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Syndicate Bank v. K Umesh Nayak

Syndicate Bank v. K Umesh Nayak

Syndicate Bank Vs. K. Umesh Nayak

Citation: 1995 AIR 319

Bench: P.B SAWANT 

FACTS:

There had been a strike at the bank which the employees’ Federation stated was because of a delay in the implementation of the settlement reached between the management and the workers. The Federation stated that they were willing to desist from any direct action if the management undertakes to implement the settlement within a fixed time. The representatives of the bank stated that they had to obtain prior permission of the government for the same. During this time, a strike was notified by the Federation and subsequently took place on a specified day. 

ISSUE:

The issue in this case was whether an employer could deduct wages from employees who are on strike for the duration of the strike and whether the legality of the strike would be a relevant factor. 

JUDGMENT:

This case re-examined and settled conflicting opinions which had been given by the Supreme Court in decisions of a smaller bench. 

The Court stated that a strike will be illegal if it is in contravention of the provisions of the industrial disputes act. 

The act states that no workman who is employed in any industrial establishment shall go on strike in breach of contract and no employer of any such workman shall declare a lockout during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings.

The Court established that there was neither a violation of a provision of any statute to render the strike illegal nor in the circumstances it could be held that the strike was unjustified. 

It directed the Central Government to refer the dispute with regard to the deduction of wages for adjudication to the appropriate authority under the Act within eight weeks.