Law:

Section:

Industrial Relations Ordinance (XXIII of 1969)- -- S. 40(2)-Settlement-Period for which to remain operative­ specified by agreement and in absence of such agreement for one year--Period of enforcement by agreement-Can either be specified in Settlement itself or in a separate agreement-Such separate agreement must be established by tangible evidence-Essentials for a valid agreement-A proposal by one party and acceptance thereof by other party-No indication of any proposal nor acceptance of any-No tangible evidence supporting inference that parties had agreed that settlement be enforced for specified period-Settlement in circumstances, held, enforceable for one year from execution date. Messrs Development Construction Corporation Ltd., Karachi v. West Pakistan P. W. D. and 20 others P L D 1971 Kar. 292 ref. Siemens (Pak.) Employees & Labour Welfare Centre v. Siemens (Pak.) Engineering Co. Civil Appeal No. K-33 of 1966 rel. Mamoon Kazi for Applicants. Ali Amjid for Respondents. Date of hearing : 10th February, 1981. ORDER This is an application under section 50, I. R. O., by the Sind Alkalis Limited, for interpretation of the provisions of a settlement arrived at between the aforesaid company and the Collective Bargaining Agent in the said company, the Sind Alkalis Worker Union. Although the said settlement was arrived at and signed on 21st August, 1979 it was enforced with effect from 1st April, 1979 as provided under demand 30 of the settlement. The difference or doubt as to the provisions of the settlement is said to have arisen on account of the absence in the settlement of any specific period for which it was to remain in force. According to the applicant-Company, however, it was agreed between the parties that the settlement was to remain in force for period of two years from its com­mencement, while according to the respondent union, it was to remain in force for a period of one year as provided under clause (2) of section 40, I. R. O. 2. Mr. Mamoon Kazi, the learned counsel for the applicant-Company, while not disputing the position that the settlement itself was silent as to the period of its validity, submitted that there was an agree­ment and…

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