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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 33 of the Industrial Disputes Act, 1947
  • Section 23(b) of the Act
  • Act 48 of 1950
  • Section 33 of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 23(b) of the Industrial Disputes Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 33 of the Industrial Disputes Act, 1947
  • Section 23(b) of the Act
  • Act 48 of 1950
  • Section 33 of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 23(b) of the Industrial Disputes Act
Smart Summary

Factual and Procedural Background

The Punjab National Bank Ltd. (“the Bank”) and its workmen were already before an Industrial Tribunal headed by Shri K.S. Campbell-Puri on several disputes when, on April 18, 1951, over a thousand employees, including the present respondents, commenced a strike that the Bank described as illegal. After two successive notices (April 24 and April 27, 1951) warning the strikers that their services would be terminated, the Bank dismissed them.

Following Government of India intervention, the Bank agreed to reinstate all but 150 employees whose conduct it deemed objectionable. A new Industrial Tribunal constituted on July 2, 1951, was asked to decide the status of these 150 employees. On February 9, 1952, that Tribunal held the strike illegal and refused reinstatement, though it awarded the workmen half-pay compensation up to the date of publication.

The workmen appealed to the Labour Appellate Tribunal at Calcutta. While concurring that the strike was illegal, the Appellate Tribunal held that the Bank had condoned it, found the dismissals wrongful for want of charges and opportunity to explain, and ordered further evidence before deciding on reinstatement (order dated September 22, 1952).

The Bank obtained special leave and appealed to the Supreme Court against the Appellate Tribunal’s order.

Legal Issues Presented

  1. Whether the Bank’s alleged condonation of the illegal strike precluded it from relying on the strike to justify dismissal of the respondents.
  2. Whether, irrespective of condonation, the Labour Appellate Tribunal had jurisdiction to direct reinstatement, given the Bank’s contention that dismissal for participation in an illegal strike is lawful.

Arguments of the Parties

Bank’s Arguments

  • The Bank disputed the finding of condonation, asserting it remained entitled to rely on the illegality of the strike as grounds for dismissal.
  • It contended that any order of reinstatement would amount to compelling fresh employment, which lay beyond the jurisdiction of the Labour Appellate Tribunal.
  • Accordingly, the Supreme Court was asked to set aside the Appellate Tribunal’s order and the directed further enquiry.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court found it unnecessary to rule on the disputed issue of condonation. Assuming, arguendo, that the strike remained illegal, the Court held that Section 33 of the Industrial Disputes Act, 1947, furnished a “short answer” to the Bank’s jurisdictional objection. Section 33 prohibits an employer from dismissing, during the pendency of proceedings before a Tribunal, any workman concerned in the dispute without prior written permission of that Tribunal. Because the Bank admittedly obtained no such permission from the Campbell-Puri Tribunal, its dismissal of the respondents was itself illegal.

The Court rejected the Attorney-General’s submission that Section 33 was inapplicable because strikes are covered in Chapter V of the Act and the respondents were not parties to the earlier disputes. The wording of Section 33, placed in Chapter VII (“Miscellaneous”), was broad enough to extend to all dismissals during pending proceedings, and the respondents were “concerned” in those disputes since any resulting award would bind them.

Consequently, the Bank’s claim that the Appellate Tribunal lacked power to order reinstatement collapsed; once the dismissals were unlawful, reinstatement lay within the Tribunal’s competence.

Holding and Implications

Appeal dismissed with costs.

The Supreme Court affirmed the Labour Appellate Tribunal’s order, clearing the way for that Tribunal to proceed with the additional evidence and consider reinstatement. The judgment underscores that employers must obtain Tribunal permission under Section 33 before dismissing workers involved in disputes under adjudication, irrespective of the alleged misconduct giving rise to dismissal. No new precedent was created, but the decision reinforces the mandatory nature and broad reach of Section 33.

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    Punjab National Bank Ltd. v. Employees Of The Bank

    Patanjali Sastri, C.J— This is an appeal by special leave from a decision dated September 22, 1952, of the Labour Appellate Tribunal of India at Calcutta setting aside an award dated February 9, 1952, made by the Industrial Tribunal constituted to adjudicate on certain disputes between the appellant, the Punjab National Bank Ltd., Delhi (hereinafter referred to as “the Bank”) and its workmen, the respondents represented by their Union.

