WORKMEN OF NANGAL FERTILIZER CORPORATION OF INDIA Vs. MANAGEMENT OF THE FERTILIZER CORPORATION OF INDIA NANGAL UNIT

JUDGEMENT

(1.) THIS judgment disposes of C. W. P. No. 3197 of 1979 and C. W. P. No. 178 of 1980. In these petitions under Articles 226/227 of the Constitution of India, challenge has been made to the award of the Arbitrator dated May 9, 1979.

(2.) FACTS firm :settlement was arrived at between the Management of the Fertilizer Corporation of India Ltd. (Nangal Unit) and the workmen of the Nangal Unit of the Fertilizer Corporation of India vide Memorandum of Settlement Dated October 8, 1970 with regard to the following : (i) Bonus payable (ii) Production Bonus Scheme. In the meeting held on August 31, 1971, the Board of Directors of the Fertilizer Corporation of India Limited (for short, the Corporation) passed a resolution deciding that the Statutory Bonus to the Corporation's employees with effect from the year 1970-71 should be paid on Corporation-wise basis in respect of all operating Units, P and D Division and the Central Office, excluding all projects under construction. The decision of the Board of Directors was circulated by the Finance Manager, Food Corporation of India Ltd. vide Ref. No. A/pers/bonus/70/71/7885, dated October 11, 1971. The workmen of the Nangal Unit of the Corporation objected to the decision of the Board of Directors and insisted for payment of statutory bonus on Unit-wise basis at least foe a period of five years from October, 1970 till the Settlement dated October 8, 1970 was to remain in force. The dispute between the workmen and the Management of the Nangal Unit of the Corporation was referred by the Governor of Punjab under Section 10-A (3) of the Industrial Disputes Act. 1947 (for short, the Act) for arbitration. Vide Arbitration Agreement dated January 20, 1978, the parties to the dispute agreed to refer the following dispute to the arbitration of Justice B. N. Lokur, D-380, Defence Colony, New Delhi:

(3.) THE precise submission of the learned counsel for the petitioner is that the Settlement dated October 8, 1970, arrived at between the Management of the Nangal Unit of the Corporation and its workmen envisaged that the same would be binding on the parties for a minimum period of five yeas from its date and will continue to remain binding thereafter also till any party gives in writing to the other for discontinuance of the agreement. This condition could not be suspended, rescinded or negatived. The workmen were entitled to payment of bonus as mentioned in the Memorandum of Settlement dated October 8, 1970 for the period mentioned therein. The submission is bereft of any merit. The reference to the Arbitrator was necessitated because of the Memorandum of Settlement. The Arbitral or in the opening para of his award stated thus :