{"id":242991,"date":"2010-03-16T00:00:00","date_gmt":"2010-03-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-vaigai-thread-processors-ltd-vs-j-t-m-labour-union-on-16-march-2010"},"modified":"2018-05-16T21:00:02","modified_gmt":"2018-05-16T15:30:02","slug":"ms-vaigai-thread-processors-ltd-vs-j-t-m-labour-union-on-16-march-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-vaigai-thread-processors-ltd-vs-j-t-m-labour-union-on-16-march-2010","title":{"rendered":"M\/S. Vaigai Thread Processors Ltd vs J.T.M. Labour Union on 16 March, 2010"},"content":{"rendered":"
Kerala High Court<\/div>\n
M\/S. Vaigai Thread Processors Ltd vs J.T.M. Labour Union on 16 March, 2010<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWA.No. 963 of 2004()\n\n\n1. M\/S. VAIGAI THREAD PROCESSORS LTD.,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. J.T.M. LABOUR UNION, REPRESENTED BY ITS\n                       ...       Respondent\n\n2. LABOUR COMMISSIONER, GOVERNMENT OF\n\n3. ADDITIONAL LABOUR COMMISSIONER,\n\n4. MADURA COATS WORKERS UNION,\n\n5. MADURA COATS EMPLOYEES UNION,\n\n6. J & P COATS STAFF ASSOCIATION,\n\n7. STATE OF KERALA, REPRESENTED BY ITS\n\n8. MINISTER FOR LABOUR, GOVERNMENT OF\n\n                For Petitioner  :SRI.ANIL.D.NAIR\n\n                For Respondent  :SRI.G.JANARDHANA KURUP (SR.)\n\nThe Hon'ble MR. Justice K.BALAKRISHNAN NAIR\nThe Hon'ble MR. Justice P.N.RAVINDRAN\n\n Dated :16\/03\/2010\n\n O R D E R\n          K.BALAKRISHNAN NAIR & P.N.RAVINDRAN, JJ.\n                ----------------------------------------\n                         W.A.No.963 of 2004\n                ----------------------------------------\n                       Dated 16th March, 2010\n\n                              JUDGMENT\n<\/pre>\n
Balakrishnan Nair, J.\n<\/p>\n
            The first respondent in the Writ Petition is the appellant.<\/p>\n
The first respondent herein was the writ petitioner. The brief facts of<\/p>\n
the case are the following.    The first respondent is one of the trade<\/p>\n
unions of the workmen working under the factory of the appellant at<\/p>\n
Koratty. Respondents 4 to 6 are also registered trade unions of the<\/p>\n
workmen of the industrial establishment. The terms of employment of<\/p>\n
the workmen are governed by settlements signed between the<\/p>\n
management and the workmen from time to time. Ext.P1 was the<\/p>\n
settlement concluded on 15.2.1996. The next settlement was Ext.P4<\/p>\n
dated 6.4.2002. It was a conciliation settlement. In the conciliation<\/p>\n
proceedings, the management and all the trade unions participated.<\/p>\n
But, at the time of concluding the settlement, the first respondent<\/p>\n
herein declined to sign it on the ground that its representatives do not<\/p>\n
have the mandate of       its general body.   Other unions signed the<\/p>\n
settlement. The Conciliation Officer also signed the settlement, taking<\/p>\n
the view that its terms are just and fair and the unions who were<\/p>\n
parties to the settlement represent the majority of the workers in the<\/p>\n
establishment.\n<\/p>\n
W.A.No.963\/2004                    2<\/span><\/p>\n
            2. Challenging Ext.P4, the first respondent herein filed the<\/p>\n
Writ Petition.     Various contentions were raised to attack the<\/p>\n
settlement. The appellant and some of the trade unions filed separate<\/p>\n
counter affidavits supporting the settlement. The learned Single Judge<\/p>\n
after hearing both sides declared that Clauses 2 and 9 of Ext.P4<\/p>\n
settlement have no existence, as according to the learned Judge, those<\/p>\n
clauses were unconscionable and shocking to judicial conscience.<\/p>\n
Feeling aggrieved by the said judgment, the management preferred<\/p>\n
this Writ Appeal. According to them, a conciliation settlement cannot<\/p>\n
be challenged under Article 226 of the Constitution of India. The only<\/p>\n
remedy is to raise another dispute concerning its validity.       Other<\/p>\n
contentions are also raised.\n<\/p>\n
            3. We heard the learned counsel on both sides.          The<\/p>\n
learned counsel for the appellant relied on the decision of the Apex<\/p>\n
Court in National Engineering Industries Ltd. v. State of<\/p>\n
Rajasthan<\/a> (2000 (1) LLJ 247) in support of his submission.          The<\/p>\n
learned counsel for the respondents on the other hand submitted that<\/p>\n
the agreement was not in fact signed by the unions. According to him,<\/p>\n
no discussion was held regarding the work norms mentioned in Clause<\/p>\n
2. Further, there was no annexure to Ext.P4. If Clause 9 is allowed to<\/p>\n
stand, an agreement cannot be given retrospective effect and it will<\/p>\n
W.A.No.963\/2004                     3<\/span><\/p>\n
operate only prospectively. In view of the above position, the learned<\/p>\n
Single Judge rightly interfered with those clauses, it is submitted.<\/p>\n
             4. We considered the submissions made at the Bar and<\/p>\n
also perused the materials on records. An agreement between two<\/p>\n
parties may be nullified by a Civil Court if its terms are unconscionable<\/p>\n
or against public policy in the light of Section 23 of the Contract Act.<\/p>\n
But, under writ jurisdiction, the High Court cannot set aside an<\/p>\n
agreement or terms thereof on the ground that its terms are<\/p>\n
unconscionable or against public policy.        Normally, an agreement<\/p>\n
