PREMIER AUTOMOBILES LTD. versus KAMLEKAR SHANTARAM WADKE OF BOMBAY & ORS.

PREMIER AUTOMOBILES LTD.

KAMLEKAR SHANTARAM WADKE OF BOMBAY & ORS. August 26, 1975

(A. ALAGIRISWAMJ, P. K. GOSWAMI AND N. L. UNTWALIA, JJ.]

Industrial Disputes ct, 1947-S. 18 ( 1 )-Agreenlent under-Dispute bet-· ween eniployer C!lld empfoYee in relation thereto-Whether could be decided by Ci\·il Court.

Jurisdiction of Cil'il Court in relation to an industrial dispute-Principles .

Industrial Disputes, Act, s. IDA-Suit for enforcement of arbitration-Jurisdlction of Civil Court to try .

The Industrial Disputes Act was enacted to make provEsion for the investi--gation and settlement of the industrial disputes. The Act envisages collective bargaining, contracts between the workers' unions and management and the like: which are n1at1ers outside the realnt of the con1mo11 law or the law of contracts .. fhe Act defines an industrial dispute and what the term "settlement" means. Different 2uthorities have been created at different levels for settlement and adjudication of industrial disputes, conferring on them varied and extensive· powers. \Vhere dispute between the workers and managen1ent cannot be re-solved by the conciliation procedure envisaged under the Act, the dispute is. referred bv the Government to Labour Court or Tribunal. the award of" which becomes final and cannot be called :n question by any court in any manner whatsoever. Under s. 18(1) settlement arrived at by agreement between the employer and \.vorkmcn, otherwise than in the course of conciliation proceeding.-shall t.= binding on the parties to the agreement.

In one of the departments of the appellant there were three groups of workers : One, the workers' union which was earlier recognised as "trade union, and was derecognised by the appellant, and secondly another union which was re~ cognised in its ()lace and thirdly workn1en who were members of neither union. As result of settlement entered into with the derecognised union an incentive scheme was in force in this department of the appellant. After the derecogn~tion of the union, because of the increase in the strength of the workmen it became necessary for the company to revise the target figures of the incentive scheme. The company, therefore, entered into ~ttlement with the union recognised later. This led to protests from; the de-recognised union. Respondents 1 and 2 who were members of the derecO@ised union, instituted suit.in the Civil Court under O. I r. 8 of the Code of Civtl Procedure in· representative capacity alleging that the earlier settlement was contract of service and that the new settlement would. bring about change in their service conditions, that the new settlement was arrived at without following the mandatory requ£rements of s. 9A of the Act and-have prayed for permanent injunction to restrain the appellant from implement-ing the later settlen1ent. During the- trial the plaintiffs stated that they did not wish to enforce the first agreement as it would not be binding upon the workmen who were the members of the derecognised union. This led to dropping the issue relating to nonMcompliance with s. 9A of the Act also.

The trial court held that it had jurisdiction to try the suit as it was suit of a· civil nature for enforcement of rights of common and general law and conse-quently there was no question of reliefs being cla'.med under the Industrial Dis-· putes Act. Treating the incentive payments made during the years when the first agreement was in force as imolied terms of conditiom of service and trial court granted conditional decree of iniunction. On appeal, the High Court upheld the view of the trial court. On further appeal to this Court it was contended by the respondents that the remedv provided under the Industrial Disputes Act was misnomer in that reference of an industrial dispute for adjudication to tribunaf

·would depend upon the exercise of the power by the Government under s. !O• l_l ·Of the Industrial Dispu~es Act. The Act Uid not confer any right on the suit0r.

Allowing the appeal,

HELD: The suit for decree for pern1anent injunction was not ma:.ntC1in;:1Li!c jn the civil court as it had no jurisdiction to grant the relief or even te1npor.:r} ;relief. [448C-DJ

(1) The principles applicable to the jurisdicEon of the civil court in relation ·to an industrial dispute are, (i) if the dispute is not an industrial dispute nor do(:-. it relate to enforcen1ent of any other right under the Act the remedy lies. ont;. in the civil court; (ii) if the dispute is an industrial dispute arising out of right or liab'.-lity under the. general or common law and not under the Act, the jurisdic-tion of the civil court is alternative. leaving it to the election of the suitor con-r.cerned to .:hoose his remedy for the relief which is competent to be granted in particular remedy; (iij) if the industrial dispute relates to the enforce_q1ent of right or an obligation created under the Act then the only remedy available to ·the suitor is to get an adjudication under the Act; (iv) if the right which is sought to be enforced is right.created under the Act such as Chapter VA then Lhe remedy for !ts enforcement is either s. 3 3C or the raising of an indtt<;tria1 di.,putc. 'as the case may be. [446A-D] Doe v. Bridge.~ (1831) 1 B. & Ad. 847: Pas1nore and ot!r'ers v. The Os1ra!dt-lt'ist!e Urban District Council (1898) Appeal Cases, 387; Cutler v. Wandsworth Staditun Ltd. (1949) Appeal Cases 398; Wilverhan1ption New Waterwotks Co. v. Hawkesford (1859) 6 C.B. (N.S.) 336; Naville v. Lo1ulo11 "Express", .Vcw.1--paper Ltd. (1919) Appeal Cases 368; Peebles v. The Oswaldtwistle Urban Dis-rrict Co1111cil (1897) 1 Queen's Bench, 625; Barraclough v. Brown and others (1897) Appeal Cases, 615; Solo111011s v. Gertzenstein Ltd. and otl1ers (1954) :! ·weekly Law Reports, 823; Soutlnrark London Borough Council v. JVii!ia11B and another (1971) 1 Chancery, 734; Ste1•e11s v. Chown (1901) 1 Chancery. 894: E111peror of Austria v. Day (1861) 3 D.F. & J. 217, 253; Carlton lllustrator.1 and another v. Co/en1a11 & Co111va11y Lin1ited (1911) 1 King's Bench 771: PYX Granite Co. Ltd. v. Ministry of Housing and Local Govenunent and others (1960) Appeal Cases 260; Duchess of Aroyl/ v. Duke of Argyll and others (1967) 1 Chancery, 302; Polland v, Photographic Con1pa11y (1889) 40 Chancery DiYhion 345.

State of Bo111ba-y v. K. P. Krish11a11 and other.~ (1961} 1 S.C.R. 227 and Bon1-bav TJ11io11 of Journalists & Ors. v. The State of Bo1nbav & Anr. [1964] 6 S.C.R. '22; K. S. Venkataran1a11 & Co. v. State of Madras [1966] 2 S.C.R. 229; SecrcHary of State Represented hy the Collector of South Arcot v. Mask and Co111pa11y 67 Indian Appeals, 222; Raleigh I111·estn1e111 Coy. Ltd. v. Governor General in Coun-,.cil, 74 Indian App~a]s. 50'; Fi)·n1 c•nd lllu.ri Subbayya Chetty and Sonv \". The State of ndhra Pradesh [1964] 1 S.C.R. 752; Finn Sethi Radha Kisha11 (de-ceased represented by Hari Kishan and others v. The Adn1il1istrator, M1111icipaf Co1n111i1tee, Ludhiana [1964] 2 S.C.R. 273; Bharot Kola Bha11dar Ltd. v. Muni-cipcd Conunittee. Dlia1nangaon [1965] 3 S.C.R. 499; Kan1la Mills Ltd. v. State of Bon1bay [1966} 1 S.C.R. 64; State of Kerala v. Rarnaswa1ni Iyer & Sons [19661 ·3 S.C.R. 582; Pab·bojan Tea Co. Ltd. etc. v. The Deputy Com111issioner, Lakhiln-pur etc. [1968] 1 S.C.R. 260; Dhulabhai and others v. The State of Madhya Pra-desh and a11other [19681 3 S.C.R. 662 and U11io11 of India v. A. V. ]\larasioi!uilu (1970] 2 S.C.R. 145, referred to.(2) Jn the present case it is c1ear that what the plaintiff, respondents \.\·antt'd to prevent was the threatened breach of their right which flo\ved fron1 the agrct:--n1ent entered into be'ween the derecognised union and the company. Such co11ec. tive agreement is recognised and creates right in favour of the men1bers of the -Union 011/y under s. 18(1) of the Act and not under the general Jaw of contrnct. Withdrawal of the claim based upon the said agreen1ent from the trial court had -no effect on the question of its jurisdiction to try the suit._ In so far as the suit ·was filed io. representative capa..:ity on behalf of the members of the derecognised

