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AMICUS AI
Citation Codes
Neutral Citations
2004 INSC 551
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • The Industrial Disputes Act, 1947 (hereinafter referred to as “the Act”)
  • Section 20 of the Act and Section 17-A of the Act
  • Section 17-A of the Industrial Disputes Act, 1947
  • Order 9 Rule 13 of the Code of Civil Procedure
  • The Code of Civil Procedure
  • Section 11 of the Act and Rules 22 and 24 of the Industrial Disputes (Central) Rules, 1957
  • Section 10 of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2004 INSC 551
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • The Industrial Disputes Act, 1947 (hereinafter referred to as “the Act”)
  • Section 20 of the Act and Section 17-A of the Act
  • Section 17-A of the Industrial Disputes Act, 1947
  • Order 9 Rule 13 of the Code of Civil Procedure
  • The Code of Civil Procedure
  • Section 11 of the Act and Rules 22 and 24 of the Industrial Disputes (Central) Rules, 1957
  • Section 10 of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The respondent, employed as a machineman by the appellant since 1980, alleged that the management stopped assigning him work from 8-11-1991. A complaint before the Labour Inspector led to a settlement under which the respondent received Rs 2,675.70 in full and final settlement. Notwithstanding this, he raised an industrial dispute (Reference No. 87 of 1991) before the Labour Court, Jalandhar, seeking reinstatement with back wages. The Labour Court passed an ex parte award on 5-2-1996 in the respondent’s favour.

After learning of the award, the appellant applied to set it aside. On 11-5-2000 the Labour Court allowed that application and vacated the ex parte award. The respondent challenged this order before the Punjab and Haryana High Court (CWP No. 8231 of 2000), contending that the Labour Court lacked jurisdiction to entertain the application after thirty days from publication of the award. The High Court agreed and restored the ex parte award. The present appeal before the Supreme Court is against that High Court judgment; the Supreme Court has now dismissed the appeal.

Legal Issues Presented

  1. Whether a Labour Court retains jurisdiction to set aside an ex parte award after thirty days have elapsed from the date of its publication in the Official Gazette.
  2. Whether Order IX Rule 13 of the Code of Civil Procedure can extend or modify the time-limit prescribed under Section 17-A of the Industrial Disputes Act, 1947.

Arguments of the Parties

Appellant's Arguments

  • Order IX Rule 13 CPC is applicable to industrial adjudication; therefore, an ex parte award can be set aside on sufficient cause even after thirty days of its publication.
  • The time-limit in Section 17-A should not curtail the Labour Court’s inherent power to rectify its own ex parte orders.
  • Relied on the decision in Anil Sood v. Presiding Officer, Labour Court II, (2001) 10 SCC 534, to suggest that similar relief had been granted beyond the thirty-day period.

The opinion does not detail the respondent’s legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Grindlays Bank Ltd. v. Central Govt. Industrial Tribunal, 1980 Supp SCC 420 An Industrial Tribunal can entertain an application to set aside an ex parte award only if the application is filed within 30 days of the award’s publication; after that, the tribunal becomes functus officio. Treated as the controlling authority: the Supreme Court applied it to hold that the Labour Court lacked jurisdiction once 30 days had expired.
Satnam Verma v. Union of India, 1984 Supp SCC 712 Followed Grindlays Bank on the limited post-award jurisdiction of Industrial Tribunals. Cited to reinforce that the 30-day limit is well-settled.
J.K. Synthetics Ltd. v. Collector of Central Excise, (1996) 6 SCC 92 Also followed Grindlays Bank; reiterates that tribunals become functus officio after enforceability takes effect. Referenced to buttress the same proposition.
Anil Sood v. Presiding Officer, Labour Court II, (2001) 10 SCC 534 Relied on by appellant to argue for a broader power to set aside ex parte awards. The Court distinguished it, noting no indication that the application there was filed after the 30-day period and observing that the decision appeared to rest on concession rather than principle.
Mehboob Dawood Shaikh v. State of Maharashtra, (2004) 2 SCC 362 A factual situation in one case cannot constitute a precedent for another. Cited to explain why Anil Sood could not override the settled rule in Grindlays Bank.

