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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 227 of the Constitution, Section 107 of the Government of India Act, 1915
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not found in the text)
  • Section 115 of the Code of Civil Procedure
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 227 of the Constitution, Section 107 of the Government of India Act, 1915
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not found in the text)
  • Section 115 of the Code of Civil Procedure
Smart Summary

Factual and Procedural Background

Industrial disputes between Rajkamal Kalamandir (P) Ltd. (the appellant) and its employees were referred to the Industrial Tribunal, Bombay, on 30 March 1957. The Tribunal first decided issues concerning dearness allowance, leave with wages and provident fund (award dated 4 June 1958). For the remaining question of wages and classification of workmen, the Tribunal utilised four assessors whose report was submitted on 2 February 1959. Relying on that report, the Tribunal delivered its second award on 3 February 1960. It made the increased dearness allowance effective from 1 April 1957 but introduced the revised wage scales only from 1 April 1959.

The employees challenged the second award by filing a special civil application under Article 227 of the Constitution before the Bombay High Court on 13 June 1960, contending that the wage revision should also have been made effective from 1 April 1957. The High Court accepted their contention and modified the award accordingly. The appellant, armed with a certificate from the High Court, appealed to the Supreme Court, asserting that the High Court’s interference exceeded its jurisdiction under Article 227.

Legal Issues Presented

  1. Whether the Bombay High Court, while exercising supervisory jurisdiction under Article 227 of the Constitution, acted beyond its powers by altering the Tribunal’s discretionary decision on the retrospective date of the revised wage scales.

Arguments of the Parties

Appellant's Arguments

  • The High Court cannot sit in appeal over a Tribunal’s discretionary order while exercising powers under Article 227; its intervention was therefore without jurisdiction.
  • Determining the date from which a revised wage structure operates involves discretionary considerations, including the practical need to fit employees into appropriate categories; the Tribunal had addressed these factors.
  • The High Court in effect substituted its own discretion for that of the Tribunal, an impermissible act under the settled law on Article 227.

Respondents' Arguments

  • The Tribunal had committed an “obvious error” by not granting the revised wage scales from 1 April 1957, the same date fixed for dearness allowance and the date of reference of the dispute.
  • Because the appellant had allegedly caused delay by adopting an obstructive attitude, fairness demanded that the award be made operative from the earlier date.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Waryam Singh v. Amarnath (1954 SCR 565) Article 227 power of superintendence is to be exercised sparingly to keep tribunals within bounds, not to correct mere errors. Cited as the foundational authority limiting High Court interference; Supreme Court followed this principle to test the impugned High Court order.
Dalmia Jain Airways Ltd. v. Sukumar Mukherjee (AIR 1951 Cal 193) Observation by Harries C.J. that supervisory power is not an appellate power. Referred to reinforce the narrow scope of Article 227 jurisdiction.
Satyanarayan Laxminarayan Hegde v. Mallikarjun Bhavanappa Tirumale (1960 1 SCR 890) Reiterated that Article 227 does not allow the High Court to assume appellate powers to correct every mistake of law. Used to support the conclusion that the High Court’s action amounted to impermissible appellate review.
S.M.S Sheik Jalaluddin v. S.K Sheik Jalaluddin Affirmed the same limited scope of supervisory jurisdiction. Cited as additional authority underscoring the consistent judicial approach.

Court's Reasoning and Analysis

The Supreme Court noted that several of its own decisions have consistently confined Article 227 jurisdiction to supervisory, not appellate, functions. Applying that settled law, it found that:

  • The Tribunal’s decision on the effective date of the wage revision was a matter of discretion, involving not only monetary impact but also administrative adjustments of workmen into new classifications.
  • The High Court reviewed the sufficiency of the Tribunal’s reasons and substituted its own view that fairness required a 1 April 1957 start date. In doing so, it effectively exercised appellate discretion.
  • Such substitution is prohibited under Article 227, which allows interference only to keep the Tribunal within its legal bounds, not to correct perceived errors of judgment.
  • The High Court’s additional reasoning—mentioning delay allegedly caused by the appellant—did not convert its action into a permissible supervisory exercise.
  • The absence of the appellant’s representation in the High Court did not enlarge that court’s jurisdiction.

