Created byFuzzy Cloud

Supreme Court of India

ANZ GRINDLAYS BANK LTD. (NOW KNOWN AS STANDARD CHARTERED GRINDLAYS BANK LTD.)versusUNLON OF INDIA AND ORS.

Citation
2005 INSC 552
Decided
8 November 2005
Disposal
Appeal(s) allowed

Holding

A settlement under Section 18(1) binds only the parties to it and, in the absence of an industrial dispute, a reference to the Industrial Tribunal under Section 10(1) is invalid and may be quashed by a writ under Article 226.

Summary

ANZ Grindlays Bank (now Standard Chartered) entered into a settlement with the All India Grindlays Bank Employees Association, representing the majority of its award staff, under Section 18(1) of the Industrial Disputes Act, 1947. The All India Grindlays Bank Employees Federation, representing minority workers, did not sign the settlement and challenged the clause that required non‑members to sign a receipt to obtain benefits, prompting the Central Government to make a reference to the Industrial Tribunal under Section 10(1). The Bank filed a writ petition under Article 226 seeking to quash the reference; the Bombay High Court dismissed the petition and the Division Bench upheld that dismissal. The Supreme Court held that a settlement under Section 18(1) binds only the parties to it, that no industrial dispute existed between the Bank and the Federation, and therefore the reference was futile and could be quashed by a writ. Consequently, the Court allowed the appeal, set aside the High Court orders and quashed the reference, awarding costs to the Bank.

Issues considered

  • Whether a settlement arrived at under Section 18(1) of the Industrial Disputes Act is binding on parties not signatory to it, such as the Employees Federation.
  • Whether a dispute between the Bank and the Federation qualifies as an "industrial dispute" under Section 2(k) of the Act, justifying a reference under Section 10(1).
  • Whether the Central Government was justified in making a reference to the Industrial Tribunal in the absence of an industrial dispute.
  • Whether a writ petition under Article 226 of the Constitution is maintainable to quash a reference made under Section 10(1) when the reference is futile.

Legislation cited

Subjects

industrial disputesettlementSection 18Section 10Article 226binding effectlabour lawunionreference quashed

Judgment

         ANZ GRINDLA YS BANK LTD. (NOW KNOWN AS STANDARD                             A
                  CHARTERED GRINDLA YS BANK LTD.)
                                          v.
                           UNlON OF INDIA AND ORS.

                                NOVEMBER 8, 2005
                                                                                     B
                       [H.K. SEMA AND G.P. MATHUR, JJ.]


          Industrial Disputes Act 1947

          Section 18(1)-Persons bound by the Settlement-Settlement by                C
    agreement between the Appellant Bank and its employees association
    representing majority workmen of the Bank-Whether binding on employees
    Federation representing minority workmen which was not a party to the
    agreement-Held, no-Settlement otherwise than in the course of conciliation
    proceeding is binding only upon the parties thereto.                             D
           Sections 2(k), 10(1) and 18(1)-Jndustrial Dispute, Reference to
     Tribunal-Settlement between Appellant Bank and its employees association-
     Settlement provide for giving benefits to workmen who are members of
     Association-Other workmen not entitled to benefits until the individual
     gives acceptance of the settlement in the given format-Employees Federation     E
    filing application/or reference of industrial dispute to the Tribunal-Central
     Government making reference under section 10(1)-Appellant Bank filing
     writ petition for quashing the reference-High Court dismissing the petition-
     Allowing the appeal, held, the Federation not being the party to settlement
     was not affected in anyway and can have no grievance against the said           F
     settlement-There being no industrial dispute and the reference being wholly
    futile is uncalled for and therefore quashed

          Section 10(1)-Constitution of India 1950-Article 226-Industrial
    Dispute, Reference-Writ against-Maintainability of writ petition against
'   order making reference for acijudication by the Industrial Tribunal-Held, G
    where the futility of the reference is apparent in the terms of reference itself
    writ petition under Article 226 can be entertained

          The appellant Bank and its employees Association, representing
    majority of its Award Staff, arrived at settlement by agreement. Settlement
    provide for giving certain benefits to the employees. It is binding on members   H
                                         63
    64                         SUPREME COURT REPORTS [2005) SUPP. 5 S.C.R.