. union bv hvo of its members under. 0.- I r. 8 of the Code it was clearly suit ill' relation to the exercise of right. created under the Act. In_ their case it 'vas not permissible to fall back. upon: the alleged implied terms. and cond~ions of se.rvice. The source of their right was that agreement. Even the· workmen who v.·ere· not members of the derecognised union but were given the benefit of incen-tive payments under the said agreement were so _given because they tacitly agreed to be bound_by the agreement. __ Even accepting that in the£r case it had assumed the character of an imnlied term of contract of service. the alternative claim ··made in paragraph 8 of the plaint as being .condition· of service otherwise, can be referable to the claim Qf the. non-members only.· .The source of their right m that event was different and representative suit on their behalf .by the two plain-tiffs could not be_ maintained. The nUmer()us persons must have the same inte-rest in one suit instituted under 0. I r. 8 of the Code. Persons having d'.fferent interests cannot be so rep1tsented .. The better and more reasonable view. there-for~. that all workmep represented· by the hvo plaintiffs sought an ·Order of injunction in the civil court to prevent an injury _,vhich was proposed to be caused to them in relation to th~ir right under the Act. [447E-H, 448AB]

(3) The. dispute could well be "deCidcU:frorn all aspects in reference Under the Act. Although the issue as to the non-compliance with the requirements of s. 9A of the Act v.·as dropped. the trial court ·set!Il1S to have found that the pro-posed change in the conditions of service was adverse to the interests of the work-men. -\Vhether it was so Qr not is matter of debate. But it is apparent tha.t · both th~ agreen1enls could not be s:.multaneously _given effect to. The result of · the order of injunction made by the trial collrt was that the workmen represented by the two plaintiffs \Vere to get incentive payments in accordance \\[1]ith ·. the scheme embodied in the earlier agreement ignoring the addition to the· strength of the workmen. On the other band, the members of the recognised un!.on who ··had entered into the second agreement were to get their incentive payments in a.::cordance with ihat agreement taking into account the contribution made in the r.1atter of production by the newly added workmen. This leads to an impracti-cable result. [448C.GJ ·

(4) Section 4l(a) of the Spec!.fic Relief-Act says that an injunction cannot be g:anted to prevent breach· of contract "the performance of which would not be ~;:-oecifically enforced. Section 42 providing an exception to this is not attracted in this case. Section 14(1)(c) says that contract which is in its nature deter-minable ca.'l.Dot be specifically enforced. The contract in question emb01.1ied in the earlier agreement was in its nature determinable under s. 19 (2) of the Act or could be varied by following the procedure under s. 9A. The decree or order of injunction made _therein, is not sustainable on this account too. [4481-1, .449ADJ(5) It cannot be said that remedy provided under the Industrial Disputes Act :_., misnomer. Reference of industrial disputes for adjudication in exercise of the oower of the Government under s. 10(1) is so common that it is difficult to· call the remedy misnomer or insufficient or inadequate for the purpose of en-forcement of the right or liability created under the Act.-The -eri.forcement of right or an obEgation under the Act. the remedy provided uno fiatu in it is the ex-c!psive remedy. -. The le.gisl.ature in its wisdom did not think it fit and proper to provide very easy and smooth remedy for enforcement of the rights and obli-gation-; created under the Act. Persons w!shing the enjoyment of such rights and \Vanting its enforcement must rest content to secure the remedy pfovided by the Act. The possibility that the Government may not ultimately refer an industrial disput~ under. s. 10 on the ground of expediency is not relevant consideration in -this regard. [439C-F]

(6) The pr:ncip.le of separate remedy only for the purpose of injunction avail--abie in court of Chancery, which was kept intact even after the jUdicature Act of 1873 is not applicable in India. In India, under.s. 9 C.P.C. courts have, sub-ject to certain restrictions, jurisdiction to try suits of civil nature excepting suits of which their cognizance is .either expressly or impliedly barred. If suit in rclatI.on to an industrial disoute relates to the enforcement of right created u:lder the Act by necessarv intendment. the jurisdiction of the civil court is barred. ·Tuat being so. in India. it is barred for all purposes and suit for in-14-L839SopCl/75

junction -only would not lie. The jurisd:Ction of- the civil couft in India to grant relief of injunction is limited to cases in which there is right at law .. that is to.say, right to~~ pursued. in such court._ [440C..H]

Kn"slznan· and another v. East India Distilleries and Sugar Factories.· Ltd. Nellikuppam tlnd another (1964) 1 L"abour Law Journal 217; Madura Mills Com-pany, Ltd. v. Guruve1n111a'l and another_ (1967) 2 Labour Law Journal 397; Nip-nani Electriciry Con1pany (P) Ltd. (by its director, V.R. Patravali) - and an-other v; Bhimarao Lax111an Patil and others (1969) 1 Labour La\V Joumal 268; The Pigment Lakes and Che111iclll Afanufacturing Co. Private Ltd. v. Sitaram Kasliiram Konde 71 Bombay Law Reporter 452, and Nanoo Asani Jtfadhavan v. State oJ Kerala and others (1970) 1 Labour Law Journal 272. referred to.

Bidyut 'Ku1nar:,Chatterjee and others v. Commissioner for the Port of Cal-cutta (1970) 2 Labour Law Journal. 148. over ruled.

(7) (a) The manu.er of voluntary reference of indllstrial disputes to arbitra-tion is prOYided in s. IOA of the Industrial Disputes Act. The reference to arbi-tration has to be on the basis of written agreement between the employer and · the workmen. As prov~ed in s. IOA(S) of the Industrial Disputes Act, nothing in the Arbitration Act, 1940 shall apply to arbitrations under s. lOA of the Act.

and · of the Act. the Act. =~ ;::~/~·;::~/~·. Board Of

9=~ ;::~/~·;::~/~·

. (b) Where "'ritten agreement was executed,.according to .whi[:9=~ ;::~/~·;::~/~·agreed to refer dispute. regarding dismissal of certain workmen to a. Board Of Arbitrators consisting of three persons and the employer tenmnates the Bettle-ment under s. ·19(2) of the Industrial Disputes Act and later withdra\VS its nomi-. . · . nee from the Board of Arbitrators. suit filed in civil court by the employees challenging the action of the employer and for direction to restr<i.n the employer from -committing breach of the agreement and to point its nominee in the place of the one v:ho had withdrawn. such suit is in relation to the enforce-ment of right created under the Act. In such case the remedy in crvil court is barred. The only remedy available to the workmen concerned \Yas the raising of an industrial dispute. [450BCDJ -E Soutli Indian Bank Ltd. v. A. R. Chacko [1964] 5 S.C.R. 625, referred to. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 922 of 1973. )' Appeal by special leave from the judgment and order dated the 13th and 15th, February, 1973 of the Bombay Him Court in L.P.A. No. 74 9f 1972. and · · -F Civil Appeal No. 2317 of 1972. ~ Appeal by special leave from the judgment and order dated the 27th and 28th September, 1972 of the Bombay High Court in Civil Revision Application No. 451 of 1972. ~ In C. A. 922 of 1973. S. D. Vimadalal, A; K. Sen and I. N. Shroff, for tho appellant.-Sh. Sorabji, F. D. Damania, S. K. Dholakia, Subhash Oberai and -< R. C. Bhatia, for respondents Nos. 1c2. :H 3[_]6[_ ][F. S. Nariman, ][P. ][H. ][~arek!J ][and ][S. Bhandare, ][for respondents ]-~ ........ t --1 -'

"""'· .

