Industrial Dispute Act 1947 (April)

Sections Description
Sec 2 Definitions
Sec 2A Dismissal of an Individual workman deemed to be Industrial Dispute
Sec 2B Award
Sec 3 Work Committe
Sec 4 Conciliation officers
Sec 5 Board of Conciliation
Sec 6 Courts of Inquiry
Sec 7 Labour Courts
Sec 7A Tribunals
Sec 7B National Tribunals
sec 10 Reference of disputes to Boards, Courts or Tribunals
Sec 10A Voluntary reference of disputes to arbitration
sec 12 Duties of conciliation officers
sec 13 Duties of Board
sec 14 Duties of courts
sec 15 Duties of Labor Courts, Tribunals and National Tribunals
sec 16 Form of report or award
sec 17 Publication of report and award
sec 17A Commencement of the award
sec 17B Payment of full wages to workman pending proceedings in higher courts
sec 18 Persons on whom settlements and awards are binding
sec 19 Period of operation of settlements and awards
sec 20 Commencement and conclusion of proceedings
sec 21 Certain matters to be kept confidential
sec 17 Publication of report and award
sec 22 Prohibition of strikes and lock-outs
Sec 23 General prohibition of strikes and lock-outs
Sec 24 Illegal strikes and lock-outs
sec 25 Prohibition of financial aid to illegal strikes and lock-outs
25 A- 25 J Lay - Off and Retrenchment
sec Conditions of service, etc., to remain unchanged under certain
33 circumstances during pendency of proceedings.
sec 34 Cognizance of offences
sec 35 Protection of persons
sec 36 Representation of parties
26- 31 Penalties

Schedule 1 – Public Utility Industries – sec 2(n) vi

Schedule 2 -- Matter within jurisdiction of labour court – sec 7
Schedule 3 -- Matter within jurisdiction of Industrial Tribunal – sec 7A
Schedule 4 – Condition of service for change of which notice to be given -sec 9A
Schedule 5- Unfair labour practices – Sec 2(ra)
General Labour Law Introduction

Necessity and Importance of Labour Law and Principles

(1) Improves industrial relation i.e. employee-employer relations and minimizes industrial
disputes.
(2) Prospects workers form exploitation by the employers or management
(3) Helps workers in getting fair wages
(4) Minimizes labour unrest
(5) Reduces conflicts and strikes etc.
(6) Ensures job security for workers
(7) Promotes welcome environment conditions in the industrial system
(8) Fixes rest pauses and work hours etc.
(9) Provides compensation to workers, who are victims of accidents.
Principles of Industrial Legislation:
Industrial legislations based upon the following principles:
(1) Social Justice
(2) Social Equality/ Welfare
(3) National Economy
(4) International Uniformity
Industrial Legislation
The Workmen’s Compensation Act, 1923
The Industrial Employment (Standing Orders) Act, 1946
The Trade Union Act, 1926
The Industrial Disputes Act, 1947
The Minimum Wages Act, 1948
The Employee’s State Insurance Act, 1948
The Factories Act, 1948
Maternity Benefits Act, 1961

Harmonious Relationship settle disputes between management and workmen, amicably and
peacefully.
Workmen Dimakuchi Te Estate v Dimakuchi Tea Estate
• Securing and preserving amity and good relationship
• Investigation and settlement
• Prevent strike and lock-outs
• Relief to workmen – layoff
• Promote Collective bargaining
SN Rai v Viswanath Lal
• Redressal, grievance
• Statutory, job security
• Conciliation, court inquiry
Dindigul Skin Merchants Association v Industrial Tribunal- harmony, social justice
Chandrakanth Tukaram Nikam v Muncipal Corp of Ahmedabad- civil suit for
dismissal, barred. Forum constituted should be considered
Definition of Appropriate Government = sec 2(a)
Workmen of Sri Ranga Vila Motors v SRV Motors – state in which he is employed
Mach Kund Hydro Project v Workmen- two state, to whom the work was taken and
carried
Definition of Industry – Sec 2(j)
State of Bombay v Hospital mazdoor Sabha – Hospital is industry
 University of Delhi v Ram Nath- university not industry
Madras Gymkhana Club Emp Union v management –Club not industry
Cricket Club v Bombay Labour Union – Not an industry
-------------
Banglore Water Supply and Sewage Board v A Rajappa –1978 triple test
• Systematic activity
• Co-operation between employee and employer
• Production and supply , human wants
T Rajan v State -Science Technology Museum – Industry
Umayammal v Sate of Kerala – not industry if doing sovereign function
C Mohanan v State of Kerala – Tourism Industry
Executive Engineer ( state of Karnataka) v K Somasetty – Irrigation and Telecom not
Industry
Coir board v Indira Devi -Industry, triple test, three bench
Asha Ram v Div Engineer, Telcom Depart- is an industry
Definition of Industrial Dispute- sec 2(k)
• Employers and employers
• Workmen and employers
• Workmen and workmen
In order to constitute Industrial dispute
• There must be an industry
• Dispute
• Dispute connected with employment or non employment or terms or
conditions
• Dispute between any class