A of the Association. Benefit can be extended to other employees who give
   acceptance to the settlement in the given format. Employees Federation,
   representing minority employees, applied for reference of dispute. Central
   Government made a reference under section 10(1) for adjudication by the
 , Industrial Tribunal. Aggrieved thereby Bank filed a writ petition for quashing
B the reference. The High Court dismissed the petition. Hence this appeal.
          Allowing the Appeal with cost, the Court

          HELD: 1. A plain reading of the provisions of Section 18 of the industrial
    Disputes Act would show that where a settlement is arrived at by agreement
C   between the employer and the workmen otherwise than in the course of
    conciliation proceeding shall be binding on the parties to the agreement in
    view of the clear language used in sub-section (1) thereof. Sub-sections (2)
    and (3) of Section 18 contemplate different situations where an arbitration
    award has been given or a settlement has been arrived at in the course of
    conciliation proceedings. The Federation (second respondent) not being pal'.1Y
D   to the settlement, it is obvious that the same is not binding upon it in view of
    sub-section (1) of Section 18 of the Act Thus the settlement dated 18.8.1996
    did not affect the rights of the Federation in any manner whatsoever and it
    can possibly have no grievanc~ against the said settlement.
                                                              (70-H; 71-A-B; 71-D]
E         Mis. Tata Chemicals Ltd. v. The Workmen, AIR (1978) SC 828, relied
                                                                                           '~
    on.

          2. Section 2(k) of the l.D. Act defines "industrial dispute" and it means
    any dispute or difference between employers and employers, or between
F   employers and workmen, between workmen and workmen, which is connected
    with the employment or non-employment or the terms of employment or with
    the conditions oflabour, ofany person. The definition uses the word "dispute".
    The dictionary meaning of the word "dispute" is: to contend any argument;
    argue for or against something asserted or maintained. There is no industrial
    dispute in existence nor there is any apprehended dispute between the
G   appellant-Bank and the Federation and as such there is absolutely no occasion      ,
    for making any reference for adjudication by the Industrial Tribunal. The
    reference being wholly futile, the same deserves t_o be quashed.
                                                                   (72-B-C; 74-C)

         Black's Law Dictionary; Advance Law Lexicon by P.Ramanatha Iyer;
H   Gujarat State Co-operative land Development Bank ltd. v. P.R.Mankad,
    (1979) 3 sec 123, referred to.
           ANZ GRINDLAYS BANK LTD. v. U.0.1. [G.P. MATHUR, J.]               65
        3. Normally a writ petition under Article 226 of the Constitution should   A
not be entertained against an order of the appropriate Government making a
reference under Section 10 of the Act, as the parties would get opportunity to
lead evidence before the Labour Court or Industrial Tribunal and to show that
the claim made is either unfounded or there was no occasion for making a
reference. However, this is not a case where the infirmity in the reference        B
can be shown only after evidence has been adduced. In the present case the
futility of the reference made by the Central Government can be demonstrated
from a bare reading of the terms of the reference and the admitted facts. In
such circumstances, the validity of the reference made by the Central
Government can be examined in proceedings under Article 226 of the
Constitution as no evidence is required to be considered for examining the         C
issue raised. (73-E, F, G]

      National Engineering Industries Ltd v. State of Rajasthan and Ors.,
(2000] 1 sec 371, referred to.

      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7170 of2000.                 D
     From the Judgment and Order dated 19.6.2000 of the Bombay High
Court in A. No. 3 I 9/2000 in W.P. No. 175 of 2000.

     Mukul Rohatgi and Gaurab K. Banerji, Joydeep Mazumdar, Sourav
Agarwal; Ms. Ruby Singh Ahuja, T.M. Singh, Ms. Pragya Singh Baghel and             E
Mrs. Manik Karanjawala for the Appellant.

      S.N. Bhat for the Respondent No. 2.

      B.K. Pal and P.N. Jha for the Respondent No. 3.
                                                                                   F
      The Judgment of the Court was delivered by

      G.P. MATHUR, J. This appeal, by special leave, has been preferred
against the judgment and order dated 19.6.2000 of the Bombay High Court by
which the Letters Patent Appeal filed by ANZ Grindlays Bank Limi.ted
(hereinafter referred to as the 'Bank') was dismissed and the order dated          G
29.2.2000, passed by the learned single Judge dismissing the writ petition filed
by the Bank, was affirmed. The present appeal has been filed by ANZ
Grindlays Bank Limited and the respondents arrayed in the appeal are (1)
Union of India, (2) All India Grindlays Bank Employees Federation, and (3)
All India Grindlays Bank Employees Association. During the pendency of the
                                                                                   H
    66                         SUPREME COURT REPORTS (2005] SUPP. 5 S.C.R.

