Case Note & Summary
The case involved a trade union representing employees of the Chambal Hydel Irrigation Scheme in Madhya Pradesh, which raised three demands: Chambal allowance, dearness allowance equivalent to Central Government employees, and wages for a 20-day strike in 1966. After unsuccessful attempts to settle the disputes, the union sought a reference to the Tribunal under the Industrial Disputes Act, 1947. The State Government initially refused to refer the matter, claiming the Act did not apply as the scheme was not an industry. The High Court intervened, directing the Government to reconsider its stance, but the Government continued to decline reference, citing financial burdens and potential administrative issues. The Supreme Court ultimately held that the Government had exceeded its jurisdiction by making unilateral decisions on the merits of the demands, which should be adjudicated by the Tribunal. The Court set aside the High Court's judgment, allowing the appeal and directing the State Government to refer all demands to the Tribunal for adjudication.
Headnote
A) Industrial Disputes - Jurisdiction of State Government - Refusal to Refer Disputes - Industrial Disputes Act, 1947, Sections 10, 12(5) - The State Government's refusal to refer the disputes raised by the trade union was beyond its powers under the Act, as it constituted an adjudication of the demands rather than a mere reference. The court held that the adjudication of demands should be left to the Tribunal, and the reasons provided by the State Government were insufficient to deny a reference (Paras 1.1-1.5).
Issue of Consideration
Whether the State Government exceeded its jurisdiction in refusing to refer the disputes raised by the trade union to the Tribunal under the Industrial Disputes Act, 1947.
Final Decision
The Supreme Court set aside the High Court's judgment, allowed the appeal, and directed the State Government to refer all the demands raised by the appellant to the appropriate Tribunal, with costs quantified at Rs. 2,500.
Law Points
- Jurisdiction of State Government
- Reference of disputes
- Industrial Disputes Act
- 1947
- Section 10
- Section 12(5)
- Adjudication by Tribunal


