Withdrawal of delegated powers does not invalidate an industrial reference validly made before rescission.

The dispute concerned the termination, with effect from 1 January 1999, of 21 workmen of Bengal Chemicals and Pharmaceuticals Ltd.

The Seventh Industrial Tribunal directed their reinstatement, if they had not attained superannuation, and payment of 50% back wages from termination until reinstatement.

The company challenged the award, principally contending that the West Bengal Government and Tribunal lacked jurisdiction following the Central Government’s 5 May 2008 rescission of a 1998 delegation under Section 39 of the Industrial Disputes Act, 1947.

The original reference was made on 20 November 2002; the Court noted that a 7 May 2008 order transferring the reference to the Third Industrial Tribunal was not given effect, and the Seventh Industrial Tribunal decided the matter.

Whether the Central Government’s rescission of the delegation under Section 39 in 2008 deprived the Tribunal of jurisdiction to decide a reference made in 2002.

Whether the Tribunal’s award directing reinstatement and 50% back wages warranted interference on the other grounds raised by the company.

Section 2(a) of the Industrial Disputes Act, 1947 identifies the “appropriate Government,” while Section 39 permits the Central Government to delegate—and withdraw—the relevant powers.

The Court applied the principle that the referring authority’s competence is assessed on the date the reference is made; a later withdrawal of delegation operates prospectively and does not invalidate a pending reference made when the authority was competent.

It also relied on *State of Bihar v. D.N. Ganguly*, AIR 1958 SC 1018, for the rule that the appropriate Government cannot cancel or supersede a reference once made and pending adjudication.

The Court treated the 20 November 2002 reference as valid when made, because the State Government then had delegated authority under Section 39.

Applying the rule stated in *Steel Authority of India*, it held that the Central Government’s 5 May 2008 rescission did not remove the Tribunal’s jurisdiction over that existing reference.

The Court also noted that the transfer order of 7 May 2008 was not acted upon and that the Seventh Industrial Tribunal had adjudicated the reference.

It rejected the company’s remaining challenges to the award without separately detailing their assessment.

Finding no basis to interfere with the award, it dismissed WPA 5957 of 2015; connected applications, if any, were disposed of consequentially.