1967 Supreme(Pat) 78

PATNA HIGH COURT
R.L.Narasimham and K.B.N.Singh JJ.
Heavy Engineering Mazdoor Union
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 921 of 1966 ;
Decided On : SEPTEMBER 05, 1967

The appropriate Government to make a reference under Sec.10 of the Industrial Disputes Act is the Central Government in relation to industries carried on by or under the authority of the Central Government, and the State Government in relation to other industrial disputes.

Headnote:

INDUSTRIAL DISPUTES ACT - APPROPRIATE GOVERNMENT - STANDING ORDERS ACT - INDUSTRIAL DISPUTE - REFERENCE - VALIDITY - CENTRAL GOVERNMENT COMPANY - CONTROL - INDUSTRY CARRIED ON BY OR UNDER THE AUTHORITY OF THE CENTRAL GOVERNMENT - FAIRNESS AND REASONABLENESS OF STANDING ORDERS - JURISDICTION OF CERTIFYING OFFICER AND INDUSTRIAL TRIBUNAL - CONFLICT - STAY OF PROCEEDINGS.

Fact of the Case:

The petitioner, a Trade Union of workers of Heavy Engineering Corporation Limited, Ranchi, challenged the validity of the Government of Bihar's order referring two disputes to the Industrial Tribunal for adjudication: (1) the quantum of festival holidays for workers, and (2) whether workers are entitled to the 2nd Saturday off every month. The petitioner contended that the appropriate Government to make the reference was the Central Government, not the State Government, and that the items referred were pending before the Certifying Officer under the Standing Orders Act, thus ceasing to be industrial disputes.

Finding of the Court:

1. The appropriate Government to make a reference under Sec.10 of the Industrial Disputes Act is the Central Government in relation to industries carried on by or under the authority of the Central Government, and the State Government in relation to other industrial disputes. 2. The company in question, Heavy Engineering Corporation Limited, Ranchi, is not an industry carried on by or under the authority of the Central Government, despite extensive control exercised by the Central Government, as it has a distinct legal existence and is run for its own profit. 3. The phrase "under the authority of" in Sec.2(a)(1) of the Act means industries belonging to the Central Government and carried on directly by it or by someone nominated by it. 4. The mere description of the company as "a Government of India undertaking" in the Standing Orders does not make it an industry carried on under the authority of the Central Government. 5. The Standing Orders Act and the Industrial Disputes Act have different objects and confer different powers on different authorities. The Certifying Officer under the Standing Orders Act can adjudicate on the fairness and reasonableness of standing orders, while the Industrial Tribunal under the Industrial Disputes Act can prevent illegal strikes and lockouts and grant interim relief. 6. An industrial dispute can be raised and referred to the Industrial Tribunal under Sec.10 of the Act even in regard to matters covered by the provisions of the existing standing orders. 7. The appropriate Government has discretion in making references under Sec.10 of the Act. If the subject matter of the dispute is pending before a Certifying Officer, the Government may not make a reference unless it is urgent to prevent illegal strikes or lockouts. 8. If a reference is made, the Certifying Officer may stay proceedings pending the decision of the Industrial Tribunal, and amend the standing orders accordingly based on the Tribunal's decision.

Issues: 1. Whether the appropriate Government to make the reference was the Central Government or the State Government. 2. Whether the items referred to in the notification were still industrial disputes, considering they were pending before the Certifying Officer under the Standing Orders Act.

Ratio Decidendi: 1. The definition of "appropriate Government" in Sec.2(a) of the Industrial Disputes Act distinguishes between industries carried on by or under the authority of the Central Government and other industrial disputes. 2. The company in question, Heavy Engineering Corporation Limited, Ranchi, is not an industry carried on by or under the authority of the Central Government, despite extensive control exercised by the Central Government, as it has a distinct legal existence and is run for its own profit. 3. The phrase "under the authority of" in Sec.2(a)(1) of the Act means industries belonging to the Central Government and carried on directly by it or by someone nominated by it. 4. The mere description of the company as "a Government of India undertaking" in the Standing Orders does not make it an industry carried on under the authority of the Central Government. 5. The Standing Orders Act and the Industrial Disputes Act have different objects and confer different powers on different authorities. The Certifying Officer under the Standing Orders Act can adjudicate on the fairness and reasonableness of standing orders, while the Industrial Tribunal under the Industrial Disputes Act can prevent illegal strikes and lockouts and grant interim relief. 6. An industrial dispute can be raised and referred to the Industrial Tribunal under Sec.10 of the Act even in regard to matters covered by the provisions of the existing standing orders. 7. The appropriate Government has discretion in making references under Sec.10 of the Act. If the subject matter of the dispute is pending before a Certifying Officer, the Government may not make a reference unless it is urgent to prevent illegal strikes or lockouts. 8. If a reference is made, the Certifying Officer may stay proceedings pending the decision of the Industrial Tribunal, and amend the standing orders accordingly based on the Tribunal's decision.

Final Decision: The petition challenging the validity of the Government of Bihar's order referring two disputes to the Industrial Tribunal was dismissed. The Court held that there was no invalidity in the notification and that the appropriate Government had the discretion to make references under Sec.10 of the Industrial Disputes Act, even if the subject matter was pending before a Certifying Officer under the Standing Orders Act.