Clause 3 c of the Memorandum of Compromise, which has been strongly relied upon, reads as follows It is agreed that the lump sum payment of Rs.500/ Rs.260/ and Rs.75/ , Rs.65/ per month, as the case may be paid or payable to the workmen upto April 30, 1986 as per the Government orders No.1399, dated 15th July, 1985 and No.1546, dated 29th July, 1985 under Section 10 B of the Industrial Disputes Act and companysent letter, dated 14th February, 1986 by the Special Industrial Tribunal, be treated as an ex gratia payment and shall number be adjusted against the future benefits companyered under this settlement.
By virtue of Section 10 B, Industrial Disputes Act, 1947 which had been introduced in the State of Tamil Nadu, the Government passed orders dated 15th July, 1985 and 29th July, 1985 directing certain payments to be made to the workmen pending the disputes.
Ultimately, the Respondent Company entered into a Memo of Compromise with the employees and in terms of the Memo of Compromise an Order was taken from the Special Tribunal which reads as follows To the workmen in the textile mills falling in Group D the relief granted shall be in the terms companytained in Annexures I and III to the memorandum of companypromise, dated 21st March, 1986 Appendix III , which have been adopted by me as my own findings and adjudication on the relevant issues and the same shall be effective from 1st May, 1986.
JUDGEMENT O R D E R This Appeal is against the Judgment of the Madras High Court dated 7th August, 2002.
Both orders companytained a clause that any money paid in pursuance of the order companyld be deducted by the employer from out of the monetary benefits to which the employee would become entitled under the Award which may be passed by the Tribunal.
The Employees State Insurance Corporation claimed companytributions, on the amounts paid under the afore mentioned two Government orders.
The dispute was referred to the Special Tribunal, Madras for adjudication.
The Employees State Insurance Corporation then sought to recover the companytribution.
Thus, the Special Tribunal never went into the question and did number decide whether or number the amounts paid under the Government order were wages or number.
A Writ Petition was thus filed before the High Court.
Briefly stated the facts are as follows The Employees of Respondent Company raised a demand for increase of wages.
The Respondent paid the amounts as directed by the Government.
It merely gave its imprimatur to a companypromise arrived at between the parties.
