Full Judgment Text
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PETITIONER:
THE UNITED COMMERCIAL BANK LTD.
Vs.
RESPONDENT:
THEIR WORKMEN(and other cases)UNION OF INDIA--Intervener.
DATE OF JUDGMENT:
09/04/1951
BENCH:
KANIA, HIRALAL J. (CJ)
BENCH:
KANIA, HIRALAL J. (CJ)
FAZAL ALI, SAIYID
SASTRI, M. PATANJALI
MAHAJAN, MEHR CHAND
DAS, SUDHI RANJAN
BOSE, VIVIAN
MUKHERJEA, B.K.
CITATION:
1951 AIR 230 1951 SCR 380
CITATOR INFO :
F 1956 SC 746 (4)
D 1989 SC1899 (27)
ACT:
Industrial Disputes Act (XIV of 1947), ss. 7, 8, 12,
16--Rules under the Act, R. 5--Constitution of Tribunal of
three members-Absence of one of three members on other
duty--Absent member rejoining after some time--Validity of
awards made during his absence by the two remaining members,
and by all of them alter he rejoined--Construction and
effect of ss. 7, 8, 12 and Rule 5.
HEADNOTE:
The Central Government constituted an Industrial Tribu-
nal under the Industrial Disputes Act, 1947, consisting of
A, B, and C
381
for deciding certain disputes and the Tribunal commenced its
sittings in September, 1949. On the 23rd November, 1949,
the services of C were placed at the disposal of the Minis-
try of External Affairs as a member of the Indo-Pakistan
Boundary Disputes Tribunal, and the two remaining members,
after an objection raised by one side, continued to sit and
hear the disputes. On the 20th February, 1950, C returned
from the Boundary Disputes Tribunal and began to sit again
with the other two members and hear the further proceedings
in the case of disputes which were part heard and not
finally decided on that date. On the 20th May, 1950, the
Government issued a notification that C had" resumed charge
of his duties as a member of the All India Industrial Tribu-
nal". Some awards were made by A and B before the 20th
February, 1950, and some awards were made after that date by
A, B and C together.
Held, per KANIA, C.J., MEHR CHAND MAHAJAN, DAS and
Bose JJ. (FAZL ALI and PATANJALI SASTRI JJ. dissenting) :--
(i) when C was appointed as a member of the Boundary
Disputes Tribunal, his services "ceased to be available" and
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there arose "a vacancy" within the meaning of Sec. 8 of the
Industrial Disputes Act;
(ii) under the said section read with Rule 5 of the
Industrial Disputes Rules, when a vacancy occurred it was
obligatory on the Government to notify its decision as to
whether it intended to fill up the vacancy or not, and if
the Government decided not to fill up the vacancy, a notifi-
cation under Sec. 7 of the Act was essential to constitute
the remaining members a Tribunal inasmuch as a Tribunal of
three members is a different Tribunal altogether from a
Tribunal consisting of two of them only;
(iii) neither the fact that C began to sit again along
with the two other members from the 20th. February, 1950,
nor the notification of the 20th May, 1950, stating that C
had "resumed charge of his duties as a member" of that
Tribunal could be treated as an appointment to the vacancy
created on C’s appointment as a member of the Boundary
Disputes Tribunal;
(iv) awards made by A and B after the services of C
ceased to be available, and awards made after the 20th
February, 1950, by A, B and C were not made by a Tribunal
duly constituted under the Act and were void;
(v) since the two remaining members were not a duly
constituted Tribunal and the duty to work and decide was the
joint responsibility of all the three members who originally
constituted the Tribunal, the matter was one 01 absence of
jurisdiction and not a mere irregularity in the conduct of
proceedings, and the defect could not be cured by acquies-
cence or estoppel.
382
Per FAZL ALI and PATANJALI SASTRI JJ. (contra)--There
was a ’vacancy’ within the meaning of Sec. 8 of the Act when
the services of C were placed at the disposal of the Bound-
ary Disputes Tribunal, which provided an occasion for the
Government to exercise the discretion vested in it under
Sec. 8 of the Act to fill up the vacancy or not. The fact
that the Government decided not to fill up the vacancy,
could not render the Tribunal an imperfectly constituted
Tribunal, and the proceedings could validly be continued
before the Tribunal in spite of the vacancy. Further, since
the vacancy was a temporary one and was not filled up, C did
not cease to be a member of the Tribunal and could therefore
rejoin it as soon as he was free from the duties of his new
office. Even if it be assumed that it was necessary for the
Government to make an appointment under Sec. 8 (1), the
requirements of that section were complied with, when C
joined under the orders of the Government and that fact was
also notified by the Government on the 20th May, 1950. Rule
5 of the Industrial Disputes Rules applies only when a
Tribunal is initially constituted. It does not apply to
appointments to fill vacancies.
Per MUKHERJEA J.--An Industrial Tribunal can be consti-
tuted only in accordance with the provisions of Sec. 7 of
the Industrial Disputes Act and unless a Tribunal is proper-
ly constituted, it cannot be invested with jurisdiction to
adjudicate on industrial disputes. Under sub-sec. (2) of
Sec. 7, the number of members constituting the Tribunal has
to be determined by the appropriate Government and a change
in the number of members could be made therefore only in
pursuance of the provision contained in that sub-section.
As Sec. 8 does not lay down that, in case the services of a.
member of the Tribunal cease to be available and the Govern-
ment does not choose to make a new appointment in his place,
the remaining members should continue to form the ’tribunal,
the constitution or reconstitution of the remaining members
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as a Tribunal could be made only under Sec. 7 of the Act and
as there was n9 notification by the appropriate Government
under Sec. 7 constituting the two remaining members a Tribu-
nal under the Act during the absence of C, the proceedings
before these two members and the awards made and signed by
them only during C’s absence were void. But, there was no
necessity for a fresh notification and a fresh constitution
of the Tribunal when the absent member returned as the
original notification was still there unaltered and unamend-
ed, and by virtue of this notification alone, the three
members would be competent to sit as a Tribunal and dis-
charge its duties. The Tribunal was thefore, properly
constituted from the 20th February, 1950, and the awards
made by all the three members after that date were not void
for want of jurisdiction in the Tribunal.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Appeals by special
leave against an Award dated 31st July, 1950,
383
of the All India Industrial Tribunal (Bank Disputes): Civil
Appeals Nos. 35 to 50 of 1951. The facts of the case and
the arguments of Counsel appear in the judgment.
C.K. Daphtary (R. J. Kolah, with him)for the appellants
in Civil Appeals Nos. 35, 36 and 37.
Jamshedji Kanga (R. J. Kolah with him) for the appel-
lant in Civil Appeal No. 38.
S. Chaudhuri (G. C. Mathur, with him) for the appellants
in Civil Appeals Nos. 41, 43, 44, 45, 46 and 49.
S. Chaudhuri (S.N. Mukherjee, with him) for the appel-
lants in Civil Appeals Nos. 48 and 50.
R.J. Kolah, for the appellants in Civil Appeals Nos. 39,
40 and 42.
Ram Lal Anand (Charan Das Puri, with him) for the appel-
lant in Civil Appeal No. 47.
A.C. Gupta (M.M. Sen and R.K. Banerji, with him) for the
respondents in Civil Appeals Nos. 35, 36, 40, 41, 42, 43 and
44,
M.M. Sen for the respondents in Civil Appeals Nos. 37,
39, 45 and 46.
Niren De (B.K. Chaudhary with him) for the respondents
in Civil Appeals Nos. 38 and 50.
T.R. Bhasin for the respondents in Civil Appeals Nos. 48
and 49.
M.C. Setalvad, Attorney-General for India. Sikri, with
him) for the Intervener (Union of India) in Civil Appeal No.
as.
1951. April 9. The judgment of Kania C.J, Mehr Chand
Mahajan, S.R. Das and Vivian Bose JJ. was delivered by Kania
C.J., Fazl Ali, Patanjali Sastri and Mukherjea JJ. delivered
separate judgment s,
KANIA C.J.--In these appeals the question whether the
Industrial Tribunal (Bank Disputes) had jurisdiction to make
the awards has been directed by the Court to be tried as a
preliminary issue. ’the decision depends on the true con-
struction of sections 7, 8, 15 and 16 of the Industrial
Disputes Act. On
384
this question, the agreed statement of facts shows that by a
notification of the Government of India dated the 13th June,
1949, the Central Government constituted an Industrial
Tribunal ’for the adjudication of industrial disputes in
banking companies consisting of Mr. K.C. Sen, chairman, Mr.
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S.P. Varma and Mr. J.N. Mazumdar. A second notification
dated the 24th August, 1949, was thereafter issued as
follows :"In exercise of the powers conferred by sub-section
(1) of section 8 of the Industrial Disputes Act, the Central
Government was pleased to appoint Mr. N. Chandrasekhara
Aiyar as a member of the Industrial Tribunal constituted by
the notifications of the Government of India in the Ministry
of Labour dated the lath June, 1949, in the place of Mr.
S.P. Varma whose services have ceased to be available." The
Tribunal commenced its regular sittings at Bombay from the
12th to the 16th of September, 1949. It thereafter sat at
Delhi and Patna between the 19th September, 1949, and 3rd
April, 1950. Further sittings were held, at some of which
Mr. Mazumdar was absent on various dates and Mr. Chandrasek-
hara Aiyar was absent from the 23rd November, 1949, to the
20th of February, 1950, as his services were placed at the
disposal of the Ministry of External Affairs as a member of
the Indo-Pakistan Boundary Disputes Tribunal. Between the
23rd November, 1949, and 20th February 1950, Mr. Sen and Mr.
Mazumdar together sat at several places and made certain
awards. Those awards have been accepted by the Government
under section 15 of the Act and published in the Gazette as
the awards of the Tribunal. The Tribunal held its sittings
in Bombay to hear general issues from the 16th January,
1950, and concluded them on the 3rd April, 1950. In the
agreed statement of facts, it is stated that the services of
Mr. Chandrasekhara Aiyar were not available to the Tribunal
from the afternoon of 23rd November, 1949, to the forenoon
of 20th February, 1950. From the 16th January, 1950, up to
20th February, 1950, several matters, particularly including
15 items covering, inter alia, Issues 1, 2, 3, 4, 15, 23,
27, 28, 33, 34, 37
385
and dealing with the question of the jurisdiction of the
Tribunal in respect of officers regarding banks having
branches in more than one Province and banks in liquidation,
question of retrospective effect to be given to the award,
question relating to provident and guarantee fund and allow-
ances to special categories of workmen, were dealt with by
the Tribunal. From the notes of the proceedings of the
Tribunal it appears that as numerous banks and workmen were
parties to the proceedings, some workmen who had not found
it convenient to attend throughout appeared and put forth
their views in respect of the aforesaid issues and questions
after Mr. Chandrasekhara Aiyar started his work from the
afternoon of the 20th February, 1950, again by sitting with
Mr. Sen and Mr. Mazumdar.