A appeal in this Court the entire share capital of ANZ Grindlays Bank Limited
    has been acquired by Standard Chartered Bank Limited and consequently an
    application (I.A. No. 3 of 2000) has been moved to change the name of the
    appellant from ANZ Grindlays Bank Limited to Standard Chartered Grindlays
    Bank Limited, which has been allowed.

B         2. The Bank has branches all over the country and employs approximately
     1666 personnel commonly known as Award Staff in its branches/offices in
    India. The All India Grindlays Bank Employees Association (third respondent)
    is recognized by the Bank and it represents majority workmen of the Bank all
    over the country. The All India Grindlays Bank Employees Federation (second
C   respondent) represents the minority workmen of the Bank. The terms and
    conditions of the employment of the workmen of the appellant Bank, popularly
    known as Award Staff, are governed by Shastri Award as modified by Desai
    Award and the bipartite settlements entered into between the Indian Banks
    Association and the Unions and Federations representing the workmen in the
    banking industry. Apart from these industry wise bipartite settlements, the
D   appellant-Bank also entered into in-house bilateral settlement with second
    and third respondents and these settlements are usually signed after every
    three years in respect of certain allowances and benefits and other terms and
    conditions of employment. The third respondent the All India Grindlays Bank
    Employees Association (for short the 'Association') represents over 66% of
E   the. workmen of the appellant-Bank. The Grindlays Bank Employees Union,
    Calcutta, an affiliate of the second respondent All India Grindlays Bank
    Employees Federation (for short the 'Federation') represents nearly 13% of
    the workmen of the Bank and the balance, who are not members of either of
    these unions are represented by the second respondent the All India Grindlays
    Bank Employees Federation.
F
            3. The case of the appellant is that the Federation (second respondent)
     is in t~e habit of backing out from signing the settlement at the last minute
    after having agreed to the terms thereof. Since 1993 several settlements were
    entered into between the Bank, the Association (third respondent) and also
    Grindlays Bank Employees Union, Calcutta. However, on account of the
G   recalcitrant attitude of the Federation (second respondent), in the settlement
    entered into under Section 18(1) of the Industrial Disputes Act, 1947 (for short
    the 'Act') a clause had to be incorporated for voluntary acceptance of the
    terms and conditions of such settlements by non-members of the Association
    (third respondent) with a view to extend the benefit of such settlements to
H   such of the non-members of the Association, who are willing to accept the
          ANZGRINDLAYS BANK LTD. v. U.0.1. [G.P. MATHUR,J.]                  67
settlement.                                                                        A
      4. A strike notice dated 14.3 .1996 was issued to the management of the
Bank by the Federation (second respondent). Discussions were held with all
the parties and finally a settlement was arrived at between the appellant-Bank
and the Association (third respondent), which was signed on 18.8.1996. The
Federation (second respondent), however, backed out and refused to sign the        B
settlement. The Federation then infonned the Conciliation Officer (Central) on
19.8.1996 that it had not signed the settlement and that the signing of the
settlement by the Bank with the Association (third respondent) amounted to
unfair labour practice. On 6.12.1997 Grindlays Bank Employees Union, Calcutta,
a constituent of the Federation (second respondent) representing 13% of the        C
workmen of the Bank accepted the terms of the settlement dated 18.8.1996 by
signing a separate settlement dated 6.12.1997. The settlement dated 18.8.1996
contained the following clause: -

        "DURATION

        This settlement will come into force with effect from August 18, 1996      D
       and on various dates as specified under different items contained in
       the settlement. The same shall be binding ~m the parties until December
       31, 1998. After December 31, 1998 and except in the case of ex-gratia
       system/payments all other terms and conditions thereof shall continue
       to be binding on the parties until the settlement is terminated by either   E
       party giving to the other statutory notice as prescribed in law for the
       time being in force.

