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Issues: (i) Whether a civil court has jurisdiction to entertain a suit seeking injunction in respect of matters governed by the Industrial Disputes Act, 1947; (ii) whether a suit in a representative capacity could be maintained to enforce rights flowing from a settlement under section 18(1) of the Industrial Disputes Act, 1947; (iii) whether a decree of permanent injunction could be granted to restrain implementation or termination of the settlements in question.
Issue (i): Whether a civil court has jurisdiction to entertain a suit seeking injunction in respect of matters governed by the Industrial Disputes Act, 1947.
Analysis: The scheme of the Industrial Disputes Act, 1947 provides a complete machinery for investigation, conciliation, reference, adjudication, settlement, termination, and enforcement of industrial disputes through the statutory forums. Where the dispute concerns enforcement of a right or obligation created under the Act, the remedy under the Act is exclusive and the civil court's jurisdiction is barred by necessary implication. A civil suit remains competent only where the dispute is not an industrial dispute, or where it concerns a right arising under the general law or common law and not under the Act.
Conclusion: The civil court had no jurisdiction to entertain the suits insofar as they sought enforcement of rights created under the Industrial Disputes Act, 1947.
Issue (ii): Whether a suit in a representative capacity could be maintained to enforce rights flowing from a settlement under section 18(1) of the Industrial Disputes Act, 1947.
Analysis: A settlement under section 18(1) binds the parties to the agreement and the rights asserted in the first suit flowed from such a collective industrial settlement. The claim was therefore rooted in a statutory framework and not in an ordinary civil right. A representative suit also could not validly combine persons with distinct sources of entitlement, since the members of the union and non-members did not necessarily have the same interest or the same legal basis for relief.
Conclusion: The representative suit could not be maintained to enforce the claimed rights arising under the statutory settlement.
Issue (iii): Whether a decree of permanent injunction could be granted to restrain implementation or termination of the settlements in question.
Analysis: A permanent injunction cannot be granted to prevent breach of a contract that is not specifically enforceable, and the settlement relied upon was determinable under section 19(2) and susceptible to modification under section 9A. The relief sought would also have required the court to preserve two inconsistent settlements simultaneously, which was impracticable. The statutory framework of the Specific Relief Act, 1963 therefore did not support the grant of perpetual injunction on the facts found.
Conclusion: The decree of permanent injunction was not sustainable.
Final Conclusion: The disputes were held to fall within the exclusive statutory machinery of the Industrial Disputes Act, 1947, and the civil court could not grant the injunctive reliefs sought.
Ratio Decidendi: Where a statute creates a special right and provides a special forum and remedy for its enforcement, the civil court's jurisdiction is impliedly excluded and injunction cannot be used to enforce a determinable statutory settlement through ordinary civil proceedings.