Post Graduate Programme in Human

Resource Management (PGPHRM)

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EMPLOYMENT LAW I
(EL I)
Prof. Parul Gupta
PhD (Faculty of Law-JMI, New Delhi), LL.M., PGDBM

Dr. Parul Gupta

SESSION 14
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Award & Settlement IDA

Chapter III of IDA
Provisions for the enforcement of

award and settlements

Dr. Parul Gupta

Enforcement of Award and Settlements

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Form of Report or Award (Section 16)

Report of a Board or court has to be in

writing and to be signed by all the members

of the Board or court.
any member of the Board or court may

record any minute of dissent from a report or

from any recommendation made therein.
Dr. Parul Gupta

Enforcement of Award and Settlements

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Publication of Report and Awards

(Section 17)
Within a period of thirty days from the date

of its receipt by the appropriate government

to be published in a manner prescribed by
the appropriate government.
It is further clarified that the award
published under sub-section (1) is final and
cannot be called in question by any court in
any manner whatsoever (section 17(2)).
Dr. Parul Gupta

Enforcement of Award
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Commencement of Award (Section 17-A)

Enforceable on the expiry of thirty days from the date

of its publication under section 17.

The award shall not become enforceable on the expiry

of the said period of thirty days, if;

a.

the appropriate government is a party; or

b.

the Central Government is of opinion, the award given

by a National Tribunal will be inexpedient on public
grounds affecting national economy or social justice
to give effect to the whole or any part of the award, the
appropriate government, or as the case may be

Dr. Parul Gupta

Enforcement of Award
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Rejection or modification of award

(Section 17-A(2))
The

appropriate government or the Central

Government is empowered to make an order
rejecting or modifying the award within ninety
days from the date of publication of the award
under section 17.
A copy of the order before the Legislature of the
State, if the order has been made by a State
Government, or before Parliament, if the order has
been made by the Central Government.
Dr. Parul Gupta

Enforcement of Award
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Enforceability of the award

(Section 17-A(3))
Where any award as rejected or modified by
an order made under sub-section (2) is laid
before the Legislature of a State or before
Parliament, such award becomes
enforceable on the expiry of fifteen days
from the date on which it is so laid.
Dr. Parul Gupta

Enforcement of Award and Settlements

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Payment of Full Wages Pending Proceedings

(Section 17-B)
The wages are payable to the employee by the

employer only if;

i.
the workman had not been employed in
any establishment during such period and
ii. an affidavit by such workman had been
filed to that effect in such court.
Dr. Parul Gupta

Payment of Full Wages Pending

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Proceedings
Case 14.1: T S Ltd. v Industrial Tribunal - I
Taj Services Limited vs Industrial Tribunal-I
& Others

Discussion Point
Were the workmen entitled to the benefits
under Section 17B of the Industrial Disputes
Act, 1947?
Dr. Parul Gupta

Payment of Full Wages Pending

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Proceedings
Judgment
Once the workman has filed an affidavit to the effect that he had
not been employed in any establishment during the period of
pendency of the proceedings in Court, the onus is on the

employer to prove to the satisfaction of the Court that the

workman had been so employed and had been receiving
adequate remuneration.
Even if the workman runs some petty business for the survival
of himself and his family, it will not disentitle the workman
for the benefits under Section 17B of the Industrial Disputes
Act. The learned counsel for the respondents also contended that
the proviso to Section 17B of the Industrial Disputes Act would be
attracted only in the case of employment under another
employer and receiving adequate remuneration.
Dr. Parul Gupta

Enforcement of Award and Settlements

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Case 14.2: C C Company Ltd. v D K Barman

Calcutta Chemical Co. Ltd. And ... vs D.K.
Barman And Anr.
Discussion Point
Was the relief of reinstatement awarded by
the Labour Court to Mr. Barman, justified
and appropriate in the above mentioned
circumstances?
Dr. Parul Gupta

Enforcement of Award and Settlements

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Judgment
The order of reinstatement is not to follow in
all cases mechanically. Mr. Barman was not an
employee, in whose case, an order of reinstatement
could be or should have been made. The past record of
Mr. Barman, the nature of his alleged stated lapse and
the ground on which the order of the management was
set aside were also relevant factors for consideration.

