{"id":223621,"date":"2006-10-19T00:00:00","date_gmt":"2006-10-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-d-ms-hindustan-fasteners-vs-nashik-workers-union-on-19-october-2006"},"modified":"2018-04-16T13:41:30","modified_gmt":"2018-04-16T08:11:30","slug":"m-d-ms-hindustan-fasteners-vs-nashik-workers-union-on-19-october-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-d-ms-hindustan-fasteners-vs-nashik-workers-union-on-19-october-2006","title":{"rendered":"M.D., M\/S. Hindustan Fasteners &#8230; vs Nashik Workers Union on 19 October, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">M.D., M\/S. Hindustan Fasteners &#8230; vs Nashik Workers Union on 19 October, 2006<\/div>\n<div class=\"doc_author\">Author: S.B. Sinha<\/div>\n<div class=\"doc_bench\">Bench: S.B. Sinha, Dalveer Bhandari<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  4553 of 2006\n\nPETITIONER:\nM.D., M\/s. Hindustan Fasteners Pvt. Ltd\n\nRESPONDENT:\nNashik Workers Union\n\nDATE OF JUDGMENT: 19\/10\/2006\n\nBENCH:\nS.B. Sinha &amp; Dalveer Bhandari\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\n[Arising out of S.L.P. (C) No. 24626 of 2004]<\/p>\n<p>S.B. SINHA, J :\n<\/p>\n<p> \tLeave granted.\n<\/p>\n<p> \tInterpretation of a settlement arrived at by and between the parties<br \/>\nhereto falls for consideration in this appeal which arises out of a judgment<br \/>\nand order dated 8.12.2000 passed by the High Court of Judicature at<br \/>\nBombay in First Appeal No. 521 of 1992.\n<\/p>\n<p> \tAppellant herein is engaged in engineering activities.  Respondent No.<br \/>\n1 is a trade union registered under the Trade Unions Act.  Appellant was a<br \/>\nsick unit as envisaged under the Sick Industrial Company (Special<br \/>\nProvision) Act, 1985.  A settlement was arrived at on 11.5.1990 by and<br \/>\nbetween the parties hereto in regard to the demands raised on behalf of the<br \/>\nworkmen.  The period covered by the settlement was 1.01.1989 to<br \/>\n30.12.1992.  The workmen thereafter went on strike.  Several demands were<br \/>\nalso raised.  A second settlement was arrived on 24.5.1993.  In the preamble<br \/>\nof the said settlement, it was stated:\n<\/p>\n<p>&#8220;The company has enforced lockout of its<br \/>\nemployees on and from 14.1.93 for the reasons<br \/>\nmentioned in the company&#8217;s lock out notice dated<br \/>\n28.12.90 and the said lockout is still continuing.  In<br \/>\nview of the long duration of the lockout and<br \/>\nprotracted court proceedings in the Industrial<br \/>\nCourt, Nashik and elsewhere the parties to the<br \/>\nsettlement felt a need to find out long term solution<br \/>\nto the problems faced by them.  The parties also<br \/>\nsought the assistance of the Deputy Commissioner<br \/>\nof Labour, Nashik and in view of the discussions<br \/>\nbetween the parties the acceptable solution have<br \/>\nbeen found by them and they have settled the<br \/>\nentire disputes between them over the clauses of<br \/>\nthe lock-out i.e. still continuing and the Charter of<br \/>\nDemands of the Union served on behalf of the<br \/>\nworkmen&#8221;\n<\/p>\n<p> \tClause 20 of the said settlement reads as under:\n<\/p>\n<p>&#8220;That this settlement is in package deal viz-a-viz<br \/>\nfull demands raised by the Union under its charter<br \/>\nof demands dated 1st January, 1993 and as well as<br \/>\nelsewhere.  It is expressly understood that this<br \/>\nsettlement is in full and final settlement of all the<br \/>\nsaid demands and settles all demands of the Union\/<br \/>\nWorkmen made till date of whatsoever nature.<br \/>\nSuch as of the demands as set out in the charter of<br \/>\ndemands and elsewhere, referred to hereinabove<br \/>\nbut not specifically dealt within this settlement are<br \/>\nhereby treated as having been withdrawn and\/ or<br \/>\nnot pressed by the Union and the workmen and<br \/>\nsettled the same accordingly.  