Case Note & Summary
The dispute arose from the termination of the appellant's services by M/s. Electric (India) Ltd., leading to an industrial dispute referred to the Labour Court by the State Government under section 4-K of the U.P. Industrial Disputes Act, 1947. The Labour Court ruled in favor of the appellant, declaring the termination illegal and ordering reinstatement with back wages. However, the State Government remitted the award for reconsideration under sub-section (4) of section 6 of the Act without publishing it in the Official Gazette, prompting the appellant to challenge this order in the High Court. The High Court upheld the remittance but set aside the transfer of the case to the Industrial Tribunal. The Supreme Court, upon appeal, examined the constitutional validity of the remittance provision, finding it lacked necessary limitations and could lead to arbitrary exercise of power by the State Government. The Court emphasized that the absence of guidelines for such power could result in grave injustice, particularly in cases involving state-owned industries. Ultimately, the Court declared sub-section (4) unconstitutional, ordered the publication of the original award, and allowed the parties to seek legal remedies thereafter.
Headnote
A) Constitutional Law - Validity of Statutory Provisions - Sub-section (4) of section 6 of the U.P. Industrial Disputes Act, 1947 - The provision was struck down as it conferred unguided and uncontrolled powers on the State Government, violating Article 14 of the Constitution. The Court held that the absence of necessary statutory guidelines for the exercise of such power could lead to arbitrary decisions, undermining the principles of social justice (Paras 487H-488C).
Issue of Consideration
Whether sub-section (4) of section 6 of the U.P. Industrial Disputes Act, 1947 is unconstitutional and whether the order remitting the award for reconsideration was valid.
Final Decision
The Supreme Court declared sub-section (4) of section 6 of the U.P. Industrial Disputes Act, 1947 unconstitutional, striking it down for conferring unguided powers on the State Government. The Court ordered the State Government to publish the award under section 6(3) of the Act, allowing parties to seek legal remedies thereafter.
Law Points
- Constitutional validity
- Industrial Disputes
- Quasi-judicial authority
- Unguided power
- Judicial review
