SUPREME COURT OF INDIA
H.R. KHANNA, V.R. KRISHNA IYER AND P.K. GOSWAMI, JJ.
Monogram Mills Ltd., etc. etc., Appellants
Versus
The State of Gujarat, Respondent.
Civil Appeals Nos. 600-601; 1699-1714 and 877-878 of 1975
Decided on 7-5-1976. 2178
Advocates appeared
Mr. F. S. Nariman, Sr. Advocate, (Mr. K. S. Nanavati, Advocate, Mr. P. C. Bhartari, Advocates Advocate for M/s. J. B. Dadachanji and Co.,Advocates with him) (In C. A. No. 600 of 1975); Mr. K. S. nanavati Advocate and Mr. P. C. Bhartari, Advocates (Inand C. A. No. 601 of 1975 and C. Nos. 1700-1714 of 1975); Mr. V. M. Tarkunde, Sr. Advocate (Mr. K. S. Nanavati, Advocate and Mr. P. C. Bhartari, Advocate, for M/s. J. B. Dadachanji and Co., Advocates with him) (In C. A. No. 1699 of 1975); Mr. V. N. Ganpule, Advocate (In C. A. 877-878/75), for Appellants; Mr. M. C. Bhandare, Sr. Advocate and Mr. M. N. Shroff, Advocate with him (In C. A. Nos. 600-601 of 1975 and C. A. Nos. 1699-1714 of 1975 and C. A. Nos. 877 to 878 of 1975), for Respondent.
-held, the object is also democratisation of industrial millieu and ensure egalitarianism. If the impugned Act in pith and substance is covered by subject falling within the legislative competence of the State legislature mere incidental encroachment on subject matter in entries in Union List, would not affect the competence of State legislature to pass such law.
JUDGMENT
H. R. KHANNA, J :— This judgment would dispose of civil appeals Nos. 600, 601, 877, 878 and 1699 to 1714 of 1975 which have been filed by special leave against the judgment of Gujarat High Court dismissing petitions under Article 226 of the Constitution of India filed by the appellants. The appellant in those petitions assailed the validity of Sections 53A and 53B of the Bombay Industrial Relations Act, 1946 (Bombay Act No. 1 of 1947) (hereinafter referred to as the principal Act). These sections along with some other provisions were inserted in the principal Act by the Bombay Industrial Relations and Industrial Disputes (Gujarat Amendment) Act, 1972 (Gujarat Act No. 21 of 1972). The appellants also challenged the validity of the rules which were added to the Bombay Industrial Relation (Gujarat) Rules, 1961 as per notification dated June 4, 1973. In addition to that, the appellants challenged the validity of notification dated December 17, 1973.
2. The principal Act was enacted to regulate the relations of employers and employees, to make provisions for settlement of industrial disputes and certain other purposes. In 1956 the industrial policy resolution of the Government of India stated inter alia that in a socialist democracy labour is a partner in the common task of development and must participate in it with enthusiasm. Emphasis was laid upon joint consultation of workers and technicians and for associating progressively labour in the management of the industry. Stress was again laid on joint management councils at the tripartite conference held in July 1957. Representatives of labour, management and Government were present at that conference. There was, however, no statutory provision for joint management councils and whatever was down, was on a voluntary basis. Section 53A and 53B were inserted in the principal Act by Gujarat Act 21 of 1972. The two sections reads as under :
"53A. (1) If in respect of any industry, the State Government is of opinion that it is desirable in public interest to take action under this section, it may, in the case of all undertakings or any class of undertakings in such industry, in which five hundred or more employees are employed or have been employed on any day in the preceding twelve months by general or special order require the employer to constitute in the prescribed manner and within the prescribed time limit a Joint Management Council, consisting of such number of members as may be prescribed, comprised of representatives of employers and employees engaged in the undertaking, so however that the number of representatives of employees on the Council shall not less than the number of representatives of the employers. Notwithstanding anything contained in this Act, the representatives of the employees on the Council shall be elected in the prescribed manner by the employees engaged in the undertaking from amongst themselves :
Provided that a list of industries in respect of which no order is issued under this sub-section shall be laid by the State Government before the State Legislature within thirty days from the commencement of its first Session of each year.
(2) One of the members of the Council shall be appointed as Chairman in accordance with the rules made in this behalf.
53B. (1) The Council shall be charged with the general duty to promote and assist in the management of the undertaking in a more efficient orderly and economical manner, and for that purpose and without prejudice to the generality of the foregoing provision, it shall be the duty of the Council -
(a) to promote cordial relations between the employer and employees;
(b) to build up understanding and trust between them;
(c) to promote measures which lead to substantial increase in productivity;
(d) to secure better administration of welfare measures and adequate safety measures;
(e) to train the employees in understanding the responsibilities of the Management of the undertaking and in sharing such responsibilities to
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