In the exercise of sovereign powers under Section 10-B of the Industrial Disputes Act, it is not necessary for the Government to hear any person affected by the order, as it is in the nature of an interim order passed to meet an emergent situation.

V. P. MOHAN KUMAR, J.

( 1 ) THE petitioner challenges the validity of Annexure-K order passed by the Government. The facts in this case are as follows:

( 2 ) THE petitioner is a Cement Factory, employing more than 450 workers. There are two units. On certain alleged misconduct committed by the 4th respondent, he was proceeded against, which resulted in the workers launching a strike. The dispute regarding the disciplinary action taken against the 4th respondent is pending adjudication before the Labour Court, evidenced by Annexure-J. At this stage, the Government has passed Annexure-K order calling upon the Management to pay 75 per cent of the wages to the workers. This order has been issued in exercise of the power under Section 10-B of the industrial Disputes Act. The challenge against the said order is essentially on the allegation that this order having been passed without hearing the petitioner. The Management contends that before the issuance of Annexure-K order, the petitioner ought to have been heard and only after hearing it, an order could have been passed. According to the Management, the order has civil consequence and, therefore, whenever an order having civil consequence is to be passed, it is essential that the person affected by the said order should be heard. To sustain the challenge, the petitioner relies on certain authorities of the supreme Court as also of this Court.

( 3 ) THE learned High Court Government Advocate has appeared tc defend the Annexure-K order. According to the learned Government Advocate who appeared, it is conceded that this order was passed without hearing the Management. But according to him, as the order has no civil consequences it is not necessary. According to him, it is only a consequential order issued on the basis of the reference of a dispute to the Labour court. He submits that when the conciliation failed, the management had notice as to what has to follow. It should be deemed to have been put to notice of the fact that there is likelihood of a reference being made to the Labour Court and that the Government is armed with the power under Section 10-B of the Industrial Disputes Act and is entitled to issue appropriate order. Therefore, according to him, no notice need be given to the petitioner-Management before any order is issued under Section 10-B.

( 4 ) THE worker is represented by Sri M. C. Narasimhan. He also contended that there is no need to be heard in the matter, but he was not prepared to contend that the order impugned has no civil consequence. According to him, even if the order has any civil consequence, nevertheless if the Government has taken into account all relevant considerations and has passed the order, then it is not liable to be interfered solely for the reason that the affected person was not heard. According to him, it being in the nature of an interim order pending the reference of the dispute to the adjudicatory authority, there is no necessity for giving a hearing to the affected persons before such an order is passed.

( 5 ) I have heard Sri R. Gururajan at length on this issue. Section 10-B of the Industrial Disputes Act reads as follows:"10-B. Power to issue order regarding terms and conditions of service pending settlement of dispute. (1) where an industrial dispute has been referred by the State government to a Labour Court or a Tribunal under subsection (1) of Section 10 and if in the opinion of the State government it is necessary or expedient to do for securing the public safety or convenience or the maintenance of public order or supplies and services essential to the life of the community or for maintaining employment or industrial peace in the establishment concerning which such reference has been made, it may, by general or special order, make provision, (a) for requiring the employer or workman or both to observe such terms and conditions of employment as may be specified in the order or as may be determined in accordance with the order, in

Click Here to Read the rest of this document