The judgment establishes the principle that resignation obtained under coercion or undue influence, especially in the context of financial distress and non-payment of wages, may be deemed invalid.

( 1 ) THESE are the bunch of the petitions filed by the petitioner M/s. Mhow Hosiery Pvt. Ltd. against the common order passed by the industrial Court allowing the appeals of the respondents workers.

( 2 ) THE facts of all the cases are similar and Industrial Court decided the appeals by a common order, hence all the petitions are being decided by this common order, for the purpose of facts of the case, facts of W. P. No. 277/2005 has been considered.

( 3 ) THE respondent was working in the petitioner company, he was employed w. e. f. 1-10-1993 and his services have been discontinued w. e. f. 8-9-2001. On 8-8-2001 the respondent worker submitted an application of resignation mentioning that he was working in dispatch department and due to some personal problem he is, submitting his resignation. His resignation was accepted after a period of one month vide order dated 8-9-2001. On 11 -9-2001, he signed a printed receipt mentioning that he received an amount of Rs. 31,704/- with regard to arrears of salary, leave and there was no balance remained hereinafter. It has further been mentioned that "i am withdrawing the application filed before Labour Court or any other authority and I am waiving my right to file any such proceedings and authorising the petitioner to decide the dispute". On 11-9-2001 he submitted an application to the petitioner mentioning that his Provident Fund be withdrawn. Similarly he filed an application for withdrawal of his provident Fund on the same day. He also received the Provident Fund and gratuity.

( 4 ) THEREAFTER he filed an application before the Labour Court, Indore under Section 31 (3), 61, 62 and 86 of the MPIR Act, 1916 mentioning that he was an employee of the petitioner and was getting monthly salary of Rs. 2,600/ -. His work had been stopped w. e. f. 8-9-2001 and this would amount retrenchment. The provisions of the Chapter V of the Industrial Dispute Act have not been followed, it has further been submitted in the application that the petitioner management had not paid 8 months salary to near about 350 workers, when he alongwith other workers demanded from the management to pay the salary. The manager forced him to submit the resignation letter mentioning that due to family problems I am tendering my resignation and told him that if he wants salary he had to submit the resignation, that is why the resignation was submitted. In such circumstances his termination of service was void.

( 5 ) IN the reply of the application of the workman the petitioner submitted that alongwith the respondent, near about 150 workers submitted their resignations. The respondent himself submitted the resignation and that was accepted by the management. The resignation was voluntary, hence there is no Industrial dispute exists.

( 6 ) IN support of his claim the respondent workman examined himself and deposed that he tendered his resignation that was accepted and thereafter he also received Provident Fund, gratuity, some ex-gratia amount and salary of 8 months by 2 cheques, the cheques were post dated. Before submitting resignation the petitioners had not paid the salary to him for the period of 8 months and because his family was dying due to hunger, he submitted resignation, he received total amount of Rs. 31,704/- on 12-9-2001 through two cheques. On behalf of the petitioner one Mr. A. Sharda deposed that he was working as a manager, the respondent workman submitted his resignation which was accepted, he received Provident Fund, there was no force applied by the company for submitting the resignation. In his cross-examination, he admitted that before submitting resignation the salary of the workers including respondent for a period of 3 to 5 months had not been paid. Because financial condition of the company was bad and it had not received any supply orders, we gave two post dated cheques to the respondent, one was for gratuity and another was ex-gratia payment. After accepting the resignation, s