Case Note & Summary
The dispute arose between the appellant, H.H. The Maharana Sahib Shri Bhagwatsingh Bahadur of Udaipur, recognized as the Ruler of Udaipur with effect from July 4, 1955, and his employees in the Motor Garage Department regarding conditions of employment and claims for retrenchment and other compensation and leave facilities. The State of Rajasthan, on December 18, 1957, referred the dispute under Section 10 of the Industrial Disputes Act, 1947 to the Industrial Tribunal, Rajasthan. The appellant raised two preliminary objections before the Industrial Tribunal: first, that the reference was not maintainable without the previous sanction of the Central Government under Section 87B of the Code of Civil Procedure, 1908, and second, that on the date of reference no Industrial Tribunal was constituted under Section 7A of the Industrial Disputes Act, 1947 as amended by Act 36 of 1956, and upon reconstitution the reference became incompetent. The Tribunal rejected both objections. The appellant filed a writ petition before the Rajasthan High Court, which was dismissed by judgment dated March 28, 1962 in D.B. Civil Writ Petition No. 164 of 1961. The appellant then appealed to the Supreme Court with a certificate granted by the High Court. The appellant contended that without the sanction of the Union Government under Section 87B of the Code of Civil Procedure, the reference to the Industrial Tribunal was incompetent because he was a Ruler of an Indian State and entitled to sovereign immunities under Article 362 of the Constitution. He also argued that the Industrial Tribunal was not validly constituted on the date of reference. The State of Rajasthan, through the Advocate-General, argued that the proceeding under the Industrial Disputes Act is not a suit and the Industrial Tribunal is not a court, hence Section 86 CPC did not apply; that Article 362 only preserves personal rights, privileges and dignities, not sovereign immunities; and that the Rajasthan Industrial Tribunal (Constitution and Proceedings) Validating Act, 1959 cured any defect in the constitution of the Tribunal. The Supreme Court held that Section 86 read with Section 87B of the Code of Civil Procedure protects a Ruler from being sued in a court, not against the institution of any other proceeding which is not in the nature of a suit. A proceeding for adjudication under the Industrial Disputes Act is founded in a reference made by the Government under Section 10 and is not commenced by a plaint or petition, and an Industrial Tribunal is not a court within the meaning of Section 86. Section 86 excludes the jurisdiction of civil courts and must be strictly construed. Consequently, no previous sanction of the Central Government was required for the reference. On the second issue, the Court observed that the position of former Rulers of Indian States had fundamentally altered since 1947; the appellant had become a citizen of India and his recognition as Ruler under Article 366(22) did not alter that status. Article 362 only directs that due regard shall be had to personal rights, privileges and dignities guaranteed under covenants, but it does not confer sovereign immunities from proceedings under industrial laws. Finally, the Court held that by sub-section (2) of the Rajasthan Industrial Tribunal (Constitution and Proceedings) Validating Act, 1959, the Tribunal originally constituted under Section 7 of the Industrial Disputes Act before its amendment was deemed to have been duly constituted under Section 7A, and the reference made on December 18, 1957 was deemed valid. The Validating Act was within the legislative competence of the State Legislature under Entry 22 List III of the Seventh Schedule, and having been reserved for the President and received his assent, it prevailed in Rajasthan under Article 254(2). Accordingly, the Supreme Court dismissed the appeal and upheld the order of the High Court and the Industrial Tribunal, holding that the reference was competent.
Headnote
A) Civil Procedure - Sovereign Immunity - Section 86, 87B of Code of Civil Procedure, 1908 - Applicability to Industrial Adjudication - The appellant, recognized as Ruler under Article 366(22), contended that reference to Industrial Tribunal under Industrial Disputes Act required previous sanction of Central Government under Section 87B read with Section 86 CPC - Court held that Section 86 protects a Ruler from being sued in a court, not from other proceedings; industrial adjudication is not commenced by plaint and Industrial Tribunal is not a court; Section 86 excludes civil court jurisdiction and must be strictly construed - Held that reference without sanction was competent. B) Constitution of India - Rights and Privileges of Rulers - Article 362 - Nature and Scope - Former rulers' privileges not sovereign immunities; since 1947 and Constitution, appellant is a citizen; Article 362 only directs due regard to personal rights, privileges and dignities but does not create immunity from industrial adjudication - Held that Article 362 does not bar reference. C) Industrial Disputes Act, 1947 / Rajasthan Validating Act - Constitution of Industrial Tribunal - Section 7A and Rajasthan Industrial Tribunal (Constitution and Proceedings) Validating Act, 1959 - The reference made on December 18, 1957 was deemed valid by Rajasthan Industrial Tribunal (Constitution and Proceedings) Validating Act, 1959, which retrospectively validated constitution of Tribunal under Section 7A; Act within State legislative competence under Entry 22 List III and prevailed under Article 254(2) after Presidential assent - Held that reference was competent.
Issue of Consideration
Whether reference under Section 10 Industrial Disputes Act against a Ruler requires sanction under Section 87B CPC; Whether Article 362 preserves sovereign privileges barring industrial adjudication; Whether reference made on December 18, 1957 was incompetent due to non-constitution of Tribunal under Section 7A
Final Decision
Appeal dismissed. The Supreme Court held that the reference under Section 10 of the Industrial Disputes Act was competent without sanction under Section 87B CPC, Article 362 did not bar the reference, and the Rajasthan Industrial Tribunal (Constitution and Proceedings) Validating Act, 1959 validated the constitution of the Tribunal and the reference.
Law Points
- Section 86 CPC protects Ruler from suit
- not other proceedings
- Industrial Tribunal not a court
- proceeding under Industrial Disputes Act not commenced by plaint
- Article 362 does not grant sovereign immunity
- Rajasthan Validating Act within legislative competence
- Article 254(2) prevails after Presidential assent
- reference under Section 10 Industrial Disputes Act competent without Central Government sanction
