SUPREME COURT OF INDIA
K. JAGANNATHA SHETTY AND A.M. AHMADI, JJ.
Karnal Leather Karamchari Sanghatan (Regd.), Appellant
Versus
Liberty Footwear Company (Regd.) and others, Respondents
Civil Appeal No. 1765 of 1989, D/-31-8-1989.
Advocates appeared :
Mr. A. K. Goel, Advocate, for Appellant; Mr. B. D. Agrawal, Sr. Advocate, Mr. V. Ram Swarup, Mr. S. K. Bagga, Mr. S. R. Srivastava and Ms. Anu Mohala, Advocates with him, for Respondents.
Industrial Disputes Act, 1947 – Section 10, 17, 18, 19, 21, 29, 30, 33 and 36 – Management has illegally terminated - Liberty Footwear Company - Respondent-1 is a registered partnership firm carrying on its trading activities in leather footwears at Karnal and some other places and style of Liberty Footwear Company its head office at Karnal in State of Haryana – It had a serious dispute with workers union complained that management has illegally terminated more than respondent-1 denied that claim and asserted that persons whose services were alleged to have been terminated were not its employees at material time dispute however remained unsettled and workers went on strike which took a violent turn management had to lay off certain workers and that added fuel to fire agitation of workers before factory premises created law and order problem attracting police to intervene – Held, State Government when it referred dispute alternative remedies to settle an industrial dispute industrial dispute can either be referred to an Industrial Tribunal for adjudication under Section 10, or parties can enter into an arbitration agreement and refer it to an arbitrator once parties have chosen their remedy – Government cannot refer that dispute for adjudication said reference made by Government cannot therefore, be sustained – State Government shall publish condition arbitration agreement in Government Gazette within four weeks from today agreement containing condition stands referred to Industrial Tribunal, Haryana at Ambala for passing arbitration award in accordance with law reference made Tribunal is quashed and Management shall withdraw aforesaid Letters Patent Appeal and Writ Petition pending in High Court within there weeks from today fail in which High Court will dispose them of as having become infructuous – Order accordingly.
Judgment
K. JAGANNATHA SHETTY, J.:- This appeal by leave from a decision of the single Judge of Punjab & Haryana High Court raises a very short but important question of law relating to the validity of an arbitral award made before publishing the arbitration agreement under the Industrial Disputes Act, 1947 (The Act).
2. The facts which give rise to this appeal may briefly be stated thus :
The respondent-1 is a registered partnership firm carrying on its trading activities in leather footwears at Karnal and some other places under the name and style of Liberty Footwear Company. It has its head office at Karnal in the State of Haryana. It had a serious dispute with the workers. The workers union complained that the management has illegally terminated more than 200 workers. The respondent-1 denied that claim and asserted that the persons whose services were alleged to have been terminated were not its employees at the material time. This dispute however, remained unsettled and the workers went on strike which took a violent turn. The management had to lay off certain workers and that added fuel to the fire. The agitation of the workers before the factory premises created law and order problem attracting the police to intervene. The Labour Commissioner and other top officials of the District arrived and they initiated conciliation proceedings. The then Labour Minister and the Public Health Minister of the State Government were also alerted. They also came and extended their good offices to bring about a settlement. They succeeded in their efforts. On March 31, 1988, the parties entered into an agreement containing the terms of settlement of their dispute. On behalf 250 of the management, the agreement was signed by respondents 1, 7 and 8. On behalf of the workers, it was signed by the President and Secretary of the workers union. It was mutually agreed that a committee consisting of five persons, two from the management and two from the union with the Deputy Commissioner, Karnal as the President should be constituted. They would be the arbitrators to determine the said dispute.
3. The committee of arbitrators was accordingly constituted. The Committee gave its award on April 29, 1988 and May 11, 1988 directing the management to reinstate in all 159 workmen. This was the beginning of .another dispute which led to frustrated litigation. The management did not reinstate the workers. It challenged the validity of the award by way of writ petition in the High Court. The award was challenged in the first place on procedural irregularity committed by the Committee of arbitrators. It was, inter alia, contended that the Deputy Commissioner did not participate in the entire proceedings and during his absence, the Administrator Municipal Committee, Karnal held the enquiry. It was also alleged that the Committee did not afford opportunity to the management to produce evidence. Secondly, it was claimed that the arbitration agreement was not published in the official Gazette as required under sub-sec. (3) of Sec. 10A of the Act and the award made without such publication would be invalid. The learned single Judge of the High Court who considered the matter did not examine all the contentions urged by the management. He, however, accepted the writ petition only on the effect of non-publication of the agreement in the. Gazette. He expressed the view that the requirement of the sub-sec. (3) is mandatory and its non-compliance would vitiate the award. With this conclusion he quashed the award and directed the State Government to publish the agreement in the Gazette. He also directed the Committee to determine the dispute afresh and pass an award after publication of the agreement.
4. The employees union without preferring Letters Patent Appeal before the High Court against the judgment of learned single, Judge has directly appealed to this Court by obtaining special leave. Ordinarily, we would have revoked the leave since the party has not exhausted th
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