Created byFuzzy Cloud

High Court of Gujarat

JEWEL CONSUMER PVT LTDversusGHANSHYAM RAMESHBHAI KACHIYA

Disposal
PARTLY ALLOWED @ ADMISSION STAGE

Holding

The High Court modified the Labour Court award to incorporate the terms of the settlement agreement, thereby partly allowing the petition.

Summary

Jewel Consumer Care Pvt Ltd filed a petition under Articles 226 and 227 of the Constitution challenging a Labour Court award that ordered its reinstatement of a workman with 25% back wages. During the pendency of the petition, the parties executed a Memorandum of Settlement under Section 2(p) of the Industrial Disputes Act, 1947, wherein the workman accepted a payment of Rs. 4,11,000 in full and final settlement, waiving his right to reinstatement and any further claims. The settlement was presented to the High Court, and the court examined its terms and the statutory provision allowing settlement of industrial disputes. The court held that the settlement could lawfully modify the award and accordingly altered the Labour Court award to reflect the settlement terms. Consequently, the petition was partly allowed, and the award was modified as per the agreement.

Issues considered

  • What is the effect of a settlement under Section 2(p) of the Industrial Disputes Act, 1947 on a pending award of the Labour Court?
  • Whether the High Court can modify the Labour Court award in accordance with the parties' settlement under Article 226 jurisdiction.
  • Whether the workman's waiver of reinstatement and back wages through settlement is legally valid.

Legislation cited

Subjects

industrial disputesettlementreinstatementback wagesSection 2(p)High CourtArticle 226award modification

Judgment

     C/SCA/15173/2025                               JUDGMENT DATED: 24/02/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
              R/SPECIAL CIVIL APPLICATION NO. 15173 of 2025

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Sd/-
==========================================================
             Approved for Reporting                Yes          No
                                                                No
==========================================================
                           JEWEL CONSUMER PVT LTD
                                    Versus
                        GHANSHYAM RAMESHBHAI KACHIYA
==========================================================
Appearance:
MR.VARUN K.PATEL(3802) for the Petitioner(s) No. 1
MR DARSHIT D THAKKAR(12434) for the Respondent(s) No. 1
==========================================================

     CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

                               Date : 24/02/2026

                                 JUDGMENT

1.       Present petition is          led by the petitioner under
Articles 226 and 227 of the Constitution of India r/w the
provisions of Industrial Disputes Act, 1947 challenging
the impugned award dated 31.1.2025 passed by Labour
Court, Vadodara in Reference (LCV) No.107 of 2017
whereby the Labour Court partly allowed the reference
and granted reinstatement with continuity of service with
25% backwages. Being aggrieved and dissatis ed with
the impugned award, the petitioner has preferred present
petition.

2.       Today, Mr. Patel, learned advocate for the petitioner
tenders a copy of the settlement agreement dated_


                                   Page 1 of 5
  C/SCA/15173/2025                           JUDGMENT DATED: 24/02/2026




13.2.2026 arrived at between the parties, which is taken
on record.

3. It appears that during the pendency of the petition, an
amicable settlement has been arrived at between the
parties. The parties have settled the dispute outside the
Court and have a5ixed their signatures to the settlement
agreement, which is in the vernacular language. The
terms and conditions stipulated in the said settlement
agreement shall form part and parcel of this order and
are hereby reproduced as under:-
                     "-:: Memorandum of Settlement ::-
      Memorandum of Settlement under Section-2(p) of the
      Industrial Disputes Act, 1947

      First Party:-
      Jewel Consumer Care Private Limited
      Plot No. 209-214, Luna Village, Taluka Padra, District
      Vadodara.

      Second Party:
      Shri Ghanshyam Rameshbhai Kachhiya
      c/o Jyoti Karmachari Mandal, Vadodara

      The following Memorandum of Settlement is entered
      into between both the aforementioned parties subject to
      the following conditions regarding the award passed by
      the Labour Court, Vadodara in Reference Case No.
      107/2017 under Section 2(p) of the Industrial Disputes
      Act. Both parties signing this agreement accept that they
      shall be bound by the implementation of the terms of
      this agreement. The Second Party of this case had 8led
      Reference Case No. 107/2017 against the First Party
      institution regarding reinstatement in service along with
      back wages for the days of unemployment; the award for
      the said case was delivered by the Honorable Labour
      Court, Vadodara on 31/01/2025. The said award has


                               Page 2 of 5
C/SCA/15173/2025                         JUDGMENT DATED: 24/02/2026




    been challenged by the First Party in the Honorable
    High Court of Gujarat vide R/SCA/15173/2025, for
    which a separate settlement has been presented before
    the Honorable Court for an 'Award in terms of
    Settlement' and has been disposed of accordingly.

    In connection with the order of the said Reference Case
    No.     107/2017,     discussions,  deliberations,  and
    negotiations for a settlement took place between the
    Second Party and the First Party company, resulting in a
    full and 8nal settlement.

