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M/S. Duduwala & Company v. Industrial Tribunal

Rajasthan High Court
Jul 29, 1957
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Structured Summary of the Opinion (as provided)

Factual and Procedural Background

This opinion, delivered by Wanchoo, C.J., concerns three applications for writs of certiorari under Article 226 of the Constitution challenging an order of the Industrial Tribunal at Jaipur. The three matters arise from industrial disputes between Messrs Duduwala & Company (the employers and applicants before this Court) and their employees, represented by the Khan Mazdoor Congress, Bhilwara (a registered workers' union).

The disputes were referred to the Industrial Tribunal on three separate dates: 16 June 1956, 25 August 1956 and 4 September 1956. After the parties appeared before the Tribunal, both sides applied for representation by particular individuals. The Union applied to be represented by Shri R.P. Ladha (a practising advocate) under sec. 36(1)(b) of the Industrial Disputes Act, 1947, and was permitted to be so represented. The employers applied that Shri Y.S. Nahar (also a practising advocate) be permitted to represent them under sec. 36(2)(a); that application was opposed by the Union and rejected by the Tribunal on the ground that Shri Nahar's appointment (in July 1956) was a circumvention of sub-secs. (3) and (4) of sec. 36 because the disputes had already arisen or been referred by that time.

Separately, the employers sought to have two other persons (Shri Baldwa and Shri Chadmal Surana) represent them under special powers of attorney; the Tribunal refused these requests on the ground that sec. 36(2) does not permit representation on the basis of a special power of attorney. Aggrieved, Messrs Duduwala & Company filed the three certiorari applications now before this Court. The Union opposed the applications and supported the Tribunal's reasoning.

Legal Issues Presented

  1. Whether sec. 36 of the Industrial Disputes Act is exhaustive of the right to represent before an industrial court or tribunal, and therefore whether no party can claim representation through a person to whom it has given a special power of attorney.
  2. Whether a practising lawyer who holds one of the offices or capacities listed in clauses (a), (b) and (c) of sub-sec. (2) of sec. 36 can be prohibited from appearing before an industrial tribunal on the ground that his appointment was a circumvention of the prohibition contained in sub-sec. (4) of sec. 36.

Arguments of the Parties

Employers' (Appellants') Position

  • Sought permission for representation by Shri Y.S. Nahar, relying on sec. 36(2)(a) as authority for such representation despite his being a practising advocate.
  • Sought to permit Shri Baldwa and Shri Chadmal Surana to appear on the basis of special powers of attorney executed in their favour.
  • Challenged the Tribunal's refusal of these modes of representation and sought judicial review by certiorari.

Union's (Respondent's) Position

  • Opposed the employers' request to be represented by Shri Nahar on the ground that his appointment (in July 1956) was made after the disputes had arisen or been referred, and accordingly was a device to circumvent the prohibitions in sub-secs. (3) and (4) of sec. 36.
  • Supported the Tribunal's refusal to permit representation by persons acting solely on special power of attorney, on the ground that sec. 36 provides specific modes of representation and does not include special powers of attorney.
  • Supported the Tribunal's order generally; opposed the certiorari applications.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Barbeswary Bardoloi v. Industrial Tribunal, Assam Illustration that a practising lawyer may appear before an industrial tribunal if he holds one of the capacities mentioned in sub-sec. (1) or sub-sec. (2) of sec. 36. The Court relied on this authority as support for the proposition that being a practising advocate does not, per se, disqualify a person from representing a party before an industrial tribunal when he meets the qualifying office or capacity in sec. 36.
Alembic Chemical Works Co., Ltd. v. P.D. Vyas (Bombay case) Described as a case where it was held that even if a person is qualified under sub-sec. (1) or (2), a tribunal may refuse to permit appearance if the capacity was conferred to circumvent sub-secs. (3) or (4). The Court discussed this view and declined to follow the reasoning that would permit an inquiry into bona fides of the appointment; it rejected the precedence of sub-secs. (3) and (4) over sub-secs. (1) and (2) for the purposes of denying representation.

Court's Reasoning and Analysis

The Court proceeded in two stages, corresponding to the two legal issues identified.

