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Bagaram Tulpule v. State Of Bihar

Patna High Court
Apr 5, 1950
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Summary of Opinion — High Court (Meredith, C.J.; Shearer, J.; Das, J.)

Factual and Procedural Background

The petition under Article 226 of the Constitution sought a writ in the nature of mandamus directing the State Government of Bihar to refer an industrial dispute to a Tribunal under the proviso to section 10(1) of the Industrial Disputes Act, 1947. The petitioner was the Vice President of the Wire Products Labour Union, Jamshedpur, a registered trade union with over 2,000 members employed by Indian Steel and Wire Products Limited, a public utility service.

Key factual events, as pleaded in the petition, were:

  • An award of 1947 required management and the union to agree a wage structure; Mr. John (then union president) agreed to a wage structure later implemented by management in February 1949.
  • The wage structure was alleged to be detrimental and had not been sanctioned by the union's executive committee or general body; the union executive passed a vote of no confidence in Mr. John in April 1949 and elected new office-bearers (including the petitioner as Vice President).
  • On 26 July 1949 the union requested management to re-open the wage-structure question; the request was refused. A number of items from the 1947 award were allegedly not implemented and the union sent a list of outstanding grievances.
  • On 19 September 1949 notice under section 22(1) of the Industrial Disputes Act was served, stating a strike would commence on 14 October 1949. Conciliation failed and the conciliation officer informed the Government.
  • On 13 October 1949 the Government informed the Union by telegram that it considered it inexpedient to refer the dispute to a Board or Tribunal. The strike began on 14 October 1949, continued for 75 days, was declared illegal by the Deputy Commissioner of Jamshedpur, and was then called off by the union.

The petitioner alleged the Government acted mala fide in refusing to make the reference and thereby failed to perform a legal duty under section 10 of the Industrial Disputes Act.

Legal Issues Presented

  1. Whether a High Court, under Article 226, has jurisdiction to issue a writ of mandamus directing a State Government to refer an industrial dispute to a Tribunal where the matter does not involve enforcement of fundamental rights under Part III of the Constitution.
  2. Whether the proviso to section 10(1) of the Industrial Disputes Act, 1947, imposes a mandatory duty on the appropriate Government to refer a dispute relating to a public utility service (when a notice under section 22 has been given), or whether that proviso confers a discretion on the Government (in particular where the proviso allows refusal if the Government considers the notice frivolous or that a reference would be inexpedient).
  3. Whether mandamus may be issued to control or compel the exercise of a statutory discretion by the Government, including the role of bona fides (mala fide) where discretion is involved.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner (through counsel Mr. Awadhesh Nandan Sahay) argued that the proviso to section 10(1) imposed a duty on the appropriate Government to refer the dispute to a Board, Court of inquiry or a Tribunal where (a) the dispute related to a public utility service and (b) a notice under section 22 had been given.
  • Counsel submitted that despite the use of the word "may" in the sub-section and "shall" in the proviso, the practical effect was to impose a duty subject to the fulfilment of the proviso's conditions; non-performance on arbitrary grounds would therefore be an unlawful exercise of discretion and could be corrected by the High Court by mandamus.
  • To support this, counsel relied upon Alderman Backwell's case and King v. Marshland Smeeth and Fen District Commissioners (as authorities on construction of "may" and "shall" and on the availability of mandamus in some statutory contexts).

