2010 Supreme(Jhk) 906
IN THE HIGH COURT OF JHARKHAND
R.R. Prasad, M.Y. Eqbal, JJ.
Tata Steel Limited - Appellant
Vs.
Suresh Prasad Singh And Others - Respondents
L.P.A. No. 359 of 2008
Decided On : 29-01-2010
The power to adjudicate disputes under the Industrial Disputes Act vests with the Tribunal of a valid dispute, and the Government cannot decide the issue or delve into the merits.
Headnote:
Industrial Disputes Act - Employment Dispute - Section 2(k), Section 10, Section 12(5) - The court discussed the interpretation of Section 2(k) of the Industrial Disputes Act and the power of the Government to adjudicate disputes. It emphasized that the power to adjudicate vests with the Tribunal of a valid dispute and that the Government cannot delve into the merits or decide the issue. The court also highlighted the obligation of the Tribunal to adjudicate the dispute referred after trial.
Fact of the Case:
The respondents, workmen employed by the Indian Tube Company, raised a demand for parity and proper wages. The matter was referred to the Labour Court for adjudication. The Labour Court passed an award holding that no industrial dispute existed between the claimants-respondents and the TISCO management. The respondents filed a writ petition, which was allowed by the Single Judge, setting aside the award and remitting the matter for deciding the reference on merit.
Finding of the Court:
The court found that the Recreation Club was controlled, managed, and looked after by the TISCO management, and the award passed by the Labour Court was unsustainable. It emphasized the obligation of the Tribunal to adjudicate the dispute referred after trial and held that the employees should be treated as employees under the appellant-company.
Issues: The issues revolved around the entitlement of the workmen to pay scale and benefits, their status as employees of TISCO Tubes Division, and the interpretation of Section 2(k) of the Industrial Disputes Act.
Ratio Decidendi: The court emphasized that the power to adjudicate disputes vests with the Tribunal of a valid dispute and that the Government cannot delve into the merits or decide the issue. It also highlighted the obligation of the Tribunal to adjudicate the dispute referred after trial.
Final Decision: The appeal was dismissed as having no merit.
ORDER :
1. This appeal under Clause 10 of letter patent is directed against the judgment dated 30.8.2008 passed in CWJC No. 1802 of 2000 (R), whereby the learned Single Judge allowed the writ petition, set aside the award passed by the Presiding Officer, Labour Court, Jamshedpur and remitted back the matter for deciding the Reference on merit.
2. The respondents who are the concerned workmen, were employed by the erstwhile Indian Tube Company in between 1983-85 and have been working since then. In 1989, the respondents raised a demand before the management through the Secretary Recreation Club of the appellant - TISCO Tube Division, Jamshedpur for parity and proper wages. In the conciliation proceeding before the statutory authority the management of appellant-TISCO also participated. Since the conciliation failed, a failure report was submitted. Thereupon the proper Government by Notification dated 19.6.1991 referred the following disputes to the Presiding Officer, Labour Court for adjudication:
“1. Whether the workmen of TISCO Tubes Recreation Club, Baridih, Jamshedpur are entitled to get pay scale and other benefits admissible to the workmen of TISCO Welfare Department, Community Development Centre, Hospital, Health Department and Electrical Department? If affirmative, then what pay they are entitled to and from what?
2. Whether the workmen of TISCO Tubes Division Recreation Club, Baridih, Jamshedpur should be created as the workmen of TISCO Tubes Division or not?
3. The Labour Court finally passed the award holding that no industrial dispute as defined u/s 2(k) of the Industrial Disputes Act exists in between the claimants-respondents and the TISCO management. Aggrieved by the said award passed by the Labour Court the respondents filed the aforementioned writ petition. The learned Single Judge, after discussing the entire facts of the case, came to the following conclusion:
“14. The fact remains that the Recreation Club is controlled, managed and looked after by respondent No. 2 and, thus, the finding recorded at paragraph No. 17 and 18 of the impugned award is contrary to the facts and documents on record and, thus, unsustainable in the eyes of law. The learned Presiding Officer has also failed to appreciate that it was required to adjudicate the reference instead of rejecting it on the ground of maintainability. In this regard it is relevant to refer to ALR 1989 SC 1565 Telco Convoy Drivers Mazdoor Sangh and Another Vs. State of Bihar and Others, , wherein, in a similar situation while interpreting Section 2(k) of the Industrial Disputes Act and the power of the Government, the Hon'ble Supreme Court held that the power to adjudicate vests with the Tribunal of a valid dispute and if the same is allowed for the government to do so, it will render Section 10 and Section 12(5) of the Ac nugatory. Meaning thereby, the conferment of jurisdiction under the provisions of Industrial Disputes Act is clearly well defined that the Government has to refer the matter, it cannot delve into the merits or decide the us. Simultaneously upon reference, the learned Tribunal is required to adjudicate the dispute referred after trial. In the instant case, the learned Presiding Officer, Labour Court, instead of adjudicating the dispute on merits has by a detailed speaking order rejected the same on the ground of maintainability and that also on an erroneous interpretation of facts and law.
16. Be that as it may, the fact remains that the erstwhile Indian Tube Company merged with TISCO Management in the year, 1986 and after merger, the Indian Tube Company has become Tube Division of TISCO, and the activities of erstwhile Company has been made as one of the Divisions of TISCO Ltd. and since then the persons employed in Tube Company became the employees of TISCO Ltd. Respondent No. 2 hats got various departments under its own Welfare Department, which maintains the creativity, health, educational needs of the employees or their wards and provides housin