B.A. LL.

B (Semester- V)

LABOUR LAWS- I

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 INDEX

1. Syllabus 3-4

2. Unit- Wise Demarcation of PYQs 5-6

3. Lecture Plan 7-8

4. Unit-II Notes 9 -27

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 LL.B. (Integrated) Five Years Degree Course

(Third Year)

V Semester

Paper Code : LB-503

Paper III

Labour Laws-I (The Industrial Relation Code and The Code on Wages)

Unit I: (Lecture 10)

i. Industrial Relation
ii. Industrial Jurisprudence
iii. Labour Welfare
iv. Labour Problem
v. Labour Policy in India
vi. International Labour Organization
vii. Trade Unionism and Collective bargaining-process its merit and demerit
viii. Definitions
ix. Bi-Partite forums
x. Trade Unions (Section 5-27)

Unit II: (Lecture 06)

i. Industrial Dispute Act,1947 Scope of Industry,

ii. Workmen, Employers, Industrial Disputes,
iii. Authorities under the Industrial Dispute Act,1947
iv. Procedure, Power and Duties of Authorities, Reference to Dispute to Boards , Courts
or Tribunals

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Unit III: (Lecture 04)

i. Strike, Lock-out, Lay-off, Retrenchment and closure

ii. Unfair Labour Practices, Penalties,
iii. Offences by Companies etc.
iv. Industrial Employment (Standing Order) Act, 1946

Unit IV: (Lecture 04)

i. Philosophy of Labour Welfare, Hostorical Development of Labour welfare,

ii. The Factories Act, 1948: Interpretation-competent person, Hazardous process,
manufacturing process , worker , factory occupier, health, Safety and welfare
iii. Working house of Adults, Employment of young persons, inspectors- appointment
and powers

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UNIT WISE DEMARCATION OF PYQ’s

Unit I:

a) What do you mean by “Industrial Relation”? Discuss the Indian labour policy explaining
how far it has been successful in resolving relevant labour problems. (2021)

b) Narrate the history and development of Trade Union Movement in India from the
nineteenth century till independence.(2021)

c) Discuss the rights and liabilities of a registered Trade Union under the Trade Unions Act,
1926. How is a political fund different from general fund? (2021& 2022)

d) Discuss the history and development of labour welfare legislation in India during the
twentieth century. Are “Labour Welfare” and “Industrial Growth” contradictory to each
other? (2021)

e) Discuss labour problems and labour policy in India emphasizing legislative provisions.
(2022)

f) Trace the history and development of Trade Union movement in India. Name any two
important Trade Unions of National level.(2022)

Unit II:

a) Define “Industrial Dispute” and “Workman” under the Industrial Disputes Act, 1947
citing relevant case-laws. (2021)

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 b) Discuss the constitution and jurisdiction of a Labour Court under the Industrial Disputes
Act, 1947. How is it different from that of a Labour Tribunal? (2021)

Unit III:

a) Discuss “Strike” as a means of collective bargaining process. What are the provisions
relating to prohibition of illegal strikes and lock-outs? What is the difference between
lay-off and retrenchment? (2021)

b) Discuss “Strike” as a means of collective bargaining process. What are the provisions
relating to prohibition of illegal strikes and lock-outs? What is the difference between
lay-off and retrenchment? (2021)

c) What is the aim of “Standing Orders” under the Industrial Employment (Standing Orders)
Act, 1946? Discuss the powers and functions at a certifying officer under the above
mentioned Act. (2021)

d) Discuss the main provisions of Industrial Employment (Standing orders) Act, 1946. What
is the role of certifying officer under it? (2022)

e) Discuss ‘Strike’ as a means of collective bargaining process. What are the prohibitions
regarding illegal strikes and lockouts. (2022)
f) Write short notes on any two of the following: (2022)

i)Lay-off

ii) Retrenchment

iii) Workman

Unit IV:

a) Explain the powers and duties of ‘Inspectors’ under the Factories Act, 1948 . (2022)

