NOTES ON LABOUR LAWS ( INDUSTRIAL DISPUTES ACT, 1947 ) Authorities under the Industrial Disputes

Act, 1947 , Reference to Authorities under the Industrial Disputes Act, 1947 & Strikes and Lockouts
under the Industrial Disputes Act, 1947 .

- PART TIME PROFESSOR ADVOCATE AMIT.SHASTRI

AUTHORITIES UNDER INDUSTRIAL DISPUTES ACT, 1947

1.WORKS COMMITTEE 2. CONCILIATION 3. BOARD OF 4. COURTS 5. LABOUR 6. INDUSTRIAL

OFFICERS CONCILIATION OF ENQUIRY COURTS TRIBUNALS &

NATIONAL

TRIBUNALS

1. WORKS COMMITTEE ( Section 3 of the Industrial Disputes Act, 1947 ) –

a) Requirement – In case of an industrial establishment in which 100 or more workmen are
employed or have been employed on any day in the preceding 12 months .
b) Constituted – The Appropriate Government may by special or general order require the
employer to constitute in a prescribed manner a Works Committee, consisting of equal
representatives of employers and equal representatives of workmen engaged in the
establishment . The representatives of the workmen will be selected in a prescribed manner
from among the workmen engaged in the establishment and in consultation with the
registered trade union if any , as registered under the Trade Unions Act, 1926.
c) Duties of Works Committee – i) Promote Measures for securing and preserving good
Relations between the employer and the workmen , ii) Communicate with the employer and
comment on matters of common interest or concern of the workmen & iii) Initiate and
locate the source of the problem and difference of opinion in respect of matters of common
interest of the workmen engaged in the establishment .

2. CONCILIATION OFFICERS ( Section 4 of the Industrial Disputes Act, 1947 ) –

a) Appointment – The Appropriate Government may by notification in the Official Gazette ,
appoint such number of Conciliation officers as it may deem fit and necessary in the
industrial establishment in a specified area, either permanently or for a limited time.
b) Purpose and objective- Appointed to mediate into and promote a peaceful and amicable
settlement of the industrial dispute in the concerned industrial establishment .
3. BOARD OF CONCILIATION ( Section 5 of the Industrial Disputes Act, 1947 ) –
a) Appointment - The Appropriate Government may as the occasion arises , by notification in
the Official Gazette, constitute a Board of Conciliation.
b) Composition- The Board of Conciliation shall consist of a Chairman and 2 or 4 other
members, as the appropriate Government thinks fit.
c) Eligibility – The Chairman of the Board of Conciliation shall be an independent person and
the other members shall be persons appointed in equal numbers to represent the parties to
the industrial dispute and any person appointed to represent a party shall be appointed on
recommendation of that party and in case the party fails to appoint the member, then the
Appropriate Government shall appoint such persons as members as it thinks fit to represent
that party .
d) Purpose and Objective – Promoting the settlement of an industrial dispute .
e) Vacancy to the post in the Board – In case of vacancy to the post of the Chairman, the
Appropriate Government shall notify the Board that the services of the Chairman is not
available and until a new Chairman is not appointed, the Board will not act and function.
4. COURTS OF ENQUIRY ( Section 6 of the Industrial Disputes Act, 1947 ) –
a) Appointment - The appropriate government may, as occasion arises by notification in the
Official Gazette, constitute a Court of Inquiry .
b) Purpose and Objective – The Purpose and Objective of the Courts if Enquiry is for inquiring
into any matter appearing to be connected with or relevant to an industrial dispute.
c) Composition - A court of Enquiry, may consist of one independent person or of such number
of independent persons as the appropriate government may think fit . In case , where a court
of enquiry consists of two or more members, one of them shall be appointed as the
Chairman.
d) Vacancy to the post of Chairman- A court of enquiry having the prescribed quorum, may act
not with standing the absence of the Chairman or any of its members or any vacancy in its
number: If the appropriate government notifies the court that the services of the Chairman
have ceased to be available, the court shall not act until a new Chairman has been
appointed.
5. LABOUR COURTS ( Section 7 of the Industrial Disputes Act, 1947 ) –
a) Appointment - The appropriate government may, by notification in the Official Gazette,
constitute one or more Labour Courts.
b) Purpose and Objective - Adjudication of industrial disputes relating to any matter specified in
the Second Schedule and for performing such other functions as may be assigned to them
under this Act.
c) Composition- A Labour Court shall consist of one person only to be appointed by the
appropriate government.
d) Qualification - A person qualified for appointment as the presiding officer of a Labour Court,
may possess the following qualifications-i) he is or has been, a judge of a High Court; or
ii) he has, for a period of at least three years, been a District Judge or an Additional District
Judge; or
iv) he has held any judicial office in India for at least seven years; or
v) he has been the presiding officer of a Labour Court constituted under any Provincial Act or
State Act for at least five years.
6. INDUSTRIAL TRIBUNALS ( Section 7A of the Industrial Disputes Act, 1947 ) *

