHAR, AGED ABOUT 63 YEARS, NO.J-154, SECTOR I, HMT COLONY, JALAHALLI POST, - 3 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR BANGALORE - 560013.

9. MR. HEMANTHKUMAR P S, SON OF MR. P M SHANKARA RAO, AGED ABOUT 65 YEARS, NO.6, 5TH CROSS, R A ROAD, ANUSHANKAR NILAYA, NEAR SUNDARI MEMORIAL SCHOOL, EJIPURA, VIVEKNAGAR POST, BANGALORE - 560047.

10. MR. N S ANANTHANARAYANA, SON OF MR. N SRINIVASA MURTHY, AGED ABOUT 61 YEARS, NO.12, ANGHA, 3RD MAIN ROAD, SHARADAMBA NAGAR, JALAHALLI, BEHIND RAGHAVENDRA MUTT, BANGALORE - 560013.

11. MR. VISHWANATH MALYA, SON OF LATE MR. RAMANATH MALYA, AGED ABOUT 61 YEARS, NO.20, 2ND CROSS, VENKATESHWARA LAYOUT, NEW BEL ROAD, BANGALORE - 560054. (BY SRI H SHANTHI BHUSHAN, DSGI FOR R1, SRI M RAJAKUMAR, AGA FOR R2 AND R3, SMT RASHMI K, ADVOCATE FOR SRI M SUBRAMANYA BHAT, ADVOCATE FOR R4 TO R11) …RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED JAPTI HUKUM/ ATTACHMENT ORDERS BEARING NOS.(i) M.S.C/R/CR/167/2022-23(ii) M.S.C/R/CR/33 /23-24(iii) M.S.C/R/CR/161/2022-23(iv) M.S.C/R/CR/37/2023- 24(v) M.S.C/R/CR/143/2022-23(vi) M.S.C/R/CR/196/2022- 23(vii) M.S.C/R/CR/37/2023-24(viii) M.S.C/R/CR/37/2023- 24(ix) M.S.C/R/CR/40/2017-18(x) M.S.C/R/CR/21/2016-17(xi) M.S.C/R/CR/24/2017-18 AND (xii) M.S.C/R/CR/85/2021-22 ALL DATED 16/01/2024, ISSUED BY THE R3 VIDE ANNEXURES-A, B, C, D, E, F, G, H, J, K, L AND M RESPECTIVELY. - 4 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 ...PETITIONER HC-KAR IN WP NO. 5381/2024 BETWEEN: M/S HMT MACHINE TOOLS LIMITED(MBX) A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT BANGALORE COMPLEX, JALAHALLI P.O, BANGALORE - 560 013, REPRESENTED BY ITS DEPUTY GENERAL MANAGER (P), INCHARGE MBX- MR SUBRAMANYA. (BY SRI RAYAPPA Y HADAGALI.,ADVOCATE) AND:

1. CONTROLLING AUTHORITY, UNDER THE PAYMENT OF GRATUITY, ACT AND ASSISTANT LABOUR, COMMISSIONER (CENTRAL) SHRAM SADAN, 3RD CROSS, 3RD MAIN, 2ND PHASE, TUMKUKR ROAD, YESWANTHPURA, BANGALORE - 560022.

2. DEPUTY COMMISSIONER, BANGALORE DISTRICT, KANAYA BHAVAN, K G ROAD, BANGALORE - 560009.

3. THE SPECIAL TAHASILDAR, BANGALORE NORTH TALUK, KANDAYA BHAVAN, K G ROAD, BANGALORE - 560009.

4. MR CHIKKAHUCHAIAH, SON OF MR PILLA HICHAIAH, AGED ABOUT 69 YEARS, NO 1183, 12TH MAIN 4TH CROSS, RAGHAVENDRA BLOCK, SRINAGAR, - 5 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR BANGALORE - 560 050.

5. MR T R MANJUNATHA, SON OF LATE MR T K RATHNAM SHETTY, AGED ABOUT 65 YEARS, NO. 10, 1ST MAIN NATARAJ LAYOUT, J P NAGAR, 7TH PHASE, BANGALORE - 560 078.

6. MR S N VARADARAJU, SON OF MR S V NANJUNDA SHETTY, AGED ABOUT 66 YEARS, 28/7/1, 18TH CROSS, 19TH MAIN M C LAYOUT, VIJAYANAGAR BANGALORE - 560040.

7. MR NAGANATH H L, AGED ABOUT 65 YEARS, SON OF LAKSHMAN RAO, H NO 53, MALLIKARJUNA TEMPLE, STREET, 2ND CROSS CHICKPET, BANGALORE - 560053.

8. MR V LAKSHMINARASIMHA PRAKASH, SON OF MR V S NEELAKANTA RAO, AGE ABOUT 65 YEARS, NO. 60, 2ND CROSS NATARAJ LAYOUT, J P NAGAR, 7TH PHASE, BANGALORE - 560078.

9. MR SYED ISMAIL, SON OF LATE MR SYED YUSUFF, AGED ABOUT 64 YEARS, NO 1 1ST CROSS, BEERAPPA GARDEN, CHAMUNDINAGAR, R T NAGAR POST, BANGALORE - 560 032.

