SUPREME COURT OF INDIA
Abhay S. Oka, Augustine George Masih, JJ.
Yugal Sikri & Ors. – Appellants
Versus
State Of U.P. & Anr. – Respondents
Criminal Appeal No(s). 3324 of 2024 (Arising Out Of Special Leave Petition (Crl.) No.4965 of 2023)
Decided On : 30-07-2024
Industrial Disputes Act, 1947 – Section 29 read with Sections 32 and 34 – Code of Criminal Procedure, 1973 – Sections 200 and 482 [Bharatiya Nagarik Suraksha Sanhita, 2023 – Sections 223 and 528] – Breach of agreement – Cognizance of offence – Section 29 is applicable when any person commits a breach of any term of any settlement or award binding on him under ID Act – In complaint alleging commission of an offence punishable under Section 29 of ID Act, there must be a specific averment regarding existence of a settlement or award binding on accused under ID Act and how same has been breached – Second respondent has not been able to place on record, along with complaint, any written settlement within meaning of Section 2(p) of ID Act between parties which is binding under ID Act – It is not even the case made out in complaint that there is any breach of any award by appellants – Magistrate could not have issued process for offence punishable under Section 29 of ID Act based on statement made by second respondent under Section 200 of Cr.P.C. – Object of recording statement of complainant under Section 200 of Cr.P.C. is to bring truth on record – Impugned Judgment of High Court set aside and complaint case quashed – Appeal allowed. (Paras 6, 7, 9, 12 and 13)
Facts of the case:
By impugned judgment, High Court dismissed petition filed by the appellants under Section 482 of Code of Criminal Procedure, 1973. The petition was filed to quash a complaint filed in a criminal Court by the second respondent alleging the commission of an offence punishable under Section 29 read with Sections 32 and 34 of Industrial Disputes Act, 1947. High Court has dismissed the petition without considering the merits of the challenge to complaint.
Findings of Court:
Magistrate should have considered averments made in complaint and statements of second respondent and his witness recorded by him before deciding whether a prima facie case of commission of an offence punishable under Section 29 of the ID Act is made out. He ought to have verified whether a lawful authority was granted to the second respondent to file a complaint alleging violation of Section 29 of ID Act. Setting criminal law in motion has serious consequences. It cannot be done casually by Magistrate.
Result : Appeal allowed.
JUDGMENT :
ABHAY S. OKA, J.
1. Leave granted.
FACTS
2. By impugned judgment, the High Court dismissed the petition filed by the appellants under Section 482 of the Code of Criminal Procedure, 1973 (for short, “the Cr. PC”). The petition was filed to quash a complaint filed in a criminal Court by the second respondent alleging the commission of an offence punishable under Section 29 read with Sections 32 and 34 of the Industrial Disputes Act, 1947 (for short, “the ID Act”). Cognizance was taken of the alleged offence on the said complaint. A perusal of the impugned judgment shows that the High Court has dismissed the petition without considering the merits of the challenge to the complaint.
SUBMISSIONS OF THE PARTIES
3. The learned senior counsel appearing for the appellants submitted that Section 29 of the ID Act is attracted when there is a breach of any settlement or award binding on the accused under the provisions of the ID Act. He submitted that there is no averment in the complaint about the breach of any particular settlement or award. He further submitted that under Section 34(1) of the ID Act, cognizance of any offence punishable under the ID Act can be taken based only on a complaint made by or under the authority of the appropriate Government. He submitted that no private person can be authorised under Section 34(1) of the ID Act to file a complaint. He pointed out that the order under Section 34 of the ID Act does not refer to any violation of Section 29 at all, and it only refers to the breach of an affidavit and the provisions of Section 9A of the ID Act.
4. On the other hand, the learned counsel appearing for the second respondent submitted that in paragraph 8 of the complaint, it is specifically alleged that an agreement was incorporated in the joint affidavit of the parties filed before the High Court of Judicature at Allahabad on 9th December 2015 and what is alleged is the violation of the said agreement. He submitted that what is stated in the affidavit is an agreement and, therefore, what was alleged was the violation of the agreement incorporated in the joint affidavit of the parties. He further submitted that the High Court dealing with a petition under Section 482 of the Cr.PC should be very slow in interfering with the order of the issue of process.
CONSIDERATION OF SUBMISSIONS
5. Sections 29 and 34 of the ID Act are material which read thus:
“29. Penalty for breach of settlement or award.- Any person who commits a breach of any term of any settlement or award, which is binding on him under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both and where the breach is a continuing one, with a further fine which may extend to two hundred rupees for every day during which the breach continues after the conviction for the first and the Court trying the offence, if it fines the offender, may direct that the whole or any part of the fine realised from him shall be paid by way of compensation, to any person who, in its opinion, has been injured by such breach.”
.. .. .. .. .. .. .. ..
“34. Cognizance of offences- (1) No Court shall take cognizance of any offence punishable under this Act, or of the abetment of any such offence, save on complaint made by or under the authority of the appropriate Government.
(2) No Court inferior to that of 1[a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.”
(underlines supplied)
6. Section 29 is applicable when any person commits a breach of any term of any settlement or award binding on him under the ID Act. Therefore, in the complaint alleging the commission of an offence punishable under Section 29 of the ID Act, there must be a specific averment regarding the existence of a settlement or award binding on the accused under the ID Act and how the same has been breached. Settlement is defined under Section 2(p) of the ID Act.
7. Before we go into the joi
Setting criminal law in motion has serious consequences – It cannot be done casually by Magistrate.
Recognition of the limited jurisdiction for prosecuting parties under the Industrial Disputes Act, emphasizing enforceability of Labor Court awards against identified entities only.
The High Court's inherent power under Section 482 of CRPC cannot be denied without a statutory bar, and its refusal to entertain a petition must be justified.
Court directed revival of Section 29 petition for prosecuting non-compliant officials under Industrial Disputes Act.
The main legal point established is the requirement of obtaining authorization from the appropriate government for filing complaints under the Industrial Disputes Act 1947 to avoid frivolous complain....
Misconduct can be established outside the workplace if it brings disrepute to the management, and the Labour Court's reduction of punishment was found to be perverse.
Section 29 of Industrial Disputes Act, 1947, which stipulates penalty for breach of settlement of award.
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