State Government's Position

  • The Government, as pleaded in the petition and accepted by the Court for present purposes, refused to make the reference under the proviso on the express ground that it considered it would be "inexpedient" to do so. The Government treated the decision as a matter of discretion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
The King v. Marshland Smeeth and Fen District Commissioners, Ex parte Bassett Cited as an English authority relevant to whether mandamus may issue against bodies exercising statutory powers; discussed as part of authorities showing limits on mandamus in matters of discretion. The Court relied on its reasoning (through McCardie, J.) as illustrating the test whether an enactment grants a power/discretion or imposes a duty/obligation; applied to hold the proviso conferred discretion and mandamus was inappropriate.
In the matter of Robert L. Cutting American authority cited among examples that mandamus will not issue to control a matter of discretion. Referenced to support the general proposition that mandamus will not issue where a statutory discretion is vested in an authority.
United States ex. rel. International Contracting Co. v. Deniel S. Lament American authority cited as an example that mandamus is not available to control the exercise of a lawful discretion. Cited to support the proposition that mandamus cannot be used to compel or control discretionary acts by government.
Intestate Commerce Commission v. United States of America ex. rel. Members of the Waste Merchants Association of New York American authority cited as an example in the same line of authorities regarding discretionary matters and the limits of mandamus. Used as part of the authority base for the general rule that mandamus will not issue to control bona fide exercise of discretion.
Alderman Backwell's case Cited for the proposition that the word "may" in a statute can, depending on circumstances, amount to a mandatory duty (i.e., "may" can be construed as "must" where justice or public good requires it). Discussed by Das, J. as one of the authorities relied on by petitioner; the Court concluded that the construction of "may" versus "shall" depends on context and is not conclusive here — ultimately treating the Industrial Disputes Act proviso as conferring discretion.
Julius v. Bishop of Oxford Authority cited within the Alderman Backwell discussion, supporting the principle that "may" can equate to "shall" in some statutory contexts (esp. where directed for justice/public good). Referred to as part of the discussion on statutory construction; the Court noted it is a point for consideration but did not accept that it compelled a conclusion that the proviso imposed a non-discretionary duty.
Marshland Smeeth and Fen District (Act and case discussion — McCardie, J.) (36 Geo. 3, c.100) McCardie, J.'s test distinguishing statutes that confer a discretion/power on a body from statutes that impose duties on public corporations/companies; mandamus will not control bona fide exercise of a discretion. The Court adopted this test to determine that the proviso to section 10(1) gives the appropriate Government a wide and unfettered discretion (including considerations of policy and inexpediency), and therefore mandamus should not be issued to compel the Government to make a reference.

Court's Reasoning and Analysis

The Chief Justice began by examining Article 226 of the Constitution, particularly the phrase "and for any other purpose." He observed that Article 226 was deliberately wider than Article 32 (the corresponding provision for the Supreme Court), and must therefore encompass purposes beyond enforcement of Part III fundamental rights. However, the Court rejected an interpretation that would allow writs "for any purpose it pleases" and read the phrase ejusdem generis with "for the enforcement of any of the rights conferred by part III" — concluding the power extends to enforcement of legal rights and performance of legal duties.

The Court emphasized that Article 226 is an extraordinary remedy and cannot be used where ordinary remedies (e.g., suits) provide adequate relief; it should be invoked when ordinary legal process cannot give adequate and prompt relief.

Applying these principles to the Industrial Disputes Act, the Court analyzed section 10(1) and its proviso. The text of section 10(1) gives the appropriate Government the power to refer disputes to a Board, Court of inquiry or Tribunal. The proviso provides that where the dispute relates to a public utility service and a section 22 notice has been given, "the appropriate Government shall, unless it considers that the notice has been frivolously or vexatiously given or that it would be inexpedient so to do, make the reference."

The Court held that despite the use of the word "shall" in the proviso, the presence of exceptions expressed in terms of Government's consideration (for example, "inexpedient") vests a wide discretion in the Government. The word "inexpedient" was characterized as very wide and sufficient, in the Court's view, to furnish a "complete discretion" to the Government, including considerations of policy which courts are not equipped to scrutinize. Because the decision to refer or not to refer was left entirely to Governmental discretion, the Court held that the question of bona fide or mala fides cannot arise in a manner that would allow mandamus to issue.

The Court relied on established authorities (English and American) that mandamus will not lie to control a discretion, since issuing such a writ would either improperly remove the discretion from the Government or be ineffectual (the Government could simply assert it had exercised its discretion). The Chief Justice therefore concluded the present application was misconceived and should be rejected.

Shearer, J. concurred without additional comment. Das, J. agreed with the Chief Justice and added specific observations on the two decisions relied upon by the petitioner's counsel (Alderman Backwell and Marshland Smeeth): while acknowledging those authorities, Das, J. explained that the correct test is whether the statute creates a power/discretion or imposes a duty/obligation. Applying that test to sub-section (1) of section 10 and its proviso, Das, J. concluded the statute confers a power/discretion rather than a mandatory duty and therefore the writ sought should not be issued.

Holding and Implications

Holding: The application for a writ of mandamus was dismissed/rejected and the rule was discharged. The State Government was awarded its costs, assessed at five gold mohurs.

