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Sital Sukhiram v. Central Government I...
Structured Summary of the Court's Opinion
Factual and Procedural Background
The petitioner was employed as a Badli coal loader at the New Chirimiri Ponri Hill Colliery (Chirimiri, Surguja District). The colliery's administration was ultimately the responsibility of respondent 2 (the Chief Mining Engineer). Several demands made by the workers in 1967 were not accepted by management, giving rise to an industrial dispute. The Central Government, by Notification No. 5/7/67/LR-II dated 10 October 1967 published in the Gazette of India, referred five specific disputes for adjudication to the Central Government Industrial Tribunal, Jabalpur, under Clause (d) of Sub-section (1) of Section 10 of the Industrial Disputes Act, 1947. The Schedule to the reference enumerated five questions, including whether 97 badli workers were justifiably kept as badlis and related reliefs.
Before the Tribunal could adjudicate, the employer and the union which sponsored the dispute reached a compromise; the Tribunal's award dated 7 February 1968 reproduced the terms of that settlement and stated that because of the settlement there remained nothing for adjudication, and so it accepted the compromise and recorded an award in its terms. The petitioner challenged that award by a petition under Articles 226 and 227 of the Constitution.
Legal Issues Presented
- Whether an individual workman (the petitioner) aggrieved by a Tribunal award may invoke the High Court's jurisdiction under Articles 226 and 227 despite Section 36 of the Industrial Disputes Act, 1947 which emphasises collective representation.
- Whether the Industrial Tribunal could lawfully accept an amicable private settlement between the parties that did not specify how the disputes were settled and then record an award in the terms of that settlement without adjudicating the disputes.
- Whether a provision in the Act (Section 17(2)) making Tribunal awards final ousts the High Court's jurisdiction under Articles 226 and 227.
- Whether the Central Government was a necessary party to the proceedings merely because it had performed the statutory duty of publishing the award under Section 17 of the Act.
Arguments of the Parties
Petitioner (Badli worker)
- The petitioner contended that the Tribunal did not determine the industrial dispute in accordance with the requirements of the Industrial Disputes Act — i.e., that the Tribunal had not adjudicated the matters referred to it but only incorporated a private settlement into an award.
- Implicit in the petitioner's position was that he was a person aggrieved by the impugned award and entitled to invoke the Court's extraordinary jurisdiction under Articles 226 and 227.
Colliery Management (Respondent)
- The management contended that the award was final under Section 17(2) of the Industrial Disputes Act and therefore could not be questioned in any Court in any manner whatsoever.
- It was argued (in relation to procedural competency) that Section 36 of the Act prevented an individual worker from challenging an award because an individual is not a "party to an industrial dispute" within the meaning of the Act and collective representation is to be given primacy.
- Late in argument it was suggested that the Central Government might be a necessary party because it had published the award under Section 17 of the Act.
- It was also urged that because the disputes had been amicably settled between the parties, remitting the matter to the Tribunal would serve no useful purpose.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Ram Prasad v. Industrial Tribunal, AIR 1961 SC 857 | The ordinary rule that representation by an officer of the trade union should continue throughout proceedings, subject to exceptional circumstances. | The Court cited Das Gupta J.'s observation to recognise that, while Section 36 emphasizes collective representation, exceptions exist and that individual workmen can, in appropriate circumstances, seek redress in the High Court. |
| West Bengal Press Workers' & Employees' Union v. Art Union Printing Works Pvt. Ltd., AIR 1962 Cal 649 | A union of workmen, if aggrieved by an award, may also initiate action (i.e., contest an award). | The Court noted this decision to show that allowing an individual workman to challenge an award does not conflict with the principle that unions may also challenge awards. |