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LECTURE RE-PLAN

Unit I: (Lecture 10)

Lecture 1: Industrial Relation

Lecture 2: Industrial Jurisprudence

Lecture 3: Labour Welfare

Lecture 4: Labour Problem

Lecture 5: Labour Policy in India

Lecture 6: International Labour Organization

Lecture 7: Trade Unionism and Collective bargaining-process its merit and demerit

Lecture 8: Definitions

Lecture 9: Bi-Partite forums

Lecture 10: Trade Unions (Section 5-27)

Unit II: (Lecture 04)

Lecture 1: Industrial Dispute Act,1947

Lecture 2: Scope of Industry, Workmen, Employers, Industrial Disputes,

Lecture 3: Authorities under the Industrial Dispute Act,1947, Procedure

Lecture 4:, Power and Duties of Authorities, Reference to Dispute to Boards , Courts or
Tribunals

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Unit III: (Lecture 04)

Lecture 1: Strike, Lock-out, Lay-off, Retrenchment and closure

Lecture 2: Unfair Labour Practices, Penalties,

Lecture 3: Offences by Companies etc.

Lecture 4: Industrial Employment (Standing Order) Act, 1946

Unit IV: (Lecture 04)

Lecture 1: Philosophy of Labour Welfare, Historical Development of Labour welfare,

Lecture 2: The Factories Act, 1948: Interpretation-competent person, Hazardous process,

manufacturing process , worker , factory occupier, health, Safety and welfare

Lecture 3: Working house of Adults, Employment of young persons,

Lecture 4: Inspectors- appointment and powers

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 (BOOKLET NOTES)
Unit-II

Lecture-1

Question 1) Discuss the Historical background to Industrial Disputes Act.

Ans: Industrial Disputes and the Industrial Disputes Act, 1947: Industrial disputes arise
from conflicts between employers and employees, often resulting in strikes, protests, lock-outs,
or retrenchments. The Industrial Disputes Act, 1947 provides a legal framework for resolving
such disputes peacefully, aiming to foster harmonious relations and prevent tensions in industrial
relations. The Act outlines lawful procedures for strikes, lock-outs, layoffs, retrenchments,
dismissals, and closures. It also establishes various authorities for dispute resolution, such as
Conciliation Officers, Labour Tribunals, and National Tribunals.

Historical Context:

The first legislation addressing industrial disputes was the Employers’ and Workmen’s Disputes
Act, 1860, which favored employers. It was replaced by the Trade Disputes Act, 1929, which
introduced conciliation mechanisms. During WWII, Rule 81-A of the Defence of India Rules
mandated compulsory conciliation or adjudication. After the war, the Industrial Disputes Act,
1947 was enacted to provide a comprehensive framework for industrial relations in India.

Objectives of the Act:

As outlined by the Supreme Court in Dimakuchi Tea Estate v. Dimakuchi Tea Estate (1958),
the key objectives are:

1. Promoting good relations between employers and workers.

2. Investigating and resolving disputes.

3. Preventing illegal strikes and lock-outs.

4. Providing relief in cases of layoffs and retrenchment.

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5. Encouraging collective bargaining.

Scope and Application:

The Act applies nationwide and offers flexible mechanisms for dispute resolution, promoting
industrial peace and socio-economic justice. Courts interpret the Act to uphold mutual
agreements and avoid industrial confrontation, as highlighted in Hindustan Lever Limited v.
Hindustan Lever Limited (1984).

In essence, the Industrial Disputes Act plays a pivotal role in maintaining industrial
harmony and ensuring fairness in resolving conflicts.

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 UNIT-II

LECTURE-2

Question 2) Define “Industry” and “Workman” under the Industrial Disputes Act, 1947
citing relevant case-laws.

Question 2) Discuss “employer” as mentioned under Industrial Dispute Act, 1947.