Rameshwar Nath, for Respondent/Intervenor. In C. A. No. 2317/1972. A. K. Sm aJ\l'.l Rameshwar Nath, for the appellant.

Som Nath, F. D. Damania and B. R. Agarwala, for respondent Nos. 1 to 3.

The Judgment of the Court was delivered by

UNTWALIA, J. These two appeals filed by special leave of this Court have been heard together because an Jmportant question of law as to the jurisdiction of the Civil Court to entertain the suits of the kinds filed in the two cases Is common. Mr. Vimadalal, learned counsel for the appellant company in Civil Appeal No. 922 of 1973 followed by Mr. Nariman, appearing for respondents 3 to 6 and Mr. A. K. Sen, learned counsel for the appellant company in Civil Appeal No. 2317 of 1972 argued in support of the ouster of the jurisdiction of the Civil Court, Mr. Sorabjee, appearing on behalf of the plaintiff respondents 1 and 2 vehemently combated the proposition. He was followed by Mr. Som Nath Iyer, learned counsel for the respondent Union in Civil Appeal 2317 of 1972. We shall proceed to state the facts of Civil Appeal No. 922 of 1973 first, discuss the point of jurisdiction as also the other points involved in that appeal and then. brJefly refer to the facts of the other case.The appellant company carries on big industry and owns several plants. One such plant is situated at Kurla, Bombay. In this plant there is department known as Motor Production Department. The dispute relates to the workmen of this department. There seems to be three groups of workmen in the department aftoresaid. One group was re-presented by Engineering Mazdoor Sabha-hereinafter ca!led the Sabha Union which .is registered Trade Union and was once recognized union of the workmen of the appellant company. Respondents 1 and 2 who instituted the suit in question in the City Civil Court at Bombay are members of this Union. Later on the Sabha Union was derecogniz-ed and another registered Trade Union known as Association of Engine-ering workers.-hereinafter called the Association Union-was recog-nized by the appellant company. This Association Union, respondent No. 3, was imp!eaded as defendant No. 2 in the action. Besides the members of these two unions, there are certain workmen who are members of neJther.

An incentive scheme providing for certain incentive payments to the workmen ofl the Motor Production Department was introduced by the appellant company in pursuance of agreements entered from time t0 time between the company and the Sabha Union. The last of such agreement executed between them was dated the 31st December, 1966. It appears that at the time of 11he execution of the last agreement there were 425. workmen in the department. Broadly speaking the incen-tive scheme was. to make extra payments at the rate of 3.5% over the basic production of 650 nnits upto the target of 900 on every extra production of 25 units. In other words, the workmen were to get 35%more if they produced 900 units iu month of 25 workiug days. The next target fixed was 1250 units payable at the rate of 4% per 25 units. In other words, the workmen were to get 35% + 56% total 91 % more if they reached the production target of 1250 per month. It further appears that after the recognition of the Association Union, 27 more persons who were prevJously learners were taken in as regular temporary employees iu ljhe Mota~ Production Department on an~ from 1st September, 1970. The strength of the workmen thus accoi:-ding to the case of the appeilant and respondent no. 3 w~nt up from 425 to 452, naturally necessitating the revision of the norm and target figures of, the incentive scheme. Some sort of arrangement was arrived at between the company and the Association Union which led to pro-test hy the Sabha Union in October, 1970. Eventually d~nite set-tlement in wrJting was arrived at between the appellant and respon-dent no. 3 on the 9th of January, 1971 making the settJement effective from 1-9-1970. The norm figure of 650 units was raised to 725 and the first and the second target figures. were raised from 900 to 975· and 1250 to 1325 respectively. The rates of incentive payment at 3.5% .in the first target and 4% in the ·se_cond target were retained. Thus the maximum incentive payment of, 91 % was kept unaltered. Broadly speaking, therefore, the increase of 75 units at every stage of the productJon was attributable to· the addition of the ·strength ofi 2 7 workmen in the Motor Production Department. The members of the Sabha Union, however, felt aggrieve'd by this, because, they thought the 27 newely added workmen were merely learners and could not be eligible for being taken in the pool of the incentive scheme. It would adversely affect the incentive payments which were to be made to the existing 425 workmen. According ta the case of respondents 1 and 2 they for the first time learnt about the intent.ion of the company to bring about change in the service conditions when the altered scheme was put on the Notice Board on the 15th March, 71. The two work-men who were the members of the· Sabha Union rushed· to the court and instituted their plaint on the 8th April, 1971 .in the City Civil Court at Bombay seeking the permission of the court to institute the suit in rep-resentative capacity under Order I, Rufo 8 of the Code of Civil Proce-dure-hereinafter called the Code-representing the workmen who were members of the Sabha Union as also thase who were neither its mem-bers nor members of the Association Union. On an objection being raised consequently respondents 4 to 6 were added as defendants 3 to 5 to represent the 27 disputed workmen.

Respondents 1 and 2. in their plaint chiefly based their claim on the Memorandum of Settlement dated· the 31st December, 1966 which on being acted Up\)n had become condition of service not only of the members of the Sabha Union but also of others who were not its mem-bers. Their assertion was that the other settlement arrived at between the company and the Assocfation Union under section 18 (1) of the Industrial Disputes Act, 1947-hereiuafter referred to as the Act, was not binding on thase workmen who were not its members. They attacked the second agreement as having been arrived at without following 'the mandatory requirement of section 9A of the Act. The first relief claJ-med in the suit was that the set'.tlernent <fated the 91.h fanuary, 1971 was

not binding on the plaintiff and other concerned daily rated and monthly rated workmen of the Motor Production Department who were not members of the Association Union. The second relief was to ask for decree of permanent injuct.ion to restrain the appellant from enforcing or implement,ing the terms of the impugned settlement dated the 9\h Jan-uary, 1971. The appel)ant company and the other defendant respon-dents filed their written statements and contested the •suit. They asserted that all the workmen of the Motor Production Department had impli-edly accepted and acted upon the new settlement. They challanged the jurisdiction of the Civil Court to entertain the suit in relation to the dispute which was an ,intlustrial dispute and further asserted that in any view of the matter no deeree for permanent injunction could be made.

The Trial Court frame{! several issues for trial but curiously enough dropped many issues as not surviving in view of the ·stand taken on be-half of the plaintiffs' counsel at the time of the trial of the suit. It was conceded on their Q.ehalf, and tightly too, that the agreement dated the 31st December, 1966 was sett_lement under section 18(1) of the Act. It could be binding only on the members of the Sabha Union and not on others. But ·since the suit was filed on beha!J! of the non-members also who were not meinbers on ,either Union and in representative capacity.the main basis of the sUit being the agreement dated the 31st December.1966 was given up, and it was stated on behalf of the plain-t.iffs that they did not wish to enforce that agreement. Hence many issues, according to the learned Trial Judge did not survive for discus-sion and were dropped. One such issue was issue no. 7 in relation to the requirement of'..the notice under section 9A of the _Act for effecting any change in the agreement dated the 31st December, 1966. Treating the incentive payments made on and from !lie year 1966 till 1970 as implied terms of conditions of ·service, the Trial Judge seems to have come to the conclusion that the change effected in January, 1971 was detrimental to and against the interests of the workmen. Due to some technical reasons the first relief. of declaration was not granted. But holding that the court had jurisdict,ion to try the suit as it was suit of "Civil nature for enforcement of rights of common and general law and consequently there is no question of the reliefs being claimed under the Industrial Disputes Act", it granted sort of conditional dec-ree of injuction restraining the appellant flt'om enforcing or implementing the terms of agreement of the 9th January, 1971 against the workmen of its Motor Production Department who are not members of the Asso-ciation Union. The injunctfon, however, was not to operate in regard to any workmen who in writing accepted the terms of the impugned agreement or after .the appellant took steps in accordance with law to make the agreement binding on workmen other than those who are not . members of the Association Union. The decree for injunction was also to cease to be operative if the apUellant gave any notice of change under section 9A of the Act on exoiry of 3 months after the expiry of 21 days notice given under the sail:! provisions of law.

