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1962 Supreme(Ker) 289

HIGH COURT OF KERALA
C.A.VAIDIALINGAM, J.
P. Koru
Versus
Standard Tile and Clay Works (P) Ltd.
O.P. No.2771 of 1961
Decided On : 30-11-1962

Advocates:
M.M. Abdulkhader, for Petitioner; V.K.K. Menon, C.S. Padmanabha Iyer and M. Ramachandran, (for No. 1) and Government Pleader (Labour) (for No. 2), for Respondents.

Headnote:

Arbitration Award - Industrial Disputes - Industrial Disputes Act, Section 10A, Section 17 - The court discussed the interpretation and applicability of Section 10A of the Industrial Disputes Act, which deals with arbitration awards. The court analyzed the jurisdiction of the High Court to issue a writ of certiorari under Article 226 of the Constitution against an arbitration award passed by an arbitrator under Section 10A. The court considered the decisions of the Supreme Court and other High Courts on the issue and concluded that a writ of certiorari can be issued under Article 226 against an arbitration award under Section 10A. The court also discussed the merits of the arbitration award and found no grounds for interference.

Fact of the Case:

The petitioner challenged an arbitration award passed by an Industrial Tribunal under Section 10A of the Industrial Disputes Act. The dispute related to the claim of piece-rated workers for additional bonus and the bonus for temporary workers. The petitioner contended that the decision rendered by the arbitrator was erroneous and illegal.

Finding of the Court:

The court found that the arbitration award did not warrant interference. The court upheld the existing practice of paying bonus based on basic wages and rejected the claims of the workers for additional bonus. The court also upheld the management's practice of making ex gratia payments to temporary workers and found no grounds for imposing additional liability on the management.

Issues: The issues involved the interpretation and applicability of Section 10A of the Industrial Disputes Act, the jurisdiction of the High Court to issue a writ of certiorari under Article 226 against an arbitration award, and the merits of the claims made by the workers.

Ratio Decidendi: The court's decision was based on the interpretation of Section 10A of the Industrial Disputes Act and the applicability of Article 226 of the Constitution. The court also considered the merits of the claims and found no legal grounds for interference with the arbitration award.

Final Decision: The writ petition was dismissed, and the court held that the arbitration award did not warrant interference. The parties were directed to bear their own costs.

ORDER :- In this writ petition, Mr. M. M. Abdulkhader, learned counsel for the petitioner, challenges the arbitration award passed by Sri V. U. Joseph, Industrial Tribunal, Kozhikode, to whom the dispute was referred by agreement of parties under section 10A of the Industrial Disputes Act. There is no controversy that the procedure and the various formalities indicated under section 10A of the Act were amply complied with and ultimately the State Government has published the award under section 17 of the Act.

2. The petitioner, Union, challenges the arbitration award on the ground that the decision rendered by the arbitrator on the two main questions that were referred to him for adjudication is erroneous and illegal.

3. The question that was referred to the arbitration of Mr. V. U. Joseph related to the claim of the piece-rated workers for additional bonus for the year ending 31-12-1959 to be paid on the total wages that they were getting at the material time. The claim also related to bonus for the same period regarding the temporary workers. The actual question that was referred for the opinion of the arbitrator and as extracted in the arbitration award is as follows :

"The managements contention that the workers were not entitled to any additional bonus for the year ending 31-12-1959 according to the existing practice followed by the management hitherto as against the workers contention that the existing practice is not correct and that the piece-rated and temporary workers were also entitled to the same rate of bonus as the permanent time-rated workers."

4. I will have to consider later the merits of the attack levelled against this award. But at this stage, it is enough to note that both the claims that were urged before the arbitrator, on behalf of the Union were negatived. The opinion of the arbitrator ultimately is that the existing practice adopted by the management of paying bonus based on basic wages is perfectly correct and that the temporary workers are not entitled to any bonus as claimed by them. That means, on the questions which were referred for adjudication by the arbitrator concerned, the opinion given by the arbitrator is against the union.

5. It is this arbitration award dated 21-4-1961 and published in the State Gazette on 23rd May 1961 that is attacked by Mr. Abdulkhader, learned counsel for the petitioner.

6. On behalf of the management, the first respondent, Mr. V. K. K. Menon, learned counsel, has taken a preliminary objection to the maintainability of this application under Article 226 of the Constitution.

7. According to the learned counsel, no writ of certiorari can issue against an arbitration award passed by an arbitrator to whom a reference has been made by agreement of parties under Section 10A of the Industrial Disputes Act. So far as this is concerned, quite naturally, Mr. V. K. K. Menon, relied upon the judgment of my learned brother, Mr. Justice Velu Pillai reported in A. T. K. M. Employees Association v. Musaliar Industries, (1961) 1 Lab LJ 81 (Kerala) as also the judgment on appeal. The learned Judge in that case has accepted the contention advanced before him that under such circumstances the arbitrator cannot be considered to be a statutory arbitrator, and, therefore, no proceedings under Article 226 can be initiated challenging the award of such an arbitrator.

8. This judgment of my learned brother, Mr. Justice Velu Pillai, was under attack before my Lord the Chief Justice and Mr. Justice Govindan Nair, in their decision reported in A. T. K. M. Employees Association v. Musaliar Industries, 1962 Ker LJ 865. The view of Mr. Justice Velu Pillai, that under such circumstances the arbitrator under S. 10A cannot be considered to be a statutory arbitrator and, therefore, Article 226 of the Constitution cannot be invoked, was accepted by the learned Judges in the appeal also.

9. It is really on the basis of these decisions of this court that Mr. V. K. K. Menon, learned counsel for the management has

















































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