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  • S. 10(2) of the Industrial Disputes Act, 1947 (Central Act XIV of 1947)
  • 28 of the Madras Industrial Disputes Rules, 1958,
  • S. 10(2) of the Industrial Disputes Act, 1947,
  • INDUSTRIAL DISPUTES ACT
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Citation Codes
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citation codes
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  • S. 10(2) of the Industrial Disputes Act, 1947 (Central Act XIV of 1947)
  • 28 of the Madras Industrial Disputes Rules, 1958,
  • S. 10(2) of the Industrial Disputes Act, 1947,
  • INDUSTRIAL DISPUTES ACT
Smart Summary

Factual and Procedural Background

This appeal was brought by the Management against an order of Palaniswamy, J. The learned judge had quashed an order of the Presiding Officer, Labour Court, Coimbatore, and directed restoration to the Presiding Officer's file of a reference made by the State Government by G.O. Rt. 340, Department of Industries, Labour and Housing dated 24 February 1968. The reference had been made under S. 10(2) of the Industrial Disputes Act, 1947 on a joint application by the management of the Vellamalal estate, Valpari, and the workmen represented by the Secretary of the estate staff' Union of South India, Coimbatore.

The question referred was whether the non-employment (termination) of George Vaz (box maker), effective 15 July 1966, by the management for alleged misconduct was justified, and if not, what relief he was entitled to, including computation of monetary relief. The workmen alleged the termination was unsustainable. In its objection statement the Management denied that George Vaz was a "workman" within the meaning of the Industrial Disputes Act, asserting he was an independent contractor outside the Act's purview; on that basis the Management contended no industrial dispute existed to confer jurisdiction on the Presiding Officer.

Before the Presiding Officer the workmen argued that the Management was estopped from questioning jurisdiction because the reference was made under S. 10(2) on a joint application. The Presiding Officer formulated three issues: (1) whether the Management was estopped from contesting jurisdiction, (2) whether George Vaz was a workman within S. 2(s) of the Act or a contractor, and (3) if a workman, whether the inquiry was fair and termination justified. The Presiding Officer found for the Management on the first question (i.e., accepted its contention on estoppel) and held George Vaz was not a workman; concluding there was no industrial dispute and therefore no jurisdiction to adjudicate. Palaniswamy, J., however, considered the Management estopped by joining the S.10(2) application and quashed the award, directing a fresh disposal.

The appellate court (opinion authored by the Chief Justice) reviewed Palaniswamy, J.'s decision and the Presiding Officer's findings and addressed (a) whether estoppel could prevent the Management from raising the jurisdictional objection, (b) whether the Presiding Officer was correct in holding George Vaz was not a workman, and (c) whether the absence of workman status necessarily defeated the existence of an industrial dispute.

Legal Issues Presented

  1. Whether the Management, having joined in a joint application under S. 10(2) of the Industrial Disputes Act, 1947, is estopped from raising before the Presiding Officer the plea that George Vaz was not a "workman" and therefore that there was no industrial dispute to confer jurisdiction.
  2. Whether the Presiding Officer had jurisdiction to adjudicate the reference notwithstanding the Government's decision to refer under S. 10(2), i.e., whether the opinion of the Government conclusively determines jurisdiction before the Presiding Officer.
  3. Whether George Vaz was a "workman" within the meaning of the Industrial Disputes Act or an independent contractor, and the legal effect of that characterization on the existence of an industrial dispute.
  4. Whether the fact that a person is not a "workman" necessarily prevents a dispute connected with his employment or non-employment from constituting an "industrial dispute" under the Act (and relatedly whether issues such as "community of interest" between such a person and workmen are material and were properly pleaded).

Arguments of the Parties

Appellant (Management)

  • Contended that George Vaz was not a "workman" within the meaning of the Industrial Disputes Act but an independent contractor, and therefore the dispute did not fall within the Act.
  • On that basis, asserted there was no industrial dispute so as to afford jurisdiction to the Presiding Officer to adjudicate the reference.
  • The Management's objection statement set out facts meant to show Vaz was not a workman and concluded that he was a contractor beyond the purview of the Act.

