The Industrial Disputes Act, 1947 makes provision for the investigation and

settlement of industrial disputes and for certain other purposes.

It ensures progress of industry by bringing about harmony and cordial
relationship between the employers and employees.
Definitions of the words ‘industrial dispute, workmen and industry’ carry specific
meanings under the Act and provide the framework for the application of the Act.
In the case of Workmen of Dimakuchi Tea Estate v. Dimakuchi Tea Estate,
AIR 1958 S.C. 353, the Supreme Court laid down following objectives of the Act:
(i) Promotion of measures of securing and preserving amity and good
relations between the employer and workmen.
(ii) Investigation and settlement of industrial disputes between
employers and employers, employers and workmen, or workmen
and workmen with a right of representation by registered trade
union or federation of trade unions or an association of
employers or a federation of associations of employers.
(iii) Prevention of illegal strikes and lock-outs.
(iv) Relief to workmen in the matter of lay-off and retrenchment.
(v) Promotion of collective bargaining.
This Act extends to whole of India. The Act was designed to provide parties
to resort to industrial arbitration for the resolution of existing or
apprehended disputes without prescribing statutory norms for varied
and variegated industrial relating norms. This being the object of the Act,
the Court by interpretative process must strive to reduce the field of conflict
and expand the area of agreement and show its preference for
upholding agreements sanctified by mutual decisions.

Section 2(j) defines industry, industry" means any business, trade, undertaking,
manufacture or calling of employers and includes any calling, service,
employment, handicraft, or industrial occupation or avocation of workmen
The definition read as a whole denotes a collective which employers and
employees are associated. It does not consist either by employers
alone or by employees alone. An industry exists only when there is
relationship between employers and employees, the former engaged in
business, trade, undertaking, manufacture or calling of employers and the latter
engaged in any calling, service, employment, handicraft or industrial occupation
or avocation.
"Undertaking" means anything undertaken, any business, work or project which
one engages in or attempts, or an enterprise
MANY SC JUDGEMENTS:
an activity systematically or habitually undertaken for the production or
distribution of goods or for the rendering of material services to the community
at large or a part of such community- with, the help of employees is an
undertaking. involves the cooperation of the employer and the employees; and
its object is the satisfaction of material human needs
TRIPLE TEST:
(i), systematic activity, (ii) organised by cooperation between employer and
employee, , (iii) for the production and/or distribution of goods and services
calculated to satisfy human wants and wishes
1. charitable places, non profit org anything that fits into the above three tests
cannot be excluded from the definition of industry
Whether Municipal corporation can be regarded as an industry
question was decided by the court in D.N. Banerjee v. P.R. Mukherjee.
Sanitary Inspector on charges for negligence, insubordination and indiscipline.
The Municipal Workers Union of which the dismissed employees were members
questioned the propriety of the dismissal and the matter was referred to the
Industrial Tribunal.
Since connected to local dovt it does not come under industry and hence
shouldn’t be refered to industrial tribunal.
Hospital:
The mere fact that payment is accepted in respect of some beds cannot lead to
the inference that the hospitals are run as a business in a commercial way.
Primarily, the hospitals are meant as free service by the Government to the
patients without any profit motive". Overruled and held Bangalore Water Supply
case on the subject it can be said that such hospitals as are run by the
Government as part of its sovereign functions with the sole object of rendering
free service o the patients are not industry. But all other hospitals, both public
and private; whether charitable or commercial would-be industry if they fulfil the
triple test laid down in Bangalore Water Supply v. A. Rajappa.
Educational institutions
Bangalore Water Supply v. A. Rajappa the present position is that the
educational institutions including the university are industry in a limited sense.
Now those employees of educational institutions who are covered by the
definition of workman under Section 2(s) of the Industrial Disputes Act, 1947 will
be treated as workman of an industry.
Amended definition of ‘industry’ under the Industrial Disputes (Amendment) Act,
1982
(j) “Industry” means any systematic activity carried on by co-operation between
an employer and his workmen (Whether such workmen are employed by such
employer directly or by or through any agency, including a contractor) for the
production, supply or distribution of goods or services with a view to satisfy
human wants or wishes (not being wants or wishes which are merely spiritual or
religious in nature), whether or not:
i. any capital has been invested for the purpose of carrying on such activity; or
ii. such activity is carried on with a motive to make any gain or profit,
1) Any agricultural operation except where such agricultural operation is carried
on in an integrated manner with any other activity
2) hospitals or dispensaries; or
3) educational, scientific, research to training institutions
4) Charitable
5) Village industries
6) Any activity of govt
7) Domestic service
8) Profession practiced less than 10
9) Activity carried on by club(less than 10)

