Authorities Under Industrial Disputes Act

Indian Legal System > Civil Laws > Labour Laws > Industrial Disputes Act, 1947 > Authorities Under Industrial Disputes Act

The main object of the Industrial Disputes Act is the investigation and settlement of industrial disputes. For this particular purpose, various authorities have been created under the Act. The adjudication of the industrial dispute has at the first instance been kept out of the jurisdiction of the civil courts so that efforts may be made for the settlement of such dispute through some other agencies at the earliest. The industrial disputes are mainly settled through three different modes. They are – (i) conciliation (ii) adjudication, and (iii) arbitration. Different authorities under the Act are works committee, conciliation officer, Board of conciliation, Court of inquiry, Labour Court, Tribunals.

The Industrial Disputes Act, 1947 provides an elaborate and efficient machinery for the peaceful and amicable settlement of the industrial disputes. They include:

1. Works Committees (Sec 3)
2. Conciliation Officers (Sec 4)
3. Board of Conciliation (Sec5)
4. Courts of Enquiry (Sec6)
5. Labour Courts (Sec 7)
6. Tribunals (Sec 7A)
7. National Tribunals (Sec 7B)

Works Committee (Section 3 of the Act):

Negotiation is an important communication process used to resolve conflicts. It is voluntary, non-binding, and a process in which parties control the outcome as well as the procedure. Section 3(1) of the Industrial Disputes Act provides for Works Committee.

Condition for Forming Works Committee:

The industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months should constitute the works committee. The appropriate Government by general or special order, order the employer to constitute a Works Committee in the prescribed manner.

Constitution of Works Committee:

Works Committee must consist of representatives of employer and workmen engaged in the establishment. The number of members in the committee should be fixed and not more than 20. The number of representatives of workmen on the committee shall not be less than the number of representatives of the employer. The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926). The Central Government or the equivalent authority holds the right to dissolve this committee if they feel it is not constituted as per the guidelines.

Duties of Works Committee:

It shall be the duty of the works committee

• to take measures for securing and preserving amity and good relations between the employer and the workmen;
• to comment upon the matters of their common interest; and
• to endeavour, to compose any material difference of opinion in respect of such matter.

The main purpose of constitution of Works Committee is to develop the sense of partnership between the employer and the workmen. They are normally concerned with the problems arising in the day to day working of the concern. The function of the work committee is to ascertain the grievances of the employees and to arrive at some agreement when the occasion so arises. Works committees are more suitable for the prevention of industrial unrest by unit. Their main purpose is to solve the problem in cordial atmosphere of mutual goodwill and friendship, in the premises of the factory, not as to contesting parties before a conciliation officer. It is comparatively easier to reconcile the differences in the initial stage when neither of the party has taken a very hard stand. From this point of view also, Works Committees plays an effective role in preventing industrial disputes.

The finding of Works Committee is recommendatory or advisory. The final power to decide whether they are to be implemented rests with the employer. The employer is not bound to implement the findings of such committee.

In Kemp & Co. Ltd. v. Workmen, (1955) IILLJ 481 Mad case, the Court observed that the institution of Works Committee has been provided in the rules framed under the Industrial Disputes Act, in order to look after the welfare and interest of the workman,

In the Metal Box Company of India Ltd. v. their Workmen, 1969 AIR 612 case, the Court observed that agreed solutions between the Works Committee and the management are always entitled to great weight and should not be readily disturbed, particularly in matters like classification, grades and scales which are peculiarly within the personal knowledge of the members of the Works Committee.

Dissolution of the Works Committee:

The Central Government or any officer authority to whom the power under Section 39 has been delegated, may, after making necessary enquiry, dissolve any works committee at any time, by an order in writing provided it or he is a satisfied the committee has not been constituted in the accordance with the rules or that not less than 2/3rd of the number of representatives of workmen have without any reasonable justification, failed to attend three consecutive meetings of the committee or that the committee has ceased to function for any other reason, thus defeating the very purpose for which this institution exists in the Industrial law.

Difficulties in Working of Works Committee:

• lack of appreciation on the part of both the parties;
• illiteracy and lack of understanding amongst the workers;
• disinclination of the workers’ representatives to participate in the deliberations of the
  committee; and
• works representatives became unpopular because of their failure in satisfying the high
  expectation of the workers.