It is further agreed<br \/>\nthat during the currency of this settlement, the<br \/>\nUnion and the workmen shall not raise any fresh<br \/>\ndemand whatsoever, whether covered by this<br \/>\nsettlement or otherwise and whether involving<br \/>\nfinancial burden or not.  No other demands of<br \/>\nwhatsoever nature shall be made by the Union or<br \/>\nthe workmen either directly or indirectly.  Any<br \/>\ndemand made shall have the effect of nullifying<br \/>\nthis settlement.&#8221;\n<\/p>\n<p> \tParagraphs 11, 12 and 13 of Clause 23 and Clauses 27 and 28 of the<br \/>\nsaid settlement read as under:\n<\/p>\n<p>&#8220;11.\tThe settlement shall encompass this<br \/>\nsettlement as well previous settlement dated<br \/>\n11.5.90 and shall constitute a whole contract<br \/>\nbetween the parties.  These settlements have<br \/>\nrendered substantial benefits on the workmen and<br \/>\nin view of the same, it is agreed between the<br \/>\npartiers that there will be no work stoppage\/ go<br \/>\nslow during the pendency of this settlement.  Any<br \/>\nbreach of this settlement shall render the above<br \/>\nmentioned settlements as null and void.\n<\/p>\n<p>12.\tThe parties expressly agree that the<br \/>\ndefinition of &#8220;wages&#8221; in various statutes in the<br \/>\nindustrial field will be followed by them for the<br \/>\npurpose of their application, enforcement and<br \/>\nimplementation in any event.  Payments under the<br \/>\nterms of their settlement agreed to be made and<br \/>\naccepted by the parties will not be affected and no<br \/>\nfurther and additional claims will be made or<br \/>\ncanvassed by the workmen under these laws for<br \/>\nincrease in benefits and if made shall deem as<br \/>\ncovered and adjusted by this settlement or under<br \/>\nthe terms of this settlement.\n<\/p>\n<p>13.\tExcept to the extent expressly modified in<br \/>\nthis settlement, all other existing rights, and<br \/>\nobligations and conditions of previous settlements<br \/>\nshall continue with full force and effect during the<br \/>\noperation of this settlement.\n<\/p>\n<p>Clause No. 27: Bonus<\/p>\n<p> \tBonus for the year 1990-91, 1991-92 will be<br \/>\n8.33%.  No bonus is due and payable for the year<br \/>\n1992-93 and as the workmen did not work during<br \/>\nthis period.  Bonus for the year 1993-94 will be<br \/>\n9%.  Bonus for the years 1994-95 and 1995-96 will<br \/>\nbe 10% and for the year 1997-98 will be 12%.\n<\/p>\n<p>Further, it is provided that the management on its<br \/>\nown shall review the balance sheet and decide<br \/>\nabout the quantum of bonus payable to the<br \/>\nworkmen and in the event of any upward revision<br \/>\nis necessitated under the provisions of Payment of<br \/>\nBonus Act, 1965 excess amount minus agreed<br \/>\nbonus shall be paid to the employee.  In any<br \/>\ncircumstances the workmen will not raise any<br \/>\ndispute about the quantum of bonus.  The<br \/>\nmanagement decision shall be final.  In case the<br \/>\ncompany balance sheet shows accumulated losses<br \/>\nin the above years, the amount paid in excess of<br \/>\nstatutory min. will be by the way of ex-gratia for<br \/>\nthe purpose of industrial peace, productivity and<br \/>\nshop floor discipline.  Bonus for the year 1990-91<br \/>\nwill be paid in August and for the year 1991-92<br \/>\nwill be paid in October, 1993.\n<\/p>\n<p><span class=\"hidden_text\">Clause No. 28<\/span><\/p>\n<p> \tThat the various clauses of the agreement\/<br \/>\nsettlement form one package agreement\/<br \/>\nsettlement and none of the clauses in this<br \/>\nagreement\/ settlement in separable from the<br \/>\nremaining clauses of the agreement\/ settlement.