WA/1831/2026 of Kovai Periyaar Maavatta Dravida Panchalai Munnetra Vs K.Parthasarathy Spinning Millas on 9 September 2026

JUDGMENT

(Judgment of the Court was made by Dr.G.Jayachandran, J.) Challenging the order passed by the learned Single Judge in W.P.No.46665 of 2025, dated 24.03.2026, the present appeal has been filed by the workers’ union, namely Kovai Periyar Maavatta Dravida Panchalai Munnetra Sangam .

2. The facts, in brief, are that M/s K.Parthasarathy Spinning Mills, in which the appellants were employed, retrenched the workmen, in view of the closure of the Mill. However, having found that the management has not paid its contribution towards Employees’ Provident Fund Scheme, the Employees’ Organisation proceeded against the management and got an order of attachment of the immovable property vide an order dated 17.07.2025. Pursuant to the attachment order for recovery of a sum of Rs.1,29,36,447/- towards penalty, the immovable property, namely machinery, was put to auction and a sum of Rs.1,79,53,392/- was recovered.

3. Pursuant to the order of this Court, the third party appellant has come before this Court stating that the terminal benefits and other incidental benefits payable to the workmen were not disbursed and the writ petition No.46665 of 2025 filed by the Management challenging the award passed by the Labour Court is still pending. Therefore, if the machinery sold to M/s Isha Associates is allowed to be removed without clearing the dues payable to the workmen, the interest of the workmen will be affected and it will cause irreparable injury.

4. It was also contended by the third party appellant that the auction price of the machinery is grossly undervalued to siphon out the money and left the employees hue and cry. Having found the prima face case in favour of the appellant-union, this Court on 27.03.2024, while entertaining the third party appeal, granted an order of interim stay. After notice, the parties appeared through their respective counsel and submitted their respective case.

5. The purchaser M/s Isha Associates, also filed an application to get itself impleaded as 4th respondent. The learned counsel appearing for the purchaser submitted that there is no undervaluation of the machinery purchased. If the interim stay is continued, the value of the machinery will get depreciated due to failure of its maintenance and depreciation.

6. The learned counsel appearing for the management submitted that the claim of the workmen, through their Union is contested and is yet to be finalised. The management possessed sufficient property of both immovable and movable property to meet out the claim of the workmen, if the workmen finally succeeded in the pending litigation. Therefore, the apprehension of the workmen expressed through the third party appellant Union is ill-founded. In the course of his submissions, the learned counsel appearing for the management submitted that the management is ready to offer immovable property worth several fold more than the disputed claim of the workmen as security. In this connection, an undertaking affidavit has also been filed by Mr.P.Gopal Krishna, the Managing Partner of M/s K.Parthasarathy Spinning Mills.

7. The operative portion of the undertaking reads as below:- “2. I submit that, pursuant to the direction of this Hon’ble Court, to furnish security to the sum value of the award dated 11.01.2024 passed in I.D.No.17 of 2018 by the Hon’ble Industrial Tribunal. The 1st Respondent offer as security the property measuring 18.28 acres, comprised in Survey Nos.24/1B, 24/3A, 25/1, 26/1C, 81/1 and 81/3 situated at Ganapathypalayam Village, Udumalpet Taluk, Tiruppur District, toards securing the amount payable under the award dated 11.01.2024 in I.D.No.17 of 2018, which is the subject matter of W.P.No.8480 of 2024, without prejudice to the rights and contentions of the 1st respondent in therein.

3. I submit that the 1st respondent hereby undertakes not to alienate the aforesaid property pending disposal of W.P.No.8480 of 2024 on the file of this Hon’ble Court. “

8. The learned counsel appearing for the appellant submitted that there are few more claims of the workmen against the management, which are pending in the connected writ petitions.

9. On further examination of the above submissions, we find that those claims are only for a few lakhs, totally less than one crore. Whereas the claim in the writ appeal mentioned is around Rs.1,50,00,000/-. Whereas the approximate value of the land offered security is more than crores. Therefore, the interest of the third party appellant will be protected adequately, if the management namely, K.Parthasarathy Spinning Mills is restrained from creating any further charge over the property offered as security. Hence, we dispose of the writ appeal with the following directions:-

1. The machinery purchased by M/s Isha Associates measuring 18.28 acres, more fully described in paragraph No.2 of their undertaking affidavit shall be permitted to be removed from the campus of the M/s K.Parthasarathy Spinning Mills and if necessary, the parties can seek police protection.

2. The Management namely, M/s K.Parthasarathy Spinning Mills shall file necessary affidavit in the pending writ petition initiated by them, reflecting the terms of the undertaking given in this writ appeal.

3. The above directions are issued only to ensure that the workmen are not deprived of any benefit that may derive from the pending litigations and it shall not be construed as a finding in the pending litigation regarding the service benefits.

10. With the above directions, this Writ Appeal is disposed of. No order as to costs. Consequently, connected Miscellaneous Petition is closed. (Dr.G.JAYACHANDRAN,J.) (E.MANOHARAN,J.) 09.09.2026 ari Index:yes/no Neutral citation:yes/no To

1. Mr.P.Gopal Krishna, The Managing Partner M/s K.Parthasarathy Spinning Mills Ganapathipalayam Village & Post, Udumalpet 642 122, Tiruppur District.

2. Regional Provident Fund Commissioner-II, Employees Provident Fund Organisation Regional Office, 497, First Floor, M/s Muthusamy & Bros Industrial Complex Palladam Road, Tirupur 641 604.

3. The Assistant PF Commissioner & Recovery Officer Regional Office, 497, First Floor, M/s Muthusamy & Bros Industrial Complex Palladam Road, Tirupur 641 604.

4. Mr.R.Deepan Raj, M/s ISHA Associates, Proprietor 40/51, N.G.R. Street, Udayampalayam, Coimbatore 641 028.

Dr.G. JAYACHANDRAN,J. AND E.MANOHARAN,J. ari Writ Appeal No.1831 of 2026 and C.M.P.No.16582 of 2026 09.09.2026