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Anil Sood v. Presiding Officer, Labour Court Ii

Anil Sood
v.
Presiding Officer, Labour Court Ii

(Supreme Court Of India)

C. A. No. 7092/2000 | 01-12-2000


Leave granted.

A reference was made under the Industrial Disputes Act to the Labour Court in respect of a dispute between the parties to this proceeding. An award was made on September 11, 1995. An application was filed by the appellant on November 6, 1995 averring that he had no notice of the proceedings in the reference. That application came to be dismissed on the ground that the Labour Court has become functus officio having passed an award. Thereupon a writ petition was filed before the High Court which also did not end in their favour. Hence this appeal.

Learned counsel for the appellant submitted that there are ample powers with the Labour Court to set aside the award made ex parte if sufficient cause is shown as enunciated by this Court in Grindlays Bank Ltd. v. Central Government Industrial Tribunal and Others, 1980 SC 88 : 1981-I-LLJ-327.

Learned counsel for the respondents submitted that in fact a finding had been recorded by the Labour Court in the award that the appellant had been served with notice and in spite of which did not appear. Therefore in the proceedings he had been set ex parte. He submitted that material is sufficient to hold that there was service of notice upon the appellant and hence there is no cause for the appellant to come before this Court against rejection of the application made by the Labour Court which has been affirmed by the High Court in a writ proceeding.

This Court in Grindlays Bank Ltd., case (supra) examined the scheme of the provisions under the Industrial Disputes Act and enunciated that Section 11 of the Industrial Disputes Act conferred ample powers upon the Tribunal to devise its own procedure in the interest of justice which includes powers which bring out the adjudication of an existing industrial dispute. Sub-sections (1) and (3) of Section 11 of the Act thereby indicate the difference between procedure and powers of the Tribunal under the Act while the procedure is left to be devised by the Tribunal to suit carrying out its functions under the Act, the extent of powers of Civil Court are clearly set out.The aspect that the party against whom award is to be made due opportunity to defend has to be given is a matter of procedure and not that of power in the sense in which the language is adopted in Section 11. When matters are referred to the Tribunal or Court they have to be decided objectively and the Tribunals/Courts have to exercise their discretion in a judicial manner without arbitrariness by following the general principles of law and rules of natural justice.

The power to proceed ex parte is available under Rule 22 of the Central Rules which also includes the power to inquire whether or not there was sufficient cause for the absence of a party at the hearing, and if there is sufficient cause shown which prevented a party from appearing, then if the party is visited with an award without a notice which is a nullity and therefore the Tribunal will have no jurisdiction to (sic) proceed and consequently, it must necessarily have power to set aside the ex parte award.

If this be position in law both the High Court and the Tribunal fell into an error in stating that the Labour Court had become functus officio after making the award though ex parte. We set aside the order made and the award passed by the Labour Court and affirmed by the High Court in this regard, in view of the fact that the learned counsel for the respondent conceded that application filed by the appellant be allowed, set aside the ex parte award and restore the reference. To decide the matter afresh, the parties shall appear before the Labour Court on December 11, 2000 to take further directions as regards the proceedings. As the matter is very old, it would be appropriate for the Labour Court to dispose of this reference as expeditiously as possible but not later than six months from today.Appeal is allowed accordingly.

C.A. No. 7091/2000 @ SLP(C) No. 12758/1997

Leave granted.

The questions that arise in this appeal are identical to those considered by us in C.A. No. 7094/2000 arising out of SLP(C) No. 12759/1997). In view of the decision in the said appeal and for the reasons stated therein, this appeal is allowed in the same terms as setforth therein. The parties shall appear before the Labour Court on December 11, 2000 to take further directions as regards the proceedings. As the matter is very old, it would be appropriate for the Labour Court to dispose of this reference as expeditiously as possible but not later than six months from today. The appeal is allowed.

Advocates List

For

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE JUSTICE B. N. AGARWAL

HON'BLE JUSTICE S. R. BABU

Eq Citation

2001 (89) FLR 229

(2001) 10 SCC 534

(2001) 2 UPLBEC 1043

(2001) 1 LLJ 1113 (SC)

JT 2001 (3) SC 240

2001 (2) SCALE 193

LQ/SC/2000/1892

HeadNote

B. Industrial Disputes Act, 1947 — Ss. 11, 17 and 25-F — Reference to Labour Court — Ex parte award — Setting aside — Labour Court becoming functus officio — Held, Labour Court has ample powers to set aside award made ex parte if sufficient cause is shown — Ex parte award is a nullity — Labour Court has power to set aside ex parte award — Industrial Disputes Act, 1947, Ss. 11, 17 and 25-F — Natural justice — Ex parte proceedings — Validity