&#8221;\n<\/p>\n<p> \tHowever, an industrial dispute was raised in the following terms:\n<\/p>\n<p>&#8220;Whether the lock out effected by the management<br \/>\nw.e.f. 14.1.1992 is justified?  If not, what relief the<br \/>\nworkers are entitled for?\n<\/p>\n<p> \tThe said industrial dispute was referred to for adjudication by the<br \/>\nappropriate government before the Industrial Court, Nashik.  Appellant<br \/>\nherein in its written statement inter alia raised the question as regards<br \/>\nmaintainability of the said reference relying on or on the basis of the said<br \/>\nsettlement dated 24.5.1993 stating:\n<\/p>\n<p>&#8220;2.\tThe reference is not tenable and<br \/>\nmaintainable as there was no dispute in existence<br \/>\nafter the settlement dated 24.5.1993 arrived<br \/>\nbetween Nashik Workers Union and the Company,<br \/>\nHindustan Fasteners Pvt. Ltd., hence the reference<br \/>\nis immature in the eyes of law\n<\/p>\n<p>4.\tThe reference is also not maintainable in<br \/>\nview of the settlement dated 24.5.1993 as per the<br \/>\nClause No. 20 of the said settlement.  It was full<br \/>\nand final settlement and all the demands were<br \/>\nsettled.  It was also made clear that all other<br \/>\ndemands and claims were relinquished by the<br \/>\nworkmen and the Union and as such the reference<br \/>\nis to be rejected&#8221;\n<\/p>\n<p>It was further stated:\n<\/p>\n<p>&#8220;39.  The Employer Company welcome any<br \/>\ninvestigation that the Hon&#8217;ble Tribunal may<br \/>\nundertake, since it would definitely conclude that<br \/>\nthe lockout was justified and its prolongation was<br \/>\ndue to the illegal tactics of the Nashik Workers<br \/>\nUnion.&#8221;\n<\/p>\n<p>\tA dispute, thus, existed between the parties as regards applicability of<br \/>\nthe said settlement to the reference..\n<\/p>\n<p> \tThe Tribunal made an award in the said reference on 19.1.2001<br \/>\nstating:\n<\/p>\n<p>&#8220;19. I have gone through the said settlement but<br \/>\nthe said settlement nowhere makes any reference<br \/>\nregarding the wages to be paid to the workers for<br \/>\nlock out period.  But the said settlement is<br \/>\nregarding other demands.  If the issue regarding<br \/>\nthe payment of lock out period would have been<br \/>\ndiscussed between the parties then, certainly the<br \/>\nsaid issue could have been mentioned in the<br \/>\nsettlement.  It is further the contention of the<br \/>\ncompany that in view of the Clause 20 of the<br \/>\nsettlement all the demands between the parties<br \/>\nwere settled&#8221;\n<\/p>\n<p> \tThe Tribunal in its award further stated:\n<\/p>\n<p>&#8220;20. After perusal of the Clause 20 referred above<br \/>\nit makes clear the demand should be raised which<br \/>\nwill directly involve financial burden on the<br \/>\ncompany, but it is permanent to note here that no<br \/>\nsuch demand is raised by the Union, on the<br \/>\ncontrary, the present reference is referred by the<br \/>\nGovernment in view of P.A.M.S. proceeding<br \/>\npending before the Dy. Commissioner of Labour<br \/>\nprior to signing the said settlement.  The company<br \/>\nas well as the Second Party workers both were<br \/>\naware about P.A.M.S. proceedings pending before<br \/>\nthe Dy. Commissioner of Labour regarding the<br \/>\nlock out.  Therefore, they ought to have been<br \/>\nmentioned the same in the present settlement so as<br \/>\nto resolve the dispute.  But, as the said issue is not<br \/>\ntaken into the present settlement referred above by<br \/>\nstretch of imagination could not be said that the<br \/>\nsaid issue was settled finally in view of settlement<br \/>\ndated 24.5.1993 signed between the parties.<br \/>\nTherefore, the contention of First Party Company<br \/>\nthat present reference is not maintainable could not<br \/>\nbe accepted.  Hence, I answer the issue in the<br \/>\nnegative.