Full Judgment Text
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PETITIONER:
J. K. COTTON SPINNING & WEAVINGMILLS Co., Ltd.
Vs.
RESPONDENT:
BADRI MALI AND OTHERS
DATE OF JUDGMENT:
09/05/1963
BENCH:
GAJENDRAGADKAR, P.B.
BENCH:
GAJENDRAGADKAR, P.B.
WANCHOO, K.N.
GUPTA, K.C. DAS
CITATION:
1964 AIR 737 1964 SCR (3) 724
CITATOR INFO :
RF 1969 SC 306 (18)
F 1972 SC1598 (5,6,16,17)
ACT:
Industrial Dispute-Definition of ’worker’-Malis whether
workers-Malis whether industrial employees-"Employed in any
industry--"Meaning-Principle of incidents relationship-Grant
of ’leave’ on ground of fair play and social justics-
Validity--Concept of social justice-Uttar Pradesh Industrial
Disputes Act, 1947 (U.P. 28 of 1947), s. 2-Industrial
Disputes Act, 1947 (14 of 1947), s. 2 (s).
HEADNOTE:
An industrial dispute was referred by the Government of
Uttar Pradesh for adjudication to the Adjudicator, Kanpur.
,Me Adjudicator held that the Malis were workmen under the
U.p. Industrial Disputes Act but they were not Industrial
employees and hence were not entitled to claim dear food
allowance under the Government order dated December 6, 1948.
The claims of the Malis with regard to weekly holidays and
leave with wages were also rejected by the Adjudicator.
725
Two crow appeals were filed -against the order of the
Adjudicator before the Labour Appellate Tribunal. The
appeal of the appellant was dismissed. As regards the
appeal of respondents, the Tribunal gave the Malis benefit
of dear food allowance. Their claim for leave with wages
was also allowed on the ground of social justice. However,
their claim for weekly holiday was rejected.
The appellant filed a writ petition in the Allahabad High
Court but that was dismissed as in fructuous. The appellant
came to this court by special leave.
The contentions raised by the appellant in this court were
that the Malis were not workers within the meaning of s. 2
of the U.P. Industrial Disputes Act, that Malis were not
industrial employees within the meaning of Government order
dated December 6, 1948, and hence were not entitled to dear
food allowance and that the Labour Appellate Tribunal should
not have granted the demand of the respondents for leave on
ground of fair-play and social justice.
Held that the Malis were workers within the meaning of s. 2,
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of the U.P. Industrial Disputes Act. They were employed by
the appellant, were paid by it and were, subject, to its
control and supervision and *discharged the function of
looking after the properties of the appellant. Their
conditions, of service were also determined by the appellant
and the continuance of their service also depended upon the
pleasure of the appellant. The bungalows and gardens on
which they worked were a kind of amenity supplied by the
appellant to its officers. Hence, the Malis were engaged in
operations which were incidentally connected with the main
industry carried on by the employers The case of the Malis
was similar to that of the bus drivers. The relation of the
work carried on by the Malis with the industry was not
remote, indirect or far fetched.
The employee who is engaged in any work or operation which
is incidentally,connected with the main industry of the
employer is a workman, provided the other requirements of s.
2 (s) of the industrial Disputes Act are satisfied.
Held also, that the Malis were industrial employees within
the meaning of the Government order dated December 6, 1948,
and hence were entitled to claim the benefit of dear food
allowance. The Tribunal was in error in limiting the scope
of the expression, " Industrial , employees" by reference to
the definition of the word "worker" as given in the
Factories Act,
726
Held also, that the Tribunal was justified in granting the
demand of the respondents for leave on grounds of fair-play
and social justice. The concept of social justice has now
become such an integral part of industrial law that it is
idle for any party to suggest that industrial adjudication
can or should ignore the claims of social justice in dealing
with industrial disputes. The concept of social justice is
not narrow, one-sided or pedantic and is not confined to
industrial adjudication alone. Its sweep is comprehensive.
It is founded on the basic ideal of socioeconomic equality
and its aim is to assist the removal of socioeconomic
disparities and inequalities. In dealing with industrial
matters, it does not adopt a doctrinaire approach and
refuses to yield blindly to abstract notions, but adopts a
realistic and pragmatic approach. It endeavors to resolve
the competing claims of employers and employees by finding a
solution which is just and fair to both parties with the
object of establishing harmony between capita i labour and
relationship.
