Case Note & Summary
The case involves two civil applications filed by individual employees of M/s Jaysynth Anthraquinone Ltd. and M/s Jaysynth Dyechem Ltd. seeking leave to file Letters Patent Appeals against a common order passed by a learned Single Judge (Dr. D.Y. Chandrachud, J.) on 30th June 2004. The employees were not parties to the original writ petitions (Writ Petition No.3641 of 2003 and Writ Petition No.3462 of 2003) filed by the companies against a trade union, the Association of Chemical Workers, which represented about 538 workmen. The Single Judge had earlier passed an order on 3rd October 2003 recording a settlement between the companies and the union. The union later filed civil applications seeking recall of that order, which were rejected by the impugned order dated 30th June 2004. The employees, claiming to be aggrieved by the settlement, sought to challenge the rejection order. The court considered whether the employees had locus standi to file the appeals. The court noted that the union, which was a respondent in the writ petitions, had filed the recall applications and the employees were not parties. The court held that the settlement was binding on all workmen and the employees had no independent right to challenge the order. The applications were dismissed as the employees lacked locus standi.
Headnote
A) Civil Procedure - Locus Standi - Non-Party Appeal - Employees not parties to writ petition sought leave to file Letters Patent Appeal against order rejecting recall of consent order - Held that employees have no locus standi as they were not parties and the union represented them adequately (Paras 1-3).
B) Industrial Disputes Act, 1947 - Settlement - Binding Nature - Settlement between company and union recorded in court order - Held that settlement is binding on all workmen including those who were not signatories (Para 2).
C) Civil Procedure - Recall of Order - Fraud - Allegation of fraud in obtaining consent order - Held that recall application was rightly rejected as no fraud was established (Para 2).
Issue of Consideration
Whether employees who were not parties to the writ petition have locus standi to file Letters Patent Appeal against an order rejecting recall of a consent order based on a settlement between the company and the union.
Final Decision
The court dismissed the civil applications, holding that the applicants had no locus standi to file the appeals as they were not parties to the writ petitions and the union adequately represented them.
Law Points
- Locus standi of non-party to challenge consent order
- Binding nature of settlement under Industrial Disputes Act
- 1947
- Recall of order on ground of fraud
Case Details
2005 LawText (BOM) (07) 34
Civil Application No.133 of 2005 in Letters Patent Appeal No.463 of 2004 in Civil Application No.541 of 2004 in Writ Petition No.3641 of 2003 and Civil Application No.132 of 2005 in Letters Patent Appeal No.464 of 2004 in Civil Application No.542 of 2004 in Writ Petition No.3462 of 2003
H.L. Gokhale, Smt. R.S. Dalvi
Mr. E.P. Bharucha with Mr. P.M. Patel for Applicants, Mr. K.K. Singhavi with Mr. A.K. Jalsatgi for res.No.1, Ms. N.D. Buch with Ms. Bina Dholakia for res.No.2
Mr. P.M. Ghare & ors. and Mr. Arjun D. Chikhale & ors.
M/s Jaysynth Anthraquinone Ltd. & anr. and M/s Jaysynth Dyechem Ltd. & anr.
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Nature of Litigation
Civil applications seeking leave to file Letters Patent Appeals against a common order rejecting recall of a consent order recording a settlement.
Remedy Sought
Leave to file and prosecute Letters Patent Appeals challenging the order dated 30th June 2004.
Filing Reason
The applicants, employees of the respondent companies, were not parties to the writ petitions and sought to challenge the order rejecting recall of the consent order recording a settlement between the companies and the union.
Previous Decisions
The learned Single Judge passed an order on 3rd October 2003 recording a settlement between the companies and the union. The union filed Civil Applications Nos.541 and 542 of 2004 seeking recall of that order, which were rejected on 30th June 2004.
Issues
Whether the applicants, who were not parties to the writ petitions, have locus standi to file Letters Patent Appeals against the order rejecting recall of the consent order.
Submissions/Arguments
The applicants argued that they were employees and were not parties to the settlement, and sought to challenge the order.
Ratio Decidendi
A person who is not a party to the proceedings has no locus standi to file an appeal against an order passed in those proceedings, especially when the order is based on a settlement that is binding on all workmen represented by the union.
Judgment Excerpts
These two Civil Applications in the two Appeals are filed by individuals who are employees of the 1st respondent-Company.
The learned Single Judge passed a common order dated 30th June 2004 on Civil Applications Nos.541 and 542 of 2004 taken out in both these Writ Petitions by the said Union which sought to recall the order that he had passed earlier on 3rd October 2003.
He held that the settlement which was arrived at and mentioned in his order dated 3rd October 2003 was binding and executable.
Procedural History
The writ petitions were filed by the companies against the union. The Single Judge passed an order on 3rd October 2003 recording a settlement. The union filed applications to recall that order, which were rejected on 30th June 2004. The employees then filed these civil applications seeking leave to appeal against the rejection order.
Acts & Sections
- Industrial Disputes Act, 1947:
