Supreme Court Allows Writ Petitions for Reference of Industrial Disputes to Tribunal Due to Improper Refusal. Government's Refusal to Refer Disputes Found Based on Irrelevant Grounds Under Section 10 of the Industrial Disputes Act, 1947.

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Case Note & Summary

The case involved multiple writ petitions filed by workmen who were dismissed from service on grounds of misconduct after disciplinary enquiries. They contended that their dismissals were illegal and raised industrial disputes, which the appropriate Government declined to refer to the Industrial Tribunal under Section 10 of the Industrial Disputes Act, 1947. The Government's refusal was based on the assertion that the dismissals followed valid enquiries. The Supreme Court examined whether the Government's function in making or refusing a reference was administrative or quasi-judicial. It concluded that the Government's role was administrative, and it could not adjudicate on the merits of the dispute. The court held that if the reasons for refusal were irrelevant or extraneous, a writ of mandamus could be issued to compel the Government to reconsider its decision. The court allowed the writ petitions, directing the appropriate Government to reassess its decisions based on relevant considerations. The employer was ordered to pay costs to the petitioners, while no costs were awarded in one of the petitions.

Headnote

A) Administrative Law - Function of Government - Nature of Function - Administrative or Quasi-Judicial - The appropriate Government performs an administrative act in making a reference under Section 10(1) of the Industrial Disputes Act, 1947, and this does not transform it into a quasi-judicial function. The court held that the Government cannot delve into the merits of the dispute while exercising this power, as it would exceed the authority conferred by Section 10. (Paras 692-693)

B) Judicial Review - Grounds for Refusal - Relevance of Grounds - If the reasons for refusing to make a reference under Section 10 are irrelevant or extraneous, the court can issue a writ of mandamus directing the Government to reconsider its decision. The court emphasized that the Government's determination must be based on relevant considerations. (Paras 693-694)

C) Industrial Disputes - Examination of Enquiry - The Tribunal must examine the legality and validity of the enquiry conducted by the employer. The court noted that a mere statement of a domestic enquiry being held is insufficient for the Government to refuse a reference, as it would undermine the purpose of Section 2A of the Act. (Paras 695-696)

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Issue of Consideration

Whether the appropriate Government was justified in declining to make a reference of an industrial dispute for adjudication under Section 10 of the Industrial Disputes Act, 1947.

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Final Decision

The Supreme Court allowed the writ petitions, directing the appropriate Government to reconsider its decisions regarding the references under Section 10 of the Industrial Disputes Act, 1947. The court emphasized that the Government must base its decisions on relevant considerations and not extraneous grounds. The employer was ordered to pay costs to the petitioners.

Law Points

  • Administrative function
  • Quasi-judicial function
  • Writ of mandamus
  • Industrial Disputes Act
  • 1947
  • Section 10
  • Judicial review
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Case Details

1985 LawText (SC) (04) 9

Writ Petition Nos. 16226-29 and 16418 of 1984

1985-04-11

Desai, D.A., Misra Rangnath

1985 AIR 915, 1985 SCR (3) 686, 1985 SCC (3) 189, 1985 SCALE (1) 713

A K. Goel, Harbans Lal, Ashok Grover, O.P. Sharma, R.N. Poddar, C.V. Subba Rao

Ram Avtar Sharma & Ors.

State of Haryana and Anr.

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Nature of Litigation

Writ petitions challenging the refusal of the Government to refer industrial disputes to the Tribunal.

Remedy Sought

Petitioners sought a writ of mandamus directing the Government to reconsider its refusal to make a reference.

Filing Reason

Petitioners contended that their dismissals were illegal and the Government's refusal was based on irrelevant grounds.

Previous Decisions

The Government had previously declined to make a reference based on the findings of domestic enquiries.

Issues

Whether the appropriate Government was justified in declining to make a reference of an industrial dispute for adjudication under Section 10 of the Industrial Disputes Act, 1947. What are the parameters of power of the appropriate Government under Section 10 while making or refusing to make a reference to an industrial tribunal?

Submissions/Arguments

Petitioners argued that the Government's refusal was based on irrelevant and extraneous grounds. Respondents contended that the dismissals were justified based on valid domestic enquiries.

Ratio Decidendi

The appropriate Government's function under Section 10 of the Industrial Disputes Act, 1947 is administrative, and it cannot adjudicate on the merits of the dispute. If the reasons for refusing a reference are irrelevant or extraneous, a writ of mandamus can be issued to compel reconsideration.

Judgment Excerpts

In making a reference u/s. 10(1) the appropriate government performs an administrative act and not a judicial or quasi-judicial act. If the administrative determination is based on the irrelevant, extraneous or grounds not germane to the exercise of power it is liable to be questioned in exercise of the power of judicial review. The reasons given by the Government would tantamount to adjudication which is impermissible.

Procedural History

The petitioners were dismissed from service after disciplinary enquiries. They raised industrial disputes, which the Government declined to refer to the Tribunal. The petitioners filed writ petitions challenging the Government's refusal.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
  • Constitution of India: Article 32, Article 226
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