Shri Bhikari, Kanpur v. Messrs. Cooper Allen & Co., Kanpur,
1952 L.A.C. 298 ; The Upper India Chini Mills Mazdoor Union
v. The Upper India Sugar Mills 1953 L.A.C. 870 ; The Suti
Mill Mazdoor Sabha, Kanpur v. Messrs. The British India
Corporation Ltd., Kanpur, 1956 L.A.C. 549 ; J.K. Iron& Steel
Co. Lid, Kanpur v. The Iron and Steel Masdoor Union, Kanpur,
[1953] 2 S.C.R. 1315 ; Muir Mills Co. Ltd. v. Suti Mills
Mazdoor Union, Kanpur, [1955] 1 S. C.R. 991; Messrs. Crown
Aluminium Works v. Their Workmen, [1958] S.C.R. 651 and The
State of Mysore v. The Workers of Gold Mines, [1959] S.C.R.
895, referred to.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 480 & 481
of 1962.
Appeals by special leave from the order dated March 10, 1958
of’ the Allahabad High Court in Writ Nos. 1006 and 1007 of
1955, and from the decision dated July 15, 1955 of the
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Labour Appellate Tribunal of India, Lucknow, III Bench in
Appeal Nos. III-274 and 300 of 1954.
G. S. Pathak and G. C. Mathur, for the appellants.
K. S. Hajela and C.P. Lai, for respondent No. 2 (In C.A.
No, 480 of 1962).
727
J.P. Goyal, for respondents Nos. 3 to 12 (in C.A. No. 480 of
1962) and the respondents (in C.A. No. 481 of 1962).
1963. May 9. The judgment of the court was delivered by
GAJENDRAGADKAR I.-An Industrial dispute which arose between
the appellant, J,K. Cotton Spinning & Weaving Mills Co.,
Ltd,, and the respondents, its employees, was referred by
the Government of Uttar Pradesh for adjudication to the
Adjudicator, Kanpur, on November, 30, 1953.This dispute
covered two items of claim made by the respondents. The
first item was in regard to the dismissal of a gardener
(Mali) Badri by name. The respondents urged that the said
dismissal was unlawful and Badri was entitled to
reinstatement with all the wages during the period of his
enforced unemployment. The second item of dispute was in
regard to the claim made by the 10 Malis employed by the
appellant to receive dear food allowance, weekly holidays
and leave with: wages.
Before the Adjudicator, the appellant contended that the
Malis were not workmen within the meaning of the U.P.
Industrial Disputes Act, 1947 (No. 28 of 1947), and so, the
reference was invalid. It was also urged by the appellant
that the claim made by the respondents for dear food
allowance could not be sustained, because G.O. No. 3754
(LL)/XVIII-894 (L)- 1948 issued by the U. P. Government on
December 6, 1948, was inapplicable to the Malis inasmuch as
the said Government order applied only to industrial
employees and the Malis are not industrial employees within
the meaning of the said order. The other claims made by the
respondents for weekly holidays and leave with wages were
also resisted on the ground that the Malis were not workmen
under
728
the Act, and so, they were entitled to, no relief in the
present proceedings.
The Adjudicator held that the Malis were workmen under the
Act, and so, he rejected the appellant’s contention that the
reference was bad. On the merits, he found that the
dismissal of Badri was without justification, and so, he was
entitled to reinstatement. He also ordered that the
appellant should pay Badri half his wages at Rs. 45/- p.m.
as compensation from the date of his dismissal to the date
of his reinstatement. That is how the first item of dispute
was decided by the Adjudicator. On the second item of
dispute.. the Adjudicator found that the Malis were not
industrial employees, and so, they were not entitled to
claim dear food allowance under the relevant Government
order. The other claims made by the Malis With regard to
weekly holidays and leave with wages were likewise rejected
by the Adjudicator. In other words, the second item of
dispute was decided against the respondents. This award was
pronounced on May, 31 1954.
The decision of the Adjudicator gave rise to two appeals
before the Labour Appellate Tribunal. The appellant by its
appeal No. 300 of 1954 disputed, the correctness of the
Adjudicator’s conclusion that Badri was a workman and that
his dismissal was unjustified. The Labour Appellate
Tribunal has rejected this contention and the appellant’s
appeal was dismissed. The respondents by their appeal No.
