LABOUR & INDUSTRIAL LAW II

NAME – NIKITA

REG. NO. – 46022210057

COURSE – B.A. LL.B.(Hons.)

SEMESTER/ YEAR – 4TH/ 2ND

SUBMITTED TO – Ms. RUFI

Labor courts in India are vital institutions tasked with adjudicating disputes between
employers and employees. They play a crucial role in upholding labour rights, ensuring fair
treatment, and maintaining industrial harmony. To understand their working and composition,
as well as to explore pertinent case laws, let's delve into this topic.

Working and Composition of Labor Courts in India:

1. Jurisdiction and Functioning:

Labor courts in India are established under the Industrial Disputes Act, 1947, and have
jurisdiction over matters concerning industrial disputes, wrongful termination, wages,
working conditions, etc. They operate based on principles of natural justice and aim to
resolve disputes swiftly and fairly.

2. Composition:

Labor courts typically consist of a presiding officer, who is usually a judge with expertise in
labour laws. They may be assisted by assessors who provide technical knowledge in specific
cases. The presiding officer is responsible for conducting proceedings, examining evidence,
and delivering judgments.

3. Procedures:

Proceedings in labour courts are less formal compared to regular courts. Parties can represent
themselves or engage legal counsel. The court may encourage conciliation and mediation to
facilitate settlements. If disputes remain unresolved, the court conducts hearings, examines
witnesses, and considers evidence before rendering a decision.

4. Enforcement of Judgments:

Once a judgment is delivered, it is binding on the parties involved. Failure to comply may
result in enforcement actions, including fines or imprisonment. However, parties have the
right to appeal decisions to higher courts if they disagree with the outcome.

Case Laws Illustrating Labor Court Functions:

1. M/s Harinarayan Jaiswal and Anr. v. State of U.P. and Ors. (2017):

In this case, the Supreme Court emphasized the importance of labour courts in adjudicating
disputes promptly and effectively. It reiterated that labour courts must prioritize the rights of
workers and ensure fair treatment in all proceedings.
2. Workmen v. Management of Ritz Theatre (1962):

This landmark case highlighted the jurisdiction of labour courts in determining disputes
related to unfair labour practices. The court ruled in favour of the workers, emphasizing the
need for employers to adhere to labour laws and provide a conducive work environment.

3. Steel Authority of India Ltd. v. National Union Waterfront Workers (2001):

Here, the court addressed the issue of collective bargaining and the role of labour courts in
resolving disputes arising from negotiations between employers and trade unions. The
judgment emphasized the importance of collective bargaining in maintaining industrial
harmony.

4. Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly (1986):

This case highlighted the obligation of employers to provide fair wages and benefits to
employees. The court held that labour courts have the authority to intervene in matters
concerning employee welfare and ensure compliance with labour laws.

Conclusion:

Labor courts in India serve as pillars of justice in the realm of labour disputes. Through their
jurisdiction, composition, and functioning, they aim to safeguard the rights of workers and
promote industrial peace. Case laws provide valuable insights into the pivotal role played by
labour courts in upholding labour standards and ensuring equitable treatment for all
stakeholders. As India's economy continues to evolve, labour courts remain indispensable in
addressing the dynamic challenges of the labour market.
Labour courts in India serve as specialized tribunals tasked with adjudicating disputes arising
from employment and industrial relations. Their functioning is governed by a combination of
statutory provisions, procedural rules, and judicial precedents. In this explanation, we'll delve
into the key aspects of how labour courts operate in India, citing relevant case laws and
provisions to illustrate their working.

Establishment and Jurisdiction:

Labour courts are established under the Industrial Disputes Act, 1947, which provides for the
resolution of disputes between employers and employees. Section 7 of the Act empowers
state governments to constitute labour courts for adjudicating industrial disputes. These
courts have jurisdiction over matters such as wrongful dismissal, disputes related to wages,
working conditions, and disciplinary actions.

