Case Note & Summary
The petitioner, Jewel Consumer Pvt Ltd, filed a Special Civil Application under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947, challenging an award dated 31.1.2025 passed by the Labour Court, Vadodara in Reference (LCV) No.110 of 2017. The Labour Court had partly allowed the reference and granted reinstatement with continuity of service and 25% backwages to the respondent workman, Firozbhai Akbarbhai Parmar. During the pendency of the petition, the parties entered into an amicable settlement and executed a Memorandum of Settlement under Section 2(p) of the Industrial Disputes Act, 1947 on 13.2.2026. The settlement agreement was tendered by the petitioner's advocate and taken on record. The court noted that the parties had settled the dispute outside court and affixed their signatures to the agreement in the vernacular language. The terms and conditions of the settlement were reproduced in the judgment. The court disposed of the petition in terms of the settlement, setting aside the impugned award and directing the parties to comply with the terms of the settlement. The court also directed that the amount deposited by the petitioner before the Labour Court be disbursed to the respondent in accordance with the settlement terms. The petition was disposed of accordingly.
Headnote
A) Industrial Disputes Act, 1947 - Section 2(p) - Settlement - Disposal of Petition - Parties arrived at an amicable settlement during pendency of petition challenging Labour Court award - Court disposed of petition in terms of settlement, setting aside the impugned award and directing compliance with settlement terms - Held that settlement under Section 2(p) is binding and petition can be disposed of accordingly (Paras 1-5).
Issue of Consideration
Whether the petition challenging the Labour Court award should be disposed of in terms of the settlement agreement arrived at between the parties.
Final Decision
The petition is disposed of in terms of the settlement agreement dated 13.2.2026. The impugned award dated 31.1.2025 passed by Labour Court, Vadodara in Reference (LCV) No.110 of 2017 is set aside. The parties shall comply with the terms and conditions of the settlement agreement. The amount deposited by the petitioner before the Labour Court shall be disbursed to the respondent in accordance with the settlement terms.
Law Points
- Settlement under Section 2(p) of Industrial Disputes Act
- 1947
- Disposal of petition in terms of settlement
- Labour Court award modified by consent
Case Details
2026 LawText (GUJ) (02) 1062
R/SPECIAL CIVIL APPLICATION NO. 15135 of 2025
Varun K. Patel for Petitioner, Darshit D. Thakkar for Respondent
Firozbhai Akbarbhai Parmar
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Nature of Litigation
Petition under Articles 226 and 227 of Constitution of India challenging Labour Court award in an industrial dispute.
Remedy Sought
Petitioner sought to quash and set aside the Labour Court award dated 31.1.2025 granting reinstatement with continuity of service and 25% backwages.
Filing Reason
Petitioner was aggrieved by the Labour Court award partly allowing the reference and granting reinstatement with backwages.
Previous Decisions
Labour Court, Vadodara passed award dated 31.1.2025 in Reference (LCV) No.110 of 2017 partly allowing the reference and granting reinstatement with continuity of service and 25% backwages.
Issues
Whether the petition should be disposed of in terms of the settlement agreement arrived at between the parties.
Submissions/Arguments
Petitioner's advocate tendered copy of settlement agreement dated 13.2.2026. Parties agreed to settle the dispute outside court.
Ratio Decidendi
When parties to an industrial dispute arrive at a settlement under Section 2(p) of the Industrial Disputes Act, 1947 during the pendency of a petition challenging a Labour Court award, the court may dispose of the petition in terms of the settlement, setting aside the award and directing compliance with the settlement terms.
Judgment Excerpts
Today, Mr. Patel, learned advocate for the petitioner tenders a copy of the settlement agreement dated_ 13.2.2026 arrived at between the parties, which is taken on record.
It appears that during the pendency of the petition, an amicable settlement has been arrived at between the parties.
The terms and conditions stipulated in the said settlement agreement shall form part and parcel of this order and are hereby reproduced as under:-
Procedural History
The Labour Court, Vadodara passed an award dated 31.1.2025 in Reference (LCV) No.110 of 2017 partly allowing the reference and granting reinstatement with continuity of service and 25% backwages. The petitioner challenged this award by filing Special Civil Application No.15135 of 2025 before the High Court of Gujarat. During the pendency of the petition, the parties entered into a settlement agreement dated 13.2.2026. The High Court disposed of the petition in terms of the settlement on 24.2.2026.
Acts & Sections
- Industrial Disputes Act, 1947: Section 2(p)
- Constitution of India: Articles 226, 227
