IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
G.P. Singh and M.L. Malik, JJ.
Bhilai Steel Employees Association, Bhilai and another
Vs.
A.W. Kanmadikar Judge, Industrial Court, Madhya Pradesh, Indore (Arbitrator) and another
M.P. No. 421 of 1972
Decided On: 24.08.1973
(2) Industrial Relations Act, 1960 (MP) - Ss. 26, 27 & 28 - who may appear in proceedings under the Act - discretion of the Labour Court and Industrial Court - Constitution of India - Arts. 226 & 227.
The scheme of sections 26, 27 & 28 of the M.P. Industrial Relations Act, 1960, goes to show that they provide for representation of employees in any proceeding under the Act and in any such proceeding an employee himself cannot appear and the Representative Union for the industry to which he belongs has a preferential right of representation, but the Industrial Court or the Labour Court has a discretion to permit an employee to appear before it in the interest of justice. [Para 8
A proceeding under Articles 226 and 227 of the Constitution cannot be said to be a proceeding under the Act. A petition under Articles 226 and 227 is an original proceeding in the High Court, though it may seek for quashing of an order of the Industrial Court or Labour Court made in a proceeding taken under the Act. Such a proceeding in the High Court is quite independent of the original controversy and cannot be understood to be a continuance of the proceeding taken before the Industrial Court. AIR 1966 SC 1445 relied on.
Therefore, sections 26 to 28 of the Act, which govern the mode of representation of employees in a proceeding under the Act, cannot apply to a proceeding begun by a petition under Articles 226 and 227 of the Constitution in the High Court. If the petitioners are affected by the order of the Industrial Court, they will have sufficient interest to move the High Court for interference under Articles 226 and 227.
An individual worker who is aggrieved by an award or order passed under the Madhya Pradesh Act can invoke the jurisdiction of the High Court under Articles 226 and 227, 1969 JLJ 68 relied on. 1970 (3) SCC 890 & SCLJ Vol. I, p. 237 distinguished. [Para 9
(3) Constitution of India - Arts. 226 & 227 - petitioners having opportunity to question the validity of an agreement in the subordinate Court - not questioning the existence or validity of the agreement there - cannot question it in writ petition. [Para 13
(4) Industrial Relations Act, 1960 (M.P.) - Ss. 98 & 33 - agreement - can be reached during pendency of a reference - dispute terminates even if the agreement merely provides for adjudication by private arbitration.
An agreement can be reached during the pendency of a reference on the matters covered by the reference. [Para 14
Section 98 of the Act does not exclude an agreement by which the parties decide upon the machinery by which the dispute is to be settled thereby bringing an end to the reference pending before the tribunal. Such an agreement is not prohibited by any provision of the Act and if consent to it is not obtained by fraud, mistake etc., the tribunal before which the industrial dispute is pending must give effect to it. AIR 1964 SC 160 referred to. Difference of opinion in respect of the Central Act in 1969 JLJ 68 and 1969 JLJ 1095 pointed out. [Paras 16 and 17
G.P. Singh, J.
This order shall dispose of Miscellaneous Petitions Nos. 421 and 460 of 1972.
These two petitions under Articles 226 and 227 of the Constitution are directed against two orders of the Industrial Court, Indore, passed on August 5, 1971 and April 17, 1972. The facts are that the Bhilai Steel Plant, which is an undertaking of Hindustan Steel Limited (a company in the public sector), introduced an incentive bonus scheme with effect from December 1, 1961 for some categories of workmen which in 1964 was extended to certain other categories. The workmen's demand, however, was that the scheme should be applied to all employees who are directly and indirectly contributing in the production and that the same should be made applicable from December 1, 1961. The Steel Workers Union, which is the representative union of employees, therefore, after the usual notice of change and failure of negotiations and conciliation, made a reference to the Industrial Court under section 52 of the Madhya Pradesh Industrial Relations Act, 1960, for arbitration of the following industrial dispute:
Whether all categories which are directly and/or indirectly contributing in the production bonus scheme such as ministerial staff, B.T.I. Staff and others should be brought within the scheme and paid incentive (production) bonus with retrospective effect i.e. with effect from 1-12-1961 of the appropriate group.
During the pendency of the said reference, a committee called the Joint Wage Negotiating Committee consisting of representatives of employers and employees in the steel industry was constituted at the national level for a final settlement on the wage structure and other conditions of service of employees in the industry. An agreement was reached by this committee which was incorporated in a memorandum of agreement dated October 27, 1970. Under clause 2-4 of this agreement it was decided to set up a Standardization Committee for completing the work of standardization. Clause 6-1 of the agreement deals with Incentive/Production bonus and it reads as follows:
6-1 Incentive/Production Bonus. The workers representatives demand that incentive/production bonus should be paid to all the employees and on the revised wages. The employers do not accept this contention and they have further stated that the industry is unable to undertake the additional financial burden on account of incentive/production bonus payment unless there is a rise in the level of productivity. However, it is agreed that:
(a) Some marginal increase in incentive bonus on account of the revision of the schemes at the current level of productivity cannot be ruled out.
(b) In the meanwhile incentive production bonus shall continue to apply as hitherto to those employees who are covered by such schemes. The question of extension of incentive bonus scheme to other categories of workers will be referred to Standardization Committee set up under clause 2-4 of the Agreement.
(c) In case any worker in the bonus group is transferred to non-bonus group his total emoluments including the average incentive bonus earned by him during the preceding twelve months will be protected.
On April 29, 1971 an application was made before the Industrial Court on behalf of Bhilai Steel Plant narrating the agreement reached by the Joint Wage Negotiating Committee at the national level and alleging that the terms of that agreement have been accepted by an agreement reached between the parties to the reference, i. e. the management and the Steel Workers Union. Copies of the two agreements were annexed to the application. It was contended in the application that the subject-matter of the reference was fully covered by the said agreements and that (he dispute no longer survived. It was prayed in the application that the reference be brought to an end on the ground that it had become in fructuous in view of the agreement reached between the parties. In the alternative it was prayed that an award in terms of clause
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