ANZ GRINDLAYS BANK LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal, by special leave, has been preferred against the judgment and order dated 19-6-2000 of the Bombay High Court by which the Letters Patent Appeal filed by ANZ Grindlays Bank Limited (hereinafter referred to as the Bank) was dismissed and the order dated 29-2-2000, passed by the learned single Judge dismissing the writ petition filed by the Bank, was affirmed. The present appeal has been filed by ANZ Grindlays Bank Limited and the respondents arrayed in the appeal are (1) Union of India, (2) All India Grindlays Bank Employees Federation, and (3) All India Grindlays Bank Employees Association. During the pendency of the appeal in this Court the entire share capital of ANZ Grindlays Bank Limited has been acquired by Standard Chartered Bank Limited and consequently an application (I.A. No. 3 of 2000) has been moved to change the name of the appellant from ANZ Grindlays Bank Limited to Standard Chartered Grindlays Bank Limited, which has been allowed.

(2.) The Bank has branches all over the country and employs approximately 1666 personnel commonly known as Award Staff in its branches/offices in India. The All India Grindlays Bank Employees Association (third respondent) is recognized by the Bank and it represents majority workmen of the Bank all over the country. The All India Grindlays Bank Employees Federation (second respondent) represents the minority workmen of the Bank. The terms and conditions of the employment of the workmen of the appellant Bank, popularly known as Award Staff, are governed by Shastri Award as modified by Desai Award and the bipartite settlements entered into between the Indian Banks Association and the Unions and Federations representing the workmen in the banking industry. Apart from these industry wise bipartite settlements, the appellant-Bank also entered into in-house bilateral settlement with second and third respondents and these settlements are usually signed after every three years in respect of certain allowances and benefits and other terms and conditions of employment. The third respondent the All India Grindlays Bank Employees Association (for short the Association) represents over 66% of the workmen of the appellant-Bank. The Grindlays Bank Employees Union, Calcutta, an affiliate of the second respondent All India Grindlays Bank Employees Federation (for short the Federation) represents nearly 13% of the workmen of the Bank and the balance, who are not members of either of these unions are represented by the second respondent the All India Grindlays Bank Employees Federation.

(3.) The case of the appellant is that the Federation (second respondent) is in the habit of backing out from signing the settlement at the last minute after having agreed to the terms thereof. Since 1993 several settlements were entered into between the Bank, the Association (third respondent) and also Grindlays Bank Employees Union, Calcutta. However, on account of the recalcitrant attitude of the Federation (second respondent), in the settlement entered into under Section 18(1) of the Industrial Disputes Act, 1947 (for short the Act) a clause had to be incorporated for voluntary acceptance of the terms and conditions of such settlements by non-members of the Association (third respondent) with a view to extend the benefit of such settlements to such of the non-members of the Association, who are willing to accept the settlement.