Law:

Section:

Industrial disputeSettlementImplementation ofOn serving a charter of demands on employers, a settlement was arrived at between employers and employees with regard to payment of utility allowance (electricity, gas and water etc.) to employees, but employers failed to implement settlementSettlement arrived at between parties was in unqualified terms and was duly signed by officers fully competent to enter into it on behalf of employersEmployers were bound under law to implement settlement competently arrived at between parties and could not be allowed to wriggle out of their commitments. Muhammad Humayun for Appellant. M.L. Shahani for Respondents. Date of hearing: 18th November, 1993. DECISION This appeal from the order of the Labour Court No.V, Karachi, by which the petition was allowed and the respondents were directed to pay the Utility Allowances to the petitioners from 111991 to 31121992, has arisen in the following circumstances: The petitioners on 111991 had served a Charter of Demands on the respondents under section 26(1) of the I.R.O. Bilateral negotiations had followed and a settlement was reached between the parties on 941991 which included the demand of Utility Allowance (electricity, gas and water), clause 4 thereof was couched in the following words: "It is mutually agreed that the Utility Allowance shall be paid to all categories of the employees at the rate of Rs.200 per month on re­imbursement basis." 2. The entire settlement except the clause in question was honoured by the respondents. As clause No.11 of the settlement enjoined that "any difference, ambiguity, or dispute arising out of the interpretation of any of the clauses terms or workings of the Agreement shall be referred by the union to the Chairman of the Corporation for a decision, the petitioners wrote a few letters to the Chairman that the clause in regard to the reimbursement of the Utility Allowance also be implemented. As the efforts failed the petitioners served a grievance notice and later filed the petition under section 25A(10)IRO before the Labour Court for the enforcement of the rights accruing under the settlement. 3. The respondents in their written reply alleged that…

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