Implications:

  • Direct effect on the parties: The petition seeking to compel the State Government to refer the dispute under the proviso to section 10(1) was refused; the respondent State Government is entitled to costs (five gold mohurs) and the rule discharged.
  • Legal implication as applied by the Court: The Court applied established principles that mandamus will not ordinarily issue to control an exercise of statutory discretion; it construed the proviso to section 10(1) as conferring a wide discretion on the appropriate Government, including considerations of inexpediency that the Court will not probe.
  • The opinion does not purport to create a new precedent beyond applying existing authorities and principles to the facts before the Court; its decision is limited to the rejection of the petition and the award of costs to the State.

Rule discharged. (As recorded in the opinion.)

Show all summary ...

Meredith, C.J:— This is an application under. Article 226 of the Indian Constitution for the issue of a writ in the nature of mandamus upon the State Government of Bihar directing it to refer, an industrial dispute to a Tribunal for adjudication under the proviso to section 10(1) of the Industrial Disputes Act, 1947 (Act no. XIV of 1947).

The petitioner is the Vice President of the Wire Products Labour Union, Jameshedpur, which, it is stated, is a registered trade union and has a membership of over 2,000 workers who are employed in the Indian Steel and Wire Products Limited, which is a public utility service.

The facts stated in the petition may be summarized as follows:— In the year 1947 an award was given by the Chairman, Industrial Tribunal, who decided inter alia that the management and the Union should evolve through mutual consultation a suitable wage structure for the workmen. One Mr. John was then the president of the Union, and he agreed to a wage structure which was later enforced by the management some time in February, 1949. This wage structure was detrimental to the interests of the workers and had not been sanctioned either by the executive committee of the Union or its general body. Accordingly, the workers, through their executive committee, passed a vote of no confidence against Mr. John and the other office bearers of the Union in April, 1949, and elected one Munshi Ahmad Din as their president and other trade union workers allied to the socialist party of India as office bearers, including the petitioner as Vice President. On the 26th of July, 1949, the Union addressed a letter to the management asking that the question of wage structure might be re-opened. But this proposal was rejected. It is further stated that a number of items of the award of 1947 had not been given effect to by the management, and the Union forwarded a list of the outstanding grievances of the workers to the management, and requested immediate attention to be paid to them failing which the Union would take such steps as it thought fit. As this was not accepted by the management on the 19th of September, 1949, notice was served on the managing director under sub-section (1) of section 22 of the Industrial Disputes Act stating that a strike would be organized on and from Friday, the 14th of October, 1949. A conciliation officer attempted to arrive at a settlement but failed, and the Conciliation officer intimated this failure to the Government. But on the 13th of October, 1949, the Government informed the Union by telegram that it had decided not to refer the dispute to a Board or Tribunal as it considered it inexpedient to do so. The strike of the workers commenced on the 14th of October, 1949, and continued for 75 days, on which date the Deputy Commissioner of Jamshedpur declared the strike illegal, whereupon the Union called off the strike.

It is stated that the Government acted mala fide in refusing to refer the dispute to a Tribunal for adjudication, and, therefore, did not carry out its legal duty under section 10.

The first question is whether the Court has any power to issue writs or directions in a matter of this kind which cannot be said to involve the enforcement of the fundamental rights laid down in part III of the Constitution.

Article 226(1) is in these terms:

“226. (1) Notwithstanding anything in Article 82, every High Court shall have power throughout the territories relation to which it exercises jurisdiction, to issue to any person or authority, including in appropriate cases any Government, within those territories directions, orders or writs, including writs in the nature of habeas corpus, mandamus, prohibition quo warranto and certiorari, or any of them, for the enforcement of any of the rights conferred by part III and for any other purpose.”

Reliance is placed on the words “and for any other purpose”. It is quite clear that these words have been added advisedly, and must mean something in addition to the enforcement of the rights conferred by part III, and this is so whether they be read ejusdem generis or otherwise. It is clear because Article 32, which is the corresponding provision for the Supreme Court, does not contain these words, but speaks merely of “the enforcement of any of the rights conferred by this part”, and that is obviously because the original jurisdiction of the Supreme Court extends only to the enforcement of the fundamental rights. And this view receives confirmation from the terms of Article 139 which says:

“The parliament may by law confer on the Supreme Court power to issue directions, orders or writs, including writs in the nature of habeas corpus mandamus, prohibition of quo warranto and certiorari or any of them, for any purposes other than those mentioned in clause (2) of Article 32.”

