Amendment status not verified — confirm the current text below against the official source.
Persons on whom settlements and awards are binding.— 1 Ins. by Act 46 of 1982, Section 11 (w.e.f. 21.8.1984). The Industrial Disputes Act, 1947 1[(1)A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement. (2) 2[Subject to the provisions of sub-section (3), an arbitration award] which has become enforceable shall be binding on the parties to the agreement who referred the dispute to arbitration.] 3[(3)] A settlement arrived at in the course of conciliation proceedings under this Act 4[or an arbitration award in a case where a notification has been issued under sub-section (3A) of section 10A] or 5[an award 6[of a Labour Court, Tribunal or National Tribunal] which has become enforceable] shall be binding on— (a) all parties to the industrial dispute; (b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, 7[arbitrator] 8[Labour Court, Tribunal or National Tribunal], as the case may be, records the opinion that they were so summoned without proper cause; (c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates; (d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part. Case Law Bound on all parties 1 Ins. by Act 36 of 1956, Section 13 (w.e.f. 7.10.1956). 2 Subs. by Act 36 of 1964, Section 9, for “An arbitration award” (w.e.f. 19.12.1964). 3 Section 18 re-numbered as sub-section (3) (thereof by Act 36 of 1956, Section 13 (w.e.f. 7.10.1956). 4 Ins. by Act 36 of 1964, Section 9 (w.e.f. 19.12.1964). 5 Subs. by Act 48 of 1950, Section 34 and Schedule, for “an award which is declared by the appropriate Government to be binding under sub-section (2) of section 15". 6 Ins. by Act 36 of 1956, Section 13 (w.e.f. 10.3.1957). 7 Ins. by Act 36 of 1964, Section 9 (w.e.f 19.12.1964). 8 Subs. by Act 36 of 1956, Section 13, for “or Tribunal” (w.e.f. 10.3.1957). The Industrial Disputes Act, 1947 A settlement was arrived at by an agreement between the company and its employees/workmen represented by the Mazdoor Union Only; and it was arrived at otherwise than in the course of a conciliation proceeding. Accordingly, such bipartite settlement was binding in terms of section 18(1) of the Industrial Disputes Act, 1947 only on the parties to the said agreement; Mayurakshi Cotton Mills (1990) Ltd, v. Ninth Industrial Tribunal, Durgapur, (2003) 11 LL] 485 (Cal). Settlements are divided into two categories, namely:—(i) those arrived at outside the conciliation proceedings; and (ii) those arrived at in the course of conciliation proceedings. A settlement arrived at in the course of conciliation proceedings with a recognised majority union will be binding on all workmen of the establishment irrespective of any objection; All India Textile janta Union v. Labour Commissioner, 1994 LLR 203 (P&H) (DB).