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2023 Supreme(Ori) 606

ORISSA HIGH COURT, CUTTACK
B.R.SARANGI, MURAHARI SRI RAMAN, JJ.
Indian Oil Corporation Ltd. – Petitioner
Versus
Central Government Industrial Tribunal-cum-Labour Court & others – Opp. Parties 
W.P(C) No. 22036 of 2013
Decided On : 21-07-2023

Advocates Appeared:
For the Petitioners:Mr. S.K. Padhi, Sr. Advocate along with M/s. Debaraj Mohanty and P.K. Rout, Advocates.
For the Opp. Parties :Mr. S.S. Kashyap, Central Government Counsel, Mr. Banamali Sahoo (1), Advocate, Mr. P.K. Khuntia, Advocate.

The Tribunal lacks jurisdiction to summon a party not originally involved in the reference, and any notice issued under such circumstances is invalid.

Headnote:(A) Industrial Dispute Act, 1947 - Sections 10 and 25-F - Writ petition filed by Indian Oil Corporation Ltd. challenging notice and order by the Central Government Industrial Tribunal-cum-Labour Court - The petitioner contended that it was not a party in conciliation and the reference, thus notice issued was beyond jurisdiction. The Tribunal acted beyond its power by directing the petitioner to appear and file a written statement. (Paras 3, 10, 18)

(B) Jurisdiction of the Tribunal - The Tribunal must confine its adjudication to the points of dispute specified in the reference and cannot extend beyond them. The notice issued was quashed. (Paras 13, 16)

Facts of the case:
The petitioner entered a service contract for security and maintenance services. A dispute arose involving payment of terminal benefits to workers which led to a reference by the Central Government for adjudication. The petitioner was impleaded later in the proceedings.

Findings of Court:
The notice and order against the petitioner were found to be illegal and quashed as the petitioner was not originally involved in the dispute referenced to the Tribunal.

Issues: The main issues included whether the Tribunal had jurisdiction to summon the petitioner not originally involved in the reference case and whether the notice issued was justified.

Ratio Decidendi: The court ruled that the petitioner cannot be held liable without it being a party to the original proceedings and that the Tribunal should not exceed the terms of the reference made.

Result: Writ petition allowed.

Table of Content
1. petitioner's service contract details (Para 1 , 2)
2. argument on notice legality and party involvement (Para 4 , 5 , 6)
3. court's procedural observations on party notice (Para 7 , 8 , 9)
4. limits of tribunal's jurisdiction and reference (Para 10 , 11 , 12 , 13 , 14 , 15 , 16)
5. writ petition allowed; notice quashed (Para 17 , 18 , 19)

JUDGMENT :

B.R. SARANGI, J.

Indian Oil Corporation Limited, a Government of Indian Company as defined in Section 617 of the Companies Act, 1956, has filed this writ petition seeking to quash the notice dated 08.08.2013 under Annexure-9 issued by the Central Government Industrial Tribunal-cum- Labour Court in I.D. Case No. 25 of 2013 in pursuance of Reference No. L3011/6/2013-IR (M) dated 06.03.2013, and the order dated 14.08.2013 passed by the said Tribunal under Annexure-10.

2. The factual matrix of the case, in brief, is that a service contract, “for maintenance and general caretaking for Indian Oil staff quarters at Unit-IV, Officers’ Colony at Baramunda, Bhubaneswar and deployment of watchman at Guest House-cum-Transit at 54, Forest Park, Bhubaneswar”, was executed on 29.05.2009 between OM Security & Services and Indian Oil Corporation Ltd. Accordingly, the petitioner, vide its letter dated 16.5.2011, informed the Managing Director, OM Security & Services with regard to discontinuance of services for maintenance and general caretaking for Indian Oil staff quarters at Unit-IV, Officers’ Colony at Baramunda, Bhubaneswar and deployment of watchman at Gust House at 54, Forest Park, Bhubaneswar. On 10.01.2013, the Asst. Labour Commissioner (Central), Bhubaneswar sent a conciliation failure report to the Govt of India, Ministry of Labour & Employment, with regard to the dispute between the management of M/s. OM Security & Services, Bhubaneswar and All Orissa Private Security Karmachari Sangha. Such dispute, which was raised, has not whispered anything against the present petitioner.

2.1 The conciliation having been failed, the Central Government, in exercise of the powers conferred by clause (d) of Sub-section (1) and Sub-section (2A) of Section 10 of the Industrial Dispute Act, 1947, vide order dated 06.03.2013, referred the dispute to the Central Government Industrial Tribunal, Bhubaneswar for adjudication with the following reference:-

“Whether the action of management of M/s. OM Security & Services engaged by IOCL, Marketing Division, Bhubaneswar in not paying the terminal benefits to the workers as per section 25-F of I.D. Act, is legal and justified ? What relief the workmen are entitled to?”

2.2 Upon receipt of such reference, the All Orissa Private Security Karmachari Sangha filed its statement of claim by adding the present petitioner as 1st Party Management No.2. In the statement of claim, the prayer was made to the following effect:-

It is therefore prayed by the All Odisha Private Security Karmachari Sangha that the Hon’ble Court may graciously be pleased to direct the Principal Employer M/s. Indian Oil Corporation Ltd. to pay the pending, payable dues towards Terminal benefits @ Rs.34,140/- to each workman through their Contractor M/S. Om Security & Service-Management for the interest of social justice.”

2.3. The Central Government Industrial Tribunal- cum-Labour Court, Bhubaneswar issued notice to the IOCL on 08.08.2013 to appear on 14.8.2013 and file written statement. Again, vide order dated 14.08.2013, the learned Presiding Officer, CGIT-cum-Labour Court directed the petitioner to file written statement. Hence, this writ petition. 3. Mr. S.S. Padhi, learned Senior Advocate appearing along with Mr. Debaraj Mohanty, learned counsel for the petitioner contended that the very issuance of the notice dated 08.08.2013 to the petitioner calling upon it to appear on 14.08.2013 cannot be sustained in the eye of law, because the petitioner was not a party before the conciliation authority and even on reference also, the petitioner was not originally made a party in the reference

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