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Judgment Summary — B.R. Tuli, J.

Factual and Procedural Background

This petition was filed by the workmen employed by respondents 2 to 4 (three Transport Companies) seeking quashing of a notification dated 5 March 1968 (annexure A-12) published in the Haryana Government Gazette.

On 17 April 1957 a settlement was reached under section 12(3) of the Industrial Disputes Act between the workers (represented by the District Motor Transport Workers Union, Karnal) and the Karnal Co-operative Transport Society Ltd. Item No.1 of that settlement provided that terms and conditions of service applicable to Punjab Roadways' employees (and as modified by Government) would be applicable to Karnal Co-operative Transport Society employees.

In 1965 the original Karnal Co-operative Transport Society Ltd. was divided into three successor Societies (the present respondents 2, 3 and 4), who were treated as successors-in-interest to the 1957 settlement. Those respondents gave dearness allowance (DA) increases to their employees in line with increases by the Punjab Government on several occasions (18 Feb 1965, 15 June 1966, 8 Feb 1967), but refused to grant further increases announced by the Punjab Government on 11 May 1967 and subsequent increments (15 Dec 1967 and 11/15 Jan 1968).

The workmen issued a notice dated 13 January 1968 demanding DA from 1 May 1967 as had been given to Punjab Roadways employees. The President of India, by a notification dated 15/16 February 1968 (in exercise of clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act, 1947), referred for adjudication to the Industrial Tribunal, Haryana, the question whether the workmen should be granted DA as given to Punjab Roadways on or after 1 May 1967.

Subsequently, a notification dated 5 March 1968 purported to amend the earlier Government notification by substituting the word "Haryana" for "Punjab" in the original notification. The present writ petition challenged the 5 March 1968 amendment notification.

Legal Issues Presented

  1. Whether the Government/President had power to amend the earlier reference notification (dated 15/16 February 1968) by substituting "Haryana" for "Punjab" so as to alter the subject-matter or scope of the reference.
  2. Whether the amended notification could be regarded as a permissible correction of a clerical error (as opposed to a substantive substitution that withdraws or supersedes the original reference).
  3. Whether the 5 March 1968 notification satisfied the condition precedent required for a valid reference (in particular, whether an opinion that an industrial dispute existed was formed and recorded).

Arguments of the Parties

Petitioners' Arguments

  • The petitioners contended that the Haryana Government (or the President acting under the Act) had no power to amend the original reference by substituting "Haryana" for "Punjab" because the workmen had never raised any demand based on Haryana Roadways rates; their demand was founded on increases given by Punjab Roadways.
  • They argued that the 5 March 1968 amendment effectively withdrew or superseded the earlier notification and constituted an attempt to refer an "imaginary" dispute not actually raised by the workmen. Unless an industrial dispute between the workmen and the management existed, the State Government had no jurisdiction to refer such a dispute for adjudication.
  • Reliance was placed on State of Bihar v. D.N. Ganguly (A.I.R. 1958 S.C. 1018) and Madras High Court decisions (Thambi Motor Service cases), and a Division Bench decision in Dalmia Dadra Cement Ltd. v. State of Punjab, to support the proposition that an appropriate government has no power to amend or modify a reference once made under section 10(1) of the Industrial Disputes Act.

Respondents' / Government's Position (as placed before the Court)

