Case Note & Summary
The petitioner, Jewel Consumer Care Pvt. Ltd., challenged the award dated 31.1.2025 passed by the Labour Court, Vadodara in Reference (LCV) No.106 of 2017, which partly allowed the reference and granted reinstatement with continuity of service and 25% backwages to the respondent-workman, Ramsinh Raisinh Chauhan. During the pendency of the petition before the High Court, the parties amicably settled the dispute and executed a Memorandum of Settlement under Section 2(p) of the Industrial Disputes Act, 1947. The settlement agreement, dated 13.2.2026, was tendered by the petitioner's advocate and taken on record. The terms of the settlement provided that the workman would receive a lump sum amount of Rs.1,50,000 in full and final settlement of all claims, including backwages and compensation, and would withdraw the reference. The workman also agreed not to claim reinstatement. The Court, after perusing the settlement and verifying the signatures of the parties, recorded the settlement and disposed of the petition in terms thereof. The impugned award was modified to the extent that the workman would be entitled to the settlement amount instead of reinstatement and backwages. The Court directed the petitioner to pay the amount within four weeks and ordered that the reference stands disposed of accordingly.
Headnote
A) Industrial Disputes - Settlement - Section 2(p) of Industrial Disputes Act, 1947 - Parties entered into a Memorandum of Settlement during pendency of petition challenging Labour Court award - Court recorded the settlement and disposed of the petition in terms thereof - Held that the settlement is binding and the award stands modified accordingly (Paras 3-5).
Issue of Consideration
Whether the impugned award of the Labour Court granting reinstatement with 25% backwages should be upheld or set aside in light of the settlement 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 stands modified accordingly. The petitioner shall pay the settlement amount of Rs.1,50,000 to the respondent-workman within four weeks from the date of the order. The reference stands disposed of in terms of the settlement.
Law Points
- Settlement under Section 2(p) of Industrial Disputes Act
- 1947
- can be recorded and made part of court order
- High Court can modify Labour Court award based on settlement
- Parties can settle industrial disputes amicably during pendency of proceedings