Individual Dispute and Industrial Dispute

Individual Dispute per se is not Industrial dispute, it become Industrial
dispute if it had the backing of trade Union or substantial number of
workmen
Workmen of Rohtak General Transport v Rohtak General Trans Company- no
number defined
Workmen of Indian Express Newspaper v IENP Ltd – 31 out of 131 not Industrial Dis
Western India match company ltd v WIM C Ltd wokers union – dismissed , union
can take that matter as industrial dispute
Bombay Union of Journalist v The Hindu Bombay- not Industrial dispute
Bongaigaon Ref & Petro Chem v Samujuddin Ahmed - not joined and not Dispute-

Amendment – 1965 – Sec2A-

dismissal, termination of service, retrenchment per se an industrial dispute if an
individual worker affected.
Titagah Jute factory v Sriram Tewan – is dispute even though its not supported by
unioin

Definition of Workman – sec 2 (s)

Hussain Bhai Calicut v Alath factory Thozilali Union Kozhikode- are workmen
Kerala State coir corporation Ltd v Industrial Tribunal – 11 person are workers
C Mohanan v State of Kerala – KHC – daily rated driver is workman
 Bharat Bhavawan Trust v Bharat Bhawan Artists Asso – artist comes under 2(s)
Mar baselius Medical Mission Hospital v Dr Joseph Bab- technical skilled workmen

Authorities under Industrial Dispute Act

1. Work committee- Sec 3

100 + workmen and 12 months – need a work committee

Constitution of work committee

Employee Rep, Workmen Rep (Trade union act 1926)
Northbrook Jute Company v Their workmen – alteration in condition of
service doesn’t comes under workmen committee, they only power to
smooth function
2. Conciliation Officers – sec 4
Public servant – sec 21 of IPC 1860
Powers of Conciliation officer – Sec 11
• Inquiry and investigation after notice
• Attendance of any person for the purpose of examination
Duties of Conciliation officer Sec 12
• Officer may handle public utility service by sec 22
• Merits, demerits, settlement, investigation, amicable solution
• Send settlement report to appropriate govt and also sign MOU
• If no then send report to District labour officer for reference
B N Elias and Co ltd v G P Mukherjee- appropriate govt refuses, communicate to
parties
3. Board of Conciliation – sec 5
• Chairman and 2 or 4 members
Power of Board of conciliation sec 11
Do enquiry, reasonable notice, power of CPC 1908 ( attendance, documents etc)
Harchura Tea Estate v LAT- natural Justice and quasi judicial function
Duties of Board of conciliation sec 13
• Amicable solution
• Settlement
Board of Conciliation Conciliation Officer
Adhoc , temp Permanent
Ref by Government Have some independent discretion
two months submit 14 days
contain inter alia in failure report reason for failure in report
Judicial Administrative
finding and facts and recommendation only a report
East Atlantic and Allied Companies v BL Shelk – in arbitrary capricious manner
4. Court of Enquiry -sec 6
Empowers appropriate government to constitute a court of enquiry
Power of court of inquiry – sec 11, Duty of court -14
5. Labour Court – sec 7 – for matter in second schedule , Duty – sec 15
Judge of HC or 3 yrs District Judge or
• Judicial office in India not less than 7 yrs
 • Or presiding officer in labour court not less than 5 yrs
• Disqualification 65 yrs of age and not an independent person
6 Industrial Tribunal sec 7A – third schedule , Duty – sec 15
7A(2)- one person appoint
7A(4) – two person appoint
7A(3)- Qualification
Power of Industrial Tribunal – sec 11
Williamson Magor and Company Ltd v Workers WMC -benefit for all concern

