Bombay High Court Allows Writ Petition, Holds Labour Court is a 'Court' Under Section 195(1)(b) CrPC for Making Complaint of False Evidence. Labour Court's Rejection of Section 340 Application Set Aside as Labour Court Has Jurisdiction to Entertain Complaint for False Statement in Written Statement.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The writ petition challenged an order of the Labour Court rejecting an application under Section 340 of the Code of Criminal Procedure, 1973 (CrPC) for making a complaint under Section 195(1)(b) CrPC against the respondents for allegedly making false statements in a written statement filed in a reference under Section 10 of the Industrial Disputes Act, 1947 (IDA). The petitioner, Baskar Mendon, along with six others, had filed Reference (IDA) No.382 of 2006 before the Labour Court claiming to be workmen of Respondent No.3, alleging that the contracts with contractors were sham. During the proceedings, the petitioner alleged that Respondent Nos. 1 and 3 made false statements in their written statement, rendering them liable for offences under Sections 191, 193, 199, and 200 of the Indian Penal Code (IPC). The petitioner sought a complaint from the Labour Court under Section 195(1)(b) CrPC, which is a prerequisite for prosecution of such offences. The Labour Court rejected the application as not tenable, presumably on the ground that it was not a court within the meaning of Section 195(1)(b) CrPC. The High Court framed the issue whether a proceeding before a labour court in a reference under Section 10 IDA is a proceeding in any court under Section 195(1)(b) CrPC. The court analyzed the definition of 'court' under Section 195(3) CrPC, which includes a civil, revenue, or criminal court, and a tribunal constituted by or under a Central, Provincial, or State Act if declared to be a court for purposes of Section 195. The court noted that the Labour Court under the IDA is not expressly declared a court, but it exercises judicial functions, adjudicates disputes, and its proceedings are judicial proceedings. The court relied on precedents including Brajnandan Sinha v. Jyoti Narain (1955) 2 SCR 955, which held that a tribunal with judicial functions is a court. The court also considered Section 11(3) of the IDA, which gives the Labour Court powers of a civil court for certain purposes, and Section 11(4), which deems proceedings before it as judicial proceedings. The court concluded that the Labour Court is a court subordinate to the High Court under Section 195(3) CrPC, and the proceeding before it is a judicial proceeding. Therefore, the Labour Court has jurisdiction to entertain an application under Section 340 CrPC and make a complaint under Section 195(1)(b) CrPC. The impugned order was set aside, and the matter was remanded to the Labour Court to decide the application on merits.

Headnote

A) Criminal Procedure Code - Section 195(1)(b) - Complaint for Offences of False Evidence - Labour Court is a 'Court' - The proceeding before a Labour Court in a reference under Section 10 of the Industrial Disputes Act, 1947 is a judicial proceeding and the Labour Court is a court within the meaning of Section 195(1)(b) CrPC. The Labour Court has jurisdiction to entertain an application under Section 340 CrPC and make a complaint for offences under Sections 191, 193, 199, 200 IPC. (Paras 1-17)

B) Industrial Disputes Act, 1947 - Section 10 - Reference to Labour Court - Nature of Proceeding - The proceeding before a Labour Court in a reference under Section 10 is a judicial proceeding akin to a civil court, and the Labour Court is a court subordinate to the High Court under Section 195(3) CrPC. (Paras 8-16)

C) Indian Penal Code, 1860 - Sections 191, 193, 199, 200 - False Evidence - Making False Statement in Written Statement - A false statement made in a written statement filed before a Labour Court in a reference under Section 10 of the Industrial Disputes Act, 1947 can constitute an offence under Sections 191/193 IPC, and the Labour Court can make a complaint under Section 195(1)(b) CrPC. (Paras 2-3, 17)

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Issue of Consideration

Whether a proceeding before a labour court or an industrial tribunal in a reference made under Section 10 of the Industrial Disputes Act, 1947 can be termed as a proceeding in any court within the meaning of Section 195(1)(b) of the Code of Criminal Procedure, 1973.

