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High Court Of Delhi
MANAGEMENT OF BLUE STAR ENGINIRING COMPANY PRIVATE LIMITED - Appellant
Versus
LIEUTENANT GOVERNOR DELHI - Respondent
Civil 44 of 1970
Decided On : 03/02/1970
INDUSTRIAL DISPUTES ACT, 1947 - SECTION 33B - TRANSFER OF PROCEEDINGS - REASONS - NATURAL JUSTICE - QUASI-JUDICIAL ORDER - ORDER OF TRANSFER WITHOUT NOTICE TO AFFECTED PARTY AND WITHOUT RECORDING SUFFICIENT REASONS IS LIABLE TO BE QUASHED.
Fact of the Case:
The petitioner, a company, challenged an order passed by the Delhi Administration transferring an industrial dispute proceeding from one Labour Court to another on the ground of alleged prejudice against the presiding officer. The transfer was made on the basis of an application by the workers' union without giving any notice to the management or seeking comments from the presiding officer.
Finding of the Court:
The court held that the order of transfer was quasi-judicial in nature and that the requirement of recording reasons for the transfer was mandatory and not merely directory. The court further held that the order was passed without giving any opportunity to the management to be heard and without recording sufficient reasons, and was therefore liable to be quashed.
Issues: 1. Whether the order of transfer was administrative or quasi-judicial in nature? 2. Whether the requirement of recording reasons for the transfer was mandatory or directory? 3. Whether the order was passed without giving any opportunity to the management to be heard? 4. Whether the order was passed without recording sufficient reasons?
Ratio Decidendi: 1. The court held that the order of transfer was quasi-judicial in nature because it was made on the ground of alleged prejudice against the presiding officer, which required a judicial determination. 2. The court held that the requirement of recording reasons for the transfer was mandatory and not merely directory, as it was necessary to ensure that the reasons for the transfer were germane to the content and scope of the power vested in the Delhi Administration. 3. The court held that the order was passed without giving any opportunity to the management to be heard, which violated the principles of natural justice. 4. The court held that the order was passed without recording sufficient reasons, as it merely stated that an application had been made by the workers' union on the ground of alleged prejudice and in the interest of justice, without stating any facts or evidence to support the allegations of prejudice.
Final Decision: The court set aside the impugned order of transfer and directed the Delhi Administration to consider the prayer of the workers' union for transfer afresh and dispose of the same according to law.
( 1 ) THE services of Shri N. R. Sharma (fourth respondent), a Supervisor in the petitioner-company, who was drawing wages of Rs. 770. 00 per month, was terminated with effect from 9th October 1968 (as per Annexure C to the writ petition) He raised an industrial dispute with regard to the termination of his appointment which was referred to the Labour Court constituted for the Union Territory of Delhi, then presided over by Shri Desh Deepak. On his being transferred he was succeeded by Shri R. K. Baweja (fifth respondent) who recorded evidence of both parties and completed all the evidence except for one witness for the management who was absent at the hearing; more than 200 documents are alleged to have been filed. At that stage the Under Secretary of the Delhi Administration (second respondent) passed an order (on 2nd December 1969) transferring the above proceedings from Shri Baweja to the Additional Labour Court presided over by Shri Hans Raj (sixth respondent ). The said transfer appears to have been made on a representation made by the workers Union dated 26th October, 1969 alleging that Shri Baweja was prejudiced against Shri N. R. Sharma. The order of transfer (Annexure E to the Petition) referred to the above application (dated 25th October 1969) said to be made "on the ground of alleged prejudice and in the interest of justice" and directed that the case be proceeded with by the Addl. Labour Court (Shri Hans Raj) from the stage at which it stood at the time of transfer.
( 2 ) THE petitioner questions this order of transfer as not complying with section 33b of the Industrial Disputes Act "in substance and in letter"; though the order was quasi-judicial it was made on the representation of the Union and without hearing the management. It was further attacked as having been made under political pressure, an allegation which, in the view I take, need not detain us.
( 3 ) SECTION 33b may now be read:-
" (1) The appropriate Government may, by order in writing and for reasons to be stated therein, withdraw any proceeding under this Act pending before a Labourt Court, Tribunal or National Tribunal and 853 ING CO. (P) LTD. v. THE LT. GOVERNOR, DELHI ADMINISTRATION, DELHI and OTHERS transfer the same to another Labour Court, Tribunal or National Tribunal, as the case may be, for the disposal of the proceeding and the Labour Court, Tribunal or National Tribunal to which the proceeding is so transferred may, subject to special directions in the order of transfer, proceed either de novo or from the stage at which it was so transferred; Provided that where a proceeding under section 33 or section 33a is pending before a Tribunal or National Tribunal, the proceeding may also be transferred to a Labour Court. (2) Without prejudice to the provisions of subsection (1), any Tribunal or National Tribunal, if so authorized by the appropriate Government, may transfer any proceeding under section 33 or section 33a pending before it to any one of the Labour Courts specified for the disposal of such proceedings by the appropriate Government by notification in the Official Gazette and the Labour Court to which the proceeding is so transferred shall dispose of the same. "in the light of the above provision, which requires reasons to be stated before such an order (in writing) is made transferring the proceedings, the precise terms of the impugned order (dated 2nd December 1969) may also be noticed:-
"no. F. 289/co (l)/68-Lab. :-Whereas the industrial dispute existing between the management of M/s. Blue Star Engineering Company (Bombay) Private Ltd. , and its workman Shri N. R. Sharma was referred for adjudication to the Labour Court, presided over by Shri R. K. Baweja, Tis Hazari, Delhi. 2. And whereas M/s. Blue Star Engineering Workers Union (Regd.) in their application dated 25-10-69 has sought transfer of case of Shri N. R. Sharma, workman on the ground of alleged prejudice and in the interest of justice; 3. Now, therefor
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