PATNA HIGH COURT
V.Ramaswami and Ahmad JJ.
Sasamusa Sugar Works Ltd.
Versus
State Of Bihar
Miscellaneous Judicial Case No. 115 of 1954 ;
Decided On : AUGUST 04, 1954
INDUSTRIAL DISPUTES - Conciliation proceeding - Authority of Labour Commissioner - Recovery of money due - Industrial Disputes (Appellate Tribunal) Act, 1950, Sec.20 - Public Demands Recovery Act, 1914, Sec.4 - Constitution of India, Art.226.
Fact of the Case:
The petitioner, a limited concern, challenged the orders passed by the Labour Commissioner and the Government under the Industrial Disputes (Appellate Tribunal) Act, 1950, and the Public Demands Recovery Act, 1914, respectively, for the recovery of retaining allowance payable to certain categories of workmen. The petitioner contended that the Labour Commissioner lacked the authority to pass the orders in the conciliation proceeding, that the Government could not order recovery of money found due by the Labour Commissioner, and that the proceeding initiated under the Public Demands Recovery Act was invalid.
Finding of the Court:
1. The Labour Commissioner lacked the authority to pass the orders in the conciliation proceeding as the dispute had already been settled and the conciliation proceeding had exhausted itself. 2. The Government could not order recovery of money found due by the Labour Commissioner in the conciliation proceeding under Sec.20 of the Industrial Disputes (Appellate Tribunal) Act, 1950. 3. The award did not specify any determinate sum as due from the employers to a particular person, and therefore, the Government could not proceed under Sec.20(1) of the Act to recover any due by a proceeding under the Public Demands Recovery Act. 4. The proceeding initiated by the Certificate Officer under the Public Demands Recovery Act was without any legal basis and void as the Government's order under Sec.20(1) of the Act was without jurisdiction.
Issues: 1. Whether the Labour Commissioner had the authority to pass the orders in the conciliation proceeding. 2. Whether the Government could order recovery of money found due by the Labour Commissioner in the conciliation proceeding. 3. Whether the proceeding initiated under the Public Demands Recovery Act was valid.
Ratio Decidendi: 1. The Labour Commissioner's powers and duties in a conciliation proceeding are limited to inducing the parties to come to a settlement and reporting the outcome to the Government. He lacks the authority to pass final orders in the proceeding. 2. Sec.20(1) of the Industrial Disputes (Appellate Tribunal) Act, 1950, allows the Government to recover money due from an employer under an award or decision of an industrial tribunal, but it does not extend to money found due by a conciliation officer in a conciliation proceeding. 3. The award in question did not specify any determinate sum as due from the employers to a particular person, and therefore, the Government could not proceed under Sec.20(1) of the Act to recover any due by a proceeding under the Public Demands Recovery Act.
Final Decision: The Court allowed the petition, quashed the orders passed by the Labour Commissioner, the Government, and the Certificate Officer, and prohibited the Certificate Officer from taking any further action in the proceeding.
Ahmad, J.
1. The petitioner in this case is a limited concern Sasamusa Sugar Works Ltd. It has got a rule issued from this Court against the opposite parties calling upon them to show cause as to why a writ in the nature of mandamus or prohibition or certiorari, or, in the alternative, direction should not be issued forbearing them from giving effect to the orders passed by the Labour Commissioner on 21-2-1953 and 29-4-1953, and restraining them from taking any proceeding under the Industrial Disputes (Appellate Tribunal) Act 1950 and also for quashing two orders one passed by the Government under Sec.20 of the aforesaid Act and communicated to the Sub-divisional Officer, Gopalganj, on 20-2-1954, and the other passed by the Certificate Officer, Gopalganj, whereby he has started, a certificate case No. 331 of 1953-54 for the recovery of Rs. 23,790/1/3 against the Directors of Sasamusa Sugar Works Ltd.
2. The dispute giving rise to the present application is in substance the outcome of some difference between the parties over the interpretation of an award dated 26-9-1950, given under -the Industrial Disputes Act (Act 14 of 1947) by the Industrial Tribunal of which the Hon ble Mr. Justice B. P. Sinha (as he then was) was the sole member.
3. It appears that in the early part of the year 1950 some dispute arose between the employers and workmen of the petitioner company Sasamusa Sugar Works Ltd. For the adjudication of that dispute the Government under Section 7, Indus- trial Disputes Act by an order dated 6-2-1950, constituted an Industrial Tribunal with Hon ble Mr. Justice B.P. Sinha (as he then was) as its sole member, and under Sec.10 of the Act referred to that Tribunal a number of points for adjudication. One of the points referred to it, which has given rise to the present application, was : "The retaining allowance for the off-season to be paid if any". The award, given by the Tribunal on 25-9-1950, was published in the Bihar Gazette, Extraordinary, on 5-10-1950. The finding given therein on the issue of retaining allowance was to the effect that the skilled workmen and clerks should get at the rate of 50 per cent, of their wages during the off-season and semi-skilled ones at the rate of 25 per cent. thereof. A list was also given in the award classifying therein broadly the skilled and semi-skilled jobs with a note attached thereto in the following words :
"It should be noted that the list given above of skilled and semi-skilled jobs is illustrative of the nature of the work done, and not exhaustive of the description, that is to say, irrespective of the description, or nomenclature given by particular factories to their workmen, it is the job, and not the description attaching to it, which will determine the question of whether the particular man is or is not entitled to retaining allowance."
Against the award, an appeal was taken to the Labour Appellate Tribunal of India under Section 7, Industrial Disputes (Appellate Tribunal) Act 1950. The main controversy in appeal between the parties on the point of retaining allowance was as to who among the workmen was to be considered as skilled and semi-skilled labour and as such entitled to get retaining allowance. The Appellate Tribunal on hearing the parties gave its decision on 7-3-1951 which was published in the Bihar Gazette, Extraordinary, dated 26-3-1951. Therein it held : "We think that we should maintain the list given in the award".
4. It appears from the counter-affidavit sworn by opposite party No. 4, the Secretary of the Sasamusa Sugar Workers Union, that while the matter was already pending before the Appellate Tribunal, a conciliation proceeding for the settlement of the difference over the award had also started on 3-3-1951 and it was decided therein that the Commissioner of Labour would issue clarification of the award, if necessary, after the order of the Appellate Tribunal had been given and in the meantime the parties were advised to discuss the matt
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