Professional Documents
Culture Documents
Dispute Settlement ID
Dispute Settlement ID
Labour law -I
By
A.R.Poorvaja
(reg no :- BA0130043)
III YEAR, B.A.L.L.B.,(HONS)
Under the guidance and supervision of
DECLARATION
ACKNOWLEDGEMENT
Table of contents
List of cases............................5.
Chapter I:
1.1 Introduction.7
1.2 Research objectives.7
1.3 Research methodology....7
1.4 Research questions..8
1.5 Literature review.8
Chapter V:
5.1 Conclusion...29
5.2 Recommendations/suggestions....29
5.3 Bibliography30
5
List of cases
Delhi cloth general mills v. their workmen, (1967) II LLJ 523 (SC)
Dhanalakshmi v. Reserve Bank of India, Bombay, (1999) LLR 278
Glaxo laboratories Ltd. v. Labour court, Guntur, 1977 Lab IC 1523 AP
Graphite India Ltd. v. State of West Bengal, 1979 Lab IC 1279 (Cal)
Gujarat Steel Tubes Ltd v. Gujarat Steel Tubes Mazdoor Sabha, (1980) 1 LLJ 137
Haryana state co-operative land development Bank v. Neelam, (2005) 1 LLJ 1153 (SC)
Indian general navigation railway co, v. workmen, (1960) 1 LLJ 13 (SC)
ITC Ltd. workers welfare association v. mgmt of ITC ltd, (2000) 1 SCC 371
Jaypore sugar co. Ltd, v. their employees, (1995) 2 LLJ 444 (LAT)
Juggat pharma (P) Ltd v. Deputy Commissioner of labour, Madras, (1982) 2 LLJ 71
Karnal leather Karamchari Sangathan v. Liberty Footwear Co., (1989) 2 LLJ 550 (SC).
Kathayee cotton mills Ltd. v. District Labour Officer, (1988) 1 LLJ 417
Kemp & Company Ltd., v. their Workmen, (1955) II LLJ 481 Mad
Landra Engineering and Foundary workers v. Punjab state, (1969) Lab IC 196
Lipton Ltd v. Workmen, (1959) 1 LLJ 431 (SC)
M/S. North Brook Jute Co. Ltd v. Their Workmen, AIR 1960 SC 879
Management of KSRTC v. KSRTC staff and workers federation, (1999) 1 LLJ 489 (SC)
Mineral Industrial Association v. Union of India, (1971) Lab IC 837
Modern stores Cigarettes v. Krishnadas Shah, (1970) Lab IC 196,
National Project Construction Corporation v. their workmen, (1960) Lab IC 907 (Patna)
North Orissa Workers Union v. State of Orissa, (1971) LLJ 199 (Orissa)
Oil India ltd. v. G.N.Borah and others, 1977 Lab IC 1610 (Cal)
Punjab National bank v. workmen, AIR 1960 SC 160
Pure drinks pvt ltd. v. Kirat singh, (1961) 2 LLJ 99
Rohtas industries v. Rohtas industries Staff Union, AIR 1967 Pat 149
Sindri cement factory union v. Dass, 1977 Lab IC 1801 (Pat)
State of Bihar v. Kripa shanker Jaiswal, AIR 1961 SC 304
Union of India v. T.R.Verma, AIR 1957 SC 832
6
Chapter I:
1.1 Introduction
"Workers of the world, unite! You have nothing to lose but your chains!"
-Karl Marx
Though the concept of labour was prevalent in India since 2250 B.C. from the code of Hamurabi,
its importance is realized only after the industrial revolution and the rise of communism. There
arouse a situation to protect the rights of the labour against the dominant employer community.
When such a realization has spread among the workers community, several disputes started
arising between the management and labour giving way to new legislations. One of such
legislations is Industrial Disputes Act,1947 with the aim of settling the industrial disputes in
peaceful and harmonious way which proceeded from Rule 81-A of Defence of India Rules,1939.
The Act provides for the establishment of several authorities under Chapter III for the purpose of
settling industrial disputes and Chapter IV deals with the power and duties of such authorities.
The authorities have been divided into adjudicatory and non-adjudicatory bodies for the purpose
of understanding and their mechanism is also explained in this project.
The research methodology is doctrinal in nature. The research is in the form of analytical where
the provisions are critically evaluated on the background of judicial interpretation. The
fundamental reliance is on the statutes like Industrial Disputes Act,1947, Industrial Disputes
(Central) Rules,1957 and certain judicial decisions. Additional reliance is on the books written
by various authors like K.M.Pillai, Srivastava etc., various articles and journals. The analysis is
8
also dependent on the facts given by websites about such provisions which serve as secondary
source of the project which might be useful for suggesting amendments to the statute if
necessary.
1. What are the various authorities and their dispute settlement mechanism under
Industrial Disputes Act,1947?
2. Did the authorities established under Industrial Disputes Act succeed in
settling the disputes?
3. What are the recommendations made by Industrial Relations Commission and
how it can be applied in the present scenario?