274/1954 contended that the Adjudicator was in error in
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holding that the Malis were not industrial employees and as
such, were not entitled to dear food allowance. The Labour
Appellate Tribunal has upheld this plea and has given the
Malis the benefit of the provision contained in the relevant
Government order in respect of dear food allowance. The
claim of the respondents for a weekly holiday was, however,
rejected by the Labour Appellate
729
Tribunal, while their claim for leave with wages was
allowed, and a direction was issued that the Malis in
question should be given leave in the manner prescribed by
section 79 of the Factories Act (No. 63 of 1948). The
Labour Appellate Tribunal held that though the said Act was,
in terms, not applicable to the Malis, the principle on
which the statutory provision for leave prescribed by s. 79
was based was a principle of social justice, and so, the
Malis were entitled to have a similar benefit. The
respondents had also claimed that Badri should be given the
full wages for the period of his enforced unemployment
instead of Rs. 45/-p.m. as allowed by the Adjudicator. This
plea has also been upheld by the Labour Appellate Tribunal.
In the result, the respondents appeal substantially
succeeded. The decision, of the Labour Appellate Tribunal
was pronounced on 15.7.1955.
This decision was challenged by the appellant before the
Allahabad High Court by preferring a writ petition No.
1006/1955. It was urged by the appellant that, the
decision of the Labour Appellate Tribunal was patently
erroneous and illegal, and so,, it should be quashed under
Art. 226 of the Constitution. Whilst the writ petition was
pending in the said High Court, the Bench of the Labour
Appellate Tribunal that sat at Lucknow ceased to exist, and
so, the High Court took the view that it had no jurisdiction
to entertain a writ petition in respect of the decision of
the Labour Appellate Tribunal which was not functioning
within the limits of its territorial juridiction. That is
why the said writ petition was dismissed as having become
in fructuous. This decision was pronounced on March 10,
1958.
The two present appeals Nos. 480 & 481/1962 have been
brought to this Court by the appellant by special leave and
they are directed, against the decision of the High Court
dismissing the appellant’s
730
writ petition and against the decision of the Labour
Appellate Tribunal respectively. Mr. Pathak who appeared
before us for the appellant stated that he did not propose
to argue Civil Appeal No. 480/1962, because this Court’s
decision in Civil Appeal No. 481/1962 would determine the
dispute between the parties. Civil Appeal No. 480/1962 has
in that dense become unnecessary, because the merits of the
main dispute are raised by the appellant in its appeal No.
481/1962 which is directed against the decision of the
Labour Appellate Tribunal. We would, therefore, deal with
Civil Appeal No. 481/1962 only.
In this appeal, Mr. Pathak has not disputed the correctness
or propriety of the decision of the Labour Appellate
Tribunal in regard to the claim made by the respondents in
respect of Badri’s dismissal. So, that part of the dispute
need not detain us in the present appeal. The principal
contention which has been seriously pressed before us by Mr.
Pathak is that the Labour Appellate Tribunal was in error in
holding that the Malis are workmen under section 2 of the
Act. Section 2 of the Act, as it stood at the relevant
time, provided, inter alia , that in this Act the expression
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"workman" shall have the meaning assigned to it in s. 2 of
the Industrial Disputes Act, 1947, and that takes us to s. 2
(s) of the Industrial Disputes Act, 1947 (No. 14 of 1947)
which defines a workman. Section 2 (s), inter alia, provi-
des that a "Workman" means any person (including an
apprentice) employed in any industry to do any skilled or
unskilled manual, supervisory, technical or clerical work
for hire or reward., whether the terms of employment be
expressed or implied; and so, the question is whether the 10
Malis whose claims have given rise to the present reference
can be said to be workmen under s. 2 (s).