       It is agreed that since the settlement shall be binding between the
       parties to this settlement under Section 18( 1) of the Industrial Disputes
       Act, 1947, it will also be binding on the affiliated units of All India F
       Grindlays Bank Employees' Association and hence on their members
       and thus the members shall automatically be entitled to the benefits
       of this settlement and subject to the obligations under this settlement.
       However, any other workmen who is not a member of any Union
       affiliated to All India Grindlays.Bank Employees' Association shall
       also be bound by the terms and conditions. of this settlement and G
       consequently entitled to the benefits flowing out of this settlement if
       he/she accepts this settlement by signing a receipt and the format of
       the settlement enclosed with this settlement, which will be made
       available to such employees.
                                                                                   H
    68                         SUPREME COURT REPORTS [2005] SUPP. 5 S.C.R.

A           The benefits arising out of this settlement will be given effect to by
            September 10, 1996."

         The settlement itself contained a format .in which the receipt had to be
    given and the same is as under: -

B           "To
           . The Manager
             ANZ Grindlays Bank Limited.
            Sir,

                 The terms and conditions of the settlement dated August 18, 1996
c          .between the Management of ANZ Grindlays Bank and their workmen
            represented by All India Grindlays Bank Employees' Association in
            respect of the various demands have been perused by me. I accept
            the settlement and the same will be binding on me. I undertake to
            receive the benefits in terms of the conditions set out in the settlement.
D           I, therefore, request you to release the benefits accruing to me under
            the same.

                This may be construed as my receipt towards payment/receipt of
            grant under the subject settlement.

E                                                                                Sci/-

                                                                       SIGNATIJRE''

    As a result of signing of the settlement by the Association (t.hird respondent)
    and the Calcutta Union, almost 99% of the Award Staff signed the. settlement
F   and only 29 persons remained, who did not sign the settlement and were
    objecting to the same. However, according to the Federation (second
    respondent) 60 persons have not signed the settlement and fil"e objecting to
    the same. Nearly three years thereafter the Association (third respondent)
    submitted a fresh charter of demands and after holding discussions and
    negotiations a fresh settlement was signed on l 0 .3 .1999 by the Association
G   and Calcutta Unit of Grindlays Bank Employees Union.

          5. At the instance of All India Grindlays Bank Employees Federation
    (second respondent) the Central Government, by order dated 29.12.1997, made
    a reference under Section IO( l) of the Act for adjudication by the Industrial
H   Tribunal. After issuance of a corrigendum on 17.12.1998, the reference reads
           ANZ GRINDLA YS BANK LTD. v. U.0.1. [G.P. MATHUR, J.]              69
as under: -                                                                        A
        "Whether the terms of bipartite settlement dated 18.8.1996, between
        the management of ANZ Grindlays Bank Limited, and All Indian
        Grindlays Bank Employees Association which bound withholding of
        benefits of settlement to workmen who are not members of All India
        Grindlays Bank Employees Association until the individual gives            B
        acceptance of the settlement in the given format is legal and justified?
        If not, to what relief are the workmen entitled to?"

Feeling aggrieved by the aforesaid reference made by the Central Government
the ANZ Grindlays Bank filed a writ petition under Article 226 of the
Constitution before the Bombay High Court for quashing and setting aside           C
the same. The writ petition was dismissed by a learned single Judge and the
appeal preferred against the said decision before the Division Bench also
failed. The present appeal has been filed by the Bank challenging the aforesaid
orders.

      6. Mr. Gaurab Banerji, learned senior counsel for the appellant-Bank, has
                                                                                   D
submitted that the reference made by the Central Government is wholly
redundant and it does not show what is the precise demand of the Federation
(second respondent) and how the decision of the reference by the Industrial
Tribunal if answered in favour of the second respondent, would give any
benefit to the said respondent. The language in which the reference has been E
couched clearly shows that the Federation (second respondent) merely wants
a declaratory relief which by itself would be wholly ineffective and will give
no benefit to the Federation. The settlement arrived at between the Bank and
the Association (third respondent) was under Section 18( I) of the Act and
consequently it did not bind those who are not parties to the settlement like F
the Federation (second respondent) and thus the rights, if any, of the
Federation were not affected in any manner by the settlement. Learned counsel
has also submitted that the Central Government had on two previous occasions
refused to make a reference and there being no change in circumstance there
was no occasion for reviewing the decision taken earlier and in making the
reference on 29.12.1997. lt has been further contended by Mr. Banerji that the G
settlement made on 18.8.1996 had already worked itself out and benefits had
been given to the employees in terms' thereof. The said settlement had been
superseded by another settlement on 10.3.1999. If the settlement arrived at on
18.8.1996 is held to be illegal or unjustified, it will result in causing serious
injury to the appellant Bank as it will be impossible to recover back the H
benefits which had already been given to the employees in terms of the
    70                         SUPREME COURT REPORTS [2005) SUPP. 5 S.C.R.

