The court held that prior settlements are binding on unions, and claims for wage benefits cannot be raised if previously resolved, emphasizing the importance of adherence to agreements.

JUDGMENT :

(A.D. MARIA CLETE, J.)

Heard.

2. The Petitioners, being the management of BHEL, have filed the present writ petition challenging the award passed by the Central Government Industrial Tribunal-cum-Labour Court, Chennai, in I.D. No. 91 of 2015, dated 11.11.2019, whereby the Tribunal has made the following award: –

“In view of the discussions held in preceding paragraphs, the claim of the First Party petitioners, for extension of enhanced consolidated wages and wage arrears, to the TEA, recruited in a common Employment Notice 1/2007, joined before 01.01.2009 has got every merit as established on the evidence on record. The First Party Union accordingly is entitled to the relief sought for in consonance to the reference. Before parting with the order, it is felt to issue direction to the Second Respondent to take necessary steps for identification of the beneficiaries (members of the First Party Union) who by virtue of the common Employment Notice 1/2007 joined Respondent’s establishment before 01.01.2009 for implementation of the enhanced wage revision.

Hence ordered.

The Second Respondent is hereby directed to take necessary steps for rectification of the anomaly crept in the circular 021/IRX/2013 dtd. 04.10.2013 by extending the enhanced consolidated wages of Rs.11,000/- to the identified beneficiaries who were recruited under the common Employment Notice 1/2007 and joined before 01.01.2009. The Respondent Management is further directed to disburse the wage arrears and all consequential allowances / financial benefits applicable to them with effect from their respective date of joining within a period of three months from the date when the Award is executable. The First Respondent is directed to coordinate with the Second Respondent in this regard.

The reference is answered accordingly.”

3. Aggrieved by the aforesaid award, the Petitioners have filed the present writ petition, which was admitted on 05.03.2020, and an interim stay of the operation of the award was also granted on the same day. Pursuant to notice issued by this Court, the contesting respondent union filed a counter affidavit dated 25.02.2025. Both parties have filed their respective written submissions. The original records from the Central Government Industrial Tribunal-cum-Labour Court have also been received by this Court.

4. The facts leading to the filing of the present writ petition are as follows. The respondent union, affiliated to the Bharatiya Mazdoor Sangh (BMS), raised an industrial dispute by their letter dated 26.02.2013 before the Assistant Commissioner of Labour (Central). The dispute pertained to the demand that the consolidated wages paid to temporary employee artisans, recruited against sanctioned vacancies pursuant to Employment Notice No. 1/2007, should be revised and implemented for all such recruits with effect from 01.01.2007. The union further demanded rectification of the anomalies in the payment of Plant Performance Payment (PPP) and Special Incentive Payment (SIP), which had arisen due to the erroneous implementation of the wage revision for temporary employee artisans.

5. Upon notice from the Conciliation Officer, the management submitted a reply dated 29.04.2014, contending that the issue had already been resolved through a Joint Committee Meeting (JCM), in which the respondent union had also participated and signed the minutes. It was therefore asserted that the union was estopped from raising the present dispute. As the Conciliation Officer was unable to effect a settlement, he submitted a failure report dated 31.03.2015 to the Central Government. Thereafter, the Government of India, in exercise of its powers under Section 10(1) of the Industrial Disputes Act, 1947 , referred the following issue for adjudication before the Central Government Industrial Tribunal-cum-Labour Court (CGIT), Chennai: –

“Whether the action of the management of BHEL Ranipet regarding not extending of arrears arising out of the enhanced consolidated wage of