Respondent (Workmen / Union)

  • Argued that because the reference was made under S. 10(2) of the Act on a joint application by management and union, the Management was estopped from contesting jurisdiction before the Presiding Officer.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
15 Halsbury, page 204, paragraph 384 States that lack of jurisdiction deprives a judgment of any effect; this rule applies even where estoppel or the conduct of a party is relied upon to cure jurisdictional defect. The Court relied on this authority to support the proposition that jurisdiction cannot be created or validated by estoppel or waiver and that an absence of jurisdiction renders any decision void.
Toronto Railway Company v. Corporation of the City of Toronto Held that where there was no power conferred by the State to make an assessment, the assessment was illegal and void ab initio; confirmation by a court could not validate it and jurisdiction could not be assumed by conduct, estoppel or waiver. Used as an illustrative case reinforcing the Court's conclusion that estoppel/consent cannot supply an initial lack of jurisdiction.
9 Halsbury, page 352 Authority cited in support of the principle that jurisdiction cannot be assumed or supplied by conduct or estoppel. Cited to buttress the general legal proposition relied upon by the Court concerning the inviolability of jurisdictional limits.
Hinde v. Hinde Held that although parties may agree on amounts or payments, they cannot by consent confer on a court a jurisdiction which it did not possess. Relied upon to show that consent or agreement between parties cannot confer jurisdiction where none exists; the Court applied this to reject estoppel as a means to validate the Presiding Officer's jurisdiction.
Queen v. Judge of the County Council of Shrofshire Where there was an initial lack of jurisdiction, it could not be supplied by means of waiver. Cited to reinforce the principle that jurisdictional defects cannot be cured by waiver or consent; the Court invoked this as supporting precedent for its ruling on estoppel.

Court's Reasoning and Analysis

The Court began by addressing the central contention accepted by Palaniswamy, J., namely that the Management was estopped from raising jurisdictional objections because it had joined a S.10(2) application. The Court examined the statutory text of S.10 (both limbs), the Madras Industrial Disputes Rules (R. 28), and Form E (the prescribed form for an application under S.10(2)). It emphasized that:

  • S.10(1) empowers the appropriate Government, in its opinion, to refer disputes where an industrial dispute exists or is apprehended; S.10(2) provides that where parties apply (jointly or separately) for reference and the Government is satisfied they represent the majority, the Government shall make the reference accordingly.
  • R.28 and Form E prescribe particulars to be supplied with an application under S.10(2), including parties to the dispute, matters in dispute, total number of workmen, estimates of persons affected, and efforts to settle the dispute.

From these provisions the Court derived that the jurisdiction of the Presiding Officer depends fundamentally on the existence or apprehension of an "industrial dispute" as defined by the Act. Consequently:

  • It is open to the Presiding Officer, on a reference, to decide as a preliminary issue whether the facts exist to warrant his jurisdiction (i.e., whether there is an industrial dispute within the Act's definition).
  • The Government's opinion to make a reference is not necessarily conclusive on the question of jurisdiction before the Presiding Officer; a reference under S.10(2) like a reference under S.10(1) can only be sustained if an industrial dispute exists or is apprehended.
  • Neither S.10(2) nor R.28 (including Form E) conveys that a joint application under S.10(2) operates as a waiver of jurisdictional objections or estops a party from raising lack of jurisdiction before the Presiding Officer.
  • The opening words of S.10(2) (referring to "parties to an industrial dispute") imply that only parties to an industrial dispute may apply jointly; if no industrial dispute exists or is apprehended, a joint application could not be warranted and the question is open to inquiry by the Presiding Officer.
  • Consent or waiver cannot substitute for jurisdiction; the basis of jurisdiction is factual (existence or apprehension of an industrial dispute), and that factual question remains open to the Presiding Officer irrespective of the parties' or Government's earlier views.

The Court reinforced these conclusions with authorities (Halsbury, Toronto Railway Co., Hinde v. Hinde, Queen v. Judge of the County Council of Shrofshire) establishing that lack of jurisdiction cannot be cured by estoppel, waiver, or the conduct of parties.

