Next Manufacturing (Pvt) Ltd vs Jayasundara – sllr 2020 volume 3 page 108

In the case between Next Manufacturing (Pvt.) Ltd. and Ms. W.K.S. Jayasundara, the Supreme Court addressed whether the Labour Tribunal retains jurisdiction to review or disturb a settlement entered under Section 12(1) of the Industrial Disputes Act between an employer and an employee. It was held that once a valid settlement is concluded under Section 12(1) with the Commissioner of Labour’s assistance, the Labour Tribunal lacks jurisdiction to review the matter. This principle reaffirms the statutory binding nature of such settlements pursuant to Sections 12–15 of the Act. The decision emphasized that a memorandum of settlement, duly reached under this framework, precludes further adjudication of the dispute by the Tribunal, and set aside prior orders to the contrary.

Thurairaja J. — The