UNIVERSITY INSTITUTE OF LEGAL STUDIES

PANJAB UNIVERSITY

PROJECT WORK IN THE SUBJECT OF LABOUR LAWS

CONCILIATORY AUTHORITIES UNDER THE

INDUSTRAIL DISPUTES ACT, 1947

Submitted to- Submitted by-

Mr. Meenal Garg Prikshit Thakur

UILS Roll no.272/19
Panjab University Section- E
9th Semester

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 Acknowledgement

I would like to express my special thanks of gratitude to my teacher Mr. Meenal

Garg who gave me the golden opportunity to do this wonderful project on the
topic (Conciliatory Authorities under the Industrial Disputes Act), which also
helped me in doing a lot of Research and enhanced my knowledge in the subject
Secondly i would also like to thank my parents and friends who helped me a lot
in finalizing this project within the limited time frame.

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 Table of Contents

Sr no. Content Page n0.

1. Introduction 4
2. Conciliatory authorities under the act
works committee 5
conciliation officer 6
Board of conciliation 8
Court of inquiry 9
3. Powers 10
4. bibliography 12

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 Introduction

The history of exploitation of labour is as old as the history of civilization itself. There
has been an ongoing struggle by labourers and their organizations against such
exploitation, but it continues in one form or the other. Prior to the year 1947, industrial
disputes were being settled under the provisions of the Trade Disputes Act, 1929. The
Experience of the working of the 1929 Act revealed various defects, which needed to
be overcome by a fresh legislation. Accordingly, the Industrial Disputes Bill was
introduced in the Legislature. The Bill was referred to the select committee. On the
recommendations of the Select Committee amendments were made in the original
Bill. The Industrial Disputes Bill having been passed by the Legislature received its
assent on 11th March, 1947. It came into force on first day of April, 1947 as THE
INDUSTRIAL DISPUTES ACT, 1947 (14 of 1947). It was enacted to make
provisions for investigation and settlement of industrial disputes and for providing
certain safeguards to the workers. The Act contains 40 sections divided into 7
chapters. When an industrial dispute occurs, both the parties, that is the management
and the workmen, try to pressurize each other. The management may resort to
lockouts while the workers may resort to strikes, picketing or gheraos. The Industrial
Disputes Act, 1947 is an important legislation in the direction of attaining fair
treatment of labour and industrial peace.

 Definition of Industrial Dispute –

Industrial dispute implies any distinction of conclusion, contest, injury between the
business and the representatives, or between the laborers and bosses, or between the
labourers or workers itself which is all concerned with the work or non-business terms
or terms of business dependent on the terms of state of work of any person.1

 Objectives of the Industrial Disputes Act, 19472

1
Section 2(k)
2
For Statement of Objects and Reasons see Gazette of India 1946, Pt. V. pp. 239-240; are report of select
Committee, se ibid, 1947 Pt. V. pp. 33-35.

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The act was drafted to make provision for the investigation and settlement of
industrial disputes and to secure industrial peace and harmony by providing
mechanism and procedure for the investigation and settlement of industrial disputes
by conciliation, arbitration and adjudication which is provided under the statute.This
Act was passed was with a key objective of “Maintenance of Peaceful work culture in
the Industry in India” which are mentioned under the Statement of Objects & Reasons
of the statute.

The Act also lays down:

1. The provision for payment of compensation to the workman on account of

closure or lay off or retrenchment.

2. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments

3. The actions to be taken against unfair labour practices on part of an employer

or a trade union or workers.

Conciliation meaning

Conciliation is a method of discussions or negotiation through which the parties to

the dispute voluntarily reach amicable settlement acceptable by both parties. The
discussions and negotiations between the parties may be initiated by the parties
themselves or with the efforts of third party neutral to the dispute. This third
neutral party acts like a mediator who mediates in and promotes the settlement of
the dispute. The characteristic feature of conciliation is this that the parties to the
dispute come to a settlement voluntarily and not under any compulsion or coercion
exercised either by the mediator or by any other person.

The utility of conciliation as a method of settlement in industrial disputes lies in

the fact that conciliation preserves amity and good relations between the employer
and the workmen as conciliation is an out of court settlement of the dispute.

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 Conciliatory Authorities under act

There are various authorities under the act such as the

 works committee,
 conciliation officer,
 conciliation board,
1. Works Committee (Section 3)

this has been defined under section 3 of the act which says that each industrial
establishment should have a works committee and the works committee will have
equal representations from both the employer and the employee. It is to try to settle
the dispute in the first instance through the process of mediation in the initial stage of
the dispute. The works committee also time to time comments upon the matters in
dispute. It shall be the duty of the Works Committee to promote measures for securing
and preserving amity and good relations between the employer and workmen and, to
that end, to comment upon matters of their common interest or concern and endeavour
to compose any material difference of opinion in respect of such matters.

In the case of any industrial establishment in which one hundred or more workmen are
employed or have been employed on any day in the preceding twelve months, the
appropriate Government may by general or special order require the employer to
constitute in the prescribed manner a Works Committee consisting of representatives
of employers and workmen engaged in the establishment so however that 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.3

The constitution, terms of office, vacancies, dissolution of the works committee is

provided in Part VII of Industrial Disputes (Central) Rules, 1957.

2. Conciliation Officer (Section 4)

3
Section 3

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A conciliation officer is a government representative appointed to resolve an industrial
dispute. He is a mediator and his duty is to mediate in and promote the settlement of
industrial disputes. Duty of conciliation officer is administrative and not judicial. He is
not having any power to impose any order on the party concerned.

