TOPIC: AN ACCOUNT OF DIFFERENT AUTHORITIES

UNDER INDUSTRIAL DISPUTES ACT, 1947

DIVISION: FY. LLB – C

ROLL NO.: 131

NAME OF SUBJECT: LABOUR LAW

 INTRODUCTION
The Industrial Disputes Act, 1947 was enacted in the post-independence era with a view to regulate the
relationships of the employer and employee and to maintain peace and harmonious relations between the
two. An Act to make provision for the investigation and settlement of industrial disputes, and for certain
other purposes. The main and ultimate objective of this act is "Maintenance of Peaceful work culture in the
Industry in India" which is clearly provided under the Statement of Objects & Reasons of the statute.

The laws apply only to the organised sector. Chapter V talks about the most important and often in news
topic of 'Strikes and Lockouts'. It talks about the Regulation of strikes and lockouts and the proper procedure
which is to be followed to make it a Legal instrument of 'Economic Coercion' either by the Employer or by
the Workmen. Chapter V-B, introduced by an amendment in 1976, requires firms employing 300 or more
workers to obtain government permission for layoffs, retrenchments and closures. A further amendment in
1982 (which took effect in 1984) expanded its ambit by reducing the threshold to 100 workers.

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. Unfair labour practices on part of an employer or a trade union or workers.
 IMPORTANCE
The major legislations which can be examined as a part of the historical overview of the Industrial Disputes
Act, 1947 (hereinafter referred to as the “ID Act”) are the Employers and Workmen (Disputes) Act, 1860
and the Trade Disputes Act, 1929.

The Trade Disputes Amendment Act of 1938 provided for the appointment of Conciliation Officers who had
the duty of mediating and promoting settlement. This remained until Rule 81A of the Defence of India Rules
1939 was invoked to overcome the difficulties of the 1929 Act. These rules gave the government emergency
powers to regulate industrial disputes, and through these rules, strikes were banned in public utility service
sectors, and it was made compulsory to refer industrial disputes for adjudication and settlement. In 1947, the
Industrial Disputes Act was passed. It governs industrial disputes, individual disputes, and other
contingencies such as retrenchments, lockouts, layoffs, closure et cetera. It provides for the appointment of
Conciliation Boards, Conciliation Officers, Courts of Inquiry, and Industrial Tribunals. In 1956, the Act was
amended to provide for setting up of Labour Courts and national industrial tribunals. The subject labour
comes in the concurrent list in Schedule VII of the Indian Constitution, and therefore, though the Industrial
Disputes Act is national legislation, several states have amended the Act to suit their own needs, while some
have enacted state legislation also.
 AUTHORITIES UNDER INDUSTRIAL DISPUTES ACT, 1947

AUTHORITIES

CONCILIATING ADJUDICATING
INQUIRY
AUTHORITIES AUTHORITIES

1.Works Committee 1. Court of Inquiry 1. Labour Court

2.Conciliating Officer 2. Industrial Tribunal
3.Board of Conciliation 3. National Tribunal

I] CONCILIATING AUTHORITIES

1. WORKS COMMITTEE (SECTION 3)

The works committee is a committee consisting of representatives of employers and workmen (Section3).
The works committee is a forum for explaining the difficulties of all the parties. The function of the working
committee is to ascertain the grievances of the employees and to arrive at some agreement. The committee is
formed by general or special order by the appropriate Government in an industrial establishment in which
100 or more workmen are employed or have been employed on any day in the preceding 12 months. It
consists of the representatives of employers and workmen engaged in the establishment.

It shall be the duty of the working committee to promote measures for securing and preserving amity and
good relations between the employers and workmen and, to that end, to comment upon matters of their
common interest or concern and to endeavour to compose any material difference of opinion in respect of
such matters and decision of the works committees are not binding.

The Works Committees are normally concerned with problems arising in the day to day working of the
concern and the functions of the Works Committees are to ascertain the grievances of the employees and
when occasion arises to arrive at some agreement also1.

_________________
1
Kemp & Company Ltd. v. Workmen (1955)
2. CONCILIATION OFFICER (SECTION 4)

For promoting and settlement of industrial disputes the appropriate Government may by notification in the
Official Gazette, appoint such number of conciliation officer as it thinks fit. The main objective of
appointing conciliation officer is to create congenial atmosphere within the industry and reconcile the
disputes of the workers and the employers. He 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.

The duty of the conciliation officer is not judicial but administrative. He has to hold conciliation
proceedings, investigate the disputes and do all such things as he thinks fit for the purpose of inducing the
parties to arrive at a fair settlement of the disputes. The conciliation officer is entitled to enter an
establishment to which the dispute relates, after reasonable notice and also to call for and inspect any
document which he considers relevant. He has to send a report and memorandum of settlement to
appropriate Government. The report by the conciliation officer has to be submitted within 14 days of the
commencement of the conciliation proceeding or shorter period as may be prescribed by the appropriate
Government. The conciliation officer has the power to enter the premises as well can call for and inspect
documents.

3. BOARDS OF CONCILIATION (SECTION 5)

The appropriate Government may by notification in the Official Gazette, constitute a Board of Conciliation
for the settlement of industrial disputes. The Board shall consist of a Chairman and 2 or 4 other members in
equal numbers representing the parties to the disputes as the appropriate Government thinks. The Chairman
shall be an independent person. Where the appropriate Government is of the opinion that any industrial
disputes exist in an industry, it may refer by order in writing to the Board of Conciliation for settling
industrial disputes.

