AUTOMOBILE PRODUCTS OF INDIA LTD. versus RUKL\IAJI BALA AND OTHERS

S.C.R. SUPREl\IE COURT REPORTS

I think it right to add that the question as to the 1955 existence or admissibility of the concept of regional D. P.Joshi · domicile as distinguished from Indian domicile and as v. to the bearing of this on the meaning of the concerned The state of rule \vere not canvassed or suggested at the hearing ~Iadhya Bharat before us and that the Court has not had the benefit and another of arguments on these and the connected matters. If, J " -;;;; J therefore, I have ventured to differ, notwithstanding a.anna as • my respect for the views of the majority and potwith-standing out of the the conviction absence of that assistance the recognition, express from the Bar, it or is ' '. ··-implied, of regional domicile by decision ()f this Court would be contrary to the intendment of the· Constitution.

BY CoURT.::.:..In accordance with the opinion of the majority, the Petition is dismissed without costs.

Petition dismissed.

THE AUTO~IOBILE PRODUCTS OF INDIA LTD. v . .

RUKl\IAJI BALA AND OTHERS (And connected Appeal)

[S. R. DAs, BnAGWATI and SYED JAFER I~tAM JJ.]

Industrial Disputes (Appellate Tribunal) ti.ct, 1950 (XLVJII of 1950), s. 22-Whether Labour Appellate Tribunal has iurisdic· tion to impose conditions when granting pe1·mission-Industrial Di~ putes Act, 1947 (XIV of 1947), s. 83 and lndustrial Disputes (Ap· pellate Tribunal) Act, 19.50-S. 23-Jurisdiction of authority not only to decide whether there has been failure to· obtain permission but also to give decision on the merits of an industrial dispute-Indus-·trial Disputes Act, 1947 (as amended), s. 88 and s. 88·A-Ind1istrial Disputes ·(Appellate Tribunal) Act--Ss. 22 and 28-Meaning and scope of.

Held, (i) that the ordinary and primary jurisdiction of the . Labour Appellate Tribunal constituted under the Industrial Disputes · (Appellate Tribunal) Act, 1950 is appellate; (ii) that s. 22 of the Act confers on the appellate tribunal special jurisdiction which is in the nature of original jurisdiction; (iii) that s. 23 also vests in the tribunal an additional jurisdiction to decide the complaint as if it were an appeal pending before it; and (iv) that s. 23 confers on the

February 3

The Aidomobile l'roducts of - India Ltd. v. Rukmaji B:?la and ot:iers

workmen an additional remedy wliich ·they did not have under the Industrial Disputes Act, 194 7. ·

The t~o new ss. 33 and 33-A inserted in the Industrial Dis-putes Act 194 7 (XIV of 194 7) by Act XLVIII of 1950 confer dis· -~ tinct benefits on the workmen and give some additional jurisdiction and power to the authorities mentioned therein. Section 33-A en· joins the Tribunal decide the complaint "aSif it were dispute referred to or pending before it" and to submit· its award to the ap-. propriate Government and provides that the provisions of the Act shall apply to the awaaj. · The provisions of these two new ss. 33 and 33· 'of the 194 7 Act correspond to and are in pari materia with the provisions of ss. 22 and 23 of the 1950 Act and are more Or less in similar terms. ·

ban has been put by s. 22 of 1950 Act and. s. 33 of the 194 7 · Act upon the ordinary right, which the employer has under the ordinary law governing contract of employment with view to protect the workmen against victimisation by the employer and tO ensure the termination of the proceedings in connection with indus"' trial disputes in peaceful atmosphere and the only thing that the authority is called upon to do is to grant or withhold the permission i.e. to lift or maintain the ban. These sections do not confer any power on the authorities to adjudicate upon any other dispute.

Under s: 22 olthelndustrial Disputes (Appellate Tribunal) Act, 1950 (XLVIII of 1950) the Labour Appellate Tribunal has no juris· diction to impose conditions as pre-requisite for granting permis-sion to the employer to retre_nch its workmen.

Under s. 33·A of the Industrial Disputes Act 1947 ands. 23 of the 1950 Act the jurisdiction of the authority is not only to decide whether there has been failure on the part of the employer to obtain the permission of the authority before taking action but also to give decision on the merits of an industrial dispute and grant appropriate relief which when published by the appropriate Govern· ment will become enforceable uncler the respective Acts.