For deciding this point, it is necessary to refer to the
relevant facts, as they have been found by the
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Tribunals below. The 10 Mails have been appointed by the
appellant for the maintenance of gardens attached to the
bungalows of some of the officers of the Mills which are
situated in the compoun, of the Mills, while others are
employed for looking after the gardens attached to Kamla
Niwas which is a residential building allotted to the
Governing Director of the Mills and which is also situated
within the compound of the Mills. Some of these Malis have
also to work in the gardens attached to the residential
building of the Director-in-charge of the Mills. The
gardens which are looked after by these Malis are not the
gardens attached to the Mills as such. It appears that in
the large and expensive colony of the Mills, the factory of
the Mills is inside a compound. Outside this compound of
the factory, but within the colony of the Mills, are
situated the bungalows occupied by the officers of the Mills
and the Director. It is the gardens attached to these
bungalows that arc looked after by the 10 Malis.
It is also clear that the Malis are appointed by the
appellant. The total monthly wages of these 10 Malis
come to about Rs. 450/-. The appellant collects a small
amount from. the officers as a contribution to the salaries
of these Malis and the bulk of it approximating to 78% is
paid by the appellant. The contributions made by the
officers are credited to the revenue of the appellant and
from the funds of the appellant, the Malis are paid their
wages and they are debited in the accounts of the appellant.
The names of the Malis are borne on a register maintained by
the clerk of the appellant who supervises their work. This
clerk notes their attendance from day to day. Their
appointment is made by the appellant, their work is
supervised and controlled by the appellant and they are
liable to be dismissed by the appellant. The officers who
are allotted the bungalows have no control over the Malis
and can exercise no jurisdiction over them. It is in the
light
732
of these facts that the question raised by Mr. Pathak in
regard to the status of the Malis has to be determined.
Mr. Pathak contends that the crucial words used in the
definition prescribed by s. 2 (s) are ",,employed in any
industry". He argues that before any person can claim to be
a workman under s. 2 (s), it must be shown that he has been
employed in the industry of the employer. The industry of
the appellant is spinning and weaving operations and, says
Mr. Pathak, the Malis have obviously nothing to do either
with the spinning or weaving operations of the appellant;
since they are not employed in the industry of the
appellant, the fact that they have been employed by the
appellant would not make them Workmen within the meaning of
the Act. Thus presented, the argument is no doubt prima
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facie attractive; but as soon as we begin to examine it more
carefully, it breaks down. If the construction for which
’Mr. Pathak contends is accepted without any modification,
clerks employed in the factory would not be workmen, because
on the test suggested by Mr. Pathak, they are not employed
in the spinning or weaving operation carried on by the
appellant and yet, there is no doubt that clerks employed by
the appellant to do clerical work are workmen under s. 2
(s), and so. the literal construction of the clause employed
in any industry" cannot be accepted and that means that "
employed in any industry" must take in employees who are
employed in connection with operations incidental to the
main industry, and once we are compelled to introduce this
concept of incidental Connection with the main industry,
the literal construction for which the appellant contends
has to be rejected.
It is, of course, not very easy to decide what is the field
of employment included by the principle of incidental
relationship, and what would be the limitations of the said
principle? If sweepers arc
733
employed by the appellant to clean the premises of the
Mills, that clearly would be work incidental to the main
industry itself, because though the work of the sweepers has
no direct relation either with the spinning or weaving, it
is so manifestly necessary for the efficient functioning of
the industry itself that it would be irrational to exclude
sweepers from the purview of s. 2 (s). If buses are owned
by the industry for transporting the workmen, would the
drivers of such buses be workmen or not? It would be
noticed that the incidental connection in’ the present
illustration is one degree removed from the main industry;
the workmen who work in the industry are intended to be
brought to the factory by the buses and it is these buses
that the drivers run. Even so, it would not be easy to
exclude drivers of buses engaged by the factory solely for
the purpose of transporting its employees to the Mills from
their respective homes and back, on the basis that they are
not workmen under s. 2 (s). Mr. Pathak was unable to resist
the extension of the definition to such cases; but,
nevertheless, he attempted to argue that though sweepers who
sweep the premises of the factory may be called workmen,
sweepers who sweep the area around the factory may not be
included under s. 2 (s). Sweeping the area outside the
factory, it is argued, may be incidentally connected with
the main industry, but the incidental connection is indirect
and remote, and so, this class of employees must be excluded
from the definition. We are not prepared to accept this
argument. In our opinion, an employee who is engaged in any
work or operation which is incidentally connected with the
main industry of the employer would be a workman, provided
the other requirements of s. 2 (s) are satisfied.
