SUPREME COURT OF INDIA
Y.V. CHANDRACHUD, CJI., A.P. SEN, J.
Grindlays Bank Ltd., Appellant
Versus
The Central Government Industrial Tribunal and others, Respondents.
Civil Appeal No 2355 of 1979, D/- 12-12-1980.
Advocates appeared
Mr.G. B. Pai, Sr.Advocate, Mrs.Rashmi Dhariwal, Miss Bina Gupta and Mr.Praveen Kumar and Mr.J. R. Das, Advocates, for Appellant; Mr.Amlan Ghosh, Advocate, for Respondents Nos.3-4,
Industrial Disputes-Act, 1947 - Section 7-A, 17, 20(3), 17-A, 11(1), (3), 38 and 10 - Code of Civil Procedure, 1908 – Order XVII, Rule 1, 2, 3, O. IX, R. 13 - Industrial Dispute - Peremptory Hearing - Absence of Party at Hearing - Government of India, Ministry of Labour by an order referred an industrial dispute existing between employers in relation to Grindlays Bank Ltd., and their workmen, to Central Government Industrial Tribunal in exercise of its powers for adjudication - By a notice Tribunal fixed peremptory hearing of reference but hearing was adjourned from time to time on one ground or other - Eventually, hearing of reference was fixed - Counsel appearing on behalf of respondent No. 3, Commercial Establishments Employees Association, representing respondents Nos. 5 to 17, sought an adjournment on ground that General Secretary of Association had suffered a bereavement as his father had died and, therefore, he had to leave to perform shradhha ceremony falling - Whether or not there was sufficient cause for absence of a party at hearing - Whether a party must be heard before it is proceeded against is one of procedure and not of power in sense in which words are used in S. 11 – Held, Answer to question is, therefore, to be found in sub-s. (1) of S. 11 and not in sub-s. (3) of S. 11 - Furthermore, different considerations arise on review - Expression review is used in two distinct senses, namely, (1) a procedural review which is either inherent or implied in a court or Tribunal to set aside a palpably erroneous order passed under a misapprehension by it - A review on merits when error sought to be corrected is one of law and is apparent on face of record - It is in latter sense that Court in Narshi Thakershis case held that no review lies on merits unless a statute specifically provides for it, obviously when a review is sought due to a procedural defect, inadvertent error committed by Tribunal must be corrected ex debito justitiae to prevent abuse of its process, and such power inheres in every Court or Tribunal - In instant case, Tribunal made ex parte award - That award was published by Central Government in Gazette of India - Application for setting aside ex parte award was filed by respondent No. 3, acting on behalf of respondents Nos. 5 to 17 before expiry of 30 days of its publication and was, therefore, rightly entertained by Tribunal - It had jurisdiction to entertain it and decide it on merits - It was, however, urged that date on which impugned order was passed, Tribunal had in any event become functus officio – Court cannot accede to this argument - Jurisdiction of Tribunal had to be seen on date of application made to it and not date on which it passed impugned order - There is no finality attached to an ex parte award because it is always subject to its being set aside on sufficient cause being shown - Tribunal had power to deal with an application properly made before it for setting aside ex parte award and pass suitable orders - Appeal dismissed.
Judgment
SEN, J.:- This is an appeal by special leave from a judgment of the Calcutta High Court, by which it refRamed from interfering with an order of the Central Government Industrial Tribunal, Calcutta, constituted under S. 7-A of the Industrial Disputes-Act, 1947, setting aside an ex parte award made by it
2. The facts giving rise to the appeal are these: The Government of India, Ministry of Labour by an order dated July 26, 1975 referred an industrial dispute existing between the employers in relation to the Grindlays Bank Ltd., Calcutta and their workmen, to the Central Government Industrial Tribunal in exercise of its powers under S. 10 of the Industrial Disputes Act, 1947 for adjudication. By a notice dated March 6, 1976 the Tribunal fixed peremptory hearing of the reference for May 28, 1976, but the hearing was adjourned from time to time on one ground or other. Eventually, the hearing of the reference was fixed for December 9, 1976. On December 9, 1976 counsel appearing on behalf of respondent No. 3, the Commercial Establishments Employees Association, representing respondents Nos. 5 to 17, sought an adjournment on the ground that the General Secretary of the Association had suffered a bereavement as his father had died on November 25, 1976, and, therefore, he had to leave to perform the shradhha ceremony falling on December 9, 1976. In support of his prayer for adjournment, the counsel produced a telegram, but the Tribunal refused to grant any further adjournment and proceeded to make an ex parte award. On the basis of the statement recorded by the manager of the appellant, the Tribunal held that the respondents Nos. 5 to 17 were employed as drivers by the officers of the appellant and were not the employees by the appellant and, therefore, they were not entitled to the benefits enjoyed by the drivers employed by the appellant. On January 19, 1977, respondent No. 3, acting for respondents Nos. 5 to 17 applied for setting aside the ex parte award on the ground that they were prevented by sufficient cause from appearing when the reference was called on for hearing on December 9, 1976. The Tribunal by its order dated April 12, 1977 set aside the ex parte award on being satisfied that there was sufficient cause within the meaning of O. IX, R. 13 of the Code of Civil Procedure, 1908. The appellant challenged the order passed by the Tribunal setting aside the ex parte award but the High Court declined to interfere.
3. Two questions arise in the appeal, namely, (1) whether the Tribunal had any jurisdiction to set aside the ex parte award, particularly when it was based on evidence? and (2) whether the Tribunal became functus officio on the expiry of 30 days from the date of publication of the ex parte award under S. 17, by reason of sub-sec. (3) of S. 20 and, therefore, had no jurisdiction to set aside the award and the Central Government alone had the power under sub-sec. (1) of S. 17-A to set it aside.
4. It is contended that neither the Act nor the rules framed thereunder confer any powers upon the Tribunal to set aside an ex parte award. It is urged that the award although ex parte, was an adjudication on merits as it was based on the evidence led by the appellant, and, therefore, the application made by respondent No. 3 was in reality an application for review and not a mere application for setting aside an ex parte award. A distinction is sought to be drawn between an application for review and an application for setting aside an ex parte award based on evidence. The contention is that if there is no evidence led before the Tribunal, there may be power to set aside an ex parte award, but if the award is based on evidence, the setting aside of the award cannot but virtually amount to a review.
5. In dealing with these contentions, it must be borne in mind that the Industrial Disputes Act, 1947 is a piece of legislation calculated to ensure social justice to both employers and the employees and advance progress of industry
distinguished : Patel Narshi Thakershi v. Pradyumansinghji Arjunsinghji
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