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2007 Supreme(SC) 522

Supreme Court Of India
Director, Food and Supplies, Punjab - Appellant
Versus
Gurmit Singh - Respondent
Decided On : 04/17/2007

The existence of an industrial dispute is a jurisdictional fact necessary for a valid reference under the Industrial Disputes Act, 1947. Pleas regarding the non-applicability of the Act to the employer must be adjudicated, and stale claims may be challenged via writ petitions.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10 - Industrial Employment (Standing Orders) Act, 1946 - Termination of services - Jurisdiction of Labour Court - Existence of industrial dispute as a jurisdictional fact - If a plea regarding the non-applicability of the Act is raised, it must be adjudicated - The existence of an industrial dispute is a jurisdictional factor; its absence results in the invalidation of the reference - While the Labour Court cannot invalidate a reference on the ground of delay, a stale claim may be challenged via writ petition on the ground that no industrial dispute exists - Long delay in filing a claim may lead to the conclusion that the dispute ceased to exist - Such delay can also be considered by the adjudicating authority while moulding reliefs.

(B) Writ Jurisdiction - The High Court has jurisdiction to entertain a writ petition when there is an allegation that there is no industrial dispute which could be the subject matter of reference for adjudication to the Tribunal under Section 10 of the Industrial Disputes Act, 1947.

Facts of the case:
A daily wage worker whose services were terminated on the grounds of being surplus challenged the termination. The employer contended that the worker belonged to a category of daily wage employees whose services end with each working day and that the employer does not fall under the definition of an industry, rendering the Industrial Disputes Act, 1947 inapplicable. The Labour Court ordered reinstatement based on the worker completing 240 days of service, ignoring the plea of non-applicability of the Act and the significant delay of nine years in initiating the claim.

Findings of Court:
The order of the Labour Court and the High Court cannot be sustained as they failed to decide the jurisdictional fact regarding the applicability of the Act to the employer and did not properly consider the impact of the long delay in the claim.

Issues: Whether the existence of an industrial dispute is a jurisdictional factor and whether the Labour Court's failure to adjudicate upon the non-applicability of the Industrial Disputes Act, 1947 and the belated claim justified the setting aside of the reinstatement order.

Ratio Decidendi: The existence of an industrial dispute is a jurisdictional factor; without it, a reference under the Industrial Disputes Act, 1947 is invalid. While the Labour Court cannot strike down a reference due to delay, the High Court can intervene if a stale claim implies no dispute exists. A specific plea regarding the non-applicability of the Act to the employer must be decided by the adjudicating authority.

Result: Appeals allowed.

Legal Category Hierarchy

  • labour and industrial law
    • industrial disputes act, 1947
      • reference under section 10
        • jurisdictional fact
    • daily wage worker
  • practice and procedure
    • writ jurisdiction
      • high court
    • delay and laches

JUDGMENT:

(With Civil Appeals Nos. 6766/2004 and 2608/2004)

Dr. ARIJIT PASAYAT, J.

Challenge in these appeals is to the judgment of the Division Bench of the Punjab and Haryana High Court dismissing the writ petitions filed by the present appellants. Challenge in the writ petitions was to the order passed by the Presiding Officer, Labour Court, Patiala (in short the Labour Court). Background facts in a nutshell are as follows:

The dispute in three appeals being common, factual position in Civil Appeal No. 7637 of 2004 is noted.

Civil Appeal No.7637/2004


Reference was made to the Labour Court under Section 10(1)(c) of the Industrial Disputes Act, 1947 (in short the ID Act) of the following purported dispute:

"Whether termination of services of Gurmit Singh-Workman is justified and in order? If

not, to what relief is he entitled?"

The case of the workman was that he joined the present appellants as Chowkidar and worked therein from 1.6.1985 to 24.8.1986. His services were terminated on 25.8.1986 by the Management without service of any notice, holding of any enquiry or payment of any compensation. He was getting Rs.400/-p.m. at that time as wages. He is covered under the Industrial Employment (Standing Orders) Act, 1946 (in short the Standing Orders Act). The Management did not comply with the principles of natural justice while terminating his services. The notice of reference was given to the present appellants. It was stated in the written statement inter alia that the claimant was working as Chowkidar on daily wages. His services ended with the end of each working day. The claim of the claimant that he had worked from 1.6.1986 to 24.8.1986 is not correct. The services of the claimant were dispensed with as he was surplus. No notice or enquiry or compensation was required as the claimant was a worker on daily wages. He was working in the department on daily wages as fixed by the Deputy Commissioner, Sangrur from time to time. It was also pleaded in the preliminary objections that there are three categories of Chowkidars in the Food and Supplies Department to safeguard the food grains stocks. The first category consists of regular Chowkidars according to the sanctioned strength drawing regular pay scale. The second category consists of temporary Chowkidars. They are recruited through employment exchange and draw emoluments equal to the regular Chowkidars. The third category consists of daily wages Chowkidars who draw fixed daily wage from time to time fixed by the department of concerned districts. The services of the Chowkidars on daily wages end with the end of each working day. Their strength increased/decreased with the increase/decrease of the food grains stocks. The services of the daily wages Chowkidars were dispensed with on becoming surplus. The workman in the present case belonged to the third category i.e. daily wages Chowkidar. His services were dispensed with on becoming surplus alongwith others. It was also stated that the present appellants cannot be treated as an industry and the ID Act has no application. The Labour Court relied on certain documents and concluded that the workman had worked for more than 240 days. Unfortunately, the Labour Court did not record any finding about the non applicability of the ID Act. It was noted that the workman was gainfully employed after the termination of his services.

Accordingly, direction was given for re-instatement with continuity of service. This finding was recorded primarily on the ground that he had worked for more than 240 days. No finding was recorded on the plea taken by the present appellants that the claim was made after 9 years without explaining the belated approach.

The High Court dismissed the writ petitions filed by the present appellants on the ground that even if there was belated approach, the Court could not decline to grant relief but it could mould the relief.

In support of the appeals, learned counsel for the appellants submitted that both the trial court



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