Supreme Court Allows Workmen's Appeal; Holds That Individual Dispute Became Industrial Dispute Due to Union Espousal. Dispute Over Classification as Proofreaders Transformed by Delhi Union of Journalists' Espousal, Meeting Test Under Sections 2(k) And 10 of Industrial Disputes Act, 1947.

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Case Note & Summary

The dispute originated when two workmen, Gulab Singh and Satya Pal, employed by Indian Express (P) Ltd. as copy holders since 1955 and 1956, alleged that they were consistently assigned the duties of proofreaders and sought reclassification accordingly. The management, however, declined to treat them as proofreaders, issuing an order in July 1959 that reaffirmed their designation as copy holders. The Delhi Union of Journalists, an outside union, espoused the cause of the two workmen, with its executive committee passing a resolution on December 1, 1960, and subsequently initiating conciliation proceedings. The Delhi Administration referred the dispute to the Industrial Tribunal on August 2, 1961. Before the Tribunal, the management contended that the dispute was an individual dispute and not an industrial dispute, thus robbing the Tribunal of jurisdiction. The Tribunal accepted this contention, holding that the union lacked nexus to the dispute because the 31 working journalists who had joined the union did so after the cause of action arose in July 1959, and that an outside union could not espouse the grievance. The workmen appealed to the Supreme Court. The core legal issue was whether the dispute had been transformed into an industrial dispute under Section 2(k) of the Industrial Disputes Act, 1947, by the union's espousal. The appellants argued that the union's resolution and initiation of conciliation proceedings were sufficient to convert the individual dispute into an industrial dispute. The respondent countered that the union was an outsider union and that the espousal was untimely. The Supreme Court examined prior decisions, including Bombay Union of Journalists v. The Hindu, Central Provinces Transport Services Ltd. v. Raghunath Gopal Patwardhan, Newspapers Ltd. v. State Industrial Tribunal U.P., and Workmen v. Dharampal Premchand. It reiterated that an individual dispute can mature into an industrial dispute if it is taken up by a trade union or an appreciable number of workmen. The determinative test is whether at the date of reference the dispute was supported by such a body. The Court found that the union's resolution and its follow-up action before the conciliation officer clearly established espousal. It rejected the argument that the espousal was beyond time, holding that espousal can only occur after the dispute or cause of action arises. On the question of the union's representative character, the Court noted that 31 out of the 131 working journalists in the respondent company (or 68 if limited to those in Delhi) were members of the Delhi Union of Journalists, amounting to about 25%, which conferred sufficient representative character. Since there was no internal union at the material time, the outside union could validly espouse the cause. The Court concluded that the Industrial Tribunal erred in treating the dispute as purely individual. The appeal was allowed, the Tribunal's award set aside, and the dispute declared to be an industrial dispute, with a direction to the Tribunal to adjudicate the merits of the reference.

Headnote

A) Industrial Disputes - Individual Dispute Transformation - Requirements for Individual Dispute to become Industrial Dispute - Industrial Disputes Act, 1947, Sections 2(k), 10 - The dispute of two workmen initially an individual dispute can be transformed into an industrial dispute if it is espoused by a trade union or by an appreciable number of workmen. The court held that the Delhi Union of Journalists having passed a resolution and initiated conciliation proceedings, the dispute was transformed. Held that espousal by a union is sufficient if the union has representative character (Paras 917 C; 919 C-G).

B) Industrial Disputes - Test for Industrial Dispute - Date of Reference Test - Industrial Disputes Act, 1947, Sections 2(k), 10 - The test for determining whether a dispute is an industrial dispute is whether at the date of the reference the dispute was taken up and supported by a union or by an appreciable number of workmen. The court followed Bombay Union of Journalists v. The Hindu, Bombay, [1962] 3 S.C.R. 893 and held that the union had espoused the cause before the reference (Paras 917 C-D).

C) Industrial Disputes - Espousal by Outside Union - Representative Character of Union - Industrial Disputes Act, 1947, Sections 2(k), 10 - An outside union can espouse a dispute of workmen in an establishment if it possesses representative character vis-à-vis the workmen of that establishment. Membership of about 25% of the working journalists in the respondent company gave the Delhi Union of Journalists representative character. Held that the union’s espousal was valid (Paras 919 C-G).

D) Industrial Disputes - Timeliness of Espousal - Espousal After Cause of Action - Industrial Disputes Act, 1947, Sections 2(k), 10 - Espousal by a union can only take place after the dispute or cause of action has arisen, and in this case, the union’s resolution and initiation of conciliation proceedings after the management’s refusal to treat workmen as proof-readers in July 1959 was timely. Held that espousal was not beyond time (Paras 917 C-D; 919 C-G).