| Bharat Bank Ltd. v. Employees of Bharat Bank Ltd., AIR 1950 SC 188 | Statutory provisions purporting to make decisions final do not necessarily oust the Constitutional jurisdiction of the High Court under Articles 226 and 227 to examine compliance with statutory provisions. | Relied upon to reject the contention that Section 17(2)'s finality clause ousted the Court's jurisdiction; the Court reaffirmed its power to examine whether statutory requirements were complied with. |
| Parry and Co. Ltd. v. Commercial Employees Association Madras, AIR 1952 SC 179 | Same general principle as Bharat Bank regarding the High Court's jurisdiction despite statutory finality clauses. | Cited alongside Bharat Bank to support the proposition that Sections asserting finality of tribunal awards do not bar constitutional review. |
| State of Bihar v. Ganguli, AIR 1958 SC 1018 (1958-2 Lab LJ 634) | Once a reference has been made under Section 10(1) of the Industrial Disputes Act, it cannot be rescinded or cancelled. | The Court relied on this authority to conclude that a reference cannot be terminated other than by adjudication and to criticise the Tribunal for allowing the reference effectively to be ended by recording the private settlement as an award. |
| Andhra Handloom Weavers Co-operative Society v. State of Andhra Pradesh, (1963) 2 Lab LJ 488 = (AIR 1964 Andh Pra 363) | A reference cannot be dismissed for default because that would put an end to proceedings otherwise than by adjudication. | Noted as authority supporting the principle that the Tribunal must adjudicate disputes referred to it and cannot terminate proceedings by non-adjudicatory means. |
| British India Corporation Ltd. v. Labour Court, Kanpur, 1964-1 Lab LJ 601 (All) | Similar principle that proceedings under a reference should not be ended otherwise than by adjudication. | Cited to reinforce the same proposition that the Tribunal cannot avoid adjudicating the matters referred to it. |
| Krishnakutty Nair v. Industrial Tribunal, (1957-2 Lab LJ 45) = AIR 1960 Ker 31 | The Tribunal has a duty to record a lawful agreement or compromise placed before it and in some situations may allow withdrawal for private arbitration; parties may lawfully adjust disputes and ask the Tribunal to record that adjustment. | The Court reviewed this case but disagreed with its broader observations; it held that recording a settlement that refers disputes to private arbitration is not adjudication and therefore does not amount to an "award" within the Act's meaning. |
| Maharana Mills Kamdar Union v. N. L. Vyas, (1959-2 Lab LJ 172) = AIR 1960 Bom 29 | Where a dispute is withdrawn from the Tribunal's purview, the proceedings end but there is no determination of the dispute by the Tribunal; withdrawal is not an adjudicatory determination. | The Court cited this decision (Bombay High Court Division Bench) as supporting the proposition that allowing withdrawal or referring to arbitration is not the same as an adjudicatory award. |
| Workers Textile Mills v. Dhanalakshmi Mills, AIR 1961 Mad 212 | A Tribunal may adopt a compromise entered into by the parties as the foundation for its award, but only after considering whether it is fair and just. | The Court relied on this authority to clarify that while a Tribunal can base an award on a settlement, it must examine the fairness of that settlement and proceed by adjudication rather than merely recording a private compromise as the award itself. |
Court's Reasoning and Analysis
The Court proceeded through a sequence of legal points grounded in statutory interpretation and precedent:
- Jurisdiction under Articles 226 and 227: The Court accepted that Section 36 of the Industrial Disputes Act emphasises collective representation and ordinarily an individual workman is not a party to adjudicatory proceedings under the Act; however, exceptions exist. Relying on authority (Ram Prasad) and related reasoning, the Court held that the petitioner, being a person aggrieved by the impugned award, was entitled to move the High Court under Articles 226 and 227. The Court also noted that allowing such relief did not conflict with the union's separate right to litigate (West Bengal Press Workers' decision).
- Finality clauses do not oust constitutional review: The Court rejected the management's submission that Section 17(2) made the award absolutely unchallengeable in any Court. It relied on Supreme Court authorities (Bharat Bank; Parry & Co.) to reaffirm that constitutional jurisdiction under Articles 226 and 227 to examine whether statutory provisions have been complied with remains intact notwithstanding statutory finality language.