Undoubtedly, therefore, Article 226 contemplates the issue of writs and directions for purposes other than the enforcement of the fundamental rights. At the same time the word's can hardly, mean that the High Court can issue writs for any purpose it pleases. I think the correct interpretation is that the words mean for the enforcement of any legal right and the performance of any legal duty. To that extent the words must be read ejusdem generis, which is the ordinary principle of construction.

Moreover, it could never have been intended that resort could be had to this extraordinary procedure, where an adequate remedy is available by ordinary legal process, for example by suit. Otherwise the ordinary legal procedure, including the payment of court-fees, would be abrogated application under Article 226, in my judgment, is and must remain an extraordinary remedy to be used where ordinary legal process cannot give adequate and prompt relief.

Now turning to the present case, let us see if there is any clear legal duty of the Government which it has failed to perform. To this the answer must clearly be in the negative. Section 10(1) of the Industrial Disputes Act says:

“10(1) 17 any industrial dispute exists or is apprehended, the appropriate Government may, by order in writing—

(a) refer the dispute to a Board for promoting a settlement thereof; or

(b) refer any matter appearing to be connected with or relevant to the dispute to a Court for inquiry; or

(c) refer the dispute to a Tribunal for adjudication;”

All this is clearly, purely discretionary. Next comes the proviso in these terms,

“Provided that where the dispute relates to a public utility service and a notice under section 22 has been given, the appropriate Government shall, unless it considers that the notice has been frivolously or vexatiously given or that it would he inexpedient so to do, make it reference under this sub-section notwithstanding that any other proceedings under this Act in respect of the dispute may have commenced.”

It is conceded that we are concerned with a public utility service and that a notice under section 22 has been given. But, on the other side, it is conceded that Government has refused to make the reference on the express ground that it considers it would be inexpedient so to do. The word “inexpedient” is very wide, and, in my judgment, despite the use of the word “shall” it gives a complete discretion to Government. Government might consider a reference inexpedient for all sorts of reasons, including reasons of policy, which are no business of the Courts, and it might well be that Government would not wish to disclose its reasons. That being so, in my opinion, the question of bona fide or mala fides cannot at all arise, since the matter is left entirely, to the discretion of Government.

It is well settled, both in England and in America, that mandamus will not issue in a matter of discretion, see, for example, The King v. Marshland Smeeth and Fen District Commissioners, Exparte Bassett,(2), and, in America, In the matter of Robert L. Cutting,(3), United States ex. rel. International Contracting Co. v. Deniel S. Lament(4), and Intestate Commerce Commission v. United States of America ex. rel. Members of the Waste Merchants Association of New York(5).

The reason why this limitation is imposed is, quite plain. Suppose we order the Government to make the reference by the issue of a writ. We are depriving Government of the discretion which the law allows it. While if the writ is issued to compel exercise of this discretion, then it will be infructuous because the reply would be: “We have exercised our discretion.”

In my opinion, the present application was misconceived, and must, therefore, be rejected. The State Government is entitled to its costs, which. I would assess at five gold mohurs.

Shearer, J.:— I agree with my Lord the Chief Justice and have nothing to add.

Das, J.:— I have had the advantage of seeing the judgment proposed to be delivered by my Lord the Chief Justice. I so entirely agree with him that it is not necessary for me to add anything except a few words about two decisions on which Mr. Awadhesh Nandan Sahay placed reliance.

Mr. Sahay has contended that the proviso to section 10(1) of the Industrial Disputes Act, 1947, imposes a duty on the appropriate Government to refer an industrial dispute, relating to a public utility service, in which a notice under section 22 has been given, to a Board, or a Court of inquiry or a Tribunal for adjudication. His contention is that the use of the word ‘may’ in the sub-section, and ‘shall’ in the priviso, makes no difference, and despite the use of the word ‘may’ in the sub-section, a duty is imposed, though the duty is to be performed subject to the, fulfilment of certain conditions. Mr. Sahay argues that even when a duty is to be performed subject to certain conditions, the non-performance of the duty on arbitrary grounds is no exercise of discretion, and will give the party aggrieved a right to move this Court for an order directing performance of that duty. The two decisions on which Mr. Sahay has relied are Alderman Backwell's case, and the King v. Marshland Smeeth and Fen District Commissioners. In Alderman Backwell's case several creditors of the Alderman petitioned for a Commission of Bankruptcy against him. On behalf of the Alderman, the plea taken was that a majority of the creditors had compounded with him, and the Alderman having already made very fair proposals, the granting of the Commission might for some time be suspended. The matter came before the Lord Keeper who declared that though the words in the Act of Parliament were that the Chancellor may grant a Commission of Bankruptcy, yet that ‘may’ was in effect ‘must’, and the granting of a Commission was not a matter discretionary in him. A reference was made to Julius v. Bishop of Oxford where it was observed that where a statute directs the doing of a thing for the sake of justice or the public good, the word ‘may’ is the same as ‘shall’. It was, however, pointed out that the construction of the words ‘may’ and ‘shall’ depended on circumstances. In the other case [King v. Marshland Smeeth and Fen District Commissioners] also, the word ‘shall’ was used in the statute. By section 1 of the Marshland Smeeth and Fen District Act, 1796 (36 Geo. 3, C. 100), it was provided as follows—

