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Smart Summary

Factual and Procedural Background

This matter arises from a reference made by a learned Single Judge in 29 Civil Second Appeals concerning the question:

“Whether the Civil Courts have jurisdiction to try such suits?”

The phrase "such suits" refers to suits filed by employees of the Rajasthan State Road Transport Corporation (the "Corporation") which challenge the pendency or outcome of departmental enquiries instituted against them for alleged misconduct in the course of employment and which claim rights or liabilities under the general or common law.

The opinion sets out facts from one representative appeal (Civil Second Appeal No. 215/83, R.S.R.T.C v. Kaluram). In that case the plaintiff (a bus conductor) faced departmental enquiry after a bus-check found 41 passengers travelling without tickets. Before a final order of dismissal was issued, the employee filed Civil Suit No. 33/78 in a civil court seeking restraint on dismissal. No stay was granted and the dismissal order was subsequently passed; the suit was amended to seek a declaration that the dismissal was a nullity for alleged violation of principles of natural justice (including non-supply of documents used in the departmental enquiry). The Corporation contested the suit and challenged the civil court's jurisdiction, contending the appropriate remedy lay under industrial law. The trial court framed the specific issue “Whether the Civil Court has jurisdiction to try suit?” and decreed the suit in favour of the employee. The Corporation's appeal to the District Judge was dismissed and the Corporation filed the present second appeal raising the jurisdiction question.

Because the same legal question arose in 28 other appeals, the learned Single Judge formulated the reference question to be answered for all the matters.

Legal Issues Presented

  1. Whether the Civil Courts have jurisdiction to try suits by Corporation employees challenging the pendency or decision of departmental enquiries and seeking relief based on rights or liabilities under the general or common law.

Arguments of the Parties

Corporation's Arguments

  • Civil courts have no jurisdiction, express or implied, where the relief claimed can be granted under the Industrial Disputes Act (the "Act"); the Act is a special statute dealing with industrial disputes and provides special forums (Industrial Tribunals and Labour Courts) for adjudication by way of references under Section 10.
  • The relief claimed by the plaintiff is not a remedy under the general law but falls within the domain of the Act; therefore the civil courts are barred from entertaining such suits.
  • No declaration to enforce a contract of personal service can ordinarily be granted except in limited situations (e.g., where a public servant is dismissed in contravention of Article 311(2) of the Constitution, or reinstatement is sought under industrial law, or where a statutory body breaches a mandatory statutory obligation).
  • Relied principally on The Premier Automobiles Limited v. Kamlakar Shantaram Wadke (Premier Automobile's case) and, in particular, stressed the third principle stated in that case: where an industrial dispute relates to enforcement of a right or obligation created under the Act, the remedy is exclusively by adjudication under the Act.