Composition:

Labour courts are presided over by a judicial officer with the rank of a district judge or an
additional district judge. The presiding officer is appointed by the state government and must
possess the requisite qualifications prescribed under the law. The composition of benches
may vary depending on the complexity and volume of cases, with single-member or multiple-
member benches being constituted as necessary.

Procedural Mechanisms:

Labour court proceedings are governed by the principles of natural justice and procedural
fairness. Parties are entitled to present their cases, produce evidence, and cross-examine
witnesses. The court has the authority to summon witnesses, order the production of
documents, and conduct inquiries as required. The goal is to ensure a fair and impartial
resolution of disputes.

Case Laws and Provisions:

1. Workmen of Dimakuchi Tea Estate v. The Management of Dimakuchi Tea

Estate, 1958: In this landmark case, the Supreme Court held that the primary function
of a labour court is to adjudicate industrial disputes and ensure that the principles of
natural justice are followed. The court emphasized the importance of fair treatment of
workers and the need for expeditious resolution of disputes.
 2. Section 11A of the Industrial Disputes Act, 1947: This provision was introduced to
expedite the adjudication of disputes by imposing a time limit on the disposal of
cases. It requires labour courts to endeavor to complete proceedings and deliver
judgments within three months from the date of reference. Failure to adhere to this
timeline may result in the court recording reasons for the delay.

3. Management of Ritz Theatre v. Its Workmen, 1958: In this case, the Supreme
Court clarified that labour courts have the authority to interpret employment contracts,
statutory provisions, and industrial awards. The court emphasized the need for
specialized adjudication in labour matters and upheld the jurisdiction of labour courts
to determine disputes arising from employment relationships.

4. Section 33C(2) of the Industrial Disputes Act, 1947: This provision empowers
labour courts to adjudicate claims for monetary benefits arising from disputes
concerning the implementation of awards, settlements, or other entitlements under the
Act. It enables employees to seek recovery of unpaid wages, bonuses, or other
benefits through a summary procedure before the labour court.

5. National Textile Workers' Union v. P.R. Ramakrishnan, 1983: In this case, the
Supreme Court emphasized the importance of providing adequate opportunities for
parties to present their cases and rebut evidence. The court underscored the need for
labour courts to conduct fair and impartial proceedings, allowing parties to fully
participate and assert their rights.

Challenges and Remedies:

Despite their significance, labour courts in India face several challenges, including backlog of
cases, delays in disposal, and inadequate infrastructure. To address these issues, there is a
need for reforms aimed at enhancing the efficiency and effectiveness of labour court
proceedings. This may include the deployment of technology for case management, training
and capacity-building for judicial officers, and the introduction of alternative dispute
resolution mechanisms to expedite resolution.

In conclusion, labour courts play a crucial role in safeguarding the rights of workers and
promoting industrial harmony in India. Through the diligent application of statutory
provisions, procedural rules, and judicial precedents, these courts strive to deliver justice in
matters pertaining to employment relations. However, concerted efforts are required to
address the challenges they face and ensure timely and effective resolution of disputes.
The composition of labour courts in India is a crucial aspect of their functioning, as it directly
influences the quality and efficiency of dispute resolution in matters related to employment
and industrial relations. In this explanation, we will delve into the various elements that
constitute the composition of labour courts in India, examining the appointment and
qualifications of presiding officers, the composition of benches, and the jurisdictional
hierarchy.

Appointment and Qualifications of Presiding Officers:

Labour courts are presided over by judicial officers who are appointed by the respective state
governments. The appointment process typically follows the guidelines laid down by the
state's administrative and judicial authorities. The presiding officer of a labour court is
usually a district judge or an additional district judge, although the exact designation may
vary across states.

The qualifications required for presiding officers of labour courts are prescribed under the
relevant legislation and judicial service rules. Typically, the minimum qualifications include a
degree in law from a recognized university and several years of experience as a practicing
advocate or as a member of the judicial service. Additionally, candidates may be required to
demonstrate expertise or experience in labour law or industrial relations.