On whether sec. 36 is exhaustive (special power of attorney issue):

  1. The Court treated the Industrial Disputes Act as a special and complete code dealing with the contingencies it addresses. Because the Act provides for specific modes of representation before industrial courts and tribunals, those modes must be regarded as exhaustive.
  2. The Court rejected any importing of the general law of representation (which might allow representation on the basis of a special power of attorney) into proceedings under the Industrial Disputes Act.
  3. Applying this principle, the Court held that sec. 36 does not contemplate representation by a person solely on the basis of a special power of attorney; therefore the Tribunal was right to refuse Shri Baldwa and Shri Surana (who sought to represent the employers on the basis of special powers of attorney).

On whether a practising lawyer holding an office under sub-sec. (1) or (2) can be barred as a circumvention of sub-sec. (4):

  1. The Court noted the established view (and cited Barbeswary Bardoloi) that a practising lawyer who holds one of the qualifying capacities in sub-sec. (1) or sub-sec. (2) is not disqualified from appearing before an industrial tribunal.
  2. It examined the possible conflict between sub-sec. (2) (which permits specified persons to represent employers/employees) and sub-sec. (4) (which, in general, prohibits a lawyer from appearing before a tribunal unless the other party consents). The Court found no textual basis for subordinating sub-secs. (1) and (2) to sub-sec. (4).
  3. The Court considered the view in the Alembic Chemical Works decision (which allowed tribunals to refuse recognition if the office was conferred to circumvent sub-secs. (3) or (4)). With respect, the Court found no justification for treating bona fides or mala fides of the appointment as a disqualifying inquiry implicit in sub-secs. (1) or (2).
  4. The Court reasoned that if legislators intended to disqualify persons appointed to the offices in sub-secs. (1) and (2) on the ground that the appointment was merely to enable a lawyer to appear, they would have provided for such a limitation expressly. Lacking such text, the Court refused to read a bona fides inquiry into sub-secs. (1) and (2).
  5. Accordingly, the Court held that the timing of the acquisition of the qualifying capacity (i.e., whether the office was acquired long before or shortly before a dispute arose) is immaterial provided the qualification exists at the time the person applies to the industrial court for appearance. The tribunal need not adjudicate on the motives behind the appointment.
  6. Applying this test, the Court concluded that the Tribunal erred in inquiring into and holding that Shri Nahar's appointment was a circumvention of sub-sec. (4); as Shri Nahar is apparently qualified under sec. 36(2)(a), he must be permitted to appear.

Holding and Implications

Holding: The Court partly allowed the certiorari applications: it set aside the Industrial Tribunal's order insofar as it refused to permit Shri Y.S. Nahar to appear for Messrs Duduwala & Company and directed that Shri Nahar be permitted to appear before the Tribunal on behalf of the employers so long as he continues to hold the qualification specified in sub-sec. (2)(a) of sec. 36. The remainder of the employers' prayer (including permission for persons to appear solely under special powers of attorney) was refused. The parties were ordered to bear their own costs.

Implications / Consequences:

  • Direct effect: The Industrial Tribunal's order denying appearance by Shri Y.S. Nahar was quashed and Shri Nahar must be permitted to appear while he holds the qualifying office under sec. 36(2)(a). The refusal to permit representation by persons acting only under special powers of attorney was upheld.
  • Broader effect: The Court affirmed that sec. 36 constitutes the exhaustive code for representation before industrial courts and tribunals under the Industrial Disputes Act; it rejected reading into subs. (1) and (2) an implied restriction that would allow tribunals to inquire into the bona fides of appointments when the statutory qualification otherwise exists. The opinion does not purport to lay down any wider rule beyond these conclusions and does not indicate that it is creating a new, separate precedent beyond applying these statutory interpretive principles to the facts before it.

This summary is confined strictly to the material contained in the provided opinion and does not add or infer facts or holdings beyond the text.

Show all summary ...

Wanchoo, C.J:— These are three applications for issue of a writ of certiorary under Art. 226 of the Constitution against the order of the industrial Tribunal at Jaipur.

