Project
LABOUR LAW
On
Efficiency of Adjudication Machineries under Industrial Dispute Act,
1947
Submitted To:
Dr. Balwinder Kaur
Faculty of Labour Law
Submitted By:
Ribhav Agrawal
Roll No.:114
Semester IV – C
Date of Submission:
28th MARCH, 2021
HIDAYATULLAH NATIONAL LAW UNIVERSITY
UPARWARA POST, ABHANPUR, ATAL NAGAR, RAIPUR (C.G)-492002
DECLARATION
“I, Ribhav Agrawal, conducted researched on the particular topic of Efficiency of
Adjudication Machineries under Industrial Dispute Act, 1947 I declare that this project
work is assembled solely for academic requirements and is the result of my study and
preparations under the able guidance and supervision of Dr. Balwinder Kaur, Assistant
Professor, Faculty of Labour Law, Hidayatullah National Law University, Raipur.”
Name: Ribhav Agrawal
Semester: IV-C
Roll Number: 114
I
CERTIFICATE
“This is to attest that Mr. Ribhav Agrawal, Roll Number 114, student of Semester IV,
Section-C of B.A.LL. B (Hons), Hidayatullah National Law University, New Raipur
(Chhattisgarh), has completed the research study on the topic titled Efficiency of
Adjudication Machineries under Industrial Dispute Act, 1947 within my monitoring and
guidance. The research project is ready for review and submission.”
Date:28/03/21
Dr.Balwinder Kaur
(Faculty of LABOUR LAW)
II
Contents
DECLARATION ..................................................................................................................................... I
CERTIFICATE ....................................................................................................................................... II
INTRODUCTION .................................................................................................................................. 1
RESEARCH METHODOLOGY ............................................................................................................ 1
PROBLEM OF THE STUDY................................................................................................................. 1
RATIONALE OF THE STUDY ............................................................................................................ 1
OBJECTIVES OF THE STUDY ............................................................................................................ 2
RESEARCH DESIGN ............................................................................................................................ 2
NATURE OF THE STUDY ................................................................................................................... 2
CHAPTERISATION OF THE STUDY ................................................................................................. 2
TIME DURATION OF THE STUDY .................................................................................................... 3
LIMITATION OF THE STUDY ............................................................................................................ 3
CHAPTER: 1 INDUSTRIAL DISPUTES ACT, 1947 ........................................................................... 4
CHAPTER: 2 ADJUDICATION AND PRINCIPLES OF LABOUR ADJUDICATION ..................... 5
CHAPTER:3 ADJUDICATION MACHINERIES UNDER INDUSTRIAL DISPUTES ACT, 1947 .. 6
CHAPTER: 4 PERFORMANCES, NATURE & EFFICIENCY OF THE ADJUDICATORY
MACHINERIES ..................................................................................................................................... 9
CONCLUSION ..................................................................................................................................... 10
BIBLIOGRAPHY ................................................................................................................................. 11
III
INTRODUCTION
Though the notion of labour has existed in India since the code of Hamurabi was written in
2250 B.C., its significance was only realised after the industrialization and the growth of
communism. There has arisen a scenario in which labour rights are being defended against
the powerful employer community. As word of this realisation spread among the laborers, a
series of disputes arose among management and labour, resulting in new laws. “The
Industrial Disputes Act,1947, was enacted with the goal of resolving industrial disputes in a
peaceful and stable manner, and it was derived from Rule 81-A of the Defence of India
Rules,1939.”
The Act establishes a number of organizations for the sake of resolving industrial disputes,
each with specific powers and responsibilities. For the purposes of comprehension, the
authorities have been split into adjudicatory and non-adjudicatory bodies, and their
mechanisms are also described in this project.
RESEARCH METHODOLOGY
PROBLEM OF THE STUDY
The project report reflects, on the definitions, meaning, and laws contained in the Industrial
Dispute Act particularly in India. The chapters of this project report describe the basic
principles and procedures about how the adjudicatory machineries work, as well as laws and
cases involving Industrial Dispute in India.