The company filed an appeal in the Bombay High Court to challenge the decision of the City Civil Court. The learned sincle Judge of the High Court who heard the appeal following his decision in the Civil

Revision filed by the other company which is appellant in the other ap-peal, sustained the iurisdiction of the Civil Court to entertain the suit and did not feel persuaded to interfere with it on merits. The company took the matter in letters patent but it met the same fate before DivJsion Bench of the High Cour. On grant of special leave, the pre-sent appeal was filed.

The foremost and perhaps the only paint, undoubtedly vexed one, which falls for our determination is whether on the facts and in the circumstances of this case the Civil Court had jurisdiction to entertain the suit filed by respondents 1 and 2 against the appellant and respon-dents 3 to 6. Various English and Indian authorities were cited on the pcint on either side at the Bar and we shall endeavour to answer the question of law on appreciation of many such authorities. It rnay not be necessary to refer lg all. Before we do so, we may very briefly refer to the relevant provisions of the Act.

The object of the Act, as its preamble indicates, is to make provi-sion for the .investigation and settlement of industrial disputes, which means adjudication of such disputes· also. The Act envisages collective bargaining, contracts between Union representing the workmen and the management, matter which is outside the realm of the common law or the Indian law of contract. The expression "industrial dispute" is defined in section 2(k) to say that :

" "industrial dispJ!te" means any dispute or difference bet-ween employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person;"

Section 2(p) gives the definition of the word "settlement" thus :

"settlement" means settlement arrived at in the course of conciliation proceeding and includes written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto iu such manner as may be prescribed and copy th_ereof has been sent to an officer authorised in this beha]'f by the appropriate Government and the conciliation officer;"

Chapter II provides for the authorities under the Act, namely, for cons-titution of the Works Committee, Boards oti Conciliation, Courts of 10;-quiry, Labour Courts, Tribunals and National Tribunals as also for appointment of Conciliation Officers. Different kinds of authorities having very varied and extensive powers in the matter of settlement and adjudication of industrial disputes have been constituted. Since the time of the earliest decisions of the Federal Court and the Supreme Court of India it has been recognized fully well that the powers of the autho-rities deciding industrial disputes under the Act are very extensive-

much wider than the power of, Qivil Court while adjudicating dis1:mte · which may be an industrial dispute. The labour Courts and the Tribu-nals. to whom industrial disputes are referred by the appropriate govern• ment9 under section 10 can create new contracts, lay down new indus-trial policy for industrial peace, order reinstatement of dismissed work-mel} which ordinarily Civil Court could not do. The procedure of raising an industrial dispute starts with the submission of charter of demands by the workmen concerned. The Conciliation Officer can be and is often made to intervene in the matter first. He starts conciliation proceeding under section 14. If settlement is arrived at during the course of the conciliation proceeding, it bec.omes binding on all work-men under section 18(3) of the Act. If there is fiai!ure of conciliation, the appropriate government is required to make reference under sec-c tion 10(1) of the Act. The award published under section 17(1) be-comes final and cannot be called in question by any court in any manner whatsoever as provided in. sub-section (2). Section 18(1) of the Act says:

"A settlement arrived at by agreement between the employer and workmen otherwise than in the course of conciliation pro-ceeding shall be binding on th~ parties to the agreement."

Section 19(2) makes provision for terminating settlement and provides that it shall continue to be binding until then. Section 29 provides for penalty for breach of settlement or award. The residuary punish-ing section for contravention of any provisions of the Act or the Rules made thereunder is section 31(2). The conditions of service appli-E cable to workmen cannot be changed to their prejudice in regard to any matter connected with the dispute during the pendency of any conciliation proceeding or any proceeding before the Labour Court or the Trib~l as provided in section 33(1)(a). Section 33C(l) provides for recovery of money due from an employer. The scope of sub-section (2) as to the power of the Labour Court for the purpose of determination of the amount due is much wider than the power of Government under sub-section ( 1) .

. It would thus be seen that through the intervention of the appro-pnate government, of course not directly, very extensive machinery has been provided for settlement and adjudication of industrial dis-putes. But since individual aggrieved cannot approach the Tribunal or the Labour Court directly for the redress of his grievance without the intervention of the Governmer1t, it is legitimate to take the view that the ~en:edy provided un~e~ he Act is n?t such as to completely oust the 1unsd1ct10n of the Civil Court for tnal of industrial disputes. If the dispute is not an industrial dispute within the meaning of section 2 (k) or within the me_aning of section 2A of the Act it is obvious that there is no provision for adjudication of such disp~tes under the A_ct. Ciyil Courts will be the proper forum. But where the industrial d~spute ts for the purpose of enforcing any right, obligation or lia-bili!Y i;nder th_e ~~ner~ law or the common law and not right, obhgation or liab1hty created under the Act then alternative forums are there giving an election to the suitor to choose his remedy of

[1976] 1 s.c.R.

either moving the machinery under the Act or to approach the Civil Court. It is plain that he can't have both. He has to choose the one or the other. But we shall presently show that the Civil Court will have no jurisdiction to try and adjudicate upon an industrial dispute if it concerned enforcement of certain right or liability created only under the Act. In that event Civil Court will have no jurisdicti,:>n even to grant decree of injun~tion to prevent the threatened injury on account Of the alleged breach of contract if the contract i> one which is recognized by and enforceable under the Act alone.

In Dos v. Bridges (') at page 859 are the famous and oft quoted words of Lord Tenterden, C. J. saying :

"where an Act creates an obligation and enforces the performance in specified manner, we take it to general rule that performance cannot be enforced in any other manner".

other

This passage was cited with approval by the Earl of Halsbury, L.C. in Pasnwre and Others v. The Oswaldtwistle Urban District Council ( [2 ]) and by Lord Simonds at paKe 407 in the case of Cutler v. Wandsworth Stadium Ltd.(•) classic enunciation of the law and classi-fication of the cases in three classes was done by Willes, J "with the precision which distinguished the utterances of that most accomplished lawyer, in the case of Wilverhnmption New Waterworks Co. v. Hawkesford"('A) (vide the speech of Viscount Haldane at page 391 in the case of Neville v. London "Express", Newspaper, Ltd.) ([4]) The classes are enumerated thus :

"There are three classes of cases in which liability may be established by statute. There is that class where there is liability existing at common law, and which is only re-enacted by the statute with special form of remedy; there, unless the statute contains words necessarily excluding the common-law remedy, the plaintiff has his election of pro-ceeding either under the statute or at common law. Then there is second class, which consists of those cases in which statute has created liability, but has given no special remedy for it; there the party may adopt a11 action of debt or other remedy at common Jaw to enforce it. The third class is where the statute creates liability not existing at common law, and gives also particular rc1ncdy for enforcing it ........ "With respect to that class it has alw[1]ays been held, that the party must adopt the form of · remedy given by the statute."

rc1ncdy for

The judgment of the Court of Appeal which was affirmed by the House of Lords in Pasmore's case (supra) is reported in Peebles v. The Oswaldtwistle Urban District Council.([[5 ]]) It was pointed out

[[5 ]]) It was pointed out (2) [1898] Appeal Cases 387, (3A) [1859] 6 C. B. (No. S.) 336. (5) [1897] I Queen's Bench, (625.)

(I) [l831] I B. & Ad. 847. (3) [1'149] Appeal Cases, 398. (4) [1919] Appeal Cases, 368.

that the duty of local authority, under section 15 of the Public· Health Act, 1875 to make such sewers as may be necessary for effectually draining their district for the purposes of the Act, cannot be enforced by action for mandamus, the only remedy for negkct of the duty being that given by s. 299 of the Act by complaint to the Local Government Board. Lord Esher M. R. pointed out that the liability to make sewers was imposed by the statute. There was no such liability before it. The case, therefore, comes within the canon of construction that if new obligation is imposed by ;tatute, and in the same .statute remedy is provided for non-fulfilment of the obligation, that is the only remedy. Lopes, LJ. further succinctly pointed out that section 15 did not create any duty towards any particular individual, and section 299 gives specific remedy for the benefit of the locality at large. Thus, it should be ribtic.ed, that the obligation imposed by the statute did not result in creation of any right in favonr ()f any particular individual. Earl of Halsbury, LC. pointed out in his speech at page 394 :

"The principle that where specific remedy is given by statute, it thereby deprives the person who insists upon remedy of any other form of remedy than that given by the statute, is one which is very familiar and which runs through the Jaw."

