SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1960 Supreme(Cal) 146

HIGH COURT OF CALCUTTA
D. N. Sinha
ANIL KUMAR UPADHAYA - Appellant
Versus
P. K. SARKAR - Respondent
Matter 48  Of  1960
Decided On : JULY 04, 1960

Advocates Appeared:
E.R.Meyer, K.C.MUKHERJI

The Tribunal has the power to summon other parties, meaning thereby, parties other than parties to the industrial dispute, to appear in the proceedings as parties thereto. However, this power is limited to summoning proper and necessary parties to appear in the proceedings as parties to the dispute, and not to adding them as parties.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 18(3)(B) - SUMMONING OF PARTIES - TRIBUNAL'S POWER - INTERPRETATION - PROCEDURE - WRIT OF CERTIORARI.

Fact of the Case:

The petitioner, a trustee of a provident fund, challenged an order of the Industrial Tribunal adding the trustees as parties to an industrial dispute referred to it for adjudication. The dispute related to the amendment of the Provident Fund Rules, which were contained in a Trust Deed. The company had filed a written statement objecting to the order on the ground that the trustees were not made parties and the Tribunal had no jurisdiction to adjudicate upon the alleged order of reference.

Finding of the Court:

The court held that the Tribunal had the power to summon other parties, meaning thereby, parties other than parties to the industrial dispute, to appear in the proceedings as parties thereto. However, the court clarified that this power was limited to summoning proper and necessary parties to appear in the proceedings as parties to the dispute, and not to adding them as parties. The court further held that the procedure followed by the Tribunal in adding the trustees as parties without giving them an opportunity to show cause why they should not be so added was not in accordance with law.

Issues: 1. Whether the Tribunal had the power to add parties to an order of reference or the proceedings. 2. Whether the Tribunal had the power to summon other parties to appear in the proceedings as parties to the dispute. 3. Whether the procedure followed by the Tribunal in adding the trustees as parties without giving them an opportunity to show cause why they should not be so added was in accordance with law.

Ratio Decidendi: 1. The court held that the Tribunal had the power to summon other parties, meaning thereby, parties other than parties to the industrial dispute, to appear in the proceedings as parties thereto. This power was implied from the provisions of Clause (b) of Sub-section (3) of Section 18 of the Industrial Disputes Act, 1947. 2. The court held that the power to be implied from the provisions of Clause (b) was to summon such a party. The form of summons had not yet been prescribed, but under Sub-section (1) of Section 11, the Tribunal may issue summons in its own form, and follow such procedure with regard to it as it may think fit, until rules framed under the Act deal with such matter. 3. The court held that the procedure followed by the Tribunal in adding the trustees as parties without giving them an opportunity to show cause why they should not be so added was not in accordance with law. Clause (b) of Sub-section (3) of Section 18, clearly contemplates that not only there should be such a summons but that the Party summoned should have an opportunity to show that he has been summoned without proper cause.

Final Decision: The court quashed the order of the Tribunal adding the trustees as parties to the dispute and directed the Tribunal to proceed in accordance with law.

( 1 ) THE facts in this case are shortly as follows : The respondent No. 2, Messrs. Backwood Hodge (India) Private Limited is a company incorporated under the Indian Companies Act. The petitioner and the respondents Nos. 5 and 6 are the Trustees appointed under an Indenture of Trust relating to the start provident fund of the company. By an order dated 3rd August, 1959 made under Section 10 of the Industrial Disputes Act, 1947 the Government referred an industrial dispute existing between the company and their workmen represented by Blackwood Hodge Employees' Welfare Union, being the respondent No. 2 herein, to the adjudication of the Second Industrial Tribunal, Calcutta. The dispute, as set out in the schedule of the order (annexure "a" to the petition) relates to the amendment of the Provident Fund Rules. The Provident Fund Rules are contained in an Indenture dated 23rd May, 1953 being the Trust Deed, containing also rules and regulations relating to the provident fund. Under clause 4 of the said Indenture, the Trustees may, with the consent in writing of the employer and shall, it so desired by the employer, alter, vary, modify, remake, rescind, add to, or cancel any of the provisions of the Indenture or the rules, provided however that so long as the Provident Fund shall be a recognised Provident Fund under the provisions of the Indian Income Tax Act, 1922 or any modification thereof, the power contained in the said clause shall not be exercised without the previous consent of the Commissioner of Income-tax having jurisdiction over the Fund. The company filed its written statement on or about the 11th July, 1959 taking the point that the order of reference was bad in law as the Trustees were not made parties and as such the Tribunal had no jurisdiction to adjudicate upon the alleged order of reference. Subsequently, an additional written statement was filed by the company disclosing the names of the Trustees and stating that there was no relationship of employer and employee between the Trustees and the workmen and also reiterating the objection that the Trustees were not parties to the alleged order of reference. On the 22nd September, 1959 an application was filed on behalf of the Union stating that the Board of Trustees should be made necessary and proper parties inasmuch as the members of the Board were interested in the result of the adjudication and that unless they were added as parties to the dispute the effectual administration of the Provident Fund Institution will not be possible and practicable and the results of the adjudication will be inoperative and infructuous. It was, therefore, prayed that the members of the Board of Trustees should be "summoned to appear in the proceedings as parties to the dispute under Section 18 (2) of the Industrial Disputes Act, 1947". On the very same day, the company appeared and stated that it had objection to this prayer and a written objection would be filed. The company thereafter filed its objection and the Tribunal made an order on the 24th December 1959. A copy of the said order is annexure "b" to the petition. The Tribunal in its judgment states that two questions arise in the application, the first being as to whether the Tribunal had power under the Industrial Disputes Act, 1947 to add new parties to the proceedings and the second point is whether the Trustees should be added as parties to the proceeding. The Tribunal considered Sub-section (3) of Section 18 of the Industrial Disputes Act and came to the conclusion, following two Madras Cases which I shall presently notice, that apart from the parties to the industrial dispute as mentioned in the order of reference, the Tribunal could summon other parties to appear in the proceedings as parties to the dispute and that this, by necessary implication, confers power upon the Tribunal to add new parties to the dispute. It was further held that new parties so added need not include only employers and employees. A party can b








Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top