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High Court of Gujarat

JEWEL CONSUMER PVT LTDversusFIROZBHAI AKBARBHAI PARMAR

Disposal
PARTLY ALLOWED @ ADMISSION STAGE

Holding

The High Court modified the Labour Court award to the extent of the settlement terms, thereby giving effect to the Section 2(p) settlement and partially 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 dated 31‑01‑2025 that granted reinstatement 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 employer agreed to pay Rs 4,11,000 to the workman in full and final settlement, waiving the right to reinstatement and back wages. The settlement was submitted to the High Court and the parties affirmed that no further claims would be pursued. The Court examined whether the award could be modified in accordance with the settlement and affirmed its power to do so. Accordingly, the Court modified the award to reflect the settlement terms and partially allowed the petition. The order also directed that the settlement amount be treated as an award in terms of the settlement.

Issues considered

  • What is the effect of a settlement under Section 2(p) of the Industrial Disputes Act on a pending award of the Labour Court?
  • Can the High Court modify the Labour Court award to give effect to the parties' settlement?
  • Does the settlement bar any future claims by the workman against the employer?

Legislation cited

Subjects

Industrial DisputeSection 2(p)SettlementReinstatementBack wagesHigh CourtLabour Court awardArticle 226Article 227

Judgment

     C/SCA/15135/2025                              JUDGMENT DATED: 24/02/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               R/SPECIAL CIVIL APPLICATION NO. 15135 of 2025


FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Sd/-
==========================================================
             Approved for Reporting               Yes          No
                                                               No
==========================================================
                          JEWEL CONSUMER PVT LTD
                                   Versus
                        FIROZBHAI AKBARBHAI PARMAR
==========================================================
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.110 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.




                                  Page 1 of 5
     C/SCA/15135/2025                        JUDGMENT DATED: 24/02/2026




2.       Today, Mr. Patel, learned advocate for the petitioner
tenders a copy of the settlement agreement dated_
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 Firozbhai Akbarbhai Parmar
         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.
         106/2017 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. 106/2017 against the First Party
         institution regarding reinstatement in service along with


                               Page 2 of 5
C/SCA/15135/2025                         JUDGMENT DATED: 24/02/2026




    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
    been challenged by the First Party in the Honorable
    High Court of Gujarat vide R/SCA/15135/2025, 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.     106/2017,     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=00Cheque No. 002215 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. 106/2017 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


                           Page 3 of 5
C/SCA/15135/2025                        JUDGMENT DATED: 24/02/2026




    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
    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.
    106/2017 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. 106/2017, 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. 241/2025 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. 106/2017.

    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/15135/2025; 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


                          Page 4 of 5
     C/SCA/15135/2025                                                               JUDGMENT DATED: 24/02/2026




         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'.

         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.110 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 17:37:02




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