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PROJECT REPORT

LABOUR LAWS

SUBMITTED BY:
VIKRANT SINGH

BA.LLB (H) ROLL NUMBER – 110/16

9TH SEMESTER

SECTION B
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INDEX
TOPIC PAGE NO

INTRODUCTION…3

POWER OF LABOUR COURT…3

DUTIES OF LABOUR COURT…4
PROCEDURE FOLLOWED AND JURISDICTION OF LABOUR COURT..4
SCOPE OF JURISDICTION OF LABOUR COURT…5
POWER OF LABOUR COURT TO GIVE APPROPRIATE RELIEF IN CASE OF
DISCHARGE OR DISMISSAL OF WORKMEN…5
TRANSFER OF PROCEEDINGS BEFORE THE ADJUDICATORY AUTHORITIES BY
THE APPROPRIATE GOVERNMENT…6
LEGAL REPRESENTATION OF THE PARTIES…7
AWARD…8
COMMENCEMENT AND CONCLUSION OF PROCEEDINGS BEFORE LABOUR
COURT…9
PENALTY FOR BREACH OF AWARD..9

NON-DISCLOSURE OF CONFIDENTIAL INFORMATION IN THE AWARD..10

AWARD OF LABOUR COURT SUBJECT TO JUDICIL REVIEW..10

REMOVAL OF DOUBTS AND DIFFICULTIES IN THE AWARDS..11

PAYMENT OF FULL WAGES TO WORKMAN PENDING PROCEEDINGS..11

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INTRODUCTION

To resolve an industrial dispute, the primary three modes are- conciliation, adjudication and
arbitration. All these authorities are empowered under the Industrial Disputes Act, 1947 to resolve
the industrial disputes. There powers, duties, procedure to be followed by them are all laid down
under the Act. Labour Court is one of the authorities to settle the industrial disputes by way of
adjudication.

POWER OF LABOUR COURT

The powers of Labour Court are given under Section 11 of the Act. Following are the powers:

i. To enter the premises

According to Section 11 (2), a member of the Labour Court may enter the premises occupied by
any establishment to which the dispute relates. But such member enters the premises after giving
reasonable notice and for the purpose of inquiry into any existing or apprehended industrial
dispute.

ii. Examination of persons and inspection of documents.

According to Section 11 (3), Labour Court has the same powers as are vested in a Civil Court
under the CPC, 1908, when trying a suit, in respect of following matters, namely:

a) Enforcing the attendance of any person and examining him on oath;

b) Compelling the production of documents and material objects;
c) Issuing commissions for the examination of witnesses;
d) In respect of such other matters as may be prescribed.

Every inquiry or investigation by the Labour Court is deemed to be judicial proceeding within the
meaning of Section 193 and 228 of the IPC.

iii. Appointment of the assessor or assessors

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A Labour Court may if it so thinks fit, appoint one or more persons having special knowledge of
the matter under consideration as assessor or assessors under Section 11(5). The assessor or
assessors advise the Labour Court in the proceedings before it.

DUTIES OF LABOUR COURT

To hold proceedings expeditiously
According to Section 15, the duty of Labour Court is to hold proceedings expeditiously.
Proceedings are held expeditiously for the adjudication of industrial disputes whenever an
industrial dispute is referred to them by the appropriate government. The appropriate government
refers the industrial disputes to the Labour Court under Section 10 of the Act.

PROCEDURE FOLLOWED AND JURISDICTION OF LABOUR COURT

Labour Court are not invested with any inherent power of jurisdiction over any industrial disputes.
They exercise their jurisdiction over an industrial dispute only when the industrial dispute is
referred to them by the appropriate Government under Section 10 of the Act.

i. Jurisdiction of the Labour Court

According to Section 10(1)(c), an appropriate Government may refer the industrial disputes 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.

Following are the matters specified in the Second Schedule of the Industrial Disputes Act, 1947
which are within the jurisdiction of Labour Court.
1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen
wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
6. All matters other than those specified in the Third Schedule.
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SCOPE OF JURISDICTION OF LABOUR COURT

The jurisdiction of Labour Court in dealing with the industrial disputes referred to them s limited
by Section 10 (4) to the points specifically mentioned in the order of reference and matter
incidental thereto. In M/s. India Tourism Corporation, New Delhi v. Delhi Administration, Delhi,1
full bench of Delhi High Court held that:
“It is a settled law that the jurisdiction of the Labour Court in industrial disputes is limited to the
points specifically referred for its adjudication and the matters incidental thereto and it is not
permissible to go beyond the terms of the reference.’

Labour Court is not free to enlarge the scope of the dispute referred to them. The appropriate
government should therefore carefully formulate the points of dispute. Therefore, the points of
reference should be so worded as to avoid ambiguity, prejudice or advantage to one or the other
party to the dispute.