    2. The facts leading to this appeal may be briefly stated. Several other disputes between the parties had already been referred on February 21, 1950, to another Industrial Tribunal presided over by Shri K.S Campbell-Puri, and during the pendency of the proceedings before the said Tribunal, the Bank alleged that the respondents along with other workmen numbering more than a thousand illegally commenced a general strike on April 18,1951, in connection with a fresh dispute. Thereupon, notice was issued to the strikers that unless they returned to work by April 24, 1951, they would be deemed to have left service of their own accord. That notice having been ignored by the strikers a second notice was issued to them on April 27, 1951, terminating their service. The Government of India thereupon intervened, and as a result of the discussions held between the Government officials and the Bank, the latter agreed to take back all the employees except 150 against whom the Bank had objections on account of their alleged subversive activities and other objectionable and unlawful conduct before and during the strike. On July 2, 1951, the Government of India constituted a Tribunal to decide the questions regarding the dismissals etc. of the aforesaid 150 employees, and that Tribunal, after calling for the statements of case on behalf of the parties and hearing them, made an award on February 9, 1951, refusing reinstatement on the sole ground that the respondents had gone on an illegal strike in contravention of Section 23(b) of the Industrial Disputes Act, and that the Bank was entitled to dismiss them. The Tribunal, however, granted to the respondents compensation by way of salary and allowances at half the rates from the date of dismissal to the date of the publication of the award.

    3. The respondents appealed to the Labour Appellate Tribunal at Calcutta which, while agreeing with the Industrial Tribunal that the strike was illegal, held that it was condoned by the Bank and it was, therefore, not open to it to justify the dismissal of the respondents on the ground that they had participated in the illegal strike. The Appellate Tribunal further held that the dismissal of the respondents was wrongful because no charges were framed against any of them in respect of their alleged acts of violence or subversive activities and their explanation was not called for. The Appellate Tribunal accordingly thought that further evidence was necessary on certain specific points mentioned in its order and reserved its decision as to whether the respondents were entitled to reinstatement till after such evidence was taken.

    4. Learned counsel for the Bank advanced a two-fold contention in support of this appeal. He challenged the correctness of the conclusion that the Bank had, in the circumstances of the case, condoned the illegal strike by the respondents, and maintained that it was open to the Bank to rely upon the illegal strike as justifying the dismissal of the respondents. On that basis learned counsel argued that there could no longer be any question of reinstating the respondents in the service of the Bank as such reinstatement would in law amount to compelling the Bank to employ these respondents afresh in its service, which the Appellate Tribunal had no jurisdiction to do. He accordingly submitted that this Court should set aside the order of the Labour Appellate Tribunal dated September 22, 1952, obviating the further enquiry directed by the said order.

    5. We consider it unnecessary to express any opinion on the question of condonation or waiver of the illegal strike; for, assuming that there was no such condonation or waiver and it was open to the Bank to rely upon the illegal strike as a valid ground for dismissing the respondents, we are of opinion that Section 33 of the Industrial Disputes Act, 1947, furnishes a short answer to the further contention that the Appellate Tribunal had no jurisdiction to order reinstatement of the respondents. That section provides, inter alia, that no employer shall, during the pendency of any proceedings before a Tribunal in respect of any industrial dispute, discharge by way of dismissal or otherwise, any workman concerned in the dispute save with the permission in writing of the said Tribunal. Admittedly, no such permission was obtained. If the pendency of the proceedings before Shri Campbell-Puri made the strike of the respondents illegal under Section 23(b) of the Act, the dismissal of the respondents by the Bank without obtaining his permission as required by Section 33 was also illegal. We see no force in the argument of the Attorney-General that the section has no application to the case as strikes and lock-outs are dealt with in a different chapter, Chapter V, and as the respondents were not concerned in the disputes pending adjudication before Shri Campbell-Puri. The terms of Section 33 are wide enough to cover the present case, and the fact that it finds place in Chapter VII headed “Miscellaneous” is by no means inconsistent with its general application to all cases of discharge on whatever ground it may be based. This is shown by the recent amendment of the section by Act 48 of 1950 which has omitted the words “except for misconduct not connected with the dispute” in the newly substituted section. It is equally clear that the respondents are concerned in the disputes pending before Shri Campbell-Puri, as it is conceded that any award made by him would bind the respondents. Section 33 being thus applicable to the case, the contention of the Bank that the dismissal of the respondents was lawful and that in consequence the Appellate Tribunal had no jurisdiction to direct their reinstatement falls to the ground.

    6. We therefore see no reason to interfere with the order made by the Labour Appellate Tribunal and we accordingly dismiss the appeal with costs.

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    Punjab National Bank Ltd. v. Employees Of The Bank
    (Apr 10, 1953)