4. What are the various ILO conventions regarding the dispute settlement?
1.5 Literature review:
Authors like K.M.Pillai and Srivastava should be referred for the basic understanding of the
topic. Pillai in his book, Labour and Industrial laws has discussed in detail about the basic
principles of adjudication citing a number of cases and he has sorted out the difference between
various authorities whereas Srivastava in his book Industrial Relations and Labour laws gives a
comprehensive view on the authorities under ID Act. But both the books need to get updated to
some extent. In Labour and industrial laws, Saharay has compiled the fundamentals of the
dispute settlement mechanism with recent case laws. Ram Reddy in his book, Industrial
Relations in India: A Study of the Singareni Collieries, has dealt in detail about the National
commission on labour and is helpful for the researcher to trace the important aspects of the
commission and its recommendations. Sinhas, Industrial Relations, Trade Unions, and Labour
Legislation explains the concepts by taking different stands both from the workers and
employers lens. He also explains the relevance of the state legislations in the labour arena. The
article of M.J.Arputharaj & R.Gayatri on A critical analysis on efficacy of mechanism to
industrial disputes resolution in India traces the evolution of the industrial disputes settlement
mechanism. The article on 3 methods for settlement of industrial disputes by Smriti Chand is
suggested for basic understanding of the concept and has helped the researcher to draw the
differentiations between the mechanisms involved.
9
2.1 Conciliation:
Conciliation is a process where the dispute between the employer and workmen are referred to a
third party and the third party helps them to come to an agreement. However he is not the
ultimate decision maker. He helps the disputants to come to a consensus. For the purpose of
conciliation only, the appropriate governments appoint conciliation officers and constitute board
of conciliation as mentioned above. This process has come out successful in many industrialized
countries. The success of the conciliation machinery in India can be accounted by statistics 1.
However it has failed in some states too. The non-adjudicatory bodies follow the process of
conciliation.
The conciliation proceedings generally commence from the reference of the disputes by the
appropriate government. During the pendency of the conciliation proceedings, strikes and
lockouts are prohibited in public utility services and the exercise of managements prerogative2.
A conciliation proceeding is deemed to have concluded,
When the settlement is arrived and memorandum of settlement is signed by both the
parties
When no settlement is arrived, then the report of the board is actually received by the
appropriate government3 and is published under sec.17
When reference is made to a labour court, tribunal or national tribunal under sec.10
The settlement as defined by sec.2 (p) as that arrived at in the course of conciliation proceeding
and includes a written agreement signed by the parties and a copy is sent to the officer authorized
by the appropriate government. In the course of conciliation proceedings essentially requires
that the settlement is arrived during the conciliation proceedings are pending4. The settlement
must be in form 4 as mentioned under Rule 58 (i). The settlement must be fair, just and bonafide
and it should be published by the appropriate government under sec.17 (1). The settlement shall
1
See generally S.C.Srivastava, Industrial relations and labour laws, 275,276(6th Edition,2013), Vikas Publishing
house Pvt. Ltd, Noida.
2
See sec.22(1) (d) of ID Act. see also sec.22(2) (d) and 33 of ID Act
3
See Workmen of industry colliery v. its colliery, (1953) 1 LLJ 190 (SC)
4
See Bata shoe co. Ltd v. Ganguli, AIR 1961 SC 1158
10
come into force on the date in which the memorandum of settlement is signed and agreed by the
parties5 and it can be terminated by written intimation after the expiry of two months from the
date of the notice (where the notice is given after the expiry of 6 months after the memorandum
of settlement is signed by both the parties or any period prescribed thereof)6.
In Jaypore sugar co. Ltd, v. their employees7, the settlement was reached by the workers with the
management that there shall be no strike till the end of next crushing season. But without giving
any notice to terminate, strike was carried on. The labour appellate tribunal held that the
settlement is still binding.
In Cochin State Power Light Corporation ltd v. its workmen8, the employer and employees
arrived at a settlement which was to remain in force till 30th September,1959. A charter of
demands was presented by the workers on 14th October,1959 by which they resolved to terminate
the settlement. It was contended that settlement was not terminated by the prescribed manner in
sec.19(2). Court held that the charter is sufficient notice under 19(2).
The settlement arrived by the agreement is binding only on the parties to the dispute whereas
settlement arrived in the course of conciliation proceedings is binding not only on the parties but
also
On all the parties summoned to appear in the proceedings (summoned with proper clause
by board,arbitrator,courts and tribunals)
party referred in cl.(a) and (b) is an employer, his heirs, successors and assignees
party referred in cl.(a) and (b) is workmen or persons who were employed in or part of
the establishment and the persons subsequently employed in the establishment after the
date of the dispute.
5
See Sec.19 (1) of ID Act
6
See Sec.19(2) of ID Act
7
See(1995) 2 LLJ 444 (LAT)
8
See (1964) 2 LLJ 100 (SC), See also management of KSRTC v. KSRTC staff and workers federation, (1999) 1 LLJ 489
(SC)
11
Thus sec.18(3) of ID Act differs from contract law and lead us towards theory of collective
bargaining where the settlement reached by the representative binds the workmen beyond him
not only the existing workmen but also the future workmen9.
ITC Ltd. workers welfare association v. mgmt of ITC ltd.10, decides five important issues
connected with the settlement arrived at the course of conciliation proceedings. The court
decided that
i) the industrial tribunal cannot ignore the settlement unless it is found contrary to the
mandatory provisions of the Act
ii) the settlement binds on all the workmen despite of any objections
iii) the settlement is presumed to have arrived by just and fair manner
iv) the settlement should be given more weightage with regard to collective bargaining and
settlement cannot be ignores unless it is unfair, unjust and malafide
v) the settlement is not liable to be tested on the touchstone of Art.14
2.2 Adjudication:
9
See Virudhachalam P. v. Mgmt of Lotus mills, AIR 1998 SC 554
10
See (2000) 1 SCC 371
11
See generally Lalit Bhasin, India: Labour And Employment Laws Of India, mondaq,
http://www.mondaq.com/india/x/50440/employee+rights+labour+relations/Labour+And+Employment+Laws+Of+I
ndia (last visited Sep.30,2015, (N.T.M.))
