INTRODUCTION

Though the notion of labour has existed in India since the code of Hamurabi was written in
2250 B.C., its significance was only realised after the industrialization and the growth of
communism. There has arisen a scenario in which labour rights are being defended against
the powerful employer community. As word of this realisation spread among the laborers, a
series of disputes arose among management and labour, resulting in new laws. The Industrial
Disputes Act,1947, was enacted with the goal of resolving industrial disputes in a peaceful
and stable manner, and it was derived from Rule 81-A of the Defence of India Rules,1939.

The Act establishes a number of organizations for the sake of resolving industrial disputes,
each with specific powers and responsibilities. For the purposes of comprehension, the
authorities have been split into adjudicatory and non-adjudicatory bodies, and their
mechanisms are also described in this project.

INDUSTRIAL DISPUTES ACT, 1947

The Industrial Disputes Act of 1947 spans to the complete of India and governs Indian labour
law in terms of trade unions. It took effect on April 1, 1947. The Industrial Disputes Act's
goal is to maintain industrial peace and prosperity by establishing equipment and procedures
for investigating and resolving industrial disputes through negotiations.

Just the organized sector is covered by the legislation. Layoffs, retrenchments, and closures
must be approved by the government under Chapter V-B, which was added to the law in
1976 as a result of an amendment. A subsequent amendment in 1982 (which went into effect
in 1984) broadened its scope by lowering the minimum to 100 employees.

The Industrial Disputes Act describes an "industrial dispute" as a disagreement or conflict

between employees and their employers, or between employees and their coworkers, over
employment or non-employment, employment terms, or working circumstances An
individual worker's dismissal is considered an industrial dispute.

The ID Act establishes the Working Committee, which is made up of employers and
employees, to encourage measures aimed at guaranteeing and maintaining solidarity and
better relations between both the employer and the employees, and to settle any substantial
differences of interest in such issues.
For the purpose of resolving disputes, the ID Act establishes Conciliation Officers, Boards of
Conciliation, Courts of Inquiry, Labour Courts, Tribunals, and National Tribunals.
Arbitration is another well-known approach for resolving disagreements. The Industrial
Disputes Act establishes a legal framework for resolving conflicts. The goal of the Act's
preventive machinery is to establish an atmosphere in which conflicts do not occur at all.

Strikes and lockouts are examples of unfair labour practises prohibited by the ID Act, which
are specified in the Fifth Schedule (except under certain defined conditions and with proper
notice). It also includes clauses for unlawful strikes, lockouts, and unlawful labour practises
as well as regulations for layoffs and retrenchments, and also the compensation that must be
paid. The Act also provides for the granting of damages to workers in the event of a plant
closure, layoff, or retrenchment. The process for obtaining prior approval from the
appropriate government for layoffs, retrenchments, or the closure of industrial
establishments.

ADJUDICATION AND PRINCIPLES OF LABOUR ADJUDICATION

What is Adjudication?

Adjudication refers to the obligatory resolution of Industrial Disputes by labour courts,

Industrial Tribunals, or National Tribunals established underneath the Act, or by any other
similar authorities established under similar state laws. The final remedy for an unresolved
dispute is for the competent government to address it to the adjudicatory mechanism for
resolution.1 The adjudicatory body settles the Industrial Dispute referred to it by issuing an
award that is obligatory on all parties involved.

There is no allowance for appeal against these awards; they can only be contested by manner
of writ under Articles 226 and 227 of the Indian Constitution before the appropriate High
Court, or by manner of special leave under Article 136 of the Indian Constitution before the
Supreme Court, both of which have superintending jurisdiction. Rule 81-A of the Defense of
India Rules established the principle of compulsory adjudication in India. 2 Despite the fact
that it was repealed, it is still included in the ID Act. The primary goal of the organization is
to foster industrial peace.

1
Lalit Bhasin, India: Labour And Employment Laws Of India, mondaq,(27th Feb, 13:03 PM)
http://www.mondaq.com/india/x/50440/employee+rights+labour+relations/Labour+And+Employment+Laws+
Of+India
2
ibid
Adjudicatory Bodies in India

Labor Courts, Industrial Tribunals, and National Tribunals are the three types of tribunals. On
the advice of conciliation officers, conflicts are usually addressed to the relevant government.
These organizations are usually in charge of dealing with appeals from the conciliation
authorities. Because India's trade unions are weak, the adjudication system has been made
mandatory. It addresses issues such as wages, working hours, holidays, and safe working
conditions, among others.