POWER OF LABOUR COURT TO GIVE APPROPRIATE RELIEF IN CASE OF

DISCHARGE OR DISMISSAL OF WORKMEN

Under Section 11A, the Labour Court have been empowered to interfere with the quantum of
punishment if it is of the opinion that the punishment awarded was not proportionate if it is of the
opinion that the punishment awarded was not proportionate to the act of misconduct and that the
punishment awarded was not justified keeping in view the facts of the case. 2

Punishment to be proportionate to the gravity of offence

A workman may be dismissed from the services by the employer for a grave misconduct
committed by him and Labour Court cannot set aside such dismissal and reinstate the workman
under section 11 A of the Industrial Disputes Act, 1947 simply out of sympathy for the workman.
In exercised of power under section 11 A of ID Act, 1947, the Labour Court cannot interfere with

1 1982 Lab IC 1309

2 G. Shashi Kumar v. Management of Indian Industries, 1998 Lab IC 3297
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the quantum of the punishment imposed by the employer unless the punishment is shockingly
disproportionate to the proved charges.3
In Employers Management colliery, Bharat Cooking Coal Ltd v. Bihar Colliery Kamgar Union, 4
the SC has clearly laid down that if the Labour Court decides to interfere with the punishment, it
should bear in mind the principle of proportionality between gravity of the offence and the
stringency of the punishment.

Reinstatement: Not on sympathetic ground

In State Transport Commissioner, Haryana, Chandigarh v. Sukhbir Singh, 5 the Punjab and
Haryana High Court aptly holds as follows:
We are of the considered opinion that the Labour Court should not misdirect itself in exercising
the discretionary powers under Section 11A to reinstate a dishonest workman into service. Such
misplaced sympathy would do much more harm to the morale of the general public and the honest
workers than any conceivable good it may do to the workman reinstated. The interest of the public
must take precedence over the interest of the individual workman.

TRANSFER OF PROCEEDINGS BEFORE THE ADJUDICATORY AUTHORITIES BY

THE APPROPRIATE GOVERNMENT
According to Section 33B, the appropriate government may withdraw any proceeding pending
before a Labour Court and transfer the same to another Labour Court for the disposal of the
proceedings. In case of withdrawal and transfer of proceedings, the appropriate government gives
order in writing which contains the reasons for such transfer of the proceedings. The Labour Court
to which the proceeding is transferred under Section 33B may, subject to special directions in the
order of transfer, proceed either de novo i.e from the beginning or from the stage at which it was
so transferred.
The parties to the dispute are bound by the award given by the Labour Court to which the
proceedings are transferred.
3 Gujarat Ambuja Cement Pvt Ltd v. UB Gandhe, 2006 Lab IC 502
4 2005 I LLJ 1135 SC
5 2005 I LLJ 1135 SC
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LEGAL REPRESENTATION OF THE PARTIES

According to Section 36 (4), a party to a dispute may be represented by a legal practitioner in any
proceeding before a Labour Court. However, the legal representation must be with the consent of
the other parties to the proceeding and with the leave of Labour Court.
A party to a dispute before the Labour Court can be represented by a legal representative if both
the following conditions are satisfied;
i. The consent to legal representation by the opposite party, and
ii. The Labour Court grants leave for such representation.

The bar to be represented by a legal practitioner except with the consent of the opposite party and
the leave of the Court under Section 36 (4) has been introduced with a view to prevent the parties
from raising technical pleas which naturally impedes the smooth and speedy settlement. 6

AWARD
Section 2(b) defines ‘award’ as follows:
It means an interim or final determination of any Industrial Dispute of any question thereto by any
Labour Court and includes an arbitration award made under Section 10A.

TIME PERIOD FOR SUBMISSION OF AWARDS

According to Section 10 (2A), Labour Court submits its award within the time period specified by
the appropriate government in the order of reference. It further provides that where such industrial
dispute is connected with an individual workman, no such period shall exceed three months.

EXTENSION OF TIME FOR SUBMISSION OF AWARD

According to Section 10 (2A), where the parties to an industrial dispute apply in a prescribed
manner, whether jointly or separately to the Labour Court for extension of such period or for any
other reason, and the presiding officer of such Labour Court 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.

6 Project Director, Agriculture and Soil Survey v. Surendra Singh, 1998 Lab IC 2983
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Computation of time period

According to Section 10 (2A), in computing any period specified for the submission of award, for
which the proceedings before the Labour Court had been stayed by any injunction or order of a
Civil Court shall be excluded. No proceedings before a Labour Court lapses merely on the ground
that any period specified under Section 10 (2A) had expired without such proceedings being
completed.

FORM OF AWARD
As per Section 16 (2), the award of a Labour Court must be n writing and must be signed by its
presiding officer.

PUBLICATION OF AWARD
As per Section 17 (1), every award of a Labour Court shall, within a period of thirty days from the
date of its receipt by the appropriate Government be published in such manner as the appropriate
government thinks fit.
Under Section 17(2), subject to the provisions of section 17A, the award published under sub
section 1 of Section 17 shall be final and shall not be called in question by any Court in any manner
whatsoever.