The matter would be different if the obligation imposed under the statute brings into existence right in favour of an individual but provides no rem,edv for its enforcement. Supposing after providing for awarding of certain compensation in Chapter VA of the Act there was no provision made in it like section 10 or section 33C the mere penal provision for violation of the obligation engrafted in section 29 or section 31 would not have been sufficient to oust· the jurisdiction of the Civil Court for enforcement of individual right created under Chapter VA.

The decision of the House of Lords in the case of Barraclough v. Brown and others(') is very much to the point. The special statute under consideration there gave right to recover expenses in court of Summary Jurisdiction from person who was not other-wise liable at common law. It was held that there was no right to come to the High Court for declaration that the applicant had right to recover the expenses in court of Summary Jurisdiction. He could take proceedings only in the latter court. Lord Hei'schell after referring to the right conferred under the statute "to rec0vcr such expenses from the owner of such vessel in court of summarv Juri-sdiction" said at page 620 .

"I do not think the appellant can claim to recover by virtue of the statute, and at the same time insist uoon II <loin[ so by means other than those prescribed by the statute which alone confers the right."

[1976] 1 S.C.R.

Lord Watson said at page 622 : "The right and the remedy are given uno flatu, and the one cannot be dissociated from the other." In other words if statute confers right and in th;: same breach provides for remedy for enforcement of such right the remedy provided by the statute is an exclusive one. But as noticed by Lord Simonds in Cutler v. Wandsworth Stadium Ltd. (supra) at page 408 •• from the earlier English cases, the scope and purpose of statute and in particular for whose· 'benefit it is intended has got to be considered. If statute : "intended to compel mine owners to make due pro-c vision for the safety of the man working in their mines, and the persons for whose . benefit all these rules are to be enforced are the persons exposed to danger,"

Lord Watson said at page 622 :

there arises at common Jaw :

"a co-relative right in those persons who may be injured by its contravention."

PREMIER AUTO v. K. s. WADKE (Untwalia, J.)

the Act, as in England, Courts in India also could make an order or decree for injunction to prevent the threatened injury on breach of the right.

We do not find much force in either of the contentions. It is no doubt true that the remedy provided under the Act under section 33C, on the facts and in the circumstances of this case involving dispme;; in relation to the two settlements arrived at between the management and the workmen, was not the appropriate remedy. It is also true that it was not open to the workmen concerned to approach the Labour Court or the Tribunal directly for adjudication of the dispute. It is further well-established on the authorities of this Court that the Government under certain circumstances even 011 the ground of expediency ( vide State of Bombay v. K. P. Krishnan and others(') and Bom'bay Union of M11rnalists & Ors. v. The State of Bombay & Anr. ( [2]) can refuse to make reference. If :the ref~<aI is not rnstaiuable in law, appropriate directions can be issued by the High Court in exercise of its writ jurisdiction. But it does not follow . from all this that the remedy provided under the Act is misnomer. Reference of industrial disputes for adjudication in exercise of the power of the Government under section 10(1) is so common that it is difficult to call the remedy misnomer or insufficient or inadequate: for the purpose of enforcement of the right or liability created under the Act. The remedy suffers from some handicap but is well com-pensated on the making of the reference by the wide powers of the: Labour Court ·or the Tribunal. The handicap leads only to this conclusion that for adjudication of an industrial dispute in connection with right or obligation under the general or commou law and not created under the Act, the remedy is not exclusive. It is aiternative. But surely for the enforcement of right or an obligation under the· Act the remedy provided uno flatu in it is the exclusive remedy. The legislatnre in its wisdom did not think it fit and proper to provide very easy and smooth remedy for enforcement of the rights and obligations created under the Act. Persons wishing the enjoyment of such rights and wanting its enforcement must rest content to secure the remedy provided by the Act. The possibility that the Govern-ment may not ultimately refer an industrial dispute under section 10 on the ground of expediency is not relevant consideration in this regard.

Mr. Sorabjee very emphatically reliecj upon the judgment of FarweH. J. in the case of StPvPns v. Chown([3]) in support of his sub-mission that even if suit could not lie in civil court for enforcement of the right, still the remedy of injunction by suit was not lost. The learned Judge at µage 903 in the first instance pointed out that the case before him fell within the first of the three classes enumerated by Willes, J in the case of Wolverhemption (supra). On the true construction of the Act under consideration it was opined that it had simply reenacted the old common law right to the market. But then

(I) [1961] 1 S. C. R. 227.

C) [1964] 6 S. C.R. 22,

(3) [1901] l Clw.ncery 894,

the learned Judge proceeded to say at page 904 that the remedy in chancery, as separate remedy, was wider than the old common law remedy. Says the learned Judge further at page 904 :

"In my opinion, there was nothing to prevent the old Court of Chancery from granting an injunction to restrain the infringement of newly created statutory right, unless the Act of Parliament creating the right provided remedy which it enacted should be the only remedy-subject only to this that the right so created was such right as the Court under its original jurisdiction would take cognizance of."

On close scrutiny, however, it would be noticed that the principle of separate remedy only for the purpose of injunction avail-able in court of Chancery, which was kept intact even after the Judicature Act of 1873 is not applicable in India. Historically the Chancery Court had assumed certain special jurisdiction under its original jurisdiction to take cognizance of special kind of right even though the common law court may not have such jurisdiction. In India under section 9 of the Code. the Courts have subjecfto certain restrictions, jurisdiction to try suits of civil nature excepting suits of which their cognizance is either expressly or impliedly barred. There are no different systems <>f civil courts for enforcement of different kinds of rights. In the instant case taking cognizance of suit in relation to an industrial dispute for the enforcement of any kind of right is not expressly barred. But if it relates io the enforce-ment of right created under the Act, as stated above, by necessary intendment, the jurisdiction of the Civil Courts is barred. That being s<>. in India, it is barred for all purposes. except in regard to. matters which will be alluded to hereinafter. The position will be further clear on reference to the quotation from the decision of Lord Turner in the judgment of Farwell, J at pages 904 and 905 from the case of Emneror of Austria v. Day([1]). The great Master of Equity in rclntion to the remedy in the Chancery Court said :

"I do not agree to the propos!tion, that there is no remedy in this Court if there be no remedy at law, and still less do I agree to the proposition that this Court is bound to send matter of this description to be tried at law ......... . . . . . . . It is plain therefore, that, in the opinion of Lord Rcdecdale.· who was pre-eminently distinguished for his knowledge of the principles of this CCYUrt, the jurisdiction of the Court is not limited to cases in which there is right at Jaw."

It will bear repetition to say that the jurisdiction of the Civil Court in India is limited to cases in which there is right at law. that is to say, right to be pursued in such Court.

(I) [1861] 3 D. F. & J. 217, 253.

