Industrial Disputes Act, 1947 · Chapter IV: Procedure, Powers and Duties of Authorities
Section 18: Persons on whom settlements and awards are binding
The Industrial Disputes Act, 1947 was repealed and replaced by the Industrial Relations Code, 2020 from 21 November 2025. It still applies to matters and proceedings from before that date, as the repealing law provides.
In plain words
This section says who is bound by settlements and awards.
- A settlement made outside conciliation binds only the parties to it.
- An arbitration award binds the parties who referred the dispute.
- A conciliation settlement, or an enforceable award of a Labour Court or Tribunal, binds all parties to the dispute and those properly summoned.
- It also binds the employer's heirs, successors and assigns, and all workmen employed in the establishment on the date of the dispute and those employed later.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
[(1) A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement.
(2) [Subject to the provisions of sub-section (3), an arbitration award] which has become enforceable shall be binding on the parties to the agreement who referred the dispute to arbitration.] [(3)] A settlement arrived at in the course of conciliation proceedings under this Act [or an arbitration award in a case where a notification has been issued under sub-section (3A) of section 10A] or
[an award [of a Labour Court, Tribunal or National Tribunal] which has become enforceable] shall be binding on—
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, [arbitrator,] [Labour Court, Tribunal or National Tribunal], as the case may be, records the opinion that they were so summoned without proper cause;
(c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part.
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 18
-
Ch. Joseph v. The Telangana State Road Transport Corporation & Other
i) Whether the retirement of the appellant on medical grounds due to colour blindness, without offering alternative employment, is legally sustainable in light of applicable service regulations and binding settlements;…
-
UCO Bank & Anr. v. Vijay Kumar Handa
The appellant-Bank dismissed the respondent from the services. Whether the respondent was entitled to receive the terminal benefits for the period of service he had rendered.
- Jcb India Limited & Anr v. The Competition Commsiion of India & Anr
- Food Corporation of India v. Union of India & Ors
- National Coop.Union of India & Anr v. Its Workmen,Represented by Del.Lab.Union
- Ranbir Singh v. Sk Roy, Chairman, Life Insurance Corp. of India & Anr.
- Oil and Natural Gas Corporation Ltd. v. The President, Oil Field Employees Association & Ors.
- Bank Employees Union v. Rajarshi Shahu Govt. Servants Co-Operative Bank Ltd., Kolhapur
- B K Pavitra and Ors. v. The Union of India and Ors
- Globe Ground India Employees Union v. Lufthansa German Airlines & Anr.
- Tamil Nadu Electricity Board Rep. by Its Chairman v. Tneb-Thozhilalar Aykkiya Sangam by Its General Secretary
- Bhupendra Kumar Chimanbhai Kachiya Patel v. Divisional Controller Gsrtc Nadiad
- Ongc Ltd. v. Petroleum Coal Labour Union & Ors.
- M.R. Prabhakar and Others v. Canara Bank and Others
- Jik Industries Limited & Ors. v. Amarlal v. Jumani and Another
- C.V. Satheeshchandran v. General Manager, Uco Bank and Ors .
- Mohan Mahto v. M/S. Central Coal Field Ltd. & Ors.
- New Delhi Municipal Council v. Pan Singh and Ors.
- Morgan Securities and Credit Pvt.Ltd v. Modi Rubber Ltd.
- Punjab National Bank and Ors. v. Manjeet Singh and Anr.
- Ceat Ltd. v. Murphy India Employees Union
- Anz Grindlays Bank Ltd. (Now Known As Standard Chartered Grindlays Bank Ltd.) v. Unlon of India and Ors.
- Central Organisation of Tamil Nadu Electricity Employees v. Tamil Nadu Electricity Board
- Air India Ltd. and Ors. v. Vishal Kapoor and Ors.
- Uco Bank and Ors. v. Sanwar Mal
- Mukand Ltd. v. Mukand Staff and Officers Association
- I.T.C. Ltd. Workers Welfare Association and Anr. v. The Management of I.T.C. Ltd. and Anr.
- South Malabar Gramin Bank v. Co-Ordination Committee of South Malabar Gram in Bank H1Ployees Union and South Malabar Gramin Bank Officers Federation and Ors.
- Blue Star Employees Union v. Ex. Off. Principal Secy. to Government and Anr.
- State Bank of India and Ors v. Harbans Lal
- National Engineering Industries Ltd. v. State of Rajasthan and Ors.
- Management of Karnataka State Road Transport Corporation Etc. v. Ksrtc Staff and Workers Federation and Anr. Etc.
- Indian Bank v. K. Usha and Anr. Etc. Etc.
- S.S. Bola and Ors. Etc. v. B.D. Sardana and Ors. Etc.
- Process Technicians and Analysts' Union v. Union of India and Ors.
- K.C.P. Limited v. The Presiding Officer and Ors.
- M/S. Gujarat Machinery Manufacturers Ltd. v. Collector, Central Excise, Baroda.
- Fertilizer Corporation of India Ltd. and Anr. v. Saratchandra Rath and Ors.
- Comorin Match Industries (Pvt.) Ltd. v. State of Tamil Nadu
- Syndicate Bank and Anr. Etc. Etc v. Sh. K. Umesh Nayak Etc. Etc.
- Barauni Refinery Pragatisheel Shramik Parishad and Others v. Indian Oil Corporation Limited and Others
- Bhagwan Dass Chopra v. United Bank of India & Ors.
- Life Insurance Corporation of India & Another Etc. v. S.S. Srivastava & Others
- Reserve Bank of India & Ors. v. C.N. Sahasranaman & Ors.
- General Manager, Security Paper Mill, Hoshangabad v. R.S. Sharma & Ors.
- Brooke Bond India Ltd. v. The Workmen
- The Life Insurance Corporation of India v. D. J. Bahadur & Ors.
- Jaswant Singh & Ors. Etc. v. Union of India and Ors. Etc.
- Indian Oxygen Ltd. v. The Workmen As Represented by Indian Oxygen Karamchari Union
- Madan Mohan Pathak v. Union of India & Ors. Etc.
- M. v. Kuriakose v. The State of Kerala and Others
- Herbertsons Limited v. Workmen of Herbertsons Limited and Ors
- Hochtief Gammon v. State of Orissa & Ors.
- Premier Automobiles Ltd. v. Kamlekar Shantaram Wadke of Bombay & Ors.
- Management of the Kirlampudi Sugar Mills Ltd. v. Industrial Tribunal, A.P. & Anr.
- Workmen of M/S. Delhi Cloth and General Mills v. Management of M/S. Delhi Cloth and General Mills Ltd.
- Praga Tools Corporation v. Shri C. A. Imanual & Ors.
- Indian Oxygen Ltd. v. Their Workmen
- Purshotam H. Jadye and Others v. V. B. Potdar
- Hochtief Gammon v. Industrial Lribunal, Bhubaneshwar, Orissa and Ors.
- S. K. G. Sugar Ltd. v. Sri Ali Hassan, Chairman, Industrial Tribunal, Bihar & Others
- The Bharat Bank Ltd., Delhi v. Employees of the Bharat Bank Ltd., Delhi