General Principles of Labor Adjudication

The following are the general rules for labor adjudication:

i) The adjudicatory bodies cannot go outside the spectrum of the discussed issue;3

ii) The discoveries must be solely founded on the relevant and tangible facts established in
the case.4 A tribunal's jurisdiction cannot be avoided or relinquished.5

iii) As held in Glaxo Laboratories Ltd. v. Labour Court Guntur6, tribunals are not obliged
to rule on whether employers consider giving up their claim.

iv) As held in Sindri Cement Factory Union v. Dass 7, the government has no power to
remove the labour courts' jurisdiction while the case is pending.

v) As held in Indian General Navigation Railway Co. v. Workmen 8, the laws of res
judicata and estoppel do not have to be extended to industrial adjudication.

vi) Under sec.11 A, the tribunals and labour courts have certain implicit power (inserted by
1971 amendment). They will cope with industrial disputes over worker termination or
discharge as long as they stick to the relevant documents and don't go further than that.
Natural justice principles must be followed to the letter.9

ADJUDICATION MACHINERIES UNDER INDUSTRIAL DISPUTES ACT, 1947

3
Delhi cloth general mills v. their workmen, (1967) II LLJ 523 (SC)
4
Workmen of Dahingeapara tea estate v. Dahingeapara tea estate, AIR 1958 SC 1026
5
Oil India ltd. v. G.N.Borah and others, 1977 Lab IC 1610 (Cal)
6
1977 Lab IC 1523 AP
7
Lab IC 1801 (Pat)
8
(1957) 1 LLJ 226 (SC)
9
Punjab National bank v. workmen, AIR 1960 SC 160
Labour Courts

One or more labour courts may be established by the appropriate government under section
7(1). It comprises only of one individual who is nominated by the relevant authority as a
presiding officer of the labour court.

 Who has been the judge of the High court or has been a district judge or additional
district judge for a period of not less than 3 years.
 Or has held judicial office in India for not less than 7 years or has been the presiding
officer of the labour court for not less than 5 years.
 Or is an officer of Indian Legal Service in Grade III with three years' experience in
the grade.10
 Has served as a Deputy Chief Labour Commissioner (Central) or Joint Commissioner
of the State Labour Department, with a law degree and at least seven years of
expertise in the labour department, which include three years as a Conciliation
Officer, after obtaining a law degree.

He may remain in office under Section 7(3) of the Act if he is an independent individual 11 and
had also not reached the age of sixty-five years, or he will be ineligible under Section 7-C.
The court's authority begins when the competent authority refers the conflict to it under
section 10. The terms of the order of matter referred to the labour court cannot be stretched
by the parties' act once it has been confiscated of its authority.12

Functions of Labour Court

The labour court is responsible for deciding on industrial disputes listed in the act's second
schedule, such as

 The propriety or validity of any order issued by an employer under Standing Orders.
 The use of Standing Orders to comprehend them.
 Worker discharge or termination, comprising of reconsideration and other reliefs
 All matters which are not specifically mentioned in the third schedule.

And undertake any other duties provided to it by ID Act, such as voluntary reference under
sec 10(2), arbitration reference under sec 10(A) (iii), authorization of a discharge action
10
ibid
11
Sec.2(i) of ID Act, the concerned person should have no connection with the dispute referred.
12
Working Journalists, Hindu v. The Hindu, (1961) 1 LLJ 282 (Mad).
under sec 33, grievances of enraged workers under sec 33A, applications under sec 33-C (2),
and reference of compensation and settlements under sec 36-A.

In Haryana State Cooperative Land Development Bank v. Neelam 13, a typist who had
been hired on an ad-hoc ground and was fired after 17 months appealed to the labour court
for compensation after 7 years. The typist was refused any compensation by the labour court,
and the Supreme Court affirmed the decision, saying that the time span is important to
consider. Under Art.226/227, appeals from labour courts usually go to the High Court.

