IN THE HIGH COURT OF DELHI
Pradeep Nandrajog, J.
Jagatjit Industries Ltd. – Appellant
Versus
Labour Officer and another – Respondents
Criminal M.C. 4899-4901 of 2006
Decided On : 28-09-2011
For the Appellant : Simar Narula
For the Respondent: Asha Jain, Mukesh Jain and Shivika Jain
Headnote:Industrial Disputes Act 1947 - Sections 19 and 29 Summary: The court was presented with a challenge to an order under Section 29 of the Industrial Disputes Act 1947, which alleged that the petitioners had not implemented a Labour Court Award requiring reinstatement of 3 workmen. The court discussed the interpretation of Sections 19 and 29 of the Act. Section 19 specifies the period of operation of settlements and awards, while Section 29 provides for penalties for breach of settlement or award. The court examined the concept of a continuing offence and the distinction between a continuing cause of action and a continuing offence. It held that an award directing reinstatement would constitute an offence if not implemented within one year of its publication, and that the offence would be completed on the expiry of one year. The court concluded that the complaint was time-barred and quashed the order summoning the petitioners.
Fact of the Case:
The petitioners were summoned in a complaint filed by the Labour Officer, alleging that they had not implemented a Labour Court Award requiring reinstatement of 3 workmen.Finding of the Court:
The court found that the complaint was time-barred and quashed the order summoning the petitioners.Ratio Decidendi:
An award directing reinstatement constitutes an offence if not implemented within one year of its publication. The offence is completed on the expiry of one year. Final Decision: The court quashed the order summoning the petitioners and held that the complaint was time-barred.Pradeep Nandrajog, J.
An interesting issue pertaining to interpretation of Section 19 and 29 of the Industrial Disputes Act 1947 arises for consideration in the instant petition which lays a challenge to the order dated 11.11.2005 under which the Petitioners have been summoned in a complaint filed by the Labour Officer (South) Government of NCT Delhi alleging that Labour Court Award in ID No. 357/1995 dated 28.11.2001 requiring reinstatement of 3 workmen has not been implemented qua 2 of them and thus an offence stands committed as per Section 29 of the Industrial Disputes Act 1947. The complaint has been filed on 11.5.2005.
2. Section 29 of the Industrial Disputes Act 1947 reads as under:
29. Penalty for breach of settlement or award -Any person who commits a breach of any term of any settlement or award, which is binding on him under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both, and where the breach is a continuing one, with a further fine which may extend to two hundred rupees for every day during which the breach continues after the conviction for the first and the Court trying the offence, if it fines the offender, may direct that the whole or any part of the fine realised from him shall be paid, by way of compensation, to any person who, in its opinion has been injured by such breach.
3. Section 19 of the Industrial Disputes Act 1947 which specifies the period of operation of settlements and awards reads as under:
19. Period of operation of settlements and awards.-
(1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if No. date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.
(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if No. such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party or parties to the settlement.
(3) An award shall, subject to the provisions of this section, remain in operation for a period of one year from the date on which the award becomes enforceable u/s 17A.
Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:
Provided further that the appropriate Government may, before the expiry of the said period, extend the period of operation by any period not exceeding one year at a time as it thinks fit so, however, that the total period of operation of any award does not exceed three years from the date on which it came into operation.
(4) Where the appropriate Government, whether of its own motion or on the application of any party bound by the award, considers that since the award was made, there has been a material change in the circumstances on which it was based, the appropriate Government may refer the award or a part of it to a Labour Court, if the award was that of a Labour Court or to a Tribunal, if the award was that of a Tribunal or of a National Tribunal for decision whether the period of operation should not, by reason of such change, be shortened and the decision of Labour Court or the Tribunal, as the case may be on such reference shall, be final.
(5) Nothing contained in Sub-section (3) shall apply to any award which by its nature, terms or other circumstances does not impose, after it has been given effect to, any continuing obligation on the parties bound by the award.
(6) Notwithstanding the expiry of the period of operation under Sub-section (3), the award shall continue to be binding on the parties until a period of two months has elapsed from the date on which no