Subject Matter of Jurisdiction

of an Industrial Tribunal
Navajyoti Samanta*
The purpose of creating an industrial tribunal was to introduce compulsory adjudication where voluntary
negotiation fails and the appropriate government believes that the matter is grave enough to be referred
to a tribunal. in order to work properly it was felt by the legislature to limit the jurisdiction of such
tribunal or courts. As a result two schedules were created. While the intention of legislation has been to
create a level playing field industries have tried to evade jurisdiction of the tribunal by taking recourse to
quibbling minute points of law. It became necessary to plug all holes in this welfare legislation. As a
result Section 10 is one of the most amended sections with the largest number of state amendments. This
has meant that over the years the jurisdiction of tribunals have had to be interpreted a number of times.
*Third year student, National University of Juridical Sciences, Kolkata, email: navajyoti86@rediffmail.com

I
Introduction
The preamble of the Industrial Disputes (ID) Act, 1947 states that the purpose of the ID Act is
to make provisions for the investigation and settlement of industrial disputes and for certain
other purposes.1 However there was no provision for any adjudicatory mechanism in the Trade
Disputes Act, 1929, the precursor of the present Industrial Disputes Act, 1947. Tribunals were for
the first time created in 1947 as a dispute redrassal mechanism by adjudication. The Industrial
Disputes Act (ID Act in short), 1947 defines a Tribunal under section 2(r) which lays down that
Tribunal means an Industrial Tribunal constituted under section 7A and includes an Industrial
Tribunal constituted before the 10th day of March, 1957, under this Act, the purpose of creating
an industrial tribunal was to introduce compulsory adjudication where voluntary negotiation fails
and the appropriate government believes that the matter is grave enough to be referred to a
tribunal.
However in order to work properly it was felt by the legislature to limit the jurisdiction of
such tribunal or courts. As a result two schedules were created, the second schedule 2 referred to
matters within jurisdiction of labour courts and the third schedule which referred to matters
within the jurisdiction of Industrial tribunal.
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Section 10(1)(d) of the ID act further discusses the jurisdiction of Industrial tribunals and
provides that matters from third schedule of the ID act can be refferred and in certain cases even
matters from second schedule can be referred to the tribunal. As the litigants in industrial cases
are from unequal bargaining powers, it was thought that the ID Act would level the playing field.
However industries took recourse to each minute legalities and tried to evade jurisdiction of the
tribunal. Hence it became of paramount interest to the legislature and the judiciary to plug all
holes in this welfare legislation. In fact Section 10 is one of the most amended sections 3 with the
largest number of state amendments.4 And thus over the years the jurisdiction of tribunals have to
be interpreted quite a number of times.

II
Structure of Industrial Tribunal
The appropriate government has been empowered by s 7A 5 of the ID Act to constitute one or
more industrial tribunals. The central government can appoint tribunals in any state fro
adjudication of industrial disputes in relation to which it is appropriate government6. A state
government may constitute one or more industrial tribunal in its territory for adjudicating the
matter in respect to which it is the appropriate government. The appointment of the industrial
tribunal has to be by notification in official gazette.
The moment a notification is issued the establishment of industrial tribunal is complete. The
appointment of presiding officer though essential is a separate matter. However the appropriate
government can constitute a tribunal and make an appointment of the presiding officer
simultaneously7.
Per the statute a person shall not be qualified for appointment as the presiding officer of a
Tribunal unless he is, or has been, a Judge of a High Court; or he has, for a period of not less
than three-years, been a District Judge or an Additional District court, this issue was agitated in
Paulose v State of Kerala8 where the government had entrusted the work of selection of
presiding officers to advocate general, this mode of selection was challenged. It was contended
that the appointment has to be done by advertising in a newspaper, however the court held that it
is not necessary that the state must in every case of public appointment issue an advertisement or
notice inviting applications for office.
Under the provisions of s 7A the appropriate government has ample power of constituting an
industrial tribunal for limited time intending thereby that its life would automatically come to an
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end on the expiry of that time. Again the appropriate government has wide discretion to appoint
tribunals for any limited time or for a particular case or for a particular area. When a tribunal
constituted for a limited period automatically comes to an end after the expiry of that period the
appropriate government can constitute another tribunal and refer to it the disputes which were
pending before the first tribunal9.
Once the tribunal has been constituted and its appointment has been duly notified along with
the name of presiding officer who is appointed to it, disputes may be referred to such tribunal by
appropriate government under s 10 of the ID act10.
A tribunal once appointed cannot be abolished by an executive act merely because the
government chooses to put an end to it when a reference is pending before it, for the state cannot
do indirectly what is not expressly permissible in the ID act11.
III

