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  • INDUSTRIAL DISPUTES ACT
  • Sections 14 and 34 of the Specific Relief Act.
  • Section 2(s) of the Industrial Disputes Act;(ii)
  • Sec. 2(s) of the Industrial Disputes Act,
  • Sec. 14(1)(d) of the Specific Relief Act
  • Sec. 14 of the Specific Relief Act,
  • Section 18(1) of the I.D Act
  • Section 2(k),
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Citation Codes
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citation codes
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  • INDUSTRIAL DISPUTES ACT
  • Sections 14 and 34 of the Specific Relief Act.
  • Section 2(s) of the Industrial Disputes Act;(ii)
  • Sec. 2(s) of the Industrial Disputes Act,
  • Sec. 14(1)(d) of the Specific Relief Act
  • Sec. 14 of the Specific Relief Act,
  • Section 18(1) of the I.D Act
  • Section 2(k),
Smart Summary

Structured Summary of the Opinion (Jeevan Reddy, J.)

Factual and Procedural Background

The appellant, Sri B.V. Rao, was appointed as a Mechanical Maintenance Overseer on 8-11-1971 in the service of Willard India Ltd., Calcutta (Chittivalasa Jute Mills being a division). He was confirmed with effect from 1-4-1972. His services were terminated by Chittivalasa on 9-2-1983. The termination order did not follow any disciplinary enquiry but stated that the appellant's work was unsatisfactory and that the employer had lost confidence in him.

The appellant filed a civil suit (O.S. No. 299/1983) in the Principal Subordinate Judge, Visakhapatnam, seeking reinstatement with antecedent benefits or, alternatively, damages of Rs. 3,00,000. The employer contested the suit and pleaded that the suit was barred by Sections 14 and 34 of the Specific Relief Act. The trial court held the civil court had jurisdiction, found the termination wrongful, but held that Sec. 14 of the Specific Relief Act prevented the civil court from decreeing reinstatement; it awarded damages of three years' salary (Rs. 54,000) instead.

After the civil suit, the appellant raised an industrial dispute which was referred by the Deputy-Commissioner of Labour, Visakhapatnam, to the Labour Court (I.D. No. 11/1987). The Labour Court held the appellant was a “workman”, that he was not estopped from invoking remedies under the Industrial Disputes Act despite earlier civil proceedings, that the dismissal was wrongful, and that he was entitled to reinstatement with continuity of service but (in view of the civil decree) refused back wages for the intervening period. The Labour Court's award was delivered on 23-5-1988 and published on 18-6-1988.

Both parties filed writ petitions against the Labour Court's award: WP No. 10067/88 (employer) and WP No. 10648/88 (employee). The civil appeal AS No. 2611/86 (filed by the employer against the civil court judgment that denied reinstatement) and a Letters Patent Appeal were also part of the connected litigation. A learned single Judge (I. Panduranga Rao, J.) made findings (summarized below) which led to these Writ Appeals and a Letters Patent Appeal, and the present opinion addresses those appeals.

Legal Issues Presented

  1. Whether the suit filed by the appellant in the civil court was maintainable in the civil court.
  2. Whether the doctrine of election or estoppel arises when a workman has earlier pursued a civil remedy and later raises an industrial dispute under the Industrial Disputes Act.
  3. Whether the Industrial Disputes Act excludes the jurisdiction of the civil court by necessary implication in respect of matters and reliefs that can be granted by the courts/tribunals created by the Act.
  4. What principles govern the jurisdictional interplay between the civil courts and the Labour Court/tribunal under the Industrial Disputes Act.

Arguments of the Parties

Appellant's Arguments

  • The appellant (who argued in person) submitted he instituted the civil suit on the advice of his advocate and, as a layman, should not be punished for following that advice.
  • He argued that because the civil court could not have granted reinstatement (being barred under the Specific Relief Act), he should not be estopped from pursuing reinstatement before the Labour Court; reinstatement is a relief properly granted only under the Industrial Disputes Act.
  • He relied on several decisions (referred to in the opinion) in support of his position, including S.M. Saiyad v. Baroda Municipal Corporation which, he submitted, supports not penalizing a workman for approaching the civil forum on legal advice.
  • The appellant filed an affidavit undertaking not to pursue, enforce, or execute the civil court decree and undertook to pursue remedies under the Industrial Disputes Act only; he asked the Court to consider that affidavit and hold he was not precluded from pursuing the Industrial Disputes Act remedies.