2. We propose to decide them by one judgment as the paints raised in them are common. It seems that disputes are going on between Messrs Duduwala and Company on the one hand and their employees on the other, represented by Khan Mazdoor Congress Bhilwara, a registered Union of workers. In one of the cases the dispute was referred to the Tribunal on the 16th of June, 1956, in the other on the 25th of August, 1956, in the third on the 4th of September, 1956. Soon after the parties had appeared before the Industrial Tribunal, applications were nude both on behalf of the employers and the Union for appearance through certain representatives. The Union applied for appearance through Shri R.P Ladha, a practising advocate. The case of the Union was based on sec. 36(1)(b) of the Industrial Disputes Act, 1947, and Shri R.P Ladha was allowed to represent the Union in view of that provision. The employers, who are the applicants before us, prayed that they might be represented through Shri Y.S Nahar, also a practising lawyer and said that he was competent to represent them under sec. 36(2)(a). This was opposed by the Union and the Tribunal, while apparently holding that Shri Nahar was the Joint Honorary Secretary of the Association of Employers of which Messrs Duduwala and Company were member and would, therefore, be qualified under Sec. 36(2) (as to represent the employers, did not permit him to do so on the ground that as Shri Nahar was appointed in July, 1956, and as the disputes, out of which these two cases arose, had either arisen or been referred to the Tribunal by that time, the appointment of Shri Nahar was to circumvent the law as contained in sec. 36(3) and (4) of the Act. Sub-sec. (3) prohibits a lawyer from appearing in any conciliation proceedings or before any industrial court and sub-sec. (4) prohibits a lawyer from appearing before a tribunal unless the other side consents.

3. Besides this the employers also wanted to be represented by two other persons, namely Shri Baldwa and Shri Chadmal Surana, in whose favour they had executed special powers of attorney. The Industrial Tribunal did not allow them on the ground that sec. 36(2) did not permit anyone to represent the employers before it on the basis of a special power of attorney. Aggrieved by this order of the Tribunal, Messrs Duduwala and Company have filed three applications.

4. The application has been opposed by the workers Union and learned counsel appearing on their behalf supports the grounds on which the Industrial Tribunal has found against the employers.

5. There are thus only two points of law in this case—

(1) Whether sec. 36 is exhaustive of the right to represent before an industrial court or tribunal and, therefore, no party can claim to be represented through a person to whom he has given a special power of attorney, and,

(2) Whether a practising lawyer, who holds one of the capacities in clauses (a)(b) and (c) of sec. 36(2) can be prohibited from appearing before an industrial tribunal on the ground that his appointment was a circumvention of the provisions of sub-sec. (4).

6. So far as the first point is concerned, the answer to our mind is quite clear. The Industrial Disputes Act is a special law providing for certin special contingencies. It must therefore be treated as complete code in itself and when it provides for representation of employees and employers before industrial courts or tribunals, that must be held to be exhaustive. There is no reason why we should import the provisions of the general law regarding representation before courts and tribunals appointed under the Industrial Disputes Act. We have, therefore, no hesitation in coming to the conclusion that sec. 36 does not contemplate anyone representing employers or employees on the bests of any special power of attorney and, therefore, Shri Baldwa and Shri Surana's right to represent Messrs Duduwala and Company was rightly rejected. It is enough to say that there is no question of circumvention through this method of appointment by special power of attorney. Sec. 36 mentions certain specific ways of representation, and appointment through a special power of attorney is not one of them. A person, therefore, be he a lawyer or any other person cannot claim to represent the employers or employees before an industrial court or tribunal on the basis of a special power of attorney.

7. Now, we come to the second point, namely whether a practising lawyear, who is appointed to one of the offices mentioned in clauses (a), (b) and (c) of sub-sec (2) of sec. 36 can appear for the employers in spite of the fact that sub-sec. (4) of sec. 36 provides that no lawyer can appear without the consent of the other party before an industrial tribunal. It is now well settled that a lawyer can appear before an industrial tribunal if he holds one of the capacities mentioned in sub-sec. (1) or sub-sec. (2) of sec. 36 and his being a practising lawyer will not be a disqualification for his so appearing. There are innumerable cases in support of this view and we need only refer to Barbeswary Bardoloi v. Industrial Tribunal, Assam (2) as an illustration. The question then arises whether the theory of circumvention of sub-sec. (4) should be introduced to negative the effect of sub-sec. (2). It is enough to point out that sub-sec. (2) is not subject to sub-sec. (4) and the two provisions stand separate in a Bombay case Alembic Chemical Works Co., Ltd. v. P.D Vyas* (2), the view seems to have been taken that even though a person may be qualified under sub-sec. (1) and sub-sec. (2) to represent an employer or an employee, the tribunal may yet refuse to permit him to do so on the ground that the capacity mentioned in sub-sec. (1) or sub-sec (2) was conferred on him for this specific purpose of circumventing sub-sec. (3) or sub-sec. (4) of sec. 36. With all respect, we find it difficult to see why sub-sec. (5) or sub-sec. (4) of sec. 36 should be given precedence over sub-sec. (1) or sub-sec. (2). Sub-sec. (3) and sub-sec. (4) prevent legal practitioners from appearing before industrial courts or tribunals in certain circumstances. Sub-secs. (1) and (2) allow for representation of employers and employees before such courts and tribunals. There is nothing in sub-sec. (1) or sub-sec. (2) which lays down that if the qualifications mentioned in these sub-secs. are conferred with the idea of enabling a legal practitioner to appear before the court or tribunal, the court or tribunal will not recognise such appearance. It should not have been difficult if it was the intention that legal practitioners shall not be allowed to appear before a tribunal to provide that if the appointment of the officer mentioned in sub-secs. (1) and (2) was merely for the purpose of enabling a legal practitioner to appear before the tribunal, the tribunal will not permit this in the absence of any such provision, we do not see why we should add this to sub-sec. (1) or (2) on the theory that such appointment at a time when an industrial dispute was pending or was expected to arise will be a circumvention of sub-sec. (3) or sub-sec. (4).