Serampore Belting Mazdoor Union v. Serampo1'e Belting Co., Ltd. ([1951] 1 Lab. L.J. 341), · Batuk K. Vyas v. Surat BorO'U!Jh Municipality ([1952] 54 Bom. L.R. 922), Raj Narain v. Employers' Association of Northern India ([1952] 1 Lab. L.J. 381), The Queen v. County Council of West Riding of Yorkshire ([1896] 1 Q.B. 386), · Carlsbad Mineral Works Co., Ltd. v. Their Workmen ([1953] 1 Lab. L.J. 85), Atherton West cf Co., Ltd. v. Suti Mill Mazdoor Union ([1953] S.C.R. 780) and Bhattacharji v. Parry cf Co., Ltd., Calcutta -([1954] 2 Lab. L.J. 635), referred to.

Ju~ISDICTION: Civil Appeals . ·

CIVIL· APPELLATE

Nos. 2 and 4 of 1955.

Appeal by Special Leave from the· Order. dated the 18th day of November 1954 of the ·Labour Appel-

S.C.R. SUPREME COURT REPORTS

late Tribunal of India, Bombay in Application (Misc.) Bombay No. 773 of 1954.

II. M. Seervai, /. B. Dadachanji and Rajinder Narain, for the appellant in Civil Appeal No. 2 of 1955 and respondent in Civil Appeal No. 4 of 1955.

D. H. Buch and /. N. Shroff, for the respondents in Civil Appeal No. 2 of 1955 and appellants in Civil Appeal No. 4 of 1955.

M. C. Setalvad, Attorney-General for India ( G. N. Joshi and- P. G. Gokhale with him), for the Intervener (Union of India) .

1955. February 3. The Judgment of the Court was delivered by

DAs J.-This is an appeal by special leave from the order of the Labour Appellate Tribunal, Bombay Bench, dated the 18th November 1954 which was made on an application made by the appellant com-pany on the 6th September 1954 under section 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950 (Act XLVIII of 1950) which is hereinafter refer-red to as the 1950 Act. The appellant company carries on business as as-semblers of motor vehicles from "completely knocked tlown" assemblies imported into India. There was some appeal pending before the Labour Appellate Tribunal arising out of disputes between the appellant company and its workmen. It is alleged that the name of the appellant company had been removed by the Government of India from the list of approved manufacturers maintained by them and that, in the result, it had been unable to secure further import licenses for the import of completely knocked down assemblies of motor vehicles and that consequently on and from the 1st November 1953 the company had to lay off number of its workmen, for it had to ope-rate the various departments of its factory at greatly reduced strength. As the appellant company saw no prospect of · any increase in the scope of its present operation which would provide employment for the workmen who had been laid off, it had become neces-

The Products Automobile oj . India Ltd. v. Rukmqji Bala and others

The Automobile · Pr0ducts ·of India Ltd. v. Rukmaji Bala and others

Das).

sary to retrench the wrokmen named in Annexure to the application. As those workmen were con-cerned with the appeal pending before the Labour Appellate Tribunal the company applied to the Appel-late Tribunal under section 22 of the 1950' Act for per-mission to retrench them.

The respondents through their Union, the Auto.: mobile Manufacturers' Empfoyees' Association, Bom-bay, filed written statement on the 1st November 1954 making diverse allegations against the company and contending that the company had itself to blame for having brought about the lay off. It was con: tended that there was no immediate cause for making the application, that the company was motivated by ulterior motives to deprive the workmen of their dues which even according to the company would become due and payable to the workmen on the expiry of the one year of the said lay off period. It was further alleged that in or about April 1954 the company re-called some of the workmen out of those who had been laid off since November 1953 · violating all princic pies on which recall should have been made ·and that by such arbitrary and unscientific recall the com-pany had imposed disproportionate work loads on the recalled workmen, thereby altering their conditions of service to their prejudice. The resp0ndents main-tained that the application was not maintainable in law, was mala fide and should be dismissed. In the penultimate paragraph of the written statement it was submitted that in the event of the Labour Appel-late Tribunal granting the permission in. whole or in part such permission should be granted subject to the following conditions :-

( 1) Payment of full wages with dearness allow-ance for the entire period of lay off;

(2) Payment of one month's notice pay and re-trenchment compensation at the rate of one month's wages including dearness allowance for every com-pleted year of service and part thereof in addition to the gratuity as per the scheme in force in the company; (3) Alternatively to (2) above and in case the Labour Appellate Tribunal took the view that the

S.C.R .. SUPRf.ME COURT REPORTS

lay. off was governed by section 25-C of the Industrial Disputes Act, 1947, payment of compens~tion at 50 per cent. of their wages plus dearness allowance for the entire period of lay off to the date of discharge in addition to the notice pay and gratuity as claimed in (2) above; and

( 4) Payment of leave wages as per existing rules, · taking the entire period of lay off· as sei:vice.

number of documents were filed in support of the respective contentions.