Jurisdiction of Industrial Tribunal

The discretion of the appropriate government under S 10(1)(d) 12 of ID act is very wide. 13 To refer
an industrial dispute or any matter appearing to be connected with or relevant to the dispute,
whether it relates to any matter specified in the second schedule 14 or third schedule15 to a tribunal
for adjudication. The matter appearing to be connected with or relevant to the dispute in respect
of which a reference is made, need not be related to any mater specified in the second or third
schedule.
The first proviso to S 10(1) however lays down that where the dispute relate to a matter
specified in the third schedule and is not likely to affect more than 100 workmen, the appropriate
government has the discretion to make the reference to a labor court. Thus whereas questions
arising out of second schedule can be adjudicated both by tribunal as well as labour court
question arising from matters arising out of third schedule can be referred for adjudication to a
tribunal alone, unless the case falls under the first proviso to s 10(1)(d) of the ID act.
The policy of the legislature while S 7 and 7A was to confer jurisdiction to adjudicate disputes
arising from the matters in the second schedule on the labour court as well as the tribunal, while
it wanted to give jurisdiction to the tribunal alone on the disputes arising from the matter
enumerated in the third schedule. In other words, except for the matters enumerated in the third
schedule, the legislature wanted to confer jurisdiction upon both labour court and tribunal. In
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case of an industrial dispute relating to matters other than those specified in second or third
schedule, the legislature included the residuary item 6, in the second schedule under which both
the labour court as well as the tribunal will have jurisdiction to adjudicate 16. Thus, there is a
marked distinction between the jurisdiction of the labour court and that of the industrial tribunal.
While the labour court functioning for all purposes enumerated under the act, and certain duties
and responsibilities as prescribed therein the matters to be dealt which are within the jurisdiction
of the tribunal as prescribed under S 7A are entirely different.
From the language of the various clauses of subsection 1 of s 10 of ID Act, it is clear that
before the authorities mentioned in clauses (b), (c) and (d) of s 10(1) of the ID act can have
jurisdiction upon any matter appearing to be connected with or relevant to the dispute, such
matter must be specifically referred to such authorities. These words do non have the same
meaning as the words incidental thereto occurring in s 10(4). Unlike the matters incidental to the
dispute, the matters appearing to be connected with or relevant to the dispute must be specifically
referred to the authorities. For the purposes of reference under clause (c) and (d) of s 10(1) of the
ID act, it is sufficient if it appears to the government that the matter connected with or relevant to
the dispute to any matter specified in second or third schedule.
IV

Conclusion
Industrial tribunal forms an integral part of Industrial dispute redressal mechanism by
adjudicatory process. As with all tribunals the Industrial Tribunal as formed under S 7A of the
Industrial Disputes Act, 1947 have some obvious flaws like slow pace of adjudication etc.
however from the quasi judicial perspective the Industrial tribunal is one of the most successful
tribunal after the Income Tax appellate tribunals.
Although the legislature by its incessant amendments have tried to define exactly the
jurisdiction but the courts keeping in mind the social nature of the act have always interpreted the
jurisdiction clause in such a manner so as to include most of the industrial disputes within the
ambit of the act. Thus today a matter belonging not only to third schedule can be referred but
also a matter from the second schedule can be sent for adjudication in the tribunal.

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Thus not only disputes relating to wages, compensatory and other allowances, hours of work,
bonus, profit sharing, provident fund and gratuity, working otherwise than in accordance with
standing orders, classification by grades, rules of discipline, Retrenchment of workmen and
closure of establishment; etc are within the ambit of tribunal but also matters relating to the
propriety or legality of an order passed by an employer under the standing orders, the application
and interpretation of standing order, discharge or dismissal of workmen including reinstatement
of, or grant of relief to, workmen wrongfully, withdrawal of any customary concession or
privilege, illegality or otherwise of a strike or lock-out can be determined upon or adjudicated
however the most important import to the jurisdiction from second schedule is the residuary
clause thereby giving industrial tribunal virtually the authority to adjudge any industrial dispute.