The jurisdiction of the Tribunal of the aforesaid three
persons to make the award is disputed on two grounds: (1)
That when Mr. Chandrasekhara Aiyar’s services ceased to be
available, as mentioned in the agreed statement of facts,
the remaining two members had to be re-appointed to consti-
tute a Tribunal. (2) That when Mr. Chandrasekhara Aiyar
began to sit again with Mr. Sen and Mr. Mazumdar from the
forenoon of 20th February, 1950, it was imperative to issue
a notification constituting a Tribunal under section 7 of
the Industrial Disputes Act. The argument is that in the
absence of Mr. Chandrasekhara Aiyar the two members had no
jurisdiction to hear anything at all without the appropriate
notification and that Mr. Chandrasekhara Aiyar’s services
having ceased to be available on the 23rd of November, 1949.
he cannot sit again with the other two members to form the
Tribunal in the absence of a notification under section 7.
In order to appreciate the correct position, it is
necessary to consider the scheme of the Industrial Disputes
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Act. It envisages the establishment of a Conciliation Board,
a Court of Inquiry and a Tribunal for adjudication. Rele-
vant portions of sections 5, 6, 7, 8, 15 and 16 of the Act
which only are material for the present discussion run as
follows: --
50
386
5. (1) "The appropriate Government may as occasion
arises by notification in the official Gazette constitute a
Board of Conciliation for promoting the settlement of an
industrial dispute.
(2) A Board shall consist of a chairman and two or four
other members, as the appropriate Government
thinks fit.
(3) The chairman shall be an independent person and the
other members shall be persons appointed in equal numbers to
represent the parties to the dispute and any person appoint-
ed to represent a party shall be appointed on the recommen-
dation of that party:
*
(4) A Board, having the prescribed quorum, may act
notwithstanding the absence of the chairman or any of its
members or any vacancy in ifs number.
Provided that if the appropriate Government notifies the
Board that the services of the chairman or any other member
have ceased to be available, the Board shall not act until a
new chairman or member, as the case may be, has been ap-
pointed."
6. (1) "The appropriate Government may as occasion
arises by notification in the official Gazette constitute a
Court of Inquiry for inquiring into any matter appearing to
be connected with or relevant to an industrial dispute.
(2) A Court may consist of one independent person or of
such number of independent persons as the appropriate
Government may think fit and where a Court consists of two
or more members, one of them shall be appointed as the
chairman.
(3) A Court, having the prescribed quorum, may act
notwithstanding the absence of the chairman or any of its
members or any vacancy in its number.
Provided that, if the appropriate Government noti-
fies the Court that the services of the chairman have ceased
to be available, the Court shall not act until a new chair-
man has been appointed."
7. (1) "The appropriate Government may constitute one
or more Industrial Tribunals for the
387
adjudication of industrial disputes in accordance with the
provisions of this Act.
(2) A Tribunal shall consist of such number of members
as the appropriate Government thinks fit. Where the Tribunal
consists of two or more members, one of them shall be ap-
pointed as the chairman.
(3) Every member of the Tribunal shall be an independent
person,
(a) who is or has been a Judge of a High Court or a
District Judge, or
(b) is qualified for appointment as a Judge of a High
Court:
Provided that the appointment to a Tribunal of any
person not qualified under part (a) shall be made in consul-
tation with the High Court of the Province in which the
Tribunal has, or is intended to have, its usual place of
sitting."
8. (1) "If the services of the chairman of a Board or
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the chairman or other member of a Court or Tribunal cease to
be available at any time, the appropriate Government shall
in the case of a chairman, and may in the case of any other
member, appoint another independent person to fill the
vacancy, and the proceedings shall be continued before the
Board, Court or Tribunal so reconstituted.
(2) Where a Court or Tribunal consists of one person
only and his services cease to be available the appropriate
Government shall appoint another independent person in his
place, and the proceedings shall be continued before the
person so appointed.
(3) Where the services of any member of a Board other
than the chairman have ceased to be available, the appropri-
ate Government shall appoint in the manner specified in
sub-section (3) of section 5 another person to take his
place, and the proceedings shall be continued before the
Board so reconstituted."
15. (1) "Where an industrial dispute has been referred
to a Tribunal for adjudication, it shall hold its proceed-
ings expeditiously and shall, as soon as
388
practicable on the conclusion thereof, submit its award
to the appropriate Government.
(2) On receipt of such award, the appropriate
Government shall by order in writing declare the
award to be binding:
*
(4) Save as provided in the proviso to sub-section (3)
of section 19, an award declared to be binding under this
section shah not be called in question in any manner."
16. "The report of a Board or Court and the award of a
Tribunal shall be in writing and shall be signed by all the
members of the Board, Court or Tribunal, as the case may be:
Provided that nothing in this section shall be deemed to
prevent any member of the Board, Court or Tribunal from
recording a minute of dissent from a report or award from
any recommendation made therein."
Confining our attention to the aspect of absence of
members at the sittings of the different bodies and what
results follow therefrom, it is clear that under section 5
(4) when a member of a Board of Conciliation is absent or
there is a vacancy, the Board is permitted to act, notwith-
standing such absence, provided there is the prescribed
quorum. Such quorum is fixed by the rules framed under the
Act. According to the proviso to this sub-section however,
if the appropriate Government notifies the Board that the
services of the chairman or any other member have ceased to
be available, the Board shall not act until a new chairman
or a member, as the case may be, has been appointed. Read-
ing these two parts together, it is therefore clear that a
distinction is drawn between the situation arising from the
absence of the chairman or any of its members and a vacancy
in the Board, and the position when the Government has
intimated that the services of a chairman or member have
ceased to be available. The words "having the prescribed
quorum" put a further limitation on the right of the
389
remaining members of the Board to act, when all of them are
not acting together. The proviso thus makes it clear that
when the services of a chairman or member have ceased to be
available and that fact has been notified to the Board by
the appropriate Government, the remaining members have no
jurisdiction to act in the name of the Board. Thus all the
contingencies of temporary or casual absence, as well as
permanent vacancy, and the contingency of the chairman or a
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member’s services having ceased to be available are con-
templated and provided for. In the same way and in the same
terms, provision is made in respect of the Court of In-
quiry in section 6 (3). The provisions as regards the
Tribunal are found in section 7. No other section deals
with the establishment of the Tribunal. The first clause
empowers the appropriate Government to constitute one or
more industrial tribunals having the functions allotted to
it under the Act. Sub clause (2) provides that a Tribunal
shall consist of such number of members as the appropriate
Government thinks fit. This clause therefore authorizes
the appropriate Government to fix the number of members
which will constitute the Tribunal. Sub-clause (3) and the
proviso deal with the qualifications of individuals to be
members with which we are not concerned. Although in this
section there is no provision like sections 5 (1) and 6 (1)
requiring a notification of the constitution of the Tribunal
in the official Gazette, the deficiency is made up by rule 5
of the Industrial Disputes Rules; 1949, framed by the Gov-
ernment under section 38 of the Act. The rule provides that
the appointment of a Board, Court or Tribunal "together with
the names of the persons constituting the Board, Court or
Tribunal’ shall be notified in the official Gazette. It is
therefore obligatory on the appropriate Government to notify
the composition of the Tribunal and also the names of the
persons constituting the same. In respect of a Tribunal
which is entrusted with the work of adjudicating upon dis-
putes between employers and employees which have not been
settled otherwise, this provision
390
s absolutely essential. It cannot be left in doubt to
the employers or the employees as to who are the persons
authorized to adjudicate upon their disputes. This is also
in accordance with notifications of appointments of public
servants discharging judicial or quasijudicial functions.
The important thing therefore to note is that the number
forming the Tribunal and the hames of the members have both
to be notified in the official Gazette for the proper and
valid constitution of the Tribunal.
It is significant that there is no provision correspond-
ing to section 5 (4) or 6 (3) in section 7. Section 15 of
the Act provides that when an industrial dispute has been
referred to a Tribunal for adjudication, it shall hold its
proceedings expeditiously and as soon as practicable and at
the conclusion thereof submit its award to the appropriate
Government. It is thus clear and indeed it is not disputed
that the tribunal as body should sit together and the award
has to be he result of the joint deliberations of all mem-
bers of he Tribunal acting in a joint capacity. Section 16
requires that all members of the Tribunal shall sign he
award. This again emphasizes that the function of the
Tribunal is joint and it is not open to any member to re-
frain from signing the award. If the award is not signed by
all members it will be invalid is it will not be the award
of the Tribunal.
In the light of the provisions of section 7 the question
arising for consideration is, what was the duty of the
Government when the services of Mr. Chandrashekhara Aiyar
ceased to be available. The two telegrams exchanged between
Mr. Sen and the Government show that the Government took the
view that a vacancy had occurred and they did not think of
filling it up at the time. In the first place, on the true
construction of the Act, was it not obligatory on the Gov-
ernment to notify to the contesting parties that it had
decided not to fill up the vacancy ? Is it open to them to
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leave the parties in doubt in respect of a Tribunal entrust-
ed with the work of adjudicating upon very important dis-
putes between parties ? In our opinion, the whole
391
scheme of the Act leads to the conclusion that the Govern-
ment must notify its decision as to what it desired to do,
i.e., whether it intended to fill up the vacancy or not and
thereupon notify what members were going to constitute the
Tribunal. We are led to that conclusion because a Tribunal
of three consisting of Mr. Sen, Mr. Mazumdar and Mr. Chan-
drasekhara Aiyar is a different tribunal from one consisting
of two, viz., of Mr. Sen and Mr. Mazumdar only.
In this setting, it is next necessary to consider the
words of section 8 on which strong reliance is placed on
behalf of the respondents. The marginal note of that sec-
tion is "filling of vacancies ". The section deals with the
Board, the Court and the Tribunal in its clauses. Under
sub-section (1), the Legislature clearly contemplates that
when the services of a member cease to be available at any
time there will arise a vacancy. This sub-section deals
with the situation in three stages. The first question is,
have the services of a member (and this includes, for the
present discussion,. a chairman)ceased to be available ? If
so, the vacancy having thus arisen, the next question is,
what can be done by the appropriate Government ? If the
vacancy is filled up by making the appointment, the final
question is, how the proceedings shall go on before the
Board, Court or Tribunal so reconstituted ? It was argued on
behalf of the respondents that it was for the appropriate
Government alone to pronounce whether the services of a
member had ceased to be available at any time and that was
not a matter for the decision of the Court. In our opinion,
what is left to the option of the Government is, in case of
the services of a member ceasing to be available, to appoint
or not to appoint. Those stages having passed, the appro-
priate Government, under the section, is obliged to appoint
another person to fill the vacancy, if the vacancy is creat-
ed in respect of a chairman. In respect of the vacancy of a
member’s post, the Government is given the option to appoint
or not to appoint another person. The concluding words of
the sub-section "so reconstituted" clearly relate only to
the contingency of
392
the Government making the appointment of another independent
person in the vacancy. The concluding part of that sub-
section provides for the continuance of the proceedings
before the body so reconstituted. Subsection (2) also pro-
vides that where a court or tribunal consists only of one
person and his services have ceased to be available, on the
appointment of another independent person the proceedings
shall be continued before the person so appointed and it
will not be necessary to start the proceedings from the
beginning before that person. Section 8 (3) provides for
the contingency of the services of a member of a Board not
being available. It requires the appropriate Government to
make the appointment as provided in section 5 (3) and fur-
ther provides that notwithstanding the inclusion of a total-
ly new man in that vacancy, the proceedings shall be contin-
ued before the Board so reconstituted. Reading the three
clauses together, therefore, it is quite clear that the
object of section 8 is to make specific provisions in re-
spect of situations when the Government must or does fill up
vacancies in the event of the services of a member or chair-
man not being available and the consequences of a totally
new man filling up the vacancy. As we read the Act, that is
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the total object and intention of this section. It does not
contemplate the consequences of the Government not making an
appointment where it has the option not to do so. The
emphasis on the words "so reconstituted’’ in sub-sections
(1) and (3) and the concluding words of each of those
clauses clearly bear out this intention of the legislature.
