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As noted above there was no challenge to the settlement which was the foundation for the Board's decision. A copy of the Memorandum of Settlement under Section 12(3) of the Act before the Joint Commissioner and Labour and State Conciliation officer, Government of Andhra Pradesh, Hyderabad was placed on record. On the basis of the settlement, the Board's decision was taken. Paragraph 2 of the proceedings is very significance and read as follows:

"A Wage Negotiation Committee was therefore constituted by the Board in the B.P. sixth read above. The committee held detailed discussions with the representatives of the unions and finally reached a negotiated settlement with the recognized union under the code of discipline on 29.1.1991 before the Joint Commissioner of Labour and State Conciliation Officer under Section 12(3) of I.D. Act."