Question 2) What do you understand by Industrial Disputes. Explain as mentioned under

the Industrial Disputes Act.

---------------------------------------------------------------------------------------------------------------------

Question 2A) Define Industry.

Ans: Definition of Industry under Section 2(j) of the Industrial Disputes Act, 1947:

Section 2(j) defines "industry" as any business, trade, undertaking, manufacture, or calling of
employers and includes any calling, service, employment, handicraft, or industrial occupation of
workmen. The definition emphasizes that an industry is a collective effort between employers
and employees. It exists when there is a relationship between them, with the employer engaging
in business, trade, or similar activities, and the employee contributing through work or services.

Interpretation of 'Industry':

The term "industry" has evolved to reflect a modern view that industry is a joint venture between
employers and employees, rather than something created solely by employers. The definition
read as a whole implies that both employers and employees contribute to the existence of an
industry.

The Supreme Court has clarified that for an activity to be classified as an industry, it must
involve cooperation between employers and employees, systematically undertaken to produce
goods or provide services. However, the word "undertaking" has been the source of difficulty,

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and the Court has ruled that the activity must be analogous to trade or business to be considered
an industry.

Triple Test: The Supreme Court in Bangalore Water Supply v. A. Rajappa introduced the
Triple Test to determine whether an activity qualifies as an industry:

1. Systematic Activity: The activity must be organized systematically.

2. Employer-Employee Cooperation: There must be cooperation between employers and

employees.

3. Production/Distribution of Goods or Services: The activity must produce or distribute

goods or services to satisfy human needs.

The Court also emphasized that profit motive is irrelevant, and even organizations driven by
philanthropy or public welfare may qualify as an industry if they meet the triple test.

Exceptions:

Certain activities, such as spiritual or religious services, professions with minimal employees, or
government functions, may be exempt from the definition of industry. Sovereign functions of the
government are also exempt, unless they involve activities that are substantially severable and
resemble trade or business.

In the case of Safdarjung Hospital v. Kuldip Singh, the Supreme Court countered the
principles laid out in Bangalore Water Supply v. A. Rajappa, suggesting a reconsideration of
the broad scope of the definition of "industry."

Question 2B) Define Workman.

Ans: A workman is any person employed in an industry to perform manual, skilled, unskilled,
technical, operational, clerical, or supervisory work for hire or reward, whether the employment
terms are expressed or implied. This includes individuals dismissed, discharged, or retrenched in
connection with an industrial dispute.

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However, certain categories are excluded, such as those covered under the-

Army, Air Force, or Navy Acts, employees in the police or prison services, those in managerial
or administrative roles, and individuals in supervisory positions earning more than Rs. 1,600 per
month or performing managerial duties.

Judicial Interpretations:

- Employed in "any industry": The workman must be employed in an activity classified as an

industry. Employees engaged in operations incidental to the main industrial activity also qualify
as workmen. In J.K. Cotton Spinning and Weaving Mills v. L.A.T., the Supreme Court held
that even those involved in secondary activities (like gardeners for company bungalows) fall
under this definition, as they support the industry.

- Employment relationship: There must be a contractual relationship between the employer and
workman. This contract can be expressed or implied, and control by the employer over the
worker’s duties is essential to establish a master-servant relationship. Even part-time or casual
workers can qualify as workmen.

- Nature of work: The person must be engaged in skilled/unskilled manual work, technical,
clerical, or supervisory tasks. If an employee performs a combination of duties, the primary or
dominant role defines their status. For instance, supervisory employees are workmen only if they
earn less than Rs. 1,600 monthly. A person's designation is less important than the nature of their
work in determining whether they are a workman.

In sum, a workman's status is determined by the type of work performed, the employer-employee
relationship, and the nature of duties, with emphasis on the dominant role in employment.

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Question 2C) Discuss “employer” as mentioned under Industrial Dispute Act, 1947.