Workmen's (Plaintiffs') Arguments

  • Also relied on the Premier Automobile's case but argued that the instant matters fall within the second principle articulated in that decision: where an industrial dispute arises out of a right or liability under the general or common law (and not under the Act), jurisdiction of the civil court is an alternative remedy and the workman may elect to sue in civil court.
  • Asserted that the alleged breach of principles of natural justice (e.g., denial of proper hearing, non-supply of documents) flows from natural law or common law, which are inherent unless expressly excluded, and therefore civil courts have jurisdiction.
  • Claimed a breach of clause 35 of the Standing Orders (statutory/contractual discipline) and so there is also a statutory-law violation that civil courts can address.
  • Argued that the Industrial Disputes Act does not provide a remedy to an unsponsored (un‑espoused) workman who has not obtained a reference; such a workman cannot approach the Industrial Tribunal or Labour Court in his individual right if the State refuses to make a reference. The only available remedy then is to file a writ petition seeking a direction to the State for making a reference under Section 10. On this basis, where rights also flow from common law or natural law, a workman may invoke the jurisdiction of the civil court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
The Premier Automobiles Limited v. Kamlakar Shantaram Wadke — (1976) 1 SCC 496; AIR 1975 SC 2238 Set out four principles governing jurisdiction of civil courts vis-à-vis industrial disputes (summarised in the opinion): (1) Non-industrial disputes — civil court; (2) Industrial dispute arising from common law rights — alternative jurisdiction; (3) Disputes enforcing rights created under the Act — exclusive Act jurisdiction; (4) Rights created under the Act (e.g., Chapter VA) — remedies under the Act. The court extensively analyzed this decision and treated Principle 2 as central to the present controversy; concluded that the present suits fall within Principle 2 and thus civil courts have jurisdiction.
Sudhir Chandra Sarkar v. Tata Iron and Steel Co. Ltd — (1984) 3 SCC 369; AIR 1984 SC 1064 Cited by the parties; the opinion does not elaborate the specific principle taken from this case. Perused by the court along with other cited cases, but the court primarily focused its analysis on Premier Automobile's case.
State of Tamil Nadu v. Ramalinga Samigal Madam — (1985) 4 SCC 10; AIR 1986 SC 794 Cited by the parties; the opinion does not state the exact rule or principle relied upon from this case. Considered by the court in the list of authorities, but the court's decision rests on interpretation of Premier Automobile's case and statutory provisions.
K.S.R.T.C. v. Raon T.I. — 1983 (2) SLR 663 Cited by the parties; the opinion does not detail the rule extracted from this report. Listed among the authorities the parties referred to; not separately analyzed in detail in the opinion.
State v. Khan Farouk — 1974 WLN (UC) 232 Cited by the parties; the opinion does not describe the specific principle taken from this authority. Not specifically analyzed in the reasoning; mentioned among other cases relied upon by the parties.
Unspecified case reported at AIR 1970 SC 1204 (referenced as authority) Used in the opinion to support the proposition that an individual dispute may later be espoused by a trade union or substantial number of workmen and thus become an industrial dispute. Relied on in the Court's exposition of how individual disputes can become industrial disputes by subsequent espousal and in explaining the operation of Section 2A after its introduction.

Court's Reasoning and Analysis

The court's analysis focused principally on interpreting the second principle in Premier Automobile's case because the other three principles (1, 3 and 4) were not in dispute for present purposes.

Step-by-step reasoning as set out in the opinion:

  1. The court reproduced the four principles from Premier Automobile's case and identified Principle 2 — that where an industrial dispute arises out of a right or liability under the general or common law (and not under the Act), the civil court's jurisdiction is alternative — as the provision requiring interpretation.
  2. The court examined the effect of Section 2A of the Industrial Disputes Act (introduced by amendment) which deems certain individual terminations (dismissal, discharge, retrenchment or otherwise) to be industrial disputes even though they are individual in nature. Prior to Section 2A, an individual dispute had to be espoused by a trade union or substantial number of workmen to qualify as an industrial dispute.
  3. The court explained that Premier Automobile's principle 2 contemplates rare or exceptional cases where an industrial dispute (as defined by the Act) nonetheless arises from rights under common law and not under the Act; an example illustrated by the Supreme Court itself is the dismissal of an unsponsored (un‑espoused) workman that is deemed to be an industrial dispute by Section 2A yet may otherwise be an individual common-law grievance.
  4. Given that Section 2A makes certain dismissals industrial disputes for statutory purposes, the court reasoned that where the cause of action is rooted in natural/common law (for example, where dismissal violates principles of natural justice or contravenes standing orders) the workman may, as an alternative remedy, invoke the civil court under Principle 2.
  5. The court emphasized that Principle 2 applies only in limited or rare situations; by and large most industrial disputes will fall under Principle 3 (exclusive jurisdiction under the Act). Nonetheless, Principle 2 remains applicable to those exceptional cases (such as unsponsored workmen claiming breaches of natural justice) and in such cases civil courts retain jurisdiction as an alternative to raising an industrial dispute under the Act.
  6. Applying that interpretation to the facts and the class of cases before it (employees challenging dismissals and alleging violations of natural justice and Standing Orders, in a State where no statutory right exists for an individual un‑sponsored workman to directly approach labour fora), the court concluded that the present suits fall within the ambit of Principle 2 laid down in Premier Automobile's case.

