In Brief
The Supreme Court examined whether a workman could claim full wages with 9% interest when a settlement between management and the representative union had been approved as part of a BIFR revival scheme. The Court held that such a settlement under Section 18(1) of the Industrial Disputes Act, 1947 and approved under Section 18(8) of the Sick Industrial Companies (Special Provisions) Act, 1985 binds all workmen, including non-members of the union. The workman was thus limited to 25% of wages as per the settlement, with 9% interest, rather than full wages. The Labour Court and High Court had erred in granting relief beyond the approved settlement.
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