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Final Decision

The impugned order of the Labour Court dated 8 August 2018 is set aside. The matter is remanded to the Labour Court to decide the application under Section 340 CrPC on merits in accordance with law.

Law Points

  • Labour Court is a court under Section 195(1)(b) CrPC
  • Proceeding before Labour Court is a judicial proceeding
  • Section 340 CrPC application maintainable before Labour Court
  • False statement in written statement before Labour Court can be prosecuted under Sections 191/193 IPC only on complaint of that court
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Case Details

2018 LawText (BOM) (08) 123

WRIT PETITION NO.538 OF 2018

2018-08-08

S.C. GUPTE, J.

Ms. Jane Cox, i/b. Karishma Rao, for the Petitioner; Mr. M.K. Kocharekar, i/b. Dushyant Pagare, for Respondent No.1; Mr. R.S. Pai, a/w. Mr. Anand R. Pai and Mr. Aditya S. Bhat, i/b. M/s. Sanjay Udeshi & Co., for Respondent Nos. 2 and 3.

Baskar Mendon

Sadashiv Narayan Shetty & Ors.

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Nature of Litigation

Writ petition challenging order of Labour Court rejecting application under Section 340 CrPC for making complaint under Section 195(1)(b) CrPC for offences of false evidence.

Remedy Sought

Petitioner sought setting aside of Labour Court order and direction to Labour Court to entertain application under Section 340 CrPC and make complaint under Section 195(1)(b) CrPC.

Filing Reason

Labour Court rejected application under Section 340 CrPC as not tenable on the ground that it was not a court within meaning of Section 195(1)(b) CrPC.

Previous Decisions

Labour Court rejected the miscellaneous application for initiating enquiry under Section 340 CrPC and making complaint under Section 195(1)(b) CrPC.

Issues

Whether a proceeding before a labour court in a reference under Section 10 of the Industrial Disputes Act, 1947 is a proceeding in any court within the meaning of Section 195(1)(b) of the Code of Criminal Procedure, 1973. Whether the Labour Court has jurisdiction to entertain an application under Section 340 CrPC and make a complaint under Section 195(1)(b) CrPC.

Submissions/Arguments

Petitioner argued that the Labour Court is a court under Section 195(3) CrPC and the proceeding before it is a judicial proceeding, hence the Labour Court can make a complaint under Section 195(1)(b) CrPC. Respondents argued that the Labour Court is not a court within the meaning of Section 195(1)(b) CrPC and the application was rightly rejected.

Ratio Decidendi

A Labour Court exercising jurisdiction under Section 10 of the Industrial Disputes Act, 1947 is a court within the meaning of Section 195(1)(b) read with Section 195(3) of the Code of Criminal Procedure, 1973, and the proceeding before it is a judicial proceeding. Therefore, the Labour Court has the power to entertain an application under Section 340 CrPC and make a complaint for offences under Sections 191, 193, 199, 200 IPC.

Judgment Excerpts

This writ petition raises an important question of law concerning the nature of a proceeding before a labour court or an industrial tribunal in a reference made to it by the appropriate Government under Section 10 of the Industrial Disputes Act, 1947 – whether such proceeding can be termed as a proceeding in any court within the meaning of Section 195(1)(b) of the Code of Criminal Procedure. The Labour Court, as noted above, rejected the application as not tenable. That order is challenged in the present petition.

Procedural History

Reference (IDA) No.382 of 2006 was filed before the Labour Court by the petitioner and six others. During the proceedings, the petitioner filed an application under Section 340 CrPC alleging false statements in the written statement. The Labour Court rejected the application as not tenable. The petitioner challenged that order by way of Writ Petition No.538 of 2018 before the Bombay High Court.

Acts & Sections

  • Code of Criminal Procedure, 1973: 195(1)(b), 195(3), 340
  • Indian Penal Code, 1860: 191, 193, 199, 200
  • Industrial Disputes Act, 1947: 10, 11(3), 11(4)
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