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  • Section 33 of the Industrial Disputes Act, 1947
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  • Section 33 of the Industrial Disputes Act, 1947
Smart Summary

Factual and Procedural Background

The appellant-employer sought permission under Section 33 of the Industrial Disputes Act, 1947 to dismiss several workmen (the respondents) for alleged misconduct. The Third Industrial Tribunal, Calcutta granted the requested permission after noting repeated warnings to the workmen for poor work, misbehaviour, acts of violence, and an eleven-day absence without leave that the employees attributed to police arrest.

The respondents appealed. The Labour Appellate Tribunal, Calcutta reversed the Industrial Tribunal, holding that the proposed dismissal was not bona fide and amounted to victimisation. The employer obtained special-leave to appeal against that reversal.

Legal Issues Presented

  1. Whether the appeals before the Labour Appellate Tribunal involved a “substantial question of law” within the meaning of the Industrial Disputes Act, thereby permitting that Tribunal to entertain the workmen’s appeals.
  2. Whether the Industrial Tribunal had, in substance, examined and determined that the employer’s proposed dismissal was free from improper motive, unfair labour practice, or victimisation, as required by law.

Arguments of the Parties

Appellant's Arguments

  • No appeal lay to the Labour Appellate Tribunal because the Industrial Tribunal’s order raised no substantial question of law; it was purely factual.
  • The Industrial Tribunal had already considered the employees’ past misconduct and exercised discretion in favour of the employer, finding no reason to compel condonation of their absence.

Respondents' Arguments

  • Reliance on Atherton West & Co. Ltd. v. Suti Mill Mazdoor Union: the Tribunal must explicitly determine that the employer is acting without improper motive or victimisation.
  • Because the Industrial Tribunal gave no express finding on absence of improper motive, a substantial question of law arose, justifying the Labour Appellate Tribunal’s intervention.
  • The Labour Appellate Tribunal’s ultimate finding of victimisation is factual and therefore should not be disturbed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Atherton West & Co. Ltd. v. Suti Mill Mazdoor Union (1953) SCR 780 A Tribunal, when granting permission under Section 33, must be satisfied that the proposed dismissal is bona fide and not motivated by unfair labour practice or victimisation. The Court held that, although the Industrial Tribunal did not use identical language, it had in substance complied with this principle; hence no substantial question of law arose.

Court's Reasoning and Analysis

The Court first confirmed that an appeal to the Labour Appellate Tribunal is maintainable only on a substantial question of law. It then scrutinised the Industrial Tribunal’s findings, which recorded the employees’ prior misconduct, the employer’s warnings, and a refusal to condone unapproved absence. The Industrial Tribunal expressly stated that:

  • The employer’s discretion to dismiss was exercised after considering the employees’ “trying” conduct.
  • The Tribunal could not “sit in judgment” on that managerial discretion where exercised honestly.

From these passages, the Court inferred that the Industrial Tribunal had indeed applied its mind to whether the dismissal was motivated by victimisation or unfair labour practice, thereby satisfying the test laid down in Atherton West. The Labour Appellate Tribunal’s contrary view was characterised as an error of law: it mis-appreciated the Industrial Tribunal’s factual findings and wrongly assumed a substantial legal question existed.

Holding and Implications

Appeals Allowed; decision of the Labour Appellate Tribunal set aside; orders of the Industrial Tribunal restored.

Immediate Effect: The employer’s permission to dismiss the respondents is reinstated, with no order as to costs.

Broader Implications: The judgment reaffirms that higher appellate intervention under the Industrial Disputes Act is limited to substantial questions of law and that an Industrial Tribunal’s implicit but reasoned findings on bona fides and victimisation suffice to bar further factual re-appraisal.

    Shri Hanuman Jute Mills v. Shri Amin Das & Another

    The Judgment of the Court was delivered by

    Syed Jafer Imam, J.— These appeals by special leave are directed against the decision of the Labour Appellate Tribunal, Calcutta, which reversed the decision of the Third Industrial Tribunal, Calcutta. The appellant had filed applications under Section 33 of the Industrial Disputes Act, 1947 seeking permission of the Tribunal to dismiss the respondents in both the appeals, which permission was granted. Against the orders of the Industrial Tribunal the respondents filed appeals before the Labour Appellate Tribunal.

    2. The Orders of the Industrial Tribunal disclose that the respondents had been warned on several occasions for their bad work and misbehaviour and with respect to some of them for even acts of violence. Thereafter the respondents absented themselves from work without leave on a particular date and for ten subsequent days, which in itself amounted to misconduct involving the penalty, if sought to be imposed, of dismissal under the Standing Orders of the appellant. The respondents explained their absence as involuntary owing to their arrest by the police and applied for leave of absence which was refused.