Holding and Implications

Holding:

Civil Courts have jurisdiction to try the suits in question. The court held that the suits fall within the ambit of Principle 2 in The Premier Automobiles Limited v. Kamlakar Shantaram Wadke and therefore the civil courts may entertain these actions as an alternative remedy.

Implications:

  • Direct effect on the parties: Employees (in the category described) may bring their challenges in civil courts where the dispute arises from rights or liabilities under the general or common law (for example, alleged breaches of natural justice or Standing Orders), even though Section 2A may deem certain terminations to be industrial disputes for statutory purposes.
  • Limitation: The court stressed that Principle 2 is meant to apply only in relatively rare or exceptional cases; ordinarily industrial disputes will fall under Principle 3 and be exclusively within the domain of adjudication under the Industrial Disputes Act.
  • Policy/administrative observation: The court noted that such situations primarily arise in States (including Rajasthan) where no legislation confers a right on an individual un‑sponsored workman to approach a Labour Court or Industrial Tribunal directly. The court observed that civil proceedings are neither cheap nor an ideal remedy, and recommended that the State Government consider enacting legislation (as several other States have done) to permit an individual workman to approach labour fora directly.
  • No assertion that a novel general precedent was created beyond interpreting and applying Principle 2 of the Premier Automobile's case; the court's holding is an application of that principle to the facts and class of cases before it.

This summary is based exclusively on the content of the provided opinion and contains no information beyond that text.

    R.S.R.T.C & Anr. v. Kaluram Etc. Etc.(149)

    Dave, J.:— Learned Single Judge has referred a question of law which arose in this set of 29 Civil Second Appeals before him. The question referred to is as under:

    “Whether the Civil Courts have jurisdiction to try sucn suits”?

    2. The words “such suits” used by the learned single Judge in the question refers to suits which are filed by the employees of Rajasthan State Road Transport Corporation (hereinafter referred to as “the Corporation”), challenging either the pendency or the decision of departmental enquiries, instituted against them for their committing misconduct in the course of their employment and claiming their rights or liabilities under the general or common law. For better appreciation it would be relevant to mention the facts giving rise to one of the appeals, in Civil Second Appeal No. 215/83, R.S.R.T.C v. Kaluram, the plaintiff-respondent was deployed as a Conductor on Bus No. RSG 2986. His bus was checked on January 31, 1978 and the checking staff found that 41 passengers were travelling without tickets. F???r this a departmental enquiry was instituted against him and proceedings started. Before the final order of dismissal was issued the plaintiff respondent filed Civil Suit No. 33/78 before Additional Munsif No. 2, Jaipur City, Jaipur praying that the Corporation may be restrained from dismissing him. Since there was no stay of proceedings the dismissal order came to be passed and the plaintiff-respondent amended the suit praying that order of dismissal be declared as a nullity being violative of principles of natural justice. It was pleaded in the suit that proper opportunity to defend the plaintiff was not given inasmuch as even the copies of the documents on which Corporation placed reliance in departmental enquiry, were also not supplied. The Corporation contested the suit and challenged the jurisdiction of the civil courts to entertain suit as the plaintiff was a workman and the remedy was by way of raising an industrial dispute before the Industrial Tribunal or the Labour Court. The trial court framed amongst other the following issue:

    “Whether the Civil Court has jurisdiction to try suit”?

    3. The plaintiff's suit was decreed by trial court against which the Corporation filed an appeal before the District Judge, Jaipur City, Jaipur which was in due course transferred to Addl. District Judge No. 6, Jaipur City Jaipur. The appeal was dismissed; hence the Corporation filed the second appeal in which question of jurisdiction was raised.

