SHALIMAR PAINTS EMPLOYEES UNION Vs. SHALIMAR PAINTS LTD

JUDGEMENT

(1.) The appellants who are the workmen of the Shalimar Paints Limited represented by the Employees' Union have, in this appeal, challenged the propriety of the judgment of a learned single Judge of this Court whereby the learned Judge made the Rule Nisi obtained by the Respondent Company, Shalimar Paints Limited, absolute, on its application under Article 226 of the Constitution of India.

(2.) It appears that there was a settlement between the Respondent Company and its employees and the terms of such settlement were embodied in a memorandum, a copy of which has been annexed to the writ petition and marked Annexure 'D'. Clause 12 of the settlement provides that if will take effect on and from January 1, 1970 and will remain in force up to December 31, 1973. The relevant terms of settlement are as follows: - ?Retiring Benefits :

(3.) It may be stated that the Respondent Company made an application under section 5 of the Central Act requesting the State Government to exempt the Respondent Company from the operation of the Central Act. The State Government, however, refused to grant such exemption. On October 1, 1973, the Respondent Company issued a circular to its employees to the effect that since gratuity was now compulsorily payable, the pension benefit should be withdrawn.