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M/S. SWADESHI COTTON MILLS CO., LTD., KANPUR versus RAJESHWAR PRASHAD AND ORS.

Citation: [1961] 2 S.C.R. 359 · Decided: 14-11-1960 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Directions issued

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Judgment (excerpt)

2 S.C.R. SUPREME COURT REPORTS 
359 
M/S. SWADESHI COTTON MILLS CO., 
LTD., KANPUR 
v. 
RA.JESHW AR PRASHAD AND ORS. 
I 
(P. B. GAJENDRAGADKAR, A. K~ SARKAR 
and K. N. WANCHOO, JJ.) 
Ind11strial Disp11te-Compromise during pendency of appeal-
Validity-Procedure--The U. P. Ind1tstl'ial Disputes Act, I947 
(U. P. XXV II I of Ig47), ss. 6-c, z(t)-U. P. Industrial Disputes 
Rides, Ig57, r. 5(I)-Payment of Wages Act, Ig36 (Act 4 of I93fi), 
s. 23. 
While this appeal by special leave, relating to an industrial 
rlispute was pending in this Court a Director of the appellant 
employer and a representative of the respondents' employees 
made an application to the Court praying that an order might be 
passed in terms of a compromise since an agreement was alleged 
to have been entered into by the appellants and the respondents. 
Some of the respondents contested this compromise and the court 
sent issues to the Tribunal for finding whether the alleged com-
promise actually took place between the parties, and if so, was 
it valid. The Tribunal returned findings to the effect that the 
compromise did actually take place and was valid. 
Those 
findings were contested in the appeal. 
Held, that a compromise agreement seeking to settle an 
industrial dispute which was still pending decision in this Court 
would not contravene the provisions of s. 23 of the Payment of 
Wages Act which contemplated rights not likely to be modified 
or reversed in any judicial proceedings. 
The procedure prescribed by s. 6-C of the U. P. Industrial 
Disputes Act and the provisions thereof did not affect the powers 
of this Court, or the competence of the parties, to amicably 
settle a dispute pending before it. 
The procedure for obtaining an order in terms of the com-
promise entered into between the parties pending the appeal in 
this Court is prescribed by its own rules and the provisions of 
s. 2(t) of the U. P. Industrial Disputes Act and rule 5(1) of the 
Rules made thereunder have no application to such case. 
CIVIL 
APPELLATE 
JURISDICTION: Civil Appeal 
No. 53 of 1958. 
Appeal by special leave from the Decision dated 
February 28, 1957, of the Labour Appellate Tribunal, 
Bombay, in. Appeal No. III-160 of 1956. 
S. P. Varma, for the appellants. 
Nove,.,ber r4. 
M fs. Swadeshi 
360 
SUPREME COURT R.EPORTS 
[1961] 
L. K. Jha, Janardan Sharma, R. 0. Prasad and 
Maqbool Ahmad Khan, for the respondents. 
Cotton Mills Co., 
1960. November 14. The Judgment of the Court 
Ltd., Kanpur 
was delivered by 
v. 
Rajeshwa• 
GAJENDBAGADKAR, J.-This appeal by special 
P1ashad &- Othm leave arises from an industrial dispute between the 
G . d-dk 1 appellant Messrs. Swa.deshi Cotton Mills and the res-
•J•n raga a• . 
d 
. 
l 
d 
h 
h 
l' . 
pon ents, its emp oyees, an 
t e s ort pre 1mma.ry 
question which is raised for our decision is whether 
an order should not be passed in this appeal in terms 
of the compromise agreement alleged to have been 
reached between the appellant and the respondents. 
It appears that on December 28, 1955, an industrial 
dispute between the parties was referred by the 
Government of Uttar Pradesh to the Industrial Tribu-
nal, U. P., Allahabad, for adjudication under ss. 3, 4 
and 8 of the U. P. Industrial Disputes Act, 1947 (U.P. 
Act XXVIII of 1947) and in pursuance of the provi-
• 
sions of cl. 11 of G. 0. No. U-464(LL)/XXXVl-B-257 
(LL)/1954 issued on July 14, 1954. The dispute thus re-
ferred was whether the existing rates of wages of job-
bers mentioned in the annexure employed in the weav-
ing department of the appellant need any revision; if 
so, with what details and from what date ? The Tribu-
nal tried this issue and came to the conclusion that no 
case for revision had been made out by the respon-
dents. Against this decision of the Tribunal the res-
pondents preferred an appeal before the Labour 
Appellate Tribunal. Their appeal succeeded and the 
Appellate Tribunal directed that the award of the 
original Tribunal should be set a.side, and that the 
appellant " shall introduce from the date of reference 
a uniform rate of two annas in both the old and new 
sheds irrespective of the number of looms assigned to 
the line jobbers". It would be noticed that as a result 
of this decision the existing rates have been revised 
and the revision has been ordered to take effect 
retrospectively from the date of reference. It is 
against this decision of the Labour Appellate Tribunal 
that the appellant has preferred the present ap

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