Conciliation Officer (Section 4 of the Act):

Conciliation is a process by which discussion between the employers and the employees is kept going through the participation of a conciliator.  Conciliator plays a pivotal role in bringing round the parties involved in the disputes and held in resolving difference by making the parties understand and appreciate the difficulties of each party involved in the dispute in the Industrial field.  As a mediator, his tactful handling of the situation sometimes saves the situation from taking a serious turn.  

Section 4 of the Industrial Disputes Act, provides for Conciliation Officers. This Section corresponds to Section 18-A of the Trade Disputes Act, 1929. According to
this section, the appropriate Government is empowered to appoint, by notification in the Official Gazette, such number of persons as it thinks fit, to be Conciliation Officers, charged with the duty of mediating in and promoting the settlement of industrial disputes. According the sub-section (2), a Conciliation Officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries either permanently or for a limited period. Conciliation Officer shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code.

The Conciliation officer is empowered to exercise all quasi-judicial powers of a Civil Court under the Civil Procedure Code, 1908. (CPC). He is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department, having a degree in law and at least seven years’ experience in the labour department including three years of experience as Conciliation Officer.

Powers of Conciliation Officer:

Section 11 of the Industrial Dispute Act, 1947, gives provisions for the powers of the conciliation officer.

• Conciliation Officer for the purpose of inquiring into an existing apprehended Industrial Dispute is empowered, after giving the notice to enter the premises occupied by the Industrial establishment.
• Conciliation Officer is also empowered to call for and inspect any document which he may consider relevant to the dispute.
• Conciliation Officer enjoys the same powers as are available to the civil Courts in respect of compelling the parties, to appear and produce all the relevant documents. Thus, the Conciliation officer is empowered to exercise all quasi-judicial powers of a Civil Court under the Civil Procedure Code, 1908. (CPC).
• All Conciliation Officers are Public Servants within the meaning of Section 21 of the Indian Penal Code.

Duties of Conciliation Officers:

Section 12 of the Industrial Disputes Act, gives provisions for duties of the conciliation officer.

• In every industrial dispute, existing or apprehended, the conciliation officer shall hold the conciliation proceedings in prescribed manner.
• The conciliation officer for settling the dispute without delay shall investigate the dispute and may do all such things to make the parties to come fair and amicable settlement of dispute.
• The conciliation officer shall send a report on the settlement of the dispute to the appropriate Government together with a memorandum of the settlement signed by the parties to the dispute.
• If no such settlement is arrived at, the conciliation officer shall as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute, and bringing about a settlement thereof together with a full statement of such facts and circumstances and the reasons on account of which, in his opinion, a settlement could not be arrived at.
• If, on a consideration of the failure report referred above the appropriate Government is satisfied, that there is a case for reference to a Board, Labour Court, Tribunal or National Tribunal it makes such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons thereof
• A report under Sec. 12 shall be submitted within 14 days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government.

Effects of Conciliation Proceedings:

Under Section 22 of the Act, the Strike and Lockout in a public utility service is prohibited during the conciliation proceedings. If a settlement is arrived, then he is required to send a report along with a copy of a memorandum of settlement signed by the parties to the Appropriate Government. If no settlement is arrived at between the parties the conciliation officer is required to send a full report to the appropriate government, giving all the circumstances relating to the dispute and the steps taken by him to resolve the dispute along with the reasons why the settlement could not be arrived at. Section 33 of the Act provides that during the pendency of Conciliation proceedings, no employer shall after the conditions of service of a workman to his prejudice discharge or punish by dismissal any workman during above proceedings.   

Board of Conciliation (Section 5 of the Act):

Where conciliation fails, board of conciliation takes over. The functions of the Board of Conciliation are the same as those of the conciliation officers. The purpose of constituting boards of Conciliation is to bring about settlement of individual disputes. Section 5 of the Act provides for the constitution of a Board of Conciliation and its powers and duties. A Board of Conciliation is a body of persons, which the appropriate Government may constitute by notification in the Official Gazette for the purpose of promoting the settlement of an industrial dispute. It shall consist of a Chairman and two or four other members, as the appropriate Government may think fit. The Chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent shall be appointed on the recommendation of that party. But if any party fails to make recommendation aforesaid within the prescribed time, the appropriate Government shall appoint such persons as it thinks fit to represent that party.

A Board having a prescribed quorum may act notwithstanding the absence of the Chairman or any of its members or any vacancy in its number. The above-mentioned provisions are subject to the restriction that if the appropriate Government notifies the board that the services of the Chairman or of any other member have ceased to be available, the board shall not act until a new Chairman, or member, as the case may be, has been appointed.