Ans: Under the Industrial Disputes Act, 1947, the term "employer" is defined differently based
on the type of establishment:

1. Government-Controlled Industries: Refers to anyone acting on behalf of the Central or

State Government or public authorities. In industries run by or closely tied to the government,
the "employer" is defined as any person or authority designated to act on behalf of the Central
Government, State Government, or other public bodies responsible for the industry’s operations.
This often includes industries where the government has a stake or exercises control, such as
public utilities (e.g., railways, power generation) or public sector undertakings (PSUs).

2. Factories: The owner or occupier responsible under the Factories Act, 1948. In the context of
factories, which are covered under the Factories Act, 1948, the "employer" is the owner or
occupier of the factory. The occupier can be anyone responsible for the factory’s operations and
control, including ensuring that the establishment follows safety, health, and labor regulations.

3. Plantations: The owner or manager of plantations, including their agents or representatives.

In plantations, which typically refer to agricultural estates like tea, coffee, or rubber plantations,
the "employer" is the person or entity that owns or manages the plantation. This definition
extends to agents or representatives who work under the employer's authority and have
supervisory or control functions over the workforce.

4. Other Establishments: Those with ultimate control, such as owners or directors of firms or
companies. In establishments that do not fall under the above categories, the term "employer"
refers to anyone who holds ultimate control over the operations of the business. This can include
the owner of a firm, directors of a company, or other legal entities that oversee the enterprise’s
day-to-day functioning.

Key Responsibilities of Employers:

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- Lay-offs, Retrenchment, and Closures: Employers must follow legal procedures, provide
notice, and seek government approval when required.

- Disciplinary Actions: Dismissals and suspensions must be fair and justified.

- Strikes and Lock-outs: Employers must ensure that strikes or lock-outs comply with legal
requirements.

- Dispute Resolution: Employers must engage in conciliation, arbitration, and adjudication

processes.

- Compliance with Labor Standards: Employers must ensure fair working conditions, wages,
and employee welfare.

Exemptions:

Certain employers involved in sovereign functions (e.g., defense and law enforcement) may be
exempt from some provisions, though public sector enterprises are generally subject to the Act.

Conclusion:The Act places significant responsibilities on employers to promote industrial

harmony, resolve disputes, and ensure compliance with labor laws.

Question 2D) Highlight the Term “Industrial Dispute” as enshrined under the Industrial
Dispute Act.

Ans: Under Section 2(k) of the Industrial Disputes Act, 1947, an "industrial dispute" is a
formal conflict related to employment conditions, involving disagreements between employers,
between employers and workmen, or among workmen themselves. Key aspects include:

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1. Existence of a Dispute: An industrial dispute must involve a significant, ongoing
disagreement affecting industrial harmony. It must be substantial and persistent, not just minor
grievances. Even if formal demands are not made, the dispute must be real or anticipated. The
Supreme Court has affirmed that participation in conciliation proceedings alone does not
constitute an industrial dispute; there must be clear demands from workmen and a failure to
address them.

2. Parties to the Dispute: Disputes can involve employers, workmen, or both. They can be
initiated by workmen directly or through representatives like trade unions, but do not need to be
raised by a registered union. A dispute involving a substantial group of workmen, even if raised
by a minority union or individual workmen, can be recognized as an industrial dispute. Legal
heirs of deceased workmen can also be involved.

3. Individual Dispute Evolution: Before Section 2-A was added, individual disputes could only
become industrial disputes if supported by a trade union or a significant number of workmen.
The Supreme Court has clarified that an individual dispute must involve a community of interest
to be classified as an industrial dispute. Even if initiated by a minority or without union support
at the time, a dispute affecting a class of workmen can be considered an industrial dispute if
supported by workmen collectively.

The Act ensures that significant employment-related disputes are handled through a structured
legal framework to promote fairness and resolution in industrial relations.