The Labour Appellate Tribunal at the very outset of its judgment under appeal states its finding . on the merits of the action proposed to be taken by the come pany as follows:-

"There can be little doubt that the retrenchment has been occasioned by the failure of the concern to secure sufficient work owing to absence of licenses from Government and, therefore, retrenchment must be regarded as inevitable and the application before us bona fide. Permission to retrench cannot be refused but for the reasons that we shall state hereafter we make that permission conditional upon the fulfilment of certain terms by the concern".

The company contended before the Labour Appellate Tribunal that its function, while dealing wit}l an ap-plication under section 22 of the 1950 Act, was only to give or withhold permission. This contention was rejected by the Appellate Tribunal with the following observation:-

"That view is quite untenable as has be~n re-peatedly held by this Tribunal.· We are the autho-rity tO whom an application has· to be made for per-mission to retrench, and when such an application is made we must of necessity exercise our ju<;lgment and discretion and satisfy ourselves that when the com-pany retrenches it does justice by its. employees". The Labour Appellate Tribunal was clearly influenced by the consideration which, stated in its own words was as follows:-· -"'

. "We do not think that we will-~~ advaµclng -th~ mterest of the employees or of the concern by refusing 5-90 S.C. India/59

The Automobile Products of India Ltd. Y.¥' Rukmaji Bala -and others Das J.

. ;1955

The Automobile~ Products of India Ltd. v. Rukmaji Bala and others

retrenchment because . the case for retrenchment has been established, and the sooner the workmen are allowed to leave and find for themselves ·other em· ployment the better for them. But in order to assure ourselves that on retrenchment the . employees receive what in justice they should have, we have decided to give permission to retrench subject to cer-tain conditions which m our view are inherent under the Act, and which apart from the Act we consider to be just and equitable m the particular c!fcum-stances of this case".

In this view of the matter the Labour · Appellate Tribunal definitely declined "to leave over the ques-tion of compensation for lay off as legacy of the present troubles; the employees to be retrenched have enough to worry them without having to make claims and have them decided after contest before Tribu-nal". In the result, the Labour Appellat~ Tribunal gave the appellant company perm1ss1on to retrench "subject to the terms and conditions of Act XLIII of 1953, provided that each workman is paid at the rate of half basic wages and dearness allowance for the whole period from the date of lay off up to thf date of retrenchmen~ (less sums already received as lay off compensation)". Liberty was given to the company to set off the lay off compensation pro tanto against the retrenchment relief given by the Act. Aggrieved by this decision the appellant · companv applied for and obtained from this Court special leave to appeal against this order. The respondents sub-sequently filed an application for special leave to ap-peal against this decision . in so far ·as the Labour Appellate Tribunal had not allowed their full claim as summarised above and m so far as the ·names of l 7 persons had. been struck off on the allegation of the company . that they were not workmen. This appli-cation of the respondents was also acceded to and the two appeals have been heard together. The Union of India asked for leave to intervene as important ques-tions of construction of the provisions of the Indus-trial Disputes Act, 1947 (hereinafter referred· to as the l947 Act) ·and the 1950 Act were involved. Such

leave was granted and we have heard learned counsel for the Union of India along with learned counsel for the parties. · The question as to the. propriety of permitting the names of 17 workmen to be struck off from the appli-cation has not been seriously pressed before us.· Only two questions have been canvassed at some length before us, namely:-• ·

(1) Whether under section 22 of the 1950 Act the Tribunal has jurisdiction to impose conditions when granting the permission asked for; and (2) Whether the conditions imposed in this case are in conformity with law.

It is plain, however, that in case the ·first question is answered in the negative,. the second question will not call for any decision on the present occasion.

