P. VIRUDHACHALAM & ORS. vs THE MANAGEMENT OF LOTUS MILLS & ANR.

The Supreme Court addressed whether an individual workman under the Industrial Disputes Act, 1947 can claim lay-off compensation under Section 25C despite a settlement made by a union he is not a member of, as per Section 12(3) of the Act. The Court held that such a settlement can restrict the right to lay-off compensation, affirming that the appellants, not being signatories to the settlement, are bound by its terms. Consequently, the appeal was dismissed, upholding the validity of the settlement.