Full Judgment Text
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PETITIONER:
THE AUTOMOBILE PRODUCTS OF INDIA LTD.
Vs.
RESPONDENT:
RUKMAJI BALA AND OTHERS(And connected Appeal)
DATE OF JUDGMENT:
03/02/1955
BENCH:
DAS, SUDHI RANJAN
BENCH:
DAS, SUDHI RANJAN
BHAGWATI, NATWARLAL H.
IMAM, SYED JAFFER
CITATION:
1955 AIR 258 1955 SCR (1)1241
ACT:
Industrial Disputes (Appellate Tribunal) Act, 1950 (XLVIII
of 1950), s. 22-Whether Labour Appellate Tribunal has
Jurisdiction to impose conditions when granting permission-
Industrial Disputes Act, 1947 (XIV of 1947), s. 33 and
Industrial Disputes (Appellate Tribunal) Act, 1950-S. 23-
Jurisdiction of authority not only to decide whether there
has been failure to obtain permission but also to give
decision on the merits of an industrial dispute-Industrial
Disputes Act, 1947 (as amended), s. 33 and s. 33-A-
Industrial Disputes (Appellate Tribunal) Act-Ss. 22 and 23-
Meaning and scope of.
HEADNOTE:
Held, (i) that the ordinary and primary jurisdiction of the
Labour Appellate Tribunal constituted under the Industrial
Disputes (Appellate Tribunal) Act, 1950 is appellate; (ii)
that s. 22 of the Act confers on the appellate tribunal a
special jurisdiction which is in the nature of original
jurisdiction; (iii) that s. 23 also vests in the tribunal an
additional jurisdiction to decide the complaint as if it
were an appeal pending before it; and (iv) that s. 23
confers on the
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workmen an additional remedy which they did not have under
the Industrial Disputes Act, 1947.
The two now ss. 33 and 33-A inserted in the Industrial Di--
putes Act 1947 (XIV of 1947) by Act XLVIII of 1950 confer
distinct benefits on the workmen and give some additional
jurisdiction and power to the authorities mentioned therein.
Section 33-A enjoins the Tribunal to decide the complaint
"as if it were a dispute referred to or pending before it"
and to submit its award to the appropriate Government and
provides that the provisions of the Act shall apply to the
award. The provisions of these two new ss. 33 and 33-A of
the 1947 Act correspond to and are in pari materia with the
provisions of ss. 22 and 23 of the 1950 Act and are more or
less in similar terms.
A ban has been put by s. 22 of 1950 Act and s. 33 of the
1947 Act upon the ordinary right, which the employer has
under the ordinary law governing a contract of employment
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with a view to protect the workmen against victimisation by
the employer and to ensure the termination.of the
proceedings in connection with industrial disputes in a
peaceful atmosphere and the only thing that the authority is
called upon to do is to grant or withhold the permission
i.e. to lift or maintain the ban. These sections do not
confer any power on the authorities to adjudicate upon any
other dispute.
Under s. 22 of the Industrial Disputes (Appellate Tribunal)
Act, 1950 (XLVIII of 1950) the Labour Appellate Tribunal has
no jurisdiction to impose conditions as a pre-requisite for
granting permission to the employer to retrench its workmen.
Under s. 33-A of the Industrial Disputes Act 1947 and s. 23
of the 1950 Act the jurisdiction of the authority is not
only to decide whether there has been a failure on the part
of the employer to obtain the permission of the authority
before taking action but also to give a decision on the
merits of an industrial dispute and grant appropriate relief
which when published by the appropriate Government will
become enforceable under the respective Acts.
Serampore Belting Mazdoor Union v. Serampore Belting Co.,
Ltd. ([1951] 1 Lab. L.J. 341), Batuk K. Vyas v. Surat
Borough Municipality ([1952] 54 Bom. L.R. 922), Raj Narain
v. Employer-s’ Association of Northern India ([1952] 1 Lab.