between parties binds only them.         But, a conciliation settlement<\/p>\n
concluded under section 12(3) of the Industrial Disputes Act will have<\/p>\n
extended binding effect in view of the provisions of section 18 of the<\/p>\n
said Act. Such a provision is enacted to ensure industrial peace and<\/p>\n
obedience to a settlement, which is signed in the presence of a<\/p>\n
Conciliation Officer with his involvement, on the presumption that its<\/p>\n
terms will be just and fair and therefore, it can be made applicable to<\/p>\n
all workers in the establishment whether their unions have signed the<\/p>\n
settlement or not.    So, if a Conciliation Officer signs a settlement<\/p>\n
arbitrarily, even though the terms of the settlement concerned are<\/p>\n
highly arbitrary or illegal, then his action in this regard may be<\/p>\n
challenged before this Court and a declaration can be obtained that the<\/p>\n
W.A.No.963\/2004                     4<\/span><\/p>\n
action of the said officer is ultra vires. The consequence will be that<\/p>\n
the terms of such a settlement will only have the effect of a bipartite<\/p>\n
settlement and not of a conciliation settlement and therefore, it only<\/p>\n
binds the parties thereof who have actually signed it.           So, the<\/p>\n
contention of the management that a conciliation settlement cannot be<\/p>\n
challenged may be broadly correct. But, that principle does not stand<\/p>\n
in the way of the affected person attacking the endorsement made in<\/p>\n
that settlement by a Conciliation Officer, who is a statutory authority.<\/p>\n
            5. In view of the above legal position, the validity of<\/p>\n
quashing of two clauses of the settlement have to be examined. The<\/p>\n
clauses quashed by the learned Single Judge read as follows:<\/p>\n
          “2. All individual worker will give production norms
\n              in annexure.\n<\/p><\/blockquote>\n
           9. When a long term settlement is made it will be
\n              for a period of prospective 3 years.”<\/p>\n<\/blockquote>\n
The parties are free to arrive at any settlement. Sitting under Article<\/p>\n
226 of the Constitution of India, the learned Single Judge could not<\/p>\n
have interfered with them and declared that they are unconscionable.<\/p>\n
Clause 2 provides that the worker will have to conform to the<\/p>\n
production norms in the annexure. According to the learned counsel<\/p>\n
for the appellant, there was no annexure to the settlement. But, we<\/p>\n
notice that the learned Single Judge did not interfere with the said<\/p>\n
W.A.No.963\/2004                    5<\/span><\/p>\n
clause for the reason that there was no annexure to the settlement.<\/p>\n
But, the learned Judge noticed that there was an annexure and it<\/p>\n
provides for wage cut whenever the worker concerned did not attain<\/p>\n
the production target. When production norms are agreed to by the<\/p>\n
majority of the workmen, the same cannot be described as unjust or<\/p>\n
unfair. Therefore, interference of the learned Single Judge with the<\/p>\n
said condition is unsupportable. We, in this context, notice the<\/p>\n
submission of the learned counsel for the first respondent that all the<\/p>\n
unions did not sign the settlement.     But, we find that in the Writ<\/p>\n
Petition, other unions do not have such a case.       They support the<\/p>\n
management and oppose the challenge against Ext.P4 made by the<\/p>\n
first respondent.     Therefore, that contention also could not be<\/p>\n
accepted.\n<\/p>\n
            6. Clause 9 of Ext.P4 deals with the period of the<\/p>\n
settlement. Now, it is a practice in the industrial area to give effect to<\/p>\n
a settlement for three years or five years prospectively. But, at the<\/p>\n
same time, the settlement will take effect notionally, from the date of<\/p>\n
expiry of the last settlement. Clause 9 only states about prospectivity<\/p>\n
of a   settlement.   The same does not stand in the way of giving<\/p>\n
retrospectivity to the settlement. On that point, Clause 9 is silent.<\/p>\n
Therefore, we find that there is no arbitrariness or irrationality in that<\/p>\n
W.A.No.963\/2004                     6<\/span><\/p>\n
clause. Further, it being a clause of the present settlement, it can be<\/p>\n
modified in the next settlement. Therefore, approval of the Conciliation<\/p>\n
Officer for that clause also cannot be contended as ultra vires.<\/p>\n
             In the result, the judgment under appeal is reversed. The<\/p>\n
Writ Petition is dismissed. The Writ Appeal is allowed as above.<\/p>\n
                                         K.BALAKRISHNAN NAIR
\n                                                  Judge<\/p>\n
                                            P.N.RAVINDRAN
\n                                                  Judge<\/p>\n
TKS<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court M\/S. Vaigai Thread Processors Ltd vs J.T.M. Labour Union on 16 March, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM WA.No. 963 of 2004() 1. M\/S. VAIGAI THREAD PROCESSORS LTD., … Petitioner Vs 1. J.T.M. LABOUR UNION, REPRESENTED BY ITS … Respondent 2. LABOUR COMMISSIONER, GOVERNMENT OF 3. ADDITIONAL LABOUR COMMISSIONER, […]<\/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":[8,21],"tags":[],"class_list":["post-242991","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nM\/S. Vaigai Thread Processors Ltd vs J.T.M. 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