The rationale behind appointing judicial officers as presiding officers of labour courts is to
ensure that disputes are adjudicated by individuals with a sound understanding of legal
principles, procedural rules, and judicial precedents. Judicial officers are expected to uphold
the principles of natural justice, impartiality, and fairness in their adjudicatory functions,
thereby instilling confidence in the justice delivery system.

Composition of Benches:

Labour courts may function with either single-member benches or multiple-member benches,
depending on the complexity and significance of the cases being adjudicated. The
composition of benches is determined based on statutory provisions, procedural rules, and
administrative guidelines issued by the competent authorities.

Single-Member Benches: In simpler cases or matters involving routine disputes, labour courts
may function with a single presiding officer. The presiding officer exercises sole authority in
conducting proceedings, evaluating evidence, and delivering judgments. Single-member
benches are typically utilized for cases that do not involve intricate legal or factual issues.
Multiple-Member Benches: In more complex cases or matters of significant importance,
labour courts may constitute multiple-member benches comprising a presiding officer and
one or more additional members. The additional members may include legal experts,
technical advisors, or representatives of employers and employees. Multiple-member benches
are often convened for cases involving disputes of substantial financial implications, novel
legal issues, or matters of public interest.

The composition of benches is designed to ensure comprehensive consideration of various

legal, factual, and practical aspects relevant to the disputes being adjudicated. Multiple-
member benches benefit from the diverse expertise and perspectives of their members,
facilitating a more thorough examination of the issues at hand and enhancing the quality of
decision-making.

Jurisdictional Hierarchy:

Labour courts in India operate within a hierarchical framework, with different tiers of courts
exercising jurisdiction over disputes of varying nature and magnitude. The jurisdictional
hierarchy typically includes labour courts, industrial tribunals, and appellate authorities, each
catering to specific categories of disputes and aggrieved parties.

Labour Courts: Labour courts are vested with jurisdiction to adjudicate disputes arising from
employment and industrial relations, including matters related to wages, working conditions,
disciplinary actions, and wrongful dismissals. Labour courts are established under the
Industrial Disputes Act, 1947, and operate at the district or regional level, depending on the
administrative divisions within the state.

Industrial Tribunals: Industrial tribunals are specialized adjudicatory bodies empowered to

resolve disputes of a more complex or specialized nature. They are constituted under the
Industrial Disputes Act, 1947, and typically operate at the state or regional level. Industrial
tribunals may have jurisdiction over disputes involving industries or sectors designated as
"public utility services" or those referred to them by the appropriate government.

Appellate Authorities: Appellate authorities serve as appellate forums for challenging the
decisions of labour courts and industrial tribunals. These authorities are typically presided
over by senior judicial officers or administrative officials appointed by the state government.
Appellate authorities have the power to review the findings of lower courts, hear appeals filed
by aggrieved parties, and render decisions on points of law or fact.
The jurisdictional hierarchy ensures a structured and systematic approach to the resolution of
disputes, allowing for the efficient allocation of resources and the equitable dispensation of
justice. Aggrieved parties have recourse to higher forums for redressal if they are dissatisfied
with the decisions of lower courts, thereby ensuring access to effective remedies and avenues
for appeal.

Conclusion:

The composition of labour courts in India is characterized by the appointment of judicial

officers as presiding officers, the constitution of single-member or multiple-member benches,
and the existence of a jurisdictional hierarchy comprising labour courts, industrial tribunals,
and appellate authorities. These elements collectively contribute to the efficient and impartial
adjudication of disputes arising from employment and industrial relations, ensuring the
protection of workers' rights and the promotion of industrial harmony. Effective
implementation of statutory provisions, adherence to procedural rules, and adherence to
principles of natural justice are essential for maintaining the integrity and credibility of labour
courts in India.
Labour is a subject in the Concurrent List under the Constitution of India where both the
Central and State Governments are competent to enact legislation subject, however, to
reservation of certain matters for the Central Government.