L.J. 381), The Queen v. County Council of West Riding of
Yorkshire ([1896] 1 Q.B. 386), Carlsbad Mineral Works Co.,
Ltd. v. Their Workmen ([1953] 1 Lab. L.J. 85), Atherton
West & Co., Ltd. v. Suti Mill Mazdoor Union ([1953] S.C.R.
780) and Bhattacharji v. Parry & Co., Ltd., Calcutta ([1954]
2 Lab. L.J. 635), referred to.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 2 and 4 of
1955.
Appeal by Special Leave from the Order dated the 18th day of
November 1954 of the Labour Appel-
1243
late Tribunal of India, Bombay in Application (Misc.) Bombay
No. 773 of 1954.
H. M. Seervai, J. B. Dadachanji and Rajinder Narain, for
the appellant in Civil Appeal No. 2 of 1955 and respondent
in Civil Appeal No. 4 of 1955.
D. H. Buch and I. N. Shroff, for the respondents in Civil
Appeal No. 2 of 1955 and appellants in Civil Appeal No. 4 of
1955.
M. C. Setalvad, Attorney-General for India (G. N. Joshi
and P. C. Gokhale with him), for the Intervener (Union of
India).
1955. February 3. The Judgment of the Court was delivered
by
DAS J.-This is an appeal by special leave from the order of
the Labour Appellate Tribunal, Bombay Bench, dated the 18th
November 1954 which was made on an application made by the
appellant company on the 6th September 1954 under section 22
of the Industrial Disputes (Appellate Tribunal) Act, 1950
(Act XLVIII of 1950) which is hereinafter referred to as the
1950 Act.
The appellant company carries on business as assemblers of
motor vehicles from "completely knocked down" assemblies
imported into India. There was some appeal pending before
the Labour Appellate Tribunal arising out of disputes
between the appellant company and its workmen. It is
alleged that the name of the appellant company had been
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removed by the Government of India from the list of approved
manufacturers maintained by them and that, in the result, it
had been unable to secure further import licenses for the
import of completely knocked down assemblies of motor
vehicles and that consequently on and from the 1st November
1953 the company had to lay off a number of its workmen, for
it had to operate the various departments of its factory at
greatly reduced strength. As the appellant company saw no
prospect of any increase in the scope of its present
operation which would provide employment for the workmen who
had been laid off, it had become necess-
1244
sary to retrench the workmen named in Annexure A to the
application. As those workmen were concerned with the
appeal pending before the Labour Appellate Tribunal the
company applied to the Appellate Tribunal under section 22
of the 1950 Act for permission to retrench them.
The respondents through their Union, the Automobile
Manufacturers’ Employees’ Association, Bombay, filed a
written statement on the 1st November 1954 making diverse
allegations against the company and contending that the
company bad itself to blame for having brought about the lay
off. It was contended that there was no immediate cause for
making the application, that the company was motivated by
ulterior motives to deprive the workmen of their dues which
even according to the company would become due and payable
to the workmen on the expiry of the one year of the said lay
off period. It was further alleged that in or about April
1954 the company recalled some of the workmen out of those
who had been laid off since November 1953 violating all
principles on which a recall should have been made and that
by such arbitrary and unscientific recall the company had
imposed disproportionate work loads on the recalled workmen,
thereby altering their conditions of service to their
prejudice. The respondents maintained that the application
was not maintainable in law, was mala fide and should be
dismissed. In the penultimate paragraph of the written
statement it was submitted that in the event of the Labour
Appellate Tribunal granting the permission in whole or in
part such permission should be granted subject to the
following conditions:-
(1) Payment of full wages with dearness allowance for the
entire period of lay off;
(2) Payment of one month’s notice pay and retrenchment
compensation at the rate of one month’s wages including
dearness allowance for every completed year of service and
part thereof in addition to the gratuity as per the scheme
in force in the company;
(3) Alternatively to (2) above and in cage the Labour
Appellate Tribunal took the view that the
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lay off was governed by section 25-C of the Industrial
Disputes Act, 1947, payment of compensation at 50 per cent.
of their wages plus dearness allowance for the entire period
of lay off to the date of discharge in addition to the
notice pay and gratuity as claimed in (2) above; and
(4)Payment of leave wages as per existing rules, taking the
entire period of lay off as service.