COMMENCEMENT OF THE AWARD

According to section 17A (1), an award becomes enforceable on the expiry of 30 days from the
date of its publication under Section 17.

The appropriate government or the central government as the case may be, by notification in th
official gazette, declare that the award shall not become enforceable on the expiry of the period of
30 days:
i. If the appropriate government is of opinion, in any case where the award has been given by a
Labour Court in relation to an industrial dispute to which it is a party; or
ii. If the central government is of opinion, in any case where the award has been given by a National
Tribunal,
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That it will be inexpedient on public grounds affecting national economy or social justice to give
effect to the whole or any part of the award.
Where any such declaration has been made in relation to an award under the provision of Section
17A (1) the appropriate government or the central government may, within ninety days from the
date of publication of the award under Section 17, make an order rejecting or modifying the award,
and shall, on the first available opportunity.

COMMENCEMENT AND CONCLUSION OF PROCEEDINGS BEFORE LABOUR

COURT
As per Section 20(3), proceedings before Labour Court are deemed to have commenced on the
date the dispute is referred by the appropriate government for adjudication. Section 20(3) further
provides that the proceedings before Labour Court is deemed to have concluded on the date on
which the award becomes enforceable under Section 17-A of the Act.

PENALTY FOR BREACH OF AWARD

According to section 29, any person who commits a breach of any term of any settlement or award,
which is binding on him under this Act, is punishable:

i. with imprisonment for a term which may extend to six months, or

ii. with fine, or
iii. with both imprisonment and fine

When the breach is a continuing one, then the person is punishable with a further fine which may
extend to Rs. 200/- for everyday during which the breach continues after the conviction for the
first.

Section 29 further provides that the Court trying the offender if it fines the offender, may direct
that the whole or any part of the fine realized from him shall be paid, by way of compensation to
any person who, in the opinion of the Court has been injured by such breach.

NON-DISCLOSURE OF CONFIDENTIAL INFORMATION IN THE AWARD

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A trade union, person, firm or company may request in writing to the authorities under the Act to
whom they give evidence of certain confidential information during the investigation or inquiry,
that such confidential information must not be disclosed. According to Section 21, upon receiving
such written request, the authorities cannot include such confidential information in their report or
award.

PENALTY FOR DISCLOSING CONFIDENTAL INFORMATION

As per Section 30, any person who willfully discloses any such information as is referred to in
Section 21 in contravention of section 21, on complaint made by or on behalf of the Trade Union
or individual business affected, be punishable with:

i. with imprisonment for a term which may extend to six months, or

ii. with fine, or
iii. with both imprisonment and fine

AWARD OF LABOUR COURT SUBJECT TO JUDICIL REVIEW

The High Court exercises the power of writ jurisdiction under Article 226 and power of
superintendence under Article 227 of the Indian Constitution. The High Court exercises the power
of writ jurisdiction and supervision over all the lower courts and tribunals within its jurisdiction.

In Hindustan Lever Ltd v. BN Dongre,7 the Court held that the decision of Labour Court under the
Industrial Disputes Act would be subject to review by the High Court under Article 226 and 227
of the Constitution. It further observed that where both the employer and the Unions representing
the workers were aggrieved by the award, to the extent, it went against them, they can prefer writ
petition against the award of the Labour Court to the High Court under Article 226.

REMOVAL OF DOUBTS AND DIFFICULTIES IN THE AWARDS

If in the opinion of the appropriate government, any difficulty or doubt arises as to the
interpretation of any provision of an award or settlement, it may refer the question to such Labour

7 AIR 1995 SC 817

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Court as it may think fit under Section 36A (1). The Labour Court to which such question is
referred gives the opportunity to be heard to the parties to the dispute with respect to which the
award has been given. After giving the parties an opportunity of being heard, the Labour Court
decides such question and removes difficulty or doubt as to the interpretation of any provision of
an award or settlement. Such decision becomes final and binding on all the parties under Section
36A (2).

PAYMENT OF FULL WAGES TO WORKMAN PENDING PROCEEDINGS

Section 17B intends to protect the workman from economic hardship which he may face when his
employer prefers any proceedings in a High Court or Supreme Court against an award of Labour
Court which reinstates the workman. It provides for payment of wages to the workman during the
pendency of proceedings in the higher court if:

i. the workman had not been employed during such period, and
ii. an affidavit by the workman had been filed to that effect in such Court.

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BIBLIOGRAPHY:

India, Kirpa Dayal Srivastava; Commentaries on Industrial Disputes Act, 1947, Act no. XIV of
1947; Eastern Book Co., 1960

P. R. Bagri; Law of industrial disputes: commentary on the Industrial Disputes Act, 1947; Eastern
Law House, 1972

Om Prakash Malhotra; The Industrial disputes act, 1947; N. M. Tripathi, 1973

S.C. Srivastava; Industrial Relations and Labour Laws, 6th Edition; Vikas Publishing House, 1990

Meenu Paul; Labour and Industrial Law,