A settlement.
        7. It ma:y be mentioned at the very outset that the appellant-Bank had
  entered imo the settlement dated 18.8.1996 with ,the Association (third
  respondent) and members of the Grindlays Bank Employees Union, Calcutta,
  after holding discussions and negotiat!ons. The settlement had not been
B entered into either before a conciliation officer or labour court or industrial
  tribunal. In view of Section 18(1) of the Act the settlem.ent was binding only
  upon the parties thereto. Section 18 of the Act reads as under: -

            "18. Persons on whom settlements and awards are binding.- (1) A
            settlement arrived at by agreement between the employer and workman
c           otherwise than in the course of conciliatic,m proceeding shall be binding
            on the. parties to the agreement.
            (2) Subject to the provisions of sub-section (3), an arbitration award
            which has become enforceable. shall be binding on the parties to the
            agreement who referred the dispute to arbitration.
D
            (3) A settlement arrived at in the course of conciliation proceedings
            under this Act or an arbitration award in a case where a notification
            has been issued under sub-section (3-A) of Section 10-A or an award
            of a Labour Court, Tribunal or National Tribunal which has become
            enforceable shall be binding on- ·
E                                                           .•'"'I'
           (~)   all parties to the industrial dispute;
           (b)   all other parties summoned to appear in the proceedings as
                 parties to the dispute, unless the Board arbitrator, Labour Court,
                 Tribunal or National Tribunal, as the case may be, records the
F                opinion that they were so summoned without proper cause;
           (c) where a party referred to in clause (a) or clause {b) is an employer,
               his heirs, successors or assigns in respect of the establishment
               to whicqthe dispute relates;
           {d) where a party referred to in clause (a) or clause (b) is composed
G              of workmen, all persons who were employed in the establishment
               or part of the establishment, as the case may be, to which the
               dispute relates on the date of the dispute and all persons who
               subsequently become employed in that establishment or part."
                                                                                        -
H A plain reading of the provisions of Section 18 would show that where a

                                                                                        •
               ANZGRINDLAYSBANKLTD. v. U.0.1. [G.P. MATHUR,J.]                   71
    settlement is arrived at by agreement between the employer and the workman A
    otherwise than in the course of conciliation proceeding shall be binding on
    the parties to the agreement in view of the clear language used in sub-section
    (I) thereof. Sub-sections (2) and (3) of Section 18 contemplate different
"   situations where an arbitration award has been given or a settlement has been
    arrived at in the course of conciliation proceedings. In Mis. Tata Chemicals
                                                                                   B
    Ltd. v. The Workmen employed under Mis. Tata Chemicals Ltd., AIR (1978)
    SC 828, it was held as under: -

                "Whereas a settlement arrived at by agreement between the
            employer and the workman otherwise than in the course of conciliation
            proceeding is binding only on the parties to the agreement, a settlement   c
            arrived at in the course of conciliation proceeding under the Act is
            binding not only on the parties to the industrial dispute but also on
            other persons specified in Cls. (b), (c) and (d) of sub-sec. (3) ofS. 18
            of the Act."

           8. The Federation (second respondent) not being party to the settlement,    D
    it is obvious that the same is not binding upon it in view of sub-section (I)
    of Section 18 of the Act. Thus the settlement dated 18.8.1996 did not affect
    the rights of the Federation (second respondent) in any manner whatsoeve~
    and it can possibly have no grievance against the said settlement.

           9. Mr. S.N. Bhat, learned counsel for the Federation (second respondent),
                                                                                       E
    has submitted that under the settlement such employees of the bank, who
    were not members of the Association (third respondent), were required to


-
    give a receipt in writing in order to avail of the benefits of the settlement and
    this was clearly illegal. We are unable to accept the submission made. As
     already stated, the settlement was arrived at between the Bank and the F
    Association (third respondent) and by virtue of sub-section (1) of Section 18
    of the Act it bound. only the members of the Association (third respondent).
    However, the Bank also extended the benefit of settlement to such other
    employees, who were not members of the Association. In order to avail of the
    benefit they had to give a receipt that they were accepting the settlement and G
    the same shall be binding upon them and the format of the receipt, which has
    been reproduced earlier, does not contain any such term, which may be of
'   detriment to them. To protect its interest the Bank was perfectly justified in
    asking for a receipt from those employees, who were not members of the
    Association (third respondent), but wanted to avail of the benefit of the
                                                                                       H
    72                         SUPREME COURT REPORTS [2005) SUPP. 5 S.C.R.

