In Brief
Kanpur Fertilizer and Cement Ltd challenged an order granting a workman full wages with 9% simple interest during plant closure. The company argued a settlement with the workers' union, approved by the Board for Industrial and Financial Reconstruction (BIFR) as part of a revival scheme, obligated the workman to accept only 25% of wages as honorarium. The Supreme Court held that settlements approved by BIFR bind all employees, including non-union members, under the Industrial Disputes Act and the Sick Industrial Companies Act. The workman was entitled only to 25% of wages with 9% interest, not full wages. The appeal was partly allowed.
The lawyer headnote and full judgment text are available to registered users.