A number of documents were filed in support of the
respective contentions.
-The Labour Appellate Tribunal at the very outset of its
judgment under appeal states its finding on the merits of
the action proposed to be taken by the company as follows:-
"There can be little doubt that the retrenchment has been
occasioned by the failure of the concern to secure
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sufficient work owing to absence of licenses from Government
and, therefore, retrenchment must be regarded as inevitable
and the application before us bona fide. Permission to
retrench cannot be refused but for the reasons that we shall
state hereafter we make that permission conditional upon the
fulfilment of certain terms by the concern".
The company contended before the Labour Appellate Tribunal
that its function, while dealing with an application under
section 22 of the 1950 Act, was only to give or withhold
permission. This contention was rejected by the Appellate
Tribunal with the following observation:-
"That view is quite untenable as has been repeatedly held by
this Tribunal. We are the authority to whom an application
has to be made for permission to retrench, and when such an
application is made we must of necessity exercise our
judgment and discretion and satisfy ourselves that when the
company retrenches it does justice by its employees".
The Labour Appellate Tribunal was clearly influenced by the
consideration which, stated in its own words, was as
follows:-
"We do not think that we will be advancing the interest of
the employees or of the concern by refusing
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retrenchment because the case for retrenchment has been
established, and the sooner the workmen are allowed to leave
and find for themselves other employment the better for
them. But in order to assure ourselves that on retrenchment
the employees receive what in justice they should have, we
have decided to give permission to retrench subject to cer-
tain conditions which in our view are inherent under the
Act., and which apart from the Act we consider to be just
and equitable in the particular circumstances of this case".
In this view of the matter the Labour Appellate Tribunal
definitely declined "to leave over the question of
compensation for lay off as a legacy of the present
troubles; the employees to be retrenched have enough to
worry them without having to make claims and have them
decided after contest before a Tribunal". In the result,
the Labour Appellate Tribunal gave the appellant company
permission to retrench "subject to the terms and conditions
of Act XLIII of 1953, provided that each workman is paid at
the rate of half basic wages and dearness allowance for the
whole period from the date of lay off up to the date of
retrenchment (less sums already received as lay off
compensation)". Liberty was given to the company to set off
the lay off compensation protanto against the retrenchment
relief given by the Act.
Aggrieved by this decision the appellant company applied for
and obtained from this Court special leave to appeal against
this order. The respondents subsequently filed an
application for special leave to appeal against this
decision in so far as the Labour Appellate Tribunal had not
allowed their full claim as surmmarised above and in so far
as the names of 17 persons had been struck off on the
allegation of the company that they were not workmen. This
application of the respondents was also acceded to and the
two appeals have been heard together. The Union of India
asked for leave to intervene as important questions of
construction of the provisions of the Industrial Disputes
Act, 1947 (hereinafter referred to as the 1947 Act) and the
1950 Act were involved. Such
1247
leave was granted. and we have heard learned counsel for the
Union of India along with learned counsel for the parties.
The question as to the propriety of permitting the names of
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17 workmen to be struck off from the application has not
been seriously pressed before us. Only two questions have
been canvassed at some length before us, namely-.-
(1)Whether under section 22 of the 1950 Act the Tribunal has
jurisdiction to impose conditions when granting the
permission asked for; and
(2)Whether the conditions imposed in this case are in
conformity with law.
It is plain, however, that in case the first question is
answered in the negative, the second question will not call
for any decision on the present occasion.