It was argued that although no provision is made in
section 8 (1) about what is to happen if the Government did
not fill up the vacancy, it is implied that in that event
the remaining members can continue the work. We are unable
to accept that argument. In the first place, as pointed out
above, the object of section 8 is to provide in what cases
vacancies must be filled up and how the proceedings should
continue on the vacancy being filled up. It does not deal
at all with the situation arising from the not filling up of
the
393
vacancy by the Government. In this connection the provi-
sions of sections 5 (4) and 6 (a) have been already noted.
When the legislature wanted to provide that in spite of the
temporary absence or permanent vacancy the remaining members
should be authorised to proceed with the work they have made
express provision to that effect. If in the case of a Board
or Court of Inquiry, neither of which is adjudicating any
disputes, such a provision was considered necessary to
enable the remaining members to act as a body, we think that
the absence of such provision in respect of the Tribunal,
which adjudicates on the disputes and whose quasi-judicial
work is admittedly of a joint character and responsibility
leads to the irresistible conclusion that in the absence of
one or more members the rest are not competent to act as a
Tribunal at all. Again the provisos to sections 5 (4) and 6
(3) are important. Under those provisos when the Government
intimates to the remaining members that the services of one
"have ceased to be available" the rest have no right to act
as the Board or Court. It appears under the circumstances
proper to hold that in respect of a Tribunal when the serv-
ices of a member have ceased to be available, the rest by
themselves have no right to act as the Tribunal.
The question which we have got to consider can be divid-
ed in two stages. On the appointment of Mr. Chandrasekhara
Aiyar as a member of the Boundary Tribunal, did his services
cease to be available within the meaning of section 8, and
thereby was a vacancy created? The parties have put before
us only two telegrams exchanged between the chairman and Mr.
Mazumdar on the one hand and the Central Government on the
other, to reach our conclusion about the situation arising
from Mr. Chandrasekhara Aiyar joining the Boundary Tribunal.
Certain Government notifications published ’in May and June,
1950, i.e., over three or four months after Mr. Chandrasek-
hara Aiyar finished his work on the Boundary Tribunal, have
been put before us, but in our opinion these
394
ex post facto notifications cannot help us in deciding the
important question under section 8. It is obvious that, on
the date the appointment of Mr. Chandrasekhara Aiyar as a
member of the Boundary Tribunal was made, it could not have
been known how long that Tribunal would take to complete its
work. In any event, the evidence put before us as of that
date does not show that the appointment was for a short
time. The Boundary Tribunal’s work may have lasted for a
month or a year. Having regard to the urgency and the
necessity of quick disposal of industrial disputes recog-
nised in section 15, the deputation of a member of such a
Tribunal to another Tribunal, whose work may be of an indef-
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inite duration, obviously makes the services of the member
cease to be available to the Industrial Tribunal within the
meaning of section 8 so as to bring about a vacancy. The
later statement in the Government notification of May, 1950,
that Mr. Chandrasekhara Aiyar’s services were lent to the
External Affairs Ministry "from the 23rd of November, 1949,
to the 20th of February, 1950, " appears to be more a noti-
fication for the purpose of the Accountant-General and the
Audit departments of the Government than a disclosure of the
mind of the Government when the appointment was made on the
23rd of November. When Mr. Sen, as chairman, and Mr. Mazum-
dar held their first sitting in the absence of Mr. Chandra-
sekhara Aiyar, an objection was raised about the constitu-
tion of the Tribunal. Thereupon Mr. Sen and Mr. Mazumdar
conveyed to the Government what had happened at the meeting.
The Government was therefore clearly faced with the problem
as to what it wanted to do. The reply telegram from the
Government asked Mr. Sen and Mr. Mazumdar to go on with the
proceedings. It further stated that the Government might
fill up the vacancy later on. The question for considera-
tion is, what is the effect of this telegram of the Govern-
ment ? In the light of the provisions of section 8 that
telegram can only mean that the Government had decided not
to fill up the vacancy. If a vacancy had occurred they had
to make the appointment or state that they will
395
not do so. They cannot defer their decision on the question
of filling up the vacancy and in the interval direct the
remaining members to go on with the reference. That seems
to us to be the correct position because the fundamental
basis on which the Tribunal has to do its work is that all
members must sit and take part in its proceedings jointly.
If a member was casually or temporarily absent owing to
illness, the remaining members cannot have the power to
proceed with the reference in the name of the Tribunal,
having regard to the absence of any provision like section 5
(4) or 6 (3) in respect of the tribunal. The Government had
notified the constitution of this Tribunal by the two
notifications summarized in the earlier part of the judg-
ment and thereby had constituted the Tribunal to consist of
three members and those three were Mr. Sen, Chairman, Mr.
Mazumdar and Mr. Chandrasekhara Aiyar. Proceeding with
the adjudication in the absence of one, undermines the basic
principle of the joint work and responsibility of the Tribu-
nal and of all its members to make the award. Moreover, in
their telegram the Government had not suggested that no
vacancy had occurred. Indeed, they recognised the fact of a
vacancy having occurred but stated that they might make the
appointment later on. If those words are properly construed,
without any outside considerations, it is clear that the
Government intended that the remaining two members of the
Tribunal should proceed with the adjudication as a Tribunal.
This direction in fact was accepted and the two members
proceeded with the reference and made certain awards. Those
awards were sent to the Government under section 15 (2) and
the Government by its order declared the awards to be bind-
ing, and published them in the official Gazette. Those
awards are signed only by Mr. Sen and Mr. Mazumdar. Reading
those awards with the notifications and the provisions of
sections 15 and 16 it is therefore clear that between 23rd
November, 1949, and 20th February, 1950, the Government
’’intended" the tribunal to consist only of Mr. Sen and Mr.
Mazumdar. It was not and
396
cannot be seriously disputed that in the event of the Gov-
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ernment deciding to fill up the vacancy, a notification had
to be issued. The question is, why and under what rule ?
The answer clearly is that they had to do it because of rule
5. The reason why intimation of a new man forming a member
of the Tribunal has to be publicly given, in our opinion,
applies with equal force when a tribunal initially consti-
tuted of three persons, viz., Mr. Sen, Mr. Mazumdar and Mr.
Chandrasekhara Aiyar, is, by the Government decision, as
from a certain date, to be a tribunal of Mr. Sen and Mr.
Mazumdar only. The word "reconstituted" is properly used in
section 8 because when a new member is introduced in the
panel so far performing its duties, it is a reconstitution,
but the words of section 8 do not exclude the obligation on
the Government to issue a notification under rule 5 when
there is not a reconstitution, but a new constitution of the
Tribunal. The Government, however, did not give effect to
its intention by issuing a fresh notification under section
7. Therefore, when the services of Mr. Chandrasekhara Aiyar
ceased to be available and they decided that another inde-
pendent person was not to be appointed to fill the vacancy,
there arose the situation when only two members constituted
the Tribunal and for the constitution of such Tribunal no
notification under section 7 of the Act was issued. To
enable such a Tribunal of two persons to function, under the
provisions of the Act, a notification under section 7 of the
Act, in our opinion, was absolutely essential. The work of
the two members in the absence of such a notification cannot
be treated as the work of a Tribunal established under the
Act and all their actions are without jurisdiction.
It was argued on behalf of the respondents that when
Mr. Chandrasekhara Aiyar left for the Boundary Tribunal,
there arose a temporary absence which it w, as not necessary
to fill up and the remaining two members had jurisdiction
under the Act to proceed with the adjudication. In our
opinion, this contention cannot be accepted. In the first
place, in the agreed statement of facts, it is not stated
that there was any temporary
397
absence. Again, as we have pointed out the Government by its
telegram of the 29th of November accepted the position that
a vacancy had occurred and no question of temporary absence
therefore arises for our consideration. An analogy sought to
be drawn between the temporary absence on leave or on depu-
tation of a Judge is misleading having regard to the fact
that under section 7 the Government has to decide at the
initial stage how many members and who will constitute the
Tribunal and have to notify the same. That step having been
taken, it is not within the power or competence of the
Government to direct a few members only of such Tribunal to
proceed with the adjudication for however short or long time
it be. In our opinion, section 8 has no application to that
situation. In this connection, it may be useful to notice
that under rule 12 it was provided that "when a Tribunal
consists of two or more members, the tribunal may, with the
consent of the parties, act notwithstanding any casual
vacancy in its number ...... "This rule clearly shows that
even when there was a casual vacancy and the remaining
members desired to proceed with the work they could do so
only with the consent of the parties. This rule framed under
section 38 of the Act strongly supports the contention that
if the Act impliedly gave power under section 8 to the
remaining two members of the Tribunal to act, as contended
on behalf of the respondents, there was no necessity at all
for making this rule. Although this rule was repealed on the
3rd of December, it was in operation when the services of
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Mr. Chandrasekhara Aiyar ceased to be available to the
Tribunal as from the 23rd of November. If in the case of
temporary absence, the consent of the parties was essential
to enable the remaining members to act, it certainly follows
that the objection to their working as a ’tribunal when
there is no consent and the absence is not casual, but is
due to the services of one of the members having ceased to
be available, is fatal. It follows therefore that all
awards made by Mr. Sen and Mr. Mazumdar, after the services
of Mr. Chandrasekhara Aiyar ceased to be available, were
398
not made by a tribunal duly constituted under section 7 and
those awards are therefore void.
It was contended that by directing Mr. Chandrasekhara
Aiyar to work again as a member of the Banks Tribunal in
February, 1950, the Government had filled up the vacancy
under section 8. In our opinion this position cannot be
supported on the admitted facts. As regards filling up of a
vacancy under section 8, we have already noticed that by
directing the remaining two members to proceed with the work
and by notifying their awards as the awards of the Tribunal
the Government must be considered to have intended not to
fill up the vacancy. Again, the later notification pub-
lished in June, 1950, does not even state that Mr. Chandra-
sekhara Aiyar was appointed a member of the Tribunal "in any
vacancy." The word used there is "resumed" suggesting there-
by that he had gone out for the time being but had started
the work again. Under the circumstances and in the absence
of any other evidence, we are unable to consider the fact of
Mr. Chandrasekhara Aiyar sitting along with the two members
from and after the 20th February, 1950, as an appointment by
the Government in the vacancy created by his appointment to
the Boundary Tribunal in November, 1949.
