Madras High Court Quashes Industrial Tribunal's Interim Relief Order in Wage Revision Dispute — Management Not Obliged to Pay Interim Relief When Majority Workmen Have Already Settled. The High Court held that the Industrial Tribunal lacked jurisdiction to grant interim relief under Section 10(3) of the Industrial Disputes Act, 1947, as the dispute was not pending before a Conciliation Officer or Board, and the Management's offer to extend settlement benefits to non-signatory workmen was a valid defence.

High Court: Madras High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Management of Caterpillar India Private Limited, filed a writ petition under Article 226 of the Constitution of India seeking a writ of certiorari to quash the order dated 25.03.2025 passed by the Industrial Tribunal, Chennai in I.A.No.2/2024 in O.P.No.18/2023. The Management is a multinational company engaged in manufacturing off-road heavy vehicles. The Management and the Union (Caterpillar India Private Thozhilalar Sangam) had entered into settlements from 2003 onwards, with the last settlement ending on 31.12.2022. On 23.12.2022, the Union submitted its Charter of Demands, and the Management submitted its demands in October 2022. Discussions were held, but meanwhile, 246 out of 326 workmen individually signed a settlement with the Management. The Union raised a dispute for wage revision, which was referred by the Government to the Industrial Tribunal, Chennai, and numbered as O.P.No.18/2023. The Management filed a Memo stating its readiness to extend the benefits of the settlement entered into with the majority workmen to the non-signatory workmen who were members of the Union. The Union rejected this offer by reply dated 07.02.2024 and instead filed I.A.No.2/2024 seeking interim relief of Rs.20,000/- per month. The Tribunal allowed the IA, granting the interim relief. Aggrieved, the Management filed the present writ petition. The High Court examined the jurisdiction of the Industrial Tribunal to grant interim relief. It noted that Section 10(3) of the Industrial Disputes Act, 1947 empowers the appropriate government to prohibit the continuance of a strike or lock-out pending adjudication, but does not confer power on the Tribunal to grant interim relief. The Court held that the Tribunal had no jurisdiction to grant interim relief as the dispute was not pending before a Conciliation Officer or Board. The Court also observed that the Management had already entered into a settlement with the majority of workmen and had offered to extend the same benefits to the non-signatory workmen, which the Union had rejected. The Court concluded that the Tribunal's order was without jurisdiction and amounted to an error of law apparent on the face of the record. Accordingly, the High Court allowed the writ petition, quashed the impugned order of the Industrial Tribunal, and dismissed the interim application filed by the Union.

Headnote

A) Industrial Disputes Act, 1947 - Section 10(3) - Interim Relief - Jurisdiction of Industrial Tribunal - The Tribunal granted interim relief of Rs.20,000/- per month to the Union pending adjudication of a wage revision dispute. The High Court held that the Tribunal had no jurisdiction to grant such interim relief as the dispute was not pending before a Conciliation Officer or Board under Section 10(3) of the Act. The power to grant interim relief under Section 10(3) is limited to the period when the dispute is pending before a Conciliation Officer or Board, and not during adjudication by the Tribunal. (Paras 5-10)

B) Industrial Disputes Act, 1947 - Section 18(1) - Settlement with Majority Workmen - Binding Effect - The Management had entered into a settlement with 246 out of 326 workmen under Section 18(1) of the Act. The High Court held that such a settlement binds only the signatory workmen and not the Union or non-signatory workmen. However, the Management's offer to extend the same benefits to non-signatory workmen was a valid offer, and the Union's rejection of the same did not entitle it to interim relief. (Paras 3, 11)

C) Writ Jurisdiction - Certiorari - Error of Law - The High Court, exercising its writ jurisdiction under Article 226 of the Constitution of India, quashed the order of the Industrial Tribunal granting interim relief, as the Tribunal had acted without jurisdiction and committed an error of law apparent on the face of the record. (Paras 12-13)

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Issue of Consideration

Whether the Industrial Tribunal has the jurisdiction to grant interim relief of Rs.20,000/- per month to the Union pending adjudication of a wage revision dispute, when the Management had already entered into a settlement with the majority of workmen and offered to extend the same benefits to the non-signatory workmen.