In order to correctly answer the questions it will be
necessary to bear in mind the general scheme of the two
Acts. The purpose of the 1947 Act is, inter alia, to make
provision for the investigation and settlement of industrial
disputes. In order to achieve this avowed object different
authorities have been constituted under this Act. Thus
section 3 provides for the constitution of Works Committee
whose duty is to promote measures for securing and
preserving amity and good relations between the employers
and workmen. The appropriate Government is authorised by
section 4 to appoint conciliation officers charged with the
duty of mediating in and promoting the settlement of
industrial disputes and by section 5 to constitute a Board
of Conciliation for promoting the settlement of industrial
disputes. Section 6 empowers the appropriate Government to
constitute a Court of Inquiry for enquiring into any matter
appearing to be connected with or relevant to an industrial
dispute. Finally, section 7 provides for the constitution
of Industrial Tribunals for the adjudication of industrial
disputes in accordance with the provisions of the Act.
Section 10 of this Act provides for reference of disputes to
a Board, Court or Tribunal. It will be noticed that under
this section it is the appropriate 160
1248
Government which alone can make the reference and set the
authority in motion. The procedure, powers and duties of
conciliation officers, Boards, Courts and Tribunals are
elaborately prescribed and defined in sections I 1 to 15.
It is to be noted that the conciliation officer, Board, and
Court are required to make a report to the appropriate
Government while the Tribunal is enjoined to submit its
award to the appropriate Government. The report of a Board
or Court and the award of a Tribunal are under section 17 to
be published by the appropriate Government within a month
from the date of their receipt. Section 17-A provides that
the award of a Tribunal shall become enforceable on the
expiry of 30 days from the date of its publication and,
subject to the provisions of sub-section (1) shall come into
operation from such date as may be specified therein and if
no date is so specified from the date when the award becomes
enforceable as aforesaid. Section 19 prescribes the period
of operation of settlements and awards. Chapter deals with
strikes and lock-outs. Sections 26 to 31 which are grouped
together under the heading "Penalties" prescribe
punishments. Section 31 (I) provides that any employer who
contravenes the provisions of section 33 shall be punishable
with imprisonment for a term which may extend to 6 months or
with fine which may extend to Rs. 1,000 or with both.
Section 33, a contravention of which is made punishable by
section 31, as it stood before 1950, forbade an employer,
during the pendency of any conciliation proceedings or
proceedings before a Tribunal, to alter, to the prejudice of
the workmen concerned in the dispute, the conditions of
service applicable to them immediately before such
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proceedings, nor, save with the express permission of the
conciliation officer, Board or Tribunal, as the case may be,
to discharge, dismiss or otherwise punish during the
pendency of the proceedings any workman, except for
misconduct not connected with the dispute. It may be noted
that under this section the ban on the alteration of the
conditions of service was absolute and that permission was
necessary only in case of discharge or dismissal or
1249
punishment and even in such case no permission was necessary
when the workman was guilty of misconduct not concerned with
the pending dispute. The Only deterrent against a
contravention by an employer of the provisions of section 33
was the prosecution of the employer under section 31. This
was hardly any consolation for the workmen, for if an
employer took the risk of a prosecution and acted in contra-
vention of section 33 the workmen could only raise an
industrial dispute and ask the appropriate Government to
refer the same to a Tribunal but if the Government declined
to accede to their prayer the workmen were without any
remedy. This was the position under the 1947 Act before it
was amended in 1950.
The 1950 Act was enacted for establishing an Appellate
Tribunal in relation to industrial disputes. Chapter II of
the Act deals with the constitution, composition and
functions of the appellate tribunal. Section 7 formulates
the jurisdiction of the appellate tribunal. Section 9
confers on the appellate tribunal all the powers which are
vested in a Civil Court when hearing an appeal under the
Code of Civil Procedure, 1908. Section 10 prescribes the
period of limitation within which appeals are to be brought
before the appellate tribunal. Under section 15 the
decision of the appellate tribunal becomes enforceable on
the expiry of 30 days from the date of its pronouncement,
provided that where the appropriate Government is of opinion
that it would be inexpedient, on public grounds, to give
effect to the whole or any part of the decision the
appropriate Government may, before the expiry of the said
period of 30 days, by order in the Official Gazette either
reject the decision or modify it. Section 22 of this Act
provides:
"22. During the period of thirty days allowed for the
filing of an appeal under section 10 or during the pendency
of any appeal under this Act, no employer sball-
(a) alter, to the prejudice of the workmen concerned in
such appeal, the conditions of service applicable to them
immediately before the filing of such appeal, or
1250
(b)discharge or punish, whether by dismissal or otherwise,
any workmen concerned in such appeal, save with the express
permission in writing of the Appellate Tribunal".