12
ibid
12
This concept of compulsory adjudication was introduced in India by Rule 81-A of the Defence of
India Rules. Though it was repealed, it is incorporated in ID Act. Its main aim is to promote
industrial peace. There are three adjudicatory bodies in India as mentioned earlier: Labour
Courts, Industrial Tribunals and National Tribunals. Disputes are generally referred by the
appropriate government on the recommendation of conciliation officers. The appeals from the
conciliation authorities are generally dealt by these bodies. The system of adjudication is made
compulsory as trade unions are weak in India. It provides for settling disputes related to wages,
working hours, holidays, safe conditions of working etc., the general principles of labour
adjudication are as follows:
i) The adjudicatory bodies cannot go beyond the scope of the matter referred13
ii) The findings must be based only on the relevant and material facts proved in the case14
iii) A tribunal cannot avoid or relinquish the jurisdiction15
iv) Tribunals are not bound to adjudicate upon when the workers give up their demand as
held in Glaxo laboratories Ltd. v. Labour court, Guntur16.
v) The government has no power to take away the jurisdiction of the labour courts during
the pendency of the proceedings as held under Sindri cement factory union v. Dass17.
vi) The rules of res judicata and estoppel need not necessarily be applied to industrial
adjudication as held in Indian general navigation railway co, v. workmen18.
vii) The tribunals and labour courts have some implied powers under sec.11 A (inserted by
1971 amendment). They can deal with the industrial disputes regarding the dismissal or
discharge of workman provided that they rely on the material records and not beyond
that.
viii) The rules of natural justice should be strictly followed19.
13
See Delhi cloth general mills v. their workmen, (1967) II LLJ 523 (SC)
14
see Workmen of Dahingeapara tea estate v. Dahingeapara tea estate, AIR 1958 SC 1026
15
See Oil India ltd. v. G.N.Borah and others, 1977 Lab IC 1610 (Cal)
16
See 1977 Lab IC 1523 AP
17
See 1977 Lab IC 1801 (Pat)
18
See (1960) 1 LLJ 13 (SC) Comparewith Burn & co. v. employees, (1957) 1 LLJ 226 (SC)
19
See Punjab National bank v. workmen, AIR 1960 SC 160
13
Arbitration is a process in which the conflicting parties agree to refer their dispute to a neutral
third party known as Arbitrator. Arbitration differs from conciliation in the sense that in
arbitration the arbitrator gives his judgment on a dispute while in conciliation, the conciliator
disputing parties to reach at a decision20. When negotiations fail, the parties opt for voluntary
arbitration. The decisions of the arbitrators are binding on the parties. This clause has been
inserted into the ID Act by 1956 amendment. Sec. 10A (1) authorizes the parties to make
reference to voluntary arbitrator. The conditions are:
Sec.10A (2) (d) requires the arbitration agreement to be in Form C and Rule 7 of ID (Central)
Rules, 1957. However, it is enough that the requirements of that form are substantially complied
with and it need not be necessarily in the prescribed Form C as held in North Orissa Workers
Union v. State of Orissa21. The agreement should be signed by the parties. Non-compliance of
the signature of the parties poses the question of validity of the award. Then such dispute may be
referred to the labour courts. Substantial compliance with the rule that the consent of the
arbitrators is must is required. A copy of the arbitration agreement must be sent to appropriate
government under sec.10A (3). Non-submission of the copy would render the award invalid.
The government within one month of the receipt of the copy must publish the same in the official
gazette.
The supreme court held in Karnal leather Karamchari Sangathan v. Liberty Footwear Co.22, that
the arbitration agreement must be published before an arbitrator considered the merits of the
disputes. Non-compliance of this requirement will be fatal to the arbitration award. Regarding
the time limit, Orissa High court23 held the time limit of one month should be mandatorily
20
See generally Admin, Difference Between Arbitration and Conciliation, Difference between.com,
http://www.differencebetween.com/difference-between-arbitration-and-vs-conciliation/ (last visited oct.1,2015,
(N.T.M.))
21
See (1971) LLJ 199 (Orissa)
22
See (1989) 2 LLJ 550 (SC). See also Kathayee cotton mills Ltd. v. District Labour Officer, (1988) 1 LLJ 417
23
See North Orissa Workers Union v. State of Orissa (supra)
14
followed. The High Courts of Punjab and Haryana24, Delhi25, Madhya Pradesh26 were of
opposite view. There is no Supreme Court decision in this regard.
The reference must be made before a dispute is referred under sec.10 to a labour court or
tribunals
The name of the arbitrator or arbitrators must be specified.
The voluntary arbitrator under ID Act is considered as a statutory arbitrator Rohtas industries v.
