Industrial Disputes Act, 1947, is a key piece of legislation aimed at regulating industrial relations in India. It provides mechanisms for the resolution of industrial disputes through conciliation, arbitration, and adjudication. Section 10 of the Act lays down the provisions for the reference of disputes to various forums, including Boards, Courts, and Tribunals, ensuring an effective process to address industrial grievances.
Legal Framework of Reference
Section 10(1): Reference by Appropriate Government
Under Section 10(1), if the appropriate Government (Central or State) is of the opinion that an industrial dispute exists or is apprehended, it may, at any time, refer the matter to:
Boards of Conciliation: For promoting settlement.Courts of Inquiry: For investigating the matter.Labour Courts: For adjudication of matters specified in the Second Schedule of the Act.Industrial Tribunals: For adjudicating disputes covered under the Second and Third Schedules.National Tribunals: For disputes involving questions of national importance or affecting industrial establishments across multiple states.
Key Provisions:
The reference is made through a written order.The Government has discretionary powers but must act judiciously and within the scope of the Act.
Amendments:
The 1952 and 1956 amendments significantly restructured the process of referring disputes to appropriate adjudicatory bodies, providing a broader scope for intervention.
Types of References
1. Boards of Conciliation [Section 10(1)(a)]
The primary function of a Board of Conciliation is to promote amicable settlements. The Board serves as an intermediary and works to prevent the escalation of disputes into strikes or lockouts.
2. Courts of Inquiry [Section 10(1)(b)]
Courts of Inquiry are constituted to investigate the causes of disputes and present factual findings. They do not have adjudicatory powers but play a significant role in shedding light on underlying issues.
3. Labour Courts [Section 10(1)(c)]
Labour Courts address matters specified in the Second Schedule of the Act, such as:
Disciplinary actions.Retrenchment.Payment of wages.
4. Industrial Tribunals (Section 10(1)(d))
Industrial Tribunals deal with broader issues listed in the Second and Third Schedules, such as:
Bonus payments.Working hours.Service conditions.
5. National Tribunals (Section 10(1-A))
National Tribunals handle disputes that:
Involve questions of national importance.Affect industrial establishments in more than one state.
Key Conditions for Reference
Provisos to Section 10(1):
Public Utility Services: In cases related to public utility services, the Government must refer the dispute unless the notice is deemed frivolous or vexatious.Workmen Threshold: For disputes involving less than 100 workmen, the Government may refer the matter to a Labour Court instead of a Tribunal.Central Government Jurisdiction: Disputes under the Central Government’s jurisdiction can be referred to state-constituted Labour Courts or Tribunals.
Section 10(1-A): Reference to National Tribunal
The Central Government has the power to refer disputes of national importance to a National Tribunal, even if it is not the appropriate Government.
Party-Initiated References
Section 10(2): Reference on Application by Parties
Where the parties to an industrial dispute apply for reference in the prescribed manner, the Government, upon satisfaction that the applicants represent the majority, must refer the matter. This provision ensures that parties retain agency in the resolution process.
Section 10(2-A): Time Frame for Awards
Orders referring disputes to Labour Courts, Tribunals, or National Tribunals must specify a timeline for submitting awards:
Typically within three months for disputes involving individual workmen.Extensions can be granted if deemed necessary by the presiding officer.Stay orders from civil courts are excluded from the timeline.
Prohibition of Strikes and Lockouts [Section 10(3)]
When a dispute is referred to a Board, Labour Court, or Tribunal, the appropriate Government may prohibit strikes or lockouts concerning the matter under dispute. This provision safeguards industrial peace during the adjudication process.
Scope of Adjudication [Section 10(4)]
Adjudicatory bodies must confine their jurisdiction to the issues explicitly referred to them by the Government. Incidental matters connected to the referred issues may also be adjudicated.
Expansion of References [Section 10(5)]
The Government can include additional establishments or classes of establishments in a reference if it believes they may be affected by the dispute. This provision ensures comprehensive resolution and prevents fragmentary adjudication.
Exclusivity of Jurisdiction [Section 10(6)]
When a matter is referred to a National Tribunal, no Labour Court or Tribunal can adjudicate the same issue. Any ongoing proceedings are deemed quashed to avoid conflicting rulings. The Central Government assumes exclusive jurisdiction for such disputes.
Continuation of Proceedings [Section 10(8)]
The death of a party to the dispute does not result in the lapse of proceedings. This ensures continuity and avoids unnecessary delays in resolving industrial disputes.
Judicial Interpretation
[1] State of Bombay v. K.P. Krishnan (1960)
The Supreme Court clarified that the Government’s discretion under Section 10 must be exercised judiciously.
[2] Karnal Leather Karamchari v. Liberty Footwear Company (1990)
The Court held that voluntary arbitration forms a crucial part of the justice delivery system in industrial adjudication. An arbitrator, functioning as a quasi-judicial authority, falls within the framework of statutory tribunals. When a dispute is referred to arbitration, it is essential to ensure that workers are informed about the nature of the dispute, the identity of the arbitrator, and the issues being arbitrated, as the arbitrator’s award will be binding on them. Transparency and awareness among workers are vital for fair and effective arbitration.
References
[1] Industrial Disputes Act,1947
[2] SN Mishra, Labour & Industrial Laws (30th Edition, 2024)
[3] State of Bombay v. K.P. Krishnan, AIR 1960 SC1223
[4] Karnal Leather Karamchari v. Liberty Footwear Company (Regd.) & Ors., 1990 AIR 247