Respondent-Employer's Arguments

  • The employer contended that by electing to pursue a civil remedy earlier, the appellant is estopped from invoking remedies under the Industrial Disputes Act (relying on the principles in Premier Automobiles v. K.S. Wadke).
  • The employer disputed the Labour Court's jurisdiction, arguing the appellant was not a “workman” within Section 2(s) of the Industrial Disputes Act, and therefore the reference I.D. No. 11/1987 was incompetent.
  • The employer also relied on the contention that the civil court suit should have been contested on jurisdictional grounds under the Industrial Disputes Act (which, it argued, might bar the civil suit). In the civil suit, however, the employer had contested only on merits rather than jurisdiction.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Premier Automobiles v. K.S. Wadke ((1976) 1 SCC 496; AIR 1975 SC 2238) Set out principles governing jurisdiction of civil courts vis-à-vis Industrial Disputes Act forums, especially: (1) non-industrial disputes belong to civil court; (2) where dispute arises under general/common law, civil jurisdiction is alternative and election must be made; (3) if dispute enforces rights created under the Act, only Act's remedy is available; (4) rights created under the Act must be enforced under Act-specific procedures. The Court applied these principles to hold that a workman who has elected to pursue an ordinary civil remedy (and obtained decree for the alternative relief) is precluded from subsequently invoking the Industrial Disputes Act remedies; the principle of election/estoppel was treated as decisive on maintainability of the Labour Court reference in the single Judge's earlier reasoning, and the Supreme Court discussed and relied on these principles in its analysis.
M/S. Austin Distributors (P.) Ltd. v. Nil Kumar Das (1970 Lab. & Ind. Cases 323 (Calcutta)) Authority for the proposition that a suit for recovery of damages for wrongful dismissal is maintainable in civil court even though a special remedy exists under the Industrial Disputes Act, where the dismissal is framed as violation of contract recognized under general law. The Court noted Supreme Court approval of this Bench decision and used it to support the proposition that civil courts retain jurisdiction to entertain suits for damages for wrongful dismissal arising under general law; it reinforced the application of principle (2) from Premier Automobiles.
Sitaram v. Pigment Cakes & Chemicals Mfg. Co. ((1979) 4 SCC 12; AIR 1980 SC 16) Confirms that civil courts can examine and grant compensation claims in suits for wrongful dismissal (though they cannot specifically order reinstatement), i.e., limited civil jurisdiction for alternative reliefs. The Court relied on Sitaram to reaffirm that a civil court may entertain a suit seeking compensation for wrongful dismissal even if specific relief of reinstatement lies with labour forums; used to support maintainability of the appellant's civil suit to the limited extent of damages.
Sukhi Ram v. State of Haryana (Full Bench) ((1982) 2 Lab. & Ind. Cases 1282) Applied principle (2) of Premier Automobiles: where rights arise under general law, workman has alternative remedies and must elect one; cannot pursue both forums. The Court cited the Full Bench decision as supporting the position that when rights arise under general law the workman may elect and that election precludes later invoking the Industrial Disputes Act remedies; used as precedent for upholding the election principle.
Banarsi Das v. State of Haryana ((1980) 2 L.L.J 394) Earlier Bench decision (overruled by Sukhi Ram Full Bench) holding civil court had no jurisdiction for such suits based on Second Schedule entry 3. The Court noted that the Full Bench in Sukhi Ram overruled this earlier decision; cited in the discussion of differing High Court precedents and the correct approach under Premier Automobiles.
Bargarb Co-operative Bank Ltd. v. Khetrapal Naik ((1977) 1 LLJ 403) Held (by a single Judge of Orissa High Court) that Section 2-A of the Industrial Disputes Act bars civil court jurisdiction to entertain suits questioning termination/dismissal of a workman. The Court rejected the ratio of this decision because it ran counter to Supreme Court authority (Premier Automobiles and Sitaram) and because Premier Automobiles was apparently not considered in that judgment.
Ramlal v. Labour Court, Patiala (Punjab & Haryana High Court) ((1986) 2 Labour Law Journal 231) Decision considered issues of maintainability and whether resort to civil courts precluded industrial reference; facts and concession made the decision of limited precedential value. The Court observed the decision but did not place reliance on it because it appeared to be based on a concession and the full reasoning was not before the Court; therefore no definitive application was taken from it.
Cochin Lighterage Corporation v. Paulabrao ((1974) 2 LLJ 206) Considered whether a civil court decision on a matter exclusively within tribunal jurisdiction operates as res judicata; held it does not because the civil court lacked jurisdiction. The Court regarded this authority as not directly relevant to the present case (where the civil court had jurisdiction to award damages) and therefore did not rely on it for the central issues.
S.M. Saiyad v. Baroda Municipal Corporation ((1984) Supp SCC 378; AIR 1984 SC 1829) Holds that a workman should not be penalised (e.g., denied back wages) for having acted on legal advice in approaching a civil court that ultimately lacked jurisdiction to grant certain reliefs; denial of back wages on that basis is not justified without relevant grounds. The appellant invoked this decision. The Court considered the principle (that litigants should not be penalised for relying on legal advice and for approaching the wrong forum) when dealing with the appellant's affidavit and conduct. The Court quoted the decision and took into account that the appellant had undertaken not to pursue the civil decree and sought to pursue remedies under the Industrial Disputes Act.

Court's Reasoning and Analysis

The Court undertook a step-by-step analysis that can be summarised as follows:

  1. Examination of the plaint in O.S. No. 299/1983 showed the appellant had not pleaded any violation of the Industrial Disputes Act; he framed a contractual wrongful termination suit and alternatively sought damages. The Court concluded the suit was maintainable in civil court to the extent of seeking damages even though the civil court could not specifically order reinstatement (because of the Specific Relief Act, Sec. 14).
  2. The Court considered whether by instituting the civil suit the appellant was precluded from later invoking remedies under the Industrial Disputes Act. It analysed the Supreme Court's decision in Premier Automobiles which sets out four principles governing civil jurisdiction vis-à-vis industrial forums. The Court treated principle (2) (where rights arise under general/common law, the civil court's jurisdiction is alternative and the suitor must elect) as especially relevant.
  3. The Court observed that the Labour Court, under the Industrial Disputes Act and the Second Schedule (Item 3), clearly has jurisdiction to entertain wrongful dismissal disputes and could award reinstatement or compensation. However, allowing a party to pursue both civil and labour remedies (simultaneously or consecutively) may create conflicting decisions and was discouraged by the election principle in Premier Automobiles.
  4. The Court reviewed other High Court authorities (including a Calcutta High Court Bench decision approved by the Supreme Court, and various High Court decisions which took differing views). It rejected decisions inconsistent with Supreme Court authority (e.g., the Orissa single-judge decision) and treated the Full Bench decisions (e.g., Sukhi Ram) as supportive of the election doctrine.
  5. The appellant relied on S.M. Saiyad to argue he should not be penalised for acting on his advocate's advice in approaching the civil court. The Court recorded the appellant's affidavit undertaking not to enforce the civil decree and noting he sought to pursue only Industrial Disputes Act remedies.
  6. Procedurally, because the civil suit was still pending as a Letters Patent Appeal preferred by the employer, and because the appellant sought to withdraw the suit, the Court permitted withdrawal of the suit and disposed of the Letters Patent Appeal as unnecessary. That withdrawal removed any objection to the Labour Court's maintainability in principle and allowed the Court to consider the writ appeals on merits.
  7. On the factual issue whether the appellant was a “workman,” the Court examined the Labour Court record and found there was both oral and documentary evidence supporting the Labour Court's finding that the appellant was a workman. The Court affirmed that factual finding.
  8. On relief, although the Labour Court had directed reinstatement (but had refused back wages in view of the civil decree), counsel for the employer before the Court offered to accept the Court awarding compensation in lieu of reinstatement. The Court found it appropriate in the facts and circumstances to award consolidated compensation of Rs. 1,50,000 with interest at 12% per annum from the date of reference (1-5-1987) until payment, with two months' time for payment.
  9. The Court addressed ancillary matters: the appellant was in occupation of a company quarter; the Court directed that half the compensation be paid unconditionally and the other half only after the appellant vacated the quarter (to be vacated within three months). Any pending suit regarding occupation must be withdrawn and the appellant undertook to do so.
  10. The Court expressly stated that the compensation award was determined in the particular facts and circumstances and would not serve as a precedent.