a) Appointment - The appropriate government may, by notification in the Official Gazette, constitute
one or more Industrial Tribunals .
b) Purpose and objective - Adjudication of industrial disputes relating to any matter, whether
specified in the Second Schedule or the Third Schedule
c) Composition- A Tribunal shall consist of one person only to be appointed by the appropriate
government. The appropriate government may, if it so thinks fit, appoint two persons as
assessors to advise the Tribunal in the proceeding before it.
d) Qualification - A person qualified for appointment as the presiding officer of a Tribunal must
possess the following qualifications- i) he is, or has been, a Judge of a High Court; or ii) he has,
for a period of not less than three-years, been a District judge or an Additional District Judge ,or ,
.iii) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of
the State Labour Department, having a degree in law and minimum 7 years experience in the
Labour Department including 3 years of experience as a Conciliation Officer , or iv) he is an
officer of Indian Legal Service in Grade III with 3 years experience in that Grade.

7. National Tribunals ( Section 7B of the Industrial Disputes Act, 1947 )

a) Appointment - The Central Government may, by notification in the Official Gazette, constitute
one or more National Industrial Tribunals
b) Purpose and objective- Adjudication of industrial disputes which, in the opinion of the Central
Government, involve questions of national importance or are of such a nature that industrial
establishments situated in more than one State are likely to be interested in, or affected by, such
disputes.
c) Composition - A National Tribunal shall consist of one person only to be appointed by the
Central Government. The Central Government may, if it so thinks fit, appoint two persons as
assessors to advise the National Tribunal in the proceeding before it.
d) Qualifications- A person to be qualified for appointment as the presiding officer of a National
Tribunal he is, or has been, a Judge of a High Court.

CASE- LAWS-

I) Vijaya Bank

V/s.

Shyamal Kumar Lodh - SUPREME COURT OF INDIA

CIVIL APPEAL Nos. 4211 & 4212 OF 2007 Decided on 06-07-2010 CORAM- C.K. PRASAD, J.

HELD - Labour Court constituted under the Industrial Disputes Act, 1947 , within the local limits of
whose jurisdiction the establishment is situated, has jurisdiction to decide any dispute regarding
subsistence allowance. Here in the present case undisputedly dispute pertains to subsistence allowance
and the Labour Court where the workman had brought the action has been constituted under Section
7 of the Industrial Disputes Act, 1947 and further the appellant bank is situated within the local limits
of its jurisdiction.
 II) State of Maharashtra

V/s.

Labour Law Practitioners's Association BOMBAY HIGH COURT

O.S. Appeal No. 450 of 1979 CORAM -S.P. Bharucha and ; S.N. Variava, JJ. Decided on -09-12-1986

HELD - The Labour Court adjudicates upon disputes which are essentially of a civil nature. The Labour Court's
functions were held as far back as 1968 to be 'quasi-civil' in nature. This must apply to the Industrial Court. The
Industrial Court has original jurisdiction under the statue. It is also a principle Court, exercises supervision
over the Labour Court and Hears Appeals from the decisions of the Labour Courts. Accordingly, a member of
the Industrial Court may well be said to be a district judge. The Industrial Court and the Labour Court
constitute a hierarchy or system of courts, the latter being inferior to the former. The posts of Labour Court
judges would, being thus inferior to the post of the district judge, i.e., the Industrial Court Judge, form part of
the judicial service.

REFERENCE OF INDUSTRIAL DISPUTES TO THE AUTHORITIES – Section 10 of industrial Disputes Act, 1947

APPROPRIATE GOVERNMENT REFERENCE OF EXISTING INDUSTRIAL DISPUTE

OR APPREHENDED INDUSTRIAL DISPUTE

POWERS OF THE CIVIL COURTS BOARD OF CONCILIATION, LABOUR COURTS,

AS PER CIVIL PROCEDURE CODE,1908 INDUSTRIAL TRIBUNALS & NATIONAL TRIBUNALS

a) enforcing the attendance of any person and examining him on oath.

b) compelling the production of documents and material objects.

c) issuing commissions for the examination of witnesses.

d) in respect of such other matters as may be prescribed.

The Appropriate Government may by an order in writing , refer an existing industrial dispute or an
apprehended Industrial Dispute to the following –

i ) The Boards of Conciliation to promote the settlement of industrial dispute.