At one stage it was suggested that the members of the
Tribunal could delegate their work to a few members only and
the award can be supported in that way. Apart from the
question what work could be so delegated, it was ascertained
that the Rule permitting delegation was first published on
3rd December, 1949, and as Mr. Chandrasekhara Aiyar had gone
to his work on the Boundary Tribunal on 23rd November, no
delegation in that manner was possible. Moreover, the state-
ment of facts nor the award of the three persons suggests
that there was any delegation of work by the Tribunal in the
matter of the general issues to some members only. Nor was
any report made to or considered by the full Tribunal as
required by the rule.
The next question to be considered is the effect of Mr.
Chandrasekhara Aiyar sitting with the two
399
members of the Tribunal after 20th February, 1950. The
record shows that the two members considered most of the
general issues raised in respect of the banks at many meet-
ings. The nature and volume of the work done by them during
this interval has been summarized in the earlier part of the
judgment. It is not contended that on Mr. Chandrasekhara
Aiyar commencing to sit again with the other two members on
and from the 20th February what had happened in his absence
was re-done or re-heard. Mr. Chandrasekhara Aiyar along
with the other two members continued to work from the point
work had proceeded up to 19th February, 1950, and the award
which is put before us is signed by all the three of them,
i.e., on the footing that all the three of them were members
of the Tribunal. It was suggested that Mr. Chandrasekhara
Aiyar should be treated as having remained throughout a
member of the Tribunal of three and that he resumed work
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after a temporary absence between November, 1949, and Febru-
ary, 1950. In our opinion, this position is quite unsupport-
able. When the services of Mr. Chandrasekhara Aiyar ceased
to be available to the Tribunal in November, 1949, and the
Government accepted the position that a vacancy had oc-
curred, Mr. Chandrasekhara Aiyar ceased to be a member of
the Tribunal of three as constituted under the Government
notification of June, 1949. Thereafter Mr. Chandrasekhara
Aiyar never became a member of the Tribunal as he was never
appointed a member before he signed the award. No notifica-
tion making such an appointment under section 7 read’ with
section 8 of the Act has been even suggested to exist. In
the circumstances, the position in law was that Mr. Chandra-
sekhara Aiyar ceased to be a member of the Tribunal of three
as originally constituted, that no new Tribunal of two was
legally constituted and that, having ceased to be a member
of the tribunal of three, Mr. Chandrasekhara Aiyar could not
resume duties as a member of the Tribunal of three without a
fresh constitution of a Tribunal of three. The result is
that all the interim awards purported to be made by Mr. Sen
and Mr. Mazurndar as
400
well as the final awards made by the three must all be held
to have been made without jurisdiction. It seems to us that
the only way in which the Government could have put matters
right was by a notification issued in February, 1950, con-
stituting the tribunal as a fresh Tribunal of three members
(and not by proceeding as if a vacancy had been filled up on
20th February, 1980, under section 8) and the three members
proceeding with the adjudication de novo. Even if the con-
tention of the respondents that Mr. Chandrasekhara Aiyar
continued throughout a member of the tribunal were accepted,
in our opinion, the appellants’ objection to the jurisdic-
tion of the three persons to sign the award must be upheld.
Section 16 which authorizes them to sign is preceded by
section 15. Unless they have complied with the provisions
of section 15, i.e., unless all the three have heard the
matter together, they have no jurisdiction to make the award
in terms of section 18 and have therefore also no jurisdic-
tion to sign the award under section 16. In any view of the
matter the awards are therefore without jurisdiction.
It was suggested that-his signature on the award could
be treated as surplus. In our opinion, this argument re-
quires only to be stated to be rejected. It is not and
cannot be disputed that Mr. Chandrasekhara Aiyar took active
part in the deliberations and in the proceedings after 20th
February, 1950, and naturally discussed and influenced the
decision of the other two members of the Tribunal by such
discussions. This is not a case where an outsider was con-
sulted by the members of a Tribunal and thereafter the
members came to their own independent decision. It is
obvious that for making the award all the three persons
worked together and were jointly responsible for the result-
ant award. The argument of surplusage therefore must fail.
In this view of the matter, the final award put before the
Court is clearly without jurisdiction and the appellants’
contention must be upheld.
The final contention that the sittings in the interval
constituted only an irregularity in the proceedings
401
cannot again be accepted because, in the first place, an
objection was raised about the sitting of the two members as
the Tribunal. That objection, whether it was raised by the
appellants or the other party, is immaterial. The objection
having been overruled, no question of acquiescence or estop-
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pel arises, Nor can consent give a court jurisdiction if a
condition which goes to the root of the jurisdiction has not
been performed or fulfilled. No acquiescence or consent can
give a jurisdiction to a court of limited jurisdiction which
it does not possess. In our opinion, the position here
clearly is that the responsibility to work and decide being
the joint responsibility of all the three members, if pro-
ceedings are conducted and discussions on several general
issues took place in the presence of only two, followed by
an award made by three, the question goes to the root of the
jurisdiction of the Tribunal and is not a matter of irregu-
larity in the conduct of those proceedings. The absence of a
condition necessary to found the jurisdiction to make the
award or give a decision deprives the award or decision of
any conclusive effect. The distinction clearly is between
the jurisdiction to decide matters and the ambit of the
matters to be heard by a Tribunal having jurisdiction to
deal with the same. In the second case, the question of
acquiescence or irregularity may be considered and over-
looked. When however the question is of the jurisdiction of
the Tribunal to make the award under the circumstances
summarized above, no question of acquiescence or consent
can affect the decision.
It was contended that under section 8 the contingency of
the Government not filling up a vacancy is clearly visual-
ized. It is also provided in the section that in the event
of a vacancy the Government may fill it up by appointing a
new man and in such a case the proceedings need not start
afresh. It was argued that nothing more had happened in the
present case and therefore no question of invalidity of the
awards arises. We are unable to accept these contentions.
In the first place, when Government decides not to fill up
402
a vacancy its decision has to be notified. It is not a
matter of the Government’s internal administration where the
officers can work under departmental orders. Moreover it
should be noticed that when the services of a member cease
to be available and that fact is conveyed to the rest of the
members under sections 5 (4) and 6 (3), the rest have no
right to act as a Body at all. The wording of section 7 or
8, in our opinion, does not permit the remaining members of
a Tribunal to have a higher right in the absence of a proper
new notification issued under section ? of the Act. As
regards the second Contention, it should be noticed that the
Government is given the option to make an appointment when a
vacancy occurs, and section 8 provides that if a new man is
appointed in the vacancy the proceedings need not start de
novo. That however does not mean that the Government must
appoint a man in every case of vacancy and the proceedings
must go on without commencing the same afresh. It appears
that the option is left to Government having regard to the
stage to which the proceedings may have reached. Suppose
only after some preliminary work of a data finding nature is
done a vacancy occurs, the Government may well think of
appointing a new man as it may not be considered necessary
to start the proceedings afresh. On the other hand, if the
work has progressed considerably the Government may not
think it just and proper to fill up a vacancy by bringing
in a new man, as by doing so they will in effect permit
the work of the Body being done in two parts, viz., the
first with two men and the second with three men. These
considerations emphasize the importance of the Government
making up its mind to fill up or not to fill up a vacancy
when it occurs. It cannot keep its decision in abeyance and
at one stage intend to proceed on the, footing that the
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vacancy is not filled up and later on after considerable
work is done by the remaining members change its mind and
proceed to act on the footing that a vacancy has continued
and fill up the same after some months.
403
On the admitted principle that the work of the Tribunal,
which is of a quasi-judicial nature, is one of joint respon-
sibility of all its members, section 8 provides exceptions.
The Legislature having thus fixed in that section the limits
of the exceptions, the limits have to be strictly observed
and it is not within the competence either of the Tribunal
or the Government to extend the limits of those exceptions.
In our opinion, the incidents in respect of the sittings and
work of this Banking Tribunal, as mentioned above, do not
fall within the limits of the exceptions and therefore the
awards must be considered as made without jurisdiction.
In our opinion, therefore, the awards made and signed by
Messrs. Sen and Mazumdar and by all the three persons are
without jurisdiction and the contention of the appellants on
this issue must be accepted.
FAZL ALI J.--The questions which this Bench is called upon
to decide arise upon the following facts.
By a Notification dated the 13th June, 1949, the Govern-
ment of India constituted a Tribunal for the adjudication of
industrial disputes in Banking Companies, consisting of Mr.
K.C. Sen (Chairman), Mr. S.P. Varma and Mr. Majumdar (Mem-
bers). Subsequently, Mr. Chandrasekhara Aiyar was appointed
a member of the Tribunal in the place of Mr. Varma, whose
services had ceased to be available. On the 13th June, 1949,
the Government referred to the Tribunal the disputes between
a number of Banking Companies and their employees, and the
Tribunal consisting of the chairman and 2 members commenced
hearing them on the 12th September, 1949. In November, 1949,
the services of Mr. Aiyar were placed at the disposal of the
Department of External Affairs of the Government of India,
and he was appointed a member of the Indo-Pakistan Boundary
Disputes Tribunal, with the result that during his absence
which covered’ a period of nearly 3 months beginning from
the 23rd
404
November, 1949, and ending on the 20th February, 1950, the
proceedings were continued before the chairman and the
remaining member, and certain interim awards were also made
during this period. Mr. Aiyar rejoined the Tribunal on the
20th February, 1950, and ultimately all the 3 members made
and signed an award on the 31st July, 1950, which was pub-
lished in the Gazette of India on the 12th August, 1950.
The main point raised in these appeals is that this award is
without jurisdiction. In some of the appeals, it is also
contended that some of the interim awards, namely those
given by the chairman of the Tribunal and Mr. Majumdar on
the 5th January, 25th January, 20th February and 22nd Febru-
ary, 1950, in the case of the Imperial Bank of India, the
Lloyds Bank and the Punjab National Bank, were also without
jurisdiction. Briefly, the argument advanced on behalf of
the appellants is that the Industrial Disputes Act, 1947,
did not permit either of the following courses, firstly,
that 2 members of the Tribunal, which originally consisted
of 3 members, should deal with any of the controversies
between the parties in connection with the disputes referred
to the Tribunal, and secondly, that a member who had left
the Tribunal in the midst of the hearing should rejoin and
influence the decision of the other members in regard to the
matters which he had not heard.
