ALLAHABAD HIGH COURT
S.N. Srivastava, J.
Laxmi Palace (Cinema) through its Partner Sri Mukund Lal
Versus
Presiding Officer, Labour Court, District Magistrate, Additional Labour
Civil Misc. Writ Petition 28460 of 1997
Decided On : 24 February 2005
Civil Misc. Writ Petition 28460 Of 1997
Labour Court - U.P. Industrial Disputes Act, 1947 - Section 4 K - Rule 16 of U.P. Industrial Disputes Rules, 1957 - Range Forest Officer v. S. T. Hadimani, C and M. D. Tamin Ltd v. P. O., Indl. Tribunal, Anil Sood v. Presiding officer, Labour Court II, Agra Electric Supply Company v. Labour Court - Failure to give reasons amounts to denial of justice - Award rendered without application of mind
Fact of the Case:
The case involves a challenge to an award rendered by the Labour Court Varanasi pursuant to a reference under Section 4 K of the U.P. Industrial Disputes Act, 1947. The petitioner-employer failed to file a written statement within the specified time, leading the Labour Court to proceed ex parte and render the award. The petitioner challenged the award on grounds of lack of discussion of the materials on record and non-conformity with the provisions of the U.P. Industrial Disputes Act, 1947 and Rules made thereunder.
Finding of the Court:
The court found that the award was rendered without application of mind and was bereft of any discussion on the merit of the claims of the workman. It held that failure to give reasons amounts to denial of justice and that the Labour Court should have examined the merit of the claims and recorded reasons for its conclusions. As a result, the award was quashed and the matter was remanded to the Labour Court for a fresh decision.
Issues: The key issue was whether the Labour Court was required to decide the question on merit based on the materials on record, despite the employer's failure to file a written statement and the Labour Court's decision to proceed ex parte.
Ratio Decidendi: The court emphasized the importance of providing reasons for decisions, stating that failure to do so amounts to denial of justice. It also highlighted the requirement for the Labour Court to examine the merit of claims and record reasons for its conclusions, even in cases of ex parte proceedings.
Final Decision: The writ petition succeeded, and the award dated 3. 6. 95 was quashed. The matter was remanded to the Labour Court for a fresh decision after affording the petitioner-employer an opportunity to file a written statement.
( 1 ) SUBJECT matter of impugnment in the instant petition is the Award dated 3. 6. 1995 rendered by the Labour Court Varanasi pursuant to Reference No. 105 of 1992 made under Section 4 K of the U. P. Industrial Disputes Act, 1947 in which Industrial Dispute referred was "whether the employers have wrongfully terminated the services of Employee Sri Lalji Pandey son of Sri Dev nath Pandey, Booking Clerk with effect from 8. 12. 1990 and if so, what relief/compensation he is entitled to get?"
( 2 ) IT would appear from the record that the petitioner-employer entered appearance through his representative on 7. 7. 1992. on which date time was sought to file written statement on behalf of the petitioner employer. On 21. 10. 1994, time was again granted to the representative of the petitioner fixing 15. 12. 1994 and again upto 3. 2. 1995. Again, time was granted on 2. 3. 1995 fixing 28. 4. 1995. It would further appear that in the meantime representative of the petitioner reclused himself and as a consequence notice was issued to the petitioner employer on 1. 5. 1995, which it is alleged was served to the petitioner on 10. 5. 1995. In this conspectus, the Labour court proceeded exparte and rendered the award dated 3. 6. 1995.
( 3 ) LEARNED counsel for the petitioner assailed the impugned award stating that it is unsustainable on grounds that there is no decision or adjudication even of claims of the workman in the award on merit inasmuch as there is no discussion at all of the materials on record. He further canvassed that even if the Labour Court was inclined to proceed exparte, it was under a duty to analytically examine the materials on record and record reasons for his conclusions. The learned counsel further argued that the award is telescoped into very few paragraphs and contains no discussion on merit and hence, it being not in conformity with the provisions of the U. P. Industrial Disputes Act, 1947 and Rules made there-under , renders itself liable to be quashed. Per contra, Smt. Sarita Jhingan strove hard to prop up the award urging that the Labour Court had repeatedly afforded opportunity from 1992 onwards and being satisfied that the petitioner was evading appearance, was constrained to proceed exparte. She also tried to convince that it was not necessary for the Labour Court to delve into details and ultimately contended that the award was rightly passed.
( 4 ) THE short and substantial question that crops up for consideration is whether it was incumbent upon the Labour Court to decide the question on merit on the basis of materials on record notwithstanding the fact that the employer had not filed any written statement within the time fixed and there was order of the Labour Court to proceed exparte.
( 5 ) IN connection with the aforestated question, Rule 16 of the U. P. Industrial Disputes Rules, 1957 may be referred to. Clause (1) of Rule 16 clearly envisages that if on the date fixed or on any other date to which the hearing maybe adjourned, any party to the proceedings before the labour Court or Tribunal or an Arbitrator is absent, though duly served with summons or having the notice of date of hearing, the Labour Court or Tribunal or the Arbitrator, as the case may be, may proceed with the case in his absence and pass such order as it may deem fit and property. Rule 10 (9) of the Rules framed under Central Industrial Disputes, bears close similarity with the provisions of Rule 16 of the U. P. Industrial Disputes Rules, 1957 and mandates on similar lines. There is no gain-saying that the Labour Court is invested with power to proceed exparte in the circumstances embodied therein but the question remains whether the award which is not supported with reasons or discussion could have the complexion of an award on merit. In connection with this question, I would first delve into the cases cited across the bar.
( 6 ) THE first case cited by the learned counsel for the petitioner is Range Forest Officer
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