    4. Since similar question had arisen in 28 more appeals the learned single Judge framed the question and referred the same. This order will answer the question in all these appeals.

    5. It is submitted on behalf of the Corporation that civil court has no jurisdiction, express or implied, to take cognizance of the suit where the relief claimed is one which can be granted under the Industrial Dispute Act (hereinafter referred to as “the Act”). It is submitted that the Act is a special Act which takes care of all disputes which are industrial disputes as defined under the Act. For adjudication of such disputes, it is submitted, the Legislature has made the special forums of Industrial Tribunals and Labour Courts where the references are made under S 10 of the Act. It is submitted that the relief claimed by the plaintiff is not under the general law, hence civil court has no jurisdiction to try them. It is submitted that no declaration to enforce a contract of personal service can be granted unless a public servant has been dismissed from service in contravention of Art. 311(2) of the Constitution of India or it is a matter of reinstatement of a dismissed worker under Industrial Law or a statutory body acts in breach of a mandatory obligation, imposed by statute and for the cases of category. Industrial or Labour Tribunal alone has the jurisdiction Reliance has been placed on (1) The The Premier Automobiles Limited v. Kamlakar Shantaram Wadke* : (1976) 1 SCC 496 : AIR 1975 SC 2238 wherein their Lordships laid down four principles governing the jurisdiction of civil courts in relation to industrial disputes and Corporation relied on third principle wherein it has been held that if the industrial dispute relates to on enforcement of a right or obligation created under the Act then remedy available to the suitor is to get an adjudication under the Act.

    6. Learned counsel appearing for the workmen, also relied upon the decision of their Lordships in The Premier Automobile's case and submitted that out of four principles laid down by their Lordships it is not the category third which would govern the case but it is category second wherein their Lordships have held that if the dispute is an industrial dispute arising out of a right or liability under the general or common law and not under the Act, the jurisdiction of the civil court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in a particular remedy. It is submitted that in the instant case there is breach of principles of natural justice which flows from natural law or common law. It is submitted that the principles of natural justice are inherent in our system except in cases where there is express exclusion. It is further submitted that there is also clear violation of clause 35 of the Standing Order and, therefore, also there is breach of statutory law and the civil court has jurisdiction to entertain the suit. It is further submitted that the Industrial Disputes Act does not provide for a remedy to an un-sponsored workman and he is not permitted to approach the Industrial Tribunal or the Labour Court in his individual right if the Slate Government refuses to make a reference. The only remedy available to the workman then is to file a writ petition seeking a direction against the State for making a reference under S. 10 of the Act. It is, therefore, submitted that in a case where right also flows from natural law or common law the workman has been permitted to invoke the jurisdiction of the Civil Court as well.

    7. Learned counsel for both the parties have mainly based their arguments on the decision of their Lordship of the Supreme Court in The Premier Automobile's case. Besides this case reference was also made to (2) Sudhir Chandra Sarkar v. Tata Iron and Steel Co. Ltd, (1984) 3 SCC 369 : AIR 1984 SC 1064 (3) State Of Tamil Nadu v. Ramalinga Samigal Madam., (1985) 4 SCC 10 : AIR 1986 SC 794 (4) K.S.R.T.C v. Raon TI. : 1983 (2) SLR 663 and (5) State v. Khan Farouk : 1974 WLN (UC) 232.

    8. We have perused all the cases cited before us but in our opinion since learned counsel for both the parties have placed reliance on The Premier Automobile's case and also because the said judgment has been differently interpreted by different High Courts, we think it proper to discuss at length the said case because The Premier Automobile's case has dealt with the question of jurisdiction for trial of a case by the civil court or the Industrial Tribunal or Labour Tribunal. Their Lordships after discussing the various provisions of law and the cases summarized the law as under:

    “To sum up, the principles applicable to the jurisdiction of the Civil Court in relation to an industrial dispute may be stated thus:

    (1) If the dispute is not an industrial dispute, nor does it relate to enforcement of any other right under the Act the remedy lies only in the Civil Court.

