Case Note & Summary
The petitioner, Food Corporation of India Workers Union, challenged the order dated 21.06.2006 passed by the Government of India, Ministry of Labour, refusing to refer an industrial dispute for adjudication under Section 10(1) of the Industrial Disputes Act, 1947. The dispute pertained to the alleged termination of 275 workmen who claimed to have been employed through contractors by the Food Corporation of India (FCI) for loading, unloading, and ancillary works at depots in Nagpur, Gondia, and Wardha. The Government, upon receipt of a failure of conciliation report dated 27.01.2004 from the Regional Labour Commissioner (Central), Nagpur, passed the impugned order stating that the Union could not produce any evidence regarding the employment of 275 persons either by FCI or its contractor, and therefore no industrial dispute subsisted. The Union contended that the Government exceeded its jurisdiction by adjudicating the dispute and that the order was arbitrary. The Court held that the Government, while exercising its power under Section 10(1), is entitled to form a prima facie opinion on the existence of an industrial dispute. The Government's satisfaction that no industrial dispute subsists was based on the failure of the Union to produce evidence of employer-employee relationship, which is a prerequisite for an industrial dispute. The Court found that the Government did not adjudicate the dispute but merely formed a prima facie view. The writ petition was dismissed as the Government's order was valid and within its jurisdiction.
Headnote
A) Industrial Law - Reference of Dispute - Section 10(1) Industrial Disputes Act, 1947 - Government's Prima Facie Satisfaction - The Government, while deciding whether to refer an industrial dispute for adjudication, is entitled to form a prima facie opinion on the existence of an industrial dispute. The order refusing reference on the ground that the Union failed to produce evidence of employer-employee relationship was held to be valid as the Government is not required to hold a full-fledged inquiry. (Paras 1-5) B) Industrial Law - Burden of Proof - Employer-Employee Relationship - The burden lies on the workmen to establish that they are employees of the principal employer. In the absence of any evidence, the Government cannot be compelled to make a reference. (Paras 2-5) C) Industrial Law - Writ Jurisdiction - Scope of Judicial Review - The High Court, in exercise of its writ jurisdiction, cannot substitute its own satisfaction for that of the Government. The Court can only examine whether the Government's satisfaction is based on relevant material and is not arbitrary or mala fide. (Paras 4-5)
Issue of Consideration
Whether the Government of India's order dated 21.06.2006 refusing to refer the industrial dispute for adjudication under Section 10(1) of the Industrial Disputes Act, 1947 on the ground that the Union could not produce evidence of employment of 275 persons is valid and sustainable in law.
Final Decision
The writ petition is dismissed. The order dated 21.06.2006 passed by the Government of India, Ministry of Labour, refusing to refer the industrial dispute is upheld.
Law Points
- Industrial Dispute
- Reference
- Prima Facie Satisfaction
- Employer-Employee Relationship
- Burden of Proof
- Section 10(1) Industrial Disputes Act
- 1947