7. National Tribunal sec 7B – State affected, Duty – sec 15

Power of Industrial Tribunal – sec 11

Restriction of change of conditions, service , Dismissal, punishment – sec 33

Amar Sigh and other v labour court , Bharatpur- doesn’t amount to re judicata
TN State Transport Corp v Neethivilangan, Kumbakonam- need to pay even if
dismissed by the employer until the pendency of dispute is final by tribunal

Notice of change in conditions of service- Sec 9A- 21 Days

TN electricity Work Fed v madras State – to prevent unilateral action
Harmohinder Singh v Khangara Canteen, Ambala construction – Sec 9A, Provisions
are mandatory
1. Change in condition of service
2. Adversely affect workman
3. Change of matter provided in 4 schedule of act
Reference of Disputes to Authorities
Sec 10 (1)- Discretionary References
• Refer to board
• Refer to court
• Refer to labour court
• Refer to tribunal – third schedule
If 100+ employees and matter in Third schedule – then to labour court
Western India match Company v WIM workers- govt reference power not
exhausted
Avon Service Production Agencies v Industrial Tribunal Haryana- any time reference

Compulsory reference – Dispute related to Utility service- based on notice for strike
or lock-out by Sec 22 issued
Reference by Application of parties – sec 10 (2)
Period of award- proposed by appropriate gov, for Individual its 3 months
Government cannot be compelled to make reference - sec 10(1)
Not mandatory its Discretion of government
Art 226 – Govt of India v national Tobacco Co 1997
Constitution Validity – sec 10(1)
Delhi Cloth and General Mills v Shambhu Nath Mukherjee- valid
 Settled dispute cannot be again referred
Management Banglore Woollen Cotton and Silk Mills co v Workmen -cannot if by
adjudicatory

Judicial Review is possible : if not bonafied, not appropriate govt, contrary to law,
barred by res judicata, order reference not in writing

Reference cannot be withdrawn, cancel or superseded

State of Bihar v D N Ganguli – cannot revoke, its ultra vires

Voluntary Reference of Dispute to Arbitration

Industrial Dispute Amendment and Misc Provisions Act -1956
Sec 10(A)
Reference should be written agreement
Umpire added to the Arbitration for even number of arbitration opinion
Prohibition of Strike and lock-out
Exclusion of Arbitration and Conciliation Act, 1996 – sub sec 5 of sec 10(A)
Kerala L K Sanghatan v Liberty Foor Wear Company – need to public or not valid
Award – sec 2(b)
Arbitration award made under sec 10-A of the Act
Sec 16(2)- Signed by presiding officer
Sec 17(1)- 30 day after published in gazette its enforce , its final
Sec 17(2) – challenged by 226 art
Public utility services - Sec 2 (n)
Railways, Dock, or Port, Postal, water , electricity , sanitation,
Industry mentioned in First Schedule
Strike and Lock -out - sec 22 to 24
Definition of Strike – Sec 2(q)
• Concentrated refusal by group
• A cessation of work
• Refusal under common understanding
Farrer v Close – cessation of work on the part of workman
North Brook Jute Co Ltd v Their Workman- additional work refusal not strike
Indian Humpe Pipe co ltd v Mazdoor Sangh – attendance, staying away, strike
National Textile Workers Union v Meenakshi Mills- deaths , resume work , strike
Definition of Lock-out - Sec 2(L)
• Temporary close
• Lock-out by employer
Jayabharath tile works v State of Madras -permanent disclose is not lockout

Prohibition of Strike and Lock-out Sec 22 - Public utility services

General Prohibition – Sec 23 – industrial establishment
Illegal Strike and Lockout- Sec 24
Prohibition strike in Public Utility – Sec 22(1)
• Advance notice to be given
• 14 days advance
• Not star strike before the dame mention
• 14 days to 6 weeks for effective
 • Cannot commence during pendency of conciliation and 7 days after
conclusion of such proceedings
Premier Auto Ltd v G R Sapre
Strike Notice- employer in 5 days report the appropriate government
Prohibition Lock-out in Public Utility – Sec 22(2)
• 14days
• 14 – 6 weeks
• If already strike then no notice of lock-out
Lock-out Notice- employer in 5 days report the appropriate government

Mineral Miners Union v Kudremukh Iron Ore Co Ltd- without notice strike is illegal
Tata Iron and Steel Co v Workman – lock out without notice is illegal- sec 24

