(1) A registered agreement, or a settlement, submission or award shall be binding upon all persons who are parties thereto:
Provided that-
(a) in the case of an employer, who is a party to such agreement, settlement, submission or award, his successors in interest, heirs or assigns in respect of the undertaking as regards which the agreement, settlement, submission or award is made, and
(b) in the case of a registered union which is a party to such agreement, settlement, submission or award,1[all employees in the industry in the local area whose representative, the said union is],
shall be bound by such agreement, settlement, submission or award.
(2) In cases in which a Representative Union is a party to registered agreement, or a settlement, submission or award, the2[State] Government may, after giving the parties affected an opportunity of being heard, by notification in the Official Gazette, direct that such agreement, settlement, submission on award shall be binding upon such other employers and employees in such industry or occupation in that local area as may be specified in the notification:
Provided that before giving a direction under this section the2[State] Government may, in such cases as it deems fit, make a reference to the Industrial Court for its opinion.
(3) A registered agreement entered into by the representatives of the majority of the employees affected or deemed to be affected under section 43 by a change shall bind all the employees so affected or deemed to be affected.
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1. This portion was substituted for the original by Bom. 49 of 1955, s. 3.
2. This word was substituted for the word "provincial" by the Adaptation of Laws Order, 1950.