JUDGMENT
Ravi S. Dhavan, C.J.
1. A writ petition was filed by an organisation known as All
India Punjab National Bank Officers Association. The aspects which became the
subject matter of the writ petition were relating to fitment of salary of clerks and
special assistants on promotion as Officers as junior management grade scale I. On
this aspect there is no issue between the appellant the Punjab National Bank and
the All INdia PUnjab National Bank Officers Association the respondents in the
appeal. .
2. The Punjab National Bank has challenged the order on the writ petition. The order is dated 27 November, 1996. The Bank is aggrieved by the aspect that the fitment which had been occasioned was the result of a settlement which arose out of a conciliation proceeding under the Industrial Dispute Act, 1947. Thus, fitment of the salary of the workmen concerned did require for adjustment to be made for rationalisation of the salary. Thus, the reduction in salary. The settlement which was entered into under Form ‘H’ of the Industrial Dispute Act, 1947, subsequently, became a bank circular of 1951.
3. It is unfortunate that a writ petition had been filed at the Patna High Court when admittedly the dispute between the petitioners (All India Punjab National Bank Officers Association and another) and the Punjab National Bank was the subject matter of a settlement at New Delhi. The circular which the petitioners-respondents was intended to challenge, and did so, was consequential to the settlement in the writ petition. The cause of action took place in New Delhi.
4. In the pleadings there is not a word that a settlement had been arrived at during the course of conciliation proceeding, that such a settlement was executed on Form ‘H’ read with Rule 58 and it was binding between the parties under Section 18 of the Industrial Dispute Act, 1947. The petitioners-respondents do appended a copy of the settlement. But the pleadings put the case of the petitioners-respondents in an entirely different context. The circular which was issued by the Punjab National Bank was with the consent of its staff. The sanctity of the settlement is consent. A settlement which is the result and arises out of conciliation proceeding or during the course of adjudication binds the parties. It is for the duration of the settlement if indicated. If no date is indicated then the limitation is prescribed under Section 19 of the Act,
5. If this Court were to pass any order so that it nullifies the settlement or belittles any aspect which the parties would have agreed to, then the settlement would stand destroyed. A settlement may be executed if either party resiles from it without cause. The job of a conciliation officer is to see that the disputes are not unnecessarily taken to adjudication. The present settlement between the Punjab National Bank and its staff was arrived at during the course of conciliation proceeding. This settlement binds the Punjab National Bank and its staff nation wide. The cause of action by consent took place in New Delhi. A writ petition at the Patna High Court is in any case without jurisdiction.
6. If indeed the petitioners-respondents had reservation on the settlement then they could always sought clarification by either seeking a fresh conciliation or seeking a reference by adjudication to a Labour Court or an Industrial Tribunal.
7. Knowing fully that the settlement was the result of conciliation proceedings and registered, the petitioners-respondents virtually concealed this fact and file this writ petition to challenge the circular of 1991. The circular was not issued by the Bank on its own. The circular was only consequential to the settlement.
8. In the circumstances nothing should be done which erodes the sanctity of the settlement which was arrived at between the parties within the spirit of the Industrial Dispute Act, 1947.
Thus, the appeal succeeds. The order of the learned Judge dated 27 November 1996 on writ petition bearing CWJC No. 5450 of 1996 is set aside.