Case Note & Summary
The dispute arose between the Telco Convoy Drivers Mazdoor Sangh and the State of Bihar regarding the employment status of convoy drivers at Tata Engineering & Locomotive Co. Ltd. (TELCO). The Sangh demanded that the convoy drivers be granted permanent status and benefits available to permanent employees. The Deputy Labour Commissioner initially refused to make a reference under section 10(1) of the Industrial Disputes Act, 1947, citing an opinion from the Law Department that no employer-employee relationship existed. The Sangh filed a writ petition in the High Court, which was dismissed but allowed the Sangh to approach the appropriate Government again. After further representations, the Government again refused to make a reference, leading to the current appeal. The Supreme Court analyzed whether the Government could consider the merits of the dispute while deciding on a reference. The Court concluded that the Government's role was administrative and it could not adjudicate the merits of the dispute. The Court directed the State of Bihar to make a reference to the Industrial Tribunal, emphasizing that the Government should not usurp the Tribunal's powers. The appeal was allowed, and the High Court's judgment was set aside without costs.
Headnote
A) Industrial Disputes - Reference by Government - Power to make a reference under section 10(1) - The Government's function is administrative and not judicial, thus it cannot adjudicate the merits of the dispute. - Industrial Disputes Act, 1947, Sections 10, 12 - The court held that the Government exceeded its jurisdiction by adjudicating the dispute regarding the employment status of convoy drivers instead of merely determining if a dispute exists or is apprehended. The State Government was directed to make a reference to the Industrial Tribunal. (Paras 807A-809A)
Issue of Consideration
Whether the appropriate Government can delve into the merits of a dispute while making a reference under section 10(1) of the Industrial Disputes Act, 1947.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the State of Bihar to make a reference of the dispute raised by the Telco Convoy Drivers Mazdoor Sangh to an appropriate Industrial Tribunal under section 10(1) of the Industrial Disputes Act within one month.
Law Points
- Administrative function
- Industrial dispute
- Reference under section 10
- Merits of dispute
- Employer-employee relationship



