Bombay High Court

M/S RAMLINGAM AGRO PRODUCTS PVT LTD THROU. ITS SINGATORY RAMLINGAM PALANIAPPANversusPRAVIN VASANT PATIL AND ANR

Decided: 3 September 2026
Disposal: Disposed Off

Holding

The Court modified the ex‑parte award to a lump‑sum settlement of Rs.5,00,000, set aside the Recovery Certificate, and ordered payment within two weeks, with revival of the original award if payment is not made.

Summary

The petitioner, M/s. Ramlingam Agro Products Pvt. Ltd., challenged an ex‑parte award dated 2 April 2024 that ordered reinstatement and back wages to the respondent employee. While recovery proceedings were initiated and a Recovery Certificate for Rs.9,90,000 was issued on 2 June 2026, the petitioner sought a stay on the certificate. During the hearing, the parties agreed to settle the dispute for a lump‑sum payment of Rs.5,00,000. The Court modified the original award, directing the petitioner to pay the agreed amount within two weeks and setting aside the Recovery Certificate. It further held that if the payment is not made, the original award would be revived and enforceable. The writ petition was partly allowed and disposed, and the interim application was also disposed.

Issues considered

What relief, if any, should be granted to the petitioner seeking a stay on the Recovery Certificate issued under the ex‑parte award?
Whether the original ex‑parte award can be modified to a lump‑sum settlement agreed upon by the parties?
Consequences of non‑payment of the agreed lump‑sum compensation.

Subjects

ex‑parte award
industrial dispute
settlement
lump‑sum compensation
recovery certificate
writ petition
labour law
reinstatement
back wages

Judgment

Neeta +Sawant                                           12-WP-14418-2024.docx


         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                     CIVIL APPELLATE JURISDICTION
                     WRIT PETITION NO. 14418 OF 2024
                                    WITH
           INTERIM APPLICATION (ST.) NO. 24538 OF 2026


M/s. Ramlingam Agro Products Pvt.
Ltd. through its Signatory, Ramlingam
Palaniappan                                               …..Petitioner
        : Versus :
Pravin Vasant Patil & Anr.                                ….Respondents


Mr. Kiran Bapat, Senior Advocate with Mr. Sumit Chaudhary, Mr. Swaraj
Thorat, Mr. Gaurav Gawande, Mr. Sanket Kadam, Mr. Sanket Chawan and
Mr. Abhishek Aarole, for the Petitioner.
Mr. Vijay Gehlot with Ms. Shraddha Vavhal, Ms. Simran Shaikh and Ms.
Shivani Pandey, for the Respondents.




                                       CORAM : SANDEEP V. MARNE, J.
                                       DATED :     3 SEPTEMBER 2026.
P.C :

1)              The Petitioner is aggrieved by ex-parte Award dated 2 April
2024 and prays for opportunity to defend the Reference.                  In the
meantime, recovery proceedings are initiated and the Recovery
Certificate in the sum of Rs.9,90,000/- is issued on 2 June 2026. The
Interim Application is filed for seeking stay on Recovery Certificate.



_____________________________________________________________________________
                                PAGE NOS. 1 of 2
                             Thursday, 3 September 2026
                      Neeta +Sawant                                             12-WP-14418-2024.docx


                      2)                I have heard Mr. Bapat, learned Senior advocate appearing
                      for the Petitioner and Mr. Gehlot, the learned counsel appearing for the
                      Respondent-workman.

                      3)                As the hearing of the petition progressed and at the
                      suggestion made by this Court, both the parties have agreed to settle the
                      disputes on lumpsum compensation of Rs.5,00,000/-. Accordingly, I
                      proceed to pass the following order :

                                      (i) The Award dated 2 April 2024 passed in Reference (IDA)
                                      No. 140/2022 is modified and in lieu of reinstatement and
                                      backwages, the Respondent shall be granted lumpsum
                                      compensation of Rs.5,00,000/- as full and final settlement.

                                      (ii) The Petitioner shall pay to the Respondent lumpsum
                                      compensation of Rs.5,00,000/- within two weeks.

                                      (iii)   Consequently, the Recovery Certificate dated 2 June
                                      2026 is also set aside.

                                      (iv) Beyond lumpsum compensation of Rs.5,00,000/-, the
                                      Respondent would not be entitled to any other service related
                                      benefits from the Petitioner.

                                      (v) If the amount of awarded compensation is not paid within
                                      2 weeks, the original Award shall stand revived and shall be
                                      executable.

                      4)                With the above directions the Writ Petition is partly allowed
                      and disposed of. The Interim Application also stands disposed of.
NEETA
SHAILESH
SAWANT
Digitally signed by
NEETA SHAILESH
SAWANT
Date: 2026.09.07
16:45:17 +0530
                                                                      [SANDEEP V. MARNE, J.]

                      _____________________________________________________________________________
                                                     PAGE NOS. 2 of 2
                                                   Thursday, 3 September 2026

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