Case: The Rashtriya Mill Mazdoor Sangh, Bombay Vs. B.A. Ekbote and Others

1. The facts necessary to be noticed in connection with the second contention are as follows : In respect of the 43 employees who had given the above written agreements to the company, the total sum claimed in diverse small amounts aggregated to Rs.In respect of this total claim, by the statement filed before the Authority, the company admitted diverse amounts aggregating to Rs.being due to these employees. The difference between the aggregate claim made on behalf of these 43 employees and the claim admitted to be due by the company came to Rs.

Court's reasoning:
Now, it is difficult for us to accept the above submission made on behalf of theGenuine and valid compromise made between an employee and an employer in connection with disputes between them as regards the true and correct amounts of illegal deductions payable to the employee cannot be held to be relinquishment of rights. Apparently there can be genuine disputes in respect of amounts claimed by employees in applications made under the Act. In numerous case, an employer may be able to prove that though the claims were for very large amounts, the illegal deductions were really of small amounts which were payable by them. The question is whether, in connection with such genuine disputes between an employee and an employer, S. 23 provides that settlement cannot be made and compromise cannot be effected. What is null and void under the section is relinquishment of rights conferred under the Act. When under compromise an agreed amount is held to be due and payable to an employee, the compromise cannot be described as an agreement for relinquishment of rights conferred by the Act.It appears to us that there is nothing in the two authorities relied upon on behalf of theIn this connection, it requires to be recorded that the amount due to these 43 employees, as admitted on behalf of the company in the statement filed by it before the Authority, was deposited by the company in the office of the Authority. That amount has been recovered by thewithout prejudice to its contentions made in this petition. The amount as agreed to be due by the company has now been received by these 43 employees. The agreements made by these 43 employees, so far as the company is concerned, have now been completely performed and the company has discharged its obligation for payment of illegal deductions claimed by these employees before the Authority, in the application that was made by theWe must add that it was permissible for these 43 employees by way of agreement to admit that the amounts mentioned by the company as payable to them in the statement filed (before the Authority) were the only amounts payable to them and to accept those amounts in full settlement of the claims made on their behalf in the application filed by theHaving regard to this finding, the second contention fails. As the second contention fails, we do not deem it necessary to consider and decide the first contention to law made on behalf of the