In order to correctly answer the questions it will be necessary to bear in mind the general scheme of the two · Acts. · The purpose of the 1947 Act is, inter alia, to make provision for the investigation and settle-ment of industrial disputes. In order to achieve this avowed object different authorities have been consti-tuted under this Act. Thus section 3 provides for the constitution of Works Committee whose dutv is to promote measures for securing and preserving amity and good relations between the employers and work-men. The appropriate Government is authorised by section 4 to appoint conciliation officers charged with the duty . of mediating irt and promoting . the settle-ment of industrial disputes and by section 5 to consti-tute Board of Conciliation for promoting the · settle-ment • of industrial disputes. Section 6 · empowers the appropriate Government to · constitute Court of Inquiry for enquiring into any matter appearing to be connected with or relevant to an industrial dispute. Finally, section 7 provides for the constitution of fndustrial Tribunals for the adjudication of industrial disputes in accordance with the provisions of the Act. Section · 10 of this Act provides for reference of disputes to Board, Court or Tribunal. It will be ·noticed that under this section it is the appropriate

T ht Automobile Products of ltidia Lid. v. Rukmqji Bala and ofhers DasJ

1955 Th"e Automobile Products, of India Ltd .. y; Rukmaji Bala ·and others Das•]f •

Government which alone can make the reference and set the authority in motion. The procedure, powers and duties of conciliation officers, Boards, Courts and Tribunals are elaborately prescribed and defined in sections 11 to 15. It is to be noted that the concilia-tion· officer, Board, and Court are required to make report to the appropriate Government while the Tri-bunal is enjoined to • submit its award to the ap-propriate Government. The report · of Board or Court and the award of Tribunal .are under section 17 to be published by the . appropriate .Government with-in month from the date of their receipt. Section 17-A provides that the . award of Tribunal shall be-come enforceable on the expiry of 30 . days from the date of its publication and, subject to the provisions of sub-section (1) shall come into operation from such date as may be specified therein and if no date is so specified from the date when the award becomes en-forceable as aforesaid. Section 19 prescribes the period of operation of settlements· and awards. Chapter V deals with strikes · and lock-outs. Sections 26 · to 31 which are grouped together under the· heading "Penal-ties" prescribe punishments. Section 31(1) provides that any employer who contravenes the provisions of section 33 shall be punishable with imprisonment for term which may extend to 6 .months ·or with fine which may extend to Rs. 1,000 or with both. Section 33, contravention of which is made· punishable by section 31, as it stood before 1950, · forbade an emplo-yer, during the pendency of any conciliation proceed-irigs or proceedings before Tribunal,. to alter, ·to the prejudice of the workmen concerned . in tl1e dispute, the conditions of service applicable to them immedi-ately before such· proceedings, nor, save with the ex-press ·permission: of the conciliation officer, ·Board or Tribunal, as the· case may be, to. discharge, dismiss or otherwise punish duririg the pendency of the proceed-ings any workman, except for ·misconduct not con-nected with the dispute; It may be noted that ·under this section the .ban on the alteration · of the· condi-tions of service was absolute and that permission was necessary only iri case of discharge or dismissal or

·--..... ~

·s.c:R. SUPREME COURT REPORTS

· punishment · and · even in · such case no permission was necessary when the workman· was guilty ·of miscon-duct not concerned with. the· pending dispute. The only deterrent against contravention by an emplo-· yer of the provisions ·of section 33 · was the prosecution of . the employer under section 31. This was hardly any consolation for the workmen, for if ·an employer took the risk of prosecution and acted in contra-vention of section 33 the workmen could only raise an industrial dispute and ask the appropriate Government to refer· the same to Tribunal but if the Govern-ment declined to accede to. their prayer the· workmen were without · any remedy. This . was · the position under the 1947 Act before it 'was amended in 1950. The 19;50 "_Act was enacted for establishing an Ap-pellate • Tribunal . in relation. to industrial . disputes. Chapter II of the Act deals with the constitution, composition. and functions of the ·appellate tribunal. Section 7 .formulates the jutisdictiori · of the , appellai:e tribunal. Section 9 confers on the appeljate tribu-nal all. the powers which are vested . in Civil Court when hearing_ an appeal under the Code· of Civii Pro-cedure, 1908. . Section 10 prescribes the .period of limitation within which appeals are. to ·be brought before the appellate tribunal.· Under · section 15 ·the decision of. the appellate. tribunal becomes enforceable on. t}ie . expiry of 30 days from the date of its pro-nouncement,. provided that where . the appropriate Government is of opinion that it would be inexpedient, on public grounds, to "give effect to the whole or . any part. of the decision the appropriate Government may; before the expiry of the said. period of 30 'days, by order in the Official Gazette either reject the decision or modify it. Section 22. of. this Act provide.s: · "22. During the . period . of thirty days allowed for the .filing of an appeal under section 10 or during the pendency of any appeal under this Act, no .em-ployer shall-. . (a.) alter, to the prejudice . of .the workmen concerned in such appeal, the .conditions of . service applicable to them immediately before. the ·filing of such appeal, or

TM Automobile ['roducts of India Ltd. .Y· Rukmaji Bala aTUi others D~s J.