Rohtas industries Staff Union27. Arbitrator is a statutory tribunal and any error on the face of the
award is subject to review by the courts. An arbitrator should be impartial and must build
confidence among the parties. He or his relatives must not accept any favour from any parties to
the dispute which would amount to misconduct as held in National Project Construction
Corporation v. their workmen28. The arbitrator has the jurisdiction to decide upon all the
industrial disputes referred to him under the agreement but he cannot decide matters which are
not referred to him by the parties. Though sec.11A did not specifically mention about the
arbitrator, he has the power to interfere with the punishment awarded by the management. It was
affirmed by Justice Krishna Iyer in Gujarat Steel Tubes Ltd v. Gujarat Steel Tubes Mazdoor
Sabha29.
The arbitrators must sign the award and send it to the appropriate government. Where a reference
is made to even number of arbitrators, an umpire shall be appointed whose award shall prevail.
Such awards can be supervised by the High Court under Art.227 and by the Supreme Court
under Art.136 as the 1964 amendment extended the application of ID Act as held in Rohtas
industries v. Rohtas industries Staff Union(supra).
The second National commission on Labour felt that the arbitration as a dispute settlement
machinery is better than adjudication. Sec.10A (5) excludes the application of Arbitration
Act,1940 in the arbitration of industrial disputes.
24
See Landra Engineering and Foundary workers v. Punjab state, (1969) Lab IC 196
25
See Mineral Industrial Association v. Union of India, (1971) Lab IC 837
26
See Modern stores Cigarettes v. Krishnadas Shah, (1970) Lab IC 196, See also Aftab-e-jadid,Urdu Daily
Newspapers v. Bhopal Shramjivi Patrakar Sangh, (1985) 1 LLJ 272
27
See AIR 1967 Pat 149
28
See (1960) Lab IC 907 (Patna)
29
See (1980) 1 LLJ 137
15
In the case of an industrial establishment in which 100 or more workmen are employed on any
day in the preceding 12 months, the appropriate Government may require the employer to
constitute a 'Works Committee30'. It consists of equal number of representatives of employers
and workmen engaged in an industry. The representatives of the workmen shall be chosen from
amongst the workmen engaged in the establishment and in consultation with the registered trade
union, if any (registered under Indian Trade Unions Act,1926)31. Works committee deals with
the workers problem arising day to day in the industrial establishment. They have been set up to
promote amity and good relations between the employer and workmen as given under sec.3(2) of
ID Act.
In Kemp & Company Ltd., v. their Workmen32, that The Works Committees are normally
concerned with problems arising in the day to day working of the concern and the functions of
the Works Committees are to ascertain the grievances of the employees and when occasion arises
to arrive at some agreement also.
The Industrial Disputes (central) Rules, 1957 contemplates several rules from Rule 38 to 57
governing the composition of the works committee. Rule 39 contemplates that the number of
representatives of the worker shall not be less than the number of representatives of the employer
and the total number should not exceed 20. In terms of the representatives of the employer, they
are nominally selected and in respect of the workmen33, the employer may ask the trade unions
to supply him with the list of members34 and the election is conducted among two groups
according to Rule 42:
Those to be elected by the workmen who are the members of the trade union and
30
See Sec.3(1) of Industrial Disputes Act,1947
31
see The Industrial Disputes Act, 1947, what is human resource.com, (2014),
http://www.whatishumanresource.com/the-industrial-disputes-act-1947 (last visited Oct.1, 2015, (N.T.M.))
32
See (1955) II LLJ 481 Mad
33
See Rule 40 of ID (central) rules,1957
34
See Rule 41 of ID (central) rules,1957
16
Those to be elected by the workmen who are not members of the trade union.
The scope of the committee is vague. Apart from dealing with the disputes on terms of
employment and conditions of labour, they also deal with technical matters and advise the
company about its sale and trade positions.
In M/S. North Brook Jute Co. Ltd v. Their Workmen35, a rationalisation scheme in the mills of
the appellant companies was agreed to by the Works Committee and a notice under S. 9A of the
Industrial Disputes Act, 1947, was given to the Union of their workmen. The workmen,
however, objected to the introduction of the scheme and the dispute was referred by the
Government to the Tribunal. During the pendency of the suit, works committee decided to have a
lock-out. Held the lockout as invalid, court ordered for providing compensation to the workmen.
The report of the government of India on the Labour Management Relations by ILO in 1959
says that the large number of working committees failed to prove its worth practically. The
reasons may be the upperhand of the employers and lack of cooperation and education among
the workers. The first national commission on labour,1969 suggested some methods to have
effective functioning of works committee:
Sec.4 of ID Act, 1947, provides for the appropriate government to appoint such number of
persons as conciliation officers for settling the industrial disputes. These officers are appointed
for a specified area or for specified industries or for one or more specified industries36. Their
decisions are not binding on the parties.
35
See AIR 1960 SC 879
36
See Sec.4(2) of ID Act
17
There are no qualifications prescribed for the conciliation officers. They are deemed to be public
servants under sec.21 of Indian Penal Code37. While the Commissioner /additional
commissioner/deputy commissioner is appointed as conciliation officer for undertakings
employing 20 or more persons, at the State level, officers from central Labour Commission
office are appointed as conciliation officers, in the case of Central government38. The
conciliation officer enjoys the powers of a civil court. He is expected to give judgment within 14
days of the commencement of the conciliation proceedings. The judgment given by him is
binding on the parties to the dispute39. He is empowered to enforce the attendance of any person
or inspect any documents40 and to enter the premises of any establishment to which the dispute
relates after giving a reasonable notice under s.11(2). Failure to give the notice affects the
legality of the proceedings41.
