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2025 Supreme(Online)(Mad) 11515

IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.D. Maria Clete, J
B.Komarapalayam Primary Agricultural Co-op. Credit Society – Appellant
Versus
V.Muthusamy – Respondent
W.P.No. 2732 of 2021 | W.M.P.No.3065 of 2021



Advocates:
For the Appellants/Petitioners: Ma.Pa.Thangavel, Ma.P.Thangavel, B.Devagi Thangavel, M.Lokesh, D.Rajendran
For the Respondents: S.V.Navin Prabhu, K.V.Shanmuganathan, V.Vaijayanthimala, R.Md.BNasrullah, D.Thangapandy, M.Infant Subash

Successive labor claim petitions for distinct causes of action or time periods are not barred by res judicata or Order II Rule 2 of the Civil Procedure Code. Expired settlements remain binding as contractual obligations until replaced by a fresh agreement.

Headnote:(A) Industrial Disputes Act, 1947 - Section 33C(2) - Claim petition - Computation of back wages - Whether an earlier settlement and award in a different claim petition operates as res judicata or bars subsequent claims under Order II Rule 2 of Code of Civil Procedure - Principles of res judicata require that the matter directly and substantially in issue in the subsequent suit must be the same as the former suit - Order II Rule 2 is to prevent multiplicity of suits for the same cause of action, but does not apply where causes of action are distinct - A settlement in a prior proceeding confined to specific subject matter does not preclude future claims unless a waiver is explicit. (Paras 12, 15, 16, 17, 18)

(B) Industrial Disputes Act, 1947 - Section 12(3) and 18(1) - Binding nature of settlements - Terms of a settlement based on a mutual agreement continue to bind parties as a contractual obligation even if the specific settlement period has technically lapsed or been replaced, until a new binding contract is effectively executed - An employer cannot unilaterally avoid conditions of service established by a binding settlement. (Paras 11, 20, 21)

Facts of the case:
A workman filed a claim petition under Section 33C(2) of the Industrial Disputes Act to recover unpaid back wages for a specific period following his suspension and reinstatement. The employer challenged the claim, contending that a previous settlement reached before a conciliation body in a different claim petition barred the present claim under the principles of res judicata and Order II Rule 2 of the Code of Civil Procedure.

Findings of Court:
The court held that the Labour Court correctly determined that the prior settlement was restricted to the previous claim. The Court found no evidence of a waiver of rights regarding other periods or causes of action. The evidence established that the workman was entitled to dues under a settlement that remained contractually binding.

Issues: Whether a previous resolution of a claim petition bars a subsequent claim for a different period under the principles of res judicata, constructive res judicata, and Order II Rule 2 of the Code of Civil Procedure; and whether a prior settlement remains a binding contractual obligation.

Ratio Decidendi: The court ruled that successive claim petitions for distinct causes of action or different periods are maintainable and not barred by the Code of Civil Procedure, provided the issues were not directly and substantially tried in a previous proceeding. Furthermore, settlements reached under labor laws constitute binding contractual obligations that persist until expressly replaced.

Result: Writ petition dismissed.

Table of Content
1. factual history regarding respondent's employment, suspension, and initiation of labor claim. (Para 2 , 3 , 5 , 6 , 7 , 8)
2. applicability of res judicata and order ii rule 2 cpc regarding successive claims. (Para 4 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. assessment of estoppel and the scope of prior settlements regarding service conditions. (Para 9 , 10 , 11 , 19)
4. contractual obligation of settlements and final order affirming labour court award. (Para 20 , 21)

J U D G M E N T

Heard.

2.The petitioner is a Primary Agricultural Co-operative Society. In the present writ petition, the petitioner challenges the order dated 13.03.2018 passed by the Labour Court, Salem in C.P. No. 4 of 2014, by which a sum of Rs.10,51,740/- was computed as payable to the respondent, along with interest at the rate of 9% per annum until the date of payment, failing which the amount would carry interest at 12% per annum. As per the endorsement on the certified copy, the order was delivered to the petitioner-society on 16.04.2018.

3.The petitioner initially filed the present writ petition on 27.08.2018. However, as the impugned order annexed to the petition was illegible, the Registry returned the papers, granting ten days’ time for compliance. The petitioner, however, re-presented the papers along with a compliance memo only on 08.02.2021, resulting in a delay of 867 days. To regularize the delay, the petitioner filed W.M.P. No. 2769 of 2021 seeking condonation. By order dated 05.02.2021, this Court condoned the delay on the condition that the petitioner deposit a sum of Rs.1,000/- to the Chief Justice’s Relief Fund. Following compliance, the writ petition was numbered and admitted on 08.02.2021. An interim stay was also granted. Upon service of notice, the respondent entered appearance through counsel.

4.Learned counsel for the workman submitted that the management is guilty of delay and laches in approaching this Court, having filed the writ petition nearly three years after the impugned order. It was argued that the writ petition is liable to be dismissed on this ground alone. In support of this contention, reliance was placed on the decision of the Hon’ble Supreme Court in Chennai Metropolitan Water Supply and Sewerage Board v. T.T. Murali Babu , reported in (2014) 4 SCC 108, with particular emphasis on the following passage in paragraph 16:—

“16. Thus, the doctrine of delay and laches should not be lightly brushed aside. A writ court is required to weigh the explanation offered and the acceptability of the same. The court should bear in mind that it is exercising an extraordinary and equitable jurisdiction. As a constitutional court it has a duty to protect the rights of the citizens but simultaneously it is to keep itself alive to the primary principle that when an aggrieved person, without adequate reason, approaches the court at his own leisure or pleasure, the Court would be under legal obligation to scrutinize whether the lis at a belated stage should be entertained or not. Be it noted, delay comes in the way of equity. In certain circumstances delay and laches may not be fatal but in most circumstances inordinate delay would only invite disaster for the litigant who knocks at the doors of the Court. Delay reflects inactivity and inaction on the part of a litigant – a litigant who has forgotten the basic norms, namely, “procrastination is the greatest thief of time” and second, law does not permit one to sleep and rise like a phoenix. Delay does bring in hazard and causes injury to the lis.”

Although the above passage aptly supports the rejection of the petitioner’s case on the ground of delay, the issue cannot be revisited, as this Court has already condoned the delay upon imposing a cost of Rs.1,000/-.

5.When the matter was taken up on 23.04.2024, this Court directed that it be placed before the National Lok Adalat scheduled for 08.06.2024. However, as no settlement was reached, the matter was returned for regular adjudication.

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