Having resolved the estoppel issue against the Management's being prevented from raising jurisdictional objections, the Court then considered the factual finding by the Presiding Officer that George Vaz was not a workman. The Court held that the Presiding Officer had considered all salient facts and that the finding that Vaz was not a workman was not vitiated by error, and thus the Presiding Officer was correct on that issue.

However, the Court observed that the matter did not necessarily end there: the statutory definition of "industrial dispute" encompasses disputes connected with the employment or non-employment, or the terms and conditions of labour, of "any person," not strictly limited to "workmen." Thus, even if George Vaz was not a workman, the dispute could still be an industrial dispute depending on whether there was a "community of interest" between him and the workmen. The Court examined the pleadings and concluded that the Management's objection statement, while asserting Vaz was not a workman and was a contractor, did not explicitly plead or develop the argument that there was no community of interest between Vaz and the workmen. Accordingly, that aspect required proper consideration on remittal.

Holding and Implications

Holding: The Court confirmed the remit order of Palaniswamy, J. directing that the reference be restored and re-disposed of by the Presiding Officer. The Court held that the Management was not estopped from raising the jurisdictional objection despite the joint application under S.10(2), and simultaneously held that the Presiding Officer's factual finding that George Vaz was not a workman was sound. The Presiding Officer is to dispose of the reference in accordance with the observations in this judgment and according to law. There will be no order as to costs.

Implications:

  • Direct effect on the parties: The Presiding Officer must reconsider and dispose of the reference afresh, taking account of the Court's legal observations—particularly that jurisdiction depends on the existence or apprehension of an industrial dispute and that the Presiding Officer may determine jurisdictional questions as preliminary issues.
  • The Management is not prevented (by estoppel arising from a joint S.10(2) application) from asserting lack of jurisdiction before the Presiding Officer.
  • The Presiding Officer's factual finding that George Vaz was not a workman stands as not vitiated by error; nevertheless, the Presiding Officer must also consider whether the dispute nonetheless qualifies as an "industrial dispute" by reason of being connected with the employment/non-employment of "any person" (i.e., whether a community of interest with workmen exists) and whether that issue was properly pleaded.
  • No new legal principle or precedent was articulated by the Court beyond applying established authority that jurisdiction cannot be supplied by estoppel or waiver; the ruling applies those settled principles to the facts of this case and directs fresh adjudication consistent with those principles.

    Management Of Vallamalai Estate v. Workers Of Vallamalai Estate

    (The Chief Justice)

    1. This appeal by the Management is from order of Palaniswamy, J. The learned judge quashed an order of the Presiding Officer, Labour Court, Coimbatore, and directed him to restore to his file a reference which the State Government had made to him by G.O Rt. 340 Department of Industries, Labour and Housing, dated 24th February, 1968. That reference was made under S. 10(2) of the Industrial Disputes Act, 1947, and on a joint application by the management of the Vellamalal estate, Valpari and the workmen represented by the Secretary of the estate staff’ Union of South India, Coimbatore, As required by the provisions of the Act, the reference arose from a satisfaction of the Government that the persons applying for reference represented the majority of each party. The question that was referred for adjudication was whether the non-employment of one George Vaz (box maker) was justified; if not, to what relief he was entitled? The reference also included the computation of the relief, if any, awarded in terms of money, if it could be so computed at all. The workmen claimed that the termination, with effect from 15th July, 1966, by the management, of the services of George Vaz, for alleged misconduct, was not at all sustainable. This was denied in the Objection Statement filed by the Management, which asserted that George Vaz was not a workman within the meaning of the Industrial Disputes Act, but an independent contractor pure and simple, beyond the purview of the Industrial Disputes Act. On that ground, the management would have it that there was no industrial dispute so as to afford jurisdiction to the Presiding Officer to adjudicate the question under reference. Before the Presiding Officer the workman contended that the management was estopped from questioning the jurisdiction to adjudicate on the reference as it was one under S. 10(2) of the Act and upon a joint application by the Management and the Union. The other point which the Presiding Officer formulated was, if the management was not estopped, whether George Vaz was a workman within the meaning of S. 2(s) of the Act or a contractor, as the management would have it. The third point the Presiding Officer posed for himself was whether if George Vaz was a workman, was the enquiry against a fair and proper one and whether the termination of his services could be justified. On the first question, the Presiding Officer held in favour of the management, and on the second question the Presiding Officer's view was that George Vaz was not a workman. On that view, he was of further opinion that there was no industrial dispute in existence or apprehended, and therefore the Presiding Officer had no jurisdiction to go into the matter. Palaniswamy, J. however, thought that the management, having joined in the application under S. 10(2), was estopped from raising the contention that George Vaz was not a workman, and that, therefore, no industrial dispute was in existence or apprehended. At the same time, he was inclined to think that it was open to the Management to contend before the Presiding Officer that the person concerned was not a workmen. We have some difficulty in appreciating the learned Judge in making the second observation. Anyway, on the view he took, he quashed the award, as we said, and directed fresh disposal in accordance with law.

