BROOKE BOND INDIA LTD. versus THE WORKMEN

BROOKE BOND INDIA LTD. versus THE WORKMEN

The agreement is not binding as a settlement under Section 18(1) of the Industrial Disputes Act, 1947, as the office bearers who signed the agreement were not authorised by the executive committee of the union to enter into a settlement. Thus, no valid settlement existed between employer and workmen as defined by Section 2(p).

Parties
Appellant: Brooke Bond India Ltd.; Respondent 1: The Workmen (Rashtriya Brooke Bond Chaha Karamchari Sangh); Respondent 2: The Workmen (Bharatiya Swatantra Brooke Bond Chaha Karamchari Sangh)
Jurisdiction
India
Judgment Date
22 July 1981
Procedural Posture
Civil Appeal / Appeal by Special Leave From Industrial Tribunal Award
Outcome
Appeal dismissed
Legal Topics
Trade Union Representation, Settlement Under Industrial Disputes Act, Binding Nature of Settlements
Labour Law Industrial Law Trade Union Representation Settlement Under Industrial Disputes Act Binding Nature of Settlements

Case Brief

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Parties

Brooke Bond India Ltd.

Appellant

The Workmen (Rashtriya Brooke Bond Chaha Karamchari Sangh)

Respondent 1

The Workmen (Bharatiya Swatantra Brooke Bond Chaha Karamchari Sangh)

Respondent 2

Procedural Posture

Civil Appeal / Appeal by Special Leave From Industrial Tribunal Award

Legal Issues

  1. 1 Whether a memorandum of settlement signed by office bearers of a trade union without executive committee ratification is binding on the union under Section 2(p) and 18(1) of the Industrial Disputes Act, 1947.
  2. 2 Interpretation of Rule 62(2)(b) of the Industrial Disputes (Bombay) Rules, 1957 regarding signing of settlement.

Ratio Decidendi

The agreement is not binding as a settlement under Section 18(1) of the Industrial Disputes Act, 1947, as the office bearers who signed the agreement were not authorised by the executive committee of the union to enter into a settlement. Thus, no valid settlement existed between employer and workmen as defined by Section 2(p).

Court Disposition

Appeal dismissed

Orders

  • Parties to bear their own costs