    3. In appeal the Labour Appellate Tribunal was of the opinion that a substantial question of law arose because it thought that the Industrial Tribunal had not applied its mind to the question whether in proposing to dismiss the respondents the appellant was actuated by improper motive or was resorting to unfair labour practice or victimisation, relying upon the decision of this Court in the case of Atherton West & Co. Ltd. v. Suti Mill Mazdoor Union (1953) SCR 780. The Appellate Tribunal accordingly entered into the merits and it came to the conclusion that, on the materials on the record, the appellant in proposing to dismiss the respondents was not acting bona fide and the case appeared to be one of victimisation.

    4. It was urged on behalf of the appellant that no appeal lay to the Labour Appellate Tribunal as no substantial question of law arose in the appeals filed before it. It was pointed out that the Industrial Tribunal was of the opinion that it could not say that the appellant ought to have condoned the respondents absenting themselves from work if the appellant honestly thought that the respondents had by their past conduct forfeited all claims of leniency and concession and that the appellant could not be blamed if it was not prepared to condone the absence of the respondents.

    5. On behalf of the respondents it was pointed out that, having regard to the decision of this Court in the case of Atherton West & Co. Ltd., it was the duty of the Tribunal to enquire and come to the conclusion whether there was a prima facie case made out for the discharge or dismissal of the workmen and that the employer, his agent or manager was not actuated by any improper motive or did not resort to any unfair labour practice or victimisation in the matter of the proposed discharge or dismissal of the workmen. Since the Industrial Tribunal had given no finding that the appellant was not actuated by any improper motive or did not resort to any unfair labour practice or victimisation in the matter of the proposed discharge or dismissal of the respondents, the Labour Appellate Tribunal was justified in holding that a substantial question of law had arisen in the appeals before it. The finding of the Labour Appellate Tribunal that the appellant's action was not bona fide and it was a case of victimisation was a finding of fact. The decision of the Labour Appellate Tribunal should accordingly be upheld as no question of law arose in the appeals before us.

    6. It is not disputed that an appeal lies to the Labour Appellate Tribunal from the decision of the Industrial Tribunal on a substantial question of law and not on a question of fact. It remains, therefore, to consider whether any substantial question of law arose in the appeals before the Labour Appellate Tribunal. The Industrial Tribunal referred in some detail to the materials on the record before it concerning the past conduct of the respondents. The record substantiates what has been stated by the Industrial Tribunal and the materials referred to by that Tribunal have not been seriously questioned before us. The Industrial Tribunal expressed itself as follows in its order in the case of the respondents Amin Das and Kashi Ram:

    “The Management of course, if they choose, could have condoned the absence, but I cannot say they ought to have condoned the absence and granted leave, if the Management honestly thought that these two workers had by their past conduct forfeited all claims of leniency and concession. By the exercise of this discretion of the Management to the prejudice of the workmen, I cannot say the Management was initially wrong, and in any case it is not certainly for the Tribunal to sit in judgment upon this discretion of the Management. The conduct of these two workmen had been sufficiently trying for the employers and if they, after implication in the criminal case, were detained in hajat, I cannot blame the Management if they were not prepared to condone their absence”.

    7. In the case of the respondent Golok it expressed itself as follows:

    “This workman behaved in such a way that he had been sent up by the police on a charge of rioting and the Management cannot be blamed if they did not see their way to condone the absence, specially when according to Management, the service record of this worker is far from satisfactory. He had been warned twice, and in this view of the matter, I do not think the Management had done any grievous wrong so that it should be rectified by the Tribunal.”

    8. It is quite clear from these findings that the Industrial Tribunal did examine the question whether the discretion of the appellant to dismiss the respondents was being properly exercised, that the respondent was acting bona fide and its desire to dismiss the appellant was not actuated by any improper motive and that the appellant did not resort to any unfair labour practice or victimisation. It is true that the orders of the Industrial Tribunal are not framed in similar language to what has been said in the case of Atherton West & Co. Ltd. but in substance it has complied with the view expressed by this Court. The Industrial Tribunal, at the time it passed its orders, had not before it the decision of this Court in the aforesaid case but it seems to us that its findings indicate that it kept well within the observations of this Court. The Labour Appellate Tribunal, therefore, was in error in thinking that the Industrial Tribunal had not applied its mind to the question whether in proposing to dismiss the respondents the appellant was actuated by improper motive or was resorting to unfair labour practice or victimisation. This error on the part of the Labour Appellate Tribunal led to a further error in supposing that the appeals before it raised a substantial question of law. In our opinion, no such question arose, having regard to the findings of the Industrial Tribunal, and consequently the appeals were wrongly entertained by the Labour Appellate Tribunal.

    9. The appeals are accordingly allowed but without costs and the decision of the Labour Appellate Tribunal is set aside and the orders of the Industrial Tribunal are restored.

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    Shri Hanuman Jute Mills v. Shri Amin Das & Another
    (Oct 16, 1956)