The distinction afore-mentioned also finds ample support from the speech of Lord Davey in Barraclough v. Brown and 01/iers (supra). At page 623 the noble and learned Lord has pointed out that the power of the Court or Chancery to make declarations of right without giving consequential relief was introduced by section 50 of th.e Chancery Procedure Act 1852. After some decisions of the EnglJSh courts some additional words were introduced in order to "enlarge the power of the Court to make declarations in cases where from the nature or the circumstances of the case no substantive relief could be given by the Court." When we proceed to deal with certain decisions of the Privy Council and of this Co\(rt in relation to taxing statute it will be pointed out uuder what circumstances an action in Civil Court can lie to challenge the decisions of the taxing authorities. If the proposed action of the taxing authority is of· kind which .when taken would be amenable to be challenged in Civil Court the remedy for the relief of injunction to prevent the action would also lie but not otherwise. As for example, in accordance with the. majority decision of this Court in the case of K. S. V enkataraman & Co. v. State of Madras( [1]) if tax is imposed under provision of the statute which is ultra vires, the imposition can only be challenged by pursuing remedy in Civil Court or in High Court. Suppose case where proceeding is initiated by issuancl) of notice for imposing tax on person under provision -0f law which is ultra vires, suit for injunction would lie to prevent the threatened action. But suit, unlike the remedy in Chancery Court, merely for the purpose of injuncti6n would not lie to prevent an action which when completed cannot be challenged in Civil Court.

Reliance was placed on behalf of the contesting respondents on ' the case of Carlton Illustrators and another v. Coleman & Company Limited([2]l. This case merely illustrates the distinction already made by us. Channell, J has said at page 782 :

"The -plaintiff also asks for an injunction to prevent the future commission of breaches of this statutory enactment. It was argued, though not very strenuously, that the o.11y re-medy was the recovery of the penalty. I think that this case comes within the rule that, where there is statutory enact-ment' ;n favour of person, and there is penalty for the breach of the statutory enactment which goes to the peFson aggrieved, in such case the penalty is the only remedy for the breach. That principle, however, only applies to remedies for the breach whjlllJ .has ]:>een committed, and an injunction is not remedy for the past breach, but is means for pn·-venting further breaches."

Reliance was also placed on behalf of the contesting respondents on the decision of the Honse of Lords in PYX Granite Co. Ltd v Ministry of, Housing and Local Government and others(&) but,. th;

(2) [1911 J I King's Bench, 771. (3) [1960] Appeal Cases, 260.

(I) [!966J2 S. C.R. 229.

decision is of no help to them. Viscount Simonds at pages 286 "nd 287 has said with refereiace to the Act of 194 7 which was under consi· deration before the House that the Act provides person with another remedy and then the question posed is-"Is it, then, an alternative or an exclusive remedy ?" Answer given is :

"There is nothing in the Act to suggest that, while new remedy, perhaps cheap and expeditious, is given, the old and. as we like to call it, the inalielaable remedy of Her Majesty's subjects to seek redress in her courts is taken away. And it appears to me that the case would be unarguable but for the fact that in Barraclough v. Brown (supra) upon considera-tion of the statute there under review it was held that the new statutory remedy was exclusive. But that case differs Vitally from the present case."

The well-known distinction is brought about in these terms :

"The appellant company are give11 no new right of quarry-ing by the Act of 194 7. Their right is common law right ruid the only question is how for it has been taken away. They do not uno flatu claim under the Act and seek remedy else-where. On the contrary, they deny that they come within its purview and seek declaration to that effect. There is. in my opinion, nothing in Barraclough v. Brown (supra) which denies them that remedy, if it is otherwise appro-priate."

- - ::.:·,

Mr. Sorabjee cited the case of Duchess of Argyll v. Duke of Argyll and others(') to strengthen his argument further in support of the dicta of Farwell, J in the case of Stevens v. Chown (supra). But we think the very relevant and pertinent distinction pointed out by us above has again been missed by the lea1«1ed counsel. The special jurisdiction of the Court of Chancery is further emphasisell in passage quotod with approval at page 345 of the report from the judgment of North, J in the case of Pollard v. Photographic Company([2]). It is worthwhile to quote portion of that passage which reads thus :

_,,,,.,

"But it is quite clear that, independently of any question as to the right at law, the Court of Chancery always had an original and independ~nt jurisdiction to prevent what that court considered and treated as wrong, whether arising from violation of an unquestionable right or from breach of con-tract or confidence, as was pointed out by Lord Cottanham in Prince Albert v. Stra11e-l H. & T. l ".

Cngood Thomas, J has thereafter said at page 345 :

"But these were cases dealing not with interlocutory in-junctions but with final injunctions and it was the practice of the Court of Chancery to exercise jurisdiction, which (1) [1967] I Chancery, 302. (2) (1889] 40 Chancery Division,

(2) (1889] 40 Chancery Division, 34

was not limited to the considerations governing final fojunc-tions, for the purpose of granting interlocutory injunctions pending· the trial of legal right."

No such thing is permissible in India. As far back as 1952 it was pointed out by this Court ra the case of The State of Orissa v. Madan Gopa/ Rungta and others(') that the High Court,cannot make direc-B tion under Article 226 of the Constitution for the purpose of granting interim relief only pending the institution of suit merely because tire suit could not be illstituted until after the expiry of 60 days from the date of notice under section 180 of the Code. Much less it can be so done by Civil Court.

Mr. Sorabjee very strongly relied upon the Full Bench decision of the Lahore High Court in Municipal Committee, Montgomery v. Mas-ter Sant Singh(') in support of the plaintiff-respondents' right to have an order of injunction in this case. But passage occurring at page 380 column I negatives his contentions and squarely supports the dis-tinction draw,1 by us above. The passage runs thus :

"If therefore demand made by Committee is not autho-nsed Ly the Act and the person affected thereby objects to the payment on the ground that in making the demand the Committee was exercising jurisdiction not vested in it by law, it can, by no stretch of language, be said that he is ob-jecti11g to his liability to be taxed under the Act. Any spe-cial piece of legislation may provide special remedies arising therefrom and may debar subject from having recourse to any other remedies, but that bar will be confined to matters covered by the legislation and not to any extraneous matter."

We now proceed to consider the cases creating special liability, mostly tax liability, and providing for procedures and remedies for de-termination of the amount of tax and relief against the assessment of such liability. In the well-known decision of the Privy Council in Secretary of State, Represented by the Collector of South Arcot v. Mask and Company(•) Lord Thankerton delivering the judgment of the Board alluded to the third class of cases to be found in the judg-ment of Willes, J in Wolverhampton's case. The order of the Collec-tor of Customs passed on the appeal ui,1der section 188 of the Sea Cus-toms Act, 1378 was held to be an order within his exclusive junsdiction excluding the jurisdiction of the Court to challenge it. The other well-known decision of the Privy Council is the case of Raleigh Investment Cov. Ltd. v. Governor General in Council('). Both the decisions aforesaid were noticed by Gajendragadkar. J. as he thea was, deliverini:i the judgment on behalf of the Constitution Bench of this Court in Firm and l//uri Subbavva Chettv and Sons v. The State of Andhra Prai.esh("). At page 763 the circumstances under which the decision

(l) [1952] S. C.R. 28.

(2) A.I.R.1940Lahore,377.

(3) 67 Indian Appeals, 222.

. (4) 74 Indian_ Appeals, 50-.

(5) [1964] 1 S. C.R. 752.

[1976] 1 s.c.R.

of the taxing authority under the Madras General Sales Tax Act, 1939 could be challe''1ged in Civil Court were pointed out in these terms:

"Non-compliance with the provisions of the statute to which rclercncc is made by the Privy Council must, we think, be non-compliance with such fundamental provisions of the sta-tute as would make the entire proceedings before the appro-priate authority illegal and without jurisdiction. Simtlarly, if an appropriate authority has acted in violatio'" of the fun-damental principles of judicial procedure, that may also tend to make the proceedings illegal and void and this infirmity may affect the validity of the order passed by the authority in question. It is cases of this character where the defect or the infirmity in the order goes to the root of the order and makes it in law invalid and void that these observations may perhaps be invoked in support of the plea that the civil court can exercise its jurisdiction notwithstanding provision to the contrary contained in the relevant statute. In what cases such plea would succeed it is unnecessary for us to decide in the present appeal because we have no doubt that the con-tention of the appellant that on the merits the decision of the assessing authority was wrong, cannot be the subject-matter of suit because s. 18-A clearly bars such claim in tho civil courts."lt wonld be noticed on appreciation of the above dicta that the issue to be tried in the suit instituted in civil court to challenge the decision of the taxing authorities is quite distinct and different from the on~ which is within their exclusive jurisdiction. The issues in the two proceedings are different and exclusive in their respective spheres. Many authorities were reviewed by Subba Rao, J as he then wac, in the case of Firm Seth Radha K ishan (deceased) represented by Hari K1shan and others v. The Administrator, Municipal Conmdttee, Ludhiana Cl including the principles enunciated by Willes, J in Wolver-hampton's case. The decision of the Full Bench of the Lahore High Court (supra) was also referred, and the final priilciple enunciated is to be found at page 284 in these terms : ·

