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2005 (11) TMI 523

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..... 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 bip .....

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..... Federation (second respondent) representing 13% of the workmen of the Bank accepted the terms of the settlement dated 18.8.1996 by signing a separate settlement dated 6.12.1997. The settlement dated 18.8.1996 contained the following clause: - DURATION This settlement will come into force with effect from August 18, 1996 and on various dates as specified under different items contained in the settlement. The same shall be binding on the parties until December 31, 1998. After December 31, 1998 and except in the case of ex-gratia system/payments all other terms and conditions thereof shall continue to be binding on the parties until the settlement is terminated by either party giving to the other statutory notice as prescribed in law for the time being in force. It is agreed that since the settlement shall be binding between the parties to this settlement under Section 18(1) of the Industrial Disputes Act, 1947, it will also be binding on the affiliated units of All India Grindlays Bank Employees' Association and hence on their members and thus the members shall automatically be entitled to the benefits of this settlement and subject t .....

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..... uance of a corrigendum on 17.12.1998, the reference reads as under: - Whether the terms of bipartite settlement dated 18.8.1996, between the management of ANZ Grindlays Bank Limited, and All Indian Grindlays Bank Employees Association which bound withholding of benefits of settlement to workmen who are not members of All India Grindlays Bank Employees Association until the individual gives acceptance of the settlement in the given format is legal and justified? If not, to what relief are the workmen entitled to? Feeling aggrieved by the aforesaid reference made by the Central Government the ANZ Grindlays Bank filed a writ petition under Article 226 of the Constitution before the Bombay High Court for quashing and setting aside the same. The writ petition was dismissed by a learned single Judge and the appeal preferred against the said decision before the Division Bench also failed. The present appeal has been filed by the Bank challenging the aforesaid orders. 6. Mr. Gaurab Banerji, learned senior counsel for the appellant- Bank, has submitted that the reference made by the Central Government is wholly redundant and it does not show what i .....

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..... ction (3), an arbitration award which has become enforceable shall be binding on the parties to the agreement who referred the dispute to arbitration. (3) A settlement arrived at in the course of conciliation proceedings under this Act or an arbitration award in a case where a notification has been issued under sub-section (3-A) of Section 10A or an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on-- (a) all parties to the industrial dispute; (b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board arbitrator, Labour Court, Tribunal or National Tribunal, as the case may be, records the opinion that they were so summoned without proper cause; (c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates; (d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on .....

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..... the settlement and the same shall be binding upon them and the format of the receipt, which has been reproduced earlier, does not contain any such term, which may be of detriment to them. To protect its interest the Bank was perfectly justified in asking for a receipt from those employees, who were not members of the Association (third respondent), but wanted to avail of the benefit of the settlement. Therefore, we do not find anything wrong in the Bank asking for a receipt from the aforesaid category of employees. 10. The principal issue, which requires consideration, is whether the Central Government was justified in making a reference to the Industrial Tribunal in terms set out earlier. Section 2(k) of the Act defines industrial dispute and it means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person. The definition uses the word dispute . The dictionary meaning of the word dispute is: to contend any argument; argue for or against something asserted or maintai .....

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..... favour, which may be capable of execution. On the contrary the appellant-Bank would be a big loser as it will not only be very difficult but almost impossible for the Bank to recover the monetary benefits already paid to its employees under the settlement. We are, therefore, of the opinion that the reference made by the Central Government is wholly uncalled for and deserves to be set aside. 13. Mr. Bhat, learned counsel for the second respondent, has submitted that this Court should not interfere with the order of the Central Government making a reference under Section 10 of the Act, as the appellant can ventilate its grievances before the Industrial Tribunal itself and if the decision of the tribunal goes against the appellant, the same may be challenged in accordance with law. According to learned counsel the writ petition is pre-mature as the appellant has got a remedy before the Tribunal to show that the reference is either bad in law or is uncalled for. We are unable to accept the submission made. It is true that normally a writ petition under Article 226 of the Constitution should not be entertained against an order of the appropriate Government making a referenc .....

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