The appropriate Government may, by notification in the Official Gazette, appoint such
number of persons as it thinks fit to be conciliation officers, charged with the duty of
mediating in and promotion the settlement of Industrial disputes. 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 and either permanently or for a limited
period.4

 Duties of Conciliation Officers (Section 12)

1. Conciliation Proceedings and settlement- Where any industrial dispute exists or is

apprehended, the conciliation officer may, or where the dispute relates to a public
utility service and a notice under section 22 has been given, shall hold conciliation
proceedings in the prescribed manner. The conciliation officer shall, for the
purpose of bringing about a settlement of the dispute, without delay, investigate
the dispute and all matters affecting the merits and the right settlement thereof and
may do all such things as he thinks fit for the purpose of inducing the parties to
come to a fair and amicable settlement of the dispute.5
2. Submission of report by Conciliation Officer - If a settlement of the dispute or of
any of the matters in dispute is arrived at in the course of the conciliation
proceedings the conciliation officer shall send a report thereof to the appropriate
Government [or an officer authorised in this behalf by the appropriate
Government] together with a memorandum of the settlement signed by the parties
to the dispute.6 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

4
Section 4(2)
5
Section 12(2)
6
Section 12(3)

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 Government a full report setting forth the steps taken by him for ascertaining the
facts and circumstances relating to the dispute and for 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.7The report ought to be submitted within 14 days inside the beginning of the
conciliation proceeding or inside a shorter period as may be fixed by the
appropriate government.8
3. Boards of Conciliation (Section 5)

 The Appropriate Government may as an event emerges by notice in the

Official Gazette constitute a Board of Conciliation for advancing the
settlement of an industrial contest.
 A Board will incorporate a Chairman and 2 or 4 individuals, as the
Government thinks 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 a party shall be
appointed on the recommendation of that party: Provided that, if any party
fails to make a recommendation as aforesaid within the prescribed time, the
appropriate Government shall appoint such persons as it thinks fit to represent
that party.
 A Board, having the prescribed quorum, may act notwithstanding the absence
of the chairman or any of its members or any vacancy in its number: Provided
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 Boards9
7
Section 12(4)
8
Section 12(6)
9
Section 13

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 1. Conciliation proceeding and settlement- Where a dispute has been referred to
a Board under this Act, it shall be the duty of the Board to endeavour to bring
about a 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.

2. Sending of report to appropriate government - If a settlement of the 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 the investigation, send to the appropriate
Government a full report setting forth the proceedings and steps taken by the
Board for ascertaining the facts and circumstances relating to the dispute and
for bringing about a settlement thereof, together with a full statement of such
facts and circumstances, its findings thereon, the reasons on account of which,
in its opinion, a settlement could not be arrived at. The Board shall submit its
report under this section within two 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: Provided that the appropriate Government may from
time to time extend the time for the submission of the report by such further
periods not exceeding two months in the aggregate: Provided further that the
time for the submission of the report may be extended by such period as may
be agreed on in writing by all the parties to the dispute.10

3. Recommendations to the appropriate government for dispute resolution- If no

such settlement is arrived at, the Board shall, as soon as practicable, send the
report along with its recommendations for the determination of the dispute.

10
Section 13(5)

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 Powers of conciliation officers, Board11

1. Powers of conciliation officer

1.1. Power to enter any premises- A conciliation officer or a member of a
Board may for the purpose of inquiry into any existing or apprehended
industrial dispute, enter the premises occupied by any establishment to
which the dispute relates.12 However, a prior notice within a reasonable
time has to be provided by such officer in order to authorise such entry.
In State of Bihar vs Kripa Shankar Jaiswal, it was held that absence of
notice by the conciliating officer before entry does not render the
proceedings without jurisdiction.13

1.2. Power to enforce attendance- A conciliation officer may enforce the

attendance of any person for the purpose of examination of such person
or call for and inspect any document which he has ground for
considering to be relevant to the industrial dispute 6 [or to be necessary
for the purpose of verifying the implementation of any award or carrying
out any other duty imposed on him under this Act, and for the aforesaid
purposes, the conciliation officer shall have the same powers as are
vested in a Civil Court under the Code of Civil Procedure, 1908.

1.3. Power to inspect documents-A conciliation office may call for and
inspect any document which he has ground for considering to be relevant
to the industrial dispute or to be necessary for the purpose of verifying
the implementation of any award or carrying out any other duty imposed
on him under the Act, and for the aforesaid purposes, the conciliation
officer shall have the same powers as are vested in a Civil Court under
the Code of Civil Procedure,1908.14
11
Section 11
12
Section 11(2)
13
AIR 1961 SC 304
14
Section 11(4)

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2. Powers of board
2.1. Powers of a civil court- Every Board shall have the same powers as are
vested in a Civil Court under the Code of Civil Procedure, 1908, in
respect of the 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;
and every inquiry or investigation by a Board shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228 of the Indian Penal
Code (45 of 1860).15

Bibliography

1. Legislature-
a. The Industrial Disputes Act, 1947

15
Section 11(3)

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 b. Code of Civil Procedure, 1908
c. The Indian Penal Code, 1860

2. Website-
https://www.indiacode.nic.in/bitstream/123456789/17112/1/the_industrial_
disputes_act.pdf

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