Bhandara Coop Bank Settles Rs3L Back Wages

Authority: Supreme Court (Special Lok Adalat)

Order Date: 22-08-2026

Parties: Bhandara District Central Cooperative Bank Ltd (appellant) and the legal heirs of the deceased respondent Anandrao Tulshiram Khumbalkar.
Background: Respondent was terminated and filed ULPA before Labour Court Bhandara; Labour Court ordered full back wages. High Court (Nagpur Bench) on 15.10.2013 modified the award to 30% back wages calculated from termination to retirement. The appellant filed a Special Leave Petition challenging this judgment.
Settlement: A settlement deed dated 31.07.2026 was executed before the District Legal Services Authority, Bhandara. Respondent died on 28.11.2018; legal heirs are Lalita Anandrao Kumbhalkar (widow), Sulaxna Kusaram Ghollar (daughter), Smita Yadorao Talmale (daughter) and Gulshan Anandrao Kumbhikar (son). All claims arising from the High Court order dated 15.10.2013, except the gratuity claim adjudicated on 02.08.2023, are settled for Rs 3,00,000. The amount is to be received by Lalita on behalf of all heirs via demand draft before the Special Lok Adalat.
Payment Terms: Upon receipt of the amount, the heirs acknowledge that the payment constitutes full, final and complete satisfaction of all back‑wage claims and agree not to raise any further proceedings. The settlement expressly excludes the gratuity claim, which remains independent and will be adjudicated in accordance with the Payment of Gratuity Act, 1972.

The Supreme Court disposed the appeal in terms of the settlement. The appellant is obligated to pay Rs 3,00,000 to the heirs as full settlement of back‑wage claims. The gratuity claim remains pending and will be dealt with separately.

Topics: Labour Law Settlement, Banking Dispute