Ii ) Court of Enquiry , regarding any matter connected with or relevant to the industrial dispute.

Iii ) Labour Court or Industrial Tribunals for Adjudication of industrial dispute.

iv ) National Tribunal by the Central Government of any matter involving question of national
importance or any industrial dispute of an industry situated in more than one State.

Application made in the prescribed manner by the parties to the industrial dispute , whether jointly or
separately , for a reference of the industrial dispute to a Board, Labour courts, Industrial Tribunals or
National Tribunal, the appropriate government will make the reference accordingly , if satisfied that the
persons applying represent the majority of the party concerned . When the appropriate government
refers an industrial dispute to the Boards, Labour Courts or Industrial Tribunals , the government may
prohibit any strike or lockout which may be in connection with that dispute .

Main objective of reference of industrial dispute by the appropriate government are –

i ) Promotion to the speedy settlement of industrial dispute .

ii ) Mediate to bring a quick and amicable/peaceful settlement of industrial dispute.

Iii ) Maintain a good cordial relations between the employer and the workmen .

iv ) Maintain Industrial peace .

CASE- LAWS –

1) State of Bombay

V/S

K.P.Krishnan SUPREME COURT OF INDIA

( 1961) 1 S.C.R. 227 .

Held - The Supreme Court has interpreted the scope of Section 10 (1) of the Industrial Dispute Act, 1947
in the following manner –

i ) Discretion exercised by the Appropriate Government to either refer or refuse to refer an industrial
dispute to the Authorities like Boards , Labour Courts or Industrial Tribunals & ii ) The appropriate
cannot go into the merits of the dispute , but they can take the initiative to promote the settlement of
the industrial dispute in a peaceful manner by referring the dispute to the Authorities in order to
maintain industrial peace within that particular industry , where there is an existing dispute or an
apprehension of industrial dispute.

2 ) Telco Convoy Drivers Mazdoor Sangh V/S State of Bihar - 1989 (3) S.C.C. 271

Held- The Apex Court held that while exercising the power under Section 10 (1) of the Industrial
Disputes act, 1947 , the function of the Appropriate Government is an administrative function and not a
judicial or quasi-judicial function as the Appropriate Government cannot decide the merits of the case
like a judicial or quasi-judicial authority, but can refer an existing industrial dispute or apprehended
industrial dispute to the Concerned Authority .
Notes on Strikes and Lockouts under the Industrial Disputes Act, 1947 -

Section 2(q) of the Industrial Disputes Act, 1947 defines the term strike, it says, "strike" means
a cessation of work by a body of persons employed in any industry acting in combination, or a
concerted refusal, or a refusal, under a common understanding of any number of persons who
are or have been so employed to continue to work or accept employment. Whenever employees
want to go on strike they have to follow the procedure provided by the Act otherwise there strike
deemed to be an illegal strike.

Section 2 ( l ) of the Industrial Disputes Act, 1947, defines lock-out means the temporary
closing of a place of employment or the suspension of work, or the refusal by an employer to
continue to employ any number of persons employed by him

Restrictions & Prohibitions Strikes and Lockouts may be Legal but

on Illegal Strikes and Lockouts unjustified or may be Illegal but justified

Strikes and Lockouts must be Legal and Justified as per the Provisions of the Act.

Section 22(1) of The Industrial Dispute Act, 1947 put certain prohibitions on the right to strike.
It provides that no person employed in public utility service shall go on strike in breach of
contract:

a. Without giving to employer notice of strike within six weeks before striking; or
b. Within fourteen days of giving such notice; or
c. Before the expiry of the date of strike specified in any such notice as aforesaid; or
d. During the pendency of any conciliation proceedings before a conciliation officer and
seven days after the conclusion of such proceedings.

It is to be noted that these provisions do not prohibit the workmen from going on strike but
require them to fulfill the condition before going on strike. Further these provisions apply to a
public utility service only. The Industrial Dispute Act, 1947 does not specifically mention as to
who goes on strike. However, the definition of strike itself suggests that the strikers must be
persons, employed in any industry to do work.

General prohibition of strike-

The provisions of section 23 of the Industrial Disputes Act, 1947 are general in nature. It
imposes general restrictions on declaring strike in breach of contract in the both public as well
as non- public utility services in the following circumstances mainly: -

a. During the pendency of conciliation proceedings before a board and till the expiry of 7
days after the conclusion of such proceedings;
b. During the pendency and 2 month’s after the conclusion of proceedings before a Labour
court, Tribunal or National Tribunal;
 c. During the pendency and 2 months after the conclusion of arbitrator, when a notification
has been issued under sub- section 3 (a) of section 10 A;
d. During any period in which a settlement or award is in operation in respect of any of the
matter covered by the settlement or award.