Holding and Implications

Holding (core ruling): The Writ Appeals were allowed to the extent indicated by the Court's orders. The Court (i) permitted the appellant to withdraw his civil suit (making the employer's Letters Patent Appeal unnecessary and disposed of it), (ii) affirmed the Labour Court's factual finding that the appellant is a “workman,” and (iii) awarded the appellant consolidated compensation of Rs. 1,50,000 with interest at 12% per annum from the date of reference (1-5-1987) until payment, with time for payment fixed at two months; half the compensation is payable immediately, the other half only after the appellant vacates the company quarter (to be vacated within three months).

Implications:

  • The appellant is not reinstated; instead, compensation in lieu of reinstatement was awarded and will be paid subject to the condition regarding occupation of the company quarter.
  • The Court emphasised the election principle between civil reliefs and remedies under the Industrial Disputes Act: where a workman elects to pursue civil remedies (and obtains decree for alternative relief), he is generally precluded from thereafter invoking remedies under the Industrial Disputes Act on the same subject-matter; however, procedural steps (withdrawal of civil suit) allowed this Court to consider the merits afresh in this case.
  • The award was expressly stated to be determined on the particular facts and not to operate as binding precedent.
  • Costs: the parties were directed to bear their own costs in all three matters.

Note: This summary confines itself to the facts, reasoning, and rulings as expressly set out in the provided opinion and does not add or infer additional facts or legal conclusions not contained therein.

    B.V. Rao v. Management Of Chittivalasa Jute Mills

    Jeevan Reddy, J.:— These two Writ Appeals arise from a common judgment delivered by a learned single Judge in Writ Petition Nos. 10067/88 and 10648/1988. The first mentioned writ petition was filed by the employer (who is the 1st respondent in these Writ Appeals), while the second-mentioned writ petition was filed by the appellant employee. In fact, the judgment of the learned single Judge also disposes of AS No. 2611/86, which too was filed by the employer. A Letters Patent Appeal has been preferred against it.

    2. The appellant, Sri B.V Rao, who argued these appeals in person, was appointed as a Mechanical Maintenance Overseer on 8-11-1971 in the service of Willard India Ltd., Calcutta. Chittivalasa Jute Mills is a Division of Willard. The appellant was confirmed in the service of Chittivalasa with effect from 1-4-1972, by order dated 26-6-1972. His services were terminated by Chittivalasa on 9-2-1983. The termination was not in pursuance of any disciplinary enquiry, though the order states that the work of the appellant has not been satisfactory, and that the employer has lost confidence in the employee-appellant. Thereupon, the appellant instituted a suit, OS 299/1983, on the file of the Principal Subordinate Judge, Visakhapatnam, seeking reliefs of reinstatement in service with, all antecedent benefits or, in the alternative, damages/compensation for wrongful termination, in a sum of Rs. 3 Lakhs. The employer (defendant) contested the suit. It sought to justify the termination as warranted by unsatisfactory service of the appellant. The employer also contended that the suit is barred under Sections 14 and 34 of the Specific Relief Act. The learned Prl. Subordinate Judge, Visakhapatnam, held that the Civil Court had jurisdiction to entertain the suit, that the termination of service of the appellant was wrongful, but that by virtue of Sec. 14 of the Specific Relief Act, the Civil Court cannot decree reinstatement of the appellant. The learned Subordinate Judge noted that the conditions of service of the appellant are not statutory, nor does Art. 311 of the Constitution apply to him. He also noted that no relief is claimed by the appellant under the Industrial Disputes Act. Accordingly, he held the appellant entitled only to damages for wrongful termination, which he fixed at three years' salary, which came to Rs. 54,000/-. The suit was, accordingly, decreed only for damages. After his suit was disposed of, and finding that the civil Court was unable to decree reinstatement, the appellant raised an industrial dispute, which was referred by the competent authority (viz., the Deputy-Commissioner of Labour Visakhapatnam) to the Labour Court, Visakhapatnam—I.D No. 11/1987. The appellant contended that his termination was wrongful and by way of penalty and that, therefore, he was entitled to reinstatement in service with all antecedent benefits. The employer resisted the proceedings contending that the appellant is not a ‘workman’ within the meaning of Sec. 2(s) of the Industrial Disputes Act, that he belonged to managerial/supervisory cadre, and that having elected to pursue his remedy in a civil court and also having obtained relief therefrom, he is estopped from invoking the provisions of the Industrial Disputes Act. The employer thus contested the very maintainability of the industrial dispute. After enquiry, the Labour Court held that the appellant is a ‘workman’; that he is not estopped from pursuing his remedies under the Industrial Disputes Act because of his resort to Civil Court earlier; that the dismissal was wrongful, and that, therefore, he is entitled to reinstatement in service, with continuity of service. However, in view of the decree obtained by the appellant from the civil court, the Labour Court thought that he is not entitled to back wages, or any other monetary benefits from the date of termination till the date of reinstatement. The award of the Labour Court was delivered on 23-5-1988, and published on 18-6-1988. It is against this Award of the Labour Court that both the employer and the employee filed two writ petitions, i.e, WP 10067/88 and WP 10648/88, respectively. These writ petitions were heard along with AS No. 2611/86, which was preferred by the appellant against the judgment and decree of civil court declining the relief of reinstatement.

