Judgment

GOSWAMI, J. - The short but important question which arises for decision in this appeal by special leave turns on the interpretation of Section 19 (2) of the Industrial Disputes Act, 1947 (briefly the Act). Does law require that notice of termination under Sec. 19 (2) has to be given only after the date of expiry of a settlement? That is the question. We are informed that there is no direct authority of this Court on this point.

2. There was a settlement between the appellant, M/s. Shukla Manseta Industries Private Limited (hereinafter to be described as the employer) and their workmen on July 6, 1970. The settlement came into force from July 6, 1970 and was to remain in force for a period of three years that is till 5th July, 1973. The workmen through their union (Shukla Manseta Mazdoor Sangh) gave notice to the employer on May 6, 1973, terminating the settlement after the expiry of the period of two months from the date of the notice. Thus under the terms of the notice the settlement would also have stood terminated at the instance of the workmen on July 5, 1973, which was also the date of the expiry of the settlement under the agreed terms.

3. The workmen thereafter, raised certain demands on August 1, 1973, and the State Government, in due course referred the dispute under Section 10 (1) (d) of the Act to the Industrial Tribunal by an order dated June 25, 1974.

4. The employer took a preliminary objection before the Tribunal that the reference was incompetent and invalid in view of the fact that there was no legal and valid termination of the settlement in accordance with the provisions of Section 19 (2) of the Act. The workmen resisted the claim. The Tribunal overruled the preliminary objection and held that the notice was valid and the reference was competent. It is against the above order of the Tribunal that the employer has come to this Court by special leave.

5. We may immediately turn our attention to Section 19 of the Act which reads as follows:

"19. (1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon on the date on which the memorandum of the settlement is signed by the parties to the dispute.

(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party or parties to the settlement.

(3) An award shall, subject to the provisions of this section, remain in operation for a period of one year from the date on which the award becomes enforceable under Sec. 17A:

Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:

Provided further that the appropriate Government may, before the expiry of the said period, extend the period of operation by any period not exceed one year at a time as it thinks fit so, however, that the total period of operation of any award does not exceed three years from the date on which it came into operation.

(4) x x x x x

(5) Nothing contained in sub-s. (3) shall apply to any award which by its nature, terms or other circumstances does not impose after it has been given effect to any continuing obligation on the parties bound by the award.

(6) Notwithstanding the expiry of the period of operation under sub-section (3), the award shall continue to be binding on the parties until a period of two months has elapsed from the date on which notice is given by any party bound by the award to the other party or parties intimating its intention to terminate the award.

(7) No notice given under sub-section (2) or sub-section (6) shall have effect,