Section 23 on which reliance is placed by learned counsel
for the respondents and for the intervener,
reads as follows:-
"23. Where an employer contravenes the provisions of
section 22 during the pendency of proceedings before the
Appellate Tribunal, any employee aggrieved by such
contravention, may make a complaint in writing, in the
prescribed manner to such Appellate Tribunal and on receipt
of such complaint, the Appellate Tribunal shall decide the
complaint as if it were an appeal pending before it, in
accordance with the provisions of this Act and shall
pronounce its decision thereon and the provisions of this
Act shall apply accordingly".’
Section 29 of this Act provides for penalty for con-
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travention of the provisions of section 22, namely,
imprisonment for a term which may extend to six months, or
with fine which may extend to one thousand rupees, or with
both. From what has been stated so far four things are to
be noted, namely, (i) that the ordinary and primary
jurisdiction of the appellate tribunal is appellate, (ii)
that section 22 of this Act confers on the appellate
tribunal a special jurisdiction which is in the nature of
original jurisdiction, (iii) that section 23 also vests in
the tribunal an additional jurisdiction to decide the
complaint as if it were an appeal pending before it; and
(iv) that section 23 confers on the workmen an additional
remedy which they did not have under the 1947 Act.
To fill up the lacuna in the 1947 Act section 34 of the 1950
Act provided for certain amendments of the 1947 Act.
Amongst other things, it substituted a new section for the
old section 33 of the 1947 Act. The new section 33 runs as
follows--
"33. During the pendency of any conciliation proceedings or
proceedings before a Tribunal in respect of any industrial
dispute, no employer- shall-
1251
(a)alter, to the prejudice of the workmen concerned in such
dispute, the conditions of service applicable to them
immediately before the commencement of such proceedings; or
(b)discharge or punish, whether by dismissal or otherwise,
any workman concerned in such dispute, save with the express
permission in writing of the conciliation officer, Board or
Tribunal, as the case may be".
It will be noticed that this section has made several
changes. Thus under this section provision is made for
obtaining permission as a condition precedent both for
altering the conditions of service and for discharging or
punishing the workmen and no exception is made for a case of
misconduct unconnected with the pending dispute. Besides
this, the following new section was added to the 1947 Act as
section 33-A:
"33-A. Where an employer contravenes the provisions of
section 33 during the pendency of proceedings before a
Tribunal, any employee aggrieved by such contravention, may
make a complaint in writing, in the prescribed manner to
such Tribunal and on receipt of such complaint that Tribunal
shall adjudicate upon the complaint as if it were a dispute
referred to or pending before it, in accordance with the
provisions of this Act and shall submit its award to the
appropriate Government and the provisions of this Act shall
apply accordingly".
It may be pointed out that the new sections 33 and 33-A thus
inserted into the 1947 Act confer distinct benefits on the
workmen and give some additional jurisdiction and power to
the authorities mentioned therein. Section 33-A enjoins the
Tribunal to decide the complaint "as if it were a dispute
referred to or pending before it" and to submit its award to
the appropriate Government and provides that the provisions
of the Act shall apply to the award. It is quite clear that
the provisions of these two new sections 33 and 33-A of the
1947 Act correspond to and are in pari materia with the
provisions of sections 22 and 23 of the 1950 Act and are
more or less in similar terms. The question for our
conside-
1252
ration is: What are the meaning, scope and effect of these
sections.