Select Bibliography
Primary sources
Statute
Constitution of India
Industrial Disputes Act, 1947
Reports and articles
Law Commission Reports
Report of the National Commission to Review the Working of the Constitution

Secondary Sources
Books
Basu, D.D., Commentary on the Constitution of India, Kamal Law House, Kolkata.
Seervai, H.M., Constitutional Law of India, 2006, Universal.
Singh,GP, Principles of Statutory Interpretation, Wadhwa, Nagpur.
Malhotra, OP, Industrial Disputes Act, LexiNexis, 2005, New Delhi .
Web sources
http://indiacode.nic.in/coiweb/amend/amend7.htm visited on 12/6/07.
www.sarkaritel.com/states/governors_state.htm visited on 19/6/07.
www.hinduonnet.com/fline/fl1813/18131070.htm visited on 10/6/07.
Other Electronic Sources
Encyclopdia Britannica 2006 Ultimate Reference Suite DVD.
List of Cases
Life Insurance Corporation of India v All India Insurance Employees Association 1989 Lab IC 1493 Bom

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Minerva Mills Ltd v Workers of the Minerva Mills (1954) 1 LLJ 119 (SC)
Gowri Silk Mills Ltd v Its workers (1956) 1 LLJ 49 (LAT)
Sindhu Resettlement Ltd v Industrial Tribunal (1965) 2 LLJ 268 (Guj) (DB)

Appendix
10.

Reference of dispute to Boards, Courts or Tribunals. 1

(1)

[Where the appropriate Government is of opinion that any industrial dispute exists or is
apprehended, it may at any time], by order in writing(a)

Refer the dispute to a Board for promoting a settlement thereof; or

(b)

Refer any matter appearing to be connected with or relevant to the dispute to a Court for
inquiry; or

[(c)

(d)

Refer the dispute or any matter appearing to be connected with, or relevant to, the
dispute, if it relates to any matter specified in the Second Schedule, to a Labour Court for
adjudication; or
Refer the dispute or any matter appearing to be connected with, or relevant to, the
dispute, whether it relates to any matter specified in the Second Schedule or the Third
Schedule, to a Tribunal for adjudication:
Provided that where the dispute relates to any matter specified in the Third Schedule and
is not likely to affect more than one hundred workmen, the appropriate Government may,
if it so thinks fit, make the reference to a Labour Court under clause (c):]
3

[Provided further that] where the dispute relates to a public utility service and a notice
under section 22 has been given, the appropriate Government shall, unless it considers
that the notice has been frivolously or vexatiously given or that it would be inexpedient
so to do, make a reference under this sub-section notwithstanding that any other
proceedings under this Act in respect of the dispute may have commenced:
4

[Provided also that where the dispute in the relation to which the Central Government is
the appropriate Government, it shall be competent for the Government to refer the dispute
to a Labour Court or an Industrial Tribunal, as the case may be, constituted by the State
Government.]
5

[(l A)

Where the Central Government is of opinion that any industrial dispute exists or is
apprehended and the dispute involves any question of national importance or is of such a
nature that industrial establishments situated in more than one State are likely to be
interested in, or affected by, such dispute and that the dispute should be adjudicated by a
National Tribunal, then, the Central Government may, whether or not it is the appropriate
Government in relation to that dispute, at any time, by order in writing, refer the dispute
or any matter appearing to be connected with, or relevant to, the dispute, whether it
relates to any matter specified in the Second Schedule or the Third Schedule, to a
National Tribunal for adjudication.]

(2)

Where the parties to an industrial dispute apply in the prescribed manner, whether jointly
or separately, for a reference of the dispute to a Board, Court, 6[Labour Court, Tribunal or
National Tribunal], the appropriate Government, if satisfied that the persons applying
represent the majority of each party, shall make the reference accordingly.