Duties of Board of Conciliation:

Section 13 of the Industrial Disputes Act, 1947, gives provisions related to duties of the Board of Conciliation.

• Where the dispute has been referred to a Board under this Act, it shall be the duty of the Board to endeavour to bring about at settlement of the same and for this purpose the Board shall, in such manner as it thinks fit and without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute
• If a settlement of dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the Board shall send a report thereof to the appropriate Government together with a memorandum of the settlement signed by the parties to the dispute
• If no such settlement is arrived at, the Board shall as soon as practicable after the close of investigation send to the appropriate Government a full report on the steps taken by the Board for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof Report shall also contain a full statement of such facts and circumstance and the reasons on account of which, in its opinion a settlement could not be arrived at.
• The board shall submit its report within 2 months of the date on which the dispute was referred to it or within such shorter period as may be fixed by the appropriate Government.

Court of Inquiry (Section 6 of the Act):

Provisions for Court of Inquiry have been made in Section 6 of the Industrial Disputes Act, which lays down that:

The Central Government or the State Government, as the case may be, can appoint a Court of Inquiry. Such appointment is to be notified in the Official Gazette. After notification in Official Gazette, it attains a valid status. Such Court of inquiry is meant to inquire into any matter appearing to be connected with or to an industrial dispute.

A Court may consist of one independent person or such number of independent person as the appropriate Government may think fit and where a Court consists of two or more
members, one of them shall be appointed Chairman. The Court, having the prescribed quorum, may act notwithstanding the absence of the Chairman or any of its members or any vacancy in its number. In absence of Chairman of the Court of inquiry the Court shall not function. If the appropriate Government notifies the Court that the services of the chairman have ceased to be available the Court shall not act until a new Chairman has been appointed.

Duties and Powers of Court of Inquiry:

The powers and duties of these Courts are provided in Sections 11, 14 and 16 to 21 of Chapter IV of the Act. Section 14 of the Industrial Act 1947 prescribes duties of the Court of inquiry are as follows:

• The court of inquiry is to inquire into the matters referred to it under section 10(1) of the Industrial Dispute Act by the appropriate government. It is only those matters which are appearing to be or connected with the industrial dispute that can be referred to it under section 10(1) or under Section 12(5) of the Industrial Dispute Act, 1947.
• The court of inquiry is to make a report to the appropriate government on the basis of an inquiry held by it on the matters referred to it, ordinary within 6 months from the date of commencement of the inquiry. The inquiry made beyond the period of 6 months will not be illegal as the provision is directory in nature.

Effects of Proceedings Before Court of Inquiry:

Unlike the proceedings in the nature of conciliation when there is a legal bar regarding the worker’s right to go on strike, the employer’s right to declare Lockout and dismiss or otherwise punish the workmen under Section 33 of the said Act. The provision of this section 22, 23 and 33 provide that during the pendency of the preceding before the Court, the following rights remain unaffected.

• The workmen’s right to go on strike;
• The Employer’s right to declare Lockout; and
• The employer’s right to dismiss or otherwise punish the workmen under Section 33 of the Act.

Labour Court (Section 7 of the Act):

The appropriate Government may, by notification in the Official Gazette constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matter specified in the second schedule and for performing such other functions as may be assigned to them under this Act. A Labour Court shall consist of one person only to be appointed by the appropriate Government.

The qualifications of a person who can be appointed as Presiding Officer of the Labour Court are mentioned in sub-section (3) of Section 7 as follows :

• 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 Judge; or
• he has held any judicial office in India for not less than seven years; or
  (d) he has been the Presiding Officer of a Labour Court constituted under any Provincial Act or State Act for not less than five years.

Jurisdiction of Labour Courts:

The Labour Courts adjudicate the following disputes relating to matters specified in the second schedule:

• The propriety or legality of an order passed by an employer under the standing order.
• The application and interpretation of standing orders.
• Discharge or dismissal of workmen including reinstatement of or grant of relief to workmen wrongfully dismissed.
• Withdrawal of any customary concession or privilege.
• Illegality or otherwise of strike or lock-out. and
• All matters other than those specified in the Third schedule.

Duties of Labour Court:

Section 15 of the Act gives provisions related to the duties of Labour Court. The Labour Court shall hold its proceedings expeditiously and shall as soon as practicable on the conclusion thereof submit its award to the appropriate Government. The functions of the Labour Court as provided in the Act are:

• adjudication of industrial disputes relating to any matter specified in the Second Schedule;
• performing of such other functions as may be assigned to them under this Act.

