Case Note & Summary
The case involved an appeal by the Punjab National Bank Ltd. against an order of the Industrial Tribunal directing the bank to pay travelling and halting allowances to representatives of various Unions attending adjudication proceedings. The dispute arose from the absorption of Bharat Bank employees into the Punjab National Bank and their service conditions. The Tribunal, while acknowledging the absence of legal provision for such allowances, relied on general practice in Industrial Courts to justify its order. The bank contended that the order was unjust and without jurisdiction, leading to an appeal after the Punjab High Court dismissed their petition. The Supreme Court analyzed the provisions of Section 11(7) of the Industrial Disputes Act, 1947, which grants discretion to the Tribunal regarding costs. The court concluded that the Tribunal's order was not supported by law or consistent practice, emphasizing that costs should not be imposed in advance irrespective of the final outcome of the proceedings. The court ultimately allowed the appeal, set aside the Tribunal's order, and directed that costs be borne by the contesting respondents.
Headnote
A) Industrial Disputes - Jurisdiction of Tribunal - Advance Payment of Costs - Industrial Disputes Act, 1947, Section 11(7) - The Tribunal lacked jurisdiction to direct the employer to pay travelling and halting allowances in advance to the representatives of the workmen, as the discretion under Section 11(7) must be exercised according to the rules of reason and justice, not arbitrarily. The court held that such an order penalizes one party without regard to the outcome of the proceedings (Paras 1-2).
Issue of Consideration
Whether the Industrial Tribunal had the jurisdiction to order the payment of travelling and halting allowances in advance by the employer to the representatives of the workmen during pending proceedings.
Final Decision
The Supreme Court allowed the appeal, set aside the Tribunal's order regarding the payment of travelling and halting allowances, and directed that costs be borne by the contesting respondents.
Law Points
- jurisdiction of tribunal
- discretion in costs
- industrial disputes
- advance payment of costs
- principles of natural justice
