Decided on November 11,2013

Satyam Auto Components Ltd. Appellant
State of Uttarakhand and others Respondents


Sudhanshu Dhulia, J. - (1.) The petitioner is a Company which is presently engaged in manufacturing of auto parts. The Company had suspended a group of workmen and it also terminated the services of another group of workmen. Since the conciliation proceedings could not bear any result, therefore, the matter was referred to Labour Court under Section 4K of the U.P. Industrial Disputes Act, 1947 (hereinafter referred to as the Act) for the settlement of the dispute.
(2.) While the reference was pending before the Labour Court, it appears that the settlement was arrived at between some of the workers and the employer i.e. the present petitioner and consequently, the said settlement was placed before the Labour Court. An objection was raised by a group of workmen to whom the settlement did not address or was of any benefit and they prayed for the continuation of labour proceedings. An objection was raised by the petitioner before the Labour Court stating therein that the settlement has been arrived at between the workmen and employer, though outside the conciliation proceedings, it is a settlement binding upon all the workers as it has been signed by the seven workers, who were authorized by all the workmen whose names were also bear in the reference order, as such it is a settlement binding on all the parties.
(3.) The argument of the petitioner that respondents/workmen had authorized seven workers, who are actually signatory of the agreement, therefore, the settlement is binding upon the workmen is not correct, inasmuch as, the settlement between the workmen and employers were not a settlement arrived at during the conciliation proceedings, but it is a settlement arrived at outside the conciliation proceedings, which is binding only to the parties, who have signed the agreement. Since the respondents are not the workmen, who are signatories to the agreement, it is not binding on them.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.