Holding and Implications

Appeal Allowed; High Court order set aside; Tribunal’s original award restored.

Immediate Effect: the revised wage scales will become operative from 1 April 1959, as originally directed by the Industrial Tribunal. Broader Implication: the judgment reaffirms that High Courts cannot use Article 227 to re-exercise discretion or sit in appeal over subordinate tribunals, thereby fortifying the doctrinal limits on supervisory jurisdiction.

    Rajkamal Kalamandir (P) Ltd v. Indian Motion Pictures Employees' Union And Others

    Gajendragadkar, J.— This appeal has been brought to this Court by the appellant Rajkamal Kalamandir (P) Ltd. with a certificate issued by the Bombay High Court against its order passed under Article 227 of the Constitution and the narrow point which Mr Phadke for the appellant has raised in support of the appeal is that the order under appeal is outside the jurisdiction of the High Court under Article 227.

    2. It appears that between the appellant and it employees, industrial disputes arose in respect of several items and they were referred to the Industrial Tribunal at Bombay for adjudication on 30-3-1957. The Tribunal first took up the question of dearness allowance, leave with wages, provident fund and other subsidiary matters for its decision and on 4-6-1958, it pronounced its award on these points. A claim for revised wage structure and increase in wages had also been included in the reference and for dealing with this claim in a scientific way, the Tribunal obtained the assistance of four assessors, two on each side. The assessors made their report on 2-2-1959. This report was intended to assist the Tribunal to ascertain the relative skill of workmen before classifying them into several categories. After receiving this report, the Tribunal proceeded to pronounce its award in respect of the claim for wages and classification of workmen. This award was pronounced on 3-2-1960. It this award, the Tribunal considered the question as to whether the relief granted by it to the respondents in regard to dearness allowance and revised pay scales should be retrospective. In respect of dearness allowance, it directed that the dearness allowance ordered to be paid by the award should take effect from 1-4-1957. In regard to the wages, however, it held that the revised pay scales shall be introduced as from 1-4-1959. As invariably happens, after a new wage structure was directed by the award, an order had to be made in respect of adjustments of the several employees in different categories evolved by the award and so, an appropriate direction was given by the Tribunal in respect of such adjustments. After this award was pronounced, the respondents moved the High Court by an application under Article 227 of the Constitution on 13-6-1960. On their behalf, it was urged that the Tribunal had committed an obvious error in not directing the enforcement of the new wage scale as from 1-4-1957. This application has been allowed by the High Court and the award has been corrected in that behalf. Under the order passed by the High Court, the operation of the award which deals with the revised pay scales has to come into force from 1-4-1957. It is the validity of this order that Mr Phadke challenges before us in the present appeal.

    3. The point raised by Mr Phadke naturally lies within a very narrow compass. Indeed, Mr Phadke is in the very fortunate position of being able to cite a number of decisions of this Court which have consistently taken the view that in exercising its jurisdiction under Article 227 of the Constitution, the High Court cannot sit in appeal over the orders of tribunals.

    4. This question came to be considered by this Court as early as 1954, in the case of Waryam Singh v. Amarnath (1954) SCR 565. Das, J., as he then was, who spoke for the Court observed that the power of superintendence conferred by Article 227, as pointed out by Harries, C.J in Dalmia Jain Airways Ltd. v. Sukumar Mukherjee AIR 1951 Cal 193 should be exercised most sparingly and only in appropriate cases in order to keep the subordinate courts within the bounds of their authority and not for correcting mere errors.

    5. In Satyanarayan Laxminarayan Hegde v. Mallikarjun Bhavanappa Tirumale (1960) 1 SCR 890 same as AIR 1960 SC 137 this Court has observed that it had noticed that in the application to the High Court, the respondent asked that court to exercise its power of superintendence under Article 227 of the Constitution by the method of issuing a writ of certiorari or any other suitable writ. Das Gupta, J. who spoke for the Court then proceeded to observe:

    “Article 227 corresponds to Section 107 of the Government of India Act, 1915. The scope of that section has been discussed in many decisions of Indian High Courts. However, wide it may be that the provisions of Section 115 of the Code of Civil Procedure, it is well established that the High Court cannot in exercise of its power under that section assume appellate powers to correct every mistake of law.”
    In other words, the principle laid down by this Court in Waryam Singh case (1954) SCR 565 has been reiterated.