    3. The learned single Judge, I. Panduranga Rao, J., arrived at the following findings:—

    (i) Applying the principles enunciated by Supreme Court in Premier Automobiles v. K.S Wadke (1) (1976) 1 SCC 496 : AIR 1975 SC 2238 it must be held that the employee having approached the civil Court, is estopped from invoking the remedies under the Industrial Disputes Act Having elected to pursue one of the two alternative remedies available to him, he must stand by it, and cannot prosecute both the remedies in two different forums. The Reference I.D No. 11/1987 was, therefore, incompetent. In this view of the matter, it is unnecessary to go into the correctness of the finding of the Labour Court that the appellant was a ‘workman’, within the meaning of Section 2(s) of the Industrial Disputes Act;

    (ii) so far as the judgment and decree of the civil Court is concerned, the finding of the trial Court that the termination is wrongful, is correct. Though the employee has not chosen to file an appeal against the judgment and decree of the civil Court, the damages awarded by the civil Court require a slight modification/enhancement. Instead of determining the damages at three years' salary, it must be determined at a sum equivalent to 3.33 years' salary, including the allowances admissible, on the basis of the last pay and allowances drawn by the appellant.

    4. On the above findings, the learned Judge allowed WP No. 10067/88 (preferred by the employer), dismissed WP No. 10648/88 (preferred by the employee), and modified the decree in AS No. 2611/86 (preferred by the employer). He directed the parties to bear their own costs in all the three matters. Questioning the said judgment the employee has preferred these two Writ Appeals, while the employer has preferred a Letters Patent Appeal.

    5. The appellant, who argued these appeals in person with commendable ability and sobriety, urged that the learned single Judge was not right in holding that the remedies available to the appellant under the Industrial Disputes Act are barred because of his approaching the civil Court earlier. He submitted that he approached the civil Court believing implicitly, the advice given to him by his advocate, and for that he should not be punished. He is a layman, unaware of the technicalities of law, and because the advocate advised him he instituted the suit, unaware of the fact that the civil Court would not, and could not, decree reinstatement in service. In any event, he submitted, he is not precluded from pursuing his remedies under the Industrial Disputes Act in so far as the relief of reinstatement is concerned, inasmuch as the said relief could not have been granted by the civil Court. Since the relief of reinstatement can be granted only by the Labour Court under the provisions of the Industrial Disputes Act, and not by the civil Court, the question of election or estoppel is out of place. He relied upon several decisions, to which we shall presently refer. The appellant also filed an affidavit before us undertaking not to pursue, enforce, and execute the decree obtained by him in civil Court, and preferring to pursue his remedies only under the Industrial Disputes Act. He requested us to take this affidavit into consideration and hold that he is not precluded from pursuing his remedies under the Industrial Disputes Act.

    6. On the other hand, the learned counsel for the employer-respondent sought to justify the finding of the learned single Judge on the question of jurisdiction of the Labour Court. He also submitted that the appellant was not a ‘workman’ within the meaning of Sec. 2(s) of the I.D Act, and for this reason also the reference of dispute to Labour Court is incompetent.

    7. On the first and the main question arising in these Writ Appeals, the following aspects need consideration; Whether the suit filed by the appellant in the civil Court, was maintainable in civil Court? Whether the question of election or estoppel arises in this case? Whether the Industrial Disputes Act excludes the jurisdiction of civil Court, by necessary implication in respect of matters and reliefs which can be granted by the Court/Tribunal created thereby? What are the principles governing the jurisdiction of civil Court vis-a-vis the Court/Tribunal created by the Industrial Disputes Act, in such matters?

    8. A perusal of the plaint filed by the appellant in O.S No. 299/1983 discloses that the appellant did not raise any contention based upon the provisions of the Industrial Disputes Act. There was no allegation that any of the provisions of the said Act were violated. It was a pure and simple suit complaining of wrongful termination, i.e, contrary to the terms and conditions contained in the contract of employment, and asking the relief of reinstatement. Alternatively, the relief of damages for wrongful termination was asked for. It, therefore, cannot be said that such a suit was not maintainable in a civil Court. There is no provision in the Industrial Disputes Act which, either expressly or by necessary implication, bars institution of such a suit in civil Court. It may be that by virtue of Sec. 14(1)(d) of the Specific Relief Act the civil Court may not enforce a contract of personal service: but that does not mean that the suit as filed was not maintainable in a civil Court. Only that the first relief could not be granted by it. Moreover, until and unless the issue ‘whether the termination is wrongful’ was answered in the affirmative, the civil Court Could not have granted any relief. The subject-matter of the suit was thus within the seizin of the civil Court. The question is whether by virtue of his instituting the said suit, the appellant is precluded by any rule of law from adopting the remedies provided by the Industrial Disputes Act?