No time period has been laid down for the completion of proceedings but it is expected that such Courts will hold their proceedings without going into the technicalities of a Civil Court. Labour Court has no power to permit suo motu the management to avail the opportunity of adducing fresh evidence in support of charges). Provisions of Section 137 of the Limitation Act do not apply to reference of dispute to the Labour Court. In case of delays, Court can mould relief by refusing back wages or directing payment of past wages

In Statesman Pvt. Ltd. v. H.R. Deb, AIR 1968 SC 1495 case, the Court observed that the expression “holding a judicial office” in Section 7 (3) (d) signifies more than discharge of judicial functions while holding some other office. The phrase postulates that there is an office and that that office is primarily judicial. Office means a fixed position for performance of duties. The use of same expression in Chapter V of Part VI of the Constitution not in pari materia can have no bearing upon the Industrial Disputes Act and vice versa. The intention of the Legislature really is that men who can be described as independent and with sufficient judicial experience must be selected. The mention of High Court Judges and District Judges earlier in the same section indicates that ordinarily Judicial Officers from the Civil judiciary must be selected at least so long as the separation of judiciary from the executive in the public services is not finally achieved. The appointment of a person from the ranks of Civil judiciary carries with it an assurance, which is unique. The functions of a Labour Court are of great public importance and quasi-Civil in nature. Men of experience on the Civil side of the law are more suitable than Magistrates. Persons employed on multifarious duties and in addition performing some judicial functions, may not truly answer the requirement of Section 7 and it may be open in a quo warranto proceeding to question their appointment on the ground that they do not hold essentially a judicial office because they primarily perform other functions.

In South Indian Bank Ltd. v. A.R. Chacko, AIR 1964 SC 1522 case, the Court observed that Schedule II of the Industrial Disputes Act, 1947 refers specifically to Section 7 of the Act. That section lays down that the appropriate Government may, by notification in the Official Gazette, constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act. Section 33C (2) in terms assign the determination of the amount of benefit to which the workman is entitled to receive from the employer and which is capable of being computed in terms of money to such Labour Court as may be specified in this behalf by the appropriate Government. The Labour Court, therefore, as specified by the Government, and not the Industrial Tribunal, has jurisdiction to deal with an application made to it under Section 33C (2) of the Act.

In Vijaya Bank v. Shyamal Kumar Lodh, CIVIL APPEAL Nos. 4211 & 4212 OF 2007 case, the Supreme Court held that a Labour Court constituted under the Industrial Disputes Act, 1947, within the local limits of whose jurisdiction the establishment is situated, has jurisdiction to decide any dispute regarding subsistence allowance. The Court observed that here in the present case undisputedly dispute pertains to subsistence allowance and the Labour Court where the workman had brought the action has been constituted under Section 7 of the Industrial Disputes Act, 1947 and further the appellant bank is situated within the local limits of its jurisdiction.

In State of Maharashtra v. Labour Law Practitioners’ Appeal No. 450 of 1979 case, the Bombay High Court held that the Labour Court adjudicates upon disputes which are essentially of a civil nature. The Labour Court’s functions were held as far back as 1968 to be ‘quasi-civil’ in nature. This must apply to the Industrial Court. The Industrial Court has original jurisdiction under the statue. It is also a principal Court, exercises supervision over the Labour Court and hears Appeals from the decisions of the Labour Courts. Accordingly, a member of the Industrial Court may well be said to be a district judge. The Industrial Court and the Labour Court constitute a hierarchy or system of courts, the latter being inferior to the former. The posts of Labour Court judges would, being thus inferior to the post of the district judge, i.e., the Industrial Court Judge, form part of the judicial service.

Tribunals (Section 7A of the Act):

The appropriate Government may be notification in the Official Gazette, constitute one or more tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second schedule or the Third schedule. A Tribunal shall consist of one person only to be appointed by the appropriate Government. It shall discharge judicial functions, though it is not a court.   It is the duty of the Tribunal to adjudicate upon any industrial dispute. These Tribunals shall perform such other functions as may be assigned to them under this Act.

The Tribunal shall consist of one person only, whom the State Government shall appoint. Any person having one of the following qualifications may be appointed as the Presiding Officer of the Industrial Tribunal, namely:

• if he is, or has been, a judge of a High Court; or
• if he has for a period of not less than three years, been a District Judge or an Additional District Judge.

It is provided by Section 7-A (4) that the Appropriate Government, if it thinks fit, may appoint two persons as assessors to advise the Tribunal in the proceedings before it. The Government is empowered under Section 7-A of the Act of constitute a Tribunal for a limited time or for any particular case as the case may be.