These contentions, however plausible they may appear at
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the first sight, especially when we consider them in the
light of our notions of judicial procedure to be followed in
courts of law, will, in my opinion, be found to be without
much substance, on close examination, once we realize that
the Industrial Tribunal, though it has all the trappings of
a court of law, is not such a court and has to follow its
own procedure which has to be determined by the provisions
of the industrial Disputes Act and the rules framed by the
Government thereunder. The determination of the questions
raised before us will depend mainly upon the proper con-
struction of section 8 (1)of the Act, which runs as follows
:--
405
"8 (1) If the services of the chairman of a Board or of
the chairman or other member of a Court or Tribunal cease to
be available at any time, the appropriate Government shall,
in the case of a chairman, and may in the case of any other
member, appoint another independent person to fill the
vacancy, and the proceedings shall be continued before the
Board, Court or Tribunal so reconstituted ."
One of the questions to be decided in construing this
section is, as to the exact meaning of the words "services
cease to be available." Ordinarily, the word "cease" con-
veys a sense of permanency, and therefore the expression
would certainly cover cases where the services of a person
have ceased to be available permanently or for all time. But
that word is also sometimes applied to "intermission of a
state or condition of being, doing or suffering" (see Oxford
Dictionary), and, among several instances of its being used
in this narrower sense, we were referred to The Queen v.
Evans(1) which is a case dealing with an English statute in
which the expression "cease to reside" was used so as to
include a case where the person concerned was away from
England for a period and then returned there. It seems to me
that the words "services cease to be available" include
cases where the services are not available for a defined or
undefined period, provided that during that period they are
completely unavailable. These words should, I think, be
read with the marginal note of section 8, which indicates
that they were intended to cover every situation necessitat-
ing the filling of a vacancy. As we are aware, a vacancy
may be permanent or temporary, and therefore if the
services of a member of a Tribunal are temporarily placed at
the disposal of another department of the Government for
performing special work, such a case will be covered by the
section. This must necessarily be so, if the nature of the
duties which the member is called upon to discharge is such
as to necessitate that particular member severing himself
completely from the Tribunal during the
(1) [1896] 1 Q.B. 228.
406
period in which he holds his new office. I find it diffi-
cult to hold that the section was meant to apply only to a
permanent vacancy, and that no-provision whatsoever was made
for a temporary vacancy, which is by no means a matter of
uncommon occurrence. It should be noted that in sections 5
and 6 of the Act, the Legislature has been careful to use
the words "vacancy in number" which are wide enough to
include cases where, though there is a vacancy, the member-
ship does not cease.
It is common ground that in the present case, the
services of Mr. Aiyar were not available to the Tribunal,
while he was employed as a member of the Indo-Pakistan
Boundary Disputes Tribunal. It is also not disputed that at
the time his services were transferred, it was not known for
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what period his new duties would keep him away from the work
of the Industrial Tribunal. There can be no doubt therefore
that there was a vacancy, which provided an occasion for the
Government to exercise the discretion vested in it under
section 8 of the Act.
At this stage it will be relevant to quote certain
correspondence which passed between the chairman of the
Tribunal and the Government soon after Mr. Aiyar’ left the
Tribunal. We find that on the 28th November, 1949, the
chairman sent an express telegram to the Labour Ministry
stating that in the absence of Mr. Aiyar objections had been
raised to the remaining two members of the Tribunal continu-
ing the proceedings and urging the Ministry either to ap-
point a substitute or to intimate that the Tribunal could
proceed with two members during Mr. Aiyar’s absence. To
this, the Government sent the following reply:-
"Reference your telegram twenty eighth stop Govern-
ment advised that rule twelve is inconsistent with section
eight stop rule twelve being deleted through notification
stop Government advised Tribunal can continue proceedings
with remaining two members stop no formal order or notifica-
tion necessary stop Government may fill vacancy later date."
407
These two telegrams indicate that both the chairman of
the Tribunal and the Government took the view that in the
circumstances of the case, there was a vacancy within the
terms of section 8, that under that section it was open to
the Government either to make an appointment to fill the
vacancy or not to make an appointment, and that the proceed-
ings before the Tribunal could continue even if the vacancy
was not filled. This is quite clear from the concluding
words (which I have underlined) of the telegram sent by the
Government to the chairman of the Tribunal. In my judgment,
the view taken by the chairman of the Tribunal and the
Government was perfectly correct. The question involved
here is twofold, namely, (1) whether section 8 applies to a
temporary vacancy; and (2) whether, in case the Government
decides not to fill such a vacancy, the proceedings can
continue before the chairman and the remaining member. I
have already dealt with the first point, and the second
point may also be now dealt with briefly. In substance, what
section 8 provides is that if the chairman goes out, the
vacancy must be filled, but, if a member goes out, the
Government may or may not fill the vacancy. It seems to me
to follow from this by necessary implication, that if there
is a member’s vacancy and the Government decide not to fill
it, the Tribunal will not become an imperfectly constituted
Tribunal. In other words, the proceedings can be continued
before the Tribunal in spite of the vacancy. The argument
put forward before us on behalf on the appellants was that
in the event of a member’s vacancy, either the Government
should make an appointment at once or the work of the-Tribu-
nal should be suspended until an appointment is made.
These inferences however do not appear to me to be war-
ranted by the words of the section, firstly because ’if the
section says that the Government may or may not appoint a
new member, how can we say that the Government must appoint
him, and secondly because there is nothing in the section to
show that the work of the Tribunal should remain suspended
indefinitely in the situation with
408
which we have to deal. A reference to the corresponding Acts
in England and America will show that suspension of work is
generally ruled out in cases of industrial disputes since
they need expeditious settlement. (See section 3 (b) of the
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National Labour Relations Act of America and section 3 of
the Industrial Courts Act, 1919, of England). The scheme of
our Industrial Disputes Act appears to me to be the same,
and I think that it will be entirely foreign to that scheme
to suggest that the proceedings of the Tribunal should
remain suspended indefinitely. The principle that the pro-
ceedings may continue in spite of there being a vacancy in
number, is expressly laid down in sections 5 and 6 of the
Act which govern Boards of Conciliation and Courts of En-
quiry, and is in my opinion recognized by necessary implica-
tion in section 8 with reference to proceedings before an
Industrial Tribunal. It was strenuously argued before us
that if the intention of the Legislature had been that the
proceedings before the Tribunal should continue in spite of
a vacancy, an express provision would have been made in
section 8 in the same terms as it has been made in sections
5 and 6. This argument however will not bear close examina-
tion. Sections 5 and 6 have been reproduced from the Trade
Disputes Act, 1929, without any verbal change whatsoever,
and it is quite understandable that a provision dealing with
the subject of a prescribed quorum should expressly state
what would be the effect of the absence of the chairman or a
member when the quorum is complete. Section 8, on the other
hand, has not been borrowed from the old Act, but is a
completely new section in which its draftsman has used his
own language and proceeded on the footing that if it was
possible to convey the meaning intended to be conveyed in
fewer words, there was no necessity for reproducing the
entire phraseology used in sections 5 and 6. Besides, in the
context in which the provision occurs, there is no room for
surmising that the intention of the framer of the section
might have been to suspend the work of the Tribunal. The
words "the proceedings shall be continued
409
before the Board, Court or Tribunal so reconstituted",
obviously refer to a situation which arises when anew chair-
man or a new member is appointed, but they also show that
the framer of the section must have assumed that the pro-
ceedings before the Tribunal shall continue when there is a
vacancy in number and the Government decides not to fill
it.
The position we have now arrived at is this. There was a
vacancy of an indefinite duration and the Government decid-
ed, as it was competent for it to decide, not to fill it for
the time being but to let the Tribunal continue the work. In
my judgment, in such circumstances, the proceedings before
the chairman and the remaining member cannot be said to have
been without jurisdiction.
The further question which now arises is, "what would be
the legal effect of Mr. Aiyar rejoining the Tribunal on the
20th February, 1950?" It is contended on behalf of the
appellants that the whole award is vitiated by Mr. Aiyar
being brought into the Tribunal at a late stage, and the
argument is put in the following way." The Government had
originally appointed a Tribunal consisting of a members.
Granting that a Tribunal of a members can, under section 8
of the Act, become a Tribunal of 2, how can it again become
a Tribunal of 3, without the Government acting in strict
compliance with the procedure laid down in the section and
without making a fresh appointment." The same argument was
put a little more rhetorically by likening the proceedings
before the Tribunal to a running train and enquiring whether
it was permissible for one to "jump into and jump off" the
train as one chose. I must confess that though I have very
carefully considered this argument I have not been able to
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appreciate its force. In answering the argument, we have to
bear in mind that the Legislature has conferred very large
powers on the Government, and the entire constitution of the
Tribunal as well as the appointment of its members have been
left to its discretion. Section 7 (2) provides that the
Tribunal shall consist of such
410
number of members as the appropriate Government thinks fit.
Again, section 8 (1) provides that the Government may or may
not appoint a member to fill a vacancy. Under section 9, no
order of the appropriate Government appointing any person as
a member of a Tribunal shall be called in question in any
manner. Under section 38, for the purpose of giving effect
to the provisions of the Act, the Government may make rules,
and, as far as I can see, there is nothing to prevent the
Government from making a rule fixing the minimum strength of
the Tribunal for hearing any of the matters before it. Thus,
in a way, the Government is empowered to constitute as well
as reconstitute the Tribunal, and though it is not expected
to use the power arbitrarily, or unfairly the power is
there. Therefore looking at the substance of the matter, as
opposed to mere technicalities and legal refinements, it
appears to me to be a sufficient answer to the question
posed on behalf of the appellants to say that, if the going
out and coming in of Mr. Aiyar was under the orders of the
Government, the proceedings cannot be held to be invalid.
Apart from this general answer, I shall now try to deal
with the question a little more closely. As I have already
pointed out, under section 8, the Government is empowered
not to fill a member’s vacancy at all. Now, there appear to
me at least two obvious reasons, which may induce the Gov-
ernment not to fill the vacancy, namely, (1) because it
considers that the chairman and the remaining member or
members are sufficient to carry on the work of the Tribunal,
and (2) because the vacancy being a temporary one, it con-
siders it unnecessary to introduce a new member and prefers
to await the return of the old member. It seems to me that
it was the latter alternative that commended itself to the
Government in the present case. Here, the vacancy being a
temporary one, Mr. Aiyar had not ceased to be a member of
the Tribunal, and could therefore rejoin it as soon as he
was free from the duties of his new office. In such an
event, it was not necessary for the Government to
411
make any order reappointing him to the Tribunal. He was
still a member of the Tribunal and resumed his duties as
such under the orders of the Government. It will, therefore,
be entirely wrong to describe him as an intermeddler and to
argue that the proceeding was vitiated by his return to the
Tribunal. There is indeed no difficulty in the present case
in holding that Mr. Aiyar joined the Tribunal under the
orders of the Government, and we find that the Government
ultimately declared the award, to which he was a party, to
be binding under section 15 of the Act. He was allowed to
resume his duties as member of the Tribunal, and drew his
salary as such from the 20th February, 1950, till the
termination of the proceedings. Such being the facts, it
would be far too abrupt a conclusion to hold that the
entire proceedings are void and the award is bad. One of
the arguments which has been advanced before us against
the validity of the award is that Mr. Aiyar, though he did
not participate in the proceedings which took place in his
absence, was at least theoretically able to influence the
decision of the remaining members who had participated in
them. But I do not see any basis for this argument in law,
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unless we allow our minds to be influenced by any precon-
ceived notions of strict judicial procedure followed in a
regular court of law. A perusal of section 8 (2) will show
that the Act does not contemplate a ale novo hearing in
those cases where a new member is appointed by the Govern-
ment in the place of a member whose services had ceased to
be available. The new member may join at any stage of the
proceedings, and no party will be heard to say that a member
who has not taken part in the earlier proceedings is able to
influence the views of those who had participated in them.