    (2) If the dispute is an industrial dispute arising out of a light or liability under the general or common law and not under the Act, the jurisdiction of the Civil Court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in a particular remedy.

    (3) If the industrial dispute relates to the enforcement of a right or an obligation created under the Act, then the only remedy available to the suitor is to get an adjudication under the Act.

    (4) If the right which is sought to be enforced is a right created under the Act such as Chapter VA then the remedy for its enforcement is either Section 33C or the raising of an industrial dispute, as the case may be”.

    “We may however, in relation to principle 2 stated above hasten to add that there will hardly be a dispute which will be an industrial dispute within the meaning of S. 2(k) of the Act and yet will be one arising out of a right or liability under the general or common law only and not under the Act. Such a contingency for example, may arise in regard to the dismissal of an unsponsored workman which in view of the provision of law contained in S. 2A of the Act will be an industrial dispute even though it may otherwise be an individual dispute Civil Courts, therefore will have type of cases falling under principle 2. Cases of industrial, disputes by and large, almost invariably, are bound to be covered by principle 3 stated above”.

    (emphasis supplied)

    9. The entire controversy has arisen while giving proper meaning to principle 2 among the aforesaid principles as there is no difficulty in applying principles 1, 3 and 4. Principle 1 would apply to that case where the dispute is neither an industrial dispute nor is raised for enforcement of any right flowing from the Industrial Dispute Act, then it is only the Civil Court which has the jurisdiction to entertain the case While principle 3 relates to the disputes which are raised for enforcement of rights or obligations created under the Industrial Disputes Act, Jn those matters the exclusive jurisdiction vests in Industrial Tribunal or Labour Court. Principle 4 also concerns the jurisdiction of the Industrial Tribunal and as mentioned aforesaid it is only principle 2 which requires to be interpreted

    10. Before the Industrial Disputes Act was amended and S. 2A was introduced it was essential that disputes ought to have been espoused by a Trade Union or by substantial number of workmen and the concerned workman should have been member of such an Union at the time when the cause of such dispute arose or that the dispute, though may initially be an individual dispute the workman could espouse it on the ground that there is community of interest and the others are directly or substantially interested in the employment, non-employment or conditions of service of the concerned workman.

    11. There is no difficulty in applying so far as principles 1, 3 and 4 are concerned. The 1st principle would apply to all those cases where the dispute is neither an industrial dispute nor are filed for enforcement of any right under the Industrial Dispute Act, then it is only the Civil Court which has the jurisdiction. In 3rd principle where the dispute relates exclusively for the enforcement of rights or obligations created under the Industrial Dispute Act then Civil Courts jurisdiction is barred and exclusive jurisdiction vests in getting adjudication under the Industrial Dispute Act. 4th principle is also concerning jurisdiction of the Industrial Tribunal, since that is for the enforcement of the rights created under the Act. This premises presupposes that though on the date when the cause of dispute arises that dispute is an individual dispute, such a dispute can become an industrial dispute if it is espoused by the workman or a substantial section of them after the cause of the dispute such as dismissal has taken place. It may be that on the date of such dismissal there is no union or that the workman are not sufficiently organised to take up the cause of the concerned workman and no espousal for that or any other reason takes place at the time when such cause occurs. But that cannot mean that because there was no such union in existence on that date the dispute cannot become an industrial one if it is taken up later en by the union or by substantial section of the workmen. (Reference may be made to (6) AIR 1970 SC 1204). With the introduction of S. 2A the dismissal, discharge, retrenchment or otherwise termination are deemed to be the industrial disputes though they are of individuals.

