Parties can’t raise dispute during settlement period — SC

It said a settlement once entered into between the parties should be operative until the same was terminated as provided under Section 19 of the Industrial Disputes Act.

Justice Babu, writing the judgement for the bench, said "the object of such a provision is to ensure that once a settlement is entered, industrial peace prevails according cordialities between the parties during the period agreed upon. The same position should continue by extension of the settlement by operation of law."

He, however, said in an appropriate case, Government could make a reference under the Act on the ground that since the time settlement was entered into there has been material change in the circumstances.

While deciding a case between National Textile Corporation and Sree Yellama Cotton, Wollen and Silk Mills Staff Association, the Bench said in this case there was such a change of situation.

Justice Babu said in the original settlement between the parties there was no provision of working the mills all seven days a week nor was any provision made in regard to higher emoluments applicable to either class of workmen.

The Labour Court noticed that a gardner, who had been categorised as a member of ministerial staff, could get less emoluments than his helper who came under the category of workmen, the Bench said.

In view of this, the Labour Court gave relief to employees categorised under ministerial staff but only from a date on expiry of the period as agreed in the settlement entered into by the parties, Justice Babu said.

"Section 19 of the Act limits the variation of settlement but if there has been any material change in the circumstances available in the establishment of an employer certainly such a situation can not be ignored altogether to state that settlement alone should be adhered to whatever be the situation," he said.

"If such a settlement cannot be worked out in a congenial atmosphere between the workmen and the employer it will be difficult to maintain industrial peace and these aspects are to be borne in mind by the Labour Court," the Bench said.