&#8221;\n<\/p>\n<p> \tIt was further found that although Appellant sought to justify the lock-<br \/>\nout declared by it but in support of the said plea, no witness was examined<br \/>\non its behalf.  In the aforementioned premise, by reason of the said award,<br \/>\nthe Industrial Tribunal directed:\n<\/p>\n<p>&#8220;2.\tThe lock out declared by the Company<br \/>\nw.e.f. 14.1.1992 is unjustified.\n<\/p>\n<p>3.\tThe workers are entitled for the wages for<br \/>\nlock out for period from 14.1.1992 to 2.6.1993.\n<\/p>\n<p>4.\tThe First Party Company is directed to pay<br \/>\nthe wages to the concerned workers in the period<br \/>\nof 14.1.1992 to 2.6.1993 within two months from<br \/>\nthe date of the publication of the Award.&#8221;\n<\/p>\n<p> \tA writ petition was filed thereagainst.  A learned Single Judge of the<br \/>\nHigh Court in its judgment dated 23.04.2002 noticed the contentions of<br \/>\nAppellant herein that when the settlement was arrived at, reference had<br \/>\nalready been made by the appropriate authority.  However, it was opined<br \/>\nthat the said settlement did not contain any provision as to whether the<br \/>\nworkmen had given up their rights of wages during the period the factory<br \/>\nwas under lock-out.  The writ petition was dismissed.  An intra-court appeal<br \/>\nfiled thereagainst by Appellant was also dismissed by reason of the<br \/>\nimpugned judgment stating that under the aforementioned settlement the<br \/>\nworkmen had not given up their rights of wages.\n<\/p>\n<p> \tMr. Shekhar Naphade, learned senior counsel appearing on behalf of<br \/>\nAppellant, raised a short contention in support of this appeal.  It was urged<br \/>\nthat the settlement was to be read in its entirety.  So read, the learned counsel<br \/>\nwould contend, it would be apparent that all disputes and differences<br \/>\nbetween the parties and all demands raised by reason of the Charter of<br \/>\nDemands dated 1.01.1993 and all other demands having been resolved, the<br \/>\nquestion of directing payment of any wages during the period for which the<br \/>\nfactory was under lock-out did not and could not arise.\n<\/p>\n<p> \tMr. Colin Gonsalves, learned senior counsel appearing on behalf of<br \/>\nRespondent, on the other hand, would submit that the Charter of Demands<br \/>\nwas in relation to the specific issues as, for example, bonus, festival<br \/>\nallowance, pay scale, etc.<\/p>\n<p> \tThe purport and object of a settlement arrived at by and between the<br \/>\nmanagement and the workmen is undisputedly required to be construed<br \/>\nkeeping in view its salutary effect.  It is aimed at maintenance of industrial<br \/>\npeace and harmony.  A settlement, therefore, although is required to be read<br \/>\nfor upholding the validity thereof like any other agreement, it should be read<br \/>\nin its entirety so as to ascertain the intention of the parties behind the same.<br \/>\nIt is true that in the said settlement, not only the Charter of Demands served<br \/>\non the management on or about 1.01.1993 was referred to, but the exchange<br \/>\nof letters between the parties had also been referred to, but the intention of<br \/>\nthe parties is to be gathered having regard to the circumstances attending<br \/>\nthereto.\n<\/p>\n<p> \tThere had been a lock-out and a protracted court proceeding.  A long<br \/>\nterm solution was to be found out.  The settlement was in relation to the<br \/>\npurported causes of the lock-out.  It was still continuing.  A Charter of<br \/>\nDemands of the Union was served on behalf of the workmen.  It did not<br \/>\nrelate to wages of the workmen during the period of lock-out.  Clause 20 of<br \/>\nthe said settlement must, therefore, be read keeping in view the<br \/>\naforementioned backdrop of events.  