Sie sind auf Seite 1von 14

Labour And Industrial Laws

Labour and Industrial Law Project


Report

Concept of Award: Commencement,


Binding Nature and Enforceability of
Awards and their Judicial Review

Submitted To:
Dr. Kusum

Submitted By:
Ratika Attri
B.A.ll.B(hons.) 9th Sem
68/11

Concept of Award Page 1

Labour And Industrial Laws


ACKNOWLEDGEMENT
I express my sincere gratitude to Dr. Kusum for her inspiration, expert guidance,
moral boosting, continuous encouragement and appreciation which are the vital
factors in successful completion of my project work.
I humbly acknowledge deep gratitude towards my teacher.
Thanking You.

Concept of Award Page 2

Labour And Industrial Laws

Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.

Award -Definition
Time period for submission of awards [Section 10 (2-A)]
Submission within three months
Extension of time period for submission of award [Section 10 (2-A)]
Computation of time-period [Section 10 (2-A)]
Form of award [Section 16(2)]
Publication of award (Section 17)
Commencement of the award (Section 17-A)
Commencement and conclusion of proceedings Court, Industrial Tribunal and National

Tribunal [Section 20(3)]


10. Penalty for breach of award (Section 29)
11. Non-disclosure of confidential information in the award (Section 21)
12. Penalty for disclosing confidential information (Section 30)
13. 'Award' of Labour Court, Industrial Tribunal and National Tribunal subject to "judicial
review"
14. Appeal against the award of the Tribunal to the Supreme Court under Art. 136 of the
Indian Constitution
15. Removal of doubts and difficulties in the awards (Section 36-A)
16. Enforcement of the award.
17. Bibliography

Award
Award under Industrial Act is defined under Section 2(b) as "'award' means an interim or a
final determination of any industrial dispute or of any question relating thereto by any
Labour Court,

Industrial Tribunal or National Industrial Tribunal and includes an

arbitration award made under Section 10-A."


Concept of Award Page 3

Labour And Industrial Laws


`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.
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 an 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 a question relating thereto on merits. In order to be an award,

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.1
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.
Time period for submission of awards [Section 10 (2-A)] : According to sub-section (2-A) of
Section 10, Labour Court, Tribunal or National Tribunal submits its award within the time
period specified by the appropriate Government in the order of reference.
First part of Section 10 (2-A) reads as follows: "An order referring an industrial dispute to a
Labour Court, Tribunal or National Tribunal shall specify the period within which such
Labour Court, Tribunal or National Tribunal shall submit its award on such dispute to the
appropriate Government."
Submission within three months

1 Cox and Kings (Agents) Ltd. v. Their Workmen, AIR 1977 SC 1666.

Concept of Award Page 4

Labour And Industrial Laws


Section 10 (2-A) further provides that where such industrial dispute is connected with an
individual workman, no such period shall exceed three months.
Extension of time period for submission of award [Section 10 (2-A)]
According to sub-section (2-A) of Section 10, where the parties to an industrial dispute apply in
the prescribed manner, whether jointly or separately, to the Labour Court, Tribunal or National
Tribunal for extension of such period or for any other reason, and the presiding officer of such
Labour Court, Tribunal or National Tribunal considers it necessary or expedient to extend such
period, he may for reasons to be recorded in writing, extend such period by such further
period as he may think fit.
Computation of time-period [Section 10 (2-A)]
According to Section 10(2-A), in computing any period specified for the submission of award,
for which the proceedings before the Labour Court, Tribunal or National Tribunal had been
stayed by any injunction or order of a Civil Court shall be excluded.
According to Section 10(2-A), no proceedings before a Labour Court, Tribunal or National
Tribunal lapses merely on the ground that any period specified under Section 10(2-A) had
expired without such proceedings being completed.
Form of award [Section 16(2)]
According to Section 16(2), the award of a Labour Court or Tribunal or National Tribunal must
be in writing and must be signed by its presiding officer.

Publication of award (Section 17)


According to Section 17(1), every award of a Labour Court, Tribunal or National Tribunal shall,
within a period of thirty days from the date of its receipt by the appropriate Government, be
published in such manner as the appropriate Government thinks fit.

Concept of Award Page 5

Labour And Industrial Laws


According to Sec. 17(2), subject to the provisions of Section 17-A, the -award published under
sub-section (1) of Sec. 17 shall be final and shall not be called in question by any Court in any
manner whatsoever.

