All India Bar Examination (AIBE) 2-II Previous Year Question Papers with Answers

Practice Mode:
89.

A, B and C are employees of D, and are workmen for the purposes of the Industrial Disputes Act, 1947 ("the IDA"). A,B and C raise an industrial dispute against D in 2005, and a settlement was arrived at in the course of conciliation proceedings in 2006. Subsequently, D employs several other workers including X, Y and Z. Would the settlement bind X, Y and Z ?


Principle :

Settlements arrived at in the course of conciliation proceedings, or an arbitration award or award of Labour Court or Tribunal bind all parties to an industrial dispute, including present and future workmen and all parties who were summoned to appear in the proceedings.
A: The settlement would bind X,Y, and Z only if they consented to the terms of the settlement.
B: Since the settlement was arrived at by mutual agreement, it binds those who were actually party to the agreement and does not bind X, Y, or Z.
C: The settlement would bind X,Y, and Z whether or not they actually consented to the terms of the settlement.
D: Since this was a settlement arrived at by mutual agreement, it would bind X,Y, and Z whether or not they actually consented to the terms of the settlement.
E: his settlement would never bind X,Y, and Z even with their consent since it was merely a conciliation settlement.

The answer is: C

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Explanation

The most accurate option in light of the provided principle is:

C: The settlement would bind X, Y, and Z whether or not they actually consented to the terms of the settlement.

Explanation:

The principle states that settlements arrived at in the course of conciliation proceedings, or an arbitration award or award of Labor Court or Tribunal, bind all parties to an industrial dispute, including present and future workmen and all parties who were summoned to appear in the proceedings. This means that the settlement reached by A, B, and C in 2006 would bind not only them but also any future workmen, including X, Y, and Z, whether or not they actually consented to the terms of the settlement. The binding effect is not dependent on their individual consent but on the fact that it is a settlement reached during conciliation proceedings related to the industrial dispute involving D.