If the employer and the workmen fail to arrive at a settlement through negotiations, The
Conciliation Officer may intervene as a mediator, endeavour to reconcile the differences
of opinion.
Intervention by the Conciliation Officer is mandatory in case where an Industrial Dispute
has arisen in a Public Utility Service and a notice of strike or lockout (Under Section 22)
has been served. Such date is taken as the date of commencement of the proceedings
under sec.20(1).
The Conciliation Officer shall, for the purpose of bringing about a settlement of dispute,
without delay, investigate the dispute and may do all such things as he thinks fit for the
purpose of inducing the parties to come to a fair and amicable settlement of the dispute
under sec.12(2).
The Conciliation Officer shall send a report of proceedings to the Government, as to
whether the settlement has been achieved or not, within fourteen days of the
37
See Sec.11(6) of ID Act
38
See Smriti Chand, 3 methods for settlement of industrial disputes, Your article library,
http://www.yourarticlelibrary.com/industries/3-methods-for-settlement-of-industrial-disputes/35436/ (last visited
Sep.28,2015, (N.T.M))
39
ibid
40
See Sec.11(4) of ID Act
41
See State of Bihar v. Kripa shanker Jaiswal, AIR 1961 SC 304
18
In Juggat pharma (P) Ltd v. Deputy Commissioner of labour, Madras43, where the establishment
in Bangalore appointed several sale representatives in Madras and on the termination of the
services, the dispute was referred to the commissioner in Madras. The court was held to have
jurisdiction irrespective of the fact that the establishment was not situated in Madras.
A writ of mandamus44 cannot be issued against the conciliation officer asking him to ensure that
the settlements are limited as he has is not empowered to adjudicate the proceedings but to
simply bring the parties to the consensus. Any such settlement can be enforced only by referring
it to the appropriate government under sec.29.
The conciliation proceedings can also be initiated and continued by the legal heirs of the
deceased workmen as held in Dhanalakshmi v. Reserve Bank of India, Bombay45. After the
termination of the proceedings, the appropriate government refers the disputes to the
adjudicatory bodies.
Whenever there arises a dispute of complicated nature and requires special handling, the
appropriate government constitutes the board of conciliation under sec.5 of ID Act.The Board of
Conciliation is not a permanent institution like conciliation officer46. It is an adhoc body
consisting of a chairman and two or four other members nominated in equal numbers by the
42
See generally Vikramlamhe, CONCILIATION MACHINERY, citehr,(2012), http://www.citehr.com/6150-
conciliation-machinery-under-id-act-1947-industrial.html (last visited Oct.1,2015, (N.T.M.))
43
See (1982) 2 LLJ 71
44
See Workmen of Buckingham and carnatic mills v. State of Tamilnadu, (1982) 2 LLJ 90
45
See (1999) LLR 278
46
See Smriti Chand, 3 methods for settlement of industrial disputes, Your article library,
http://www.yourarticlelibrary.com/industries/3-methods-for-settlement-of-industrial-disputes/35436/ (last visited
Sep.28,2015, (N.T.M))
19
parties to the dispute. The Board enjoys the powers of civil court. It follows the same
conciliation proceedings as is followed by the conciliation officer. The Board is expected to give
its judgment within two months of the date on which the dispute was referred to it47. The
appropriate government refers the disputes to the board under sec.10(1) (a). If the chairman of
the board is not available, the board cannot function until another member is appointed in his
place as specified under sec.5(4).
The inquiry by the board is deemed to be judicial proceeding within the meaning of sec. 193 and
228 of IPC and sec. 345,346,348 of the code of criminal procedure. The board
Can issue notices to the authorities48 and can handle ex-parte circumstances49
Can keep certain awards confidential50
Can accept admit, accept or call for evidences at any stage51
can conduct the proceedings in camera52if required
should allow the parties to have the right of examination and cross-examination53
should provide the expenses for witnesses as in civil court54
The board has the duty to settle the disputes amicably without any delay as under sec.12(1). If
the settlement has been arrived, a report along with the memorandum of settlement signed by the
parties should be send to the appropriate government under sec.13(1). In case of failure of the
settlement, the board should send a full report to the government along with the recommendation
for the determination of the dispute under sec.13(3) and the government may refer it to the
labour court or tribunals.
The differences between the conciliation officer and the board of conciliation are:
the former is permanent government machinery of administrative nature and the latter is
ad-hoc and judicial in nature
47
ibid
48
See Rule 20 of ID (central) Rules,1957.
49
See Rule 22 of ID (central) Rules,1957.
50
See Rule 15 of ID (central) Rules,1957.
51
See Rule 21 of ID (central) Rules,1957.
52
See Rule 24 of ID (central) Rules,1957.
53
See Rule 29 of ID (central) Rules,1957.
54
See Rule 33 of ID (central) Rules,1957.
20
former can intervene in the disputes without any reference by the government but latter
can interfere only when it is referred by the appropriate government
The concept is borrowed from the British Industrial Courts Act, 1919. The government may
constitute a court of inquiry under sec.6(1) of ID Act for the purpose of enquiring into any
matter appearing to be connected with or relevant to the industrial dispute and submit a report to
the government on the basis of inquiry. Such an arrangement is made when the version or
contentions of the disputants differ, and the situation requires an investigation for the purpose of
finding out the truth. It consists of two or more independent members along with a chairman
under sec.6(2). The court has to inquire into matters referred to it by the appropriate government
and submit its report within 6 months from the commencement of the inquiry55. The report shall
be published within 30 days of its receipts.