In this connection, it is hardly necessary to emphasise that
in the modern world industrial operations have become
complex and complicated and for the efficient and successful
functioning of
734
any industry, several incidental operations are called in
aid and it is the totality of all these operations that
ultimately constitutes the industry as a whole. Wherever it
is shown that the industry has employed an employee to
assist one or the other operation incidental to the main
industrial operation, it would be unreasonable to deny such
an employee the status of a workman on the ground that his
work is not directly concerned with the main work or
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operation of the industry. Reverting to the illustration of
the buses owned by the factory for the purpose of trans-
porting its workmen, if the bus drivers can legitimately be
held to assist an operation incidental to the main work of
the industry, we do not see why a Mali, should not claim
that he is also engaged in an operation which is incidental
to the main industry.
While we are dealing with this point, it is necessary to
bear in mind that the bungalows are owned by the appellant
and they are allotted to the officers as required by the
terms and conditions of the officers’ employment. Since the
bungalows are allotted to the officers, it is the duty of
the appellant to look after the bungalows and take tare of
the gardens attached to them. If the terms and conditions
of service require that the officers should be given
bungalows and gardens are attached to such bungalows, it is
difficult to see why in the case of Malis who are employed
by the appellant, are paid by it, and who work subject to
its control and supervision and discharge the function of
looking after the appellant’s property, it should be said
that the work done by them has no relation with the industry
carried on by the appellant. The employment is by the
appellant, the ’conditions of service. are determined by the
appellant, the payment is substantially by the appellant,
the continuance of service depends upon the pleasure of the
appellant, subject, of course, to the Standing
735
Orders prescribed in that behalf, and the work assigned to
the Malis is the work of looking after the properties which
have been allotted to the officers of the appellant. Like
the transport amenity provided by a factory to its
employees, bungalows and gardens are also a kind of amenity
supplied by the employer to his officers and the drivers
who look after the buses and the Malis who look
after the gardens must, therefore, be held to be engaged
in operations which are incidentally connected with the main
industry carried on by the employer. It is true that in
matters of this kind it is not easy to draw a line, and it
may also be conceded that in dealing with the question of
incidental relationship with the main industrial
operation, a limit has to be prescribed so as to exclude
operations or activities whose relation with the main
industrial activity may be remote, indirect and far-fetched.
We arc not prepared to hold that the relation of the work
carried on by the Malis in the present case can be
characterised as remote, indirect or far-fetched. That-is
why we think that the Labour Appellate Tribunal was right in
coming to the conclusion that Malis are workmen under the
Act.
Before we part with this point, we would like to add that
industrial adjudication appears consistently to have taken
the view that Malis looking after the gardens attached to
the bungalows occupied by officers of any industrial concern
are workmen under s. 2 (s). Our attention has been drawn to
two decisions of the Labour Appellate Tribunal dealing with
this question. In Shri Bhikari, Kanpur v. Messrs. Cooper
Allen & Co., Kanpur, (1) the Labour Appellate Tribunal while
dealing with the case of Bhikari who was engaged as a
gardener by the Company and was on the pay-roll of the
Company observed that the Tribunal failed to see why he is
not to be regarded as a workman within the meaning of s. 2
(s) of the Industrial Disputes Act which
(1) [1952] L. A. C. 298.
736
definition has been adopted by the U.P. Industrial Disputes
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Act under which the case was started. The same view was
taken by the Labour Appellate Tribunal in the case of The
Upper India Chini Mazdoor Union v. The Upper India Sugar
Mills (1). Dealing, with the case of Rati Rama Who was
engaged as a Mali, the Tribunal rejected the employer’s
contention that the said Mali was a domestic servant and
observed that merely because the Company chooses to put Rati
Ram on the work of a gardener with the Managing Director
which the A Company is admittedly required to provide for
and pay for, it does not follow that Rati Ram became a
domestic servant. It is remarkable that both these
decisions which are directly in point, were under s. 2 of
the Act with which we are concerned. In dealing with
industrial dispute we are reluctant to interfere with the
well established and consistent course of decisions
pronounced by the Labour Appellate Court unless, of course,
it is shown that the said decisions are plainly erroneous.
