M/S. NORTH BROOK JUTE CO. LTD.AND ANOTHER vs THEIR WORKMEN

The Supreme Court held that the approval of a rationalisation scheme by the Works Committee was not binding on the workmen, as they only represented the workmen for the Committee's functions. The Court established that the introduction of the scheme constituted an alteration of service conditions, contravening Section 33 of the Industrial Disputes Act, 1947, since it was implemented while a reference was pending before the Tribunal. Consequently, the lock-out declared by the employer was deemed illegal, entitling the workmen to wages for the period of absence caused by the lock-out.