A cursory perusal of section 33-A of the 1947 Act as well as
section 23 of the 1950 Act will at once show that it is the
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contravention by the employer of the provisions of section
33 in the first case and of section 22 in the second case
that gives rise to a cause of action in favour of the
workmen to approach and move the respective authority named
in the section and this contravention is the condition
precedent to the exercise by the authority concerned of the
additional jurisdiction and powers conferred on it by the
sections. The authority referred to in the sections is, as
we have seen, a Court of limited jurisdiction and must
accordingly be strictly confined to the exercise of the
functions and powers actually conferred on it by the Act
which constituted it. What, then, are the scope and ambit
of the functions and powers with which it has been vested by
these sections?
When an employer contravenes the provisions of section 33 of
the 1947 Act or of section 22 of the 1950 Act the workmen
affected thereby obviously have a grievance. That grievance
is two-fold. In the first place it is that the employer has
taken a prejudicial action against them without the express
permission in writing of the authority concerned and thereby
deprived them of the salutary safeguard which the
legislature has provided for their protection against
victimisation. In the second place, and apart from the
first grievance which may be called the statutory grievance,
the workmen may also have a grievance on merits which may be
of much more seriousness and gravity for them, namely, that
in point of fact they have been unfairly dealt with in that
their interest has actually been prejudicially affected by
the highhanded act of the employer. These sections give the
workmen the right to move the authority by lodging a
complaint before it. This is a distinct benefit given to
them, for, as we have seen, apart from these sections, the
workmen have no right to refer any dispute for adjudication.
This complaint is required to be made in the prescribed
manner. Form DD prescribed by rule 51-A of the Industrial
1253
Disputes (Central) Rules, 1947, framed under section 38 of
the 1947 Act, like Form E prescribed under section 35 of the
1950 Act, requires the complaining workmen to show in their
petition of complaint not only the manner in which the
alleged contravention has taken place but also the grounds
on which the order or the act of the management is
challenged. This clearly indicates that the authority to
whom the complaint is made is to decide both the issues,
namely (1) the fact of contravention and (2) the merits of
the act or order of the employer. It is also clear that
under section 33-A of the 1947 Act the authority is to
adjudicate upon the complaint "as if it were a dispute
referred to or pending before it" and under section 23 of
the 1950 Act the authority is to decide the complaint "as if
it were an appeal pending before it". These provisions
quite clearly indicate that the jurisdiction of the
authority is not only to decide whether there has been a
failure on the part of the employer to obtain the permission
of the authority before taking action but also to go into
the merits of the complaint and grant appropriate reliefs.
The extreme contention that under section 33-A of the 1947
Act, on a finding that there has been a contravention of the
provisions of section 33, the Tribunal’s duty is only to
make a declaration to that effect, leaving the workmen to
take such steps under the Act as they may be advised to do,
has been negatived by the Labour Appellate Tribunal in
Serampore Belting Mazdoor Union v. Serampore Belting Co.,
Ltd.(1) and by the Bombay High Court in Batuk K. Vyas v.
Surat Borough Municipality(1). The same principle has been
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accepted and applied by a Full Bench of the Labour Appellate
Tribunal to a case under section 23 of the 1950 Act in Raj
Narain v. Employers’ Association of Northern India(1). We
find ourselves in agreement with the construction placed
upon section 33-A of the 1947 Act and section 23 of the 1950
Act by these decisions. In our view the scope and ambit of
the jurisdiction conferred on the authority named in those
(1) (1951) 2 Lab. L.J. 341.
(2) [1952] 54 Bom. L.R. 922.