The Ministry of Labour and Employment seeks to protect and safeguard the interests of
workers in general and those who constitute the poor, deprived and disadvantaged sections of
the society, in particular, with due regard to creating a healthy work environment for higher
production and productivity, and developing and coordinating vocational skill training and
employment services.

Government's attention is also focused on promotion of welfare activities and providing

social security to the labour force both in the organised and unorganised sectors, in tandem
with the process of liberalisation. These objectives are sought to be achieved through
enactment and implementation of various labour laws, which regulate the terms and
conditions of service and employment of workers.

What is an Industrial Dispute?

The following are the thrust areas of the Government concerning labour laws:

3. What is an Industrial Dispute?

# Labour policy and legislation;
# Safety, health and welfare of labour;
# Social security of labour;
# Policy relating to special target groups such as women and child labour;
# Industrial relations and enforcement of labour laws in the central sphere;
# Adjudication of industrial disputes through Central Government Industrial Tribunals-cum-
Labour Courts and National Industrial Tribunals;
# Workers' education;
# Labour and employment statistics;
# Emigration of labour for employment abroad;
# Employment services and vocational training;
# Administration of central labour and employment services; and
# International cooperation in labour and employment matters.
India has a number of labour laws that govern almost all the aspects of employment such as
payment of wages, minimum wages, payment of bonus, payment of gratuity, contributions to
provident fund and pension fund, working conditions, accident compensations, etc. The
Government has enacted certain central legislations, viz, the Employees Provident Fund and
Miscellaneous Provisions Act, Employees State Insurance Act, Payment of Wages Act,
Minimum Wages Act, Equal Remuneration Act, Maternity Benefits Act, etc.
In addition, at the State level, the State Governments usually have a separate Labour
Ministry, which seeks to ensure compliance with State labour laws (viz, State Shops and
Establishments Act, Labour Welfare Fund Act, etc) through its Labour Department, which is
generally operational at the district level.

Introduction
The law relating to labour and employment in India is primarily known under the broad
category of Industrial Law. Industrial law in this country is of recent vintage and has
developed in respect to the vastly increased awakening of the workers of their rights,
particularly after the advent of Independence. Industrial relations embrace a complex of
relationships between the workers, employers and government, basically concerned with the
determination of the terms of employment and conditions of labour of the workers

To settle the Industrial disputes, the Industrial Disputes Act,1947 provides three kinds
of Courts - Labour Court, Industrial Tribunal and National Tribunal or National Industrial
Tribunal.

The appropriate government may constitute one or more labor Courts for the purpose of
adjudicating on the matter referred to it. The ID Act provides for the appointment of
Conciliation Officers, Board of Conciliation, Courts of Inquiry, Labour Courts, Tribunals, and
National Tribunals for settlement of disputes. Another method recognised for settlement of
disputes is through arbitration. The Industrial disputes Act provides a legalistic way of
settling disputes.

The goal of preventive machinery as provided under the Act is to create an environment
where the disputes do not arise at all. The ID Act prohibits unfair labour practices which are
defined in the Fifth Schedule strikes and lockouts (except under certain defined conditions
and with proper notice). It also provides for penalties for illegal strikes and lockouts and
unfair labour practices and provisions regarding lay off and retrenchment as well as
compensation payable thereof.

What is an Industrial Dispute?

3. What is an Industrial Dispute?

According to Section 2A: Where any employer discharges, dismisses, retrenches or
otherwise terminates the services of an individual workman, any dispute or difference
between that workman and his employer connected with, or arising out of, such discharge,
dismissal, retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other workman nor any union of workmen is a party to the dispute.

Industrial Disputes have adverse effects on industrial production, efficiency, costs, quality,
human satisfaction, discipline, technological and economic progress and finally on the
welfare of the society. A discontent labour force, nursing in its heart mute grievances and
resentments, cannot be efficient and will not possess a high degree of industrial morale.
Hence, the Industrial Dispute Act of 1947, was passed as a preventive and curative measure.