The appropriate government under sec.7(1) may constitute one or more labour courts. It consists
of only one person to be appointed56 as a presiding officer of the labour court by the appropriate
government who
55
See Sec.14 of ID Act.
56
See Sec.7(2) of ID Act.
57
Inserted by 2010 amendment
21
is an officer of Indian Legal Service in Grade III with three years' experience in the
grade58
under 7(3) of the Act. He shall continue in office provided he is an independent person59 and has
not attained the age of sixty-five years or else he will be disqualified under sec.7-C. the
jurisdiction of the court commences by the reference of the dispute to it by the appropriate
government under sec.10. Once the labour court is seized of its jurisdiction of the term of order
of reference made to it, it cannot be extended by the act of the parties60.
The labour court has to adjudicate upon industrial disputes specified in second schedule of the
act which includes,
the propriety or legality of any order passed by an employer under Standing Orders
the application of interpretation of Standing Orders
Discharge or dismissal of workmen including re-instatement and such other reliefs
Withdrawal of any customary concession or privilege
Illegality or of strikes or lockouts
All matters other than those specified in third schedule
And perform such other functions assigned to it under ID Act which includes voluntary reference
sec.10(2), arbitration reference sec.10(A) (iii), approval of the action of discharge sec.33,
complaints by aggrieved employees sec.33A, application under sec.33-C (2) and reference of
awards and settlements under sec.36-A.
In Haryana state co-operative land development Bank v. Neelam61, where a typist appointed in
ad-hoc basis and terminated from her service after 17 months applied to labour court for relief
after 7 years from the termination. The labour court denied any relief to the typist and Supreme
Court upheld the decision stating that it is relevant to consider the time period. The appeals of the
labour courts generally lie to the High Court under Art.226/227.
58
ibid
59
See Sec.2(i) of ID Act, the concerned person should have no connection with the dispute referred.
60
See Working Journalists, Hindu v. The Hindu, (1961) 1 LLJ 282 (Mad).
61
See (2005) 1 LLJ 1153 (SC)
22
The appropriate government may constitute one or more Industrial Tribunals (sec.7A) and
National Industrial Tribunals (sec.7B) for the purpose of adjudication of the industrial disputes.
These sections are inserted by 1956 amendment. The Industrial tribunal consists of one person
who is or has been a judge of the High court or has been a District Judge or Additional District
Judge for a period not less than 3 years or has been a Deputy Chief Labour Commissioner
(Central) or Joint Commissioner of the State Labour Department , having a degree in law and at
least seven years' experience in the labour department after having acquired degree in law
including three years of experience as Conciliation Officer62 or is an officer of Indian Legal
Service in Grade III with three years' experience in the grade63 under sec.7A(3) and National
tribunal consists of a person who is or has been a judge of the High court under sec.7B(3). The
jurisdiction of the court commences from the reference of the dispute by the appropriate
government under sec.10(1) (d). The jurisdiction continues until it makes an award which is
enforceable. They have all the powers of a civil court and they may even appoint two assessors
to assist the proceedings64.
Previously, before 1956 amendment, the appeals from the labour courts lie to the state tribunal
and then to the tribunal at the centre which was governed by Industrial Disputes (Appellate
Tribunal) Act,1950. But after the incorporation of sec.7A and 7B, tribunals have not been given
any appellate jurisdiction under ID Act. The jurisdiction is confined only to the disputes that are
referred by the appropriate government. But exceptionally in some cases where the state
legislations allow for an appeal to the tribunal, it can be permitted. For instance, the appeal from
the Mumbai labour court goes to the Bombay industrial courts under sec.84 and 85 of the
Bombay Industrial relations Act,1946 and sec.42 of The Maharashtra Recognition of Trade
Unions and Prevention of Unfair Labour Practices Act, 1971. But nevertheless in such cases,
appeals before both the tribunal and courts are valid and if the appeal is done to both of the
62
Inserted by 2010 amendment
63
ibid
64
See Sec.7A (4) of ID Act
23
courts simultaneously, then the court where it was appealed first should be given preference.
Similar provisions are present in Uttar Pradesh and Madhya Pradesh also65.
In Lipton Ltd v. Workmen66, court held that the jurisdiction of the Tribunals depends on the fact
that the parties reside within the jurisdiction and the subject matter should substantially arise
from that area. The tribunals have the power to adjudicate matters specified in second and third
schedule and such other matters assigned to it67. Matters specified in 3rd schedule are:
Sec.15 of the Act requires the Labour courts and Tribunals to hold their proceedings
expeditiously and shall submit the award to the appropriate government within the prescribed
time in the order of reference or within the period mentioned in sec.10(2A). The procedure for
notices, summons, hearing, inspection are provided under Rules 9 to 30 of ID (Central)
Rules,1957 in which case the application of the code of civil procedure is relaxed to some extent.
And these adjudicatory bodies need not strictly follow the rule of evidence under Indian
Evidence Act68. The difference between the ordinary courts of law and these adjudicatory bodies
65
P.R.N.Sinha et al., Industrial Relations, Trade Unions, and Labour Legislation, 393 (4th Edition, 2015), Dorling
Kindersley (India) Pvt Ltd., Delhi.