The principal object of this section seems to ensure a peaceful atmosphere to enable a
conciliation or adjudication or arbitration proceeding to go on smoothly. This section because of
its general nature of prohibition covers all strikes irrespective of the subject matter of the dispute
pending before the authorities. It is noteworthy that a conciliation proceedings before a
conciliation officer is no bar to strike under section 23.

Illegal Strike or Lockout -

Section 24 of the Industrial Disputes Act, 1947 , provides that a strike in contravention of
section 22 and 23 is illegal. This section is reproduced below:

1. A strike or a lockout shall be illegal if,

i. It is commenced or declared in contravention of section 22 or section 23; or
ii. It is continued on contravention of an order made under sub section (3) of section
10 or sub section (4-A) of section 10-A.
2. Where a strike or lockout in pursuance of an industrial dispute has already commenced
and is in existence all the time of the reference of the dispute to a board, an arbitrator, a
Labour court, Tribunal or National Tribunal, the continuance of such strike or lockout
shall not be deemed to be illegal;, provided that such strike or lockout was not at its
commencement in contravention of the provision of this Act or the continuance thereof
was not prohibited under sub section (3) of section 10 or sub section (4-A) of 10-A.
3. A strike declared in the consequence of an illegal lockout shall not be deemed to be
illegal.

Consequence of illegal Strike -

Dismissal of workmen-

M/S Burn & Co. Ltd. V/s Their Workmen , - Supreme Court of India

The Supreme Court was laid down that mere participation in the strike would not justify
suspension or dismissal of workmen. Where the strike was illegal the Supreme Court held that
in case of illegal strike the only question of practical importance would be the quantum or kind of
punishment. To decide the quantum of punishment a clear distinction has to be made between
violent strikers and peaceful strikers.

Punjab National Bank V/s Their Employees , - Supreme Court of India

The Supreme Court held that in the case of strike, the employer might bar the entry of the
strikers within the premises by adopting effective and legitimate method in that behalf. He may
call upon employees to vacate, and, on their refusal to do so, take due steps to suspend them
from employment, proceed to hold proper inquires according to the standing order and pass
proper orders against them subject to the relevant provisions of the Act
Section 25 of the Industrial Disputes Act, 1947 - Prohibition of financial aid to illegal
strikes and Lockouts

No person shall knowingly expend or apply any money in direct furtherance or support of any
illegal strike or lock-out.

Section 26 of the Industrial Disputes Act, 1947 - Penalty for illegal strikes and Lockouts

(1) Any workman who commences, continues or otherwise acts in furtherance of, a strike which
is illegal under this Act, shall be punishable with imprisonment for a term which may extend to
one month, or with fine which may extend to fifty rupees, or with both.

(2) Any employer who commences, continues, or otherwise acts in furtherance of a lock-out
which is illegal under this Act, shall be punishable with imprisonment for a term which may
extend to one month, or with fine which may extend to one thousand rupees, or with both.

Section 27 of the Industrial Disputes Act, 1947 - Penalty for instigation, etc.

Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or
lock-out which is illegal under this Act, shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or with both.

Section 28 of the Industrial Disputes Act, 1947- Penalty for giving financial aid to illegal strikes
and Lockouts

Any person who knowingly expends or applies any money in direct furtherance or support of any illegal
strike or lock-out shall be punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to one thousand rupees, or with both.

CASE – LAWS –

1. Lakshmi Devi Sugar Mills Pvt. Ltd.

V/S
PT. Ram Sarup - Supreme Court of India , 1957 I L.L.J. 17 S.C.

Held – The Supreme Court Held that Sudden stoppage of work by the Workmen adopting the
attitude of “ tools down” in a public utility service industry , without giving any advance Notice to
the Employer will amount to Illegal Strike on the part of the workmen

2. Crompton Greaves Ltd.

V/S
Its Workmen - Supreme Court of India , 1978 II L.L.J.89 S.C.

Held- The Supreme Court Held that an order of the Industrial Tribunal to entitle the workmen to
wages for the entire period of strike should be legal as well justified . In this case , the workmen of
Crompton Greaves Ltd. Had resorted to a legal and justified strike as the Employer had
retrenched as many as 93 workers, without informing the Authority , during the pendency of a
industrial dispute before the Authority i.e. The Assistant Labour Commissioner . It was also held
that the allegation of the management that the workmen were violent during the strike could not
be proved. Hence the Appeals filed by the Management was dismissed, as the strike was
peaceful and non-violent , along with the strike being legal and Justified.