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 UNIT-II

LECTURE-3

Question 3) Discuss The Authorities and procedure Under the Industrial Disputes Act,
1947.

Question 3 A) Highlight the Dispute Resolution Machineries under Industrial Disputes

Act,1947.

Ans: The Act provides for following Authorities for Investigation and settlement of
industrial disputes:

1. Works Committee.
2. Conciliation Officers.
3. Boards of Conciliation.
4. Court of Inquiry.

1. Works Committee (Section 3)

The Industrial Disputes Act mandates that the appropriate government can require the formation
of a Works Committee in industrial establishments with 100 or more workmen. This committee,
composed of both employer and workman representatives, is tasked with fostering good relations
between the parties, addressing mutual concerns, and resolving significant differences.

2. Conciliation Officers (Sections 4 & 12)

To mediate and settle industrial disputes, the government may appoint Conciliation Officers.
These officers, appointed for specific areas or industries, work to create a conducive
environment for resolving disputes between employers and workers. Their responsibilities
include investigating disputes, facilitating fair settlements, and reporting the outcomes to the

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government. If a settlement is reached, a memorandum of the agreement is submitted; if not, a
detailed report on the dispute and mediation efforts is provided.

3. Boards of Conciliation (Section 13)

The government can establish a Board of Conciliation to address industrial disputes. This board
consists of a Chairman and two to four additional members. The board's role is to investigate the
dispute, seek a fair resolution, and report its findings and recommendations to the government. If
a settlement is achieved, the board submits a memorandum of the settlement. If not, the board
provides a report outlining the steps taken, reasons for the failure to settle, and any
recommendations.

4. Courts of Inquiry (Section 6)

The government may also constitute a Court of Inquiry to investigate issues related to industrial
disputes. This court can be comprised of one or more independent persons, with one appointed as
Chairman if there are multiple members. The court's duty is to examine the matters referred to it
and submit a report to the government, typically within six months. However, the submission
period is flexible, and reports can be submitted beyond six months without impacting the
inquiry's legality.

Question 3 B) How do Labour Tribunals, Industrial Tribunals, National Tribunals, and

Appellate Authorities contribute to the resolution of industrial disputes under the
Industrial Disputes Act? Specifically.

Ans: - Labour Tribunals address specific disputes between employers and employees related to
issues such as termination, pay, and other employment conditions. They provide judicial
resolution when conciliation efforts fail and are typically composed of a single legally qualified
member.

- Industrial Tribunals handle more complex disputes that may affect multiple industries or have
significant implications. These tribunals make binding decisions on a wide range of issues and
consist of a presiding officer and additional members appointed by the government.

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- National Tribunals are established for disputes of national importance or those affecting
multiple states. They adjudicate major disputes requiring a nationwide perspective and are
comprised of a chairperson and other appointed members.

- Appellate Authorities review decisions from Labour and Industrial Tribunals to ensure legal
correctness and procedural fairness. These authorities are generally higher courts or designated
appellate bodies.

Conclusion: In conclusion, Labour Tribunals, Industrial Tribunals, National Tribunals, and

Appellate Authorities each play distinct yet complementary roles in the resolution of industrial
disputes under the Industrial Disputes Act. Labour Tribunals focus on resolving specific disputes
between employers and employees concerning termination, pay, and other employment
conditions, providing judicial resolution when conciliation efforts fail. Industrial Tribunals
handle more complex and wide-ranging disputes that impact multiple industries, making binding
decisions and consisting of a presiding officer and additional members appointed by the
government. National Tribunals address disputes of national importance or those spanning
multiple states, with a nationwide perspective provided by a chairperson and other appointed
members. Lastly, Appellate Authorities ensure the legality and fairness of decisions made by
Labour and Industrial Tribunals, serving as higher courts or designated bodies for appeals.
Together, these authorities ensure that industrial disputes are resolved in a fair, structured, and
efficient manner, thereby fostering industrial peace and promoting harmonious labor relations.

