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IN THE HIGH COURT OF ALLAHABAD
Yashodanandan P. S. Gupta, JJ.
INDIAN EXPLOSIVE LTD.(FERTILISER DIVISON) - Appellant
Versus
STATE OF U.P. - Respondents
. . Of .
Decided On : 05/07/1981
INDUSTRIAL DISPUTES ACT, 1947 - SECTION 4-K - REFERENCE OF INDUSTRIAL DISPUTE - POWER OF STATE GOVERNMENT - SCOPE AND EXTENT - PRINCIPLES OF NATURAL JUSTICE - APPLICABILITY - LEGITIMATE EXPECTATIONS OF EMPLOYER - MEANING AND SCOPE - SETTLEMENT OF DISPUTE - MEANING AND SCOPE - INDUSTRIAL DISPUTE - CONTINUANCE - FACTORS TO BE CONSIDERED.
Fact of the Case:
The petitioner, an industrial establishment, challenged the reference of an industrial dispute to the Industrial Tribunal by the State Government under Section 4-K of the Industrial Disputes Act, 1947. The dispute related to the dismissal of 16 workmen, which had been the subject of a settlement between the petitioner and the workmen, and a subsequent review order by Sri B.B. Lal, Adviser to the Governor. The petitioner contended that the Government had no jurisdiction to make the reference since the dispute had been resolved and that the principles of natural justice had been violated as it was not given an opportunity to be heard before the reference was made.
Finding of the Court:
The Court held that the State Government had the power to make the reference under Section 4-K even though it had earlier declined to do so, and that the principles of natural justice did not apply to the decision to make the reference. The Court also held that the settlement between the petitioner and the workmen was not a settlement within the meaning of the Act and that the industrial dispute continued to exist. The Court further held that the State Government had applied its mind to the relevant facts before making the reference and that there was no failure to exercise jurisdiction.
Issues: 1. Whether the State Government had the power to make the reference under Section 4-K of the Industrial Disputes Act, 1947, even though it had earlier declined to do so? 2. Whether the principles of natural justice applied to the decision to make the reference? 3. Whether the settlement between the petitioner and the workmen was a settlement within the meaning of the Act? 4. Whether the industrial dispute continued to exist? 5. Whether the State Government had applied its mind to the relevant facts before making the reference?
Ratio Decidendi: 1. The power to make a reference under Section 4-K of the Industrial Disputes Act, 1947, is not exhausted when the Government has declined to make a reference at an earlier stage. The Government can reconsider its decision and make a reference if it is satisfied that there are relevant considerations for doing so, such as the continued existence of the dispute and the wisdom of referring it in the larger interest of industrial peace and harmony. 2. The principles of natural justice do not apply to the decision to make a reference under Section 4-K of the Act. The decision is an administrative one and does not directly affect the civil rights of the parties. The parties have a right to be heard before the Industrial Tribunal or the Labour Court when the adjudication case comes up for hearing. 3. A settlement between the parties to an industrial dispute is not a settlement within the meaning of the Act unless it resolves the issues in dispute and is registered in accordance with the requirements of Section 6-B of the Act. 4. An industrial dispute continues to exist if it has not been resolved in any of the manners contemplated by the Act, even if there has been a settlement between the parties. 5. The State Government must apply its mind to the relevant facts before making a reference under Section 4-K of the Act. However, the Court will not interfere with the Government's decision unless it is shown that there was a failure to exercise jurisdiction.
Final Decision: The Court dismissed the petition with costs to the opposite parties.
( 1 ) THE Indian Explosives Limited is a public Limited Company registered under the Companies act, 1956, and is engaged in the business or manufacture and sale of explosives and fertilisers. The petitioner before us is its Fertilizer Division having its factory at Panki, Kanpur. By means of this petition under Article 226 of the Constitution, the petitioner prays for writ in the nature of certiorari or any other writ, direction or order to quash and or set aside the Reference Order made by respondent No. 1, the State of Uttar Pradesh, dated 6th September, 1977, and the order of respondent No 2, the Industrial Tribunal III, Uttar Pradesh, Kanpur, dated 18th December, 1978 disposing of certain issues framed as a consequence of the written statement filed by the petitioner raising certain preliminary objections.
( 2 ) THE material facts on the basis of which this petition is based are that disciplinary proceedings were commenced by the petitioner against 16 of its workmen, 11 of whom having been impleaded as respondents 4 to 14 in this petition. The workmen did not appear at the domestic enquiry and consequently on the basis of the ex parte findings recorded during enquiry proceedings, orders for dismissal were passed against all the 16 workmen. An industrial dispute having been raised, by an order dated 12th June, 1973 respondent No. 1, referred to the Industrial tribunal 1, Allahabad, certain issues between the petitioner and its workmen including the propriety of the dismissal of the aforesaid 16 workmen. During the pendency of the aforesaid reference, the petitioner and its workmen entered into what has been described as a "settlement" on the 16th July, 1973 duly signed by the parties including the dispute regarding the dismissal of the 16 workmen. The settlement, inter alia, provided that the question whether the termination of the services of the aforesaid 16 workmen was justified and or legal would be referred to Sri B. B. Lal, Adviser to the Governor, U. P. and "his findings will be binding on both the parties. The so-called Settlement further provided that both the parties would submit a petition to the State government to withdraw the Adjudication Case No. 4570 dated 12th June, 1973 in respect of issues covering dismissal and lay-off of the workmen aggrieved. The Settlement is purported to have been registered in accordance with the requirement of Section 6 B (3) of the U. P. Industrial disputes Act, 1947 (hereinafter referred to as the Act) on the 31st July, 1973. Pursuant to the joint application by the petitioner and its workmen, respondent No. 1 by means of an order dated 27th August, 1973, withdrew the dispute referred to it from the Tribunal seized of the Reference. Nonetheless, perhaps because the order of the State Government had not been communicated to the Industrial Tribunal, it passed an ex parte Award dated 27th August, 1973 to the effect that the petitioner was Justified in dismissing the 16 workmen. On the 25th September, 1977, the government of Uttar Pradesh stayed the enforcement of the above mentioned Award and subsequently on the 26th September, 1973 rejected the same. Sri B. B. Lal started reviewing the orders regarding the dismissal of the 16 workmen as contemplated by the Settlement relied upon by the petitioner. It is stated that the hearings held by Sri B. B. Lal on various dates the representatives of the petitioner as well as 16 workmen affected, the Labour Union and also the labour Department of the Government of Uttar Pradesh were present. It is alleged that the 16 workmen including respondents Nos. 4 to 14 and the Union (respondent No. 3) which has espoused their cause, unreservedly participated in the proceedings and raised an objection to the competence or jurisdiction of Shri B. B. Lal to decide the matter referred. On the 8th November, 1973, Sri B. B Lal passed an order giving findings regarding the dispute and held that the dismissal of 11 out of the 16 workmen was ju
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