IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
M/s Wearwell (India) Private Limited - Appellant
Versus
Dharmender Kumar Tanti - Respondent
Civil Writ Petition No. 2105, 2106 of 2022
Decided On : 03-02-2022
Settlement - Industrial Disputes - Payment of Wages Act, 1936 - Section 15(2) - Section 18(1) ID Act - [SUMMARY OF ACT SECTIONS REFERENCED AND DISCUSSED]
Fact of the Case:
The case involves a dispute between a Workman and Management regarding the amount payable as per a settlement entered into before the Conciliation officer under the Industrial Disputes Act, 1947. The appellate Court set aside the penalty imposed by the authority and held that the pre-deposit amount cannot be refunded as the settlement was not confirmed by the Workman.
Finding of the Court:
The Court found that the settlement entered into between the parties was valid and legal under Section 18(1) of the ID Act, and the settlement should be taken note of and recorded. The Court set aside the impugned order and directed the refund of the pre-deposit amount to the Management, granting liberty to the Workman to approach the appellate Court if there is any dispute in respect of the settlement.
Issues: The issues revolved around the validity and acceptance of the settlement by the Workman, the refund of the pre-deposit amount, and the binding nature of settlements in industrial disputes.
Ratio Decidendi: The Court relied on the provisions of Section 18(1) of the ID Act and the Supreme Court decisions in The State of Bihar v D.N.Ganguly and National Engineering Industries Ltd. v State of Rajasthan to establish the validity and binding nature of settlements in industrial disputes, even if not confirmed by both parties.
Final Decision: The impugned order was set aside, and the pre-deposit amount was directed to be refunded to the Management. Liberty was granted to the Workman to approach the appellate Court if there is any dispute in respect of the settlement.
JUDGMENT
Prathiba M. Singh, J. - This hearing has been done through video conferencing.
CM aPPL. 6048/2022 (for exemption)
2. allowed, subject to all just exceptions. application is disposed of.
W.P.(C) 2105/2022 & CM aPPL. 6047/2022 (for stay)
3. The present writ petition challenges the impugned order dated 7th august, 2020 in RCa No. 68/2019 titled Wearwell (India) Pvt. Ltd. v. Dharmendra Kumar Tanti passed by the D&SJ, South-East, Saket Courts, New Delhi (hereinafter 'appellate Court'). Vide the impugned order the appeal against the order dated 22nd November, 2018 in PWa No. 53/2018 titled Dharmendra Kumar Taatl v. M/s Wear Well India Pvt. Ltd. passed by addl. D&SJ, POLC-V, Dwarka Courts, Delhi (hereinafter 'authority') under the section 15(2), Payment of Wages act, 1936 (hereinafter 'act') has been partially set aside.
4. The background of this petition is that the Respondent/Workman (hereinafter 'Workman') was employed with the Petitioner/Management (hereinafter 'Management') and the last drawn salary was Rs.11,830/-. The Management claims that it had placed the Workman under suspension on 16th December, 2017 and a charge sheet was issued. However, the claim of the Workman was that he was terminated by the Management on 18th December 2017.
5. The Workman then approached the Conciliation Officer under the Industrial Disputes act, 1947 wherein he along with 21 other workmen, entered into a settlement dated 03rd May 2018 with the Management. Terms of the said settlement read as under:
'1. The management will reinstate all the complainant workmen expect Sh. Kalim, Sh. Hussain and Sh. Firoz, with the continuity of service w.e.f. 04/05/2018.
2. The workmen have agreed that they will work with honesty and will maintain peace in the factory and will help to increase the production.
3. It has also been agreed between both the parties that the interest of peace and harmony of the factory, all the disputes/claims/complaints of bonus and contract Labour raised/filed by them shall be deemed to have been withdrawn after this settlement. The management has also agreed to withdraw all the cases i.e. charge sheet, suspension order/police complaints against the workmen.'
6. However, disputes thereafter arose in respect of the amount payable as per the terms of the said settlement entered into before the Conciliation officer. This led to the Workman approaching the authority under section 15(2) of the act. The said dispute was adjudicated by the authority on 22nd November, 2018 by holding that a sum of Rs.3,01,466/- would be payable to the Workman. The order reads as under:
'30. In view of the outcome of issue No.2, the claimant is held entitled to an amount of Rs.3,01,466/- (27,406 + 2,74,060 amount of wages deducted + 10 times penalty).
31. accordingly, in these circumstances, in terms of provisions of section 15 (5) (b) of Payment of Wages act, 1936, the court hereby issue a direction to the ld. CMM, Dwarka Court to recover the said amount of Rs. 3,01,466/- as if it were a fine imposed by a Magistrate in terms of provisions of Section 421 (1) (a) of the Cr.P.C.
32. Petition accordingly stands allowed.'
7. The said order of the authority was challenged before the ld. Single Judge of this Court in WP(C) 2339/2019 titled Wearwell (India) Pvt. Ltd. v. Dharmendra Kumar Tanti. The said writ petition was disposed of vide order dated 13th March 2019 while granting liberty to the Petitioner to approach the appellate Court under the act after depositing the amount of Rs.27,406/-. The order reads as under:
'2. This Court is satisfied that this case is similar to W.P.(C) 1698/2019 and the petitioner's prayer for similar order is justified. In that view of the matter, the petitioner is granted liberty to approach the appellate authority under the act by depositing only the actual wages found due to the respondent under the impugned order. Upon depositing of the actual wages found due to the respondent, the appellate authority shall consider the petitioner's appe
The main legal point established in the judgment is the validity and binding nature of settlements in industrial disputes, even if not confirmed by both parties, under Section 18(1) of the ID Act.
Settlements in industrial disputes are binding even if not confirmed in court, as long as they are signed and no coercion is evident, supporting the principle of amicable resolution.
The main legal point established in the judgment is that settlements entered into in Industrial Disputes are valid and legal, even though provisions similar to Order XXIII Rule 3 CPC do not exist in ....
Settlements in industrial disputes can be validly recognized if voluntarily accepted by both parties, even if one party does not appear to confirm the terms in court.
Settlements under the Payment of Wages Act and the Industrial Disputes Act are binding, even if not acknowledged by one party, provided they are legally sound and voluntarily entered into.
Settlements of wage disputes outside conciliation are valid and binding; a workman's absence in confirming does not invalidate the agreement.
Settlements outside conciliation proceedings are binding under Section 18(1) of the ID Act, confirming that courts should recognize amicable resolutions to maintain industrial peace.
While the Limitation Act does not strictly apply to industrial disputes, courts discourage over-stale claims that lack satisfactory explanation for prolonged delay, as such claims disrupt industrial ....
Industrial settlements are binding package deals promoting peace; fraud requires specific proof and timely protest; employee status continues post suspension notice assuring protection until valid vo....
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