Labour courts

Individual workmen raises Industrial dispute Under Section7 of Industria Dispute Act 1947 .
Which says:
The appropriate government is empowered to establish one or more Labor Courts. Its
function is to settle industrial disputes concerning any matter specified in the second
schedule.

Qualification for the appointment of a Presiding Officer of the Court

(i) He is or has been a judge of high court
(ii) He has for a period of not less than 3 years, been a district judge or an additional judge
(iii) He has held any judicial office in India for not less than 7 years
(iv) He has been the presiding officer of labor Court constituted under any Provision Act for
not less than 5 years
Disqualifications :
Section 7-C of the Industrial Dispute Act,1947 prescribes Disqualifications for the presiding
officer to be appointed to the Labor Court. It provides that no person shall be appointed to or
continue in office if:
(a) He is not an independent person; or
(b) he has attained the age of 65 years

Matters within The Jurisdiction of Labour court

Second Schedule
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

According to [Sec 10 (1) (c)] matters specified in THIRD SCHEDULE, dispute not effecting
more than 100 workers can be referred to labour court.

According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to
refer dispute to the labour court and if government satisfies it shall make the reference to the
labour courts.

According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate
upon any matter which is under adjudication before the National Tribunal.

Power and status of the labour court in trying offences

Section 215 and 216 of the code provides the procedure and powers of labour court
which is may be of two types;
(1) Power and status in trying offences and
(2) Power and status in civil maters
(a) The labour court shall follow as nearly as possible summary procedure as prescribed
under the code of criminal procedure 1898 (Act V of 1898)
(b) A labour court shall for the purpose of trying an offence under the code have the same
powers as are vested in the court of a magistrate of the first class under the code of criminal
procedure.
(c) The labour court shall for the purpose of inflicting punishment have the same powers as
are vested in Court of Session under that code.
(d) A labour court shall while trying an offence hear the case without the members.

What is an Industrial Dispute?

3. What is an Industrial Dispute?

Labour court is a civil court
In the case of Pubali Bank V the Chairman 1st labour court 44DLR(AD)40 the question
was raised whether a labour court is a civil court or not their. Lordship of
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, p.282
the appellate division upon consideration of relevant provision of the industrial relations
ordinance 1969 held that the labour court acts as civil court for limited purpose but not a civil
court at all it is only by a legal fiction or a statutory hypothesis that it is to be treated as a civil
court.

Duties of Labour Court:

Labour Court shall hold its proceedings within the specified period and shall submit its award
to the Government. Such award must be in writing and signed by the presiding officer.

The Labour Court has the same power of a Civil Court. The proceeding of the Labour Court
shall not be questioned on the ground that it is not properly constituted

Functions of the Labour Court:

The functions of the Labor Court are laid down in Section 7 of the said Act.

(I) Adjudicating upon industrial dispute specified in the second schedule of the said Act;
are as follows
(1) The propriety or legality of any order passed by an employer under the standing orders;
(2) The application and interpretation of the Standing Orders
(3) Discharge or dismissal of the workman including reinstatement of, or grant of relief to,
the workman wrongfully dismissed;
(4) Withdrawal of any customary concession or privilege
(5) Illegality or otherwise of a strike or Lockout; and
(6)All matters other than those specified in the Third Schedule which fall within the
jurisdiction of Industrial Tribunal.

(II) Performing such other functions as may be assigned to it under the Industrial
Dispute Act, 1947
The Other matters assignable on the Labor Court are:
(1) Voluntarily reference of dispute by written agreements between the parties under Section
10A;
(2).Arbitration reference under Section 10A;
(3) Permission to or approval of the action of discharge under Section 33;
(4) Complaint by the aggrieved employees under Section 33A;
(5) Application under Section 33(c)2A for the computation of any money or any benefit
which is capable of being computed in the terms of money.
(6) Reference of awards or settlement for the interpretation in case of difficulty or doubt
under Section 36AA

