ANZ GRINDLAYS BANK LTD. (NOW KNOWN AS STANDARD CHARTERED GRINDLAYS BANK LTD.) versus UNLON OF INDIA AND ORS.

Citation: [2005] SUPP. 5 S.C.R. 63 · Decided: 08-11-2005 · Supreme Court of India · Bench: H.K. SEMA · Disposal: Appeal(s) allowed

Judgment (excerpt)

' 
ANZ GRINDLA YS BANK LTD. (NOW KNOWN AS STANDARD 
A 
CHARTERED GRINDLA YS BANK LTD.) 
v. 
UNlON OF INDIA AND ORS. 
NOVEMBER 8, 2005 
B 
[H.K. SEMA AND G.P. MATHUR, JJ.] 
Industrial Disputes Act 1947 
Section 18(1)-Persons bound by the Settlement-Settlement by C 
agreement between the Appellant Bank and its employees association 
representing majority workmen of the Bank-Whether binding on employees 
Federation representing minority workmen which was not a party to the 
agreement-Held, no-Settlement otherwise than in the course of conciliation 
proceeding is binding only upon the parties thereto. 
D 
Sections 2(k), 10(1) and 18(1)-Jndustrial Dispute, Reference to 
Tribunal-Settlement between Appellant Bank and its employees association-
Settlement provide for giving benefits to workmen who are members of 
Association-Other workmen not entitled to benefits until the individual 
gives acceptance of the settlement in the given format-Employees Federation E 
filing application/or reference of industrial dispute to the Tribunal-Central 
Government making reference under section 10(1)-Appellant Bank filing 
writ petition for quashing the reference-High Court dismissing the petition-
Allowing the appeal, held, the Federation not being the party to settlement 
was not affected in anyway and can have no grievance against the said F 
settlement-There being no industrial dispute and the reference being wholly 
futile is uncalled for and therefore quashed 
Section 10(1)-Constitution of India 1950-Article 226-Industrial 
Dispute, Reference-Writ against-Maintainability of writ petition against 
order making reference for acijudication by the Industrial Tribunal-Held, G 
where the futility of the reference is apparent in the terms of reference itself 
writ petition under Article 226 can be entertained 
The appellant Bank and its employees Association, representing 
majority of its Award Staff, arrived at settlement by agreement. Settlement 
provide for giving certain benefits to the employees. It is binding on members H 
63 
64 
SUPREME COURT REPORTS [2005) SUPP. 5 S.C.R. 
A of the Association. Benefit can be extended to other employees who give 
acceptance to the settlement in the given format. Employees Federation, 
representing minority employees, applied for reference of dispute. Central 
Government made a reference under section 10(1) for adjudication by the 
, Industrial Tribunal. Aggrieved thereby Bank filed a writ petition for quashing 
B the reference. The High Court dismissed the petition. Hence this appeal. 
Allowing the Appeal with cost, the Court 
HELD: 1. A plain reading of the provisions of Section 18 of the industrial 
Disputes Act would show that where a settlement is arrived at by agreement 
C between the employer and the workmen otherwise than in the course of 
conciliation proceeding shall be binding on the parties to the agreement in 
view of the clear language used in sub-section (1) thereof. Sub-sections (2) 
and (3) of Section 18 contemplate different situations where an arbitration 
award has been given or a settlement has been arrived at in the course of 
conciliation proceedings. The Federation (second respondent) not being pal'.1Y 
D to the settlement, it is obvious that the same is not binding upon it in view of 
sub-section (1) of Section 18 of the Act Thus the settlement dated 18.8.1996 
did not affect the rights of the Federation in any manner whatsoever and it 
can possibly have no grievanc~ against the said settlement. 
E 
(70-H; 71-A-B; 71-D] 
Mis. Tata Chemicals Ltd. v. The Workmen, AIR (1978) SC 828, relied 
on. 
2. Section 2(k) of the l.D. Act defines "industrial dispute" and it means 
any dispute or difference between employers and employers, or between 
F employers and workmen, between workmen and workmen, which is connected 
with the employment or non-employment or the terms of employment or with 
the conditions oflabour, ofany person. The definition uses the word "dispute". 
The dictionary meaning of the word "dispute" is: to contend any argument; 
argue for or against something asserted or maintained. There is no industrial 
dispute in existence nor there is any apprehended dispute between the 
G appellant-Bank and the Federation and as such there is absolutely no occasion 
for making any reference for adjudication by the Industrial Tribunal. The 
reference being wholly futile, the same deserves t_o be quashed. 
(72-B-C; 74-C) 
Black's Law Dictionary; Advance Law Lexicon by P.Ramanatha Iy

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