1

PROJECT REPORT
OF
LABOUR LAW
ON
AWARD AND ITS ENFORCEBILITY

SUBMITTED TO:
PROF. KUSUM CHATTWAL

SUBMITTED BY:
MANPREET KAUR
ROLL NO.39/10

ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher Prof. Kusum Chattwal
who gave me the golden opportunity to do this wonderful project on the topic Award and its
enforceability, which also helped me in doing a lot of research and I came to know about so
many new things. I am really thankful to them. Secondly I would also like to thank my
parents and friends who helped me alot in finishing this project in limited time
I am making this project not only for good marks but also to increase my knowledge. Thank
You All..

INTRODUCTION

During the post-independence era w have witnessed the development of a new jurisprudence,
namely the, Industrial Law. The Industrial Law in pre-independence days was in a
rudimentary form. But later on with the development of industry, the Industrial Law
developed side by side. The growth of this law was slow in the beginning but gained its pace
in the recent years as is evident from the bulk of cases before the Supreme Court on Industrial
Law matters. A large section of the Indian population is affected by Industrial Law. Some like
industrialists and their workmen are directly affected and many others are unconsciously
affected by these laws. The economic growth of a country depends upon the industrial
development. Therefore, the progress of a country being dependent upon the development of
industry, the Industrial Laws play an important role in the national economy of the country.
Section 1, of the act deals with scope and object of the act. The object of the industrial
relations legislation in general is industrial peace and economic justice. The prosperity of any
industry very much depend upon its growing production. The production is only possible
when the industry functions very smoothly without any interruptions. There are some other
factors that influence the production, namely absence of disputes, i.e., harmonious
relationship between the labour and the management. Therefore, every industrial relations
legislation necessarily aims at providing conditions congenial to the industrial peace.
Economic justice is another objective aimed at by such legislations. Almost all interruptions
in the production are due to industrial disputes. Dissatisfaction with the existing economic
conditions is the root cause of the industrial dispute. The history of labour struggle is nothing
but a continuous demand for fair return to labour expressed in varied form, e.g., (a) increase
in wages, (b) resistance to decrease in wages, and (c) grant of allowance and benefits etc. If a
labourer want to achieve these gains individually, he fails because of his weaker bargaining
power, the management with better economic footing stands in a better position to dictate its
term. Therefore, the economic struggle of labour with capital is fought collectively by
organised labours. If the labour organises and bargains collectively, he is definitely paced in a
position to exert greater pressure upon a capital to provide them a fair return to their labour. It
is with a view to provide economic justice by ensuring fair return to the labour that the State
as the custodian of public interest intervenes by State regulation. Economic justice has also
been ensured to the people of India by our Constitution.
The Industrial Disputes Act, 1947 extended to the whole of India. It came into operation on
the first day of April, 1947. The object of the Act laid down in preamble of the Act is to make
provisions for the investigation and settlement of industrial disputes. The object of the labour
legislation is to ensure fair wages and to prevent disputes so that production might not be
adversely affected. The principle object of the Act as analysed by the Supreme Court are as
follow:-

1. The promotion of measures for securing amity and good relations between the
employer and workmen
2. An investigation and settlement of industrial disputes between employers and
employers, employers and workmen or workmen and workmen with a right of
representation by a registered Trade Union or Federation of Trade Unions or
Associations of employers or a federation of associations of employers
3. The prevention of illegal strikes and lack-outs
4. Relief to workmen in the matter of lay-off, retrenchment and closure of an
undertaking
5. Collectively bargaining

The Industrial Disputes Act is a progressive measures of social legislation aiming at the
amelioration of the conditions of workmen in industry.
The main features of the Act are:1. Any industrial dispute may be referred to an industrial tribunal by an agreement of
parties to dispute or by the State Government if it deems it expedient so to do.
2. An award shall be binding on both the parties to the dispute for the specified period
not exceeding one year. It shall be normally enforced by the Government.
3. Strike and lock-outs are prohibited:
(i)
During the pendency of conciliation and adjudication proceedings
(ii)
During the pendency of settlements reached in the course of conciliation
proceedings
(iii)
During the pendency of awards of Industrial Tribunal declared binding by the
appropriate Government.
4. In public interest or emergency the appropriate Government has the power to declare
the transport( other than railways), coal, cotton textiles, foodstuffs and iron and steel
industries to be a public utility service for the purposes of this Act, for a maximum
period of sex months.
5. In case of lay-off or retrenchment of workmen the employer is required to pay
compensation to them.
6. Provision has also been made for payment of compensation to workmen in case of
transfer or closure of an undertaking.
7. A number of authorities such as, Court of Inquiry, Conciliations Officers, Board of
Conciliation, Works Committee, Labour Courts, and National Tribunals are provided
for powers, functions, and duties of these authorities differ from each other but each
one of them plays an important role in ensuring industrial peace.
Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods and
services irrespective of the number of workmen employed therein. Every person employed in
an establishment for hire or reward including contarct labour, apprentices and part time
employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory

work is covered by this Act. This Act though does not apply to persons mainly in managerial
or administrative capacity, persons engaged in a supervisory capacity and drawing or
executing managerial functions and persons subject to Army Act, Air Force and Navy Act or
those in police service or officer or employee of a prison.

Award
Award means an interim or final determination of any industrial dispute or of any question
relating thereto. The determination must be by any Labour Court, Industrial Tribunal or
National Tribunal. It includes an arbitration award made under section 10-A.
10A. Voluntary reference of disputes to arbitration
(1) Where any industrial dispute exists or is apprehended and the employer and the workman
agree to refer the dispute to arbitration, they may, at any time before the dispute has been
referred under section 10 to a Labour Court or Tribunal or National Tribunal by a written
agreement, refer the dispute to arbitration and the reference shall be to such person or persons
(including the presiding officer of a Labour Court or Tribunal, or National Tribunal) as an
arbitrator or arbitrators as may be specified in the arbitration agreement.
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[(1A) Where an arbitration agreement provides for a reference of the dispute to an even
number of arbitrators the agreement shall provide for the appointment of another person as
umpire who shall enter upon the reference, if the arbitrators are equally divided in their
opinion, and the award of the umpire shall prevail and shall be deemed to be the arbitration
award for the purposes of this Act.]
(2) An arbitration agreement referred to in sub-section (1) shall be in such form and shall be
signed by the parties thereto in such manner as may be prescribed.
(3) A copy of the arbitration agreement shall be forwarded to the appropriate government and
the conciliation officer and the appropriate government shall, within 72[one month] from the
date of the receipt of such copy, publish the same in the Official Gazette.
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[(3A) Where an industrial dispute has been referred to arbitration and the appropriate
government is satisfied that the persons making the reference represent the majority of each
party, the appropriate government may, within the time referred to in sub-section (3), issue a
notification in such manner as maybe prescribed; and when any such notification is issued,
the employers and workmen who are not parties to the arbitration agreement but are
concerned in the dispute, shall be given an opportunity of presenting their case before the
arbitrator or arbitrators.]
(4) The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate
government the arbitration award signed by the arbitrator or all the arbitrators, as the case
may be.
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[(4A) Where an industrial dispute has been referred to arbitration and a notification has been
issued under sub-section (3A), the appropriate government may, by order, prohibit the
continuance of any strike or lock-out in connection with such dispute which maybe in
existence on the date of the reference.]

(5) Nothing in the Arbitration Act, 1940 (10 of 1940), shall apply to arbitrations under this
section.]
The definition of award falls in two parts. The first part covers a determination, final or
interim of any industrial dispute. The second part takes in a determination of any question
relating to any industrial dispute. But, the basic postulate common to both the parts of
definition is the existence of an industrial dispute, actual or apprehended. The
determination contemplated by definition is of the industrial dispute or the question relating
thereto on merits. In order to be an award a determination must be an adjudication of a
question or point relating to an industrial dispute which has been specified in the order of
reference or is incidental thereto, and such adjudication must be one on merits.
Award includes final as well as an interim determination. The tribunal can grant only such
interim awards which they are competent to grant at the time of final award, because the
relief, which the Tribunal has no right to grant at the time of final determination, shall be
outside its authority at any stage of the proceedings.
In Hotel Imperial, New Delhi v. Hotel Workers Union,1 workmen of three hotels in New
Delhi were suspended on the charge of misconduct pending application under section 33. The
Tribunal had ordered these workmen to be paid their wages plus Rs.25/- per month in lieu of
food till final decision with regard to their dismissal. On appeal the Supreme Court Stayed the
order of the Tribunal on the condition that the workmen should be paid a sum equal to half of
the amount adjudge payable by the Tribunal in the respect of arrears accrued till then and
continue to pay a proportionate amount till the decision of the dispute. It was also contended
that tribunal could not adjudicate upon the question of interim relief because it was not
referred to it. But the Supreme Court did not agree to this view because interim relief, where
it is admissible, can be granted as a matter incidental to the main question without being itself
expressed in plain terms. It is further held that ordinarily interim relief should not be the
whole relief that the workmen would get it if they finally succeeded.
In this regard the following principles are noteworthy:1. An interim award is not the final determination of some of the points involved in an
industrial dispute. It is a provisional or temporary arrangement made in a matter of
urgency and subject to a final adjustment on the final determination of the dispute.
2. Interim relief is granted in aid of the final relief to be granted. If final relief itself
cannot be granted not temporary relief of the same nature can be given. While
awarding interim relief, the final adjustment to be made at the time of award mut be
kept in mind.
Section 17 says that tribunal may make its award operative from the date specified in the
award , a tribunal has jurisdiction to grant an award retrospectively.