66
See (1959) 1 LLJ 431 (SC)
67
See generally Dr.H.K.Saharay, Labour and Industrial law, 154(6th Edition, 2015) Universal law publishing co., New
Delhi.
68
See Union of India v. T.R.Verma, AIR 1957 SC 832
24
is that there are pre-existing laws with applicability in the relevant cases which is absent in the
latter69.
They are mostly Quasi-judicial in nature and are bound to follow the natural justice principles
except for the purposes of sec.193 and 228 of IPC and they are of civil nature except for the
purposes of sec.480 and 482 of Cr.P.C. The tribunals adopt the adversary system in contradiction
to the inquisitorial system.
In Graphite India Ltd. v. State of West Bengal70, the Enquiry officer relying only on the evidence
of one party made the respondent guilty of misconduct. The High Court held that the principles
of natural justice (audi-alteram partem) were not followed in the departmental enquiry and
charge was considered to be invalid.
The power of the labour courts and tribunals has been enlarged under sec.11A where the
authorities are empowered to decide the adequacy of punishment or can pass any order for re-
instatement. The appeal lies to High court or Supreme court as mentioned in the adjudication
paragraph (supra p.11)
Certain conditions have to be fulfilled for the dispute to be referred by the appropriate
government to the dispute settling authorities.
The management involved in the dispute should be an industry under sec.2(j) which
defines industry as any business, trade, undertaking, manufacture or calling of
employers and includes any calling, service, employment, handicraft or industrial
occupation or avocation of workmen.
This definition is inclusive in nature and not exhaustive. To be called as an industry at present, it
should comply with the three principles stated in Bangalore water supply case71.
69
See generally K.M.Pillai, Labour and Industrial Laws, 104(16th Edition,2015), Allahabad Law Agency, Faridabad
70
See 1979 Lab IC 1279 (Cal)
71
See (1978) I LLJ 349 (SC)
25
1. There is systematic activity with the cooperation between the employer and employees for the
production and distribution of goods and services calculated to satisfy the human wants and
wishes
3. The true focus is functional and the decisive test is the nature of the activity with special
emphasis on the employer-employee relationship.
But still many of the jurists were of the opinion that these principles need to be reexamined.
The dispute referred should come within the purview of industrial dispute under
sec.2(k) where the dispute should be between the employer and employer, employer and
workmen and between workmen and workmen connected with the employment or non-
employment or the terms of employment or with the conditions of labour, of any person.
The dispute between employer and a workman becomes industrial dispute only when the cause
of the workman is supported by the union or substantial number of workmen. Otherwise it
cannot be called as industrial dispute but those disputes come under sec.2A as individual dispute.
Where the dispute is connected with the discharge, dismissal or termination of service of a
workman, is deemed to be an industrial dispute despite the union or workmen not supporting his
cause. Such disputes can be referred to the conciliation officers and on the expiry of 45 days after
applying to conciliation officer, the workman shall make an application to the labour court or
tribunal72 directly but before the expiry of 3 years73 after the date of such discharge, dismissal or
termination of service. And the court or the tribunal should treat that application in the same way
as referred by the appropriate government and apply the provisions of ID Act. These privileges
were included in 2010 amendment.
72
See Sec.2A (2) of ID Act
73
See Sec.2A (3) of ID Act
26
adjudication process which renders quick remedy to the aggrieved one. This concept is
incorporated by 2010 amendment in ID Act.The government under sec.9C mandates any
industrial establishment employing 20 or more workmen to have one or more grievance redressal
committees to solve the industrial disputes under clause (1). The Grievance Redressal Committee
shall consist of equal number of members from the employer and the workmen74 and such
members cannot exceed 6 and for every two members there must be one woman member and
may be increased proportionately75. The chairperson of the Grievance Redressal Committee shall
be selected from the employer and from among the workmen alternatively on rotation basis
every year76. This setup will not affect the right of the workman to raise any industrial dispute77
and the committee completes its proceedings in 45 days78 and the appeal goes to the employer79.
There are several conventions and recommendations of ILO relating to the dispute settlement
namely,
Freedom of Association and Protection of the Right to Organise Convention, 1948 (No.
87)
Right to Organise and Collective Bargaining Convention, 1949 (No. 98)
Workers Representatives Convention,1971 (No. 135)
Voluntary Conciliation & Arbitration Recommendation, 1951 (No. 92)
The examination of grievances Recommendation,1967 (No.130)
Labour Relations (Public Service) Convention, 1978 (No. 151)
Labour Relations (Public Service) Recommendation, 1978 (No. 159)
Collective Bargaining Convention, 1981 (No. 154)
Collective Bargaining Recommendation,1981 (No. 163)
The Employment policy convention, 1964 (No.122)
74
See Sec.9C (2) of ID Act
75
See Sec.9C (4) of ID Act
76
See Sec.9C (3) of ID Act
77
See Sec.9C (5) of ID Act
78
See Sec.9C (6) of ID Act
79
See Sec.9C (7) of ID Act
27
But unfortunately none of the conventions are ratified by India except the last one and so they
dont have any effect and cannot be enforced in India. Convention no.122 which mandates the
setup of grievance mechanism is ratified by India the result of which sec.9C was inserted in ID
Act by 2010 amendment.