  • The respondents (through their counsel) relied on the Supreme Court judgment in the Dabur (Dr. S.K. Burman) case, where an amendment substituting the Labour Court at Ranchi for Patna was held to be a correction of a clerical mistake and therefore permissible. That decision stands for the proposition that clerical errors in a notification can be corrected by amendment without amounting to withdrawal or cancellation of the original reference.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Bihar v. D.N. Ganguly, A.I.R. 1958 S.C. 1018 Proposition that the State Government has no power to cancel or supersede a notification under section 10(1) of the Industrial Disputes Act. The petitioners relied on this authority to support the contention that the 5 March 1968 amendment could not validly withdraw or supersede the earlier reference; the Court treated this principle as supportive of the petitioners' position.
Thambi Motor Service, Salem v. Labour Court, Coimbatore — (1960) 11 L.L.J. 563 (Single Judge, Madras) Held that the appropriate Government has no power to amend or modify a reference once made under section 10(1) of the Act. Cited by petitioners for the proposition that an amendment of a reference is impermissible; Court considered this authority in assessing the validity of the March amendment.
Workers of Thambi Motor Service v. Thambi Motor Service, Salem — (1963) 1 L.L.J. 497 (Division Bench, Madras) Affirmation of the Single Judge's view that amendment/modification of a reference by the appropriate Government is not permissible. Used to reinforce the petitioners' contention that the State could not lawfully amend the earlier notification to substitute a different basis for the reference.
Dalmia Dadra Cement Ltd. v. State of Punjab — (1967) 1 L.L.J. 222 (Division Bench) Corrigendum/addition to a notification was struck down for three reasons: (1) it was not an independent notification under section 10(1); (2) the original notification did not require amendment and the corrigendum improperly sought to include a dispute between different parties; (3) it was not expressed to be in the name of the Governor nor signed by order of the Governor as required under Article 166. The Court relied on this decision and its three articulated reasons as precedent supporting the view that additions or amendments that seek to include different parties or alter the reference impermissibly can be struck down.
Dabur (Dr. S.K. Burman) (Private) Ltd., Deoghar v. Their Workmen Holds that a clerical error in a reference notification (e.g., wrong Labour Court named) can be corrected by amendment; the test is whether the relief claimed in the original notification can still be granted after amendment. If so, the amendment is a permissible correction; if not, it is a substantive substitution. The Court considered this decision and distinguished it: in the present case the substitution of "Haryana" for "Punjab" would prevent the Tribunal from granting the relief claimed by the workmen (i.e., DA at Punjab Roadways rates), so it could not be treated as a mere clerical correction under Dabur.

Court's Reasoning and Analysis

The Court proceeded through the following analytical steps (as stated in the opinion):

  1. It examined the origin and basis of the workmen's demand: the demand notice dated 13 January 1968 sought dearness allowance from 1 May 1967 based on increases given by the Punjab Roadways. The 1957 settlement — which tied terms to Punjab Roadways — had a 10-year term and had lapsed by the time the 1968 demand was made.
  2. The Court emphasized that the workmen did not demand DA at rates fixed by Haryana Roadways (indeed Haryana Roadways had not announced such increases). Thus, the substitution of "Haryana" for "Punjab" in the notification did not reflect the substance of the demand actually made by the workmen.
  3. The Court analyzed the 5 March 1968 notification and observed that it did not state that the President had formed the requisite opinion that an industrial dispute existed between the workmen and the management of respondents 2 to 4. The Court treated formation and recording of such an opinion as a condition precedent for a valid reference.
  4. The Court examined precedent distinguishing permissible clerical corrections from substantive amendments. It acknowledged the rule from Dabur that a clerical error can be corrected if the same relief can be granted under the amended notification. Applying that test, the Court found that under the amended notification the Tribunal would not be able to grant the relief claimed (DA at Punjab Roadways' rates).
  5. The Court also relied on authorities holding that an appropriate government cannot amend or modify a reference under section 10(1) in a way that withdraws or supersedes the original reference or attempts to include a dispute between different parties not represented in the original reference.
  6. Having found that (a) the petitioners' demand concerned Punjab Roadways rates, (b) the 5 March 1968 notification substituted "Haryana" though no such demand existed, and (c) the 5 March notification did not record the necessary opinion that an industrial dispute existed, the Court concluded the amendment was impermissible and must be quashed.

Holding and Implications

Holding: The petition was allowed and the impugned notification dated 5 March 1968 (annexure A-12 to the writ petition) was quashed.

Implications:

  • The direct effect of the decision is that the 5 March 1968 amendment substituting "Haryana" for "Punjab" is declared invalid; the attempted amendment cannot be treated as a permissible clerical correction because it altered the scope such that the relief originally sought (DA at Punjab Roadways rates) could not be granted under the amended notification.
  • The Court ordered costs and counsel's fee (Counsel's fee Rs. 100/- was awarded) and recorded "Petition allowed." The opinion makes no assertion that it establishes a new broader precedent beyond applying and distinguishing the cited authorities; it applied existing principles concerning the limits on amending references under section 10(1) and the test from Dabur for clerical corrections versus substantive amendments.
Petition allowed.

    Workmen v. State Of Haryana

    B.R Tuli, J.:— This petition has been filed by the workmen of respondents 2 to 4 which are Transport Companies and seeks the quashing of notification No. 5991 published in Haryana Government Gazette dated the 5th of March, 1968, (annexure A12 to the writ petition).

