Supreme Court Allows Appeal in Industrial Dispute Case — Government Directed to Make Reference. The Court found 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 under the Industrial Disputes Act, 1947.

In Favour of Accused
  • 1
Judgement Image
Font size:
Print

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)

Subscribe to unlock Headnote Subscribe Now

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.

Subscribe to unlock Issue of Consideration Subscribe Now

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
Subscribe to unlock Law Points Subscribe Now

Case Details

1989 LawText (SC) (04) 2

Civil Appeal No. 2534 of 1989

1989-04-28

Dutt, M.M., Thommen, T.K.

1989 AIR 1565, 1989 SCR (2) 802, 1989 SCC (3) 271

G.B. Pai, S.K. Sinha, Shanti Bhushan, S. Sukumaran, D.N. Misra, S.B. Upadhyay, B.B. Singh

Telco Convoy Drivers Mazdoor Sangh

State of Bihar

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging the refusal to make a reference under the Industrial Disputes Act.

Remedy Sought

The appellant sought a writ of mandamus to compel the State of Bihar to refer the dispute to the Industrial Tribunal.

Filing Reason

The refusal of the Deputy Labour Commissioner to make a reference under section 10(1) of the Industrial Disputes Act.

Previous Decisions

The High Court dismissed the initial writ petition but allowed the Sangh to approach the Government again.

Issues

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. Whether the Government's refusal to make a reference was justified.

Submissions/Arguments

The appellant argued that the Government exceeded its jurisdiction by adjudicating the dispute instead of making a reference. The respondent contended that the Government had the jurisdiction to determine if an industrial dispute existed.

Ratio Decidendi

The appropriate Government's function under section 10(1) of the Industrial Disputes Act is administrative, not judicial, and it cannot adjudicate the merits of a dispute.

Judgment Excerpts

The Government is entitled to form an opinion as to whether an industrial dispute 'exists or is apprehended'. The function of the appropriate Government is an administrative function and not a judicial or quasi-judicial function. The dispute should be adjudicated by the Industrial Tribunal.

Procedural History

The appellant filed a writ petition in the High Court after the Deputy Labour Commissioner's refusal to make a reference. The High Court dismissed the petition but allowed the Sangh to approach the Government again. After further refusals by the Government, the appellant appealed to the Supreme Court.

Acts & Sections

  • Industrial Disputes Act, 1947: 10, 12
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Dismisses State Appeal in Police Disciplinary Case; Income Criteria for Backward Class Candidates Not Applicable to General Category Recruits. The Court Held that Under Karnataka State Police Disciplinary Proceedings Rules, 1965, Rule 6...
Related Judgement
Supreme Court Supreme Court Upholds Detention Order Under National Security Act Due to Preventive Measures. Preventive Detention Justified When Likelihood of Prejudicial Activities Exists, Even Without Criminal Charges.