Commencement of the award (Section 17-A)


According to sub-section (1) of Section 17-A, an award (including an arbitration award)
becomes enforceable on the expiry of thirty days from the date of its publication under
Section 17. The appropriate Government or the Central Government, as the case 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(i)

if the appropriate Government is of opinion, in any case where the award has been given

(ii)

by a Labour Court, or Tribunal in relation to an industrial dispute to which it is a party;


if the Central Government is of opinion, in any case where the award has been given by
the National Tribunalthat it will be expedient on public grounds affecting national
economy or social justice to give such effect to the whole or any part of the award.

According to Section 17-A (2), where any declaration has been made in relation to an
award under the provision to sub-section (1) of Section 17-A, 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.
In Hotel Imperial, New Delhi v. Hotel Workers Union 2, workmen of three hotels in New
Delhi were suspended on the charge of misconduct pending applications 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 adjudged payable by the Tribunal in respect of arrears accrued till then
and continue to pay a proportionate amount till the decision of the dispute. It was also
contended that the tribunal could not adjudicate upon the question on interim relief because it
2 AIR 1959 SC 1342.

Concept of Award Page 6

Labour And Industrial Laws


was not referred to it. But the Supreme Court did not agree with 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 was further held that ordinarily interim relief
should not be the whole relief that the workmen would get 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 a dispute.
(2) Interim relief is granted in aid of the final relief to be granted. If final relief itself cannot
be granted no temporary relief of the same nature can be given. While awarding interim
relief, the final adjustment to be made at the time of the award must be kept in mind.
Finding on a preliminary issue is not an interim award. 3 In giving retrospective effect to the
awards the tribunal should take into consideration that the Tribunal had on other occasions,
given increases to the workmen, it being immaterial whether the increases were referable to
the actual matter of dispute before the Tribunal. As observed by the Supreme Court no
retrospective operation can be given to an award for any period previous to the date on which
the demands in question were made.4 In view of Section 17 which says that a tribunal may
make its award operative from any date specified in the award, a tribunal has jurisdiction to
grant an award retrospectively.5 But an industrial tribunal cannot by way of interim relief
direct the employer to reinstate the workman, pending the disposal of an application under
section 33-A. 6

3 Tanneries of Dindigal v. Their Workmen, ( 1955) II LLJ 171.


4 Jhagra Khand Collieries (Private) Limited v. Central Government, Industrial Tribunal, Dhanbad, (1960)
II
5

LLJ 71. Caltex (India) Ltd. v. Industrial Tribunal No. 2 Ernakulam, (1961) II LLJ 85 (Kerala).

6 Delhi Cloth and General Mills v. Additional Industrial Tribunal, (1960) II LLJ 712.

Concept of Award Page 7

Labour And Industrial Laws


Commencement and conclusion of proceedings Court, Industrial Tribunal
and National Tribunal [Section 20(3)]
According to sub-section (3) of Section 20, proceedings before Court, Industrial Tribunal or
National Tribunal is deemed to have commenced on the date the dispute is referred by the
appropriate Government for adjudication. Sub-Section (3) of Section 20 further provides that
the proceedings before Labour Court, Industrial Tribunal and National Tribunal is deemed to
have concluded on the date on which the award becomes enforceable under Section 17-A of
the Act.

Penalty for breach of award (Section 29)


According to Section 29, any person who commits a breach of any term of award which is
binding on him under the Act, is punishable:
(i)
(ii)
(iii)

with imprisonment for a term which may extend to six months; or


with fine; or
with both, imprisonment and fine.
When the breach of award is continuing one, then the person is punishable with a further
fine which may extend to two hundred rupees for everyday during which the breach
continues after the conviction for the first.
Section 29 further provides that the Court trying the offence, if it fines the offender, may
direct that the whole or any part of the fine realized from him shall be paid, by way of
compensation, to any person who, in the opinion of the Court has been injured by such
breach.