The reliefs provided by authorities are through settlement or awards. We have discussed about
the settlement by conciliation authorities. Award as defined under 2(b) an interim or a final
determination of any industrial dispute or any question relating to labour court or the tribunals
and also includes an arbitration award under sec.10A. It includes an interim award also. The
language of the award should be in accordance with the judicial interpretation80. The award must
be signed by the presiding officer or the arbitrators as the case may be under sec.16 else it would
be held void. Sec. 15 requires the award to be submitted to the appropriate government. Sec.17
(1) mandates the publication of the award by the appropriate government. The award may
operate from the date specified or where no date specified, the date on which it becomes
enforceable81. The tribunal has the power to decide the date on which the benefits can be granted.
The award becomes enforceable after the expiry of 30 days from the date of its publication. And
the award ceases to operate after the expiry of 1 year from the date of enforcement82 but this
period can be extended or curtailed by the government. The award can be executed as that of the
civil court under Order 21 of CPC.
There are several machineries which are not recommended by the statutes. They are
80
See Indian general navigation and railway co v. its workmen (supra), see also Pure drinks pvt ltd. vs., Kirat singh,
(1961) 2 LLJ 99
81
See Sec. 17A (4) of ID Act
82
See Sec.19(3) of ID Act
28
and 16 public sector companies) selected by the sub-committee of ILC , it was successfully
established only in 24 industries. By the end of 1974, it was setup in 80 establishments.
Tripartite consultative machinery: The Indian Labour conference (ILC), Industrial Committee
and Standing Labour committee (SLC) are tripartite in character consisting of representatives of
the central and state governments, employers and workers. These bodies are expected to
ensure equal representation of the employers and workers, and the representatives of the
government being equal to those of the employers and workers taken together just like
International Labour Conference and the Governing Body of ILO83.
The Second National Commission on labour recommended for the setting up of Industrial
Relations Commission (IRC) at the centre and the state under Art.323A and B which would
involve in conciliation, adjudication of the industrial disputes and recognition of bargaining
councils. IRC setup is on the permanent basis giving it a constitutional recognition unlike the
tribunals under the statutes. The appeal from IRCs would lie only to the Supreme Court. But so
far, there have been no efforts by the government for setting up such a tribunal. The difference
between the proposed IRC and the existing industrial tribunals is that the former is constitutional
body on permanent basis which would constitute with judicial and non-judicial members if
formed and the latter is the statutory body. And IRCs if constituted would have separate wings
that provides for arbitration, conciliation and adjudication.
83
Sunita balwani, Methods of Settling Industrial Disputes, scribd. (2015)
https://www.scribd.com/doc/27371147/Methods-of-Settling-Industrial-Disputes (last visited Sep.30, 2015,
(N.T.M.))
84
ibid
29
Chapter V:
5.1 Conclusion
The courts of this country should not be the places where resolution of disputes begins. They
should be the places where the disputes end after alternative methods of resolving disputes have
been considered and tried.
The Industrial Disputes Act,1947 emphasizes the need to address the industrial disputes and
settle them by peaceful means employing different methods of dispute settlement. In the arena of
increasing labour disputes, the Act seemingly protects the interests of the labour. The main idea
of providing two types of bodies- adjudicatory and non-adjudicatory is that the former can give
decisions which are binding on the parties and can be enforced in any court of law and the latter
cannot provide such binding and enforcing decisions. But still, we are lagging behind in the
industrial growth owing to the unsettled industrial disputes and ambiguous provisions of law.
The lack of adequate awareness among the working community can also be taken as one reason.
Hence the responsibility lies on the heads of the Judiciary to interpret the statutory provisions
properly without offending the objectives the Act and give out fair and just decisions; be it in the
favour of workmen or the employer.
5.2 Recommendations/suggestions:
4. Trade unions must be recognized by the statutes (with the strict pre-requisites to be
followed) and should be given a proper status so that the presence of more number of
trade unions in an establishment can be controlled. And importantly, trade unions should
be free from the influence of political parties.
5. Every establishment should mandatorily have its own dispute settlement machinery as a
part of its activity which should spread the awareness of the legal provisions among the
working community.
6. The proposal of Second National commission on labour for establishing an Industrial
Relations Commission(IRC) at the centre and the state should be considered once again
and the features of such a body may be incorporated in the existing tribunals.
5.3 Bibliography:
Books referred:
Dr.E.M.Rao, O.P.Malhotras The Law of Industrial Disputes, (7th Edition, 2015), Lexis
Nexis.
Dr.H.K.Saharay, Labour and Industrial laws, (6th Edition, 2015) Universal law
publishing co., New Delhi.
K.M.Pillai, Labour and Industrial Laws, (16th Edition,2015), Allahabad Law Agency,
Faridabad.
P.M.Radhakrishnaiah, Industrial Disputes Act,1947, (7th Edition,2013), Asia law house,
Hyderabad.
P.R.N.Sinha et al., Industrial Relations, Trade Unions, and Labour Legislation, (4th
Edition, 2015), Dorling Kindersley (India) Pvt Ltd., Delhi.
R. Ram Reddy, Industrial Relations in India: A Study of the Singareni Collieries, (1st
Edition, 1990), Mittal publications, New Delhi.
S.C.Srivastava, Industrial relations and labour laws, (6th Edition,2013), Vikas Publishing
house Pvt. Ltd, Noida.
Websites referred:
31