Section 17A
17A. Commencement of the award.1.AIR 1959 SC 1342

(1) An award (including an arbitration award) shall become enforceable on the expiry of
thirty days from the date of its publication under section 17: Provided that-(a) if the appropriate Government is of opinion, in any case where the award has been given
by a Labour Court or Tribunal in relation to an industrial dispute to which it is a party; or
(b) if the Central Government is of opinion, in any case where the award has been given by a
National Tribunal, that it will be inexpedient on public grounds affecting national economy or
social justice to give effect to the whole or any part of the award, the appropriate
Government, or as the case may be, the Central Government may, by notification in the
Official Gazette, declare that the award shall not become enforceable on the expiry of the said
period of thirty days.
(2) Where any declaration has been made in relation to an award under the proviso to subsection (1), the appropriate Government or the Central Government may, within ninety days
from the date of publication of the award under section 17, make an order rejecting or
modifying the award, and shall, on the first available opportunity, lay the award together with
a copy of the order before the Legislature of the State, if the order has been made by a State
Government, or before Parliament, if the order has been made by the Central Government.
(3) Where any award as rejected or modified by an order made under sub- section (2) is laid
before the Legislature of a State or before Parliament, such award shall become enforceable
on the expiry of fifteen days from the date on which it is so laid; and where no order under
sub- section (2) is made in pursuance of a declaration under the proviso to sub- section (1),
the award shall become enforceable on the expiry of the period of ninety days referred to in
sub- section (2).
(4) Subject to the provisions of sub- section (1) and sub- section (3) regarding the
enforceability of an award, the award shall come into operation with effect from such date as
may be specified therein, but where no date is so specified, it shall come into operation on the
date when the award becomes enforceable under sub- section (1) or sub- section (3), as the
case may be.]

Enforcement of an Award:An award may be enforced in following ways:

1. The aggrieved party may apply to Appropriate Government for prosecuting the
defaulting party under section 29 or section 31 of the Act.
2. Where any money is payable by an employer to workmen, the workmen may move
the Appropriate Government for recovery of the money due to him under the Award.
3. The party in whose favour the award has been granted may file a suit and obtain a
decree, which shall be enforced by execution under the provisions of the Civil
Procedure Code.
Where the any part of the interim order did not determine any part of the industrial dispute or
other question relating thereto but only determined whether the Industrial Tribunal has been
properly constituted to which the industrial dispute could be referred for adjudication such
order cannot be said to be an award as defined under section 2. Award of the Labour Court
allowing a meagre amount as house rent allowance to the workers who are paid low
remuneration cannot be said to be unreasonable when financial position of the company is
sound.

BIBLIOGRAPHY
1. Dr. Goswami, V.G, Labour Industrial Laws, Central Law Agency,
Eighth Edition
2. Kumar, H.L, Labour Problems & Remedies, Universal Law
Publishing, Eighth Edition
3. Misra, S.N, Labour & Industrial Laws, Central Law Publications,
Twenty Fifth Edition
4. http://en.wikipedia.org/wiki/Industrail_Disputes_Act_1947

5. http://www.advocatekhoj.com/library/bareacts/industrail/index.php?
Title=Industrail%20Disputes%20Act,%201947
6.