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1956 Supreme(Bom) 82

IN THE HIGH COURT OF BOMBAY
Chagla, C.J. and Dixit Y.V, J.
Appellants: Poona Mazoor Sabha
Versus
Respondent: G.K. Dhutia and Anr.
Special Civil Appln. No. 360 of 1956
Decided On: 27.06.1956
Counsels:
For Appellant/Petitioner/Plaintiff: M.C. Bhandare, Adv. For H.R. Gokhale, Adv.
For Respondents/Defendant: H.M. Seerwai, Adv., Little Co. and S.D. Vimadalal, Adv., Mazgaonwala Co.

A settlement arrived at through the instrumentality of the conciliation officer is binding on the parties for the duration specified in the settlement, and neither party can raise an industrial dispute with regard to the settlement during its duration.

Headnote:

INDUSTRIAL DISPUTES ACT - SECTION 12, 19(2), 19(3), 19(4), 22 - SETTLEMENT OF INDUSTRIAL DISPUTES - BINDING EFFECT - JURISDICTION OF CONCILIATION OFFICER - DISCRETION OF CONCILIATION OFFICER.

Fact of the Case:

A dispute arose between a company and its workers regarding wages, dearness allowance, and leave facilities. The workers elected representatives to negotiate with the company, and a settlement was reached on 7-4-1955. On 11-4-1955, the parties appeared before the conciliation officer, who explained the terms of the settlement to the workers' representatives. The representatives approved the settlement, and a memorandum of settlement was signed. On 1-4-1955, a union was formed and registered, and on 23-6-1955, the union made demands on the company that were the subject matter of the settlement. The company refused to concede the demands, and the union approached the conciliation officer to initiate conciliation proceedings. The conciliation officer refused, stating that there was a subsisting settlement between the parties and that he had no jurisdiction to initiate conciliation proceedings.

Finding of the Court:

The court held that the conciliation officer had jurisdiction to hold conciliation proceedings even though there was a settlement between the parties. The court reasoned that an industrial dispute does not end until a settlement is arrived at through the instrumentality of the conciliation officer and that such a settlement is binding on the parties for the duration specified in the settlement. The court further held that neither party to a settlement can raise an industrial dispute with regard to the settlement during its duration.

Issues: 1. Whether the conciliation officer had jurisdiction to hold conciliation proceedings when there was a settlement between the parties. 2. Whether a party to a settlement can raise an industrial dispute with regard to the settlement during its duration.

Ratio Decidendi: 1. The object of the Industrial Disputes Act is to bring about industrial peace, and industrial peace can only be achieved through binding settlements between the parties to a dispute. 2. A settlement arrived at through the instrumentality of the conciliation officer is binding on the parties for the duration specified in the settlement. 3. Neither party to a settlement can raise an industrial dispute with regard to the settlement during its duration.

Final Decision: The petition was dismissed.

Judgment

1. This petition raises a rather important question with regard to conciliation proceedings under the Industrial Disputes Act. It appears that there was a dispute between the second opponent company and its workers with regard to wages, dear-ness allowance, leave facilities etc. and on 30-1-1955 a meeting of the workers was called where one Mahadik was authorised by his co-workers to make representations to the second opponent company with regard to their demands.

The second opponent company wanted to negotiate with the workers who had a representative capacity and therefore the Government Labour Officer was approached to hold a meeting at which representatives of the workers would be elected under his supervision. Accordingly a meeting was-held on 17-3-1955 at which five workmen were elected by the workers present to be their representatives.

On 7-4-1955 the second opponent company and the elected representatives of the workers wrote a letter to the conciliation officer to the effect that they had come to a negotiated agreement in regard to the demand relating to wages, dearness allowance and leave facilities and that they desired to sign a memorandum of settlement before him. Accordingly on 11-4-1955 both the parties appeared before the conciliation officer, the first opponent, and produced before him a draft agreement. This draft agreement was considered by the conciliation officer and he explained to the elected representatives of the workers in Marathi the various terms of the agreement, the agreement having been drafted in English. There was considerable discussion Over each clause of the agreement and one of the terms was modified by the conciliation officer and the parties appearing before him approved of this modification.

The whole discussion lasted about an hour. The conciliation officer then adjourned the proceedings, advising the elected representatives to consult the other workers and their advisers before coming to a final decision in the matter. The elected representatives then saw the first opponent in the afternoon and approved of the draft agreement as was modified. Thereupon a memo settlement was prepared in the prescribed form and was signed by the parties.

On 1-4-1955 the petitioner Union was formed and it was registered on 1-6-1955, and on 23-6-1955 the Union made certain demands upon the second opponent company, which demands were the subject matter of the settlement already arrived at. As the employer company, the second opponent, was not prepared to concede these demands, the petitioner approached the first opponent to initiate conciliation proceedings under the Industrial Disputes Act.

The first opponent refused to do so on the ground that there was a subsisting settlement arrived at between the parties and so long as that settlement continued he had no jurisdiction to initiate conciliation proceedings under the Act. It may be pointed out that the duration of the settlement as mentioned in the settlement itself was five years. The view taken by the first opponent was that the settlement was binding upon the parties for the period mentioned in the settlement and so long as the settlement was binding it was not open to him to initiate conciliation proceedings under the Act.

The petitioner has come before us on this petition for a writ of mandamus against the first opponent to compel him to perform his statutory duty and to initiate conciliation proceedings under Section 12.

2. It has been very forcefully argued by Mr. Bhandare on behalf of the petitioner that the settlement between the parties had already been arrived at before the parties approached the conciliation officer, and according to him the conciliation officer had no jurisdiction to record the settlement which he did on 11-4-1955. For this purpose attention is drawn to Section 12 of the Act. Sub-section (1) of that section provides:

"Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute rel























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