The Automobile Products of India Ltd. ·v. Rukmaji Baia and others ·Da;J.

( b) discharge or · punish, whether by· dismissal or otherwise, any workmen concerned in such appeal, save with the express permission in writing of the Appellate Tribunal". Section 23, on which reliance is placed by learned counsel for the respondents and for the intervener, reads as follows:-"23. Where an employer contravenes the provi-·sions of section 22 during the pendency of proceedings before ·the Appellate Tribunal, any employee aggrieved by · such contravention, may make · complaint in ·writing, · in the prescribed manner to such Appellate Tribunal and on receipt of such complaint, the Appel-late Tribunal shall decide the complaint as if it were an appeal pending before it, in accordance with the . provi5ions of this Act and shall pronounce its decision thereon · and the provisions of this Act .shall apply accordingly". Section 29 of .this Act provides for penalty for con-travention of the provisions of section 22, namely, imprisonment. for . term which may extend to six months,. or with fine which may extend to one thousand rupees, .or with both. From what has been stated so far four things are to be noted, namely, (i) that the ordinary and primary jurisdiction of the appellate tribunal is appellate, (ii) that section 22 of this Act confers· on the appellate tribunal special jurisdic-tion which is in the nature of original jurisdiction, (iii) that . section 23 also· vests in the tribunal and additional jurisdiction to decide the complaint as if it were an appeal pending before. it; and (iv) that sei:tion 23 confers on the workmen an additional remedy which they did not have under the 1947 Act. To fill up the lacuna in the 1947 Act section 34 of the 1950 . A.ct provided for certain amendments of the 1947 Act. Amongst other things, it substituted new section for the old section 33 ·of the 1947 Act. The new ·section 33 runs as follows:-"33. During the pendency of any conciliation proceedings or proceedings before Tribunal in respect of any industrial dispute, no employer shall-

S.C.R. SUPREME COURT REPORTS

(a) alter, to the prejudice .of the w~rkmen con-cerned in such dispute, the conditions of service applicable to them immediately before the commence-ment of such proceedings; or . · ( b) discharge or punish, whether by dismissal or otherwise, any workman concerned in such dispute, save with the express permission in writing of the conciliation officer, Board or Tribunal, as the case may be". It will be noticed that this section has made several changes. Thus under this section provision is made for obtaining permission as . condition precedent both for altering the conditions of service and for dis-charging or punishing the workmen and no exception is made for case of misconduct unconnected with the pending dispute. Besides this,, the following new section was added to the 1947 Act as section 33-A :".33-A. Where an employer contravenes the pro-visions of section 33 during the pendency of proceed-ings before Tribunal, any employee aggrieved by, such contravention, may make complaint in writ-ing, in the prescribed manner to such · Tribunal and on receipt · of ·such complaint that Tribunal shall adjudicate upon the complaint as if it were dispute referred to or pending before it, in accordance with the provisioris of this Act and shall submit its award to the appropriate Government and the provisions· of of this Act shall apply accordingly". It may be pointed out that the new sections 33 and 33-A thus inserted into the 1947 Act confer distinct benefits on. the worki:nen and give some additional jurisdiction and power to the authorities mentioned therein. Section 33-A ·enjoins the Tribunal to decide the complaint '.'as . if it were dispute referred to or pending before it" and to submit its award to the appropriate Government and provides that the provisions of the Act shall apply to the award. It is quite clear that the provisions of these two· new sections 33 and 33-A of the 1947 Act correspond to and. are in pari materia with the provisions of sec-tions 22 and 23 of the. 1950 Act and are more or less. in similar terms. The question for our coriside-

The Automobile Products of India Ltd. v. Rukmaji Bala and others Das J.

