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2000 Supreme(Guj) 594

Gujarat High Court
Judgename :D.M.Dharmadhikari, J.M.Panchal
P.K.SHAH - Appellant
Versus
GUJARAT INDUSTRIAL CO OPERATIVE BANK LIMITED - Respondent
Letters Patent Appeal822 of 1999
Decided On : 08/01/2000

Advocates Appeared: DIPAK DAVE, N.R.SAHANI

Headnote:Letters Patent Appeal - Clause 15 - Judgment of learned Single Judge setting aside order of Labour Court on ground that reference of dispute by State Government was incompetent challenged - Held, in view of Secs. 2(aa), 2(bb) & 10 of Industrial Disputes Act, 1947 read with Sec. 5(1)(c) of Banking Regulation Act, 1949 and Sec. 4 of Industrial Dispute (Banking and Insurance Company) Act, 1949, the dispute cannot be referred by State Government to Labour Court - Reference is void ab-initio - Since award based on incompetent reference is a nullity learned Single Judge was justified in setting aside the award of Labour Court - Appeal dismissed as has no substance - However, dispute if any raised by appellant shall be taken up in conciliation without delay.

       Having regard to the facts of the case, Cour is of the opinion that in view of the decision of the learned Single Judge, which Court is inclined to uphold in this appeal, now the respondent cannot be called upon to pay wages for the period to the appellant under Sec. 17-B of the I.D. Act. As Court find no substance in the appeal, the appeal is liable to be dismissed. However, it is clarified that if any dispute is raised by the appellant, the same shall be taken-up in conciliation without any avoidable delay and shall be decided in accordance with law. The appeal fails and is dismissed.

       [Para 6]

J. M. PANCHAL, J.

( 1 ) BY means of filing this appeal under Clause 15 of the Letters Patent, the appellant-workman has challenged judgment dated march 9, 1999 rendered by the learned single Judge, in Special Civil Application no. 9424 of 1998, by which Award dated August 19, 1998 passed by the labour Court, Ahmedabad directing the respondent to reinstate the appellant in service with back wages, is set aside on the ground that the reference to the Labour Court by the State Government was incompetent

( 2 ) ). The respondent is a Co-operative Society registered under the Gujarat co-operative Societies Act, 1961. It transacts the business of banking and is a hanking company within the meaning of Sec. 5 (c) of the Banking Regulations act, 1949 and Sec. 2 (bb) of the Industrial Disputes Act, 1947. The respondent has its Branches all over the State of Gujarat and also the Regional Branch at Dadra and Nagar Haveli (Silvassa), which is a Union Territory.

( 3 ) ). The appellant was working as a Clerk with the respondent-Bank. He was suspended from service on October 16, 1995 for the misconduct of subverting the discipline of the Bank. Ultimately, after holding inquiry he was dismissed from service by an order dated August 9, 1997. He raised an industrial dispute and the State Government acting as an appropriate Government referred the dispute regarding reinstatement of the appellant in service, for adjudicalion to Presiding Officer, Labour Court. Ahmedabad. In the written statement filed by the respondent, an objection was raised to the effect that the State Government had no jurisdiction to refer industrial dispute between the Bank and its employees in view of the provisions of the Industrial Disputes (Banking and Insurance companies) Act, 1949, and therefore, the reference should be dismissed. The labour Court raised necessary issues for determination and held that as 2 (p) settlement dated September 16, 1999 was approved by the Labour Commissioner and as the respondent had prolonged the proceedings pending before Conciliation officer and had not approached the competent authority with clean hands, the reference was not liable to be dismissed on the ground that the State Government had no jurisdiction to refer the dispute to the Labour Court. The Labour Court on merits found that the misconduct alleged against the appellant was not proved. Therefore, the Labour Court by award dated August 19, 1998 directed the respondent to reinstate the appellant in service with back wages. That award was challenged by the respondent before the High Court in Special Civil application No. 9424 of 1998. As observed earlier, the learned single Judge has by the impugned judgment set aside the award of the Labour Court on the ground that the reference of the dispute to the Labour Court by the State government was incompetent, giving rise to the present appeal.

( 4 ) ). Mr. N. R. Sahani, learned Counsel for the appellant submitted that the Labour Court, Ahmedabad, which is competent to receive reference from the State Government as well as Central Government and is set up under the Industrial Disputes Act, 1947, has adjudicated the dispute in favour of the appellant, and therefore, the award passed by the Labour Court should not have been set aside on the ground that the reference of the dispute by the state Government was without jurisdiction. It was pleaded that the respondent- bank is having only one Branch in Union Territory of Dadra and Nagar Haveli. and therefore, the State Government was competent to make reference of dispute for its adjudication to the Labour Court. It was claimed that a proposal to divide the respondent-Bank in three separate divisions is pending and if the proposal goes through. Central Government would not be competent to make reference of dispute to the Labour Court, and therefore, in such circumstances the award should not have been set aside by the learned single Judge. An additional ground, which was neither raised before th













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