Non-disclosure of confidential information in the award (Section 21)


A Trade Union, person, firm or company may request in writing to the authorities under the Act
to whom they give evidence of certain confidential information during the investigation or
inquiry, that such confidential information must not be disclosed. According to Section 21, upon
receiving such written request, the authorities cannot include such confidential information in
their report or award.
Section 21 reads as under:
Concept of Award Page 8

Labour And Industrial Laws


Certain matters to be kept confidential
There shall not be in any report or award under this Act any information obtained by .a
Conciliation Officer, Board, Court, [Labour Court, Tribunal, National Tribunal or an arbitrator]
in the course of an y investigation or inquiry as to a trade union or as to any individual business
(whether carried on by a person, firm or company) which is not available otherwise than
through the evidence given before such officer, Board, Court, [Labour Court, Tribunal, National
Tribunal or Arbitrator], if the trade, union, person, firm or company in question has made
request in .writing to. the Conciliation Officer, Board, Court, [Labour Court, Tribunal, National
Tribunal or arbitrator], as the case may be, that such information shall be treated as
confidential; nor shall such conciliation officer or any individual member of the Board, [or
Court or the presiding officer of the Labour Court, Tribunal or National Tribunal or the
Arbitrator] or any person present at or concerned in the proceedings disclosed any such
information without the consent in writing of the Secretary of the trade union or the person, firm
or company in question, as the case may be.
Provided that nothing contained in this section shall apply to a disclosure of any such
information for the purposes of prosecution under Section 193 of the Indian Penal Code (45 of
1860).

Penalty for disclosing confidential information (Section 30)


According to Section 30, any person who willfully discloses any such information as is referred
to in Section 21 in contravention of Section 21, on complaint made by or on behalf of the Trade
Union or individual business affected, be punishable with
(i)
(ii)
(iii)

imprisonment for a term which may extend to six months; or


with fine which may extend to five thousand rupees; or
with both.

'Award' of Labour Court, Industrial Tribunal and National Tribunal


subject to "judicial review"

Concept of Award Page 9

Labour And Industrial Laws


The High Court exercises the power of writ jurisdiction under Art. 226 and power of
superintendence under Art. 227 of the Indian Constitution. The High Court exercises the
power of writ jurisdiction and supervision over all the Lower Courts and Tribunals within its
jurisdiction.
It is well settled that the decision of the Labour Court and the Tribunals rendered under the
Industrial Disputes Act would be subject to review by the High Court and under Articles
226/227 of the Indian Constitution.
The Full Bench of the Supreme Court in Hindustan Lever Ltd. v. B.N. Donge7 observed as
follows:
"Since against the decision of the Industrial Tribunal no remedy was available under t
provisions of the I.D. Act the aggrieved party could he only invoke the jurisdiction of the
High Court under Arts. 226/227 of the Indian Constitution."
The Court held8 that where both the employer and the Unions representing the workers were
aggrieved by the award, to the extent it went against them, they can prefer writ petition against
the award of the Industrial Tribunal to the High Court under Article 226 of the Indian
Constitution.
It is well settled that if the findings recorded by the Labour Court or Tribunals are on account
of a perverse reasoning or perverse approach to the matter, then the High Court is entitled to
interfere with the said finding by exercising the powers under Art. 226 and Art. 227 of the
Indian Constitution."9
In Engineering Mazdoor Sabha v. Hind Cycles10, the Supreme Court held that the award of the
Industrial Tribunal and voluntary arbitrator is subject to writ of certiorari issued by the Court.
The writ of certiorari is issued when the Lower Court or Tribunal acts illegally or in excess of
its jurisdiction.

Appeal against the award of the Tribunal to the Supreme Court


under Art. 136 of the Indian Constitution
7 AIR 1995 SC 817.
8 Hindustan Lever Ltd. v. B.N. Donge, AIR 1995 SC 817.
9 Shaw Wallace & Co. Ltd. v. N.R. Trivedi,1998 Lab IC 3309 (Guj.)
10 AIR 1963 SC 874

Concept of Award Page 10

Labour And Industrial Laws


Article 136(1) of the Indian Constitution provides as follows:
"Notwithstanding anything in this chapter, the Supreme Court may, in its discretion, grant
special leave to appeal from any judgment, decree, determination, sentence or order in any
cause or matter passed or made by any Court or Tribunal in the territory of India."
The question that whether the Supreme Court can entertain an application for leave to appeal
against the award of Tribunal under Art.136 of the Indian Constitution was discussed in Bharat
Bank Ltd. v. The Employees of Bharat Bank 11 It was held in this case that the Supreme Court
may entertain an application for leave to appeal against the award of Tribunal under Art.136 of
the Indian Constitution, because the Tribunal has all the characteristics of the Court and perform
the function which is judicial in its nature.
But the Supreme Court exercises very carefully its jurisdiction under Art. 136 of the Indian
Constitution while entertaining an application to leave to appeal against the award of a Tribunal.
The Supreme Court entertains any such application under Article 136 where the awards made by
the Tribunals are ' violation of the principles of natural justice, causing substantial and grave
injustice to the parties to the dispute.

