(1.) The Petitioner No. 1 is a private limited company registered under the Companies Act and the factory is situated at L. B. Shastri Marg, Bhandup, Bombay 400 078. The Petitioner No. 2, is a shareholder and Managing Director of the petitioner No. 1 Company. The Company had employed about 215 workmen including supervisory staff in the said factory. The petitioners manufacture cutting tools and supply to the ordnance factories and other private industries, but the supply is mainly to the defence establishments. The petitioner Company was doing fairly well at all the material time. Accuracy is of prime essence in manufacturing of tools and that demands total concentration and discipline in the process of manufacturing of tools. Prior to 5th August, 1977, the petitioners were engaged in the manufacture of chains only, and on that day another company known as M/s. Repetition Parts Pvt. Ltd., engaged in the manufacture of special cutting tools was amalgamated with the petitioner company. The said M/s. Repetition Parts P. Ltd., had entered into agreement with their workmen concerning their service conditions and the said agreement was valid till March 30th, 1978. After the amalgamation the petitioner company continued to carry on the manufacturing activities in the two divisions namely Chain Division and Tools Division. The workmen in the Tools Division were governed by the terms of settlement signed by them with M/s. Repetition Part Pvt. Ltd. The petitioners claim that on August 5, 1978, the workmen of the petitioner No. 1 Company gheraoed eight of their officers for a period of 5 1/2 hours. The workmen were demanding that their wages which were due on 7th of the month should be paid forthwith. The petitioners further claim that after the gherao was lifted the workers with the instigation of their Union, which is a registered trade union Engineering Workers Union respondent No. 6, in this petition started giving threats to the officers and supervisory staff of the petitioner Company. It is the claim of the petitioners that the workers were earlier represented by Bharatiya Kamgar Sena Workers Union and on July 18, 1978, the Union had submitted a ehartsr of demands in regard to their salaries and other benefits. It appears that the demands made by the workmen could not be decided due to financial difficulties and go slow tactics adopted by the workers and that has given rise to the gherao of the officers on August 5, 1978. The petitioners claim that on September 17, 1978, the Company wrote a letter to the Commissioner of Police pointing out that the workers instigated by the union leaders are threatening the officers and the staff of the Company and protection of the police is required to avoid the dis turbance in the factory premises and outside the gate. The petitioner company offered to bear the charges for the additional Police Bandobust sought for protection of the property and persons of the office-bearers of the Company. It is the grievance of the petitioners that in spite of this letter the officers of the Bhandup Police Station declined to give any assistance. The petitioners claim that on September 22, 1978, the Officer of the Company was assaulted and thereafter again the Company requested the Police Officers of Bhandup Police Station to give protection but that request was also turned down. Thereafter on October 29, 1978, the workers again gheraoed the officers of the company and gherao was lifted only after the company sought intervention of the police authorities.
(2.) On October 30, 1978 an agreement was arrived at between the employer and the workers represented by the Union before the Conciliation Officer. This conciliation proceedings had commenced in view of the strike notice served by the Union on the Management on September 14, 1978. The terms of the settlement are annexed at Exhibit "A", to the petition and it is necessary to set out some of the relevant terms of the settlement. They are as follows:--
(3.) It was agreed between the parties that the workmen shall resume normal work with effect from November 2nd, 1978. The Company agreed to give bonus at the rate of 8.33% of total earnings of the workers. The workers agreed to observe discipline and restore normalcy of work on resumption of work. The parties agreed that the representatives of the Union and the Company would mutually discuss the demands pending in conciliation and in case the parties fail to reach settlement on or before January 31, 1979, then the parties would make a joint application for referring the dispute to the Industrial Tribunal under Section 10(2) of the Industrial Disputes Act 1947. The workmen also agreed to make good the loss of production and assured that the production of the value of Rs. 2,40,000/-per month would be given.