1955 --·-The Automobile Products· of India Ltd. v. Rukmaji Bala and· others Das].

i252 SUPREME COURT REPORTS [1955]

ration is : . What are . the meaning, scope and effect of these sections.

cursory perusal of section 33-A of the 1947 Act as well as section 23 of the 1950 Act will at once show that it is the contravention by the employer of the provisions of . section 33 .in. the first case and of section 22 in the second case that gives rise to. cause of ac-tion in favour of the workmen to approach and move the respective authority named in the section and this contravention is . the condition precedent to the exercise · by the authority concerned of the additional ju~isdiction and powers conferred on it by the sections. The authority referred to in the sections · is, as we have seen, Court of limited jurisdiction and must accord-illgly be strictly confined to the exercise of· the func; tions and powers actually conferred ori it by the Act which constinited it. What, then, are the scope ·and ambit of the functions and powers with which it has been vested- by these sections? .

When an employer contravenes the provisions of section 33 of the 1947 Act or of section 22 of the 1950 .Act the workmen affected thereby .. obviously have grievance. That grievance is two-fold. In the first place· it is that -the employer has taken prejudicial action against them without the-express permission in writing -of the · authority concerned and . thereby deprived· them of the salutary safeguard which the legislature has provided . for their protection against victimisation. In the second place, and . apart from the first grievance which may be called the statutory griev-ance; the workmen -may also have grievance on merits· which may be of much more seriousness and gravity for. them; namely, that in point of fact they have been un-. fairly dealt with in that their interest has actually been prejudicially affected -by the highhanded act of. -the .em-ployer. These . sections give the workmen -the right to move· the authority by lodging complaint befor.e it .. This is distinct 'benefit. given to them, for, as we have seen,-· apart from these sections, the. workmen have. no right to refer. any dispute. for adjudication. This com-plaint · is required ·to be made in the prescribed manner.. Form DD ·prescribed. by ·rule 51-A -of the .Industrial:

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Disputes (Central) Rules, 1947, framed 'under section 38 of die 1947 Act, like Form prescribed under sec-tiop 35 of the 1950 Act, requires the complaining.work--men -to show ui their petition of complaint not only the manner m which the alleged contravention has taken place but also the grounds on which the order or the act of the · management is challenged. This clearly indicates · that the authority to whom the complaint is made is to decide both the issues, ~amely (1) the fact of contravention and (2) the merits of the act or order of the employer. It is also clear that under section 33-A of the 1947 ·Act the authority is to adjudicate upon the complaint "as if it· were dis-pute referred to or pending before it" and under sec-tion 23 of the 1950 Act the · authority is to decide the complaint "as if it were an appeal pending before it". These· provisions quite dearly indicate that the juris-diction of the authority is ,not only to decide whether there has. been a, 'failure on the part of the employer to obtain the permission of the authority before tak-ing action but also to go into the merits 6,£ the com-plaint and grant appropriate . reliefs. The ext_reme contention that .under section 33-A of the 1947, Act, on hnding that there has been 'a contravention of t_he provisions of section 33, the Tiibunal's duty is ~mly to make declaration · to that effect, leaving the workmen to take such steps under the Act as they may be advised to do, . has beeri negatived by 'the Labour Appellate Tribunal in Serampore Belting Maz-door Union v. Serampore Belting Co:, Ltd.([1 ]) and by the Bombay· High Court in Batuk K. Vyas v. Surat lforough Municipality( i ). The same principle has been accepted and . applied by Full Bench of the Labour Appellate Tribunal' to case under section 23 of the 1950 Act in Raj Narain v. Employers' Association of Northern India( [3 ]). We find· ourselves in agreemeni: with . the construction placed upon section '33-A of the }947 Act and section 23 of the 1950 . Act by these deci-sions. ln our view the scope and ambit of. the· juris~ diction conferred on the authority ' named ill those (I) [i95J] 2 L~·b.L.J. 341. , (2) [1952] 54 Bom. L. R; 922; (3) [l!l,52] I Lab. L.J. 381.

The Automobile Products of India Ltd. .v. Rukrnaji Bala and others Das J.

ThtJ Automo'bile · Products ef India Lid. v. Ru!maji Bala and others ·Das].

