S.B.Majmudar, J. - (1.) A short but an interesting question arises for consideration in this appeal by certificate granted by the High Court of Judicature at Madras under Article 133(1) of the Constitution of India. It reads as under:-"Whether an individual workman governed by the Industrial Disputes Act, 1947 (hereinafter referred to as 'the Act') can claim lay-off compensation under Section 25-C of the Act despite a settlement arrived at during conciliation proceedings under Section 12(3) of the Act by a union of which he is not a member and when such settlement seeks to restrict the right of lay-off compensation payable to such workman as per the first proviso to Section 25-C of the Act."
(2.) A few relevant facts leading to these proceedings require to be stated at the outset:- BACKGROUND FACTS:
(3.) The five appellants before us were employed at the relevant time under respondent No. 1 in various departments. Respondent No. 1 was running a textile mill wherein the appellants were employed. The said textile mill remained closed due to financial crises from 8-8-1976 to 31-1-1978. The workmen of the mill raised a dispute pertaining to lay-off during the aforesaid period and claimed appropriate wages for the said period. In the conciliation proceedings a settlement was arrived at between the parties on 28-12-1977. Five unions representing all the workmen took part in the conciliation proceedings. A settlement was arrived at in these proceedings between the management on the one hand and the unions on the other. In clause 6 of the settlement, it was provided that lay-off compensation would be paid for the days during which the mill did not function and marked as "no work". It was also agreed that the compensation would be paid after January 1981 in instalments and the question as to the number of instalments would be decided by both parties on mutual discussion in January 1980. Though it was agreed under that settlement in January 1980, the workers insisted upon immediate payment of compensation and raised another dispute. Consequently, the earlier settlement lost its efficacy. Again the matter was referred to the Conciliation Officer who held negotiations. Different unions representing various categories of workmen took part in the negotiations. The union representing the present appellants also took part in the said negotiations. Ultimately a fresh settlement was arrived at during conciliation proceedings as per Section 12(3) of the Act on 5-5-1980. Out of five unions representing the workmen of respondent No. 1-Textile Mill, four unions signed the said settlement but the union representing the appellants did not think it fit to sign the same. The relevant terms of the aforesaid settlement under Section 12(3) of the Act in connection with the payment of lay-off compensation read as under:- "TERMS OF SETTLEMENT: 1. It is agreed that this settlement shall be applicable to all permanent employees of the Mills except (a) Watchmen (b) Electrical Department workers (c) Staff in respect of whom a separate settlement has been signed. 2. It is agreed that in respect of the period 8-8-1976 to 7-8-1977, all workers who were laid off during that period shall be paid lay-off compensation for the first forty-five days of lay-off and that no compensation shall be payable in respect of the days of lay-off after the expiry of the first forty-five days. 3. It is further agreed that in respect of the period 9-8-1977 to 31-1-1978, all workmen who were laid-off during that period shall be paid lay-off compensation for the first forty-five days of lay-off and that no compensation shall be payable in respect of the days of lay-off after the expiry of the first forty-five days. 4. In addition to the lay-off compensation payable under clauses (2) and (3) above each permanent workman shall be paid an ex-gratia sum which shall be calculated as follows: The total of the compensation amount payable to each permanent worker under clauses (2) and (3) above and the ex-gratia amount shall be equal to 67% of the total lay-off compensation payable for him in respect of all the days of lay-off during the period 8-8-1976 to 31-1-1978." ;