General Prohibition – sec 23- cannot lockout or strike under pendency

Illegal Strike and Lock out

• If it’s against sec 22, 23
• And contravention against the order made by appropriate government under
sec 10
• After ref to dispute for arbitration
Penalties regarding Strike and Lock-outs
1. Penalty for illegal strike – sec 26(1) – 1 month and 50Rs
2. Penalty for illegal lockout – sec 26(2) – I month and 1000 Rs
Impact of Illegal Strike and Illegal lock-out
1. Right to wages during illegal strike
Crompton greaves v Workmen – if legal then payable, otherwise not
2. Immunities of Trade union and illegal strike
Rohtas Industries ltd v Rohtas Staff union – Illegal will not deprive immunity
of Trade union
Rohtas Industries Staff Union v State of Bihar – employees not to pay
compensation to employer , but punished under sec 26(1)
3. Right to wages during illegal lockout
Krishna Sugar mill v State of UP – need to pay, without notice
Lay- Off and Retrenchment – Sec 25 A to 25 J
IDA – Amendment in 1953 – added this
Lay-off - defined in sec 2(kkk)
• Failure, refusal or inability
• Shortage of raw materials, breakdown of machinery
• Only employees in the muster-roll and not retrenched
Veiyra v Frenandez
Karibettaa Estate v Rajamanickam – any other reason , ejusdem generis
Narayana Swami v labour court
Compensation for lay-off -25 A
• Seasonal work
• 50 workmen employed in the preceding month
• For workman who laid-off will get but not a badly workmen – sec 25C
• Name in muster roll
• Continuous one year
 • Rate will be 50% basic pay and DA
• If 45 days in 12 months then employer can retrench
Sun enamel Stamping Works v Workmen -need one year exp
Workmen of Dewan Tea Estate v Their management – need to pay excluding
holidays
Workmen not entitled to Compensation in certain cases – sec 25E
1. Accept another job offer
2. Not present for work
3. Lay off because of strike by another party in other area
Association of Cement companies ltd v Their workman- no compensation
Special provisions Related to laying off – 25 M
100 employees, Not seasonal, Continuous for previous 12 years
Then
1. Shortage, fire, flood no prior permission required
2. By application served by employer
3. 30 days after if flood, fire etc
4. 60 day notice of application made , after that its activated
5. By Tribunal – 30 days
Sec 25 Q- define punishment for contravention of Sec 25M

Retrenchment sec 2(oo) - disciplinary action

Following are not retrenchment
1. Voluntary retirement
2. Age retirement
3. Termination as per expired contract
4. Termination ground of ill-health
Santhosh Gupta v SBI –termination of any reason includes in Termination not
retrenchment . he should be re-instated
SBI v Workman – termination as disciplinary action Is not retrenchment
KSRTC v Sheik Abdul Khadar – probationer termination not retrenchment

BC and A.Mills v Shambhu Nath – motion setter, abolished post ,give

another post not qualified, striking off name amounted to retrenchment

Continued Ill Health – termination not retrenchment

Burrakur coal ltd v azzimudin ashraf – continuous ill problem
Condition precedent for Retrenchment of workmen – sec 25 F
1. One month notice
National Iron Steel com v The State of West Bengal
2. Paid at the time of retrenchment , compensation
3. Notice to govt and gazette
Procedure for retrenchment– 25G – workman claim protection only if he
sec (2s), 2(j), indian citizen, no contrary agreement
1. First come last go
2. Last come first go
Om Oil and Oli seeds Exchange ltd v Workmen – skill considered
Swadesamitran Ltd v Their Workmen – last come first go not good, need
valid proof
 Workman of Subong Tea Estate v Subong Tea Estate- valid only if proved last
come first go, otherwise not a valid retrenchment
Relief in Unjustified retrenchment
Swadesamitran Ltd v Their Workmen
Re-employment of Retrenched workmen – Sec 25H
Special Provisions to Retrenchment – Sec 25N
1. Exp not less than one year
2. Order from appropriate govt
3. Application by employer
4. Government should consider the application and its their discretion
5. Application permission after 60 days considered granted
6. Order from appropriate govt is final
7. If reference made to tribunal then within 30 days
Closure – Sec 2(cc)
Sec 25-FFA- : 60 days notice to employee
Sec 25 FFF – compensation
Sec 25(O) – closure application and special provisions of under taking
Gwaloir Rayons Workers v State of Kerala – order referring to Industrial Tirbunal is
valid
Sec 25(R ) - Punishment for violation of 25 (O)
Excel Wear v Union of India – 25(o) invalid, violation Article 19 (1) (g) ( any
profession, trade, business)
1982 Amend Sec 25 (O)
M/s Orissa textile and Steel Ltd v State of Orissa- constitution bench, valud