Court's Reasoning and Analysis

The Court noted that industrial adjudication is governed by the Industrial Disputes Act, 1947, and that while procedural provisions of the CPC may apply, they cannot override the statutory framework. Under Section 17-A, an award becomes enforceable thirty days after its publication, at which point the Labour Court becomes functus officio.

Relying on Grindlays Bank and subsequent cases, the Court held that a Labour Court retains jurisdiction to entertain an application to set aside an ex parte award only within the thirty-day window. Since the High Court had recorded that the appellant’s application was filed after one month from publication, the Labour Court lacked jurisdiction to entertain it. The appellant’s reliance on Anil Sood was rejected because that decision neither discussed the date of publication nor articulated any principle contrary to Grindlays Bank.

Consequently, the High Court’s order quashing the Labour Court’s decision was affirmed.

Holding and Implications

APPEAL DISMISSED.

The Supreme Court affirmed that once thirty days have elapsed from publication of an award, a Labour Court loses jurisdiction to set it aside. The immediate consequence is that the respondent’s ex parte award stands restored, and the appellant cannot reopen the matter before the Labour Court. The decision applies established precedent and does not create a new legal principle.

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    Sangham Tape Co. v. Hans Raj .

    S.B Sinha, J.— This appeal is directed against a judgment and order dated 30-4-2001 passed by a Division Bench of the Punjab and Haryana High Court in Civil Writ Petition No. 8231 of 2000 whereby and whereunder the writ petition filed by the respondent herein questioning the order of the Labour Court dated 11-5-2000 setting aside an ex parte award in favour of the respondent herein, was allowed.

    2. The respondent was appointed as a machineman by the appellant in 1980. The appellant contended that the respondent had been absenting himself from duties off and on but he had been allowed to join his duties in different periods. On or about 9-11-1991, a complaint petition was filed by him through the trade union before the Labour Inspector, Circle III, Jalandhar on an allegation that the management had not provided him and other similarly situated persons duties since 8-11-1991. The said complaint was registered as Ref. No. 87 of 1991 wherein a settlement was arrived at, pursuant whereto or in furtherance whereof the respondent is said to have received a sum of Rs 2675.70 in full and final settlement of his dues. Despite the said settlement, on or about 17-11-1992, he allegedly filed a reference petition before the Labour Court, Jalandhar which was marked as Reference No. 87 of 1991, claiming his reinstatement with full back wages, continuity of service and all consequential service benefits.

    3. An ex parte award was passed by the said Labour Court on 5-2-1996.

    4. The appellant purportedly, upon coming to know of the pronouncement of the said ex parte award, moved an application for setting aside the same. By reason of an order dated 11-5-2000, the ex parte award was set aside. Contending that the Labour Court had no jurisdiction to set aside the ex parte award after a lapse of 30 days from the date of publication of the award, the respondent herein filed a writ petition before the Punjab and Haryana High Court which was marked as Civil Writ Petition No. 8231 of 2000. By reason of the impugned judgment, the High Court set aside the order of the Labour Court. Being aggrieved by and dissatisfied therewith, the appellant is in appeal before us.

    5. Mr Neeraj Kumar Jain, learned counsel appearing on behalf of the appellant, would submit that having regard to the fact that the provisions of Order 9 Rule 13 of the Code of Civil Procedure are applicable to an industrial adjudication, the Labour Court must be held to have ample jurisdiction to set aside an ex parte award, if sufficient cause therefor is shown. The learned counsel would further submit that such exercise of jurisdiction by the Labour Court cannot be limited to a period of 30 days from the date of publication of the award. Reliance, in this connection, has been placed on Anil Sood v. Presiding Officer, Labour Court II (2001) 10 SCC 534, (2001) 2 Scale 193.