    2. On the question of estoppel, with due respect to the learned Judge, we are unable to concur with him. There is nothing in the statutory provisions or the rules made under the Industrial Disputes Act to justify that view. The Act is intended to make a provision for the investigation and settlement of industrial disputes and for certain other purposes. The Act has defined an industrial dispute, which ought to be one between, among other things, employers and workmen, but the actual dispute should be connected with the employment or non-employment, or the terms of employment or the conditions of labour of any person. There is also a comprehensive definition in the Act of the expression ‘workman’ which we need not at the moment touch upon. S. 10 provides for reference of disputes. It has two limbs, the first of which says that where the appropriate Government is of opinion that an industrial dispute exists or is apprehended, it may, at any time, by an order in writing, refer to the dispute and so on. But sub-S. 2 is phrased as under:—

    “Where the parties to an industrial dispute, apply in the prescribed manner, whether jointly or separately, for reference of the dispute to a Board, Court (Labour Court, Tribunal or National Tribunal), the appropriate Government, if satisfied that the persons applying represent the majority of each party, shall make the reference accordingly.”

    3. R. 28, made with reference to S. 10(2), requires that an application under that provision should be in Form E, and that it should be accompanied by a statement setting forth the parties to the dispute, specify the matters in dispute, the total number of workmen employed in the undertaking, the estimate of the number of persons affected or likely to be affected, the efforts made by the parties themselves to settle the dispute and certain other things. The application should be forwarded to the Secretary to the Government with a copy to the Commissioner of Labour. Form E reads—

    “Whereas an industrial dispute is apprehended/exists between … and …. and it is expedient that the disputed/maters specified in the enclosed, statement which are connected with or relevant to the dispute, should be referred for enquiry/settlement adjudication, to a court of Enquiry/Board of Conciliation/Labour Court/Tribunal, an application is hereby made under S. 10(2) of the Industrial Disputes Act, 1947 (Central Act XIV of 1947) that the said dispute/matters should be referred to a court of enquiry/Board of conciliation/Labour court/Tribunal’ The application is made by the undersigned who has/have been duly authorised to do so by.….

    A statement giving particulars of the dispute as required by R. 28 of the Madras Industrial Disputes Rules, 1958, is enclosed. Signature of applicant.”

    Now, it seems to us that it is basic for the jurisdiction of the Presiding Officer to adjudicate upon a reference that there should be an industrial dispute either in existence or apprehended, an industrial dispute as defined by the Act. It is open, therefore, to the Presiding Officer, on a reference, always, if the parties before him so desire, to decide as a preliminary issue as to whether the facts existed to warrant the invoking of his inherent jurisdiction. The opinion of the Government may not therefore be final, nor the fact of its having made a reference concludes before the Presiding Officer the question of jurisdiction. We do not think that the position is different under Sub-S. (2) of S. 10. Like a reference under Sub-S. (1), so a reference under Sub-S. (2) can be sustained only on the basis of there being an industrial dispute In existence or apprehended. The difference between the two provisions is that under Sub-S. (1) the Government has a discretion whether to make a reference or not, notwithstanding that in its opinion an industrial dispute exists or is apprehended, but under Sub-S, (2) of S. 10, once it is satisfied that the persons applying represent the majority of each party, it is obligatory on its part to make the reference. We need not decide in this case whether such an obligation arises, if the Government is of the opinion that there is no industrial dispute in existence or apprehended. It is contended for the workmen that a joint application under Sub-S. (2) of S. 19 being, as it is, on the basis of a consent or concession on the part of the parties thereto that an industrial dispute existed or was apprehended, either of the parties would be estopped from raising the question of jurisdiction before the Presiding Officer. We are of the view that neither the terms of Sub-S, (2) of S, 10, nor R. 28, read with those of Form E, suggest in any way anything to support that view. On the other hand, it seems to us that the opening words of Sub-S. (2) are clear, that it is only parties to an industrial dispute that could apply jointly, and that means that if it could be shown that no industrial dispute existed or was apprehended, no joint application could be warranted, or, at any rate, the question whether there is an industrial dispute would certainly be open to question before the Presiding Officer. As such, his jurisdiction is entirely dependent on the existence or apprehension of an industrial dispute as defined. Neither consent nor waiver can be a substitute for jurisdiction and cure the initial want of jurisdiction. The basis of jurisdiction is an industrial dispute and that question is, therefore, always open to the Presiding Officer to go into notwithstanding what the parties or the Government have thought about it.

