Section 29 Industrial Disputes Act 1947 - Breach of Settlement or Award
Section 29 of the Industrial Disputes Act, 1947 prescribed punishment for breach of a term of a settlement or award binding on a person under that Act. The current corresponding provisions are contained in Sections 57 and 86(17)-(18) of the Industrial Relations Code, 2020.
Section 29 of the Industrial Disputes Act 1947
Section 29 - Penalty for breach of settlement or award
Any person who commits a breach of any term of any settlement or award, which is binding on him under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine or with both; and where the breach is a continuing one, with a further fine which may extend to two hundred rupees for every day during which the breach continues after the conviction for the first breach. The Court trying the offence, if it fines the offender, may direct that the whole or any part of the fine realised from him shall be paid, by way of compensation, to any person who, in its opinion, has been injured by such breach.
Section 57 - Persons Bound by Settlements and Awards
Section 57 of the Industrial Relations Code determines who is legally bound by a settlement or award. A settlement arrived at by agreement between an employer and worker otherwise than in conciliation proceedings binds the parties to the agreement. An enforceable arbitration award binds the parties who referred the dispute to arbitration, subject to the wider binding effect specified by the Code.
A settlement reached in conciliation proceedings, or an enforceable arbitration award or award of a Tribunal or National Industrial Tribunal, may bind the parties to the industrial dispute, parties summoned in the proceedings subject to the statutory exception, relevant heirs, successors or assigns of an employer, and workers falling within the classes specified in Section 57.
Section 86(17) - Current Penalty for Breach
Section 86(17)
A person who commits a breach of a term of a settlement or award that is binding on that person under the Industrial Relations Code is punishable with a fine of not less than Rs. 20,000 and up to Rs. 2,00,000, or imprisonment for a term up to three months, or both.
Section 86(18) - Continuing Breach and Compensation
Section 86(18)
Where a breach covered by Section 86(17) continues, an additional fine up to Rs. 1,000 may be imposed for every day during which the breach continues after the first conviction. If the court imposes a fine, it may direct that the whole or part of the fine realised from the offender be paid as compensation to a person whom the court considers affected by the breach.
Meaning of Settlement and Award
Settlement
Under the Industrial Relations Code, a settlement broadly refers to a settlement arrived at in the course of conciliation proceedings and includes a written agreement between an employer and workers arrived at otherwise than in conciliation proceedings where the statutory requirements for such an agreement are satisfied.
Award
An award is an interim or final determination of an industrial dispute or a question relating to it by an Industrial Tribunal or National Industrial Tribunal, and includes an arbitration award made under the Code.
When Can the Penalty Apply?
The statutory offence requires a breach of a term contained in a settlement or award that is legally binding on the person concerned. Accordingly, the existence and terms of the settlement or award, its binding effect under Section 57, and the conduct alleged to constitute breach are material to the application of Section 86(17).
Old Section 29 and Current Section 86
| Provision | Breach covered | Penalty |
|---|---|---|
| Section 29, Industrial Disputes Act 1947 | Breach of a term of a settlement or award binding under the Act | Imprisonment up to six months, or fine, or both; additional fine up to Rs. 200 per day for specified continuing breach |
| Sections 86(17)-(18), Industrial Relations Code 2020 | Breach of a term of a settlement or award binding under the Code | Fine from Rs. 20,000 to Rs. 2,00,000, or imprisonment up to three months, or both; additional fine up to Rs. 1,000 per day for continuing breach after first conviction |
State Amendments Under the Earlier Industrial Disputes Act
The earlier page also records State amendments inserting Section 29A in Andhra Pradesh, Kerala and Tamil Nadu concerning failure to comply with orders under Section 10B. These provisions belonged to the State-amended Industrial Disputes Act framework and may remain relevant to historical matters depending on the date, territorial application and applicable saving provisions.
Andhra Pradesh
Andhra Pradesh Act No. 32 of 1987 inserted Section 29A providing punishment for failure to comply with provisions contained in an order made under Section 10B(1), with imprisonment prescribed by the State amendment and fine, subject to the proviso permitting a shorter sentence for reasons recorded by the Court.
Kerala
Kerala Act No. 30 of 1979 inserted Section 29A concerning failure to comply with a provision contained in an order made under Section 10B as applicable in the State, prescribing imprisonment and fine.
Tamil Nadu
Tamil Nadu Act No. 36 of 1982 inserted Section 29A concerning failure to comply with a provision contained in an order made under Section 10B(1), prescribing imprisonment and fine.
Repeal and Saving
Section 104 of the Industrial Relations Code, 2020 contains repeal and saving provisions concerning the Industrial Disputes Act, 1947, the Trade Unions Act, 1926 and the Industrial Employment (Standing Orders) Act, 1946. These provisions should be considered when determining the legal effect of earlier settlements, awards, liabilities, proceedings and actions.
This article provides general statutory information. The applicable provision may depend on the date of the settlement or award, the date and nature of the alleged breach, its binding effect, State amendments, applicable rules and the repeal and saving provisions.