GENERAL MANAGER, SECURITY PAPER MILL, HOSHANGABAD vs R.S. SHARMA & ORS.

The Supreme Court held that under Section 2(p) of the Industrial Disputes Act, 1947, a 'settlement' can be reached either during conciliation proceedings or through a written agreement between the employer and workmen outside such proceedings, provided it meets certain procedural requirements. The Court affirmed that the burden of proof lies on the employer to demonstrate that such a settlement is fair and just, and that it binds all workmen involved. The appeal by the management was dismissed, upholding the lower court's decision regarding the validity of the agreement made without conciliation proceedings.