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Final Decision

The High Court allowed the writ petition, quashed the order dated 25.03.2025 passed by the Industrial Tribunal, Chennai in I.A.No.2/2024 in O.P.No.18/2023, and dismissed the interim application filed by the Union.

Law Points

  • Interim relief under Industrial Disputes Act
  • 1947
  • Section 10(3) cannot be granted when the dispute is not pending before a Conciliation Officer or Board
  • Tribunal's power to grant interim relief is limited to cases where the dispute is pending adjudication and there is a prima facie case
  • Settlement with majority workmen under Section 18(1) of the Industrial Disputes Act
  • 1947 binds only the signatory workmen
  • not the union or non-signatory workmen
  • Writ of certiorari lies against orders of Industrial Tribunal if there is an error of law apparent on the face of the record.
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Case Details

2026:MHC:358

WP.No.13279/2025 & WMP.No.14864/2025

2026-01-21

N.MALA

2026:MHC:358

Mr.A.L.Somayaji, Senior counsel for Mr.G.Anandgopalan for Agam Legal Advocates (for Petitioner), Mr.V.Prakash, Senior counsel for Mr.B.Gokul (for Respondent)

Management of Caterpillar India Private Limited

General Secretary, Caterpillar India Private Thozhilalar Sangam

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India seeking a writ of certiorari to quash an order of the Industrial Tribunal granting interim relief in a wage revision dispute.

Remedy Sought

The Management sought quashing of the order dated 25.03.2025 passed by the Industrial Tribunal, Chennai in I.A.No.2/2024 in O.P.No.18/2023, which granted interim relief of Rs.20,000/- per month to the Union.

Filing Reason

The Management was aggrieved by the Industrial Tribunal's order granting interim relief to the Union, contending that the Tribunal had no jurisdiction to grant such relief and that the Management had already settled with the majority of workmen.

Previous Decisions

The Industrial Tribunal, Chennai, by order dated 25.03.2025, allowed I.A.No.2/2024 in O.P.No.18/2023, granting interim relief of Rs.20,000/- per month to the Union.

Issues

Whether the Industrial Tribunal has jurisdiction to grant interim relief under Section 10(3) of the Industrial Disputes Act, 1947, when the dispute is pending adjudication before it? Whether the Management's offer to extend the benefits of the settlement with majority workmen to non-signatory workmen is a valid defence against the claim for interim relief?

Submissions/Arguments

The Management argued that the Industrial Tribunal had no jurisdiction to grant interim relief as Section 10(3) of the Industrial Disputes Act, 1947 only empowers the government to prohibit strikes or lock-outs pending adjudication, and does not confer power on the Tribunal to grant interim relief. Further, the Management had already entered into a settlement with 246 out of 326 workmen and offered to extend the same benefits to the non-signatory workmen, which the Union rejected. The Union argued that the Tribunal had the power to grant interim relief to maintain industrial peace and that the Management's offer was not acceptable as it did not meet the Union's demands.

Ratio Decidendi

The Industrial Tribunal has no jurisdiction to grant interim relief under Section 10(3) of the Industrial Disputes Act, 1947, as the power under that section is vested only in the appropriate government to prohibit strikes or lock-outs pending adjudication. The Tribunal's order granting interim relief was without jurisdiction and amounted to an error of law apparent on the face of the record, warranting interference under Article 226 of the Constitution of India.

Judgment Excerpts

The Tribunal, vide its order dated 25.03.2025, allowed the IA, granting a sum of Rs.20,000/- as interim relief. The Management filed a Memo stating that it was ready to extend the benefit of the settlement entered into by it with the majority of individual workman, to the non-signatory workmen, who were members of the Union. The Union rejected the Management's offer by reply dated 07.02.2024.

Procedural History

The Union raised a dispute for wage revision, which was referred by the Government to the Industrial Tribunal, Chennai, and numbered as O.P.No.18/2023. The Management filed a Memo offering to extend settlement benefits to non-signatory workmen. The Union rejected the offer and filed I.A.No.2/2024 seeking interim relief of Rs.20,000/- per month. The Tribunal allowed the IA on 25.03.2025. The Management filed the present writ petition on 29.01.2026 challenging the order.

Acts & Sections

  • Industrial Disputes Act, 1947: 10(3), 18(1)
  • Constitution of India: Article 226
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