"Under s. 9 of the Code of Civil Procedure the Court shall have jurisdiction to try all suits of civil nature excepting smts ol which cognizance is either expressly or impliedly barred. statute, therefore, expressly or by necessary implication, can bar the jurisdiction of civil Courts in respect of parti-cular matter. The mere conferment of special jurisdiction dil tribunal in respect of the said matter does not in itself exclude the jurisdiction of civil Courts. The statute may specifically provide for ousting the jurisdiction of civil Courts; even if there was no such specific exclusion, . if it creates liability not existing before and gives special and partic:i[ar remedy for the aggrieved party, the remedy no-vided by it must be followed. The same principle would

(1) [1964] 2 S. C. R. 273.

apply if the statute had provided for the particular forum in which the said remedy could be had. Even in such cases, the Civil Court's jurisdiction is not completely ousted. suit in civil court will always lie to question the order of tribuaal created by statute, even if its order is, expressly or by necessary implication, made final, if the said tribunal abuses its power or does not act under the Act but in vio-lation of its provisions."

The principles aforesaid were reiterated in the decision of this Court in Bharat Kala Bhandar Ltd. v. Municipal Committee, Dhaman-gaonC) albeit the learned Judges by 3 : 2 differed in the application of the principle to the facts of the case.

The unanimous decision of Bench of 7 Judges of this Court was given by Gajendragadkar, C.J. in the case of Kamala Mills Ltd. v. State of Bomb1'v<'l. The decision of the House of Lords in the case of PYX Granite Co. Ltd. (supra) was referred to at page 81 after re-ferring to the decisions of the Privy Council in the case of Mask & Co. and the priaciples were reiterated at page 82. doubt which was be-ing cast in the full application of the ratio of the Privy Council in Raleigh Investment Co.'s case was crystalised in the majority decision of Subba Rao, Jin the case of K. S. Venkataraman & Co. v. State of Madras (supra). The minority decision of Shah, J was fo the cont-rary. The majority view made departure from the dicta of the Privy Council in case of challenge to assessmeat of tax made under ultra vires provisions of the law. The decision of this Court in State of Kera/a v. Ramaswami Iver & Sons(') is again in connection with the challenge to sales tax assessment by institution of suit in civil court. Mitter, J reviewed many decisions of this Court Pa the rnse of Pab-bojan Tea Co. Ltd. etc v. The Deputy Commissioner, Lakhimpur etc.([4])-a case arising out of challenge to the orders of the authority under the Minimum Wages Act. Sub-section 6 of section 20 of the Act was held not to exclude the jurisdictiC',1 of the Civil Court when the order of the authority is challenged on the ground of non-applica-bility of the Act to certain class of workers. Hidayatullah, C. J. delivering the judgment on behalf of Constitution BencB-·o'f this Court took pains to discuss many authorities in the case of Dhulabhai and others v. The State of Madhva Pradesh and another('), culled out as -ma·ay as 7 propositions of law at pages 682 and 683. But the princi-ples enunciated were relevant to find out the jurisdiction of the Civil Court and its scope to challenge the assessments made under taxing statute. Nothing contrary to what we have said above is to be found in any of the 7 principles enunciated by the learned Chief Justice. The case of Union of India v. A. V. Narasimhalu(") was again in regard to exclusion of jurisdiction of the civil court in suit to challenge an order under section 188 of the Sea Customs Act, 1878.

(1) [1965]3 S. C.R. 499.

(2) [1966] 1 S. C. R. 64. (4) [1968] J, S. C.R. 260.

(3) [1966]3 S. C.R. 582.

(6) [1970] 2 S. C. R. 145.

(5) [196S] 3 S. C.R. 6'2.

15-L 839 Sup, CI/75

To sum up, the principles applicable to the jurisdiction of the Civil Court in relation to an industrial dispute may be stated thus :

(1 l If the dispute is not an industrial dispute, nor does it relate to enforcement of any other right under the Act the remedy lies only in the civil court.

( 2) If the dispute is an industrial dispute arising out of right or liability under the general or common law and not under the Act, the jurisdiction of the Civil Court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in particular remedy.

( 3) If the industrial dispute relates to the enforcement of right or an obligation creuted under the Act, then the only remedy available to the suitor is to get an adjudication under the Act.

( 4) If the right which is sought to be enforced is right created under the Act such as Chapter VA then the remedy for its enforcement is either section 33C or . the raising of an industrial dispute, as the case may be.

We may, however, in relation to principle 2 stated above hasten to add that there will hardly be dispute which will he an industrial dispute within the meaning of section 2(k) of the Act and yet will be one arising out of right or liability under the general or common law only and not U'ader the Act. Such contingency, for example, may arise in regard to the dismissal of an unsponsored workman which in view of the provision of law contained in Section 2A of the Act will be an industrial dispute eve·,1 though it may otherwise be an individual dispute. Civil Courts, therefore, will have hardly an occasion to deal with the type of cases falling under principle 2. Cases of industrial disputes by and large, almost invariably, are bound to be convered by principle 3 stated above.

Some of the decisions of the High Courts in India cited at the Bar m;iy now be briefly noticed. They fell in one category or the other and have expressed divergent views. Those \Vhich have taken any view contrary to the one expressed by us above must be deemed to have been over-ruled in that regard a·ad those falling in line with our views arc being affirmed.

In th,.:: c1se of Kri~hnan aud another v. East India Dis1illeries and Su11ar Factories, Ltd. Nellikuppam, and another('), the learned single Jndge of the Madras High Court has held that the jurisdiction of the Civil Court is ousted impliedly to try ease which could form subject matter of un industrial dispute collectively between the workmen and their employer. One of us ( Alagiriswami, J) as Jndge of the Madras High Court in the case of Madura Mills Company, Ltd. v. Guruvammal

(I) [1964] i. L L. J, 217.

and another( [1]') has pointed out th•at the Act creates special machi-nery under section 33C(2) to enforce specially created rights. The parties could not, therefore, approach the ordinary civil court. We affirm the aforesaid two decisions of the Madras High Court. si·agle Judge of the Mysore High Court took the same view in the case of Nippani Electricity Company (Private) Ltd, (by its director, V. R. Patravali) and another v. Bhimarao Laxman Patil and others(") and Bench of the Bombay High Court in The Pigment Lakes and Chemical Manufacturing Co. Private Ltd. v. Sitaram Kashiram Konde([3 ]) held that the jurisdiction of the civil court to deal with matters mentioned in Chapter VA read with schedules 2 to 4 to the Act is impliedly barred. SimiJoar opinio»1 was expressed by learned single Judge of the Keral•a High Court in the case of Nanoo Asan Madhavan v. State of Kera/a and others.(') leamed single Judge of the Calcutta High Court seems to have taken somewhoat different view in the case of Bidyut Kumar Chatterjee and others v. Commissioners for the Port of Ca/cutta.([5 ]) The ratio of the case in so far as it goes against the principles enunciated by us is not correct. We approve what has been said by Bench of the Calcutta High Court in the case of Ml s Austin Distributors Pvt. Ltd. v. Nil Kunwr Das(') that suit for recovery of damages for wrongful dismissal, on the () grounds which are clearly entert~inable in Civil Court, would lie in that court even though special remedy is provided in the Act in respect of that matter. This would be so on the footing that the dismissal was in violation of the contract of service recognized under the general law. More or less to the same effect is the view taken by learned single Judge of the Mysore High Court in the case of Syndicate Bank v. Vincent Robert Lobo('). It is not necessary to refer to some unre-ported decisions of the Bombay High Court taking one view or the other.

