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K.C.P. LIMITED versus THE PRESIDING OFFICER AND ORS.

Citation: [1996] SUPP. 6 S.C.R. 148 · Decided: 12-09-1996 · Supreme Court of India · Bench: A.M. AHMADI · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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. , K.C.P. LIMITED 
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'. THEJ~,RE§~DiNG OFFI.CER,f;\ND o~s. 
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[AM. AHMAm;·a., S.B. MAJMUDAR AND B.N: KlRPAL, JJ.] 
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Labour Law: 
IndustlialDisputes Act, 1947: Sections 2(k) & (p), 2-A and 18(1). 
Settlement-Otlwwise than in conciliation proceedings-Dispute be-
tween employer compal.ly and workmen-Resulted in dismissal of certain 
workmen-Sole recognised and representative trade u11ion pa,1Jic,ippf~4 ,in 
conciliation proceedings on behalf of ail workmen including the dismissed 
ones who co1ttini1ed to be members of trade union-Conciliation proceediitgs 
ultimately f ailed-Pursua11t to which industlial dispute raised under S. 
2(k)-No industlial dispute raised under S. 2-A by dismissed workmen-
Dwing pe11de11cy of dispute before Labour Cowt, the said trade union and 
employer anived at settlemeni:-.Option either to accept reinstatement with 
co11tinuity in se1vice without back wages or accept a specified lwnpsum 
amount with other mo1ietmy be11efits-Some dismissed workmen did not 
approve settlement-But trade union entered into settlement on behalf of all 
dismissed workmen including the dissenting 011es-Howeve1; Labour Court 
declined to pass award iii tenns of settlement-Held : settlement was not ex 
facie, unjust or un.fai1~77ierefore, it was binding even on such dismissed 
workmen who did not approve the settlement-Hence, Labour Cowt should 
have passed an award in tenns of settlement and should not have continued 
the industdal dispute in relation to dismissed workmen who did not approve 
settlement. 
Settlement-Othe1wise than in conciliation proceedings-Ce1tain dis-
pute between employer company and workmen led to go slow, stdke and lock 
G out-Disciplina1y action against 29 workmen for va1ious acts of misconduct 
resulted i.u-tll.ejr dismissal-Subsequently, settlement anived at between 
employer anti-trade union-Option either to accept reinstatement with con-
tinuity in se1vice without back wages or accept a specified lwnpsum amount 
with other nwnet01y benefits-All stdking workmen other than dismissed ones 
H reinstated without back wages-Held : In the circumstances of the case, the 
148 
KC.P. LID. v. PRESIDING OFFICER 
149 
tenns oj seitlemen't relating to proposed reinstatement of dismissed workmen A 
without. back wages neither unfair nor unjust. 
The appellant-Company had an Engineering Unit where it manufac-
tured inachinery and employed about 500 workmen. Respondent No. 2 was 
the only recognised and a representative trade union of all the workmen 
in the said establishment. Certain disputes between the appellant and the 
workmen led to go slow, strike and lock out declared by the appellant-Com-
pany. Disciplinary action against 29 workmen for various acts of miscon-
du~t l'esulted in "their ·m~missal: The respondent No. 2~trade union 
participated iri the concilation proceedings on behalf of all workmen 
inclu~ng the ·dismissed ones, which ultimately failed. An industrial dis-
pute under SectiOn 2(k) of the Industrial Disputes Act, 1947 was raised by 
the r~sl.iondent No:'. 2~trade union on behalf of the said 29 workmen. 
However, none of the said 29 workmen raised industrial dispute in their 
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individual "capacity under Section 2-A of the Act. 
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· ·During the pendency of the said industrial dispute before the Labour D 
Court the said trade union entered into a settlement with the appellant-
Company under Section 18(1) of the Act otherwise than in the course of 
conciliation proceedings on behalf of all the said 29 dismissed workmen 
giving option to either accept reinstatement with continuity of service 
without back wages or accept a specified lumpsum amount with other E 
monetary benefits. However, 12 workmen out of the said 29 workmen did 
not accept the aforesaid settlement. The Labour Court·declined to pass an 
award in terms -of the settlement on the ground that the 12 workmen had 
not approved the settlement and ·industrial dispute in respect of them 
would continue and proceed furthe1·. However, out of the said 29 workmen, 
17 workmen had agreed to abide by the terms or the settlement and were F 
reinstated in exercise of'their·option. The 12 workmen were members of 
the respandent No. 2-trade union who were acting on their behalf and still 
continued to be members of the union. 
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