RATIONALE OF THE STUDY
In discussing the notion we must first understand what Industrial Dispute is and the laws
governing Industrial Dispute in India. An overall critical analysis of the efficiency of labour
courts and tribunals.
1
OBJECTIVES OF THE STUDY
The study has been conducted to achieve understated objectives
To understand the meaning and definition of Industrial Dispute.
To study the procedure and laws contained in Industrial Disputes Act.
To study the functioning of adjudicatory machineries under Industrial dispute Act.
RESEARCH DESIGN
NATURE OF THE STUDY
Non-empirical research technique has been adopted in this project since the content consists
primarily of previously completed work by others. The project is primarily a doctrinal one.
Wherever citations are required, they are included.
SOURCES OF THE STUDY
This Project is made on the basis of secondary sources of information, which include:
1) Books, and
2) Information from the internet.
CHAPTERISATION OF THE STUDY
CH1 - INDUSTRIAL DISPUTES ACT, 1947– This chapter analyses the definition of
Industrial Disputes according to the Act and also focuses on the purpose of the Act.
CH2 - ADJUDICATION AND PRINCIPLES OF LABOUR ADJUDICATION – This
deal with the principles of labor adjudication in India.
CH3 - ADJUDICATION MACHINERIES UNDER INDUSTRIAL DISPUTES ACT,
1947– This talk about the different Adjudication machineries under the Act and their impact
in India.
2
CH4 - PERFORMANCES, NATURE & EFFICIENCY OF THE ADJUDICATORY
MACHINERIES - This talk about the nature and also how efficient different Adjudication
machineries under the Act are in India.
TIME DURATION OF THE STUDY
This study has been conducted for academic purposes and has been analysed, recorded
and compiled in a time period of 10 days.
LIMITATION OF THE STUDY
The scope of the study has been limited to the study of the Adjudication machineries. This
project provides the importance of labour courts and tribunals. No geographical limitation is
applied in the research of this project.
3
CHAPTER: 1 INDUSTRIAL DISPUTES ACT, 1947
The Industrial Disputes Act of 1947 spans to the complete of India and governs Indian labour
law in terms of trade unions. It took effect on April 1, 1947. The Industrial Disputes Act's
goal is to maintain industrial peace and prosperity by establishing equipment and procedures
for investigating and resolving industrial disputes through negotiations.
Just the organized sector is covered by the legislation. Layoffs, retrenchments, and closures
must be approved by the government under Chapter V-B, which was added to the law in
1976 as a result of an amendment. A subsequent amendment in 1982 (which went into effect
in 1984) broadened its scope by lowering the minimum to 100 employees.
The Industrial Disputes Act describes an "industrial dispute" as a disagreement or conflict
between employees and their employers, or between employees and their coworkers, over
employment or non-employment, employment terms, or working circumstances An
individual worker's dismissal is considered an industrial dispute.
The ID Act establishes the Working Committee, which is made up of employers and
employees, to encourage measures aimed at guaranteeing and maintaining solidarity and
better relations between both the employer and the employees, and to settle any substantial
differences of interest in such issues.
For the purpose of resolving disputes, the ID Act establishes Conciliation Officers, Boards of
Conciliation, Courts of Inquiry, Labour Courts, Tribunals, and National Tribunals.
Arbitration is another well-known approach for resolving disagreements. The Industrial
Disputes Act establishes a legal framework for resolving conflicts. The goal of the Act's
preventive machinery is to establish an atmosphere in which conflicts do not occur at all.
Strikes and lockouts are examples of unfair labour practises prohibited by the ID Act, which
are specified in the Fifth Schedule (except under certain defined conditions and with proper
notice). It also includes clauses for unlawful strikes, lockouts, and unlawful labour practises
as well as regulations for layoffs and retrenchments, and also the compensation that must be
paid. The Act also provides for the granting of damages to workers in the event of a plant
4
closure, layoff, or retrenchment. The process for obtaining prior approval from the
appropriate government for layoffs, retrenchments, or the closure of industrial
establishments.
