The Hindu Business Line : HC ruling on settlement under Industrial Dispute Act

Chennai, Aug. 4 A settlement under Section 12(3) of Industrial Disputes Act is binding even on a worker who is not a party to it under Section 18(3)(d), the Madurai Bench of Madras High Court ruled.

Hearing a writ petition from V. Sundararajan, an employee of Sri Nachiammal Cotton Mills Ltd, Chettinad, for quashing settlement under 12(3), Mr. Justice K. Chandru held that the plea cannot be taken by the court , as a settlement was only an extended contract. At the maximum, petitioner could seek a writ of declaration, stating that said settlement was not binding on him.

According to the petitioner, he was working as a blow room attender and a member of a union affiliated to the CITU. He was receiving salary of sketcher attender. However, another employee and 3rd respondent (A. Muthu) was given promotion as a sketcher attender and Mr Sundararajan decided to move the court.

The CITU supported the move and contested the decision of the company. Mr Muthu was given promotion after ATP union brought the matter before the Labour officer and resulted in a 12(3) settlement between the union and the company management . The management said whenever Mr Muthu was on leave or absent, Mr Sundararajan would be posted in his place. The judge dismissed the plea, saying the petitioner would benefit from the extended operation of 12(3) settlement under Section 18(3) (d ) of the act.

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