Unfair labour Practices- Fifth Schedule

Sec 2 ( ra) – Define
Sec 25(T) – 1982 Amendment – no unfair – who registered under Act 1926(1)
Sec 25 (U) – Punishment – six months

Trade Union Act 1926- 1 June 1927

Buckingham case 1920 – injunction order against trade union in strike committe
Trade Dispute
Definition – sec 2(g) similar to Industrial Dispute of IDA 1947,sec 2(K)
Trade Union
Define Sec 2(h)
TN Non Gazetted Gov Officers Union madras v The Registrar of trade Union (1962)
- Not allowed, civil servants and sovereign function
Registration of trade Union
Sec 3
Kerala : labour commissioner – Registrar, Joint LC – Addi Registrar of Trade Union
Sec 4 – Mode of Registration -seven or more members may apply for registration
Sec 5 Application for registration
Sec 6 – Provisions to be contained in the rules of a Trade Union.
Sec 8 – Registration
Sec 9 - Certificate
Sec 9A – Minimum Requirements for Registration
 Keshoram Rayon Workers Union v Registrar of Trade – any number of union from
an industry
Hindustan Copper mazdoor Sangh V Chief labour – Form trade Union is
Fundamental Right
Sec 10 : Cancellation of registration
Mysore Iron and Steel Woks labourer Asso v labour Commissioner and Registrar
Trade Union Mysore– cancellation order without hearing is not valid
Sec 11: Appeal- within sixty days of cancelation or refusal etc
Right and Privilages of Registered trade Union
1. Body Corporate :Sec 13 : Incorporation of registered Trade Unions.
2. Separate Fund for Political Purpose sec 16
3. Immunity from punishment for criminal conspiracy sec 17 – IPC 120B 1980
Jay Engineering Works v Workmen – violence, assault, threat etc not valid
4. Immunity from civil suit sec 18
Rohtas Indus Staff Union v State of Bihar- strike illegal but still civil immunity
Western India Cine Employees v Filimalaya Pvt Ltd- court injunction cannot
be entertained, its trade union right
5. Right of Minors to membership sec 21

Duties and Liabilities of registered trade union

1. Notice on change of registered office – within 14 days to registrar
2. Sec 15 – objects general fund be spend
3. Constitution of fund for political purposed – sec 16
4. Proportion of office bearers to connected with industry – sec 22
5. Returns sec 28
6. Disqualification – Sec 21 A
Change of Name – 2/3
Amalgamation : 60% of vote needed
Collective bargaining and Industrial practice
Coined by : Beatric Webb
Advantages
1. Its quick and efficient
2. More democratic
3. Harmonious relationship
Disadvantage
1. Consumer are affected
2. Power Politics
3. Parties fail and intolerable strike goes on
Bargaining Power
1. Strength of employer
a. Availability of substitute
b. Market demand for products
c. Effect would have on customer and company
2. Worker strength
a. Capacity to undergo hardship during strike
b. Availability of alternative employment
c. Financial position of the union
The Industrial Employment ( Standing Order Act) 1946
Define Standing
BRPS parishad v Indian oil Corp – condition of employment with both
Management Shahadaras Light Railway Co v SS Railway Workers Union- clear to
both parties
Agra Electrical Supply Co v Alladin – SC – Bind to all
Avery India Ltd v Second Industrial Trbunal West Bengal

Define Standing Orders – Sec 2 (g)

Matters inside standing order
• Classification of workmen – perm, temp,app,inter,probation, badils
• Details of workdays, pay days, wages rate
• Shift working
• Attendance , late coming
• Leave and holidays, authorities
• Pass for entry
• Working mode, stoppage , temporary
• Termination, dismiss , notice
• Redress unfair practice
Management SS railway Co v S S Railway Workers Union

Submission , Certification, Modification

• Submit all document , 5 copies to certifying officer - sec 3(1)
o Additional LC for state
o Deputy LC for district
• Contains details of Number of, workmen in different group, perm, temp,
badly, prob, apprentices, and trade union details
• Forward to trade Union, if any objection mention that- 15 days
• Certifying office give hearing for both parties
• Certified order in 7 days – returned to trade union and employer
Appeal
In 30 days
Rohtak & Hissar Electric Supply Co v State of UP – no union, and rep are from
elected and not valid, certify authority modified ,find the employees are not
organized and valid
Date of operation of Standing order – 7 days from copies send
Register of standing orders - in certifying authority office
Modification – after only 6 months