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 UNIT-II

LECTURE-4

Question 4 ) How do the powers and duties of authorities under the Industrial Disputes Act
shape the resolution of industrial disputes, with specific reference to the role of Boards of
Conciliation and the mechanisms of Courts and Tribunals?

Question 4 A) Discuss Powers and Duties of Authorities under Industrial Dispute Act.

Ans: Under the Industrial Disputes Act, 1947, various authorities are designated to resolve
industrial disputes between employers and employees, each with specific powers and duties to
ensure fair and efficient dispute resolution. Here’s a detailed overview:

1. Conciliation Officers (Section 4):

- Powers: Conciliation Officers are empowered to investigate disputes by examining relevant

documents and evidence. They can summon both parties to appear before them and offer
advisory guidance to facilitate a settlement.

- Duties: Their primary duty is to mediate disputes, striving to reach a resolution through
conciliation. They must report to the government on any settlements reached or provide a failure
report if the dispute remains unresolved, including recommendations for further action.
Maintaining impartiality and ensuring that both parties are fairly heard are central to their role.

2. Boards of Conciliation (Section 5):

- Powers: Boards of Conciliation possess similar powers to Conciliation Officers but are
tasked with handling more complex or large-scale disputes. They can summon witnesses, collect
evidence, and oversee negotiations between the parties involved.

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 - Duties: The Boards are responsible for investigating the causes of disputes and working to
mediate a settlement. If a settlement is achieved, they submit a detailed report to the government.
If not, they provide a failure report along with recommendations for further action, aiming to
maintain industrial harmony and prevent prolonged disputes.

3. Labour Courts (Section 7):

- Powers: Labour Courts are authorized to adjudicate on specific employment-related disputes,

such as issues of discharge, dismissal, retrenchment, and compensation. They have the power to
summon witnesses, compel the production of documents, and issue legally binding awards.

- Duties: Labour Courts are tasked with providing fair adjudication of disputes, ensuring
timely resolution to avoid unnecessary delays. They must interpret and apply labor laws
accurately, ensuring that the employer-employee relationship adheres to legal standards and
principles.

4. Industrial Tribunals (Section 7A):

- Powers: Industrial Tribunals address more extensive and complex industrial disputes
involving issues like wages, working conditions, and other significant matters. They have broad
adjudicatory powers, including conducting inquiries, summoning witnesses, and compelling the
production of evidence. Their decisions are binding and enforceable.

- Duties: The Tribunals are responsible for resolving significant industrial disputes in a just
and equitable manner. They aim to deliver decisions that promote long-term industrial peace and
address complex issues that impact various industries or sectors.

5. National Tribunals (Section 7B):

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 - Powers: National Tribunals are established to handle disputes of national importance or those
affecting multiple states. They possess nationwide jurisdiction and have the authority to issue
binding decisions, enforceable similarly to civil court orders.

- Duties: Their primary duty is to adjudicate major disputes with broad implications, ensuring
fairness and providing expedited relief for issues that significantly impact the country or multiple
states.

6. Works Committees (Section 3):

- Powers: Works Committees have an advisory role and are responsible for addressing
workplace grievances and recommending solutions to management. They play a crucial role in
the day-to-day handling of minor disputes.

- Duties: Their main duty is to promote cooperation and harmony between employers and
employees. By resolving minor grievances at the establishment level, they help prevent these
issues from escalating into more significant disputes.

7. Court of Inquiry (Section 6):

- Powers: Courts of Inquiry are tasked with investigating the facts of an industrial dispute but
do not have the authority to make binding decisions. They can summon witnesses, collect
evidence, and examine relevant material for fact-finding purposes.

- Duties: The Court of Inquiry’s role is to conduct a thorough investigation and provide a
factual report to the government. This report aids in the further adjudication or resolution of the
dispute.