“Definition of Appropriate Government” According to Section 2 (a) of the

Act, the term ‘Appropriate Government’ to include both the Central and State
Government and lays down their respective dominions in relation to industrial
disputes. T
(i) Industrial disputes concerning any industry carried on by or
under authority of the Central Government, the Central
Government is an Appropriate Government.
(ii) (ii) Industrial disputes concerning any industry carried on by
Railway Company, the Central Government is an Appropriate
Government;
(iii)(iii) Industrial disputes concerning any industry which is a
controlled industry, the Central Government is an Appropriate
Government(should be specified that its central govt)
Industrial disputes concerning any industry which are
established under the provisions of any Central legislation,
the Central Government is an Appropriate Government.
- In relation to any other industrial disputes,
Appropriate Government would be the State
Government.
“under the authority of Central Government”. where an agent or servant acts
under such authority of his principal. These words mean much the same as ‘on
behalf of, The expression ‘carried on by or under the authority of the Central
Government’ involves a direct nexus with the industry, through servants or
agents of the Central Government.
Bharat Glass Works Pvt. Ltd. v. State of West Bengal (controlled industry)
For an industry to be carried on under the authority of the Central Government it
must be an industry belonging to the Central Government i.e. its own
undertaking”
“merely because the manufacture of salt was carried on by the company under
a license from Government, it cannot become a Government business or one
carried on under authority of the Government”.
According to the interpretation of this provision, no industry carried on by a
private person or a limited company can be a business carried on by or under
the authority of the Government
“Applying the well known principles of jurisdiction, a court or tribunal would have
jurisdiction if the parties reside within its jurisdiction or if the subject matter of
the dispute substantially arises within its jurisdiction. And, therefore, the correct
approach to the question is to ask ourselves – where did the dispute
substantially arise?”
The principle established in the above two cases was followed by the Supreme
Court in workmen of Sri Rangavilas Motors (P) Ltd. v. Sri Rangavilas Motors (P)
Ltd., and later in Hindustan Aeronautics Ltd. v. their workmen, In Sri Rangavilas
Motors case the Court laid down a test “where did the dispute arise?
if there is a separate establishment and the workman is working in that
establishment, the dispute would arise at that place, but what if there is an
existence of a separate branch? State wherever it is located and not the
headquarters.
, according to which there can be two Appropriate Governments for the same
dispute and a reference by either of them can be valid.
“It seems reasonable and fairly clear that there can be only one Government
which can be regarded as the Appropriate Government for the purpose of
making a reference of industrial dispute. The consequences of holding that more
than one Government can refer the same industrial dispute for adjudication
appear to us to be startling.”
despite various decisions of High Courts, it is really painful that after a lapse of
sufficient time spent on adjudication of dispute and the award was rendered, the
courts quash the award on jurisdictional grounds because the Government which
initially referred the dispute for adjudication was not the Appropriate
Government in the opinion of those courts. Until the definition is suitably
amended to provide for such situations, it is better that the principle of
simultaneous jurisdiction of two Appropriate Governments is recognized, so that
awards made by the tribunals shall be quashed on such technical grounds.

