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.

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through video conferencing.

CM APPL.6263/2022 (for exemption)

2. Allowed, subject to all just exceptions. Application is disposed of.

WP(C) 2184/2022 & CM APPL.6262/2022 (for stay)

3. The present writ petition challenges the impugned order dated 7th August, 2020 in RCA No. 63/2019 titled M/s. Wearwell (India) Pvt. Ltd. v. Sh. Raju passed by the District & Sessions Judge, South-East, Saket Courts, New Delhi (hereinafter "Appellate Court"). Vide the impugned order, the appeal against the order dated 30th November, 2018 in PWA No. 74/2018 titled Sh. Raju v. M/s Wear Well India Pvt. Ltd. passed by Addl. District & Sessions Judge, POLC-V, Dwarka Courts, Delhi (hereinafter "Authority") under the Section 15 (2) of the PAYMENT OF WAGES ACT , 1936 (hereinafter the "Act") has been partially set aside.

4. The background of this petition is that the Respondent/Workman (hereinafter "Workman") 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all the disputes/claims/complaints of bonus and contract Labour raised/filed by them shall be deemed to have been withdrawn after this settlement.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 30th 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) 2357/2019 titled M/s. Wearwell (India) Pvt. Ltd. v. Raju. 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.