    9. The Industrial Disputes Act has been enacted for investigation and settlement of industrial disputes in the interest of industrial peace. It is designed to protect, and promote the interests of workmen who, it was recognized, stand, generally speaking on a weaker footing vis-a-vis the employer. Labour Court is a creature of the Act. Though the powers of Labour Court are not specifically defined, it is well recognized that it is open to the Labour Coutr to grant such relief as it thinks appropriate in the circumstances of the case. It can grant the relief of reinstatement: it can award compensation in lieu of wrongful termination; it can reduce the punishment in a disciplinary enquiry, and so on. The matters within the purview of Labour Court are set out in the Second Schedule to the Act. Item 3 thereof reads:—

    “3. Discharge or dismissal of workman including reinstatement of, or grant of relief to workman wrongfully dismissed”.

    10. The word ‘discharge’, though not defined in the Act, is of wide amplitude and takes in any and every termination of service. Dismissal may be in pursuance of a disciplinary enquiry, or otherwise. It should also be remembered that the several items mentioned in Second and third Schedules are akin to the entries in the Seventh Schedule to the Constitution, and must be liberally construed. It is thus clear that the Labour Court had undoubted jurisdiction to entertain the appellant's grievance of wrongful termination, and could have awarded such relief as it thought fit in the circumstances, including the relief of reinstatement and back wages. The issue is whether this remedy available to the appellant is taken away from him because of his approaching the civil Court earlier to invoking the provisions of the Industrial Disputes Act? Before proceeding further, it is necessary to mention a factual aspect. In the suit, the employer-defendant did not object to the jurisdiction of the civil Court. It was not its case that by virtue of the provisions of the Industrial Disputes Act, the said suit is barred. It contested the suit only on merits.

    11. In Premier Automobiles v. K.S Wadke (1) (1976) 1 SCC 496 : AIR 1975 SC 2238, the suit was filed by a de-recognized Union of workers for a declaration that a certain settlement, arrived at between the employer and the recognized Union was not binding upon the plaintiff-Union and its members and for a permanent injunction restraining the employer from enforcing or implementing the said settlement with respect to the plaintiff, its members, and other workers who were not members of the recognized Union. The contention was that the said settlement arrived at under Section 18(1) of the I.D Act has been arrived at without following the mandatory requirements of Section 9-4 of the Act. The defendant-employer not only contended that the settlement is binding upon all the workers but also questioned the jurisdiction of the civil Court to entertain the suit. According to the employer, it was an industrial dispute which is outside the purview of the civil Court. This issue was ultimately taken to the Supreme Court. In paragraph 9 of its judgment, the Supreme Court observed:

    “It would thus be seen that through the intervention of the appropriate government of course not directly, a very extensive machinery has been provided for settlement and adjudication of industrial disputes (by I.D Act). But since an individual aggrieved cannot approach the Tribunal or the Labour Court directly for the redress of his grievance without the intervention of the government, it is legitimate to take the view that the remedy provided under the Act is not such as to completely oust the jurisdiction of the Civil Court for trail of industrial disputes. It the dispute is not an industrial dispute within the meaning of Section 2(k), or within the meaning of Section 2A of the Act, it is obvious that there is no provision for adjudication of such dispute under the Act. Civil Courts will be the proper forum. But where the industrial dispute is for the purpose of enforcing any right, obligation or liability under the general law or the common law and not a right, obligation or liability created under the Act, then alternative forums are there giving an election to the suitor to choose his remedy of either moving the machinery under the Act or to approach the Civil Court. It is plain that he cannot have both. He has to choose the one or the other. But we shall presently show that the Civil Court will have no jurisdiction to try and adjudicate upon an industrial dispute if it concerned enforcement of certain right or liability created only under the Act. In that event Civil Court will have no jurisdiction even to grant a decree of injunction to prevent the threatened injury on account of the alleged breach of contract if the contract is one which is recognized by and enforceable under the Act alone………”.

    12. After an elaborate consideration of several decisions of the Supreme Court and of English Courts, the Court enunciated the following principles in paragraph 23:—

    “To sum up, the principles applicable to the jurisdiction of the Civil Court in relation to an industrial dispute may be stated thus:

    (1) If the dispute is not an industrial dispute, nor does it relate to enforcement of any other right under the Act the remedy lies only in the civil Court.

    (2) If the dispute is an industrial dispute arising out of a right or liability under the general or common law and not under the Act, the jurisdiction of the civil Court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in a particular remedy.

    (3) If the industrial dispute relates to the enforcement of a right or an obligation created under the Act, then the only remedy available to the suitor is to get an adjudication under the Act.

    (4) If the right which is sought to be enforced is a right created under the Act such as Chapter V.A then the remedy for its enforcement is either Section 33C or the raising of an industrial dispute, as the case may be…”.

    13. Having enunciated the above principles, the Court proceeded to observe in paragraph 24 as follows:—

    “We may, however, in relation to principle 2 stated above hasten to add that there will hardly be a dispute which will be an industrial dispute within the meaning of Section 2(k) of the Act and yet will be one arising out of a right or liability under the general or common law only and not under the Act. Such a contingency, for example, may arise in regard to the dismissal of an unsponsored workman which in view of the provision of law contained in Section 2A of the Act will be an industrial dispute even though it may otherwise be an individual dispute. Civil Courts, therefore, will have hardly an occasion to deal with the type of cases falling under principle 2. Cases of industrial disputes by and large, almost invariably, are bound to be covered by principle 3 stated above…”

    14. Then, in the next two paragraphs they proceeded to refer to the decisions of the High Courts taking one or the other view. Inter alia, they approved a Bench decision of Calcutta High Court in M/S. Austin Distributors (P.) Ltd. v. Nil Kumar Das (2) 1970 Lab & Ind. Cases 323 in the following words:

    “We approve what has been said by a Bench of the Calcutta High Court in the case of M/S. Austin Distributors (P.) Ltd. v. Nil Kumar Das (1970 Lab. & Ind. Cases 323 (Calcutta)) that a suit for recovery of damages for wrongful dismissal, on the grounds which are clearly entertain able in civil court, would lie in that court even though a special remedy is provided in the Act in respect of that matter. This would be so on the footing that the dismissal was in violation of the contract of service recognized under the general law—”