(3) [1962] 1 Lab. L.J. 381,
1254
sections is wider than that conferred on the Criminal Court
by section 31 of the 1947 Act and section 29 of the 1950
Act. The Criminal Court under the two last mentioned
sections is only concerned with the first issue herein
before mentioned, namely, yea or nay whether there has been
a contravention of the respective provisions of the sections
mentioned therein, but the authority exercising jurisdiction
under section 33-A of the 1947 Act and section 23 of the
1950 Act is to adjudicate upon or decide the complaint "as
if it were a dispute referred to or pending before it" in
the first case or "as if it were an appeal pending before
it" in the second case. The authority is, therefore,
enjoined to go into the merits of the act complained of
under section 33-A of the 1947 Act and section 23 of the
1950 Act. In this sense the jurisdiction of the authority
named in these two sections is certainly wider than that of
the Criminal Court exercising jurisdiction under the penal
sections referred to above. Having regard to the scope of
the enquiry under section 33-A of the 1947 Act and section
23 of the 1950 Act it must follow that the power of the
authority to grant relief must be co-extensive with its
power to grant relief on a reference made to it or on an
appeal brought before it, as the case may be. The provision
that the authority concerned must submit its award to the
appropriate Government and that the provisions of the
respective Acts would be applicable thereto also support the
view that the decision of the authority is to partake of the
nature of a decision on the merits of an industrial dispute
which when published by the appropriate Government will
become enforceable under the- respective Acts. It follows,
therefore, that the authority referred to in these sections
must have jurisdiction to do complete justice between the
parties relating to the matters in dispute and must have
power to give such relief as the nature of the case may
require and as is also indicated by the prayer clause
mentioned in the two Forms DD and E referred to above. In
short, these two sections give to the workmen a direct right
to approach the Tribunal or Appellate Tribunal for the
1255
redress of their grievance without the intervention of the
appropriate Government which they did not possess before
1950 and they provide for speedy determination of disputes
and avoid multiplicity of proceedings by giving complete
relief to the workmen in relation to their grievances
arising out of the action taken by the employer in
contravention of the provisions of the relevant sections.
It is significant that this jurisdiction or power has been
vested in the Tribunal or Appellate Tribunal whose normal
duty is to decide or adjudicate upon industrial disputes and
not on any conciliation officer or Board who are normally
charged with the duty of bringing about settlement of dis-
putes.
it is submitted by learned counsel for the Respondents and
of the intervener that the scope of section 33 of the 1947
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Act and of section 22 of the 1950 Act is precisely the same
as that of section 33-A of the 1947 Act and section 23 of
the 1950 Act. The argument is that the two last mentioned
sections were enacted only in order to afford an opportunity
to the workmen to do what they had been prevented from doing
at the earlier stage by reason of the employer taking the
law into his own hands and taking action against them
without previously obtaining the sanction of the appropriate
authority to do so. If the law permits the workmen to
ventilate their grievances at a later stage under section
33-A of the 1947 Act and section 23 of the 1950 Act there
can be no logical reason why the law should not permit them
to do so at the earlier stage under section 33 of the 1947
Act and section 22 of the 1950 Act. It is submitted that
the purpose of labour legislation being to maintain
industrial peace and restore amity and goodwill between the
employer and his workmen, it should be the attempt of the
Tribunal or the Appellate Tribunal at every stage to try to
resolve all disputes which are connected with the matter
which is brought before it. Finally, it is urged that
whenever an authority is vested with the power to do or not
to do an act it must be regarded as having a discretion and
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1256
that in exercise of such discretion the authority must be
presumed to be vested with power to impose suitable
conditions. Reliance is placed on the decision in The Queen
v. County Council of West Riding of Yorkshire(1). The
argument is that the authority concerned may under section
33 of the 1947 Act and section 22 of the 1950 Act grant by
way of imposing conditions the same relief which it can
grant to the workmen under section 33-A of the 1947 Act and
section 23 of the 1950 Act. We are unable to accept this
contention as correct for reasons which we now proceed to
state.
The object of section 22 of the 1950 Act like that of
section 33 of the 1947 Act as amended is to protect the
workmen concerned in disputes which form the subject-matter
of pending proceedings against victimisation by the employer
on account of their having raised industrial disputes or
their continuing the pending proceedings. It is further the
object of the two sections to ensure that proceedings in
connection with industrial disputes already pending should
be brought to a termination in a peaceful atmosphere and
that no employer should during the pendency of those pro-
ceedings take any action of the kind mentioned in the
sections which may give rise to fresh disputes likely to
further exacerbate the already strained relation between the
employer and the workmen. To achieve this object a ban has
been imposed upon the ordinary right which the employer has
under the ordinary law governing a contract of employment.