Summary:

- Conciliation Officers: Facilitate dispute resolution through mediation and report outcomes.

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- Boards of Conciliation: Handle more complex disputes, facilitate negotiations, and report
results to the government.

- Labour Courts: Adjudicate specific employment disputes and ensure compliance with labor
laws.

- Industrial Tribunals: Address complex industrial issues and provide binding decisions.

- National Tribunals: Resolve disputes of national importance with binding authority.

- Works Committees: Address and resolve workplace issues, promoting cooperation.

- Court of Inquiry: Investigate and report on dispute facts to guide further resolution.

Collectively, these authorities ensure that industrial disputes are addressed through structured,
legal processes, maintaining industrial peace and fostering harmonious labor relations.

Question 4 B) Discuss Reference to Dispute to Boards.

Ans: Under the Industrial Disputes Act, 1947, the Board of Conciliation is a key mechanism for
resolving industrial disputes between employers and employees. This preliminary method aims
to encourage amicable settlements through mediation and negotiation before disputes escalate
into legal actions or strikes/lockouts.

1. Board of Conciliation:

- Formation: The Board of Conciliation is a temporary body established by the government

when initial conciliation efforts by a single Conciliation Officer fail or when the dispute demands
a more comprehensive approach. It comprises a Chairman and two to four other members,
ensuring equal representation of employers and employees to foster impartiality.

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2. Legal Framework:

(Section 5 – Constitution)

- Appointment: The appropriate government (central or state) appoints the Board of

Conciliation.

- Composition: The Board includes a Chairman, who is independent, and an equal number of
members representing both employers and employees to ensure balanced perspectives.

(Section 10 – Reference of Disputes)

- Referral Process: The government can refer disputes to the Board of Conciliation either on
its own initiative or at the request of the parties involved. This process applies to various issues,
including wages, working conditions, and disciplinary actions.

- Public Utility Services: For disputes in public utility services, referral to the Board is
mandatory before a strike or lockout can be legally declared.

3. Powers of the Board:

- Summoning: The Board can summon witnesses and request relevant documents.

- Hearings: It conducts hearings to understand the positions of both parties and facilitate
negotiations.

- Settlement Promotion: The Board aims to encourage voluntary settlements through dialogue
but does not have the authority to enforce decisions or issue binding awards.

- Investigatory Powers: It investigates the facts and circumstances surrounding the dispute to
propose fair resolutions.

4. Duties of the Board:

- Investigation and Mediation: The Board’s main duty is to mediate between the disputing
parties and work towards a mutually acceptable resolution.

- Reporting: If a settlement is reached, the Board reports the outcome to the government,
which then makes it binding. If a settlement is not reached, the Board submits a failure report
with recommendations for further action, such as referral to a Labour Court or Tribunal.

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 - Impartiality: The Board must maintain impartiality, ensuring that both parties are fairly
heard and that the conciliation process remains unbiased.

5. Role in Dispute Resolution:

- Mediatory Focus: Unlike Labour Courts or Tribunals, the Board of Conciliation focuses on
mediation rather than adjudication, seeking to bridge gaps between the disputing parties through
negotiation.

- Escalation: If the Board’s efforts fail, the dispute may be escalated to a higher adjudicatory
body like a Labour Court or Industrial Tribunal for a binding decision.

6. Importance of the Board:

- Preventing Industrial Action: By providing a platform for dispute resolution, the Board
helps avoid strikes and lockouts, thereby maintaining industrial peace.

- Early Dispute Resolution: The Board offers an early opportunity to resolve disputes,
preventing escalation into more serious conflicts.

- Public Interest Protection: For essential services, the Board’s involvement ensures that
critical services are not disrupted due to disputes.

7. Practical Example:

- If a factory faces a wage dispute and initial conciliation fails, the trade union might request
government intervention. The government would then refer the dispute to a Board of
Conciliation. The Board would meet with both parties, attempt to mediate a compromise, and if
successful, report the settlement to the government. If the mediation fails, the Board would
submit a failure report, and the dispute could be escalated to a Labour Court or Tribunal.