    According to the said settlement, it is decided to pay a
    total amount of Rs. 4,11,000=00 (Rupees Four Lakh
    Eleven Thousand only) to the Second Party by the First
    Party as payment for waiving the right to back wages
    and reinstatement in service, and including all other
    dues and the amount under the passed order, etc., which
    is being paid as per the following details:

    1. Rs. 3,70,000=00 Cheque No. 002211 dated 03/02/2026
    2. Rs. 41,000=00 Cheque No. 002220 dated 03/02/2026
                      (Union Levy)
    Rs. 4,11,000=00 Total Amount (Jyoti Karmachari
    Mandal)

    The cheques are drawn on HDFC Bank, Manjalpur,
    Vadodara.

          After    accepting    the     amount    under    this
    Memorandum of Settlement, the Second Party shall have
    nothing further to receive regarding the award / order
    passed in Reference Case No. 107/2017 against the
    First Party institution, and no demands or dues of the
    Second Party remain pending against the First Party
    institution, nor does the right to reinstatement in service
    remain, and no dispute remains; and even if any dispute
    remained, they are accepted as having been set oC and
    paid within the amount paid towards this settlement.

    Upon receipt of the aforementioned amount from the
    First Party towards full and 8nal settlement, no other
    amount or dues remain for the Second Party, and if any
    were remaining, they are to be considered as included in


                           Page 3 of 5
C/SCA/15173/2025                        JUDGMENT DATED: 24/02/2026




    the aforementioned amount. For this reason and under
    these circumstances, the Second Party declares that the
    amount of the award passed in Reference Case No.
    107/2017 is also included in the amount of this
    settlement, and the Second Party admits through this
    Memorandum of Settlement that a full and 8nal
    settlement has been arrived atv in respect of the award
    in Reference Case No. 107/2017, wherein the Second
    Party - the workman accepts the waiver of the right to
    reinstatement in service.

    The above amount has been received towards the
    amount claimed by the Second Party in Recovery
    Application No. 238/2025 and/or towards the entire
    such amount. That is to say, the Respondent has paid the
    above amount to the Applicant as a settlement has been
    arrived at with the clear understanding that no
    implementation of the said award remains pending for
    the Respondent. The Applicant shall not have to 8le any
    case or proceedings against the Respondent regarding
    their termination and/or regarding service and/or
    regarding entitlements of rights during service and/or
    regarding back wages, and if any case is 8led or
    proceeding is initiated, it shall be considered null and
    void by virtue of this Memorandum of Settlement.

    The Second Party to this Memorandum of Settlement
    further declares and accepts that all amounts claimed
    under the recovery application shall remain (to have
    claimed) towards the full and 8nal settlement against the
    order of Reference Case No. 107/2017.

    The Second Party accepts through this Memorandum of
    Settlement that the First Party has challenged the said
    Reference Case before the Honorable High Court of
    Gujarat vide R/SCA/15173/2025; and that both parties
    accept that by producing this Memorandum of
    Settlement before the Honorable High Court of Gujarat
    and the Memorandum of Settlement arrived at in the
    pending recovery case before the Honorable Labour
    Court, Vadodara, a request shall be made to the
    Honorable High Court of Gujarat to obtain an order for
    an 'Award in terms of settlement'.


                          Page 4 of 5
     C/SCA/15173/2025                                                               JUDGMENT DATED: 24/02/2026




         The Second Party accepts through this Memorandum of
         Settlement and declares as withdrawn any disputes
         raised against the First Party before the Labour Court
         and Industrial Court, Vadodara, Government Labour
         OCicer, and Assistant      Labour Commissioner, and
         Deputy Labour Commissioner, or any other Government
         or Semi-Government oCice or Court in India.
         Furthermore, the Second Party workman gives an
         assurance not to raise any dispute before any Court,
         Government Labour OCicer, or any other Government
         oCicer in the future.

         Upon receiving the above amount from the First Party as
         full and 8nal settlement, no other amount or dues
         remain pending for the Second Party, and if any were
         remaining, they shall be considered included in the
         aforementioned amount.

         This agreement has been made by all parties with their
         full wisdom and intellect, in a sober state, without any
         kind of pressure, and with full consciousness of their
         responsibility, which is admitted and approved by both
         parties."

4.       In view of the above, the impugned award dated
31.1.2025                passed              by         Labour              Court,             Vadodara                  in
Reference (LCV) No.107 of 2017 is hereby modi ed to the
extent of the terms and conditions stipulated in the
agreement settlement. The petition is hereby partly
allowed.
                                                                                            Sd/-
                                                                        (HEMANT M. PRACHCHHAK,J)
SURESH SOLANKI

Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SURESHKUMAR MOTIBHAI SOLANKI(HC00208), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 27/02/2026 17:35:36




                                                       Page 5 of 5


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "industrial dispute"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.