- Meaning of "award" and duty to adjudicate: The Court analysed the definition of "award" (Section 2(b)) which describes an award as "an interim or final determination" by a Tribunal. The Court read "determination" to imply adjudication on the relevant material. It emphasised statutory authorities (State of Bihar v. Ganguli and others) that a reference made under Section 10(1) cannot be rescinded, cancelled or terminated other than by adjudication; similarly it cannot be dismissed for default so as to avoid adjudicating the merits.
- Rejection of treating private settlement as substitute for adjudication: The Tribunal had accepted a private compromise which did not disclose how disputes were settled and recorded an award stating that there remained nothing for adjudication. The Court concluded that by doing so the Tribunal had abdicated its duty of adjudicating the disputes referred to it. While recognising that a Tribunal may record and may, after scrutiny, adopt a lawful compromise as the basis for an award, the Court held that simply incorporating a private settlement that does not disclose the manner of settlement (or without adjudicative consideration of fairness) is improper. The Court specifically disagreed with an expansive reading of Krishnakutty Nair (Kerala decision) that would equate recording withdrawal/settlement with an adjudicatory award.
- Role of the Tribunal vis-à-vis settlement: The Court clarified that the Tribunal cannot treat the matter like a civil court recording a compromise under Order 23, Rule 3 CPC. Because an award binds all workmen (Section 18), the Tribunal must consider whether any settlement is fair and just and, if the Tribunal adopts the settlement, it must do so in the form of an adjudicatory determination (an award) rather than as mere acceptance of a private withdrawal or private arbitration arrangement.
- Central Government as necessary party: The late suggestion that the Central Government, having published the award, thereby became a necessary party was rejected. The Court found no basis to treat the Central Government as a necessary party merely because it had performed its statutory duty of publishing the award.
Holding and Implications
Holding: The petition is allowed: the award dated 7 February 1968 and its publication in the Gazette of India dated 24 February 1968 are quashed, and the matter is remitted to the Industrial Tribunal, Jabalpur, for fresh determination in accordance with law.
Direct consequences imposed by the Court:
- The award dated 7th February 1968 was quashed and its Gazette publication of 24th February 1968 was quashed.
- The case was remitted to the Tribunal (respondent 1) for determining the disputes afresh in accordance with law, with attention to the Court's observations in the opinion.
- Respondent 2 (the Colliery Management) was ordered to pay the costs of the petitioner and to refund the security amount to the petitioner. Hearing fee was fixed at Rs. 100.
Broader legal implications (as stated or implied by the opinion):
- A Tribunal cannot convert a private settlement that does not disclose how disputes are resolved into an adjudicatory award without performing the adjudicatory function required by the Act.
- While a Tribunal may adopt a lawful compromise as the basis for its award, it must examine the fairness of the compromise and produce an adjudicatory determination rather than merely record a private agreement as if it were an award.
- Statutory finality clauses in tribunal legislation do not oust the High Court's constitutional supervisory jurisdiction under Articles 226 and 227 to ensure compliance with statutory requirements.
The Court's decision primarily provided relief in this case (quashing and remittal) and clarified statutory requirements for how a Tribunal should treat settlements during the pendency of a reference. The opinion did not purport to lay down an exhaustive new rule beyond these holdings.
1. This petition under Articles 226 and 227 of the Constitution is directed against an award dated 7th February 1968 whereby, instead of determining the Industrial disputes referred to the Central Government Industrial Tribunal, Jahalpur, it merely incorporated in the award the terms of a settlement between the parties before it.
2. The material facts giving rise to this petition may be shortly stated. The petitioner is employed as a Badli coal loader in the New Chirimiri Ponri Hill Colliery at Chirimiri in Surguja District, of which the respondent 2 is the Chief Mining Engineer and is the person ultimately responsible for administration of the coal mine. Sarguja Koyla Khan Karmachari Sangha (respondent 3) is one of the several trade unions of the region, the recognised union being the M. P. Colliery Workers Federation. It transpired that, in the year 1967, several demands were made on behalf of the workers of the aforesaid colliery which were not accepted by the colliery management with the consequence that they gave rise to an industrial dispute. The Central Government took notice of the existence of the industrial dispute and by Notification No. 5/7/67/LR-II dated 10th October 1967 published in the Gazette of India, referred the dispute for adjudication to the Tribunal.
