BROOKE BOND INDIA LIMITED Vs. WORKMEN

JUDGEMENT

(1.) During the pendency of a reference before the Industrial Tribunal at Nagpur, a written agreement in settlement of the disputes covered by the reference as also certain other disputes between the management and the workmen was signed; on behalf of the trade unions representing the workmen the agreement was signed by their office bearers. A few days later the executive committee of one of the Unions rejected the agreement on the ground that the agreement had given rise to discontent among a section of the workers whose problems had not been satisfactorily solved. A question then arose, whether the agreement was a settlement within the meaning of S. 2 (p) of the Industrial Disputes Act. 1947 from which the Union could not resile. The Tribunal by its award held that the agreement was not a settlement binding on the union; the validity of this award is challenged in this appeal by special leave preferred by the management.

(2.) The relevant facts are these. The appellant, Brooke Bond India Limited, a company incorporated and registered under the Indian Companies Act, hereinafter referred to as the company, have a factory at Kanhan, District Nagpur, in Maharashtra. Two trade unions of workmen employed by the company function in the Kanhan factory; one is known as Bharatiya Swatantra Brooke Bond Chaha Karamchari Sangh (Bharatiya Union for short) and the other is called M. P. Rashtriya Brooke Bond Chaha Karamchari Sangh (Rashtriya Union for brevity's sake). In this case we are concerned with the Rashtriya Union. On Sept. 27, 1975 Government of Maharashtra made a reference under S. 10 (1) (d) of the I. D. Act, 1947 for the adjudication, of an industrial dispute between the company and the workmen in respect of 4 demands set out in the schedule to the order of reference. Subsequently on June 11, 1977 a joint charter of demands was submitted by the workmen through the aforesaid two unions; this charter included 26 demands. At a meeting of the executive committee of the Rashtriya Union held on August 19, 1977 several resolutions were passed of which two only appear to be relevant for the present purpose. By one of the resolutions a negotiation committee composed of six members including some of office-bearers of the union was formed "for a discussion to be held with the management". The other resolution related to the 26 demands mentioned above and it said that "a proper decision" regarding these demands would be taken after "due consideration of the proposals given by the members and after placing the same before the negotiation committee of both the unions". Thereafter two more charters of demands one by each union, were submitted. At a meeting of the executive committee of the Rashtriya Union held on Jan. 8, 1978 the office-bearers of the union put it on record that in respect of the 4 demands pending before the Tribunal the union would accept a satisfactory settlement and that the executive committee had granted permission to the negotiation committee for carrying on discussion with the company and the Bharatiya Union as regards the pending demands. Subsequently the resignation of some of the office-bearers of the union led to the reconstitution of the negotiation committee at a meeting of the executive committee of the union held on February 18, 1978. On the subject of the proposed settlement it was disclosed at this meeting that the company had agreed to obtain clarification from the head office on several points including the absorption in company's employment of workers employed in loading and unloading job and confirmation of casual workers. The general secretary of the Rashtriya Union by a letter dated March 9, 1978 informed the factory manager that the members of the reconstituted negotiation committee "will participate in the negotiations to be commenced from 13th March, 1978 for arriving at an agreement". On March 16, 1978 a memorandum of settlement was signed. The following office-bearers of the Rashtriya Union signed the memorandum, the working president, two vice-presidents, general secretary, joint secretary and the organizing secretary. They were also members of the negotiation committee along with others. On the next day, March 17, a joint petition was filed before the Industrial Tribunal signed by the factory manager of the company, the General Secretary of the Bharatiya Union and the General Secretary of the Rashtriya Union praying that an award in terms of the settlement be passed.

(3.) About a week later, on March 24, 1978 a meeting of the executive committee of the Rashtriya Union was held in which "it was unanimously resolved to withdraw from the agreement dated March 16, 1978" in view of the "discontent amongst the workers about the agreement". On April 1, 1978 at an emergent meeting of the executive committee of the Rashtriya Union, after an elaborate discussion on the agreement it was "resolved to reject the agreement as the problems of the workers were not satisfactorily solved". On April 7, 1978 an application was made to the Tribunal on behalf of the Rashtriya Union praying that the agreement be rejected.