10. MR B BALAJI SINGH, SON OF MR B HANUMAN SINGH, AGED ABOUT 63 YEARS, NO. 29, 1ST A MAIN, 1ST BLOCK, - 6 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR GORAGUNTEPALYA, BANGALORE - 560 022.

11. MR KRISHNAMARAJU S V, SON OF MR S NARASIMHA RAJU, AGED ABOUT 61 YEARS, NO. 571/32, 1ST MAIN, ANJANEYA LAYOUT, THINDLU VIDYARANYAPURA, BANGALORE - 560097.

12. MR BASAVARAJ K, SON OF MR KEMPAIH, AGED ABOUT 65 YEARS NO. 7, 20TH MAIN J C NAGAR, KURUBARAHALLI MAHALAKSHMIPURA, BANGALORE - 560 086.

13. MR B R RAMPRASAD, SON OF MR RANGANATH RAO, AGED ABOUT 65 YEARS, NO 1662//8B, 1ST MAIN, 1ST CROSS, RAILWAY PARALLEL ROAD, RAMACHANDRAPURAM, BANGALORE - 560021.

14. MR T P BHUVANESWARAN SON OF MR T M PALANISWAMY, AGED ABOUT 64 YEARS, NO 140A, 4TH CROSS, 7TH MAIN, 1ST FLOOR, J P NAGAR, 3RD PHASE, BANGALORE - 560078.

15. MRS VIMALA M S, WIFE OF MR SUBBAIAH M N, AGED ABOUT 66 YEARS, FLAT NO. 298, 2ND FLOOR, 970/13, 15TH A CROSS, A SECTOR, KHB HIGH RISE APARTMENT, YELAHANKA NEW TOWN, - 7 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR BANGALORE - 560 064. (BY SRI H SHANTI BHUSHAN, DSGI FOR R1, SRI M RAJAKUMAR, AGA FOR R2 AND R3, SMT RASHMI K, ADVOCATE FOR SRI M SUBRAMANYA BHAT, ADVOCATE FOR R4 TO R15) ...RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TOQUASH THE IMPUGNED JAPTI HUKUM NOTICES BEARING NOS. i) M.S.C/R/CR/45/2023-24. ii) M.S.C/R/CR/41(A)/23- 24 iii) M.S.C/R/CR/166/22-23,I v) M.S.C/R/CR/23/17-18, v) M.S.C/R/CR/20/17-18, vi) M.S.C/R/CR/110/23-24vii) M.S.C./R/CR/110/23-24, viii) M.S.C./R/CR/37/23-24,ix) M.S.C/R/CR/21/2016-17, x) M.S.C/R/CR/24/2017-18,xi) M.S.C/R/CR/85/2021-22, xii) M.S.C/R/CR/40/2017-18, ISSUED BY THE R3 VIDE ANNEUXRES-A, B,C,D, E, F, G AND H, ALL DATED 25/01/2024 AND ANNEXURE-Y, K, L AND M ALL DATED 08/02/2024. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE ORAL ORDER These petitions are filed assailing the orders marked as Annexures-A to M in terms of which, respondent No.3- Special Tahasildhar has issued attachment order to recover the dues as arrears of land revenue.

2. Learned counsel for petitioner would submit that the petitioner is required to pay the gratuity to its employees - 8 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR and the interest on the said amount. It is his submission that the entire gratuity amount has already been paid and out of @10% per annum the interest payable, 50% of the interest has already been paid and the balance of 50% of the interest due is required to be paid and the petitioner would pay the amount in another four (04) months.

3. It is his further submission that while passing the interim orders, notice was not given to the petitioner and he was not heard and it is also urged that the question raised in this petition is covered in terms of the order passed by the Co- ordinate Bench of this Court in W.P.No.12662/2023.

4. Learned counsel for respondents would fairly submit that the petitioner was not heard before passing the impugned orders.

5. This Court has considered the contentions raised at the Bar, perused the records and also considered the judgment of the Co-ordinate Bench of this Court in W.P.No.12662/2023.

6. This Court while interpreting the provisions of Section 8 of the Payment of Gratuity Act has concluded that - 9 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR while passing the orders under Section 8 of the Act and while issuing the recovery certificate, authority under the Act is required to give a reasonable opportunity of hearing to the respondents relating to compound interest payable by the respondent/employer.

7. Learned counsel for the petitioner would submit that the amount mentioned in the impugned orders would also include the claim for compound interest. It is not in dispute that the show cause notice is issued and the petitioner is not heard before passing the impugned orders. Hence, the following: ORDER (i) Petitions are allowed. (ii) The impugned orders Annexures- A,B,C,D,E,F,G,H,J,K,L and M are quashed. (iii) Respondents are permitted to file an application under Section 8 of the Payment of Gratuity Act,

1972. Thereafter, the petitioner should be heard on the said application and appropriate orders are to be sought. - 10 - NC: 2026:KHC:2761 WP No. 4652 of 2024 C/W WP No. 5381 of 2024 HC-KAR (iv) The balance admitted interest payable to the petitioner shall be paid within three months from the date of this order.

8. It is made clear that this Court has not expressed anything on the merits of the matter.

9. All contentions are left open. Sd/- (ANANT RAMANATH HEGDE) JUDGE CPN/CHS List No.: 1 Sl No.: 55