Applying the principles afore-mentioned to the facts of the instant case, it is clear that what the plaintiff-respondents wanted to prevent was, by and large, thre•atened breach of their right which flowed from the agreement dated the 31st December, 1966 entered into between the Sabha Union and the Company. Such collective agreement is recognized and creates right in favour of the members of the Union only under section 18 (1) of the Act and not under the g~aeral law of contract. Withdrawal of the claim based upon the said agreement by their learned counsel in the Trial Court had no effect on the question of its jurisdiction to try the suit. In so far as the suit was filed in re-presentative capacity on behalf of the members of the Sabha. Union by two of its members under Order I, Rule 8 of the Code it was clearly suit in relation to the exercise of right created under the Act. In their case it was not permissible to fall back upon the allegedly implied terms and conditions of service. The source of their right was the agreement entered from time to time under section 18 ( 1) of the Act

(2) [1969] 1 Labour Law Journal 268.

(I) [1967] 2 Labour Law Journal, 397.

(3) 71 Bombay Law Reporter, 452.

(4) [1970] l Labour Law Journal, 272.

(5) [1970] 2 Labour Law Journal, 148.

(6) [1970] 3 Labourand Industrial Cases, 323.

(7) [19711 2 Labour Law Journal 46.

culminating iu the agreement dated the 31st December, 1966. It is reasonable to take the view that even the workmen who were not members of the Sabha Union but were given the benefit of incentive payments under the said agreement were so given because they tacitly agreed to be bound by the said agreement. Even accepting that in their case it had assumed the character of an implied term of contract of service, the alternative claim made in paragraph 8 of the plaint as being condition of service otherwise, can be referable to the claim of the non-members only. The source of their right In that event was different and representative suit on their behalf by the two plaintiffs could not be maintained. The numerous persons must have the same interest in one suit instituted under Order I, Rule 8 of the Code. Persons having different interests cannot be so represented. The better and more rea- · sonable view, therefore, to take is that all workmen represented by the two plaintiffs sought an order of injunction in the civil court to pre-vent an injury which was proposed to be caused to them in relatio>,1 to their right under the Act. Hence suit for decree for perma-nent injunction was not maintainable in the civil court as it had no jurisdiction to grant the relief or even temporary relief.

Although the issue as to the non-compliance with the requirements of section 9A of the Act was dropped, the learned Trial Judge seems to have found that the proposed change in the conditions of service was adverse to the interests of the workmen. Whether it was so or not is matter of debate. But one thing was apparent that both the agreements could not be simult:meously given effect to. It was im-practicable-almost impossible to do so. The result of the order of injunction made by the Trial Court was that the workmen represented by the two plaintiffs were to get incentive payments in accordance with the scheme embodied in the agreement dated the 3 lst December, 1966 ignoring the addition to the strength of the workmen of the Motor Production Department in the shape of the 27 persons. On tho other hand the members of the Association Union who had entered into the second agreement dated the 9th January, 1971 were to get their inceative payments in accordance with that agreement taking into account the contribution made in the matter of production by the newly added 27 persons. On the face of it, it was an attempt to put two swords in one sheath. That it was not only difficult but almost im-possible to do so was conceded on all hands, including Mr. Sorabjee, learned counsel for the plaintiff-respondents. Apart from the ques-tion of jurisdiction the decree for injunction \Vas not sustainable on this account too. The dispute could well be decided from all aspects in reference under the Act.

One more difficulty in the way of the sustainability of the order of injunction may also be indicated. Temporary i'.1junction can be granted under sub-section ( 1) of section 3 7 of the Specific Relief Act, 1963 but decree for perpetual injunction is made uader sub-section (2). Grant of perpetual injuaction is subject to the provision con-tained in Chapter 8. Under section 38(1) perpetual injunction may be granted to the plaintiff to prevent the breach of an obligation existing in his favour irrespective of the fact whether the obligation arises at common Jaw, under cohtract or under special statute (subject to

the point of jurisdiction). But sub-section (2)' provides that when any such obligation arises out of contract the courts shall be guided by the rules and provisions contained in Chapter 2. Section 14(1) (c) oc-curring in that Chapter says that contract which is in its nature deter-minable cannot be specifically enforced. The contract in question embodied in the written agreement dated the 31st December, 1966 was in its nature determinable under sectiO'a 19(2) of the Act or could be varied by following the procedure under section 9A. Section 41 (a) of the Specific Relief Act says that an injunction cannot be granted to prevent the breach of contract the performance of which would not be specifically enforced. Section 42 providing an excep-tion to this is not attracted in this case. The decree or order of in-junction made therein, therefore, is not sustainable on this account too. We now proceed to briefly state the facts of Civil Appeal No. 2317/1972. During the pendency of an industrial dispute ia l.T.No. 139 of 1965, 46 workmen of the appellant company were sought to be dismissed and an application for according approval to the dismissal was made under section 33(2) of the Act. On 14.3.1968 settle-ment was reached between the Engi[1]aeering Mazdoor Sabha Union, plaintiff no. I, the same Sabha Union, as in the other case, and the company. written agreement was executed according to which the parties agreed to refer their cases to Board of Arbitrators consisting of 3 persons. During the pendeacy of the arbitration the 46 work-men were to remain suspended from work till its decision. They were to be paid from the date of resumption of work by the other workmen, 50% of their wages which they would have normally earned had they not been so suspended. On 14.11.1971 the appellant company served notice o'a the union, plaintiff no. I in writing seeking to terminate the settlement in accordance with section 19(2) of the Act. There-upon the union, and two of their members instituted the suit on 14.12.1971 challenging the action of the company on several grounds and praying for an order of injunction to restrain the company from committing breach of the agreement dated the 14th March, 1968 including the breach as regards the payment of 50 % wages to the 46 workmen. It may be stated that the company's nominee on the Board of Arbitrators had withdrawn. prayer, therefore, was made in the plaint to direct the company to appoint its nominee in place of Mr. Karnik who had withdrawn. The company asked the City Civil Coµrt of Bombay, where the suit was instituted, to decide the question of jurisdiction of the court to entertain the suit as preliminary issue. The court held against the company. It went up in revision before the Bombay High Court. The same learned Judge sitting singly who later on decided the otheL case up[1]1cld the jurisdiction of the civil court to try the suit. The company filed this appeal by special leave.

On the facts of this case it is all the more cleoar that the civil court has no jurisdiction to try it. The manner of voluntary reference of industrial disputes to arbitration is provided in section lOA o! the Act. The reference to arbitration has to be on the basis of written agree-ment between the employer and the workman. As provide~ in sub-

[1976] 1 S.C.R.

.section ( 5) nothing in the Arbitration Act, 1940 shall apply to arbitra-tion,s under section JOA of the Act. There is no provision in the Act to compel party to the agreement to nominate another arbitrator if its nominee has withdrawn from arbitration. The company had terminated the agreement dated the 14th March, 1968 under section 19(2) of the Act. On the authority of this Court in South Indian Bank Ltd. v. A. R. Chacko(') Mr. Iyer endeavoured to argue that in spite of the termination of the agreement it still continued to be in force. Apart from the fact that the decision of this Court was with reference to the termination of the award under section 19, it is clear that the termination of the agreement in this case was accepted by the unio,n. It sought to challenge it by the insti'ution of suit. It is clear that the suit was in relation to the enforcement of right created Ull\der the Act. The remedy in Civil Court was barred. The only remedy available to the workmen concerned was the raising of an industrial dispute. It was actually raiSed, and, as matter of fact, shortly after the institutio'a of the suit the disputes were referred by the Government to the Industrial Tribunal in LT.No. 33 of 1972 on the 25th January, 1972.

For the reasons stated above both the appeals are allowed, the judgments and orders of the courts below are set aside. But in the circumstances we shall make no order as to costs in either of the appeals.

Appeals allowed.