    6. An industrial adjudication is governed by the provisions of the Industrial Disputes Act, 1947 (hereinafter referred to as “the Act”) and the Rules framed thereunder. The Rules framed under the Act may provide for applicability of the provisions of the Code of Civil Procedure. Once the provisions of the Code of Civil Procedure are made applicable to the industrial adjudication, indisputably the provisions of Order 9 Rule 13 thereof would be attracted. But unlike an ordinary civil court, the Industrial Tribunals and the Labour Courts have limited jurisdiction in that behalf. An award made by an Industrial Court becomes enforceable under Section 17-A of the Act on the expiry of 30 days from the date of its publication. Once the award becomes enforceable, the Industrial Tribunal and/or Labour Court becomes functus officio.

    7. This Court in Grindlays Bank Ltd. v. Central Govt. Industrial Tribunal 1980 Supp SCC 420 held that the Tribunal does not become functus officio provided an application for setting aside the award is filed within thirty days of publication of award having regard to the provisions contained in Section 11 of the Act and Rules 22 and 24 of the Industrial Disputes (Central) Rules, 1957 stating:

    “14. The contention that the Tribunal had become functus officio and, therefore, had no jurisdiction to set aside the ex parte award and that the Central Government alone could set it aside, does not commend to us. Sub-section (3) of Section 20 of the Act provides that the proceedings before the Tribunal would be deemed to continue till the date on which the award becomes enforceable under Section 17-A. Under Section 17-A of the Act, an award becomes enforceable on the expiry of 30 days from the date of its publication under Section 17. The proceedings with regard to a reference under Section 10 of the Act are, therefore, not deemed to be concluded until the expiry of 30 days from the publication of the award. Till then the Tribunal retains jurisdiction over the dispute referred to it for adjudication and up to that date it has the power to entertain an application in connection with such dispute. That stage is not reached till the award becomes enforceable under Section 17-A. In the instant case, the Tribunal made the ex parte award on 9-12-1976. That award was published by the Central Government in the Gazette of India dated 25-12-1976. The application for setting aside the ex parte award was filed by Respondent 3, acting on behalf of Respondents 5 to 17 on 19-1-1977 i.e before the expiry of 30 days of its publication and was, therefore, rightly entertained by the Tribunal.”
    (emphasis supplied)

    8. The said decision is, therefore, an authority for the proposition that while an Industrial Court will have jurisdiction to set aside an ex parte award, but having regard to the provision contained in Section 17-A of the Act, an application therefor must be filed before the expiry of 30 days from the publication thereof. Till then the Tribunal retains jurisdiction over the dispute referred to it for adjudication, and only up to that date, it has the power to entertain an application in connection with such dispute.

    9. It is not in dispute that in the instant case, the High Court found as of fact that the application for setting aside the award was filed before the Labour Court after one month of the publication of the award.

    10. In view of this Court's decision in Grindlays Bank 1980 Supp SCC 420 such jurisdiction could be exercised by the Labour Court within a limited time frame, namely, within thirty days from the date of publication of the award. Once an award becomes enforceable in terms of Section 17-A of the Act, the Labour Court or the Tribunal, as the case may be, does not retain any jurisdiction in relation to setting aside of an award passed by it. In other words, upon the expiry of 30 days from the date of publication of the award in the gazette, the same having become enforceable, the Labour Court would become functus officio.

    11. Grindlays Bank 1980 Supp SCC 420 has been followed in Satnam Verma v. Union of India 1984 Supp SCC 712 and J.K Synthetics Ltd. v. CCE (1996) 6 SCC 92.

    12. This Court in Anil Sood (2001) 10 SCC 534, (2001) 2 Scale 193 did not lay down any law to the contrary. The contention raised on the part of Mr Jain to the effect that in fact in that case an application for setting aside an award was made long after 30 days cannot be accepted for more than one reason. Firstly, a fact situation obtaining in one case cannot be said to be a precedent for another. (See Mehboob Dawood Shaikh v. State of Maharashtra (2004) 2 SCC 362.) Secondly, from a perusal of the said decision, it does not appear that any date of publication of the award was mentioned therein so as to establish that even on fact, the application was made 30 days after the expiry of publication of the award. Furthermore, the said decision appears to have been rendered on concession.

    13. For the foregoing reasons, there is no merit in this appeal which is accordingly dismissed. No costs.

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    Comments

    Sangham Tape Co. v. Hans Raj .
    (Sep 27, 2004)