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7

[(2A)

An order referring an industrial dispute to a Labour Court, Tribunal or National Tribunal

under this section shall specify the period within which such Labour Court, Tribunal or
National Tribunal shall submit its award on such dispute to the appropriate Government:
Provided that where such industrial dispute is connected with an individual workman, no
such period shall exceed three months:
Provided further that where the parties to an industrial dispute apply in the prescribed
manner, whether jointly or separately, to the Labour Court, Tribunal or National Tribunal
for extension of such period or for any other reason, and the presiding officer of such
Labour Court, Tribunal or National Tribunal considers it necessary or expedient to extend
such period, he may for reasons to be recorded in writing, extend such period by such
further period as he may think fit:
Provided also that in computing any period specified in this sub-section, the period, if
any, for which the proceedings before the Labour Court, Tribunal or National Tribunal
had been stayed by any injunction or order of a Civil Court shall be excluded:
Provided also that no proceedings before a Labour Court, Tribunal or National Tribunal
shall lapse merely on the ground that any period specified under this sub-section had
expired without such proceedings being completed.]

(3)

Where an industrial dispute has been referred to a Board, 6[Labour Court, Tribunal or
National Tribunal] under this section, the appropriate Government may by order prohibit
the continuance of any strike or lock-out in connection with such dispute which may be
in existence on the date of the reference.

[(4)

Wherein an order referring an industrial dispute to 9[a Labour Court, Tribunal or National
Tribunal] under this section or in a subsequent order, the appropriate Government has
specified the points of dispute for adjudication, 10[the Labour Court or the tribunal or the
National Tribunal, as the case may be,] shall confine its adjudication to those points and
matters incidental thereto.

(5)

Where a dispute concerning any establishment or establishments has been, or is to be,

referred to a 11[Labour Court, Tribunal or National Tribunal] under this section and the
appropriate Government is of opinion, whether on an application made to it in this behalf
or otherwise, that the dispute is of such a nature that any other establishment, group or
class of establishments of a similar nature is likely to be interested in, or affected by, such
dispute, the appropriate Government may, at the time of making the reference or at any
time thereafter but before the submission of the award, include in that reference such
establishment, group or class of establishments, whether or not at the time of such
inclusion any dispute exists or is apprehended in that establishment, group or class of
establishments.]

[(6)

Where any reference has been made under sub-section (1A) to a National Tribunal then
notwithstanding anything contained in this Act, no Labour Court or Tribunal shall have
jurisdiction to adjudicate upon any matter which is under adjudication before the National
Tribunal, and accordingly, -

12

(a)

If the matter under adjudication before the National Tribunal is pending in a

proceeding before a Labour Court or Tribunal, the proceeding before the Labour
Court or the Tribunal, as the case may be, in so far as it relates to such matter,
shall be deemed to have been quashed on such reference to the National
Tribunal; and

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(b)

It shall not be lawful for the appropriate Government to refer the matter under
adjudication before the National Tribunal to any Labour Court or Tribunal for
adjudication during the pendency of the proceeding in relation to such matter
before the National Tribunal.

13

[Explanation.-In this sub-section, Labour Court or Tribunal includes any Court or

Tribunal or other authority constituted under any law relating to investigation and
settlement of industrial disputes in force in any State.]
(7)

Where any industrial dispute, in relation to which the Central Government is not the appropriate
Government, is referred to a National Tribunal, then, notwithstanding anything contained in this
Act, any reference in section 15, section 17, section 19, section 33A, section 33B and section 36A
to the appropriate Government in relation to such dispute shall be construed as a reference to the
Central Government but, save as aforesaid and as otherwise expressly provided in this Act any
reference in any other provision of this Act to the appropriate Government in relation to that
dispute shall mean a reference to the State Government.]

[(8)

No proceedings pending before a Labour Court, Tribunal or National Tribunal in relation to an

industrial dispute shall lapse merely by reason of the death of any of the parties to the dispute
being a workman, and such Labour Court, Tribunal or National Tribunal shall complete such
proceedings and submit its award to the appropriate Government.]

1.