Works Committee
Section 3 of the Act provides that the appropriate Government may by general or
special order require the employer to constitute in the prescribed manner a
Works Committee in industrial establishments, where 100 or more workmen are
employed or have been employed on any working day in the preceding 12
months. The Works Committee will be comprised of the representatives of
employers and workmen engaged in the establishment. 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 [Section
3(2)].
Voluntary Arbitration under Sec 10A
 When Conciliation Officer or Board of Conciliation fails to resolve
conflict/dispute, parties can be advised to agree to voluntary arbitration for
settling their dispute.
For settlement of differences or conflicts between two parties, arbitration is an
age old practice in India. The Panchayat system is based on this concept. In the
industrial sphere, voluntary arbitration originated at Ahmedabad in the textile
industry under the influence of Mahatma Gandhi.
Provision for it was made under the Bombay Industrial Relations Act by the
Bombay Government along with the provision for adjudication, since this was
fairly popular in the Bombay region in the 40s and 50s.
The Government of India has also been emphasizing the importance of
voluntary arbitration’ for settlement of disputes in the labour policy chapter in
the first three plan documents, and has also been advocating this step as an
essential feature of collective bargaining.
This was also incorporated in the Code of Discipline in Industry adopted at the
15th Indian Labour Conference in 1958.
Parties were enjoined to adopt voluntary arbitration without any reservation. The
position was reviewed in 1962 at the session of the Indian Labour Conference
where it was agreed that this ‘step would be the normal method after
conciliation effort fails, except when the employer feels that for some
reason, he would prefer adjudication. In the Industrial Trade Resolution also
which was adopted at the time of Chinese aggression, voluntary arbitration
was accepted as a must in all matters of disputes. The Government had
thereafter set up a National Arbitration Board for making the measure
popular in all the states, and all efforts are being made to sell this idea
to management and employees and their unions. In 1956 the
Government decided to place voluntary arbitration as one of the
measures for settlement of a dispute through third party intervention
under the law. Sec. 10A was added to the Industrial Disputes Act, and it was
enforced from 10th March, 1957.
Definition of Award
Section 2(b) of the Industrial Dispute Act, 1947 defines Award as follows -
According to Section 2(b) of the Industrial Disputes Act, 1947 Award means an
interim or a final determination of any Industrial Dispute or of any question
relating thereto by any Labour Court, Industrial Tribunal or National Industrial
Tribunal and includes arbitration award made under section 10A
a) An Award is an interim or final determination of an industrial dispute.
b) It is an Interim or final determination of any question relating to such dispute.
c) Such interim or final determination is made by any Labour Court, Industrial
Tribunal or National Industrial Tribunal.
d) Award of Arbitrators under section 10A is an award.
According to Section 2 (p) of the Industrial Dispute Act, 1947 Settlement means a
settlement arrived at in the course of conciliation proceeding and includes a
written agreement between the employer and workmen arrived at otherwise
than in the course of conciliation proceeding where such agreement has been
signed by the parties thereto in such manner as may be prescribed and a copy
thereof has been sent to an officer authorized in this behalf by the appropriate
Government and the conciliation officer.
A settlement shall come into operation on such date as is agreed upon by the
parties to the dispute, and if no date is agreed upon, on the date on which the
memorandum of the settlement is signed by the parties to the dispute. Such
settlement shall be binding for such period as is agreed upon by the parties, and
if no such period is agreed upon, for a period of six months from the date on
which the memorandum of settlement is signed by the parties to the dispute,
and shall continue to be binding on the parties after the expiry of the period
aforesaid, until the expiry of two months from the date on which a notice in
writing of an intention to terminate the settlement is given by one of the parties
to the other party or parties to the settlement.
An award shall, subject to the provisions of this section, remain in operation for a
period of one year from the date on which the award becomes enforceable under
section 17A. Provided that the appropriate Government may reduce the said
period and fix such period as it thinks fit: Provided further that the appropriate
Government may, before the expiry of the said period, extend the period of
operation by any period not exceeding one year at a time as it thinks fit so,
however, that the total period of operation of an award does not exceed three
years from the date on which it came into operation.
the award was that of a Labour Court or to a Tribunal, if the award was that of a
Tribunal or of a National Tribunal, for decision whether the period of operation
should not, by reason of such change, be shortened and the decision of Labour
Court or the Tribunal, as the case may be on such reference shall be final.
A settlement is an agreement reached among the parties to a workers'
compensation claim.
An award, on the other hand, is granted to you by the workers' compensation
court.