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 during pending adjudication proceedings. The dispute arose from the absorption of Bharat Bank employees into the Punjab National Bank and their service conditions. The Tribunal had ordered the bank to pay allowances despite acknowledging the absence of legal provision supporting such a claim, relying instead on general practice. The bank contended that the Tribunal's order was unjust and without jurisdiction, leading to the appeal. The Supreme Court analyzed the provisions of the Industrial Disputes Act, particularly Section 11(7), which grants discretion to the Tribunal regarding costs. The court concluded that the Tribunal's order was without jurisdiction as it improperly directed advance payment of costs, which should only be determined at the conclusion of proceedings. The court emphasized that the discretion must be exercised judiciously and not arbitrarily, and that the principles of natural justice do not support penalizing one party by requiring them to pay the costs of another in advance. The appeal was allowed, and the Tribunal's order was set aside, with costs to be borne by the 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 appellant to pay travelling and halting allowances in advance, as the discretion under Section 11(7) must be exercised according to rules of reason and justice, not arbitrarily. The court held that costs are determined at the conclusion of proceedings, not in advance (Paras 1-2).
Issue of Consideration
Whether the Industrial Tribunal had the jurisdiction to order the payment of travelling and halting allowances to representatives of unions in advance during pending proceedings.
Final Decision
The Supreme Court allowed the appeal, set aside the Tribunal's order regarding advance payment of travelling and halting allowances, and directed that costs be borne by the respondents.
Law Points
- jurisdiction of tribunal
- discretion in costs
- industrial disputes
- advance payment of costs
- principles of natural justice