CHAPTER: 2 ADJUDICATION AND PRINCIPLES OF LABOUR ADJUDICATION
What is Adjudication?
Adjudication refers to the obligatory resolution of Industrial Disputes by labour courts,
Industrial Tribunals, or National Tribunals established underneath the Act, or by any other
similar authorities established under similar state laws. The final remedy for an unresolved
dispute is for the competent government to address it to the adjudicatory mechanism for
resolution.1 The adjudicatory body settles the Industrial Dispute referred to it by issuing an
award that is obligatory on all parties involved.
“There is no allowance for appeal against these awards; they can only be contested by
manner of writ under Articles 226 and 227 of the Indian Constitution before the appropriate
High Court, or by manner of special leave under Article 136 of the Indian Constitution before
the Supreme Court, both of which have superintending jurisdiction. Rule 81-A of the Defense
of India Rules established the principle of compulsory adjudication in India.”2 Despite the
fact that it was repealed, it is still included in the ID Act. The primary goal of the
organization is to foster industrial peace.
Adjudicatory Bodies in India
“Labor Courts, Industrial Tribunals, and National Tribunals are the three types of tribunals.”
On the advice of conciliation officers, conflicts are usually addressed to the relevant
government. These organizations are usually in charge of dealing with appeals from the
conciliation authorities. Because India's trade unions are weak, the adjudication system has
been made mandatory. It addresses issues such as wages, working hours, holidays, and safe
working conditions, among others.
General Principles of Labor Adjudication
1
P.R.N.Sinha et al., Industrial Relations, Trade Unions, and Labour Legislation, 393 (4th Edition, 2015),
Dorling Kindersley (India) Pvt Ltd., Delhi.
2
ibid
5
The following are the general rules for labor adjudication:
i) In Delhi cloth general mills v. their workmen3, it was held that “the adjudicatory bodies
cannot go outside the spectrum of the discussed issue;”
ii) The discoveries must be solely founded on the relevant and tangible facts established in
the case.4 “A tribunal's jurisdiction cannot be avoided or relinquished.”5
iii) As held in Glaxo Laboratories Ltd. v. Labour Court Guntur6, tribunals are not obliged
to rule on whether employers consider giving up their claim.
iv) As held in Sindri Cement Factory Union v. Dass7, “the government has no power to
remove the labour courts' jurisdiction while the case is pending.”
v) As held in Indian General Navigation Railway Co. v. Workmen8, “the laws of res
judicata and estoppel do not have to be extended to industrial adjudication.”
vi) Under sec.11 A, the adjudicatory machineries have certain implicit power (inserted by
1971 amendment). In Punjab National bank v. workmen9 it was stated that the labour
courts t will cope with industrial disputes over worker termination or discharge as long as
they stick to the relevant documents and don't go further than that. Natural justice principles
must be followed to the letter.
CHAPTER:3 ADJUDICATION MACHINERIES UNDER INDUSTRIAL DISPUTES
ACT, 1947
Labour Courts
One or more labour courts may be established by the appropriate government under section
7(1). “It comprises only of one individual who is nominated by the relevant authority as a
presiding officer of the labour court.
3
(1967) II LLJ 523 (SC)
4
Workmen of Dahingeapara tea estate v. Dahingeapara tea estate, AIR 1958 SC 1026
5
Oil India ltd. v. G.N.Borah and others, 1977 Lab IC 1610 (Cal)
6
1977 Lab IC 1523 AP
7
Lab IC 1801 (Pat)
8
(1957) 1 LLJ 226 (SC)
9
AIR 1960 SC 160
6
Who has been the judge of the High court or has been a district judge or additional
district judge for a period of not less than 3 years.
Or has held judicial office in India for not less than 7 years or has been the presiding
officer of the labour court for not less than 5 years.