1254 SUPREME COURT. REPORTS

sections is wider than that conferred ·on the Criminal Court by section 31 of the 1947 Act and section 29 of the 1950 Act. The Criminal Court under the two last mentioned 5ections is only concerned with the first issue hereinbefore mentioned, namely, yea or nay whether there has been ·contravention of the respect-ive provisions of the sections mentioned therein, b11t the authority exercising jurisdiction under section 33-A of the 1947 Act and se-ction 23 of the 1950 Act is to· adjudicate upon or decide the: complaint "as if it were dispute referred to or pending before it"· in the first case ·or "as if it were an appeal pending be-fore it" in the second case. The authority is, there-fore, enjoined to go into the merits of the act com-plained of under section · 33-A of the 1947 Act and section 23 of. the 1950 Act. In this sense the jurisdic-tion of the authority nanied in these two sections is certainly wider than that of the Criminal Court exer-cising jurisdiction under the penal sections . referred to above. Having regard to the scope of the enquiry under section 33-A of the 1947 Act and section 23 of the 1950 Act it must follow that the power of the authority to grant relief must be c<>oextensive with its power to grant relief on reference made to it ar .on an appeal brought before it, as . the case may be. The provision that the authority concerned must submit its award to the appropriate Government and that the provisions . of the respective Acts would be appli-cable thereto also support the view that the decision of the authority is to partake of the nature of deci-sion on the merits . of an industrial dispute which when published by the apprnpriate Government will become enforceable · under · the respective Acts. It follows, therefore, that the authority referred to in these sections. must have jurisdiction to do complete justice between the parties relating. to the matters in dispute and must have. power to give such relief as the nature of. the case may require and as is also indicated by the prayer clause mentioned. in the tw'o Forms DD and referred w above. In short, these two sections give to the workmen direct right to approach the Tribunal or Appellate Tribun.al for the

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redress ·of their grievance without the intervention · of the appropriate Government which they did· not pos-sess before 1950 and they provide for speedy deter-mination of disputes and avoid multiplicity of proceed-ings by giving complete relief to the workmen in rela-tion to their grievances arising out of the action taken by the employer in contravention · of the provisions of the relevant sections. It is significant that this juris-diction or powers has been vested in the. Tribunal or Appellate Tribunal whose normal duty ·is to decide or adjudicate upon industrial disputes and not · on any conciliation officer or Board who are normally charged with the duty of bringing about settlement of· dis-putes.·It is submitted by learned counsel for the Respon-dents and of the intervener that the scope of section 33 of the 1947 Act and of section 22 of the 1950 Act is precisely the same as that of section 33-A of the 1947 Act .and . section 23 of the 1950 Act. The argu-ment is that the two last mentioned sections were en-acted only in order to afford an opportunity to the workmen to . do what they had beei;i. prevented from doing at the earlier stage by reason of the · employer taking the law into his own hands and taking action against them without previously obtaining the sanc-tion of the appropriate authority to do so.. If the law permits the workmen to ventilate their grievances at later stage under section 33-A of the 1947 Act and sectio.n 23 of the 1950 Act there can be no logi-cal reason why the law should not permit them to do so at the earlier stage under section 33 of the 1947 Act and section 22 of the 1950 Act. It is submitted that the purpose of labour legislation being to main-tain industrial . peace and restore amity and goodwill between the employer and his workmen, it should be the attempt of the Tribunal or the Appellate Tribu-· nal at every stage to try to resolve all disputes which are connected with the matter which is brought be-fore it. Finally, it is urged that whenever an autho-rity is . vested with the power· to do pr not to do an act it must be regarded as having , discretion and

The Automobile .Products of India Ltd •. v. Rukmaji Bala and others Das].

The Automobile Products of India Ltd. .v. Ru.kmaji Bala ana .others Das J.

·that iri exercise of such ·discretion · the ·authority must be presumed to be ve·sted with power to impose suit-able· coriditions. Reliance· is placed· on the decision in The Queen v. · Couilty Council of West Riding of' York-shire( [1 ]). The argument ·is that the authority con' cerried rriay under section 33 of the 1947 Act and sec-tion 22 · of the· 1950 Act grant by· way of imposing conditions the same relief which it can grant to the workmen under section 33-A of the 1947 ·Act and sec-tion 23 of the 1950 Act. We are unable to accept this contention as correi:t for" reasons which we now proceed to state.