How then can such an objection be raised in the case of Mr.
Aiyar, who was familiar with the proceedings and had taken
part in them in the earlier stages.
When we therefore examine the facts closely, we find
that in substance nothing has happened in this case which
could not have legitimately happened
412
under section 8 of the Act. Even if we assume that it was
necessary for the Government to make an appointment under
sub-section (1) of section 8, the requirements of the provi-
sion appear to me to have been substantially fulfilled in
this case, because Mr. Aiyar could not have joined the
Tribunal without giving notice to the Government and without
obtaining its orders. There can be no doubt that the Gov-
ernment permitted Mr. Aiyar to join the Tribunal, and I do
not find any substantial difference between its directing a
person to participate in the work of ?the Tribunal and
appointing him as a member of that Tribunal.
Once therefore it is clearly understood that under the
Act, the Government has been empowered not only to consti-
tute the Tribunal but also to reconstitute it under certain
circumstances, the problem which is supposed to arise from
the numerical changes in the composition of the Tribunal in
question should not present any difficulty. I think that
the answer to that problem is to be found within the four
corners of section 8. If there is a vacancy within the terms
of that section and the Government does not fill it the
Tribunal of 3 members will evidently become a Tribunal of 2
members. But the power of filling the vacancy being vested
in the Government, the Tribunal may again become a Tribunal
of a members, as soon as the vacancy is filled. I think
that the Government can take its own time in filling the
vacancy and may allow the work of the Tribunal to go on in
the meantime. Sometimes, the filling of the vacancy may be
delayed, because a suitable person is not at once available,
and it may also be delayed for other conceivable reasons. I
do not see anything in the Act or in section 8 to restrict
the powers of the Government in such a manner as to compel
it either to fill the vacancy, at once or to let the vacancy
remain unfilled for ever. To import such a condition would
be placing an undue restriction on the power of the Govern-
ment, which neither the provisions nor the scheme of the
Act justify. The section, as it stands, will also in my
opinion cover
413
a case where the vacancy being a temporary one, the Govern-
ment chooses not to fill it but awaits the return of the old
incumbent.
It was contended that there was no formal notification
made at the proper time to furnish evidence of the decision
arrived at by the Government. In fact, however, a Notifica-
tion was issued by the Government on the 20th May, 1950, to
the following effect:
"After relinquishing charge of membership of the Indo-
Pakistan Boundary Dispute Tribunal, Sri N. Chandrasekhara
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Aiyar resumed charge of his duties as Member of the All
India Industrial Tribunal (Bank Disputes) on the 20th Febru-
ary 1950 (forenoon)."
It is argued that this ex post facto notification cannot
legalize an illegality which had already been committed. I
do not however appreciate this argument. In the first
place, there was no illegality committed; secondly, the
section does not require any notification; and thirdly, it
is not correct to say that the Notification was issued ex
post facto, as the proceedings had not terminated but were
still going on. The Government can take its own time for
issuing a Notification, and I am unable to hold that the
Government did not act bona fide in making the Notification
to which I have referred. As I have already stated, the fact
that Mr. Aiyar joined the Tribunal with the concurrence of
the Government and the Government wanted him to continue to
participate in the work of the Tribunal and paid him his
salary on that basis, is sufficient compliance with the
requirements of the Act. How the absence of a formal order
or delay in the Notification can have such a far-reaching
effect on the proceedings before the Tribunal as to make the
whole award void as having been made without jurisdiction,
is a matter which I find considerable difficulty in appreci-
ating. It seems to me that the objections raised on behalf
of the appellants are of the most unsubstantial character,
and in the absence of any cogent if not compelling reason to
do so, I cannot pursuade myself to hold that the work
which has been
414
accomplished by the Tribunal after nearly a year’s delibera-
tions and peregrinations all over the country at considera-
ble cost to the public exchequer is so much money and labour
thrown away.
In the course of the arguments, we were asked to read
section 8 with sections 7 and 16. I do not find anything in
either of these sections which militates against the view
which I have ventured to express, and I do not think that
the provision contained in section 16 that the report of the
Tribunal shall be signed by all the members of the Tribunal,
means that it should be signed even by those members who had
not taken part in the proceedings. It really means that the
award shall be signed by such members as have taken part in
the proceedings and could have taken part in them under the
Act. It should be remembered that the provision is general
and applies to the awards made by the Tribunals as well as
the Boards and Courts, and it should be read with the provi-
sions contained in sections 5 and 6 which state that a Board
or Court having the prescribed quorum may act notwithstand-
ing the absence of the chairman or any of its members or any
vacancy in its number. It may be that the Tribunal and the
Government could have acted in this case with more care so
as to avoid the criticisms directed against the proceedings
of the Tribunal, but I find no sufficient ground for holding
that the proceedings were without jurisdiction.
Reference was made in the course of the arguments to
rules Nos. 5 and 12 framed by the Government under section
38 of the Act, which run as follows :--
"5. The appointment of a Board, Court or Tribunal
together with the names of persons constituting the Board,
Court or Tribunal shall be notified in the official Gazette.
12. Where a Tribunal consists of two or more members,
the Tribunal may, with the consent of the parties, act
notwithstanding any casual vacancy in its number and no act,
proceeding or determination of the Tribunal shall be called
in question or invalidated by reason of any such vacancy."
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415
These rules however have in my opinion no bearing on the
point in dispute. Rule 5, dealing as it does with the
appointment of a Board, Court or Tribunal together with the
names of persons constituting them, refers to a Notification
which the Government has to make when a Board, Court or
Tribunal is initially constituted under the Act. This was
done in this case, as will appear from the award itself.
The rule has no reference to the appointments made under
section 8 of the Act to fill vacancies. I take it that the
Government will, as a matter of practice, issue a notifica-
tion in regard to the appointments made under section 8, but
the notification will not be under rule 5, and section 8
itself does not expressly provide for issuing any notifica-
tion. Nor is a notification necessary under section8 in
cases where the Government decides not to fill a vacancy.
The mere fact that the word ’reconstituted’ occurs in sec-
tion 8, is not in my opinion enough to attract rule 5. Rule
12 which was in force till the 5th December, 1950, dealt
with a casual vacancy, and provided that on the occurrence
of such a vacancy, the Tribunal may act with the consent of
the parties. This rule had nothing to do with the vacancy
caused by the services of a chairman or a member ceasing to
be available, which is dealt with in section 8. At the
first sight, it may appear that if the consent of parties
was necessary in the case of a casual vacancy for continu-
ing the proceedings, it may also be necessary for continuing
the proceedings under section 8 of the Act when no appoint-
ment is made. In my opinion, however, no such inference can
be drawn from rule 12. Under that rule, the proceedings
could go on without the Government being informed, but as to
vacancies which occur under section 8, the matter passes
into the hands of the Government and its action alone, one
way or the other, legalizes the proceedings, and no question
of consent of parties arises. On the other hand, rule 12
lends support to the respondents’ contentions in two ways.
Firstly, it shows that a "vacancy" for the purposes of the
proceedings before the Tribunal can be casual and
416
need not always be a permanent one, as suggested on behalf
of the appellants; and secondly, what is more important,
that a "vacancy" does not affect the jurisdiction of the
remaining members to continue the proceedings, for it is
settled law that consent cannot give jurisdiction in respect
of a subject-matter though it might cure a mere irregulari-
ty. It was said that rule 12 was ultra vires, but it appears
to me to be unnecessary to inquire into this side issue.
For the reasons I have set out, I respectfully differ
from the conclusion arrived at by my Lord the Chief Justice
and the majority of my colleagues, and hold that the objec-
tions raised on behalf of the appellants should be over-
ruled.
PATANJALI SASTRI J.--I agree with the reasoning and
conclusion of my learned brother Fazl Ali whose judgment I
have had the advantage of reading. He has said all I wished
to say and has said it so well that I have nothing to add.
MUKHERJEA, J.--I concur in the decision of my learned
brother Fazl Ali, J. that the award of the All India Indus-
trial Tribunal (Bank Disputes) dated the 31st July, 1950,
could not be held to be illegal and inoperative by reason of
any lack of jurisdiction in the Tribunal which made it.
However, as the line of reasoning by which I have reached my
conclusion is not the same as that adopted by my learned
brother and as I have not been able to agree with him as
regards the validity of certain earlier awards which the
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Tribunal purported to make in the months of January and
February 1950, I deem it necessary and proper to express my
own views on the subject matter of controversy in these
appeals as succinctly as possible in a separate judgment.
The only point that has been canvassed before us at this
stage of the hearing of the appeals relates to the question
of jurisdiction, and the substantial ground upon which the
legality of the awards has been assailed by the learned
Counsel appearing for the several
417
Banks is that the awards were not made by a Tribunal proper-
ly constituted and competent to adjudicate upon industrial
disputes under the terms of the Industrial Disputes Act. To
appreciate the arguments that have been raised by the re-
spective parties on this point, it would be necessary to
state a few facts.
By a notification dated the 13th of June, 1949, the
Central Government in exercise of the powers conferred upon
it by section 7 of the Industrial Disputes Act, 1947, con-
stituted an Industrial Tribunal consisting of three members
to wit: (1) Mr. K.C. Sen, (who was appointed chairman of the
Tribunal), (2) Mr. S.P. Verma and (3) Mr.J.N. Mazumdar. By
a further Notification dated August 24, 1949, Mr. N. Chan-
drasekhara Aiyar was appointed a member of the Tribunal in
place of Mr. S.P. Verma whose services ceased to be avail-
able and the Tribunal so reconstituted was designated "The
All India Industrial Tribunal (Bank Disputes) ." The Tribu-
nal consisting of the chairman and the two members mentioned
aforesaid commenced their sittings at Bombay on September
12, 1949, and continued to sit as so constituted at Bombay
and various other places since then. From the afternoon of
23rd September, 1949, the services of Mr. N. Chandrasekhara
Aiyar were placed temporarily at the disposal of the Minis-
try of External Affairs, he being appointed a member of the
Indo-Pakistan Boundary Tribunal. Mr. Aiyar’s work in connec-
tion with the Indo-Pakistan Boundary Tribunal ended on 27th
or January, 1950, and a Government Notification shows that
he was absent on leave from 28th January, 1950, until the
19th of February following and it is on the 20th February,
1950, that he actually resumed his duties as a member of the
Industrial Tribunal. During the entire period of his ab-
sence there were various sittings of the Industrial Tribunal
in which the two remaining members took part and a number of
awards were also made and signed by these two members
adjudicating upon several items of dispute concerning cer-
tain Banks. It may be mentioned here that in exercise of
the powers
418
conferred by section 38 of the Industrial Disputes Act,
certain rules were framed by the Central Government which
came into force on 3rd December, 1949, and under which the
Tribunal, as constituted by the Notification of 13th June,
1949, was authorised to entrust such cases or matters re-
ferred to it, as it deemed fit, to one or more members for
enquiry and report. In case of such entrustment, the report
of the enquiring member was to be placed before the chairman
of the Tribunal and the Tribunal after considering the
report and making such further enquiry as it deemed proper
could deliver the award. Purporting to act in pursuance of
these rules a large number of matters pending before the
Tribunal were divided amongst the members for enquiry and
report and the members of the Tribunal did sit separately at
different places from the 3rd of December, 1949.
