Appropriate Government

Indian Legal System > Civil Laws > Labour Laws > Industrial Disputes Act, 1947 > Appropriate Government

In this article, we shall understand the meaning of important term “Appropriate Government”. Various power are given to the appropriate Government under the Industrial disputes act, 1947.

The Industrial Disputes Act has made provision for the investigation and settlement of industrial disputes and for certain other purposes. It provides for special machinery of conciliation officers, work committees, the court of inquiry, Labour courts, Industrial Tribunals, and National Tribunals, defining their powers, functions, and duties and also the procedure to be followed by them. It also enumerates the contingencies when a strike or lock-out can be lawfully resorted to when they can be declared illegal or unlawful, conditions for laying off, retrenching discharging or dismissing a workman, circumstances under which an industrial can be closed down and several other matters related to industrial employees and employers. 

As per the provisions of the Industrial Disputes Act, 1947, when conciliation fails to bring an amicable settlement of the dispute, the conciliation officer has to submit a failure report to the appropriate Government with his own view for reference. The appropriate Government, after proper examination of the failure report, refers it either to the Labour Court or to the Industrial Tribunal for promoting a settlement of the dispute. Under Sec 10 of the Industrial Disputes Act 1947, the appropriate Government enjoys discretionary power to refer an industrial dispute to the court or tribunal. The law prescribes five major provisions for reference to a dispute.

• By the first proviso, the appropriate Government has been granted with the liberty to make the reference to a Labour Court if the matter comes under Schedule-II.
• Secondly, the Government has been granted with further power of referring the dispute to Labour Court even if it comes under Schedule-Ill of the Act, provided the dispute relates to less than 100 workers. Usually, the matters under Schedule-Ill falls under the jurisdiction of the Tribunal.
• Thirdly, where the dispute relates to public utility services and a strike notice under Sec 22 has been given; if the appropriate Government after examination, thinks fit, can make a reference of the dispute, to the court.
• Fourthly, where the parties to an industrial dispute apply in the prescribed manner either jointly or separately to the appropriate Government for a reference of a dispute to the Board, Court, then the Government can refer the same to the Board, Court or Tribunal.
• Fifthly, where the strike or lock-out is in existence at the time of reference of the dispute to Labour Court or Tribunal, the appropriate Government may by order prohibit the continuance of any strike or lock-out in that industry.
• Besides this, if any industrial dispute exists or is apprehended, the employer and the workmen can enter into an agreement and submit it to the appropriate Government for reference of the dispute to the arbitrator. In this case, the appropriate Government has to refer the same to the arbitrator (s) chosen by them (the worker and management).

From the above explanation we can conclude that the appropriate government has to play a very important role in solving industrial disputes. The appropriate Government under the Industrial Disputes Act, 1947 enjoys a wide power for reference of disputes to Boards, Courts or Tribunals.

Let us see the definition of the term “appropriate Government” and what includes.

Section 2 (a) Appropriate Government:

“Appropriate Government” means—

(i) in relation to any industrial dispute concerning  any industry carried on by or under the authority of the Central Government, or by a railway company or concerning any such controlled industry as may be specified in this behalf by the Central Government or in relation to an industrial dispute concerning a Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), or 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 (34 of 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), or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or the Oil and Natural Gas Corporation Limited registered under the 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 the 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 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 the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987)], or an air transport service, or a banking or an insurance company], a mine, an oilfield, a Cantonment Board,] or a 6 [major port, any company in which not less than fifty-one per cent. of the paid-up share capital is held by the Central Government, or any corporation, not being a corporation referred to in this clause, established by or under any law made by Parliament, or the Central public sector undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the Central Government, the Central Government, and

(ii) in relation to any other industrial dispute, including the State public sector undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the State Government, the State Government:

Provided that in case of a dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment;

Section 25 L (b) in The Industrial Disputes Act, 1947 (Added by 1976 Amendment)

(b) notwithstanding anything contained in sub- clause (ii) of clause (a) of section 2,

(i) in relation to any company in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or

(ii) in relation to any corporation[ not being a corporation referred to in sub- clause (i) of clause (a) of section 2] established by or under any law made by Parliament, the Central Government shall be appropriate Government.

By amendment Act of 1982, several new establishments have been added to the list under this definition.

In Hindustan Aeronautics v. Their Workmen, AIR 1975 SC 1737 case, the Court held that the State Government is the appropriate government in respect of a separate unit of the company within its jurisdiction, even though it may be functioning under the directions of its Head Office situated elsewhere.

In workmen of Sri Ranga Vilas Motors v. S.R. V. Motors, AIR 1967 SC 1040 case, the Court held that the competence of the Mysore State Government to make a reference in respect of a dispute relating to a transfer of workman employed in Banglore, through the Head Office of the company was situated in Madras State. The Court held that there should be a connection between the dispute and the territory of the State and the industry, concerning which the dispute arose. The conclusion was based on the view that if the workman was working at a place in a state different from that in which the Head Office was situated, the employment would be in separate unit or establishment, and hence, the appropriate government of the State in which the workman was employed.

Indian Legal System > Civil Laws > Labour Laws > Industrial Disputes Act, 1947 > Appropriate Government