Or is an officer of Indian Legal Service in Grade III with three years' experience in
the grade.”10
Has served as a Deputy Chief Labour Commissioner (Central) or Joint Commissioner
of the State Labour Department, with a law degree and at least seven years of
expertise in the labour department, which include three years as a Conciliation
Officer, after obtaining a law degree.
He may remain in office under Section 7(3) of the Act if he is an independent individual11
and had also not reached the age of sixty-five years, or he will be ineligible under Section 7-
C. In Working Journalists,Hindu v. The Hindu12, it was stated that the court's authority
begins when the competent authority refers the conflict to it under section 10. The terms of
the order of matter referred to the labour court cannot be stretched by the parties' act once it
has been confiscated of its authority.
Functions of Labour Court
The labour court is responsible for deciding on industrial disputes listed in the act's second
schedule, such as
The propriety or validity of any order issued by an employer under Standing Orders.
The use of Standing Orders to comprehend them.
Worker discharge or termination, comprising of reconsideration and other reliefs
All matters which are not specifically mentioned in the third schedule.
And undertake any other duties provided to it by ID Act, such as voluntary reference under
sec 10(2), arbitration reference under sec 10(A) (iii), authorization of a discharge action
under sec 33, grievances of enraged workers under sec 33A, applications under sec 33-C (2),
and reference of compensation and settlements under sec 36-A.
10
ibid
11
Sec.2(i) of ID Act, the concerned person should have no connection with the dispute referred.
12
(1961) 1 LLJ 282 (Mad).
7
In Haryana State Cooperative Land Development Bank v. Neelam13, a typist who had
been hired on an ad-hoc ground and was fired after 17 months appealed to the labour court
for compensation after 7 years. The typist was refused any compensation by the labour court,
and the Supreme Court affirmed the decision, saying that the time span is important to
consider. Under Art.226/227, appeals from labour courts usually go to the High Court.
Industrial Tribunals and National Tribunals
For the sake of adjudication of industrial disputes, the competent authority may establish one
or even more Industrial Tribunals (sec.7A) and National Industrial Tribunals (sec.7B). The
1956 amendment added these clauses.
The court's jurisdiction begins when the competent authority refers the conflict to it under
section 10(1) (d). The authority persists until an implementable award is made. They have all
of the privileges of a civil court, including the ability to designate two assessors to assist with
the trials.
Prior to the 1956 amendment, labour court complaints were directed to the state tribunal and
then to the central tribunal, which was controlled by the Industrial Disputes (Appellate
Tribunal) Act, 1950. However, with the addition of sections 7A and 7B to the ID Act,
tribunals have been denied appellate jurisdiction.
The court held in Lipton Ltd v. Workmen14 that the Tribunals' jurisdiction is based on the
parties' residence within the jurisdiction and the subject matter must significantly emerge
from that region. The tribunals have the authority to decide on the issues listed in the second
and third schedules, as well as any other matters assigned to them.15
Functions of Industrial Tribunals
The Industrial Tribunals are responsible for some of the following issues listed in the third
schedule:
Wages, including the period and mode of payment.
Allowances for compensation and other reasons.
13
(2005) 1 LLJ 1153 (SC)
14
(1959) 1 LLJ 431 (SC)
15
See generally Dr.H.K.Saharay, Labour and Industrial law, 154(6th Edition, 2015) Universal law publishing
co., New Delhi.
8
Work hours and rest periods.
Earnings and vacation time are included in the leave package.
Bonuses, profit-sharing, provident funds, and gratuities
Shift work that is not in accordance with established procedures.
CHAPTER: 4 PERFORMANCES, NATURE & EFFICIENCY OF THE
ADJUDICATORY MACHINERIES
Labor courts and tribunals are required by section 15 of the Industrial Disputes Act to
conduct their hearings quickly and to send the award to the central authority within the period
specified in the order of reference and during the time specified in section 10(2A). In Union
of India v. T.R.Verma16, the Supreme Court ruled that “Notices, summons, hearings, and
inspection procedures are outlined in Rules 9 to 30 of the Industrial Disputes (Central) Rules,
1957, in which the enforcement of the Code of Civil Procedure is somewhat restricted. And,
within the Indian Evidence Act, these adjudicatory bodies are not required to exclusively
apply the laws of evidence.”
