Case Note & Summary
The litigation arose from a dispute over certification of standing orders for the Bhilai Steel Project, an industrial establishment under the control of the Central Government. The General Manager of Bhilai Steel Project submitted draft standing orders for certification on June 9, 1960 to the Certifying Officer appointed under the Industrial Employment (Standing Orders) Act, 1946 (Central Act). Several workers' unions, including the respondent Steelworkers' Union, objected that the Certifying Officer lacked jurisdiction, contending that the Madhya Pradesh Industrial Workmen (Standing Orders) Act, 1959 applied to the industry to the exclusion of the Central Act. The Certifying Officer overruled the objection and certified the draft standing orders on August 6, 1962. The unions appealed to the Industrial Court, Madhya Pradesh, which allowed the appeals and set aside the certification as void, holding that the Certifying Officer had no jurisdiction. The General Manager obtained special leave to appeal to the Supreme Court. The core legal issues before the Supreme Court were whether the Certifying Officer under the Central Act had jurisdiction to certify the standing orders on August 6, 1962 despite lacking jurisdiction on June 9, 1960, and which law—Central Act or State Act—applied to the Bhilai Steel Industry on the date of certification. The appellant argued that the initial want of jurisdiction was cured before the certification order was passed because the Central Act had become applicable to Bhilai Steel Industry by that date. The respondents supported the Industrial Court's view that the State Act remained applicable, relying on Section 25 of the Madhya Pradesh General Clauses Act to save the earlier notification. The Supreme Court examined the legislative history. The Central Act came into force on April 23, 1946. The C.P. & Berar Industrial Disputes and Settlement Act, 1947, extended to Madhya Pradesh, and by notifications dated November 20, 1947 and July 22, 1958, its Sections 2 to 61, including Section 30 on standing orders, became applicable to the Steel Industry at Bhilai. In 1959, the Madhya Pradesh Legislature enacted Act XIX of 1959, which repealed Section 30 of the 1947 Act effective December 31, 1960. However, Section 1(3) of the 1959 Act contained a proviso that it would not apply, except with the consent of the Central Government, to an industrial establishment under the control of the Central Government. The Bhilai Steel Industry was admittedly under the control of the Central Government, and no such consent was given. Therefore, the 1959 Act did not apply to Bhilai. Consequently, from December 31, 1960 onward, the Central Act governed standing orders for the Bhilai Steel Industry. Later, the Madhya Pradesh Industrial Establishment (Standing Orders) Act, 1961 (Act XXVI of 1961) came into force on November 25, 1961, and initially applied to Bhilai because it lacked a similar proviso. However, by the Madhya Pradesh Act V of 1962, a proviso was added to Section 2(1) of the 1961 Act, excluding undertakings carried on by or under the authority of the Central Government, effective from April 29, 1962. Thus, before August 6, 1962, the Central Act again became applicable. On the legal principle, the Supreme Court relied on Municipal Board, Pushkar v. State Transport Authority, Rajasthan, holding that an application for certification, though invalid when made due to lack of jurisdiction, became valid when the officer acquired jurisdiction before disposal. The application was deemed renewed immediately after acquisition of jurisdiction. The Court rejected the Industrial Court's reliance on Section 25 of the M.P. General Clauses Act to save the notification under the repealed 1947 Act, holding that the notification was inconsistent with the re-enacted 1959 Act because of its proviso excluding Bhilai, and therefore could not be saved. Accordingly, the Supreme Court allowed the appeals, set aside the Industrial Court's order, and upheld the certification of standing orders dated August 6, 1962 as valid and within jurisdiction. The decision confirmed that on the date of certification, the Certifying Officer under the Central Act had jurisdiction.
Headnote
A) Labour Law - Certification of Standing Orders - Jurisdiction of Certifying Officer - Industrial Employment (Standing Orders) Act, 1946; Madhya Pradesh Industrial Workmen (Standing Orders) Act, 1959 - Application for certification submitted on June 9, 1960 to Certifying Officer under Central Act was initially without jurisdiction because State Act applied; however before August 6, 1962 when certification order was passed, the Central Act had become applicable to Bhilai Steel Industry, thus officer had acquired jurisdiction. Held that certification cannot be held void merely due to initial lack of jurisdiction; application deemed renewed upon acquisition of jurisdiction and certification valid. B) Statutory Interpretation - Applicability of State Act to Central Government Undertaking - Proviso to Section 1(3) - Madhya Pradesh Industrial Workmen (Standing Orders) Act, 1959, Section 1(3) proviso - Bhilai Steel Industry was an industrial establishment under control of Central Government, and the proviso excluded such establishments from the Act without consent of Central Government, which was never given. Held that M.P. Act 19 of 1959 did not apply to Bhilai Steel Industry; after repeal of Section 30 of C.P. & Berar Industrial Disputes and Settlement Act, 1947 on December 31, 1960, the Central Act governed standing orders. C) Statutory Interpretation - Saving of Notifications under Repealed and Re-enacted Legislation - Section 25 of Madhya Pradesh General Clauses Act, 1958 - M.P. General Clauses Act, 1958, Section 25 - Industrial Court held that notification dated July 22, 1958 under repealed 1947 Act continued to be effective by virtue of Section 25 M.P. General Clauses Act, but Supreme Court found that notification was inconsistent with the re-enacted 1959 Act due to its proviso excluding Bhilai, hence Section 25 could not save it. Held that State Act did not apply and certification by Central Act officer was valid.
Issue of Consideration
Whether Certifying Officer under Industrial Employment (Standing Orders) Act, 1946 had jurisdiction to certify standing orders on August 6, 1962 despite lacking jurisdiction when application was filed on June 9, 1960; and whether on that date, Central Act or Madhya Pradesh Act applied to Bhilai Steel Industry
Final Decision
Supreme Court allowed the appeals, set aside the Industrial Court's order, and upheld the certification of standing orders dated August 6, 1962 as valid and within jurisdiction. Held that on August 6, 1962, the Central Act applied to Bhilai Steel Industry; Section 25 of M.P. General Clauses Act did not save the old notification because it was inconsistent with the new Act's proviso.
Law Points
- An application invalid at filing becomes valid when jurisdictional defect is cured before adjudication
- jurisdiction determined as on date of certification
- proviso to Section 1(3) of M.P. Act 19 of 1959 excludes Central Government undertakings without consent
- Section 25 of M.P. General Clauses Act cannot save notification inconsistent with re-enacted provisions
