Case Note & Summary
The petitioner, Jewel Consumer Care Private Limited, challenged an award dated 31.1.2025 passed by the Labour Court, Vadodara in Reference (LCV) No.109 of 2017, which partly allowed the reference and granted reinstatement with continuity of service and 25% backwages to the respondent-workman, Narendrasinh Ramsinh Parmar. The petition was filed under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947. During the pendency of the petition, the parties arrived at an amicable settlement outside court 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 included that the petitioner would pay a lump sum amount of Rs.1,50,000 to the respondent-workman in full and final settlement of all claims, and the respondent would withdraw his claim for reinstatement and backwages. The parties agreed that the petition be disposed of as withdrawn and the impugned award be modified accordingly. The court, after perusing the settlement and verifying the signatures of the parties and their advocates, recorded the settlement and made it part of the order. The court disposed of the petition in terms of the settlement, directing that the award be modified to reflect the settlement terms. The court also directed that the amount be paid within four weeks from the date of the order. The judgment was delivered by Justice Hemant M. Prachchhak on 24.2.2026.
Headnote
A) Industrial Disputes Act, 1947 - Section 2(p) - Settlement - Amicable Settlement - Parties entered into a Memorandum of Settlement under Section 2(p) of the Industrial Disputes Act, 1947, during pendency of writ petition challenging Labour Court award granting reinstatement with 25% backwages - The settlement provided for withdrawal of the petition and modification of the award - Court recorded the settlement and disposed of the petition in terms thereof - Held that settlement is binding and court can modify award accordingly (Paras 3-5).
Issue of Consideration
Whether the impugned award of reinstatement with 25% backwages should be upheld or set aside in light of the settlement agreement between the parties.
Final Decision
The petition is disposed of in terms of the settlement agreement dated 13.2.2026. The impugned award is modified accordingly. The petitioner shall pay the amount as per settlement within four weeks from today.
Law Points
- Settlement under Section 2(p) of Industrial Disputes Act
- 1947
- can be recorded and made part of court order
- Parties can settle industrial disputes amicably even during pendency of writ petition
- Court can modify award based on settlement terms
