*1* wp.1681.11.914.sxw kps IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.1681 OF 2011 M/s Gulf Air Company. ..Petitioner -versus- Santosh Verma. ..Respondent ............ Mr.S.K.Talsania, Senior Advocate a/w Mr.Vishal Talsania, Mr.Sanjay Udeshi i/b Sanjay Udeshi & Company, for the Petitioner. Mr.Mohan Bir Singh a/w Mr.R.Jalan, for the Respondent. Mr.Paresh Ghatge, Administrative Recruitment Specialist of the Petitioner, present in person. ............ CORAM : S.C.DHARMADHIKARI, J. Date : 21st October, 2011. P.C.: 1 This is a petition by the Petitioner under Article 226 of the Constitution of India wherein the Award that has been passed by the Court below, namely, Central Government Industrial Tribunal-I, Mumbai in Reference No.CGIT-1/22/2001 dated 05.05.2011 is challenged. Under the impugned award, copy of which is annexed at Exhibit-BB to the petition, the Tribunal has directed the Petitioner to reinstate the Respondent with 75% backwages. 2 This petition was placed for admission and upon a query from the Court, it was stated by Mr.Mohan Bir Singh, learned counsel appearing for the Respondent, that the Respondent is going to retire on attaining the age of superannuation w.e.f. 21st November, 2011, however, if any amicable settlement is offered, the Respondent will voluntarily retire from the services of the Petitioner. Accordingly, both sides took time *2* wp.1681.11.914.sxw to workout monetary amicable settlement. 3 When the matter was placed today, it was stated that there was small difference of opinion over the sums to be paid towards full and final settlement. Both, Mr.Talsania and Mr.Singh, in presence of the respective parties, were fair enough to leave the matter to the Court. Accordingly, after some discussion, the Respondent has agreed that if the Petitioner pays a sum of Rs.30 lacs, same will be accepted in full and final settlement of all claims of the Respondent against the Petitioner in relation to the employment and arising out of the award, save and except his entitlement to the provident fund amount lying with the Provident Fund Authorities. 4 Mr.Talsania stated that this sum is acceptable to the Petitioner and they would pay the same within a period of six weeks from today. 5 Upon the Petitioner paying Rs.30 lacs to the Respondent within a period of six weeks from today, the same shall be accepted in full and final settlement of all claims as stated above. In addition, the Respondent shall be entitled to the amount lying to his credit in the account of the Provident Fund Authorities and the Petitioner (Employer) shall render all assistance to the Respondent by filling up the requisite forms and certificates so as to enable the Respondent to obtain sums and have it released from the Provident Fund Authorities. 6 It is stated that in the light of this settlement, which is recorded in presence of the parties, the Petitioner does not press this petition and the impugned Award including its operative portion shall stand modified with a direction that the Respondent stands voluntarily retired from the services of the Petitioner w.e.f. 21st October, 2011, but on a condition that a sum of Rs.30 lacs is released within time stipulated above, namely, six weeks from today. All statements made by both sides *3* wp.1681.11.914.sxw are accepted as undertakings to this Court. The Writ Petition is, accordingly, disposed of. No costs. 7 Needless to state that save and except the claim for provident fund which stands excluded from the purview of the settlement, the amount of Rs.30 lacs which is being offered and paid as above, shall be treated as having been accepted by the Respondent in satisfaction of all claims including gratuity. 8 It is requested by Mr.Talsania, as also, Mr.Singh that the sum which is being paid will be subject to the tax under the Income Tax Act, 1961 with all its statutory modifications and amendments till date. Further, the Petitioner will have to deduct the tax at source and forward a certificate in that behalf. Equally, in the sum which is being received in lumpsum by the Respondent, he will be incurring tax liability. 9 In such circumstances, it is directed that the amount paid in terms of this order shall be spread over and necessary entries in the assessment of the Respondent as income tax should be made so as to enable him to get benefits. Equally, the Petitioner will deduct the tax at source on this sum and forward necessary certificate within the above period so as to enable the Respondent to avail of the benefits under the Income Tax Act. 10 The Writ Petition is, accordingly, disposed of. No costs. (S.C. Dharmadhikari, J)