    12. It is after the introduction of S. 2A that their Lordships laid down the aforesaid four principles and principle 2 was laid down. Their Lordships held that there is an option to the workman for invoking the jurisdiction of Civil Court or to raise a dispute under the Act. The rider placed was that for invoking the jurisdiction of Civil Court it essential that dispute must be one which may by the afor said deeming section be an industrial dispute yet the cause of action for giving raise to such dispute may be arising out of a right or liability under the general or common law This is apparent from the words “arising out of a right or liability under the general or common law and not under the Act the jurisdiction of Civil Court is alternative”. Their Lordships have illustrated this position of law and the preposition has been well settled nevertheless it has posed problem in its practical application and different courts have given it different interpretations and there has become a conflict of judicial precedent on this point. It may be mentioned here that their Lordships visualized, there may be some cases which may not hold two distinct and separate fields and where the rights or liabilities might be giving rise to the industrial dispute though source may be under the general law or the common law. In those cases their Lordships have stated that there may be two alternative remedies. The word hardly used by their Lordships in para 24 does not mean none but it means rarely or very seldon They were contemplating rare cases and have illustrated one as the case of unsponsored workman whose dispute could also be considered as an industrial dispute by virtue of the deeming clause of S. 2A of the Act. The words “there will hardly be a dispute which will be an industrial dispute within the meaning of S. 2(k) of the Act and yet will be arising out of a right or liability under the general or common law only and not under the Act”, would clearly mean that very seldom there may be a dispute as they have illustrated by words “may arise in regard to the dismissal of an un-sponsored workman which, in view of the provisions of law contained in S. 2A of the Act, will be an industrial dispute even though it may otherwise be an individual dispute”. These words again in our opinion mean that sometime there may be a case of an employee who is dismissed from service and his case is not espoused by an Union and he is, therefore, an un-sponsored workman, yet his case becomes an industrial dispute by virtue of S. 2A of the Act, then he can opt for going to Civil Court or ask for a reference under S 10 of the Act. In case the termination is in violation of principles of natural justice or is in violation of some statutory provisions, such as in the cases in hand where the employees are un-sponsored workmen who challenged termination being violative of Standing Orders and also because of violation of principles of natural justice. The employees have made a grievance that they have not been given proper right of hearing and the termination is against the principles of Audi Alteram Partem which rights are inherent. In such case, therefore, workman can also raise the dispute because of S. 2A of the Act. This is again clear because their Lordships have further used the words, “Civil Courts, therefore, will have hardly occasion to deal with the types of cases falling under principle 2”. This is obvious from the fact that unless there are cases falling within the ambit of principle 2, it was unnecessary to lay down that principle. The further words, “cases of industrial disputes by and large, almost invariably, are bound to be covered by principle 3” indicate that principle 2 covers only rare or exceptional cases, one of which is indicated by the illustration given. Therefore, the cases in which the suit or claims a right or liability under the general or common law falling within the ambit of principle 2 he has an option of invoking the jurisdiction of the Industrial Tribunal/Labour Court under the Act or the Civil Court. As a result of the aforesaid discussions we are of the opinion that in Premier Automobile's case while laying down principle 2 their Lordships have expressly indicated situation where a workman may resort to the remedy in Court Civil also in case the dispute only be invoking the provisions of S. 2A of the Act. We will thus, answer the question as under:

    That the Civil Court has jurisdiction to try the suit since it falls within the ambit of principle 2 laid down in Premier Automobile's case for the reasons given”.

    13. Before parting with the case we would like to observe that such situations only arise in the States where no Legislation has been enacted affording a right to an individual un-sponsored workman to approach a Labour Court or Tribunal as of right. A remedy in a Civil Court is by no means, a cheap and efficacious remedy but the workman is compelled to resort to it since the remedy of approaching the Labour Court etc. depends on a reference and is not available as of right. It would be desirable for the State of Rajasthan to enact a legislation in line with the legislation in several States which confer on an individual workman a right to approach the Labour Court/Industrial Tribunal etc. directly. This progressive social legislation has been wanting too long in this State. We expect the learned Advocate General to invite the attention of the State Government to this aspect.

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    R.S.R.T.C & Anr. v. Kaluram Etc. Etc.(149)
    (Apr 3, 1987)