The object of section 22 of· the 1950 Act like that of section 33 of the 1947 Act as amended is to protect the workmen concerned . in disputes which form the subject-matter of pendin_g proceedil}gs against victimi-sation by t!ie employer .on account - of. t1ieir having ra.ised industrial . disputes or. their. contim/ing .th~ pend~ ing proceedings. It . is further the object of the two ·sec-tions to ensure th~t proceedings: in . connecri~n "'.ith in'. dustrial disputes already . pending sjiould . be_ bro.ught to termination· in. a. peacef!-11 atmosphere and . that no employer, should during the pendency of those pro-ceedings take any action of the kind mentioned in the sections . which,' may give ' rise to fresh. disputes likely to further exacerbate the already strained rela-tion between the employer and the workmen. To. achieve· this. object.· a. ban ,has been imp9sed. upon the. ordinary right which the employer has under the ordinary ,l~w governing' 'contract ' of . employment. Section 22 of the 1950 Act and section 33 of the 1947. Act "'.hich impose the ban also provide for the removal of that ban bl;' the granting of express per: mission in writing in appropriate cases by tlie autho-rity . mentioned therein. The : purpose · of . the.se . t:Wo sectiOD.s heirig to determine 'whether • the ban should· be removed. O( not, , all that is . required , of the authO:. r!tj · exercising furisdiction under these sections. is to accord . or withhold .. permission. And . so . it has. been held-we .. think . rightly-by the Labour . Appellate Tribunal in Carlsbad Mineral _Works .·co. Ltd . .v. T,heir

(I) [1896) 2 Q.B. 386.

s.c.R ..

Workmen (1) which was case under section. 33 of the 1947 A~i:. Even cursory persual of section 33 of the 1947 Act will make · it clear that the purpose of that section was not to confer any. general power of adjudi-cation of. disputes. It will be noticed that under sec-tion 33 of the 1947 Act the authority invested with the power of granting or withholding permission is the conciliation officer, Board or Tribunal. The . conci-liation officer or the Board normally has no power, under the 1947 Act, to de~ide any industrial:· dispute but is only charged with the duty of bringing about settlement of dispute. It is only the Tribunal which can by its award decide dispute referred .to it; Section 33 by the same language confers . jurisdiction and power on all the three authorities. Power being thus conferred by . one and the same section,· it cannot mean one thing in relation to the conciliation officer or the Board and different and larger thing in rela-tion to the Tribunal. There is no reason to think that the legislature, by side wind as it' were, vested in the conciliation officer· and the Board the jurisdic-tion and power of adjudicating upon · disputes which they normally do not possess and whfrh they may not be competent or qualified to exercise. Further, if the purpose of the section was to invest all the authorities named therein with power to 'decide indus-trial disputes. one . would have . expected . some provi-sion enabling them to make and submit an award to which the provisions of the Act would apply such as is provided ·in · ~ection 33-A of the 1947' Act or section 23 of the 1950 Act. There is no machinery provided in section 33 of the 1947 Act or section 23 of the 1950 Act for enforcing the decision of the authority named in those sections. This also indicates that those sec-tions only impose ban on the right of the employer and the only thing that the authority is called upon to do is to grant or withhold the permission, i.e. to lift or maintain the ban. And so it has been held by this Court in Atherton West & Co., Ltd. v. Suti Mzll Mazdoor Union( [2 ]) which was case under clause 23 of the U. P. Government Notification quoted on p. 785. (1) [1953] 1 Lab. L.J. 85. (2) [1953] s.c.R .. .. 780, 786-7.

(2) [1953] s.c.R .. .. 780, 786-7.

The Automo~ile -Products of India Ltd. v: Rukmaji Bala and others Dat"J.

1955 T lit Autrnnobi/e · Produ;IJ, of India Ltd. v. Rukmaji Bala and othtrs Pas J•

Section 22 of the 1950 Act is in pari materia with sec-tion 33 of the 1947 Act and the above clause . 23 of the U. P. Government Notification and most of .the con-siderations noted above. in connection with these pr°" visions apply mutatis mutandis to .section 22 of the 1950· Act. Imposition of conditions is wholly collateral to this purpose and ·the authority cannot impose any condition. And it has been so held-we think cor-rectly-in G. C. Bhattacharji v. Parry & Co., Ltd., Calcutta(.'). In view of the scheme of these Acts sum-marised above and the. language of these sections the general principle laid down in the case of The Queen v. The County Council of West Riding supra can have no application to case governed by these sections. In our judgment the Labour Appellate Tribunal was in error in holding that it had jurisdiction to impose conditions as prerequisite for granting permission to the company to retrench its workmen- and the first question must be answered in the negative.

In the view we have taken on the first question we do not consider it necessary on this occasion to express any op1mon on the other ·question canvassed before us.

The result, therefore, is that this appeal is allowed and .the decision of the Labour Appellate Tribunal is set aside and the matter is remanded to the Labour Appellate Tribunal to de:il with the application of the company and make the appropriate order. accord-ing to law. In the ·circumstances of this case we make no order as to ·costs. Appeal No. 4 of 1955 is dismissed also without costs.