But, before we embark upon the said<br \/>\nquestion, we may notice the Charter of Demands dated 1.01.1993.  The<br \/>\ndemands of workmen referred to pay scale, classification, dearness<br \/>\nallowance, leave, various allowances including travelling allowance,<br \/>\nwashing allowance and various other allowances as specified therein e.g.,<br \/>\nuniform, festival advance, etc.<\/p>\n<p> \tCorrespondences entered into by and between the parties were in<br \/>\nrelation to the aforementioned demands.  It did not speak of the claim of<br \/>\nwages, although when the settlement was arrived at, the industrial dispute<br \/>\nwas pending.\n<\/p>\n<p> \tHad, thus, the intention of the parties been to settle their disputes also<br \/>\nin relation to legality or otherwise of the lock-out declared by the<br \/>\nmanagement, it was expected to have been stated so explicitly therein.  It<br \/>\nwas also expected that the parties would file the said settlement before the<br \/>\nIndustrial Tribunal so that an award could be passed in terms thereof.<br \/>\nClause 20 of the said settlement provides for a package deal vis-a-vis all the<br \/>\ndemands raised by the Union.  The package deal was in relation to the<br \/>\nCharter of Demands dated 1.01.1993 and any other document including the<br \/>\nletters exchanged between the parties pursuant thereto or in furtherance<br \/>\nthereof.  The subject matter of settlement was &#8216;all demands of whatever<br \/>\nnature&#8217; in terms whereof the workmen might not have been able to make any<br \/>\nother demand, but, on a bare perusal of the said settlement, it is apparent that<br \/>\nthe expression which has repeatedly been used was the &#8216;Charter of<br \/>\nDemands&#8217;.\n<\/p>\n<p> \tWhile keeping the industrial dispute pending, Respondents had not<br \/>\nraised any fresh demand.\n<\/p>\n<p> \tClause 21 refers to the previous settlement also.  The rights of the<br \/>\nworkmen under the existing settlement were not adversely affected.  If they<br \/>\nhave worked, they would be entitled to wages.  If they have reported for<br \/>\nduties during the period of lock-out which was illegal, they were entitled to<br \/>\nthe wages for the said period.\n<\/p>\n<p>\tIn furtherance of the said Charter of Demands, the parties entered into<br \/>\nseveral other correspondences.  In terms of the settlement, the parties settled<br \/>\ntheir disputes in relation to the demands raised.  The wages to be paid to the<br \/>\nworkmen which they had claimed as of right was not and could not have<br \/>\nbeen the subject matter of any payment or settlement.  Whereas the concept<br \/>\nof a demand must be held to be relating to a right higher than the existing<br \/>\nright, the workmen were entitled to raise a claim in relation to their existing<br \/>\nright and in that view of the matter financial implication therefor cannot be a<br \/>\nground for refusal thereof.  If a claim is to be withdrawn by reason of a<br \/>\nsettlement, the same must find a specific mention therein.\n<\/p>\n<p> \tSubject, of course, to the parties acting on the settlement, the<br \/>\nworkmen had promised that they would not go for &#8216;work stoppage&#8217; or &#8216;go<br \/>\nslow&#8217; but then in terms of Paragraph 12 of Clause 23 of the said settlement,<br \/>\nit had categorically been reiterated that the expression &#8220;wages&#8221; shall be<br \/>\ngiven the same meaning as obtaining in the statute.  The right to enforce the<br \/>\nclaim for wages both in the first settlement as also the second settlement<br \/>\nwas, therefore, not given up.  It was further stated that no additional claims<br \/>\nwould be made for increase of benefits.  Paragraph 13 of Clause 23 of the<br \/>\nsaid settlement also refers to existing rights and obligations subject, of<br \/>\ncourse, to the modification made therein.  