    15. It is clear from the above observations that if the dispute is an industrial dispute arising out of a right or liability under a general or common law, the jurisdiction of the civil Court is not barred. But in such a case, the person concerned has to make a choice, either to seek his remedies in a civil Court, or to seek his remedies under the provisions of, and in the forums created by the Industrial Disputes Act. He cannot be permitted to pursue both the remedies, either simultaneously, or consecutively. If however, a person seeks to enforce a right or obligation created under the Act, his only remedy is the one provided by the Industrial-Disputes Act. The observations in paragraph 24 must be understood in their proper context. What the Court said in the said paragraph was that almost every industrial dispute arising between an employer and a workman would be an industrial dispute within the meaning of Section 2(k) and, therefore, can be agitated under the provisions of the ID Act. If so, it was observed, there would hardly be any occasion to deal with such types of cases in a civil Court. But, the said words cannot be read as militating against principle 2 enunciated in the preceding paragraph. The very fact that the Supreme Court approved the principle of the Bench decision of the Calcutta High Court in Austin Distributors, reinforces this view, indeed, the subsequent decision of the Supreme Court in Sitaram v. Pigment Cakes & Chemicals Manufacturing Co., (3) (1979) 4 SCC 12 : AIR 1980 SC 16 reaffirms the said position. That was a case where a workman instituted a suit in a civil Court for a declaration that his removal from service was illegal, and asking for his reinstatement with due benefits and advantages. In the alternative, he prayed that he may be awarded such compensation as the Court thinks appropriate. The defendant-employer disputed the jurisdiction of civil Court to entertain the said suit. When the matter came up before the Supreme Court it held thus:—

    “After having appreciated the entire facts and the circumstances of the case, we are of the opinion that it is not quite correct to say that the suit filed by the appellant is not maintainable at all in a Civil Court. The correct position of law is that the main reliefs asked for by him which when granted will amount to specific performance of the contract of service and therefore they cannot be granted. There are a number of decisions of this Court to that effect: to wit…But then in the alternative, the appellant had also prayed for awarding compensation to him. And reading the plaint as a whole, it can legitimately be culled out that he had made out a case-whether it was right on fact or not, that is a different question-that he was wrongfully dismissed from service. This relief could be granted by the Civil Court, if it found that the plaintiff's case was true. The High Court, in our opinion is not right in saying that no such case had at all been made out in the plaint. In our opinion, as we have earlier said, reading the plaint as a whole, such case can be spelt out. That being so, to this limited extent, the matter could be examined by the civil Court”.

    16. Accordingly, the matter was sent back to the trial Court for disposal in accordance with law.

    17. In Sukhi Ram… v. State Of Haryana… (4) (1982) 2 Lab. & Ind. Cases 1282 a Full Bench of Punjab and Haryana High Court considered the question “whether a civil Court has no jurisdiction to entertain a suit filed by a worker employed in a State Department Undertaking, whose service is protected by Art. 311 of the Constitution of India and who did not take any steps to have the dispute referred to a Labour Court, or a Tribunal under Section 10 of the Industrial Disputes Act?” Counsel for both the parties before the Court agreed that it was principle 2 of the four principles enunciated by the Supreme Court in Premier Automobiles (supra) that was attracted in that case. The ratio of the Full Bench decision is found in paragraphs 10 and 11, where it is stated:

    “Coming now to the second distinct category where the right or obligation giving rise to the industrial dispute springs from a source other than the Act - that is, under the general law (including therein any other statutes) then under principle (2) the workman is expressly given two alternative remedies. In such a case, it is in his discretion to either take resort to the ordinary jurisdiction of the civil Courts or to seek the remedies under the Act. However, he must distinctly elect his remedy. It is now authoritatively settled that he cannot have both. He is to choose one or the other.

    In the present case, as already noticed in para 6, it is the common case that the dismissal or removal of workmen here raises a dispute arising out of the rights or liabilities under the general or the common law. Once that is so, principle (2) of Premier Automobiles Ltd. case 1975 Lab. I.C 1651 (SC) (supra), would be at once attracted and the workmen would be entitled to elect either of the alternative remedies available to them. There is no dispute here that the workmen have not even remotely resorted to any of the remedies under the Act. No industrial dispute was sought to be raised on their behalf nor any reference claimed under Section 10 of the Act. They had straightaway made their election and chosen to agitate their rights in the civil Courts. Both on principle and binding precedent, therefore, they would be clearly entitled to claim relief by way of a civil suit…”.

    18. Accordingly, it was held that the civil Court did have jurisdiction if no steps had been earlier taken by the plaintiffs-workmen to resort to the remedies provided by the Industrial Disputes Act. The Full Bench overruled an earlier Bench decision of the same Court in Banarsi Das v. State of Haryana (5) (1980) 2 L.L.J 394, where it was held, on the basis of entry 3 In Second Schedule to the Act, that civil Court has no jurisdiction to entertain a suit of the present nature.

