The Court heard petitions filed by the Internet and Mobile Association of India, Swiggy, Zomato, Zepto, Urban Company and Valmo Transportation challenging the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025. The Bench, presided over by Justice M Nagaprasanna, declined to issue a stay on the Act but granted the petitioners interim protection from any coercive action under the statute, provided they deposit the welfare contribution payable for the second quarter of the current year.
Justice M Nagaprasanna observed that the amount sought by the State is not a charitable donation but a statutory obligation enacted by the legislature. He rejected the petitioners’ request to furnish a bank guarantee in lieu of the deposit, stating that the law requires a direct payment. The Court directed the aggregators to deposit the due amount before the Court within three weeks and clarified that, in light of this direction, no coercive steps will be taken against the petitioners until the next date of hearing.
The Bench emphasized that the interim arrangement seeks to balance the interests of the petitioners, the State government and the gig workers who may ultimately be entitled to the welfare benefits. It noted that the protection is conditional and will remain operative only until the matter is further heard.
During the proceedings, Justice M Nagaprasanna questioned the resistance shown by the aggregators towards payment of what he described as a nominal welfare contribution. He remarked, “I am seriously thinking, why are you fighting? Say for fifty paise?” Senior Advocate Dhyan Chinnappa, representing the petitioners, responded by querying the multiplication factor underlying the fifty paise figure.