IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.VAIDYANATHAN, R.KALAIMATHI, JJ.
The Management of Simpson & Co.Ltd. – Appellant
Versus
The Presiding Officer, Second Additional Labour Court – Respondent
W.A.No.169 of 2019
Decided on : 08-03-2023
Review - Industrial Dispute - The court held that once an award is passed, the tribunal becomes functus officio and review does not arise. The management's challenge to the award was justified as no concession was made before the Labour Court.
Fact of the Case:
The second respondent employee raised an industrial dispute after being dismissed from service. The Labour Court awarded compensation, which was challenged in a writ petition. The single Judge dismissed the petition, stating that the employer should have filed a review application before the Labour Court.
Finding of the Court:
The court found that the review was not possible as per the Industrial Disputes Act and the management's challenge to the award was justified. The orders of the single Judge and the Labour Court were set aside.
Issues: Dismissal from service, industrial dispute, compensation, review application
Ratio Decidendi: Once an award is passed, the tribunal becomes functus officio and review does not arise. The management's challenge to the award was justified as no concession was made before the Labour Court.
Final Decision: The Writ Appeal was allowed, and the orders of the single Judge and the Labour Court were set aside. No costs were awarded.
JUDGMENT :
This appeal has been preferred against the order of the learned single Judge, dated 28.08.2018, passed in W.P.No.15096 of 2013.
2. Questioning his dismissal from service under the appellant management, the second respondent employee raised an industrial dispute in I.D.No.256 of 2002 before the first respondent - Labour Court, which passed an award, dated 08.11.2012, directing the appellant Management to pay a sum of Rs.5.00 lakhs, as compensation. That order was challenged in W.P.No.15096 of 2013 and the learned single Judge dismissed the Writ Petition, on the ground that the employer ought to have filed a review application before the Labour Court.
3. The contention of Mr.C.Mohan, learned counsel for the appellant, is that the management had not made any concession before the Labour Court to pay Rs.5.00 lakhs. The Management also filed an affidavit to the effect that Rs.5.00 lakhs was not offered by them and that they had not instructed the lawyer to give such a concession.
4. In our considered opinion, in the present case, the finding of the learned single Judge that review is possible and invoking the provisions of the Industrial Disputes Act are not correct. For the sake of convenience, Rule 55 of the Tamil Nadu Industrial Disputes Rules,1958, is extracted below :
As per this Rule, the Labour Court can correct only a typographical mistake. Once an award is passed in terms of Sections 17 and 17A of the Industrial Disputes Act,1947, on coming into force of the said award, the Tribunal becomes functus officio. Hence, review does not arise. That is the reason, why the Writ Petition was filed by the Management, challenging the award, stating that no concession with regard to Rs.5.00 lakhs was made before the Labour Court. In fact, at no point of time, the appellant Management offered Rs.5.00 lakhs either before this Court or before the Labour Court to be paid to the respondent employee.
5. Though the second respondent has been served more than once, he did not appear before this Court either in person or through a counsel.
6. Under the circumstances, we are of the view that the order of the learned single Judge, dated 28.08.2018, passed in W.P.No.15096 of 2013, and the award of the first respondent Labour Court, dated 08.11.2012, passed in I.D.No.256 of 2002 are liable to be set aside and they are, accordingly, set aside.
7. Writ Appeal is allowed. No costs. Consequently, the connected
C.M.P.No.1630 of 2019 is closed.
The court affirmed the finality of Labour Court decisions in employment disputes and emphasized the need for substantiated claims regarding undertakings.
The central legal point established in the judgment is the limited power of the authority under Section 33(2)(b) of the Industrial Disputes Act, 1947 and the need for the employee to raise an industr....
The court reaffirmed that a management's justified dismissal under the Industrial Disputes Act, after due process, cannot be disregarded by a Labour Court in subsequent proceedings.
The court emphasized the importance of considering the length of service and the delay in filing the reference in determining the adequacy of compensation in cases of industrial disputes.
The appointing authority has discretion in imposing punishment, and courts should interfere only in rare and appropriate cases.
The appointing authority has discretion in imposing punishment, but the court may interfere if the punishment is disproportionate to the charges, and may modify the punishment or remit the case to th....
The Labour Court's jurisdiction is limited to the terms of reference, and it may determine the issue of whether an individual is a 'workman' as defined in law within that framework.
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