The next question which calls for our decision is whether
the Malis are industrial employees within the meaning of the
relevant G. O. The said G. O. opens with two operative
paragraphs which are followed by the table of minimum basic
wages prescribed by it and other paragraphs. These first
two paragraphs read thus :
"(1) This order shall he deemed to have come
into force with effect from December, 1, 1948
and shall, in respect of the matters covered
by it, bind all the industries affected
thereby and the workmen employed therein.
(2) The minimum basic wage payable to
employees (industrial or clerical) in the
various industries and undertakings specified
in column 1 of, Table I hereunder shall, so
long as this
(1) 1953 L. C. 870.
737.
order remains in force, be the amounts menti-
oned against them in column 2 or 3 thereof, as
the case may be,"
Paragraph 3 prescribes the dear food allowance, and it is in
respect of this claim made by the respondents that the
appellant has raised the contention that this paragraph does
not apply, because the Malis are not industrial employees.
It will be noticed that the first Paragraph makes it
perfectly clear that the order binds all the industries
affected by it and the workmen employed therein ; so that as
soon as it is held that the Malis are workmen under s. 2 of
the Act, it would follow that the order would apply to the
Malis. In considering the present point. it is necessary to
bear in mind that this order has been issued in exercise of
the powers conferred by clauses (b) and (g) of section 3 of
the Act, and that clearly means that persons who are workmen
under s. 2 of the Act are referred to by paragraph I and
there would be no escape from the conclusion that the order
would apply to such workmen and the Industries that employed
them.
It is, however, urged that in paragraph 2 the minimum basic
wage is specified as being payable to employees, industrial,
or clerical, in the various industries and the suggestion is
that it is only employees who are either industrial or
clerical to whom the order applies. Industrial employees
are not defined; but it is assumed by the appellant in
urging this argument that the class of industrial employees
would be narrower than the class of workmen covered by s. 2
of the Act. In our opinion, this argument is wholly
fallacious. It is clear that the second paragraph refers to
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industrial or clerical employees, because the table
prescribing the minimum basic wages divides the employees
into two categories, industrial and clerical. It is only
because his division is made by the table that for the
738
purpose of clarification, paragraph 2 mentions industrial or
clerical in bracket after referring to the employees.
Besides it would be unreasonable to assume that when the
order prescribed minimum basic wages for workmen to whom
paragraph I expressly refers, it could have been intended
that the said minimum basic wages should not be extended to
some workmen falling under paragraph I because they do not
fall under the category of industrial employees or clerical
employees. The scheme of the order is plain and unambiguous
; to all workmen failing under s. 2 the benefits of the
order are intended to be extended. That is the view -taken
by the Labour Appellate Tribunal and, in our opinion, that
view is obviously right. If that be so, the validity of the
order passed by the Labour Appellate Tribunal awarding the
respondents’ claim for dear food allowance under paragraph 3
of the G.O. cannot be questioned.
It is true that in The Suti Mill Mazdoor Sabha Kanpur v.
Messrs. The British Indian Corporation Ltd. Kanpur (1),
the Labour Appellate Tribunal appears to have taken the view
that the expression "’industrial employees" is limited to
the class of employees who are employed directly or
indirectly for the purpose of manufacturing process carried
on by the factory. In coming to this conclusion, the
Labour Appellate Tribunal noticed the fact that the
expression "’industrial employees" had not been defined, but
it was disposed to drive assistance from the definition of
the word "worker" in the Factories Act in determining the
scope of the expression "industrial employees". No doubt,
it was urged before the Tribunal that expression "industrial
employees" should be understood in the same comprehensive
sense as the word "industry" as defined in the industrial
Disputes Act, but this contention was rejected by the
Tribunal. It seems to us that the Tribunal was in error in
limiting the, scope of
(1) 1956 L.A.C. 549
739
the expression. "’industrial employees" by reference to the
definition of the word "worker" prescribed by the Factories
Act. Indeed, it would be relevant and appropriate to
refer to the definition of the word workman" under s. 2 (s)
of the Industrial Disputes Act, because the G.O. in question
has been issued under the Act and the definition of a "work-
man" prescribed by s. 2 of the Act as s. 2 (s) of the
Industrial Disputes Act would determine the true denotation
of the expression "industrials employees". We must
accordingly hold that the Labour Appellate Tribunal was in
error in accepting the very narrow construction of the
expression "industrial employees" used in the Government
order.