After Mr. Aiyar joined the Tribunal, the proceedings
continued as before. The hearing of the general issues,
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which began at Bombay, was concluded on 3rd April, 1950. The
Tribunal made and signed the main, award on gist July, 1950,
which was published in the Gazette of India (Extraordinary)
on August 12, 1950.
The point that has been pressed for our consideration on
behalf of the appellants Banks is that on the services of
Mr. Aiyar having ceased to be available by reason of his
being appointed a member of the Indo-Pakistan Boundary
Tribunal, the remaining two members could not, in law,
constitute an Industrial Tribunal without its being
reconstituted as such in, the manner contemplated by the
provisions of the Industrial Disputes Act. The proceedings
after the 23rd of November, 1949, became, therefore, void
and inoperative and the subsequent rejoining of the Tribunal
by Mr. Aiyar was of no avail, as a vacancy having once
occurred, a fresh appointment of a member and a fresh con-
stitution of the Tribunal were imperative in law. We have
been asked to declare the award made on 31st of July, 1950,
as well as the earlier awards void and inoperative on these
grounds.
419
These contentions have been sought to be repelled on
behalf of the respondents employees as well as by the
learned Attorney-General who appeared for the Central Gov-
ernment as intervener, on a variety of grounds and though
the grounds are not quite uniform or consistent, they have
all been invoked in support of the position that even in
the absence of Mr. Aiyar it was quite competent to the two
other members to continue to function legally as a Tribunal
under the provisions and the general scheme of the Industri-
al Disputes Act, 1947. There was nothing irregular, it is
said, in Mr. Aiyar’s subsequently taking part in the Tribu-
nal and signing the award on 31st July, 1949. I will notice
these arguments in detail as I proceed with my judgment.
It will be convenient first of all to advert to such of
the provisions of the Industrial Disputes Act, 1947, as have
a bearing on the questions raised in this case.
The object of the Industrial Disputes Act, as set out in
the preamble is "to make provisions for investigation and
settlement of industrial disputes and for certain other
purposes hereinafter appearing." There are three classes of
authorities provided for by the Act’ which are entrusted
with the powers and duties of investigation and settlement
of industrial disputes. First of all, there are Conciliation
Officers or Boards of Conciliation, whose duties mainly are
to induce the parties to come to a fair and amicable settle-
ment of the disputes amongst themselves. Secondly, there
are Courts of Enquiry and though they are described as
courts, their duties end with investigation into the matters
referred to them and submitting reports thereon to the
appropriate Government. Lastly, there are Industrial Tribu-
nals composed of independent persons who either are or had
been Judges of the High Court or District Judges, or are
qualified for appointment as High Court Judges.
Sub-section (2) of section 5 provides for the constitu-
tion of a Board of Conciliation. A Board of Conciliation
shall consist of a chairman and two or four other members as
the appropriate Government thinks
420
fit, and sub-section (8) provides that the chairman shall be
an independent person, while the members shall be persons
appointed in equal numbers by the parties to the dispute.
Sub-section (4) makes an important provision, namely, that a
Board can function despite the absence of the chairman or
any of the members if it has the prescribed quorum as laid
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down in the rules, provided however that if the Government
notifies the Board that the services of the chairman or of
any other member have ceased to be available, the Board
shall not act unless a new chairman or member, as the case
may be, has been appointed.
Section 6 of the Act relates to Courts of Enquiry and
such court may consist of one independent person or such
number of independent persons as the appropriate Government
may think fit. Where a Court of Enquiry consists of two or
more members, one of them has got to be appointed as a
chairman. The Court like the Board of Conciliation can
function in the absence of the chairman or any of its mem-
bers or in the case of any vacancy in its number, provided
it has the prescribed quorum; but it cannot function if the
appropriate Government notifies it that the services of the
chairman have ceased to be available, so long as a new
chairman is not appointed. There is no provision in section
6 relating to notification by Government in case the serv-
ices of a member of a Court cease to be available as there
is in the case of a member of the Conciliation Board under
section 5.
Section 7 deals with Industrial Tribunals. Sub-section
(1) lays down that the appropriate Government may constitute
one or more Industrial Tribunals for the adjudication of
industrial disputes in accordance with the provisions of
this Act. Sub-section (2) provides that a Tribunal shall
consist of such number of members as the appropriate Govern-
ment thinks fit. Where the Tribunal consists of two or more
members, one of them shall be appointed a chairman. There
is no provision in section 7 similar to that appearing
in sections 5 and 6 empowering a Tribunal to continue its
proceedings in the absence of the chairman
421
or any of its members, provided there is a requisite quorum;
in fact, no quorum has been prescribed in the rules in
regard to an Industrial Tribunal at all. It is clear, there-
fore, from the provisions of section 7 of the Industrial
Disputes Act referred to above--and this position has not
been disputed by Mr. De who appeared for the employees of
some of the Barks-- that if a Tribunal has been constituted
as consisting of three members as in the present case, then
subject to any exception that may be created by any other
provision of the Act all the three members of the Tribunal
must act together.
On behalf of the respondents very great stress has been
laid upon section 8 of the Industrial Disputes Act, and it
is contended that in the circumstances which have happened
in the present case, the provision of section 8 would fur-
nish a clear authority to the two remaining members to
continue as a legally constituted Tribunal during the period
that the services of Mr. Aiyar ceased to be available, even
though there was neither a fresh appointment in his place
nor a fresh constitution of the Tribunal. Section 8 is in
the following terms:--
"(1) If the services of the chairman of a Board or of
the chairman or other member of a Court or Tribunal cease to
be available at any time, the appropriate Government shall,
in the case of a chairman, and may in the case of any other
member, appoint another independent person to fill the
vacancy, and the proceedings shall be continued before the
Board, Court or Tribunal so reconstituted.
(2) Where a Court or Tribunal consists of one person
only and his services cease to be available, the appropriate
Government shall appoint another independent person in his
place, and the proceedings shall be continued before the
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person so appointed.
(3) Where the services of any member of a Board other
than the chairman have ceased to be available, the appropri-
ate Government shall appoint in the manner specified in
sub-section (3) of section 5 another
422
person to take his place, and the proceedings shall be
continued before the Board so reconstituted."
The section purports to provide for filling up vacan-
cies. Sub-section (2) is not material for our present
purpose. Taking sub-sections (1) and (3) together we find
that if the services of the chairman of a Board, a Court or
a Tribunal cease to be available at any time, it is incum-
bent upon the appropriate Government in each case to fill
the vacancy by the appointment of another independent person
as chairman and the proceedings shall be continued before
the authorities so reconstituted and they would not have to
be commenced de novo. In case the services of a member of
either a Court or a Tribunal cease to be available, it is
discretionary with the appropriate Government to fill the
vacancy or not as it chooses. If it chooses to appoint a new
member in place of the old, the same provision will apply as
in the case of appointment of a new chairman. The section
does not say, at least in express terms, as to what would
happen if the Government does not think it proper to appoint
a new member. So far as a Board of Conciliation is con-
cerned, a different provision is made even when the services
of a member cease to be available. In such a case, re-ap-
pointment has got to be made as provided for in subsection
(a) of section 5 and the reasons are obvious; because the
essential thing in a Board of Conciliation is the equal
representation of both parties to the dispute and the par-
ties would be unequally represented if the vacancy of a
member is not filled up.
In the present case one of the members of the Tribunal
namely, Mr. Aiyar, was admittedly absent for a period of
above three months and as he was appointed to do duties in
another capacity, his services could not possibly be avail-
able during the period that he was engaged elsewhere. This
fact, it appears, was brought to the notice of the appropri-
ate Government by the other two members, but the Government
decided not to make any new appointment in his place. The
question is, what exactly became the legal position of the
other two members ? Could they function
423
as a Tribunal in the absence of the third member and without
the Government reconstituting the Tribunal as a Tribunal of
two ? The contention of the respondents is that as section
8 of the Industrial Disputes Act gives an option to the
appropriate Government to fill the vacancy or not, as it
chooses, when the services of a member cease to be available
and as it provides for reconstitution only when a new member
is appointed by the Government, it is implicit in the provi-
sion of the section itself that in case the Government does
not decide to appoint a new member, the remaining members
would automatically constitute the Tribunal and would
proceed as such. It is said that the Industrial Tribunals
are really administrative bodies and as the very object of
establishing such Tribunals is to settle industrial disputes
as quickly and as expeditiously as possible with a view to
secure industrial peace, certain amount of laxity in the
procedure cannot but be allowed to these Tribunals as ap-
pears from the various provisions of the Act and it would
defeat the very object of the enactment if the normal rules
of law and procedure are made applicable to them. It is
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suggested further that what section 7 (1) contemplates is
the constitution of a Tribunal irrespective of its members
for adjudication of industrial disputes. What number of
persons the Tribunal shall consist of can be determined by
the Government at different times and in different manner
and no question of fresh constitution of a Tribunal would
arise in case the number is subsequently altered.
So far as an Industrial Tribunal is concerned, section 8
(1) of the Industrial Disputes Act comes into operation when
the services of the chairman of the Tribunal or of any
member thereof cease to be available at any time. This non-
availability of services may be permanent or temporary and
may be occasioned by any cause or circumstance. When the
services of a member cease to be available, the appropriate
Government has got to make up its mind whether it would fill
the vacancy or not; and in case it chooses to appoint a new
member, the Tribunal must be deemed
424
to be reconstituted within the meaning of section 8, the
primary object of which is to provide that the proceedings
shall be continued before such reconstituted Tribunal from
the stage at which they were left and they would not have to
be started afresh. Thus it follows from the language of
section 8 that the reconstitution spoken of or contemplated
by the section is reconstitution by reason of the appoint-
ment of a new member in place of the old. There is no
question so far as section 8 is concerned of reconstitution
of the Tribunal when the Government chooses not to fill the
vacancy.