    19. We may in this connection refer to certain other decisions brought to our notice by the appellant. In Bargarb Co-operative Bank Ltd. v. Khetrapal Naik (6) (1977) 1 LLJ. 403 a single Judge of Orissa High Court has taken the view, that, by virtue of the provisions of the Industrial Disputes Act, and in particular Section 2-A thereof, the jurisdiction of civil Court to entertain a suit questioning the validity of termination/dismissal of a workman by an employer is barred by necessary implication. He held that the Labour Court alone has exclusive jurisdiction to entertain such a dispute. From a perusal of the judgment it does not appear that the decision of the Supreme Court in Premier Automobiles was brought to the notice of the learned Judge. Since the principle enunciated by the learned Judge runs counter to the said decision of the of Supreme Court, and also the subsequent decision in Sitaram v. Pigment Cakes & Chemicals Manufacturing Co., (3) (1979) 4 SCC 12 : AIR 1980 SC 16 we cannot accept the ratio of the said decision. The attempt of the appellant, of course, was to say that since the civil Court had no jurisdiction to entertain the suit, the question of choice, or for that matter, the question of estoppel, does not arise. The next decision cited by him is of Punjab & Haryana High Court in Ramlal v. Labour Court, Patiala (7) (1986) 2, Labour Law Journal, 231. In this case ‘the workman's service was terminated. He instituted a suit in a civil Court for a declaration that he continues to be in service of the employer-Bank, and that the order terminating his service was illegal and void. The learned Judge agreed that the order of termination was illegal, but held that the suit itself was not maintainable against the Bank, since it was neither a department of the Government, nor was a statutory body whose employees had statutory status. As that stage, the Union espoused the workman's cause, and the matter was referred to the Labour Court. The first issue before the Labour Court was whether the reference of the industrial dispute was incompetent. The Labour Court held, following the decision of the Supreme Court in Premier Automobiles, that the workman having elected to pursue his remedy in a civil Court, the reference was bad. On a writ petition filed by the workman, however, the High Court held that the Labour Court was in error in holding that the reference was bad. Indeed, the employer-Bank appears to have conceded the said aspect before the High Court-However, the learned single Judge dismissed the writ petition on another question, viz., that the reference not having been made by the appropriate Government, was incompetent. Against the said decision, a Letters Patent Appeal was filed, and the only question considered in appeal was: which is the appropriate Government? Evidently the appellant cited this decision to rely upon the opinion of the learned single Judge incorporated therein. But, since the decision is said to have been made upon a concession, and also because we do not have the full decision of the learned single Judge before us, we need express on opinion thereon.

    20. Another decision cited by the appellant is in Workmen, Cochin Lighterage Corporation v. Paulabrao (8) (1974) 2, LLJ 206 a decision of a Division Bench of Kerala High Court. But, the main question there was whether the decision of a Civil Court in respect of a matter exclusively within the jurisdiction of Industrial-Tribunal, will operate as res Judicata? It was held that, it does not, for the reason that Civil Court had no jurisdiction to entertain the dispute. We do not think this decision is of any relevance herein.

    21. On the above principles, it must be held that the appellant herein having elected to institute a suit in a civil Court and having obtained a decree for the alternative relief claimed by him-though not for the first relief-is precluded from pursuing his remedies under, and in accordance with the provisions of the Industrial Disputes Act. It is not correct to say that inasmuch as the civil Court had no power to grant reinstatement, the remedy under the Industrial Disputes Act is open in so far as the relief of reinstatement is concerned. The jurisdiction of the civil Court or the Labour Court, depends upon subject-matter of the dispute. The subject-matter of the suit in a civil Court, or the subject-matter of the dispute raised in the Labour Court in this case, is whether the termination of the appellant's service was wrongful or not. It is not as if the Labour Court would necessarily grant the relief of reinstatement on being satisfied that the termination is wrongful. Even the Labour Court has a discretion in the matter having regard to the circumstances of the case it may award reinstatement, or such compensation as it thinks appropriate in lieu of reinstatement. Moreover, by allowing a party to pursue his remedies in both the civil Court and the Labour Court - whether simultaneously or consecutively-there is a likelihood of conflict of decisions. It is quite possible that in such a case, the civil Court may say that the termination is wrongful while on those very facts the Labour Court may say that it is not wrongful, or vice versa. It is true that if the matter comes before the Labour Court, the Labour Court will examine the validity of the termination not only in accordance with common law but also in the light of the provisions of the Industrial Disputes Act; but, that is beside the point. Even on the same facts, there is a possibility of the two Courts coming to opposite conclusions, if the parties are allowed to pursue both the remedies. That is why, in our opinion, the Supreme Court expressly spoke of an option of a choice, in the matter, as is evident from principle No. 2 and the observations in paragraph 9 of the judgment in Premier Automobiles.

    22. The appellant brought to our notice the decision of the Supreme Court in S.M Saiyad v. Baroda Municipal Corporation Baroda. (9) 1984 Supp SCC 378 : AIR 1984, SC 1829. The appellant-employee therein was dismissed from service. He approached a civil Court for the relief of reinstatement on the ground that his dismissal was invalid. He failed to get any relief from the civil Court, where-after he raised an industrial dispute which was referred to Labour Court. The Labour Court found that his dismissal was invalid, and directed reinstatement: but, it declined to grant back wages. On a writ petition filed by the workman, the High Court granted the relief of back wages for a part of the period. But what is relevant is that it refused back wages for the period during which the appellant-workman was seeking relief of reinstatement in a civil Court. The High Court was of the opinion that since the workman was pursuing proceedings in a civil Court which had no jurisdiction to grant the relief of reinstatement, the employer should not be burdened with back wages in respect of the said period too. When the matter came up before the Supreme Court, the correctness of the basis upon which the High Court refused back wages for part of the period, was questioned. The Supreme Court dealt with the said argument in the following words;

    “…… When the appellant was dismissed from service he was not a qualified lawyer. He must have sought assistance and advice from a qualified legal practitioner and then approached the Civil Court for relief of reinstatement. The appellant must have gone in search of justice to a forum to which he must have been advised to approach but ultimately because of complexities of the justice system it transpired that he cannot get relief from the forum. He cannot be faulted for this outcome of technicalities of jurisdiction. Now if on this account the appellant is declined back wages he suffers double jeopardy through no fault of his, in that not only all wages are directed (deleted?) but also delay occurred in getting reinstatement. Is this denial justified when the appellant could not be blamed for approaching a forum under competent legal advice? This would amount to imposing a penalty which with respect to the High Court the appellant did not deserve. On this lean ground we find it difficult to depart from the normal rule that on dismissal order being found to be invalid and the direction for reinstatement having been given the workmen would be entitled to full back wages, unless the same can be denied on some relevant grounds. We are of the opinion that the denial of back wages for a portion of period for the reason that he was prosecuting remedy in a wrong forum would not be a relevant consideration for refusal of back wages…..”