The next point which has been urged before us by Mr. Pathak
is in regard to the decision of the Labour Appellate
Tribunal awarding the benefit of leave to the respondents on
the same lines as s. 79 of the Factories Act. Mr. Pathak
attempted to argue that the claim for leave had been made
specifically on the basis of provisions of the Factories Act
and the U.P. shops and Commercial Establishments Act, and he
suggested that as soon as it was found that these two Acts
were inapplicable to the Malis the said claim should have
been rejected. The Labour Appellate Tribunal has, however,
held that though the said two Acts do not apply, a claim for
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leave can be justified on the ground of social justice. Mr.
Pathak objects to this decision on the technical ground.
that the claim itself was based on the provisions of the
said two Acts and no other. This contention is not well-
founded. It does appear that in paragraph 10 of the written
statement filed on behalf of the respondents reference is
made to the said two Acts but in the prayer clause the claim
is made in general terms without reference to the Acts, and
the reference itself is in general terms and makes no
mention of the said two Acts. Therefore, the technical
ground urged by Mr. Pathak that the,
640
relevant claim was made on the provisions of the two
specified Acts and should be rejected solely on the ground
that the said Acts do not apply, cannot be sustained. It
was a general reference which the Adjudicator was called
upon to decide and the fact that the said two Acts did not
apply, cannot be said to rule out the said claim as to leave
in limine.
Then Mr. Pathak was driven to contend that the ground of
social justice given by the Labour Appellate Tribunal in
support of its award is really not sound in law, and he
referred us to the observations made by this Court on some
occasions that the-considerations of social justice ’were
"not only irrelevant but untenable" vide J.K. Iron & Steel
Co., Ltd. Kanpur v. The Iron and Steel Mazdoor Union,
Kanpur (1), and Muir Mills Co., Ltd. v. Suti Mills Mazdoor
Union, Kanpur. (2), In our opinion, the argument that the
considerations of -social justice are irrelevant and
untenable in dealing with industrial disputes, has to be
rejected without any hesitation. The development of
industrial law during the last decade and several decisions
of this Court in dealing with industrial matters have
emphasised the relevance, validity and significance of the
doctrine of social justice, vide Messrs. Crown Aluminum
Works v. Their Workmen, (s) and The State of Mysore v. The
Workers of Gold Mines (4) Indeed the concept of social
justice has now become such an integral part of industrial
law that it would be idle for any party to suggest that
industrial adjudication can or should ignore the claims of
social justice in dealing with industrial disputes. The
concept of social justice is not narrow, one-sided, or
pedantic, and is not confined to industrial adjudication
alone. Its sweep is comprehensive. It is founded on the
basic ideal of socioeconomic equality and its aim is to-
assist the removal of socioeconomic disparities and
inequalities ; nevertheless, in dealing with industrial
matters, it does not adopt a doctrinaire
(1)[1955] 2 S.C.R. 1315.
(2)[1955] 1 S.C.R. 991.
(3)[1958]S.C.R. 651.
(4) [1959] S.C.R. 895
741
approach and refuses to yield blindly to abstract notions,
but adopts a realistic and pragmatic approach. It,
therefore, endeavours to resolve the competing claims of
employers and employees by finding a solution which is just
and fair to both parties with the object of establishing
harmony between capital and Labour, and good relationship.
The ultimate object of industrial adjudication is to help
the growth and progress of national economy and it is with
that ultimate object in view, that industrial disputes are
settled by industrial adjudication on principles of fair-
play and justice. That is the reason why on several
occasions, industrial adjudication has thought it fit to
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make reasonable provision for leave in respect of the
workmen, who may not strictly fall within the purview of the
Factories Act or the Shops and Commercial Establishments
Act. We are, therefore, satisfied that there is no
substance in the grievance made by Mr. Pathak that the
Labour Appellate Tribunal should not have granted the demand
of the respondents for leave on grounds of fair-play and
social justice.
The result is, Civil Appeal No. 481/1962 fails and is
dismissed with costs. Civil Appeal No. 480 of 1962 has not
been pressed and is, therefore, dismissed. There would be
no order as to costs.
Appeals dismissed.
742