Case Note & Summary
The case involves a dispute between the Management of M/s Grasim Industries Ltd. (appellant) and the Harihar Polyfibers Employees Union (respondent No.1) regarding the certification of standing orders under the Industrial Employment (Standing Orders) Act, 1946. The Management challenged the certification granted by the Deputy Labour Commissioner (Certifying Officer) and the appellate order of the Additional Labour Commissioner, which were upheld by the learned Single Judge in Writ Petition No.106307 of 2018. The High Court of Karnataka, Dharwad Bench, after recalling its earlier judgment in review petitions, reconsidered the matter. The Court found that the Certifying Officer had not considered the objections raised by the Management and had not provided a proper opportunity of hearing as required under Section 4 of the Act. The Appellate Authority's order was also found to be cryptic and lacking reasons. Consequently, the Court allowed the writ appeal, set aside the orders of the Certifying Officer and the Appellate Authority, and remanded the matter back to the Certifying Officer for fresh consideration in accordance with law. The Court directed that the Certifying Officer shall hear the parties afresh and pass a reasoned order within three months.
Headnote
A) Industrial Law - Standing Orders Certification - Section 4 of Industrial Employment (Standing Orders) Act, 1946 - The Certifying Officer must ensure that the draft standing orders are in conformity with the Act and the model standing orders, and must consider objections and provide an opportunity of hearing before certification. In this case, the Certifying Officer failed to consider the objections raised by the Management and did not provide a proper hearing, rendering the certification invalid. (Paras 3-10) B) Industrial Law - Appellate Authority - Section 6 of Industrial Employment (Standing Orders) Act, 1946 - The Appellate Authority must pass a reasoned order after considering the submissions of the parties. The order of the Additional Labour Commissioner was cryptic and did not address the contentions raised by the Management, thus it was set aside. (Paras 11-15) C) Industrial Law - Writ Jurisdiction - Article 226 of Constitution of India - The High Court can interfere with the orders of the Certifying Officer and Appellate Authority if they have acted in violation of statutory provisions or principles of natural justice. The learned Single Judge erred in dismissing the writ petition without considering the procedural irregularities. (Paras 16-20)
Issue of Consideration
Whether the certification of standing orders by the Certifying Officer and the appellate order of the Additional Labour Commissioner are valid and in accordance with the Industrial Employment (Standing Orders) Act, 1946
Final Decision
The High Court allowed the writ appeal, set aside the order of the learned Single Judge dated 17.09.2021 in Writ Petition No.106307 of 2018, and also set aside the orders of the Certifying Officer and the Appellate Authority. The matter was remanded back to the Certifying Officer for fresh consideration in accordance with law, with a direction to hear the parties afresh and pass a reasoned order within three months.
Law Points
- Certification of Standing Orders under Industrial Employment (Standing Orders) Act
- 1946 must comply with Section 4 requiring draft to be in conformity with the Act and model standing orders
- Certification Officer must consider objections and give opportunity of hearing
- Appellate Authority must pass reasoned order
- Writ Court can interfere if statutory procedure not followed