Jurisdiction of Industrial Tribunals:

Section 7 (A)(l) of the Act deals with the jurisdiction of the industrial tribunal. Industrial tribunals have a wider jurisdiction than a Labour Court. It has jurisdiction over any matter specified in Second or Third Schedule. The following matters are specified under the Third schedule:

• 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.
• Nationalization.
• Retrenchment of workmen and closure of establishment, and
• Any other matter that may be prescribed

Duties of a Tribunal:

The duties of a tribunal are the same as those of a Labour Court

In J.K. Iron and Steel Co., Kanpur v. Iron and Steel Mazdoor Union, AIR 1956 SC 231 case, The Court observed that although these Tribunals are invested with many trappings of a Court but do not have the same status as Courts. The Tribunal can consider the conditions of service of the workmen and can vary them if it is found necessary. The fact that a particular condition exists in other similar concerns is no justification if it could not be justified on its own merits.

National Tribunals (Section 7B of the Act):

The Central Government may by notification in the Official Gazette, constitute one or more National Tribunals for the adjudication of industrial disputes which in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one state are likely to be interested in, or affected by such disputes. A national tribunal shall consist of one person only to be appointed by the Central Government. The duties of a National Tribunal are the same as those of as Labour Court or an Industrial Tribunal. [Sec.7B (2)]

National Tribunal are constituted by the Central Government through Official Gazette. These Tribunals are constituted for deciding industrial disputes of National importance. These Tribunals are also constituted to solve the industrial disputes of the industries situated in two or more States,

One person as a Presiding Officer is to be appointed by the Central Government. If it is deemed necessary, the Central Government may appoint two or more persons as assessors to advise and assist the Presiding Officer of one-man Tribunal. No person shall be qualified for appointment as Presiding Officer of a National Tribunal unless he is or has been a Judge of a High Court. Section 7-C further provides that such a presiding officer should be an independent person and must not have attained the age of 65 years

Duties of National Tribunals:

Section 15 of the Act, lays down that where an industrial dispute has been referred by the Central Government to a National Tribunal for adjudication, it shall hold its proceedings expeditiously and shall submit the award to the appropriate Government, as soon as possible. Duties of National Tribunals are the same as Labour Court.

Common Provisions:

Section 7C: Disqualification of Presiding Officer:

According to Section 7-C of the Act, no person shall be appointed to, or continue in the office of the Presiding Officer of a Labour Court, Tribunal or National Tribunal, if –

• He is not an independent person; or
• He has attained the age of sixty-five years.

The moment any person suffers from any disqualification, he shall cease to have authority to act in the office concerned.

Section 8: Filling of Vacancies:

If, for any reason a vacancy (other than a temporary absence) occurs in the office of the presiding officer of a Labour Court, Tribunal or National Tribunal or in the office of the chairman or any other member of a Board or Court, then, in the case of a National Tribunal, the Central Government and in any other case, the appropriate Government, shall appoint another person in accordance with the provisions of this Act to fill the vacancy, and the proceeding may be continued before the Labour Court, Tribunal, National Tribunal, Board or Court, as the case may be, from the stage at which the vacancy is filled.

Section 9: Finality of Orders Constituting Boards, etc.:

(1) No order of the appropriate Government or of the Central Government appointing any person as the chairman or any other member of a Board or Court or as the presiding officer of a Labour Court, Tribunal or National Tribunal shall be called in question in any manner; and no act or proceeding before any Board or Court shall be called in question in any manner on the ground merely of the existence of any vacancy in, or defect in the constitution of, such Board or Court.

(2) No settlement arrived at in the course of a conciliation proceeding shall be invalid by reason only of the fact that such settlement was arrived at after the expiry of the period referred to in sub- section (6) of section 12 or sub- section (5) of section 13, as the case may be.

(3) Where the report of any settlement arrived at in the course of conciliation proceeding before a Board is signed by the chairman and all the other members of the Board, no such settlement shall be invalid by reason only of the casual or unforeseen absence of any of the members (including the chairman) of the Board during any stage of the proceeding.

Conclusion 

The Industrial Disputes Act ensures peace and harmony among all the industrial establishments, and if any conflict arises, the provisions in the Industrial Disputes Act helps in solving the issue in a systematic manner in which all the parties are satisfied and every decision made is fair and just. Different authorities under the Act are works committee, conciliation officer, Board of conciliation, Court of inquiry, Labour Court, Tribunals.