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Issue of Consideration

Whether the dispute of two workmen, espoused by the Delhi Union of Journalists, was transformed into an industrial dispute under Section 2(k) of the Industrial Disputes Act, 1947, and whether the Industrial Tribunal had jurisdiction to adjudicate; whether the union's espousal was timely and whether the union had the requisite representative character.

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Final Decision

The Supreme Court allowed the appeal, set aside the Industrial Tribunal's award dated April 10, 1967, and held that the dispute was an industrial dispute as it was espoused by a union with representative character. The matter was remanded to the Industrial Tribunal for adjudication on merits.

Law Points

  • Legal points not extracted
  • An individual dispute may become an industrial dispute if taken up by a trade union or an appreciable number of workmen
  • The test of an industrial dispute is whether at the date of reference the dispute is supported by a union or appreciable number of workmen
  • Union espousal can transform an individual dispute into an industrial dispute
  • An outside union can espouse if it has representative character vis-a-vis the workmen of the establishment
  • Membership of about 25% of workmen in the union confers representative character
  • Espousal after cause of action arises is timely
  • Resolution followed by initiation of conciliation proceedings constitutes espousal
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Case Details

1968 LawText (SC) (11) 33

Civil Appeal No. 1733 of 1967

1968-11-26

Shelat, J.M., Bhargava, Vishishtha

Citation not available, 1970 AIR 737, 1969 SCR (2) 913, 1969 SCC (1) 228

M.K. Ramamurti, Shyamlala Pappu, Vineet Kumar, Madan Mohan, S.V. Gupte, Lalit Bhasin, S.K. Mehta, K.L. Mehta

Workmen of Indian Express (P) Ltd.

The Management of Indian Express (P) Ltd.

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Nature of Litigation

Industrial dispute concerning reclassification of two workmen from copyholders to proofreaders and whether the dispute was an industrial dispute under the Industrial Disputes Act, 1947.

Remedy Sought

The workmen sought a reference to the Industrial Tribunal for adjudication of their claim to be treated as proofreaders and accordingly classified.

Filing Reason

The management refused to recognize the workmen as proofreaders despite them performing proofreading duties, and continued to classify them as copyholders.

Previous Decisions

The Industrial Tribunal held that the dispute was an individual dispute and not an industrial dispute, and therefore it had no jurisdiction to adjudicate the reference.

Issues

Whether the dispute of the two workmen, espoused by the Delhi Union of Journalists, was an industrial dispute within the meaning of Section 2(k) of the Industrial Disputes Act, 1947? Whether the Delhi Union of Journalists had the representative character to espouse the dispute? Whether the espousal was timely?

Submissions/Arguments

Appellants argued that the resolution dated December 1, 1960 and the initiation of conciliation proceedings by the union transformed the individual dispute into an industrial dispute. Respondent contended that the union was an outside union and that the dispute was only an individual dispute, not industrial, and that the union lacked representative character as the 31 workmen joined after the cause of action.

Ratio Decidendi

An individual dispute can become an industrial dispute if it is espoused by a trade union or by an appreciable number of workmen. The test is whether at the date of the reference the dispute was taken up and supported by a union or by an appreciable number of workmen. An outside union can espouse such a dispute if a substantial number of workmen from the establishment are members, giving it a representative character. Espousal after the cause of action has arisen is timely. A resolution passed by the union's executive committee followed by initiation of conciliation proceedings is sufficient to constitute espousal.

Judgment Excerpts

the test of an industrial dispute is whether at the date of the reference the dispute was taken up and supported by a union, or by an appreciable number of workmen. Espousal by a union is regarded as sufficient, for, that means that it is an espousal by an appreciable number of workmen in that establishment. it is not possible to appreciate how the espousal by the union can be said to be beyond time as such espousal can only take place after and not before the dispute arose, or as counsel put it, the cause of action arose.

Procedural History

The two workmen were employed as copyholders. In July 1959, the management issued an order classifying them as copyholders. Despite performing proofreading duties, the management refused to recognize them as proofreaders. The Delhi Union of Journalists espoused their cause and initiated conciliation proceedings. On August 2, 1961, the Delhi Administration referred the dispute to the Industrial Tribunal. The Tribunal held by its award dated April 10, 1967 that the dispute was not an industrial dispute and it had no jurisdiction. The workmen appealed to the Supreme Court by special leave.

Acts & Sections

  • Industrial Disputes Act, 1947: 2(k), 10
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