    6. It is somewhat surprising that the last para of the judgment which enunciates the true position in law has not been, through oversight, reported in the judgment in the authorised series (Supreme Court Reports).

    7. The same view has been expressed by this Court in the case of S.M.S Sheik Jalaluddin v. S.K Sheik Jalaluddin.

    8. Therefore there can be no doubt that in exercising its jurisdiction under Article 227, the High Court cannot sit in appeal over the decision of the Tribunal or the court which is brought before it and cannot upset its discretionary orders on the ground that if the matter had been raised before it, it might have exercised its discretion differently. In the present case, the Tribunal had considered the question as to whether the revised pay scale should take effect from 1-4-1957, or not. It was urged before the Tribunal that the demand in that behalf had been made by the respondents much earlier and that the preference itself had been made in pursuance of the said demands in March 1957; and so the argument before the Tribunal was that like the dearness allowance, revised wage structure should also be made effective from 1-4-1957. The Tribunal did not accept this contention. It held that unlike the dearness allowance, the revised wage structure should take effect from 1-4-1959. It should be noticed that the award was pronounced in February 1960 and ordinarily, it would have been enforceable within a month after its publication. The Tribunal however thought that the ends of justice required that the revised wage structure should come into effect from an earlier date which it fixed as 1-4-1959. The High Court has considered the question as to whether the reason given by the Tribunal is valid or not; and it held that the Tribunal had really given no reason worth the name. The High Court in considering the propriety of the order has referred to the fact that the dispute between the parties has been a long drawn out affair and that the appellant, according to the High Court, was responsible for the delay because it adopted an obstructive attitude. Then the High Court has proceeded to observe that normally speaking, when a matter is referred to the tribunal for settlement of a dispute between the parties, the award should in fairness be effective at least from the date of the reference. Acting on these reasons, the High Court set aside the order passed by the Tribunal and has directed that the revised pay scale should come into force as from 1-4-1957.

    9. It is clear that in reversing the order of the Tribunal, the High Court has in substance purported to exercise its appellate jurisdiction. Whether or not the award should be retrospective in its effect is a question that is usually to be determined by the Tribunal in its discretion. Undoubtedly, like all matters left to judicial discretion, the question about the retrospective operation of the award must also be considered on reasonable grounds, but that is not to say that the matter is not one of discretion. Therefore in interfering with an order which was within the discretion of the Tribunal, the High Court has really purported to substitute its discretion for that of the Tribunal and that clearly is outside its jurisdiction under Article 227.

    10. There is another aspect of the matter to which attention of the High Court does not appear to have been drawn. If the revised pay scale is made retrospective from 1-4-1957, it does not mean only an additional burden on the appellant to pay an additional packet of wages to the respondents, it also involves necessarily a question of making necessary adjustments in fitting the workmen in the respective categories as from 1-4-1957; and this aspect of the matter must have been borne in mind by the Tribunal when it decided the date from which the revised pay scale should take effect. The decision of the question did not depend merely on enquiring how much more the appellant should pay, it also involved other considerations. And if the Tribunal did not set out those considerations in detail, it may perhaps be, because the Tribunals are too familiar with those considerations. Therefore in our opinion, the High Court exceeded its jurisdiction in entertaining the special civil application preferred by the respondents and reversing the discretionary order passed by the Tribunal.

    11. It is somewhat unfortunate that the appellant was not represented before the High Court when the special civil application was argued. We were told by Mr Phadke that the failure of the appellant to appear by its representative before the High Court was due to some default on the part of one of its officers and we are also told that after the judgment was pronounced, an application for restoration was made, but was rejected. However, the High Court was then moved for a certificate and the appellant was granted the certificate. It may be that if the appellant had appeared before the High Court and invited its attention to the relevant facts, the High Court may not have interfered with the discretionary order passed by the Tribunal.

    12. The result is that the appeal is allowed, the order passed by the High Court on the special civil application filed by the respondent before it set aside and the impugned direction of the award restored.

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    Rajkamal Kalamandir (P) Ltd v. Indian Motion Pictures Employees' Union And Others
    (Aug 8, 1962)