Section 22 of the 1950 Act and section 33 of the 1947 Act
which impose the ban also provide for the removal of that
ban by the granting of express permission in writing in
appropriate cases by the authority mentioned therein. The
purpose of these two sections being to determine whether the
ban should be removed or not, all that is required of the
authority exercising jurisdiction under these sections is to
accord or withhold permission. And so it has been held-we
think rightly-by the Labour Appellate Tribunal in Carlsbad
Mineral Works Co. Ltd. v. Their
(1) [1S96] 2, Q.B. 386.
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Workmen(1) which was a case under section 33 of the 1947
Act. Even a cursory persual of section 33 of the 1947 Act
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will make it clear that the purpose of that section was not
to confer any general power of adjudication of disputes. It
will be noticed that under section 33 of the 1947 Act the
authority invested with the power of granting or withholding
permission is the conciliation officer, Board or Tribunal.
The conciliation officer or the Board normally has no power,
under the 1947 Act, to decide any industrial dispute but is
only charged with the duty of bringing about a settlement of
dispute. It is only the Tribunal which can by its award
decide a dispute referred to it. ’Section 33 by the same
language confers jurisdiction and power on all the three
authorities. Power being thus conferred by one and the same
section, it cannot mean one thing in relation to the
conciliation officer or the Board and a different and larger
thing in relation to the Tribunal. There is no reason to
think that the legislature, by a side wind as it were,
vested in the conciliation officer and the Board the
jurisdiction and power of adjudicating upon disputes which
they normally do not possess and which they may not be
competent or qualified to exercise. Further, if the purpose
of the section was to invest all the authorities named
therein with power to decide industrial disputes one would
have expected some provision enabling them to make and
submit an award to which the provisions of the Act would
apply such as is provided in section 33-A of the 1947 Act or
section 23 of the 1950 Act. There is no machinery provided
in section 33 of the 1947 Act or section 23 of the 1950 Act
for enforcing the decision of the authority named in those
sections. This also indicates that those sections only
impose a ban on the right of the employer and the only thing
that the authority is called upon to do is to grant or
withhold the permission, i.e. to lift or maintain the ban.
And so it has been held by this Court in Atherton West &
Co., Ltd. v. Suti Mill Mazdoor Union(1) which was a case
under clause 23 of the U. P. Government Notification quoted
on p. 785.
(1) [1953] 1 Lab. L.J. 85.
(2) [1953] S.C.R, 780, 786-7,
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Section 22 of the 1950 Act is in pari materia with section
33 of the 1947 Act and the above clause 23 of the U. P.
Government Notification and most of the considerations noted
above in connection with these provisions apply mutatis
mutandis to section 22 of the 1950 Act. Imposition of
conditions is wholly collateral to this purpose and the
authority cannot impose any condition. And it has been so
held-we think correctly-in G. C. Bhattacharji v. Parry &
Co., Ltd., Calcutta(1). In view of the scheme of these Act
summarised above and the language of these sections the
general principle laid down in the case of The Queen v.The
County Council of West Riding supra can have no application
to a case governed by these sections. In our judgment
the Labour Appellate Tribunal was in error in holding
that it had jurisdiction to impose conditions as a
prerequisite for granting permission to the company to
retrench its workmen and the first question must be answered
in the negative.
In the view we have taken on the first question we do not
consider it necessary on this occasion to express any
opinion on the other question canvassed before us.
The result, therefore, is that this appeal is allowed and
the decision of the Labour Appellate Tribunal is set aside
and the matter is remanded to the Labour Appellate Tribunal
to deal with the application of the company and make the
appropriate order according to law. In the circumstances of
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this case we make no order as to costs. Appeal No. 4 of
1955 is dismissed also without costs.
(1) [1954] 2 Lab. L.J. 635.
1259