Subs. by Act 18 of 1952, sec. 3, for if any industrial dispute exists or is apprehended, the
appropriate Government may.
Subs. by Act 36 of 1956, sec. 7, for clause (c) (w.e.f. 10-3-1957).
Subs. by Act 36 of 1956, sec. 7, for Provided that (w.e.f. 10-3-1957).
Ins. by Act 46 of 1982, sec. 8 (w.e.f. 21-8-1984).
Ins. by Act 36 of 1956, sec. 7 (w.e.f. 10-3-1957).
Subs. by Act 36 of 1956, sec. 7, for or Tribunal (w.e.f. 10-3-1957).
Ins. by Act 46 of 1982, sec. 8, (w.e.f. 21-8-1984).
Ins. by Act 18 of 1952, sec. 3.
Subs. by Act 36 of 1956, sec. 7, for a Tribunal (w.e.f. 10-3-1957).
Subs. by Act 36 of 1956, sec. 7, for the Tribunal (w.e.f. 10-3-1957).
Subs. by Act 36 of 1956, sec. 7, for Tribunal (w.e.f. 10-3-1957).
Ins. by Act 36 of 1956, sec. 7 (w.e.f. 10-3-1957).
Ins. by Act 36 of 1964, sec. 5 w.e.f. 19-12-1964).
Ins. by Act 46 of 1982, sec. 8 (w.e.f. 21-8-1984).

14

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

THE THIRD SCHEDULE

(See Section 7A)
Matters within the jurisdiction of Industrial Tribunals
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Wages, including the period and mode of payment;

Compensatory and other allowances;
Hours of work and rest intervals;
Leave with wages and holidays;
Bonus, profit sharing, provident fund and gratuity;
Shift working otherwise than in accordance with standing orders;
Classification by grades;
Rules of discipline;
Rationalisation;
Retrenchment of workmen and closure of establishment; and
Any other matter that may be prescribed.

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Preamble, The Industrial Disputes Act, 1947 (Act no. 14 of 1947)

This proviso vests the appropriate government with an overriding power of making a reference in case where the dispute
relates to a public utility service and a notice of strike and look out under s 22 of the ID act has been given ( Joshlook
Hospital an research centre v BV Chavan 1983 Lab IC 1100), in such a case, making of reference is imperative.
3
Till date 15 amendments have been passed on S 10.
4
Six states viz. Madhya Pradesh, Maharashtra, Mysore (now Karnataka), Tamil Nadu and West Bengal, have made their
own amendments on S 10.
5
7A. Tribunals.
(1)
The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial
Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second
Schedule or the Third Schedule 1[and for performing such other functions as may be assigned to them under this
Act].
(2)
A Tribunal shall consist of one person only to be appointed by the appropriate Government.
(3)
A person shall not be qualified for appointment as the presiding officer of a Tribunal unless(a)
He is, or has been, a Judge of a High Court; or
2
[(aa)
He has, for a period of not less than three-years, been a District Judge or an Additional District Judge; 3 [ *
**]
4
[* * * * * *]
(4)
The appropriate Government may, if it so thinks fit, appoint two persons as assessors to advise the Tribunal in the
proceeding before it.
6
2.
Definitions. -In this Act, unless there is anything repugnant in the subject or context, 2

(a)