It was held that the relief of reinstatement

given to the employee was to be set
aside.
Dr. Parul Gupta

Settlement
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(Section 2(p))
'Settlement' means a settlement arrived at in
the course of conciliation proceeding and
includes written agreement between the
employer and workmen arrived at otherwise
than in the course of conciliation proceeding
where such agreement has been signed by the
parties thereto in such manner as may be
prescribed and a copy thereof has been sent to
the
appropriate
Government
and
the
conciliation officer;
Dr. Parul Gupta

Settlement
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Settlements are classified into two

categories, namely
Settlement

arrived at otherwise than in

the course of conciliation proceedings, i.e.
without the aid of statutory agency;
and
Settlement arrived at in the course of
conciliation proceedings with the aid of
statutory agency.
Dr. Parul Gupta

Enforcement of Settlements
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Section 19 (1)
A settlement shall come into operation on
such date as is agreed upon by the parties
to the dispute, and
if no date is agreed upon, on the date on
which the memorandum of the settlement
is signed by the parties to the dispute.

Dr. Parul Gupta

Period of Operation of Settlements

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Section 19 (2) - Settlement

Such settlement shall be binding for such period as
is agreed upon by the parties, and
if no such period is agreed upon, for a period of six
months from the date on which the memorandum of
settlement is signed by the parties to the dispute
and shall continue to be binding on the parties after
the expiry of the period aforesaid, until the expiry
of two months from the date on which a notice in
writing of an intention to terminate the settlement
is given by one of the parties to the other party or
parties to the settlement.
Dr. Parul Gupta

Period of Operation of Awards

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Section 19 (3) - Award

An award shall, remain in operation for a period of one

year from the date on which the award becomes

enforceable under section 17A
Provided that the appropriate Government may reduce the
said period and fix such period as it thinks fit
Provided further that the appropriate Government may,
before the expiry of the said period, extend the period of
operation by any period not exceeding one year at a time as
it thinks fit
However, that the total period of operation of any award
does not exceed three years from the date on which it came
into operation.
Dr. Parul Gupta

Enforcement of Award and Settlements

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Effect
of
material
change
in
the
circumstances on the period of operation
(Section 19(4))

Application to appropriate govt

Reference to respective adjudicating body
Decision of the body to be final and binding

Notice of termination of award by the

parties (Sections 19(6) and 19(7))

Two months
By majority

Dr. Parul Gupta

Period of Operation of Settlement and

Awards
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Case 14.3: P C Cooperative v P Central

GROUP EIGHT
The Patiala Central Cooperative ... vs The
Patiala Central
Discussion Point
Under above mentioned circumstances, could
the agreement be allowed to continue under
section 19 of IDA?
Dr. Parul Gupta

Period of Operation of Settlement and

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Awards
Judgment
Sub-section (2) of Section 19 merely extends the
period during which the agreement will be
enforced, but it does not provide that the
agreement will be valid and binding
notwithstanding any law to the contrary.
If after the agreement has been entered into, any
law is passed and the agreement cannot be
enforced without violating that law, then
clearly the agreement cannot be enforced. The
law will prevail.
Dr. Parul Gupta

Persons on whom settlements and

awards are binding
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Section 18 (3),

in the course of conciliation proceedings under this Act or an

arbitration award 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;
(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 the date of the dispute and all persons who
subsequently become employed in that establishment or part.

Dr. Parul Gupta

Commencement and Conclusion of

Proceedings
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Section 20
1.A case where a settlement is arrived at
2.A case where no settlement is arrived

at
3.A case when a reference is made to a
court, Labor Court, Tribunal or
National Tribunal under section 10
Dr. Parul Gupta

Enforcement of Award and Settlements

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Commencement and conclusion of proceedings in

Arbitration and adjudication proceedings (Section 20(3))

commence on the date of the reference of the dispute for

arbitration or adjudication, as the case may be.
conclude on the date on which the award becomes
enforceable under section 17A.

Penalty for the Breach of Settlement or Awards (Section

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punishable with imprisonment for a term which may extend to six

months, or with fine, or with both, and where the breach is a
continuing one, with a further fine which may extend to two
hundred rupees for every day during which the breach continues
after the conviction......

Dr. Parul Gupta

NEXT SESSION
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SESSION 15
Strikes & Lockouts
Chapter IV of IDA
Treatment

of strike
provided by the Act

Dr. Parul Gupta

and

lockouts

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Dr. Parul Gupta