The point that is stressed on behalf of the respondents
is that as section 8 does not provide for reconstitution of
the Tribunal when no new appointment of a member is made,
the implication must necessarily be that the remaining
members would continue to act as a Tribunal and no further
order or notification by the Government is necessary. The
argument seems plausible at first sight but an examination
of the material provisions of the Act reveals the difficul-
ties, and those of a formidable character, in the way of
accepting this contention as sound.
As has been pointed out already, there is a marked
distinction between the provisions of sections 5 and 6 of
the Industrial Disputes Act on the one hand and those of
section 7 on the other. Sections 5 and 6 expressly empower
a Board of Conciliation and a Court of Enquiry to exercise
their functions in the absence of any of the members, pro-
vided the prescribed quorum is present; but such provision
has been deliberately omitted from section 7 and nothing has
been prescribed either in the Act or in the rules in regard
to any quorum for the members of the Tribunal. It cannot be
argued that no quorum has been laid down in the case of a
Tribunal, as it can consist of one member only. The position
of a Court of Enquiry, it seems, is precisely the same so
far as this point is concerned and yet there is a rule
prescribing a quorum for members of a Court. Having regard
to the language of section 7 which admittedly contemplates
that the members of
425
a Tribunal must act all together, it would, in my opinion,
be a perfectly legitimate view to take that if the legisla-
ture did intend to make an exception to this rule, it would
have done so in clear terms instead of leaving it to be
gathered inferentially from the provision of another
section which itself is not couched ’ in unambiguous lan-
guage.
An Industrial Tribunal can be constituted only in ac-
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cordance with the provisions of section 7 of the Industrial
Disputes Act and unless a Tribunal is properly constituted,
it cannot be invested with jurisdiction to adjudicate on
industrial disputes. Under sub-section (2) of section 7, the
number of members constituting the Tribunal has got to be
determined by appropriate Government and that is an integral
part of the Tribunal itself. A change in the number of
members of a Tribunal could be made therefore only in pursu-
ance of the provision contained in sub-section (2) of sec-
tion 7. As section 8 does not lay down that in case the
services of a member of the Tribunal cease to be available
and the Government does not choose to make a new appointment
in his place, the remaining members should continue to form
the Tribunal, the constitution or ’reconstitution of the
remaining members as a Tribunal should, in my opinion, be
made only under section 7 of the Act.
I am not impressed by the argument of Mr. De that a
Tribunal is to be conceived of as an entity different from
the members of which it is composed and whatever changes
might occur in the composition of the Tribunal, the identity
of the Tribunal remains intact. A distinction undoubtedly
exists between the court and the judge who presides over it
but if the constitution of the court requires that it is to
be composed of a certain number of judges, obviously a
lesser number could not perform the functions of the court.
Mr. De also argued that the very object of the Industri-
al Disputes Act is to ensure a speedy and quick determina-
tion of industrial disputes and section
426
15 of the Act expressly lays down that the Tribunal shall
hold its proceedings expeditiously and shall, as soon as
practicable, on the conclusion thereof, submit its award to
the appropriate Government. This object, it is said, would
be frustrated if the strict rules of ordinary law are ex-
tended to the proceedings of an Industrial Tribunal.
It is quite true that a quasi-judicial tribunal enjoys
greater flexibility and freedom from the strict rules of law
and procedure than an ordinary court of law, but however
much informality and celerity might be considered to be
desirable in regard to the proceedings of an Industrial
Tribunal, it is absolutely necessary that the Tribunal must
be properly constituted in accordance with requirements of
law before it is allowed to function at all. I fail to see
further how the issuing of a formal notification under
section 7 of the Act could delay the proceedings of the
Tribunal or hamper expeditious settlement of the disputes.
Section 16 of the Industrial Disputes Act makes the impera-
tive provision that the award of a Tribunal shall be in
writing and shall be signed by all the members. So long as
there is no change or alteration in the original notifica-
tion which constituted the Tribunal, the expression "all
the members" must mean and refer to all the members whose
names appear in this notification and, unless all of them
sign the award, it would not be a valid or operative award
in law.
Our attention was drawn in course of the arguments to
rule 12 of the rules framed by the Central Government in
exercise of its powers under section 38 of the Industrial
Disputes Act. This rule, it is to be noted, was deleted with
effect from 6th of December 1949. As it stood originally, it
was worded as follows :--
"Where a Tribunal consists of two or more members the
Tribunal may with the consent of the parties act notwith-
standing any casual vacancy in its number and no act,
proceeding or determination of the Tribunal shall be called
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in question or invalidated by reason of any such vacancy."
427
It has been contended on behalf of the appellants that this
rule was ultra vires of the authority which passed it. It is
not necessary for us for purposes of the present case to
discuss this matter. Assuming the rule to be valid, it
certainly does not assist the respondents in any way, as
there is no suggestion in this case that during the absence
of Mr. Chandrasekhara Aiyar the proceedings continued before
the remaining two members with the consent of both parties.
On the other hand, the provision in the rule certainly goes
against the broad contention that the respondents wanted to
raise upon the language of section 8. In my opinion, as
there was no notification by the appropriate Government
under section 7 of the Industrial Disputes Act constituting
the two members a Tribunal under the Act during the absence
of Mr. Chandrasekhara Aiyar, the proceedings before these
two members were void and inoperative and the award made and
signed by them only during this period must be held to be
void.
I do not think however that it should be held that the
Tribunal was not a properly constituted authority or lacked
jurisdiction to exercise its function when Mr. Aiyar re-
sumed his duties on 20th of February, 1950. As I have said
already, what is necessary for due constitution of an Indus-
trial Tribunal is a notification or order by the appropriate
Government under section 7 of the Industrial Disputes Act
and the number and names of the members as given in the
notification form an essential or integral part of the
Tribunal thus constituted. If the services of one of the
members cease to be available at any time as is contemplated
by section 8 and the appropriate Government does not choose
to appoint another member in his place, one or other of two
consequences may follow. The Government may, by afresh
notification under section 7, constitute a Tribunal with the
remaining members or in any other way it likes or it may not
take any steps at all and allow the original notification to
remain. It can certainly be assumed that the Government
will choose the latter alternative only
428
when it thinks that the vacancy is only for a short period
and is not likely to continue long. In such circumstances,
as I have already indicated, the true position is that the
remaining members cannot function as a Tribunal and all
the proceedings must be held to remain in abeyance till the
absent member rejoins his duties. But I do not see any
reason why there should be a fresh notification and a fresh
constitution of the Tribunal when the absent member returns.
The original notification is still there unaltered and
unamended and not affected in any way by any subsequent
notification; and by virtue of this notification alone, the
three members would be competent to sit as a Tribunal and
discharge its duties. The fact that the services of one of
them were not available at a time would not make the origi-
nal notification null and void. The only effect of the
absence of a member would be that the remaining members
would not be competent to continue the proceedings;but this
disability would cease as soon as the services of the absent
member become available and a Tribunal as constituted by the
notification is ready and able to function.
The appellant’s contention seems to be that once a
vacancy has occurred, the Tribunal becomes imperfectly
constituted and a fresh constitution is necessary. I do not
think that this position is sound. As I have said already,
the non-availability of the services of a member may be
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permanent or purely temporary and may be due to various
causes. The word "vacancy" has no technical meaning. As
will appear from a reference to the Oxford Dictionary,
the word "vacancy" is ordinarily used in the sense of a
"temporary freedom or cessation from a business or
occupation" If the absence of a member was merely tempo-
rary, the vacancy would mean nothing else but an interval or
period during which a particular office remained unoccu-
pied. The question of a fresh appointment might arise if
the vacancy was actually filled up; but, as has happened in
the present case, if the vacancy is not filled up but is
allowed to remain, it would automatically come to an end
429
as soon as the member whose absence caused the vacancy comes
back and rejoins the office. It may be desirable in the
interests of the public to issue a notice or make some
announcement in regard to the resumption of duties by the
absent member, but in my opinion no reconstitution of the
Tribunal with the self same members is called for or neces-
sary under the provisions of the Industrial Disputes Act. It
is pointed out that cases may be conceived of where the
non-availability of the services of a member is due to
death, lunacy or some such circumstance; but in such cases
there could be no question of the man’s coming back and
joining his office, and as I have said already under section
16 of the Industrial Disputes Act no award would be valid
unless all the members whose names appeared in the notifica-
tion signed it. This would be impossible in the case of
death, lunacy or some other disablement of that character.
It will be seen that in the Government Notification No.
LR 60 (47) dated 20th March, 1950, it was expressly stated
that the services of Shri N. Chandrasekhara Aiyar, Member of
the All India Industrial Tribunal (Bank Disputes), were
temporarily placed at the disposal of the Ministry of Exter-
nal Affairs with effect from 23rd November, 1949, (after-
noon). Mr. Aiyar’s new duties continued till 27th January,
1950. As soon as this work was over, he was regarded as
coming back to his office as a member of the All India
Industrial Tribunal and he was allowed leave in that capaci-
ty by the Ministry of Labour from 28th January, 1950. to
19th February, 1950, (vide Notification No. LR 60 (73) dated
16th September, 1950.) By another Government notification
(being Notification No. LR 60 (47) dated 29th May, 1950), it
was declared that Shri Chandrasekhara Aiyar resumed charge
of his duties as member of the All India Industrial Tribunal
on the 20th, February, 1950, (forenoon).
It is true that these notifications were issued much
after the time when Mr. Aiyar actually resumed his duties,
but as they are not notifications under section 7 of the
Industrial Disputes Act, and cannot constitute
480
a condition precedent to investing the Tribunal with juris-
diction under the law, the delay in the actual publication
of the notices is really immaterial. They are relevant only
for the purpose of showing what the state of affairs really
was. In my opinion, therefore, the Tribunal was a properly
constituted authority on and from the 20th February, 1950,
and as the award dated 31st July, 1950, was signed by all
the three members appointed under the notification dated
24th August, 1949, no objection is legally sustainable that
the award was made without any jurisdiction.
A question may be raised that as the hearing of the
general issues before the Tribunal commenced at a time when
Mr. Aiyar was absent and he had not the opportunity of being
present all through the proceedings when arguments of both
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sides were advanced, there has been an irregularity or
illegality in the procedure which vitiates the whole award.
A decision on this point would require investigation of
various matters which have not been placed before us at the
present stage by the learned Counsel appearing for the
appellants Banks; and I would refrain from expressing any
opinion upon it. My conclusion is that the award dated the
31st of July is not void by reason of any lack of jurisdic-
tion in the Tribunal which made it. I am, however, of the
opinion that the other awards which were made during the
absence of Mr. Chandrasekhara Aiyar or which were not signed
by him must be held to be without jurisdiction.
Awards declared void.
Agent for the appellants in Civil Appeals Nos, 35, 36,
37, 38, 39, 40, 41, 42, 43, 44, 45, 46 & 49: Rajender Na-
rain.
Agent for the appellants in Civil Appeals Nos. 48 and
50; Ranbir Sawhney.
Agent for the appellant in Civil Appeal No. 47: Ganpat
Rai.
Agent for the respondents: Naunit Lal. Agent for the Inter-
vener P.A. Mehta.
431