Removal of doubts and difficulties in the awards (Section 36-A)


If in the opinion of the appropriate Government, any difficulty or doubt arises as to the
interpretation of any provision of an award or settlement may refer the question to such Labour
Court, Tribunal or National Tribunal as it may think fit.
The Labour Court, Tribunal or National Tribunal to which such question is referred gives the
opportunity to be heard to the parties to the dispute with respect to which the award has been
given. After giving the parties an opportunity of being heard, the Labour Court, Tribunal or
National Tribunal, as the case may be, decides such question and removes difficulty or doubt as
to the interpretation of any provision of an award or settlement. Such decision becomes final and
binding on all the parties under Section 36-A (2).
Payment of full wages to workman pending proceedings in higher Courts [Section 17-B]
11 (1950) 2 LLJ 921.

Concept of Award Page 11

Labour And Industrial Laws


Section 17-B intends to protect the workman from economic hardship which he may face when
his employer prefers any proceedings in a High Court or the Supreme Court against an award. of
Labour Court, Tribunal or National Tribunal which reinstates the workman.
Because Sec. 17-B provides for the payment of wages to the workman during the pendency of
proceedings in the higher Courts if:
(i)
(ii)

the workman had not been employed during such period, and
an affidavit by the workman had been filed to that effect in such court.

Section 17-B reads as under:


Where in any case of Labour Court, Tribunal or National Tribunal by its award directs
reinstatement of any workman and the employer prefers any proceedings against such award in
a High Court or the Supreme Court, the employer shall be liable to pay such workman, during
the period of pendency of such proceedings in the High Court or the Supreme Court, full wages
last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if
the workman had not been employed in any establishment during such period and an affidavit by
such workman had been filed to that effect in such Court : Provided that where it is proved to the
satisfaction of the High Court or the Supreme Court that such workman had been employed and
had been receiving adequate remuneration during any such period orp art thereof, the Court
shall order that no wages shall be payable under this section for such period or part, as the case
may be.

Enforcement of the award:An award may be enforced in the following ways(1) The aggrieved party may apply to Appropriate Government for prosecuting the defaulting
party under Section 29 or Section 31.
(2) Where any money is payable by the employer to workman, the workman may move to the
appropriate government for recovery of money due to him under the award.

Concept of Award Page 12

Labour And Industrial Laws


(3) The party in whose favour the award has been granted may file a suit and obtain a decree
which shall be enforced under the execution under the provisions of the Civil Procedure Code.12
Where the interim order did not determine any part of the industrial dispute or any 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 in Section 2(b).13
Award of the Labour Court allowing a meager amount as house rent allowance to the workers
who are paid very low remuneration cannot be said to be unreasonable when financial position of
the company is sound.14

BIBLIOGRAPHY
Books:

Meenu Paul. Labour and Industrial Law. Allahabad Law Agency. 8th edition. 2008

12 Bharat Bank Ltd. v. Their Employees, AIR 1950 SC188.


13 A.C.E.S. Corpn. V. Workmen, AIR 1971 P& H 274.
14 S.B. Products v. Workmen, AIR 1971 SC 2134.

Concept of Award Page 13

Labour And Industrial Laws

Malik, P.L., Law of Industrial Dispute,11th edition 2005, Allahabad law

publications
Padhi P.K., Labour and Industrial Laws Prentice Hall of India Pvt.Ltd.,
ed. 2008, New Delhi.

Statutes:

The Industrial Dispute Act, 1947

Websites:

http://www.slideshare.net/tkjainbkn/industrial-disputes-act-1947.
http://www.advocatekhoj.com/library/bareacts/industrial/19.php?Title=Industrial
%20Disputes%20Act,%201947&STitle=Period%20of%20operation%20of

%20settlements%20and%20awards.
http://www.lawyersclubindia.com/articles/ Enforcement/ of/ award.
http://www.en.m.wikipedia.org/wiki/Concept/ of/award.

Concept of Award Page 14