8. It cannot be said that there is moral turpitude attaching to a lawyer appearing before an industrial tribunal. Even sub-sec. (4) recognises that lawyer can appear before industrial tribunal with the permission of the tribunal and the consent of the parties, There is nothing, therefore, inherently wrong in lawyers appearing before such tribunals, Further, there are authorities which lay down that if a lawyer fulfils the conditions laid down in sub-sees. (1) and (2), he has a right to represent the employer or the employee. We cannot see why a distinction should be made on the theory of circumvention and a lawyer should be permitted to appear for the employer or the employee if he has been holding one of the offices mentioned in sub-sec. (1) or sub-sec. (2) before the dispute arose, but should not be so allowed to appear if he was sleeted or appointed to the office after the dispute. In this very case, we know that Shri Ladha, a practising advocate has been permitted to appear and he is not to be treated a case of circumvention because he was appointed to the office, which gives him a right to represent the employees, in 1954, about two years before the dispute arose. If one were to look at such appointments with a grain of suspicion, one may say that the appointment of Shri Ladha in 1954 to the office might have been with a view that his services might be available if and when a dispute arose. But that is not supposed to be circumvention of the provisions of sub-sec. (3) or sub-sec. (4). But if a person is appointed, say a few days before the dispute was referred to the industrial authority, it is said that his appointment was with a view to circumvention. If this view is taken, it will all depend on the opinion of the industrial tribunal whether a particular person, who is qualified under sub-sec. (1) or sub-sec. (2) should not be allowed to appear. As we see, it, we can see no justification for allowing a lawyer to appear because he was elected or appointed to office a long time before the dispute arose and not allowed to appear because he was appointed to the office a few days before or a few days after the dispute arose. We are, therefore, of opinion that if the qualification prescribed in sub-sec. (1) or sub-sec. (2) of sec. 36 is there, it is immaterial when the person holding that qualification acquired it. All that the industrial court has to see is that the qualification should have been acquired before the person applies to the industrial court for appearance therein. If the qualification is there, the industrial tribunal need not go into the bona fides or the mala fides of the appointment. We are of opinion that sub-secs. (1) and (2) of sec. 36 do not contemplate this enquiry as to the bona fides and mala fides. If the appointment is there and is legally made, the person holding the appointment is, in our opinion, entitled to represent the employer or the employees under sub-sec. (1) or sub-sec. (2) of sec. 36.

9. In this view of the matter, the industrial tribunal was wrong in going into the bona fides or otherwise of Shri Nahar's appointment and holding that his appointment was circumvention of the law as laid down in sub-sec. (4) of sec. 36. As apparently, Shri Nahar is qualified under sec. 36(2)(a), he is entitled to appear before the industrial tribunal.

10. We, therefore, partly allow this application and set aside the order of the Industrial Tribunal with respect to Shri Nahar and direct that Shri Nahar be permitted to appear before the Tribunal on behalf of Messers Duduwala and Company so long as he holds the qualification mentioned in sub-sec. (2)(a) of sec. 36. The rest of the prayer is refused. In circumstances of the case, we order parties to bear their own costs.