The distinction among ordinary courts of law and these adjudicatory bodies is that in the
former, there are pre-existing rules that apply to the relevant cases, while in the latter, there
are none.17
They are largely quasi-judicial in character and are governed by natural justice principles
with the exception of the purposes of sections 193 and 228 of the Indian Penal Code, yet they
are civil in character except for the reasons of sections 480 and 482 of the Criminal Procedure
Code. In contrast to the inquisitorial system, the tribunals use an adversary system.
In Graphite India Ltd. v. State of West Bengal,18 the Enquiry Officer found the respondent
liable of wrongdoing based solely on the proof of one party. The High Court ruled that the
departmental investigation did not follow natural justice principles (audi-alteram partem), and
the accusation was declared invalid.
The authority of adjudicatory machineries have also been expanded under sec.11A, which
gives the authorities the authority to determine on the appropriateness of punishment or to
16
AIR 1957 SC 832
17
K.M.Pillai, Labour and Industrial Laws, 104(16th Edition,2015), Allahabad Law Agency, Faridabad
18
1979 Lab IC 1279 (Cal)
9
issue any re-instatement order. According to the adjudication paragraph, the appeal refers to
the High Court or Supreme Court.19
The number of complaints and petitions dealt of under Sections 33A and 33C of the Act that
were sent to tribunals and labour courts has decreased from 19.14 % in 2009-10 to 9.83 % in
2018-19.
At the national level, a little more than a third of all lawsuits (35.24 percent) are already
lingering for more than a year in the Labour Courts and Industrial Tribunals, with 37% of
them remaining for even more than three years. In Jharkhand, though, 90% of the lawsuits
have been unresolved for even more than three years. Maharashtra and Karnataka do better,
with just 28-29 percent of the total proceedings remaining for further than 3 years.
This results in a number of shortfalls in the negotiation and adjudication phase. Because of
power imbalances, workers will hire well-trained Industrial Relations and Human Resource
administrators, as well as lawyers, while employees will depend on outsiders such as trade
union leaders at most. In addition, excessive disruption caused by adjournments and a
"confidence deficit" smears a company's or system's labour relations.
CONCLUSION
Any conflict or disagreement among employers and staff, employers and workers, or workers
and workers that is related to employment or non-employment, terms of employment, or
working circumstances of any individual is referred to as an industrial dispute. The I.D. Act's
Second Schedule deals with issues that come into the classification of Rights Disputes that
come under the authority of Labour Courts.
The institutional structure for industrial dispute resolution must accomplish two goals:
enhancing bi-partism and providing convenient, affordable, and prompt adjudicatory
platforms and procedures for social groups. This is what policymakers predicted in the 1950s,
and it still holds true in 2021.
19
supra p.11
10
BIBLIOGRAPHY
BOOKS
INDUSTRIAL DISPUTE ACT, 1947, BARE ACT.
LABOUR LAW by S.N.MISHRA.
WEBSITES
https://www.theleaflet.in/why-labour-law-reforms-must-focus-on-efficient-justice-
delivery-mechanisms-for-ease-of-doing-business/#
https://www.mondaq.com/india/employee-rights-labour-relations/625206/labor-laws-
in-india--indian-industrial-disputes-act-1947
http://www.legalservicesindia.com/article/1909/Tribunalization-of-Justice.html
https://thewire.in/law/india-national-tribunals-commission
https://www.sciencedirect.com/science/article/abs/pii/S0161893820300909#:~:text=L
ess%20than%2030%25%20of%20the,ranging%20from%2070%20to%2079%25.
https://prsindia.org/billtrack/overview-of-labour-law-reforms
https://icrier.org/pdf/Working_Paper_298.pdf
11