Industrial Tribunals and National Tribunals

For the sake of adjudication of industrial disputes, the competent authority may establish one
or even more Industrial Tribunals (sec.7A) and National Industrial Tribunals (sec.7B). The
1956 amendment added these clauses.

The court's jurisdiction begins when the competent authority refers the conflict to it under
section 10(1) (d). The authority persists until an implementable award is made. They have all
of the privileges of a civil court, including the ability to designate two assessors to assist with
the trials.

Prior to the 1956 amendment, labour court complaints were directed to the state tribunal and
then to the central tribunal, which was controlled by the Industrial Disputes (Appellate
Tribunal) Act, 1950. However, with the addition of sections 7A and 7B to the ID Act,
tribunals have been denied appellate jurisdiction.

But exceptionally in some cases where the state legislations allow for an appeal to the
tribunal, it can be permitted. For example, under sections 84 and 85 of the Bombay Industrial
Relations Act, 1946, and section 42 of the Maharashtra Recognition of Trade Unions and
Prevention of Unfair Labour Practices Act, 1971, an appeal from the Mumbai labour court
goes to the Bombay industrial courts. However, in these instances, challenges to both the
tribunal and the courts are legitimate, and if an appeal is made to both courts at the same
time, the court to which it was first appealed should be given priority. Uttar Pradesh and
Madhya Pradesh both have similar clauses.14

(2005) 1 LLJ 1153 (SC)

13

P.R.N.Sinha et al., Industrial Relations, Trade Unions, and Labour Legislation, 393 (4th Edition, 2015),
14

Dorling Kindersley (India) Pvt Ltd., Delhi.

The court held in Lipton Ltd v. Workmen15 that the Tribunals' jurisdiction is based on the
parties' residence within the jurisdiction and the subject matter must significantly emerge
from that region. The tribunals have the authority to decide on the issues listed in the second
and third schedules, as well as any other matters assigned to them.16

Functions of Industrial Tribunals

The Industrial Tribunals are responsible for some of the following issues listed in the third
schedule:

 Wages, including the period and mode of payment.

 Allowances for compensation and other reasons.
 Work hours and rest periods.
 Earnings and vacation time are included in the leave package.
 Bonuses, profit-sharing, provident funds, and gratuities
 Shift work that is not in accordance with established procedures.

PERFORMANCE AND NATURE OF THE ADJUDICATORY MACHINERIES

Labor courts and tribunals are required by section 15 of the Industrial Disputes Act to
conduct their hearings quickly and to send the award to the central authority within the period
specified in the order of reference and during the time specified in section 10(2A). Notices,
summons, hearings, and inspection procedures are outlined in Rules 9 to 30 of the Industrial
Disputes (Central) Rules, 1957, in which the enforcement of the Code of Civil Procedure is
somewhat restricted. And, within the Indian Evidence Act, these adjudicatory bodies are not
required to exclusively apply the laws of evidence.17

The distinction among ordinary courts of law and these adjudicatory bodies is that in the
former, there are pre-existing rules that apply to the relevant cases, while in the latter, there
are none.18

They are largely quasi-judicial in character and are governed by natural justice principles
with the exception of the purposes of sections 193 and 228 of the Indian Penal Code, yet they

15
(1959) 1 LLJ 431 (SC)
16
See generally Dr.H.K.Saharay, Labour and Industrial law, 154(6th Edition, 2015) Universal law publishing
co., New Delhi.
17
Union of India v. T.R.Verma, AIR 1957 SC 832

18
K.M.Pillai, Labour and Industrial Laws, 104(16th Edition,2015), Allahabad Law Agency, Faridabad
are civil in character except for the reasons of sections 480 and 482 of the Criminal Procedure
Code. In contrast to the inquisitorial system, the tribunals use an adversary system.

In Graphite India Ltd. v. State of West Bengal,19 the Enquiry Officer found the respondent
liable of wrongdoing based solely on the proof of one party. The High Court ruled that the
departmental investigation did not follow natural justice principles (audi-alteram partem), and
the accusation was declared invalid.

The authority of labour courts and tribunals has also been expanded under sec.11A, which
gives the authorities the authority to determine on the appropriateness of punishment or to
issue any re-instatement order. According to the adjudication paragraph, the appeal refers to
the High Court or Supreme Court.20

19
1979 Lab IC 1279 (Cal)
20
supra p.11