3. The reference is in these terms:
ORDER New Delhi, the 10th October 1967.
S. O. No. 3840-- Whereas the Central Government is of opinion that an industrial dispute exists between the employers in relation to the New Chirimiri Ponri Hill Colliery, P. O. Chirimiri, District Surguja (Madhya Pradesh) and their workmen in respect of the matters specified in the Schedule hereto annexed:
And, whereas the Central Government considers it desirable to refer the said dispute for adjudication;
Now, therefore, in exercise of the powers conferred by Clause (d) of Sub-section (1) of Section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby refers the said dispute for adjudication to the Industrial Tribunal, Jabalpur, constituted under Section 7A of the said Act.
SCHEDULE (1) Whether the management of the New Chirimiri Ponri Hill Colliery was justified in keeping the following 97 workers, as badlis? If not, to what relief are the workmen entitled?
.....
(2) Whether the existing diet charge of Rs. 1.31 per day paid by the management for one worker patient in their hospital needs upward revision? If so, at what rate?
(3) Whether the workers are entitled to the provision of ambulance or other transport facilities by the management for reaching hospitals in serious cases of sickness or accident? If so, to what relief are the workmen entitled?
(4) Whether the workers employed on Sundays are entitled to be paid wages at twice their ordinary rate of wages? If so, from what date?
(5) Having regard to the terms of the mutual settlement dated the 18th March, 1966 arrived at between the management and their workmen represented by the M. P. Colliery Workers Federation, whether the demand of the workers for payment of arrears is justified? If so, from what date?"
4. In the impugned sward, the Tribunal reproduced the terms of reference and concluded as follows:
"After issue of usual notices, parties filed their pleadings, namely written statements and rejoinders. Before the case could be taken up for hearing, the employers and the union which sponsored the dispute compromised all the five disputes under reference, the terms of which are reproduced in the annexure to this award. The terms of settlement, however, do not specify the manner in which the disputes have been settled. The compromise petition appears to be genuine and neither party appeared on the date of hearing. It is, therefore, accepted and an award is recorded in terms of the settlement"
5. The terms of the settlement referred to in the award are these:
"(1) That the union Representatives viz: (1) Shri Resham Chand, President and (2) Shri H. B. Chakraborty, General Secretary and the Colliery Company representatives viz: (1) G. Srinivasan, Chief Mining Engineer and (2) Shri P. S. Karwatkar, representing the employees, discussed the matter on 28-1-1968 at Nagpur and have amicably settled up the matters that are pending for adjudication before said Tribunal.
(2) As a result of the agreement arrived at between the parties, it is now agreed that all the five demands that are referred to for adjudication by the Central Government under the abovesaid notification have been fully settled and there now remains nothing for adjudication by the Tribunal so far as these 5 specific demands are concerned.
(3) That the employers agree to pay to the Union within a fortnight from the date of this agreement, a sum of Rupees 3,000 (Rupees three thousand) only as a token of good will and co-operation and in final satisfaction of all the matters arising out of these 5 demands.
(4) In view of this agreement, it is not now necessary for the Tribunal to adjudicate this matter and an Award be passed incorporating the terms of this settlement.
(5) There will be no order as to costs."
6. Having heard the counsel, we have formed the opinion that this petition must be allowed. Our attention is drawn to the provisions of Section 36 of the Industrial Disputes Act, 1947, and it is argued that it is not competent to an individual worker to challenge an award because he is no party to an industrial dispute within the meaning of the Act. So far as the proceedings under the Act are concerned, that is a well-recognised general rule because of the importance afforded to collective bargaining. However, even then exceptions are not unknown.
So, in Ram Prasad v. Industrial Tribunal, AIR 1961 SC 857, Das Gupta J., speaking for the Court stated:
"While it will be unwise and indeed impossible to try to lay down a general rule in the matter, the ordinary rule should in our opinion be that such representation by an officer of the trade union should continue throughout the proceedings in the absence of exceptional circumstances which may justify the Tribunal to permit other representation of the workman concerned."
