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1965 Supreme(SC) 89

SUPREME COURT OF INDIA
P.B. GAJENDRAGADKAR, C.J.I., K.N. WANCHOO AND V. RAMASWAMI, JJ.
Tata Iron and Steel Co. Ltd., Appellant
Versus
D. R. Singh, Respondent.
Civil Appeal No. 423 of 1964.
Advocates appeared
Solicitor-General, for Appellant; M/s. Jitendra Sharma and Janardan Sharma, Advocate and Shroff. Advocate, with him, for Respondent.

Important Points

An employer may file an application under Section 33 of the Industrial Disputes Act, 1947, as a precautionary measure without prejudice to the contention that the section does not apply, and the Tribunal must consider such a preliminary objection.

Subject

Labour Law - Industrial Disputes

Act Referred

Headnote

(A) Industrial Disputes Act, 1947 - Section 33(1) and 33(2) - Application for approval of action against employee - Preliminary point regarding applicability of Section 33 - Employer may file application as a precautionary measure without prejudice to the contention that the section does not apply - It is illogical to suggest that an employer must decide whether the section applies and, if they believe it does not, forgo the application, or if they apply, be barred from arguing its inapplicability. (Para 2)

Facts of the case:
An employer filed an application for approval of proposed action against an employee while certain industrial disputes were pending. The employer raised a preliminary objection that the employee was not a workman concerned in the pending disputes and therefore Section 33 did not apply. The Tribunal refused to entertain this preliminary plea, stating the employer should withdraw the application if they believed the section was inapplicable, and subsequently dismissed the application on its merits.

Findings of Court:
The Tribunal was in error in not considering the preliminary point. An employer is justified in refusing to take the risk of deciding the applicability of the section for itself and may apply without prejudice to its legal position.

Issues: Whether a Tribunal is justified in refusing to consider a preliminary objection regarding the applicability of Section 33 of the Industrial Disputes Act, 1947, when an employer has filed an application as a precautionary measure.

Ratio Decidendi: Where judicial decisions differ on the construction of the phrase "workmen concerned in such dispute," it is reasonable for an employer to seek approval under Section 33 while maintaining that the section may not apply. Forcing an employer to choose between risking a contravention of the Act or waiving the right to argue inapplicability is illogical and unsatisfactory.

Result: Appeal dismissed.

Legal Category Hierarchy

  • labour and industrial law
    • industrial disputes act, 1947
      • section 33
        • conditions of service during pendency of proceedings (Para 1, 2)

Advocates:
JANARDAN SHARMA, JITENDRA SHARMA, Shroff,

Table of Contents

1. Application for approval under Section 33(2) of the Industrial Disputes Act, 1947, to take action against an employee during pending industrial disputes. (Para 1 )

2. Whether an employer can raise a preliminary objection that Section 33 is inapplicable because the employee is not a workman concerned in the pending disputes. (Para 1 )

3. Employers may apply under Section 33 without prejudice to the contention that the section is inapplicable, avoiding risks arising from inconsistent judicial interpretations of the statute. (Para 2 )

4. A tribunal must consider a preliminary objection regarding the applicability of Section 33 based on whether the workman is concerned in the pending industrial disputes. (Para 2 )

5. Appeal dismissed without remanding the matter to the tribunal due to the lapse of time, despite reversing the finding on the preliminary point. (Para 3 , 4 )

6. Can an employer apply for approval under Section 33 of the Industrial Disputes Act while simultaneously arguing that the section does not apply?

Yes. An employer is justified in making an application under Section 33 without prejudice to the case that the section does not apply, especially to avoid the risk of contravening the Act. (Para 2 )

7. How should the phrase workman concerned in such dispute under Section 33 of the Industrial Disputes Act be construed?

The Supreme Court has approved a broader construction of the words workmen concerned in such dispute to determine the applicability of Section 33. (Para 2 )

8. Is a tribunal required to decide a preliminary point on the applicability of Section 33 before dealing with the merits of an application?

Yes. If an employer contends that the workman is not concerned with the main industrial disputes, the tribunal should consider this preliminary point before deciding on the merits. (Para 2 , 3 )

Judgement

GAJENDRAGADKAR, C.J.I. : This appeal raises a very short point for our decision. The appellant, the Tata Iron and Steel Co. Ltd., Jamadoba, filed an application under S. 33 (20 (b) of the Industrial Disputes Act, 1947 (No. 14 of 1947) (hereinafter called "the Act"), before the Central Government Industrial Tribunal, Dhanbad (hereinafter called "the Tribunal"), asking for its approval of the action which it proposed to take against its employee, the respondent D. R. Singh. This application was made by the appellant, because certain industrial disputes were pending at the relevant time between the appellant and its employees under References Nos. 45, 56, 63 and 65 of 1961. This application was opposed by the respondent who filed his written statement. At the hearing of the application, the appellant urged before the Tribunal that though it had made the present application as a matter of abundant caution, its case was that it was not necessary to apply under S. 33 (2), because the respondent was not concerned with the industrial disputes which were pending between the appellant and its employees in the different References to which we have already referred. In other words, the appellant wanted the Tribunal to consider the question as to whether the respondent was a workman concerned in the relevant industrial disputes at all, before dealing with the merits of its application. The appellant s case was that one of the conditions precedent for the applicability of S. 33 is that the workman against whom the employer seeks to take action falling under S. 33 (2) must be a workman concerned in the main industrial disputes; if he is not so concerned, S. 33 (2) will not apply. In order to avoid any complications and with a view to save itself from the charge that it had contravened S. 33 of the Act, the appellant had no doubt made an application as a precautionary measure; that is why it wanted the Tribunal to consider its contention that S. 33 did not apply as a preliminary point. The Tribunal took the view that the appellant could not raise such a contention. It held that if the appellant thought that S. 33 did not apply, it should withdraw the application and take the consequences. On that view, it refused to entertain the plea raised by the appellant and proceeded to deal with the merits of the application. In the result, the Tribunal was not satisfied that a prima facie case had been made out for the dismissal of the respondent, and so, approval was not accorded to the action which the appellant wanted to take against the respondent and its application was accordingly dismissed. It is against this order that the appellant has come to this Court by special leave.

2. The learned Solicitor-General for the appellant contends, and we think rightly, that the Tribunal was in error in not dealing with the preliminary point as to whether S. 33 applied to the facts of this case. It is plain that in a situation like the present, even if the appellant took the view that the workman against whom it was taking action was not a workman concerned with the main industrial disputes, it would be justified in refusing to take the risk of deciding the said point for itself. It would be legitimate for an employer like the appellant to make an application under S. 33 without prejudice to his case that S. 33 did not apply. The question about the construction of the words "a workman concerned in such dispute" which occur in S. 33 (1) and (2) has been the subject-matter of judicial decisions and some-what inconsistent views had been taken by different High Courts on this point. Some High Courts construed the said words in a narrow way, vide New Jahangir Vakil Mills Ltd., Bhavnagar v. N. L. Vyas, 1958-2 Lab LJ 573, while others put a broader construction on them, vide Eastern Plywood Manufacturing Co. Ltd. v. Eastern Plywood Manufacturing Workers Union , 1952-1 Lab LJ 628 (LATI-Cal); Newtone Studios Ltd. v. T. R. Ethirajulu, 1958-1 Lab LJ 63 and Andhra




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