Desai, J. - (1.) If solemn agreements proposed by the employer and readily acceded to by the workmen and holding the forte for over a quarter of a century are crudely disowned compelling the workmen to knock at the door of the apex Court for removing the road-block in the access to justice set up by preliminary objection of technical nature, industrial peace and harmony chanted by the employer would be not merely an empty mantra but a futile exercise of chasing a mirage and unfortunately that is the situation here.
(2.) Hindustan Lever Ltd., a multi-national company, respondent herein addressed a communication dated January 24, 1957 recording the outcome of mutual deliberations, between the Hindustan Lever Ltd. (employer' for short) and the Hindustan Lever Mazdoor Sabha ('union' for short) recognised representative union of the workmen employed by the employer. The relevant portion may be extracted: "Ex. W-2 24th January, 1957 The President, Hindustan Lever Mazdoor Sabha, Bombay. Dear Sir, Referring to our recent meeting about field force, we would like to place on record that: (1) We recognise you as the representive union for all sections of field force all over India. (2) You have agreed to treat all matters relating to wages/salaries, and terms and conditions of service on an all-India basis and not on a regional basis as far as field force is concerned. (3) For all matters of an all-India nature relating to field force, you will communicate with the Personnel Director. We hope that all such matters will be settled by direct negotiation but if at any stage you decide to refer the matter of conciliation, you will do so only at Bombay. We, on our part, give you the assurance that if the matter is referred to a Tribunal in Bombay then its award will be applied by you to field force all over India. For this reason, you will agree that it will he only proper for the Tribunal to examine the matter in an all-India perspective. (4) Although we do not anticipate any problems of a purely local nature, in case such problems do arise your members will first try to arrive at a solution by approaching their own managers and if this fails, your local Committee should refer the matter to the local Commercial Manager or Office Manager. (5) For future dispute we shall not contest issues about field force on the basis of their not being 'workmen' but shall contest issues only on their merits in the same way as we do for other employees. Please confirm that you agree with the points mentioned above. Yours faithfully, Sd/- B. K. Bindani" The union responded to this communication as per its letter dated April 24, 1957 which reads as under: "Ex. W-3 The Personnel Manager, Hindustan Lever Limited, Scindia House, Ballard Estate, Bombay-1 24th April, 1957 Dear Sir, With reference to your letter Personnel KSB/BN/49 dated 24-1-1957 and in the light of further discussions we had with you on the subject, we would like to state as under: 1. We thank you for recognising us as the Representative Union for all sections of the Field Force employees all over India. 2. We agree that certain major issues such as salary, wages, bonus, provident fund, gratuity, leave etc. will be treated as far as possible on an all-India basis. 3. We agree that for all matters of an all-India nature, we will communicate with the Personnel Director. As for the other points raised by you, we agree to follow the procedure, as far as legally permissible. 4. Local matters, if not settled by negotiations, will have to be dealt with otherwise. For instance, the Sabha may go in for conciliation or may be free to resort to any other legitimate and/or peaceful method. 5. We are indeed glad to note that you will not contest issues about field force on the basis of their not being 'workmen' but you will contest issues only on their merits in the same way as you do for other employees, We wish to take the opportunity also to confirm your agreement with us that in regard to demands relating to Field Force contained in Ref. No. 48 of 1956; now pending adjudication at Delhi, you will not contest the issue on the basis of their not being 'workmen but you will contest the issue on the merits of the demands as you do for other employees. Yours faithfully, Sd/- P. Pullat President 1st May, 1957" A further communication ensued from the employer dated May 1, 1957. It is not necessary to reproduce the whole of it save and except that the employer wanted to be assured that the union by its communication dated April 24, 1957 unequivocally intended to confirm the items of agreement relating to various items of industrial disputes between the parties as set out in its communication dated January 24, 1957 and further sought clarification of the two points raised by the union.
(3.) The substantial question is whether there emerged a concluded agreement between the parties and binding on the parties till it is terminated according to law The question of the existence of a concluded agreement and. its validity arises in the following circumstances.;