(Page 859)
7. Admittedly the petitioner here is one of the Badli workers whose claims for permanent employment in the colliery was specifically referred to the Tribunal. His contention is that this dispute was not determined by the Tribunal in accordance with the requirements of the Act. In our opinion, the petitioner is a person aggrieved by the impugned order and he is en-
titled to move this Court for the issuance of a writ in its extraordinary jurisdiction. This view does not in any way run counter to the decision in West Bengal Press Workers' and Employees' Union v. Art Union Printing Works Private Ltd., AIR 1962 Cal 649 to the effect that a union of workmen, if aggrieved by an award, may also take like action. We may add that the provisions of Section 36 of the Act are restricted in operation to proceedings under the Act and do not come in the way of a workman aggrieved by an award invoking the jurisdiction of this Court under Articles 226 and 227 of the Constitution.
8. It was next contended on behalf of the Colliery Management that the award given by the Tribunal was, as provided by Section 17(2) of the Act, final and could not be called in question in any Court in any manner whatsoever. It is now well settled that such a provision does not affect the jurisdiction of this Court under Articles 226 and 227 of the Constitution to examine and determine whether the provisions of the statute have been complied with: Bharat Bank Ltd. Delhi v. Employees of Bharat Bank Ltd. Delhi, AIR 1950 SC 188 and Parry and Co., Ltd. v. Commercial Employees Association Madras, AIR 1952 SC 179.
9. The main question for consideration is whether the Tribunal could, as it did in this case accept an amicable settlement between the parties which "did not specify the manner in which the disputes have been settled" and make an award in terms of that settlement because "there now remains nothing for adjudication by the Tribunal so far as these five specific demands are concerned." We are clearly of opinion that the Tribunal could not act in that way without disregarding the provisions of the Act. The word "award" as defined in Clause (b) of Section 2 of the Act means "an interim or final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Industrial Tribunal and includes an arbitration award made under Section 10A." We think that the word "determination" used in the definition implies adjudication upon relevant material by the Labour Court or the Tribunal.
So, it has been held that, once a reference has been made under Section 10(1) of the Act, it cannot be rescinded or cancelled: State of Bihar v. Ganguli, 1958-2 Lab LJ 634 = (AIR 1958 SC 1018). It cannot also be dismissed for default because that would amount to putting an end to the proceedings otherwise than by adjudicating upon the dispute: Andhra Handloom Weavers, Co-operative Society v. State of Andhra Pradesh, 1963 2 Lab LJ 488=(AIR 1964 Andh Pra 363) and British India Corporation Ltd. v. Labour Court, Kanpur, 1964-1 Lab LJ 601 (All).
In this case, the Tribunal did not adjudicate upon the five industrial disputes referred to it and accepted a private settlement between the parties, which did not disclose in what manner the disputes had been settled, all because, in view of the settlement, there remained nothing for adjudication in regard to those disputes. We are of the view that, in taking up that attitude, the Tribunal abdicated its duty of adjudicating upon the dispute.
It is argued that it was open to the Tribunal to record a compromise or agreement between the parties and, in so doing, the Tribunal did not contravene any of the provisions of the Act. For this view, reliance was placed upon Krishnakutty Nair v. Industrial Tribunal, 1957-2 Lab LJ 45 = (AIR 1960 Ker 31) and more particularly the following observations of the learned Single Judge of the Kerala High Court, who decided that case:
"Now, it is the elementary right of the parties to dispute to adjust their matters of differences wholly or in part, by any lawful agreement or compromise. And every authority entrusted with the task of adjudicating the dispute has a duty, not a discretion, to record such agreement or compromise subject possibly to an inherent power of refusal when substantial injustice would be worked. A tribunal, therefore, to whom an industrial dispute is referred for adjudication under Section 10(1)(c) of the Industrial Disputes Act, must record a lawful agreement or compromise placed before it by the disputants. There is nothing in the Act to suggest that a particular class of agreement or compromise is outside its scope, though whether a particular compromise is lawful or not will vary with the varying character of different disputes. The expression 'determination' in the definition of 'award' in the Act indicates only a coming to an end, may be in any way whatever, though it may require examination and choice. What then is the difficulty when contending parties before the tribunal settle their outstanding disputes amicably between themselves and ask the tribunal to strike off the reference or in different context, whore they decide upon a machinery of their own choice for resolving their differences and require the tribunal to sanction a withdrawal on such basis. The most that could possibly be said is that the agreement or compromise placed before the tribunal for acceptance should not involve anything improper, illegal or prima facie unjust from the point of view of the exercise of the overwhelming power of the employer against the workmen."
