Bombay High Court Sets Aside Industrial Court Order Passed Despite Settlement Purshis — Parties Bound by Compromise. Industrial Court erred in passing order on merits after settlement was filed under Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Vitthal s/o Nagorao Chapote, filed two writ petitions challenging an order dated 2/11/2009 passed by the Industrial Court, Jalna, in proceedings arising out of an industrial dispute with the Divisional Controller, M.S.R.T.C., Nanded. The background is that the parties had arrived at a settlement, evidenced by a purshis (settlement document) dated 14/10/2009, which was placed on record before the Industrial Court. Despite this settlement being on record, the Industrial Court proceeded to pass an order on merits on 2/11/2009. The petitioner approached the High Court contending that the Industrial Court ought not to have passed the order on merits in light of the settlement. The respondent's counsel conceded that the settlement purshis was indeed signed and filed, but objected to any relief being granted. The High Court found it surprising that the Industrial Court passed the impugned order on merits despite the settlement. The court held that the impugned order deserves to be set aside and accordingly set it aside. The petitions were disposed of in terms of the settlement, with rule made absolute accordingly.

Headnote

A) Industrial Law - Settlement - Binding Effect - Industrial Disputes Act, 1947 - Settlement purshis dated 14/10/2009 was on record before the Industrial Court, Jalna, yet the Court passed an order on merits on 2/11/2009 - Held that the impugned order deserves to be set aside as the parties had already settled the matter (Paras 3-4).

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Issue of Consideration

Whether the Industrial Court could pass an order on merits when a settlement purshis was already on record.

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Final Decision

The impugned order dated 2/11/2009 passed by the Industrial Court, Jalna is set aside. The petitions are disposed of in terms of the settlement. Rule made absolute.

Law Points

  • Settlement purshis
  • compromise
  • binding nature of settlement
  • Industrial Court
  • setting aside order on merits
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Case Details

2010 LawText (BOM) (11) 16

Writ Petition No.3961/2010 and Writ Petition No.3962/2010

2010-11-29

A.A. Sayed

Shri R.P. Deshpande for petitioners, Shri B.S. Deshmukh for respondent

Vitthal s/o Nagorao Chapote

Divisional Controller, M.S.R.T.C. Divisional Office, Nanded

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Nature of Litigation

Writ petition challenging order of Industrial Court passed on merits despite settlement purshis being on record.

Remedy Sought

Setting aside of the Industrial Court order dated 2/11/2009 and disposal in terms of settlement.

Filing Reason

Industrial Court passed order on merits despite settlement purshis dated 14/10/2009 being on record.

Previous Decisions

Industrial Court, Jalna passed order on merits on 2/11/2009.

Issues

Whether the Industrial Court could pass an order on merits when a settlement purshis was already on record.

Submissions/Arguments

Petitioner argued that settlement purshis was on record, so order on merits should be set aside. Respondent conceded settlement was filed but objected to relief.

Ratio Decidendi

When a settlement purshis is on record, the Industrial Court cannot pass an order on merits; the matter must be disposed of in terms of the settlement.

Judgment Excerpts

It is surprising to note that inspite of the settlement purshis dated 14/10/09 being on record, the Industrial Court, Jalna, has passed the impugned order on 2/11/2009 on merits. The impugned order therefore, deserves to be set aside and is accordingly set aside.

Procedural History

The petitioner filed writ petitions challenging the Industrial Court order dated 2/11/2009. On 17/8/2010, two weeks time was granted to file terms/minutes of the order. On 29/11/2010, the High Court heard the matter and set aside the impugned order.

Acts & Sections

  • Industrial Disputes Act, 1947:
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High Court Bombay High Court Sets Aside Industrial Court Order Passed Despite Settlement Purshis — Parties Bound by Compromise. Industrial Court erred in passing order on merits after settlement was filed under Industrial Disputes Act, 1947.
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