UNION COMMERIAL BANK LIMITED Vs. THEIR WORKMEN
LAWS(SC)-1951-3-12
SUPREME COURT OF INDIA
Decided on March 09,1951

UNION COMMERCIAL BANK LIMITED Appellant
VERSUS
IR WORKMEN Respondents

JUDGEMENT

- (1.) In these appeals the question whether the Industrial Tribunal ( Bank Disputes) had jurisdiction to make the awards has been directed by the Ct. to be tried as a preliminary issue. The decision depends on the true construction of Ss. 7, 8, 15 and 16 Industrial Disputes Act. On this question, the agreed statement of facts shown that by a notfn. of the Govt. of India dated 13-6-1949, the Central Govt. constituted an Industrial Tribunal for the adjudication of industrial disputes in banking cos. consisting of Mr. K. C. Sen, Chairman, Mr. S. P. Varma and Mr. J. N. Mazumdar. A second notfn. dated 24-8-1949 was thereafter issued as follows: "In exercise of the power conferred by sub s. (1), S. 8, Industrial Disputes Act, the Central Govt. was pleased to appoint Mr. N. Chandrasekhara Aiyar as a member of the Industrial Tribunal constituted by the notfns. of the Govt. of India in the Ministry of Labour dated 13-6-1949, in the place of Mr. S. P. Varma whose services have ceased to be available" The Tribunal commenced its regular sittings at Bombay from the 12 to 16-9-1949. It thereafter sat at Delhi and Patna between 19-9-1949 and 3-4-1950. Further sittings were held, at some of which Mr. Chandrasekhara Aiyar was absent from 23-11-1949 to 20-2-1950 as his services were placed at the disposal of the Ministry of External Affairs as a member of the Indo-Pakistan Boundary Disputes Tribunal. Between 23-11-1949 and 20-2-1950 , Mr. Sen and Mr. Mazumdar together sat at several places and made certain awards. Those awards have been accepted by the Govt. u/S. 15 of the Act and published in the Gazette as the awards of the Tribunal. The Tribunal held its sittings in Bombay to hear general issues from 16-1-1950 and concluded them on 3-4-1950 . In the agreed statement of facts, it is stated that the services of Mr. Chandrasekhara Aiyar were not available to the Tribunal from the afternoon of 23-11-1949 to the forenoon of 20-2-1950. From 16-1-1950 upto 20-2-1950, several matters, particularly including 15 items covering, inter alia, Issues 1, 2, 3, 4, 15, 23, 27, 28, 33, 34, 37 and dealing with the question of the jurisdiction of the Tribunal in respect of officers regarding bank having branches in more than one Province and banks in liquadation, question of retrospective effect to be given to the award, question relating to provident and guarantee fund and allowances to special categories of workmen, were dealt with by the Tribunal. From the notes of the proceedings of the Tribunal it appears that as numerous banks and workmen were parties to the proceedings, some workmen who had not found it convenient to attend throughout appeared and put forth their views in respect of the aforesaid issues and questions after Mr. Chandrasekhara Aiyar started his work from the afternoon of 20-2-1950 again by sitting with Mr. Sen and Mr. Mazumdar.
(2.) The jurisdiction of the Tribunal of the aforesaid three persons to make the award is disputed on two grounds. (1) That when Mr. Chandrasekhara Aiyar's services ceased to be available as mentioned in the agreed statement of facts, the remaining two members had to be re-appointed to constitute a Tribunal. (2) That when Mr. Chandrasekhara Aiyar began to sit again with Mr. Sen and Mr. Mazumdar from the forenoon of 20-2-1950, it was imperative to issue a notfn. constituting a tribunal u /S. 7 of the Industrial Disputes Act. The argument is that in the absence of Mr. Chandrasekhara Aiyar the two members had no jurisdiction to hear anything at all without the appropriate notfn. and that Mr. Chandrasekhara Aiyar's services having ceased to be available on 23-11-1949, he cannot sit again with the other two members to form the Tribunal in the absence of a notfn. u /S. 7.
(3.) In order to appreciate the correct position, it is necessary to consider the scheme of the Industrial Disputes Act. It envisages the establishment of a Conciliation Board, a Ct. of Inquiry and a Tribunal for adjudication. Relevant portions of Ss. 5, 6, 7, 8, 15 and 16 of the Act which only are material for the present discussion run as follows : 5.(1) "The appropriate Govt. may as occasion arises by notfn. in the official Gazette constitute a Board of Conciliation for promoting the settlement of an industrial dispute. (2) A Board shall consist of a chairman and two or four other members, as the appropriate Govt. thinks fit. (3) The chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party : (4) A Board, having the prescribed quorum may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number. Provided that if the appropriate Govt. notifies the Board that the services of the chairman or any other member have ceased to be available, the Board shall not act until a new chairman or member, as the case may be, has been appointed. " 6.(1) "The appropriate Govt. may as occasion arises by notfn. in the official Gazette constitute a Ct. of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute. (2) A Ct. may consist of one independent person or of such number of independent persons as the appropriate Govt. may think fit and where a Ct. consists of two or more members, one of them shall be appointed as the chairman. (3) A Ct. having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number. Provided that, if the appropriate Govt. notifes the Ct. that the services of the chairman have ceased to be available, the Ct. shall not act until a new chairman has been appointed." 7.(1) "The appropriate Govt. may constitute one or more Industrial Tribunals for the adjudication of industrial disputes in accordance with the provisions of this Act. (2) A Tribunal shall consist of such number of member as the appropriate Govt. thinks fit. Where the Tribunal consists of two or more members, one of them shall be appointed as the chairman. (3) Every member of the Tribunal shall be an independent person, (a) who is or has been a Judge of a H. C. or a Dist. J. or (b) is qualified for appointment as a Judge of a H. C. : Provided that the appointment to a Tribunal of any person not qualified under part (a) shall be made in consultation with the H. C. of the Province in which the Tribunal has or is intended to have, its usual place of sitting. " 8. (1) "If the services of the chairman of a Board or of the chairman or other member of a Ct. or Tribunal cease to be available at any time the appropriate Govt. shall, in the case of a chairman, and may in the case of any other member, appoint another independent person to fill the vacancy and the proceedings shall be continued before the Board. Ct. or Tribunal so reconstituted. (2) Where a Ct. or Tribunal consists of one person only and his services cease to be available the appropriate Govt. shall appoint another independent person in his place, and proceedings shall be continued before the person so appointed. (3) Where the services of any member of a Board other than the chairman have ceased to be available, the appropriate Govt. shall appoint in the manner specified in sub-s. (3), S. 5 another person to take his place, and the proceedings shall be continued before the Board so reconstituted." 15. (1) "Where an industrial dispute has been refd. to a Tribunal for adjudication, it shall hold its proceedings expeditiously and shall, as soon as practicable on the conclusion hereof, submit its award to the appropriate Govt. (2) On receipt of such award, the appropriate Govt. shall by order in writing declare the award to be binding : (4) Save as provided in the proviso to sub-s. 8, S.19, an award declared to be binding under this section shall not be called in question in any manner." 16. "The report of a Board or Ct. and the award of a Tribunal shall be in writing and shall be signed by all the members of the Board, Ct. or Tribunal, as the case may be: Provided that nothing in this section shall be deemed to prevent any member of the Board, Ct. or Tribunal from recording a minute of dissent from a report or award from any recommendation made therein.";


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