“Be it enacted that the said tracts of common and waste lands, called Marshland Smeeth and Marshland Pen, shall be effectually drained, and that the same shall be stinted and regulated, set out, in closed divided and allotted, by such commissioners in such manner and under such powers and authorities, and subject to such rules, orders and directions, as are hereinafter appointed, mentioned and declared”.

One of the owners of land in the district alleged that the commissioners had failed to drain the district effectually. The Divisional Court issued a writ of mandamus which, after reciting that the commissioners had neglected to drain the district effectually, commanded them to do so. The commissioners by their return to the writ alleged, that they had carried out the order of the Court to the best of their ability. The plaintiff by his reply to the return joined issue thereon, and claimed damages for injury sustained by his land through the commissioners neglect to drain the district. One of the questions raised was whether the commissioners were entitled to argue that the writ of mandamus should not have been issued by the Divisional Court. McCardie, J. held that the Commissioners were so entitled. He then observed as follows:

“Concisely put, the defendants contend that the Acts which govern them are premissive rather than directory, and that the commissioners have a discretion as to the carrying out of those Acts of Parliament which, if exercised bona fide, cannot be supervised, governed or directed. The validity of this contention must, I think, depend in every case upon the true construction of the enactment in question. If, for example, a jurisdiction be given to an inferior Court all that Court can be called upon by the High Court to do, save in special circumstances, is to hear and determine the matters brought before it in a regular and proper manner. Hence a mandamus is granted, if jurisdiction has been declined by the inferior Court, to hear and determine only. If the inferior Court has a discretion as to the decision it may give, then if that discretion be exercised bona fide and not arbitrarily or illegally and without reference to extraneous considerations the Court will not control the exercise of that discretion. See the cases cited in short and Mellor on Crown Office practice, 2nd ed. pp. 200 and 201. But I conceive that Acts of Parliament which confer a judicial discretion upon a subordinate tribunal are fundamentally different from Acts of Parliament which place duties upon such bodies as canal companies, dock companies, land drainage corporations and the like. The object of the former enactments is to secure a hearing and determination. They could scarcely provide that a decision should be given contrary to the view of the tribunal. But the object of the latter class of enacments is wholly distinct. They aim at securing a benefit to the public or a particular section of the community by creating a body for the performance of certain public works and the discharge of the duties appropriate thereto. But even in the latter class it may be that the Act of Parliament has granted a power rather than imposed a duty, has conferred a discretion rather than an obligation. If a power or discretion only, as distinct from a duty, exists then the prerogative writ of mandamus will not be issued by the Court.”

Therefore, the test laid down by McCardie, J. is whether the statute has granted a power rather than imposed a duty, has conferred a discretion rather than an obligation. It was pointed out that the use of the word “may” as distinguished from the word ‘shall’ was, in no way, conclusive. It is mere point for consideration. Taking sub-section (1) of section 10 of the Industrial Disputes Act, 1947, and the proviso thereto, it seems clear to me that what is intended by the statute is to give the appropriate. Government a power to refer for settlement or adjudication an industrial dispute in a public utility service, when a strike notice has been given, notwithstanding that any other proceedings under the Act in respect of the dispute may have commenced. It is a power or a discretion which is given rather than a duty or an obligation. The use of such expressions as “unless it considers that the notice has been frivolously or vexatiously given”, “or that it would be inexpedient so to do” makes it quite clear, in my opinion, that a very wide and unfettered discretion is given to the appropriate Government. If that be the correct construction of the proviso, and I do not think any other construction is possible, then on the very decisions relied on by Mr. Sahay, this Court should not issue any writ or order of the nature wanted by Mr. Sahay against the State Government.

K.D
Rule discharged.