    2. The facts are that on the 17th of April, 1957, a settlement was arrived at under section 12(3) of the Industrial Disputes Act (hereinafter called the Act) between the workers, represented through the District Motor Transport Workers Union (Registered). Karnal and the Management of the Karnal Co-operative Transport Society Limited, Karnal. Item No. 1 of the settlement is as under:—

    “…..The terms and conditions of service applicable at present to all categories of employees of Punjab Roadways and as may be modified from time to time from the Government, would be a plicable to the employees of the Karnal Co-operative Transport Society Ltd., Karnal. The previous record of service, educational qualifications would not, however, disqualify the present employees in any way for the purposes of continuing in the employment of the company. A copy of the service rules enforced at present in the Punjab Roadways obtained by the Labour Officer would be supplied to both the parties for their guidance and compliance.”

    3. The Karnal Co-operative Transport Society Limited, was divided into three Societies in 1965, these Societies being respondents 2, 3 and 4. The said Societies being successors-in-interest of the Karnal Co-operative Transport Society Limited were bound by the said settlement. In accordance with that settlement the said respondents went on increasing the dearness allowance payable to the workmen as and when those were increased by the Punjab Government. These increases were made on the 18th of February, 1965, 15th of June, 1966, and the 8th of February, 1967. On the 11th of May, 1967, the Punjab Government announced further increase in the dearness allowance of its employees but the said respondents refused to allow the increase to their employees. Farther increases were made on the 15th of December, 1967 and the 11th/15th of January, 1968, which were also not allowed to the workmen by respondents 2 to 4. The workmen sent a notice dated the 13th of January, 1968 to the said respondents in which they demanded dearness allowance from the 1st of May, 1967, as had been given to the Punjab Roadways employees and they also made some other demands with which we are not concerned. The matter was brought to the notice of the Haryana Government which was under President's rule then and the following notification dated the 15th/16th February, 1968, was issued:—

    “No. ID/3914 — Whereas the President of India is of opinion that an industrial dispute exists between the workmen and the management of (i) Karnal Co-operative Transport Society Ltd., Karnal, (ii) Karnal Delhi Co-operative Transport Society Ltd., Karnal, and (iii) New Karnal Co-operative Transport Society Ltd., Karnal, regarding the matters hereinafter appearing;

    And whereas the President of India considered it desirable to refer the 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, the President of India, hereby refers to the Industrial Tribunal Haryana, Chandigarh, constituted under section 7-A of the said Act, the matters specified below, being either matters in dispute or matters relevant to or connected with the dispute as between the said management and the workmen for adjudication:—

    Whether the workmen should be granted dearness allowance as has been given to the Punjab Roadways Employees on or after 1st May, 1967?”

    Copies of this notification were sent to the Presiding Officer, Industrial Tribunal, Haryana, Chandigarh, Statistical Officer, Office of the Labour Commissioner Haryana, Chandigarh Labour Officer-cum-Conciliation Officer, Karnal, respondents 2 to 4 and the District Motor Transport Workers Union, Karnal, through the General Secretary/President.

    4. After this notification the Government issued another notification dated the 5th March, 1968, which reads as under:—

    “In exercise of the powers conferred by clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act, 1947, and all other powers enabling him in this behalf, the President of India is pleased to make the following amendment in the Haryana Government Labour Department Notification No. 3915, dated 15th February, 1868, published in Haryana Government Gazette Extraordinary.

    AMENDMENT

    For the word “Punjab” occurring in the issue the word “Haryana” may be substituted.”

    5. The submission of the learned counsel for the petitioners is that the Haryana Government had no power to amend the notification so as to substitute ‘Haryana’ for ‘Punjab’ as the petitioners never raised any dispute with the management of respondents 2 to 4, that they wanted to be paid any increase in the dearness allowance at the rates allowed to Haryana Roadways employees. In fact Haryana Roadways did not grant any such increases in dearness allowance to their employees. Increases in dearness allowance had been granted by the Punjab Roadways to its employees and the demand of the petitioners was based on the increases made by the Punjab Roadways. There was thus no dispute between the petitioners and the management of respondents 2 to 4, to which the amended notification related and unless there was an industrial dispute between the workmen and the management the State Government had no jurisdiction to refer suo motu any imaginary dispute for adjudication to the Industrial Tribunal. The amendment had the effect of withdrawing the first notification dated the 15th/16th February, 1968, and making a fresh notification dated the 5th of March, 1968. According to the judgment of their Lordships of the Supreme Court in State of Bihar v. D.N Ganguly . A.I.R 1958 S.C 1018., the State Government had no power to cancel or to supersede a notification under section 10(1) of the Act. It was held by a learned Single Judge of the Madras High Court in Thambi Motor Service, Salem v. Labour Court, Coimbatore . 1960 11 L.L.J 563., that the appropriate Government has got no power to amend or modify a reference once made under section 10(1) of the Industrial Disputes Act. This judgment was affirmed by a Division Bench of that High Court in Workers of Thambi Motor Service v. Thambi Motor Service, Salem . 1963 1. L.L.J 497.. The same view was taken by a Division Bench of this Court (I.D Dua J. as his Lordship then was and R.S Narula J.) in Dalmia Dadra Cement, Ltd. v. State of Punjab . 1967 1 L.L.J 222.. In that esse original notification related to the retrenchment of 95 workmen and a corrigendum notification added 43 more workmen and the corrigendum notification was struck down let the following three reasons:—