Conclusion: The Board of Conciliation is a crucial element of the Industrial Disputes Act,
serving as a mediator to resolve disputes through negotiation and dialogue. While it cannot issue
binding decisions, its role in facilitating voluntary settlements is essential for maintaining
industrial peace and minimizing the impact of labor disputes on operations and public services.

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Question 4 C) Discuss the mechanism of Courts and Tribunals under Industrial Disputes
Act.

Ans: Under the Industrial Disputes Act, 1947, the resolution of industrial disputes is managed
through various adjudicating authorities, including Labour Courts, Industrial Tribunals, and the
National Tribunal. Section 10 of the Act outlines the procedures for referring disputes to these
bodies, with the government playing a pivotal role in determining the appropriate authority for
adjudication. These bodies handle different types of disputes—rights disputes and interest
disputes.

1. Labour Courts (Section 10(1)(c)):

- Role: Labour Courts are tasked with resolving disputes primarily related to rights issues, as
outlined in the Second Schedule of the Act. These disputes typically involve claims about
existing legal rights of workers.

- Types of Disputes: The Second Schedule includes issues such as:

- Dismissal or discharge of employees.

- Legality of strikes or lockouts.

- Retrenchment of workers.

- Scope: While disputes involving less than 100 workers may also be referred to Labour Courts
if they fall under the Third Schedule (reserved for Industrial Tribunals), the general approach is
to handle such disputes routinely unless deemed frivolous or vexatious.

2. Industrial Tribunals (Section 10(1)(d)):

- Role: Industrial Tribunals deal with more complex disputes that fall under the Third
Schedule, which includes broader interest issues related to employment conditions.

- Types of Disputes: The Third Schedule encompasses matters such as:

- Wages and allowances.

- Hours of work and rest intervals.

- Bonuses and other benefits.

- Scope: Industrial Tribunals have broader jurisdiction compared to Labour Courts, handling
disputes that affect workers' terms and conditions on a larger scale.

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3. National Tribunal (Section 10(1A)):

- Role: The National Tribunal is designated for disputes of national importance or those
affecting industrial establishments across multiple states.

- Scope: The Central Government refers disputes to the National Tribunal when local
adjudicating bodies cannot adequately address the issue, due to its national or interstate
implications.

4. Order of Reference and Its Importance:

- Procedure: Orders of reference under Section 10(1) must be in writing, clearly stating the
existence of the dispute and the reference. Though no specific form is prescribed, clarity is
essential to define the jurisdiction of the Tribunal and to avoid ambiguities.

- Case Law: In Express Newspapers Ltd. v. Their Workmen, it was highlighted that vague
or poorly drafted reference orders can lead to unnecessary disputes and delay litigation.
Therefore, precise drafting is crucial.

5. Powers of the Government to Amend or Cancel the Reference Order:

- Supreme Court Ruling: In State of Bihar v. D.N. Ganguly, the Supreme Court ruled that
the government cannot cancel or withdraw a reference order once it has been made. The power
to make a reference does not include the power to cancel it.

- Amendments: The government can correct typographical or clerical errors in the reference
order or clarify/amplify the reference, as long as these amendments do not introduce new
material that alters the essence of the original reference. The principle is that amendments should
not change the nature of the relief sought.

Conclusion: Section 10 of the Industrial Disputes Act plays a crucial role in the referral of
disputes to the appropriate adjudicating authorities—Labour Courts, Industrial Tribunals, or the
National Tribunal. Proper drafting of reference orders is essential for defining the jurisdiction
and ensuring efficient resolution of disputes. While the government’s ability to amend reference
orders is limited to corrections and clarifications, it cannot withdraw or cancel a reference once
made, ensuring the stability and continuity of the dispute resolution process.

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