Appropriate Government means-

(i)
In relation to any industrial dispute concerning 1[* * *] any industry carried on by or under the authority
of the Central Government, 2[* * *] or by a railway company 3[or concerning any such controlled industry as may
be specified in this behalf by the Central Government] 4[* * *] or in relation to an industrial dispute concerning 5 [
6 7 8
[ [ [a Dock Labour Board established under section 5A of the Dock Workers (Regulation of employment) Act;
1948 (9 of 1948), or 9[the Industrial Finance Corporation of India Limited formed and registered under the
Companies Act, 1956 (1 of 1956)] or the Employees State Insurance Corporation established under section 3 of
the Employees State Insurance Act, 1948 (34of 1948), or the Board of Trustees constituted under section 3A of the
Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or the Central Board of Trustees
and the State Boards of Trustees constituted under section 5A and section 5B, respectively, of the Employees
Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952), 10[* * *], or the Life Insurance Corporation
of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or 9[the Oil and
Natural Gas Corporation Limited registered under tile Companies Act, 1956 (1 of 1956)], or the Deposit insurance
and Credit Guarantee Corporation established under section 3 of the Deposit Insurance and Credit Guarantee
Corporation Act, 1961 (47 of 1961), or the Central Warehousing Corporation established under section 3 of tile
Warehousing Corporations Act, 1962 (58 of 1962), or the Unit Trust of India established under section 3 of the
Unit Trust of India Act, 1963 (52 of 1963), or the Food Corporation of India established under section 3, or a Board
of Management established for two or more contiguous States under section 16 of the Food Corporations Act, 1964
(37 of 1964), or 9[the Airports Authority of India constituted under section 3 of the Airports Authority of India Act,
1994 (55 of 1994)], or a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976
(21 of 1976),or the Export Credit and Guarantee Corporation Limited or the Industrial Reconstruction Bank of
India Limited ], 11[ the National Housing Bank established under section 3 of the National Housing Bank Act, 1987
(53 of 1987)], or 12[ 9[an air transport service, or a banking or an insurance company], a mine, an oil-field,] 13[a
Cantonment Board,] or a major port, the Central Government, and
7

Hotel Kanishka v Delhi Administration 1995 Lab IC 2381 (Del)

(1993) 2 LLJ 491 (Ker)
9
Cf Minerva Mills v Their workmen (1954) 1 LLJ 119 (SC)
10
Malhotra, Industrial Disputes Act, p 803
11
Shellac Industries ltd. v Their Workmnen (1967) 1 LLJ 492 (Cal)(DB)
12
10.
Reference of dispute to Boards, Courts or Tribunals. 8

(1)
*****

[Where the appropriate Government is of opinion that any industrial dispute exists or is apprehended, it
may at any time], by order in writing-

(d)
Refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, whether it
relates to any matter specified in the Second Schedule or the Third Schedule, to a Tribunal for adjudication:
Provided that where the dispute relates to any matter specified in the Third Schedule and is not likely to affect
more than one hundred workmen, the appropriate Government may, if it so thinks fit, make the reference to a
Labour Court under clause (c):]

[Provided further that] where the dispute relates to a public utility service and a notice under section 22 has
been given, the appropriate Government shall, unless it considers that the notice has been frivolously or
vexatiously given or that it would be inexpedient so to do, make a reference under this sub-section
notwithstanding that any other proceedings under this Act in respect of the dispute may have commenced:
4[Provided also that where the dispute in the relation to which the Central Government is the appropriate
Government, it shall be competent for the Government to refer the dispute to a Labour Court or an Industrial
Tribunal, as the case may be, constituted by the State Government.]
13
Bangalore Wollen cooton silk mills v Their workmen (1968) ILLJ 555 (SC)
14
THE SECOND SCHEDULE
Matters within the jurisdiction of Labour Courts
The propriety or legality of an order passed by an employer under the standing orders;
The application and interpretation of standing order;
Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully
Withdrawal of any customary concession or privilege;
Illegality or otherwise of a strike or lock-out; and
All matters other than those specified in the Third Schedule.
This proviso vests the appropriate government with an overriding power of making a reference in case where the dispute
relates to a public utility service and a notice of strike and look out under s 22 of the ID act has been given ( Joshlook
Hospital an research centre v BV Chavan 1983 Lab IC 1100), in such a case, making of reference is imperative. Further,
appropriate govt can make reference even if the conciliation proceedings before a conciliation officer or any proceedings
under s 33A or 33C are pending in connection with such a dispute, however this proviso contains two exceptions. The
appropriate govt may refuse to make the refernce if it considers that the notice of strike or lock out as the case may be under
S 22 is of frivolous or vexatious nature and that I would be inexpedient to make the reference. (Tirupati motor Transport
Workers union v Venkatashaewra Bus union 1968 Lab IC 1534 (AP)
15
This proviso has been inserted by the amending act of 1982, it empowers the central govt to refer the industrial disputes,
in relation to which it is the appropriate govt, to a labour court or an industrial tribunal, as the case may be, constituted by
the state government.
16
The Sindhu Resettlement Corp Ltd. v The industrial tribunal of Gujarat (1968) 1 LLJ 834 (SC)