    23. The appellant tries to bring himself and his case within the principle of the said decision by filing an affidavit before us. The affidavit filed by him, in so far as it is relevant, reads as follows:—

    “2. I hereby undertake to pursue the reliefs under Industrial Disputes Act only but not under civil law in connection with the cases against illegal termination of my employment by the 1st respondent-Management.

    3. I humbly submit that I have already affirmed the above statement while raising the industrial dispute before the Asst. Commissioner of Labour Visakhapatnam (para 12 on page 47 of material papers) and before his Lordship the Hon'ble Mr. Justice Upendralal Waghray while vacating the stay of WVMP No. 1518/88 and again before his Lordship the Hon'ble Mr. Justice Quadri in CMP No. 15894 of 1988 (page No. 140 to 143 of material papers) where their Lordships were pleased to direct the Management to withdraw the amount deposited by them in the Civil Court basing on my above statement.

    4. I therefore pray this Hon'ble Court may be pleased to allow the Writ Appeals reinstating me into service with all attendant benefits, and pass such other order or orders as this Hon'ble Court may deem fit and proper in the circumstances of the case…..”.

    24. Now, fortunately for the appellant the civil suit filed by him is still pending in this Court in the form of a Letters Patent Appeal. The said appeal has been preferred by the employer, though it has not yet been numbered. We sent for the records in the L.P.A, and the appellant (plaintiff in the said proceedings) has requested us to permit him to withdraw the said suit. In the circumstances of the case, we permit him to withdraw the suit. Inasmuch as the suit itself has been withdrawn, the Letters-Patent Appeal preferred by the employer has become unnecessary, and is disposed of as such. There shall be no order as to costs in the Letters Patent Appeal No. 335/89.

    25. The withdrawal of the suit leaves the way open for this Court to dispose of the Writ Appeals on merits. In such a situation, there can be no objection to the maintainability of the dispute in the Labour Court under the provisions of the Industrial Disputes Act. Accordingly, we proceed to deal with the Writ Appeals on merits.

    26. It is urged by the respondent-employer that the appellant herein is not a ‘workman’. This controversy was raised before the Labour Court which has, on an elaborate examination of the material placed before it, come to the conclusion that the appellant is a workman. It is a finding of fact. Counsel for the respondent-employer however, submitted that the said finding is based on no evidence and must, therefore be interfered with by way of certiorari. We have perused the judgment of the Labour Court, and we are unable to say that there is no evidence to support the finding of the Labour Court. There was both oral and documentary evidence on the said issue, and since the appellant's evidence remained practically un-rebutted, the Labour Court chose to accept the same. Nor are we impressed by the argument that the said finding is perverse. Accordingly, we affirm the finding of the Labour Court that the appellant is a ‘workman’.

    27. Counsel for the respondent-employer lastly submitted that in case this Court agrees with the finding of the Labour Court that the termination was wrongful, it may award appropriate compensation to the appellant instead of reinstating him in service. He submitted that having regard to the past service of the appellant and all other relevant facts and circumstances of the case, this Court may not order reinstatement. He expressed his readiness to abide by such amount of compensation as this Court may determine in lieu of reinstatement. It is stated that the appellant had still eighteen years of service to go from the date of termination. We must, however, also take into account the expense the employer has been put to in defending the proceedings initiated by the appellant in Civil Court. Having regard to the facts and circumstances of the case, we think it appropriate that the appellant be awarded appropriate compensation in lieu of reinstatement. Having regard to the length of service shall left for the appellant and the pay drawn by him at the time of his termination, we determine the compensation at the consolidated figure of Rs. 1,50,000/-. The appellant shall also be entitled to interest on the said amount at the rate of 12% per annum from the date of reference i.e, 1-5-87 till the date of payment. Time for payment two months from today. The amount of Rs. 11,000/- paid, pending the writ petitions (in pursuance of the intension orders of this court) shall not be taken into account which complying with the direction to deposit the compensation amount.

    28. We may make it clear that the above compensation has been determined by us in the particular facts and circumstances of this case, and having regard to the stand taken by the employer, and shall not serve as a precedent.

    29. The Writ Appeals are allowed to the extent, and in terms indicated above. We direct the parties to bear their own costs in all the three matters.

    30. These appeals having been set down for being mentioned on 18-9-89 upon perusing the grounds of Appeals, the Judgment of this Court dt. 13-9-1989 and passed herein and upon hearing the arguments of the counsels appearing on behalf of the partner the Court delivered the following Judgment: After the judgment was pronounced it was brought to our notice that the appellant is in occupation of the quarter belonging to the Company, which was allotted to him while he was in service. He his been continuing in possession of the said quarter. Indeed he has also filed a suit and some orders have been obtained from the Civil Court prosecuting the possession of the appellant. Be that as it may, now that by virtue of this judgment, all connections between the employee and the employer is coming to an end with the payment of compensation determined by us, the appellant has no right to continue in occupation of the said quarters Accordingly we direct that out of the amount directed to be paid to the appellant, half the amount shall be paid unconditionally but the other half shall be paid only after he vacates the quarter. He shall vacate the quarter in any event within three months from today.

    31. If any suit instituted by the appellant is pending with respect to his right to be in occupation of the said quarter the same shall be withdrawn by him. The appellant undertakes to that effect.

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