    “(1) This is not an independent notification under section 10(1) of the Act.

    (2) Reading the second notification it is obvious that the original notification did not need any amendment and could stand by itself. By the second notification, a dispute between two different parties is sought to be included in the existing reference. Even if section 21 of the General Clauses Act could be invoked, the impugned notification has not been issued in a like manner and subject to like sanction and condition as the original notification. The impugned notification does not obviously show that the conditions precedent for the exercise of jurisdiction under section 10(1) have been satisfied in this case.

    (3) The third reason is that it is neither expressed to be in the name of the Governor nor purports to have been signed by the order of the Governor as required under Article 166.”

    6. In the instant case the workmen never demanded any increase in their dearness allowance on the basis that such increase had been allowed to the employees of the Haryana Roadways. Their demand was that they should be given the increases in their dearness allowance as had been given by the Punjab Government on the 11th of May, 1967, 15th of December, 1967, and the 11th/15th of January, 1968. There is no doubt that they based this demand on the basis of the settlement which had been arrived at on the 17th of April 1957. That settlement was for 10 years and lapsed on the expiry of that term so that when their notice of demand dated the 13th January, 1968, was issued, the settlement did not subsist between the parties. The workmen, however, raised a depute that they should be paid increased dearness allowance at the rates which had been fixed by the Punjab Roadways for its employees. Whether they were entitled to get these rate or not was for the Tribunal to decide and not for the State Government to say that the intention behind the demand was that the workmen wanted the dearness allowance at the rates allowed to the employees of Haryana Roadways. It is nowhere so stated in the demand notice for the simple reason that Haryana Roadways had not announced any increase in the dearness allowance. Secondly, the President of India in the notification dated the 5th March, 1968, did not mention that he had formed an opinion that an Industrial dispute existed between the workmen and the management of respondents 2 to 4 and the condition precedent for reference of an existing dispute to the Tribunal for adjudication was lacking. For these reasons, the notification dated the 5th March, 1968, has to be quashed.

    7. The learned counsel for the respondents have placed strong reliance on the judgment of their Lordships of the Supreme Court in Dabur (Dr. S.K Burman) (Private) Ltd. Deoghar v. Their workmen,5 where the Government had referred the dispute to the Labour Court, Patna, instead of Ranchi. By an amendment Ranchi was substituted for Patna and it was contended that the State Government had no jurisdiction to amend the notification so as to substitute Ranchi for Patna. It was held by the Supreme Court that from the facts stated by the appellant in the writ petition, it was clear that the alteration in the order of reference was a mere correction of a clerical error because by mistake ‘Patna’ had been mentioned in place of ‘Ranchi’ in the first notification. Their Lordships, in view of that finding of the High Court, held that a clerical error can always be corrected and such correction does not amount either to withdrawal of the reference from or cancellation of the reference to, the Labour Court, Patna, and that the High Court was right in rejecting the contention of the appellant. The cardinal principle to determine, whether the amendment amounts to a correction of clerical error or introduction of fresh material, is whether the relief claimed by the aggrieved party in the original notification can be granted in the proceedings which are to take place in pursuance of the amended notification. If the same relief can be granted, the mistake may be considered as clerical which can be corrected by amendment. But if the same relief cannot be granted, then it means that the original notification has been cancelled or withdrawn and another notification has been issued in its place which the State Government is not competent to do. In the instant case in the proceedings which may take place on the basis of the amended notification, the workmen will never be able to get the relief in respect of the demand or industrial dispute raised by them for which the original notification was issued, i.e, dearness allowance at the rates paid to the employees of the Punjab Roadways.

    8. For the reasons given above, this petition is allowed with costs and the impugned notification dated 5th March, 1968 (annexure A-12 to the writ petition) is hereby quashed. Counsel's fee Rs. 100/-.

    Petition allowed.

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    Workmen v. State Of Haryana
    (Nov 6, 1968)