By reason of the said settlement,<br \/>\nthe workmen surrendered their rights of bonus.  We have noticed<br \/>\nhereinbefore that the management, although questioned the legality and\/ or<br \/>\nvalidity of the reference, but at the same time also welcomed the same<br \/>\nstating that thereby they had got an opportunity to establish that the lock-out<br \/>\ndeclared by them was not illegal.  But, then no witness was examined to<br \/>\nprove the said fact.\n<\/p>\n<p> \tThe parties, therefore, made it clear that the claim of wages raised on<br \/>\nbehalf of the workmen on the premise that the lock-out was illegal was not<br \/>\nthe subject matter of the settlement.  The Tribunal, in our opinion, is right in<br \/>\narriving at the finding that the intention of the parties must be gathered from<br \/>\nthe attending circumstances; one of them being that although the parties<br \/>\nwere aware that the industrial dispute was pending but no reference thereto<br \/>\nwas made in the settlement.\n<\/p>\n<p> \tIt is difficult to accept the contention of Mr. Naphade that in the facts<br \/>\nand circumstances of this case, provisions of Section 92 of the Evidence Act<br \/>\nwould have any role to play.  It is not the contention of Respondents that the<br \/>\nsettlement was not to be read as a full or final settlement between the parties<br \/>\nbut the same must be read as meaning that the settlement was only in respect<br \/>\nof the Charter of Demands and other demands made by the Union from time<br \/>\nto time in its various letters.\n<\/p>\n<p> \tConstruction of a document so as to ascertain the intention of the<br \/>\nparties is in no way controlled by the provisions of Sections 91 or 92 of the<br \/>\nEvidence Act.  The document has to be interpreted applying the known<br \/>\nprinciples of construction and\/ or canons.\n<\/p>\n<p> \tIn fact, in the special leave petition, Appellant itself has contended:\n<\/p>\n<p>&#8220;(VI)\tThat because the Hon&#8217;ble High Court should<br \/>\nhave appreciated the fact that at the time of<br \/>\nreference the contesting parties were negotiating<br \/>\nthe Settlement.  So in view thereof it was the duty<br \/>\nof the Conciliation Officer under Section 12(2) and<br \/>\n12(3) of the Industrial Disputes Act for bringing<br \/>\nabout a settlement of the dispute without delay and<br \/>\ninvestigate the dispute and all such matters<br \/>\naffecting the merits and the settlement thereof.<br \/>\nFurther, it is pertinent to state that the Conciliation<br \/>\nOfficer has enough powers to investigate the cause<br \/>\nof dispute and enforce a settlement.&#8221;\n<\/p>\n<p> \tIf that was the stand of Appellant before the Conciliation Officer, they<br \/>\ncould have asked him to close the conciliation proceedings.  They did not do<br \/>\nso.\n<\/p>\n<p> \tApplying the principles of interpretation of a document and having<br \/>\nregard to the circumstances attending thereto, we are of the opinion that the<br \/>\nfindings of the tribunal and the High Court cannot be faulted with.\n<\/p>\n<p> \tFor the reasons aforementioned, we do not find any merit in this<br \/>\nappeal which is dismissed accordingly with costs.   Counsel&#8217;s fees assessed<br \/>\nat Rs.10,000\/-.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India M.D., M\/S. Hindustan Fasteners &#8230; vs Nashik Workers Union on 19 October, 2006 Author: S.B. Sinha Bench: S.B. Sinha, Dalveer Bhandari CASE NO.: Appeal (civil) 4553 of 2006 PETITIONER: M.D., M\/s. Hindustan Fasteners Pvt. Ltd RESPONDENT: Nashik Workers Union DATE OF JUDGMENT: 19\/10\/2006 BENCH: S.B. Sinha &amp; Dalveer Bhandari JUDGMENT: J [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-223621","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M.D., M\/S. 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