With respect, we do not find ourselves able to agree with all these observations.
In that case, during the pendency of a reference under Section 10(1) of the Act, the parties agreed to refer the matters in dispute to private arbitration. An application was then made to withdraw the dispute. After holding an enquiry, the Tribunal found the terms of settlement for reference to arbitration to be fair and beneficial to the workers, accepted those terms and held that there remained no subsisting dispute to be decided by it. The learned Single Judge took the view that this was an award within the meaning of the Act. In our opinion, the recording of the settlement, by which the Tribunal allowed the dispute to be withdrawn for settlement by private arbitration, was not an adjudication by the Tribunal and did not amount to an award within the meaning of the Act. Much the same view was taken about the Kerala decision by a Division Bench of the Bombay High Court in Maharana Mills Kamdar Union v. N. L. Vyas, 1959-2 Lab LJ 172 = (AIR 1960 Bom 29) Chainani, C. J. observed:
"The judgment shows that the learned judge was inclined to regard the order made by the tribunal as an award. He has observed that the expression 'determination' in the definition of 'award' indicates only coming to an end, which may be in any way whatever. With respect, it seems to us however, that the definition clearly contemplates determination, of the dispute by an industrial tribunal. Where a dispute is withdrawn from the purview of an industrial tribunal, the proceedings before the tribunal come to an end by the tribunal allowing the dispute to be withdrawn, but there is no determination of the dispute by it."
(Page 176 of Lab LJ = (at p. 31 of AIR))
10. It is not that a compromise arrived at between the parties before a Tribunal may not be considered by it at all, but the Tribunal cannot deal with it like a settlement between the parties to suit which may be recorded under Order 23, Rule 3 of the Code of Civil Procedure. The reason is that the award made by the Tribunal is, under Section 18 of the Act, binding on all workmen whether parties as nominees or represented before the Tribunal or not. It shows that the Tribunal cannot regard the matter as a settlement of a dispute between two or more parties before it. Nevertheless, it can adopt the compromise entered into by these parties as the foundation of its award after considering whether it is a fair and just settlement of the disputes. So, in Workers. 32 Textile Mills v. Dhanalakshmi Mills, AIR 1961 Mad 212 Ramchandra Iyer, J. observed:
11. The only other point pressed for our consideration is that, since the disputes had already been amicably settled, no useful purpose would be served by remitting the case to the Tribunal. As we have already indicated, this contention is grounded upon an erroneous assumption that any such amicable settlement during the pendency of a reference, without more, should itself be regarded as a determination of the industrial disputes which must be accepted and acted upon by the Tribunal.
12. Towards the close of the arguments, it was faintly suggested, apparently for the first time, that the Central Govt. was a necessary party only because it had published the award under Section 17 of the Act. In our opinion, the Central Government does not have, by reason only of the fact that it performed its statutory duty of publishing the award, that kind of interest in the matter which world make it a necessary party to a dispute like the one here. Even otherwise, we think the Central Government does not have in this depute such interest as might entitle it to be regarded as a necessary party.
13. The result is that this petition succeeds and is allowed. The award dated 7th February 1968 and its publication in the Gazette of India dated 24th February 1968 are quashed. The case is remitted to the Tribunal (respondent 1) for determining the dispute afresh in accordance with law with advertence to the observations in the foregoing paragraphs. The respondent 2 shall pay the costs of the petitioner to whom the security amount shall also be refunded. Hearing fee is fixed at Rs. 100.
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