SHAKARGANJ MILLS LIMITED Versus PUNJAB LABOUR APPELLATE TRIBUNAL

This petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, calls in question the judgment dated 27-6-1989, whereby it was held that in cases where notice of termination under subsection (2) of section 40 of the Industrial Relations Ordinance (XXIII of 1969) (hereinafter called the Ordinance), the demand notice, if it is served after the expiry of the period of settlement, agreed, the purpose, of such a notice and the demand become negotiable. However, a contrary view was taken by the Labour Appellate Tribunal Punjab in the case Workers' Union v. Hussain Sugar Mills (1984 PLC 129), wherein it was held that in terms of section 40 of the Ordinance, a settlement continues to remain binding on the parties after the expiry of the aforesaid period till the expiry of two months from the date on which either party informs the other party in writing of the intention of no longer to be bound by the settlement and that the two months notice is necessary for the termination of both kinds of settlement envisaged under section 40 of the Ordinance.

2. Report was called for from the learned Chairman of the Punjab Labour Appellate Tribunal to elucidate the view expressed in Worker's Union's case (supra) with reference to the impugned judgment. It is stated that he did not consider his earlier ruling as it was not cited by the petitioner while arguing the appeal.

3. It is not necessary to give any considered views on the rule laid down in Workers Union's case, which will be considered in some other appropriate case Suffice it to say that in order to maintain cordial relations with the respondent Worker's Union, the management of the petitioner Mills has no objection to negotiate the charter of demand dated 1-3-1989 submitted by the respondent Union. It his also been agreed that the petitioner will convene the first meeting on 10-10-1989 at 10.00 a.m. in the Mills office with the President, Senior Vice President and the General Secretary of the Respondent Union to discuss the charter of demand.

4. In view of the above, the: petitioner is directed to negotiate, with .the respondent Union the charter of demands dated 1-3-1989, in accordance with law and in the light of the undertaking given by Mr. Muhammad Hussain Chatha, Factory Manager of the Petitioner Mills. With these observations, the writ petition is accepted, but there shall be no order as to costs.

H.B.T./S-713/L Petition accepted.