Procedure and Powers of Labour court

(a) While trying offences

While trying an offence, a labour court shall follow as nearly as possible summary procedure
as provided under Cr.P.C, and shall have the same powers as are versed in the court of a
magistrate of first class specially empowered u/sec 30 of Cr.P.C.
(b) While adjudicating industrial dispute
For the purpose of adjudicating and determining any industrial dispute, a labour court shall be
deemed to be a civil court and follow the procedure as provided under C.P.C and shall have
the same powers as are vested in such court under C.P.C. Following are the powers of labour
court.

i. To Grant Relief
Labour court can grant full and final relief to the aggrieved party.

ii. To Grant interim Relief

Labour court is also competent to grant ad-interim relief under its inherent powers.

iii. To grant Adjournment

Labour court has the power to grant adjournments if just cause to shown.

iv. To enforce attendance of any Person

Labour court can enforce the attendance of any person which is necessary for deciding the
matter before it and this it can done so by issuing summons, proclamation etc.

v. Power to Examiner
Labour court can examine any person on oath.

vi. To compel Production of Documents etc

Labour court can compel the production of documents and material objects, necessary for
deciding the matter in questions.

vii. To issue commissions

Labour court has the power to issue commissions for the examination of witnesses or
documents.

viii. Ex-part Proceedings

Labour court has the power to proceeding ex-parte, where the party failed to appear before it.

ix. to determine Grievance of workmen

Labour court may determine the grievance of workmen and in doing so, it shall go into all the
fact of the case and pass such order as may be just and proper in the circumstances of the
case.

c. While trying cases of Rights Given under special Acts

Where the special acts confer on litigants certain rights but the power to decide, try or
adjudicate the case in conferred on the labour court established under PIRA 2010 and no
procedure is prescribed, labour courts can apply their own procedure.

Territorial Jurisdiction of Labour Court

Assumption of jurisdiction by labour court without deciding objection to territorial

jurisdiction was unwarranted unless it had necessary territorial jurisdiction, its order was
bound to be without lawful authority.

Exemption from court fee

No court fees are payable for filing, exhibiting or recording any document in or obtaining any
document from labour court.

10. Withdrawal of case

Where the matter has resolved the parties amicable before a final order is passed by the
labour court, the labour court may allow withdrawal of such case if there are sufficient
grounds for such withdrawal.

Central Government Industrial Tribunal-cum-Labour Courts (CGITs)

1. Central Government Industrial Tribunal-cum-Labour Courts (CGIT-cum-LCs) are set

up under the provisions of Industrial Disputes Act, 1947 for adjudication of industrial
disputes arising in Central Sphere. There are 22 CGIT-cum-LCs set up in various
States, out of which 10 are under Non-Plan and 12 under Plan Scheme. The CGIT-
cum-LC No.1, Mumbai and CGIT-cum-LC, Kolkata also function as National
Tribunals. These CGIT-cum-LCs are headed by Presiding Officers who are selected
 from amongst High Court Judges (serving/retired) or Distt./Addl. Distt. Judges
(serving/retired).

2. The CGIT-cum-LCs have been set up with the objective of maintaining peace and
harmony in the industrial sector by quick and timely disposal of industrial disputes
through adjudication so that industrial growth does not suffer on account of any
widespread industrial unrest. Moreover, due to increasing awareness about their rights
and Labour laws among the workers, there is a gradual increase in the number of
cases being filed under the I.D.Act before the CGIT-cum-LCs. Restructuring of
workforce on account of application of latest
2. technology in the industries has also resulted in retrenchment, declaration of surplus
etc. which has further led to an increase in workers grievances.

Conclusion
To conclude, I can say, that the labour court is a judicial forum to resolve the disputes
between employers and workmen. It has two-fold jurisdiction viz civil and as well as
criminal, nut it is not subordinate to the high court and Article 201 of the constitution
of Pakistan, 1973 does not apply to it. The labour court is left with the owner
discretion to decide what is just and fair in the circumstances of each case, having
regard to equity, fairness and social justice.