    3. 15 Halsbury page 204 paragraph 384 points out that lack of jurisdiction deprives the judgment of any effect, whether by estopped or otherwise and that this rule applied even where the party alleged to be estopped himself sought the assistance of the court whose jurisdiction was impugned. Toronto Railway Company v. Corporation of the City of Toronto(1) was such a case, and it was held there was no power conferred by the State to make an assessment, it must be wholly illegal and void ab initio, and confirmation by the court of revision cannot validate it, and that jurisdiction could not be assumed either by conduct of the parties in the form of estoppel or waiver or silence. Vide 9 Halsbury page 352. In Hinde v. Hinde it was pointed out that though the parties may agree on amounts or may make agreements as to payments, they could not by consent confer on a court a jurisdiction which it did not possess. Similarly, in the Queen v. Judge of the County Council of Shrofshire(2) it was held that where there was initial lack of jurisdiction, it could not be supplied by means of waiver.

    4. We are clear therefore, that the Presiding Officer's jurisdiction being entirely basically dependent on an existing or an apprehended industrial dispute, the appellant was not estopped in this case from contending lack of jurisdiction in the Presiding Officer, notwithstanding that the reference was made on a joint application under S 10(2) of the Industrial Disputes Act.

    We are also of the view that the Presiding Officer was right when he said that George Vaz was not a workman. The Presiding Officer has, as we see from his award, taken into account all the salient facts into account, and his finding in this regard is not vitiated by any error.

    5. But that would not conclude the matter. While the industrial dispute should be among other things between the management and workmen, the dispute need not be connected with any workmen. What the definition of the expression ‘industrial dispute’ says is that it may be connected with the employment or non-employment or the terms of employment or the conditions of labour of any person, not necessarily a workman. The fact that George Vaz was, as found by the Presiding Officer, not a workman would not by itself conclude that the dispute was not an industrial dispute. But then, on the one hand, it is contended that the question that if George Vaz was an independent contractor, whether there was a community of interest between him and the workman has not been raised by the management in its pleadings. On the other hand, it is asserted for the Management that it has been raised. By a reference to the pleadings themselves, we find that all that had been stated by the management in its objection statement was that George Vaz was not a workman within the meaning of the Industrial Disputes Act, and this statement was followed by the facts which were intended to show that he was not a workman, and then at the conclusion of the statement, the management stated that George Vaz was a contractor pure and simple and beyond the purview of the Industrial Disputes Act. It is said that this meant or implied that the point as to the community of interest as between the workman and George Vaz was raised in the Objection statement. We do not, think that this is a correct reading of the effect of the objections statement. It seems to us that the objection statement did not have in its view this aspect that an industrial dispute may be connected with somebody who is not a workman and that, therefore, it was necessary to plead that even on that basis there was no community of interest between such a person and the workman.

    6. The result is we confirm the remit order of Palaniswamy J. but the Presiding Officer, while disposing of the reference, will do so in accordance with the observations contained in this judgment and according to law. There will be no order as to costs.

    V.C.S

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    Management Of Vallamalai Estate v. Workers Of Vallamalai Estate
    (Jul 10, 1972)