SUPREME COURT OF INDIA
I.D. DUA AND C.A. VAIDIALINGAM, JJ.
The Workmen of M/s. Firestone Tyre and Rubber Co. of India P. Ltd. Appellants
Versus
The Management and others, Respondents.
Civil Appeals Nos. 1461, 1995, 1996, 2386 of 1972, D/- 6-3-1973.
In Civil Appeal No. 1461 of 1972 :
In Civil Appeal No. 1995 of 1972:
The Dy. General Manager, Larson and Toubro Ltd., Appellant
Versus
Sheikh Ismail Mohamed, Respondent.
In Civil Appeal No. 1996 of 1972:
The Manager, Larsen and Toubro Ltd. Bombay, Appellant
Versus
K. P. Ganghare, Respondent.
In Civil Appeal No. 2386 of 1972:
M/s. Godfrey Phillips India Ltd., Appellant
Versus
Manik Vasudeo and others, Respondents.
Advocates appeared
For Applicant (in C. A. No. 1461) Miss Indra Jai Singh, Mr. A. D. Shastri and Mrs. Urmila Sr. Advocates; For Respondent No. 1 (in C. A. No. 1461) Mr. M. C. Setalvad Senior Advocate, Mr. Rameshwar Nath Advocate, 1229 of M/s. Rajinder Narain & Co. For Interveners (Mohindra & Mohindra) M/s. F. D. Damania, D. R. Nath, Miss Bhuvanesh Kumari, M/s. O. C. Mathur, Ravinder Narain & J. B. Dadachanji Advocate of M/s. J. B. Dadachanji, For Appellant in C. N. 1995 M/s. Mr. M. C. Setalvad Senior Advocate M/s. F. D. Damania, M. A. Gagrat, S. M. Patil and I. N. Shroff. For Interveners (Kamgar Sen In CA 1996) Mr. M. C. Bhandare, Senior Advocate Mr. P. H. Pareekh and Mrs. S. Bhandare.
Industrial Disputes Act – Section 11A - Industrial Disputes (Amendment) Act, 1971 – Section 3 and 33 - Industrial Employment (Standing Orders) Act, 1946 - Section 7 (3) (a) & (e) - Termination of employment - Industrial disputes - Section 11A was incorporated in Industrial Disputes Act, 1947 by Section 3 of the Industrial Disputes (Amendment) Act, 1971 Amendment Act passed by Parliament, received the assent of President - Sub-section (2) of Section 1 provided for its coming into force on such date as Central Government by notification in official gazette appoints - International Labour Organisation, in its recommendation concerning termination of employment at initiative of employer, adopted has recommended that a worker aggrieved by the termination of his employment should be entitled to appeal against termination among others, to a neutral body such as an arbitrator, a Court, an arbitration committee or a similar body and that neutral body concerned should be empowered to examine reasons given in termination of employment and the other circumstances relating to case and to render a decision on the justification of termination - Whether section applies to industrial disputes which have already been referred to for adjudication and were pending – Held, court have already referred to proviso to Section 11A which states in any proceeding under this section - A proceeding under section can only be after section has come into force - Further section itself was brought into force sometime after Amendment Act was passed - These circumstances as well as the scheme of section and particularly wording of Proviso indicate that Section 11A does not apply to disputes which had been referred - Section applies only to disputes which are referred for adjudication - Labour Court has also expressed some views on construction to be placed on Section 11A - Part of the views expressed therein is correct; but rest are wrong - To the extent that the decision of Labour Court in three orders are contrary to court decision on both points, they are set aside and appeals allowed to that extent - Tribunal and Labour Courts concerned in all these appeals, will proceed with the adjudication of disputes in accordance with views expressed in this judgment - There will be (no) order as to costs in these appeals - Appeals decided accordingly.
Judgment
VAIDIALINGAM, J. :- In these appeals, by special leave, two common questions arise for consideration :
(1) Proper interpretation of S. 11A of the Industrial Disputes Act; and
(2) Whether the above section applies to industrial disputes which have already been referred to for adjudication and were pending as on 15-12-1971.
2. Section 11A was incorporated in the Industrial Disputes Act, 1947 (hereinafter referred to as the Act) by Section 3 of the Industrial Disputes (Amendment) Act, 1971 (hereinafter referred to as the Amendment Act). The Amendment Act passed by Parliament, received the assent of the President on December 8, 1971. Sub-section (2) of Section 1 provided for its coming into force on such date as the Central Government by notification in the official gazette appoints. The Central Government by notification No. F. S. 110-18/- 1/71-LR, I dated 14-12-1971 appointed the 15th day of December, 1971, as the date on which the said Act would come into force. Accordingly, the Amendment Act came into force with effect from December 15, 1971. The Amendment Act introduced various amendments to the Act. In particular by Section 3, it inserted the new Section 11A in the Act. The new Section 11-A so inserted runs as follows :
"11-A. Powers of Labour Courts, Tribunals and National Tribunals to give appropriate relief in case of discharge or dismissal of workmen.- Where an industrial dispute relating to the discharge or dismissal of a workmen has been referred to a Labour Court Tribunal or National Tribunal for adjudication and in the course of the adjudication proceedings, the Labour Court, Tribunal or National Tribunal, as the case may be, is satisfied that the order of dismissal or discharge was not justified, it may, by its award, set aside the order of discharge or dismissal and direct reinstatement of the workmen on such terms and conditions, if any, as it thinks fit, or give such other relief to the workmen including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may require: Provided that in any proceeding under this section the Labour Court, Tribunal or National Tribunal, as the case may be, shall rely on on the materials on record and shall not take any fresh evidence in relation to the matter."
3. Regarding Section 11A, in the Statement of Objects and Reasons it is stated as follows :-
"In Indian Iron and Steel Co. Ltd. v. Their Workmen, (AIR 1958 S.C. 130 at p. 138), the SC, while considering the Tribunal s power to interfere with the management s decision to dismiss, discharge or terminate the services of a workman, has observed that in case of dismissal on misconduct, the Tribunal does not act as a Court of appeal and substitute its own judgment for that of the management and that the Tribunal will interfere only when there is want of good faith, victimisation, unfair labour practice, etc. on the part of the management.
The International Labour Organisation, in its recommendation (No. 119) concerning termination of employment at the initiative of the employer, adopted in June 1963, has recommended that a worker aggrieved by the termination of his employment should be entitled to appeal against the termination among others, to a neutral body such as an arbitrator, a Court, an arbitration committee or a similar body and that the neutral body concerned should be empowered to examine the reasons given in the termination of employment and the other circumstances relating to the case and to render a decision on the justification of the termination. The International Labour Organization has further recommended that the neutral body should be empowered (if it finds that the termination of employment was unjustified) to order that the worker concerned unless reinstated with unpaid wages, should be paid adequate compensation or afforded some other relief.
In accordance with these recommendations, it is considered that the Tribunal s power in an adjudication proceeding relati
REFERRED TO : Punjab National Bank Ltd. v. workmen
Delhi Cloth and General Mills Co. Ltd. v. Ludh Budh Singh
State Bank of India v. R.K.Jain
Gurkapatti Veeraya v. N.S.Choudhary
Indian Iran of Steel Co. Ltd. v. Workman
Shah Bhojraj Kuverji Oil Mills and Ginning-Factory v Subbhash Chandra Yograj Sinha
Maharashtra State v. Vishnu Ramchandra
Ritz Theatre (P) Ltd. v. Workmen
Workmen v. Matipur Sugar Factory
Workmen v. Motipur Sugar Factory Ltd.
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