H. R. Khanna, J. - (1.) This judgment would dispose of civil appeals Nos. 600, 601, 877, 878 and 1699 to 1714 of 1975 which have been filed by special leave against the judgment of Gujarat High Court dismissing petitions under Article 226 of the Constitution of India filed by the appellants. The appellant in those petitions assailed the validity of Sections 53A and 53B of the Bombay Industrial Relations Act, 1946 (Bombay Act No. 1 of 1947) (hereinafter referred to as the principal Act). These sections along with some other provisions were inserted in the principal Act by the Bombay Industrial Relations and Industrial Disputes (Gujarat Amendment) Act, 1972 (Gujarat Act No. 21 of 1972). The appellants also challenged the validity of the rules which were added to the Bombay Industrial Relation (Gujarat) Rules, 1961 as per notification dated June 4, 1973. In addition to that, the appellants challenged the validity of notification dated December 17, 1973.
(2.) The principal Act was enacted to regulate the relations of employers and employees, to make provisions for settlement of industrial disputes and certain other purposes. In 1956 the industrial policy resolution of the Government of India stated inter alia that in a socialist democracy labour is a partner in the common task of development and must participate in it with enthusiasm. Emphasis was laid upon joint consultation of workers and technicians and for associating progressively labour in the management of the industry. Stress was again laid on joint management councils at the tripartite conference held in July 1957. Representatives of labour, management and Government were present at that conference. There was, however, no statutory provision for joint management councils and whatever was down, was on a voluntary basis. Section 53A and 53B were inserted in the principal Act by Gujarat Act 21 of 1972. The two sections reads as under: "53A. (1) If in respect of any industry, the State Government is of opinion that it is desirable in public interest to take action under this section, it may, in the case of all undertakings or any class of undertakings in such industry, in which five hundred or more employees are employed or have been employed on any day in the preceding twelve months by general or special order require the employer to constitute in the prescribed manner and within the prescribed time limit a Joint Management Council, consisting of such number of members as may be prescribed, comprised of representatives of employers and employees engaged in the undertaking, so however that the number of representatives of employees on the Council shall not less than the number of representatives of the employers. Notwithstanding anything contained in this Act, the representatives of the employees on the Council shall be elected in the prescribed manner by the employees engaged in the undertaking from amongst themselves: Provided that a list of industries in respect of which no order is issued under this sub-section shall be laid by the State Government before the State Legislature within thirty days from the commencement of its first Session of each year. (2) One of the members of the Council shall be appointed as Chairman in accordance with the rules made in this behalf. 53B. (1) The Council shall be charged with the general duty to promote and assist in the management of the undertaking in a more efficient orderly and economical manner, and for that purpose and without prejudice to the generality of the foregoing provision, it shall be the duty of the Council - (a) to promote cordial relations between the employer and employees; (b) to build up understanding and trust between them; (c) to promote measures which lead to substantial increase in productivity; (d) to secure better administration of welfare measures and adequate safety measures; (e) to train the employees in understanding the responsibilities of the Management of the undertaking and in sharing such responsibilities to the extent considered feasible; and (f) to do such other things as may be prescribed. (2) The Council shall be consulted by the employer on all matters relating to the management of the undertaking specified in sub-section (1) and it shall be the duty of the Council to advise the employer on any matter so referred to it. (3) The Council shall be entrusted by the employer with such administrative functions, appearing to be connected with, or relevant to, the discharge by the council of its duties under this section, as may be prescribed. (4) It shall be the duty of the employer to furnish to the Council necessary information relating to such matters as may be prescribed for the purpose of enabling it to discharge its duties under this Act. (5) The Council shall follow such procedure in thedischarge of its duties as may be prescribed." Consequent upon the insertion of Sections 53A and 53B in the principal Act, the Bombay Industrial Relations (Gujarat) Rules were also amended and certain new rules were added. Rule 47A relates to the manner of election of two persons from amongst employees in disputes. Rule 61A reads as under: "61-A. Constitution of Joint Management Council- Any employer who is required by an order made under sub-section (1) of Section 53-A to constitute a Joint Management Council shall constitute within a period of ninety days from the date of the said order a Joint Management Council consisting of ten members, out of which the number of representatives of the employer to be nominated by the employer and the number of representatives of employees engaged in the undertaking to be elected from amongst themselves shall be such as may be determined by the employer so however that the number of representatives of the employees on the Council shall not be less than the number of representatives of the employer." Rule 61B to Rule 61T relate to election of employees' representatives on the Management Council. Rule 61U prescribes for appointment of Chairman of the Council. Rule 61V deals with the constitution of the Council from time to time and the manner of filling in the vacancies. Rule 61W relates to the number of meetings of the Council and provides that the Chairman shall also have a second or casting vote in the event of equality of votes. Rule 61X makes other provisions for the meeting while Rule 61Y deals with annual returns. Rules 61Z 61ZA and 61ZB to which reference has been made during the course of arguments as under: "61-Z. Duties of the Council. - It shall be the endeavour of the Council:- (i) to impose the working conditions of the employees; (ii) to encourage suggestions from the employees; (iii) to assist in the administration of laws and agreements; (iv) to serve generally as an authentic channel of communication between the management and the employees; (v) to create in the employees a sense of participation; (vi) to render advice, in the general administration of Standing Orders and their amendment when needed; (vii) to render advice on matters pertaining to retrenchment or rationalisation, closure, reduction in or cessation of operations. 61-ZA. Administrative functions with which the Council shall be entrusted by Employer. - The Council shall be entrusted by the employer with administrative function in respect of; (i) operation of vocational training and apprenticeship schemes; (ii) preparation of schedules of working hours and breaks and of holidays; and (iii) payment of rewards for valuable suggestions received from the employees. 61-ZB. Matters in respect of which the Council shall be entitled to receive information. - The Council shall be furnished by the employer with information in respect of; (i) general economic situation of the concern; (ii) the state of the market, production and sales programmes; (iii) organisation and general running of the undertaking; (iv) circumstances affecting the economic position of the undertaking; (v) methods of manufacture and work; (vi) the annual balance sheet and profit and loss statement and connected documents and explanation; and (vii) long term plan for expansion, re-employment etc." Impugned notification dated december 17, 1973 reads as under: "No KH-SH-1988/BIR-1073-Jh - Whereas in respect of the industry specified in the Schedule annexed hereto the State Government is of opinion that it is desirable in public interest to take action under S. 53-A of the Bombay Industrial Relations Act, 1946 (Bom. 11 of 1947), in the case of all undertakings in the said industry in which five hundred or more employees are employed or have been employed any day in the preceding twelve months. Now, therefore, in exercise of the powers conferred by sub-section (1) of the said Section 53-A, the Government of Gujarat hereby requires the employer of each such undertaking in the said industry to constitute a Joint Management Council in the manner and within the time limit specified in Rule 61-A-Q of the Bombay Industrial Relations (Gujarat) Rules, 1961. SCHEDULE Cotton Textile Industry as specified in the Government of Bombay Political and Services Department, Notification No. 2847/34-A1 dated 30th May, 1939 and the Government of Gujarat, Education and Labour Department, Notification No. BIR-1361, dated 17th July, 1961."
(3.) Although a number of contentions were advanced before the High Court to assail the validity of Section 53A and 53B as well as the rules mentioned above, before us learned Counsel for the appellants have restricted their challenge to the impugned provisions only on the ground of lack of legislative competence of the State Legislature.;