The Board of Conciliation has to bring about a settlement of the dispute. He has to send a full report to the
Appropriate Government setting for the steps taken by the Board in case no settlement is arrived at. The
Board of Conciliation has to communicate the reasons to the parties if no further reference is made. The
Board has to submit its report within 2 months of the date on which the dispute was referred to it within the
period what the appropriate Government may think fit. The report of the Board shall be in writing and shall
be signed by all the members of the Board.
II] INQUIRY

COURT OF INQUIRY (SECTION 6)

The appropriate Government may by notification in the Official Gazette, constitute a court of inquiry into
any matter appearing to be connected with or relevant to settlement of industrial disputes having an
independent person or of such independent persons as the appropriate Government may think fit. The court
consists of two or more members one of whom shall be appointed by the Chairman. Within a period of 6
months, the court has to send a report thereon to the appropriate Government from the commencement of its
any inquiry. This period is not mandatory and it may be extended.

It has the same powers as are vested in a Civil Court under the Code of Civil Procedure 1908, in the
following matters-
1. enforcing the attendance of any person and examining him on oath,
2. compelling the production of documents and material objects,
3. issuing commissions for the examination of witnesses,
4. in respect of such other matters as may be prescribed.

The report of the Court must be signed by all the members. A member can submit a note of dissent. The
Report together with the dissenting note must be published by the appropriate Government within 30 days
from its report. A court of enquiry has no power to improve any settlement upon the parties.

III] ADJUDICATING AUTHORITIES

1. LABOUR COURT (SECTION 7)

The appropriate Government may by notification in the Official Gazette, constitute one or more Labour
Court for adjudication of industrial disputes relating to any matters specified in the Second Schedule. A
Labour Court consists of one person only to be appointed by the appropriate Government.

The main function of the Labour Court is to hold its proceedings expeditiously and submit its award as the
proceeding concludes. A person shall be presiding officer of a Labour Court unless -
1. he is or has been, a Judge of the High court,
2. he has for a period of not less than 3 years, been a District Judge or an Additional District Judge or
3. he has held any judicial office in India for not less than 7 years; or
4. he has been the presiding officer of a Labour Court constituted under any provincial Act or State Act for
not less than five years.
5. he must be an “independent” person and must not have attained the age of 65 years.
2. INDUSTRIAL TRIBUNAL (SECTION 7A)

The appropriate Government may by notification in the Official Gazette, constitute one or more Industrial
Tribunals for adjudication. A Tribunal shall consist of one person to be appointed by the appropriate
Government. The Appropriate Government may appoint two persons as assessors to advise the Tribunal.
The person shall be not qualified unless-

1. he is, a Judge of the High court,

2. he has for a period of not less than three years, been a District Judge or an Additional District Judge.
3. The appropriate Government may, if it so thinks, may appoint two persons as assessors to advise the
Tribunal in the proceeding before it.

The functions of the Tribunals are very much like those of a body discharging judicial functions, although it
is not a Court. Its power is different from that of a Civil Court. The proceedings before an Industrial Tribunal
are quasi-judicial in nature with all the attributes of a Court of Justice. The duties of Industrial Tribunal are
identical with the duties of Labour Court.

3. NATIONAL TRIBUNAL (SECTION 7B)

The Central Government may, by notification in the Official Gazette, constitute one or more National
Industrial Tribunals for the adjudication of industrial disputes. National Industrial Tribunals are involved
only in case of the questions of national importance or if they are of such a nature that industrial
establishments situated in more than one State are likely to be interested in, or affected by, such industrial
disputes. It consists of one person only to be appointed by the Central Government. The person shall not be
qualified for appointment as the presiding officer unless he is, or has been, a Judge of a High Court. Beside
these, the Central Government may, if it thinks fit, appoint two persons as assessors to advise the National
Tribunal in the proceedings before it.
 CASE LAWS

1. Vijaya Bank vs. Shyamal Kumar Lodh (2010)

Supreme Court held that Labour Court constituted under the Industrial Disputes Act, 1947, within the local
limits of whose jurisdiction the establishment is situated, has jurisdiction to decide any dispute regarding
subsistence allowance. Here in the present case undisputedly dispute pertains to subsistence allowance and
the Labour Court where the workman had brought the action has been constituted under Section 7 of the
Industrial Disputes Act, 1947 and further the appellant bank is situated within the local limits of its
jurisdiction.

2. State of Maharashtra vs. Labour Law Practitioners's Association (1986)

Bombay High Court stated that Labour Court adjudicates upon disputes which are essentially of a civil
nature. The Labour Court's functions were held as far back as 1968 to be 'quasi-civil' in nature. This must
apply to the Industrial Court. The Industrial Court has original jurisdiction under the statue. It is also a
principle Court, exercises supervision over the Labour Court and Hears Appeals from the decisions of the
Labour Courts. Accordingly, a member of the Industrial Court may well be said to be a district judge. The
Industrial Court and the Labour Court constitute a hierarchy or system of courts, the latter being inferior to
the former. The posts of Labour Court judges would, being thus inferior to the post of the district judge, i.e.,
the Industrial Court Judge, form part of the judicial service.
 CONCLUSION

The Industrial Disputes Act, 1947 is therefore considered as one of the important legislations resulting in
major transformation in the field of Labour Law. The Authorities helps in effective redressal of several
types of disputes and ensures peace and harmony between and among the stakeholders of different
industries. We can conclude, that the Industrial Disputes Act has successfully replaced the Trade Disputes
Act of 1929 by removing its deficiencies and thus resulting it fair and speedy settlement of industrial
disputes.
 BIBLIOGRAPHY

1. www.toppr.com
2. www.legalservicesindia.com
3. www.legalbites.in