A settlement. Therefore, we do not find anything wrong in the Bank asking for
    a receipt from the aforesaid categbry of employees.

          IO. The principal issue, whjch requires consideration, is whether the
  Central Government was justified in making a reference to the Industrial
  Tribunal in terms set out earlier. Section 2(k) of the Act defines "industrial
B dispute" and it means any dispute or difference between employers and
  employers, or between employers and workmen, or between workmen and
  workmen, which is connected with the employment or non-employment or the
  terms of employment or with the conditions of labour, of any person. The
  definition uses the word "dispute". The dictionary meaning of the word
C "dispute" is: to contend any argument; argue for or against something asserted
  or maintained. In Black's Law Dictionary the meaning of the word "dispute"
  is: a conflict or controversy, specially one that has given rise to a particular
  law suit. In Advance Law Lexicon by P. Ramanatha Iyer the meaning given
  is: claim asserted by one party and denied by the other, be the claim false or
D true; the term dispute in its wider sense may mean the ranglings or quarrels
  between the parties, one party asserting and the other denying the liability.
  In Gujarat State Cooperative land Development Bank Ltd v. P.R. Mankad
  and Ors., [1979] 3 SCC 123, it was held that the term dispute means a
  controversy having both positive and negative aspects. It postulates the
  assertion of a claim by one party and its denial by the other ..
E
        I 1. A plain reading of the reference made by the Central Government
  would show that it does not refer to any dispute or apprehended dispute
  between the Bank and the Federation (second respondent). It does not refer
  to any demand or claim made by the Federation or alleged refusal thereof by
F the Bank. In such circumstances, it is not possible to hold that on account
  of the settlement dated 18.8.1996 arrived at between the Bank and the
  Association (third respondent), any dispute or apprehended dispute has
  come into existence between the Bank :ind the Federation (second respondent).
  The action of the Bank in asking for a receipt from those employees, who are
  not members of the Association (third respondent) but wanted to avail of the
G benefit of the settlement, again does not give rise to any kind of dispute
  between the Bank and the Federation (second respondent). Thus, the reference
  made by the Central Government by the order dated 29.12.1997 for adjudication
  by the Industrial Tribunal is wholly redundant and uncalled for.

H         12. There is another aspect of the matter, which deserves consideration.
           ANZ GRINDLA YS BANK LTD. v. U.O.l. [G.P. MATHUR, J.)                  73
The settlement dated 18.8.1996 had already worked itself out and a fresh A
settlement had been arrived at between the Bank and the Association (third
respondent) on 16.11.1999. The members of the Association (third respondent)
and other employees, who availed of the benefit of the settlement, have
received payments in terms thereof. Some of the employees have already
retired from service. Even ifthe settlement is set aside the Federation (second B
respondent) would not gain in any manner as no enforceable award can be
given in its favour, which may be capable of execution. On the contrary the
appellant-Bank would be a big loser as it will not only be very difficult but
almost impossible for the Bank to recover the monetary benefits already paid
to its employees under the settlement. We are, therefore, of the opinion that
the reference made by the Central Government is wholly uncalled for and C
deserves to be set aside.

       13. Mr. Bhat, learned counsel for the second respondent, has submitted
that this Court should not interfere with the order of the Central Government
making a reference under Section I0 of the Act, as the appellant can ventilate         D
its grievances before the Industrial Tribunal itself and if the decision of the
tribunal goes against the appellant, the same may be challenged in accordance
with law. According to learned counsel the writ petition is pre-mature as the
appellant has got a remedy before the Tribunal to show that the reference is
either bad in law or is uncalled for. We are unable to accept the submission
made. It is true that normally a writ petition under Article 226 of the Constitution   E
should not be entertained against an order of the appropriate Government
making a reference under Section 10 of the Act, as the parties would get
opportunity to lead evidence before the Labour Court or Industrial Tribunal
and to show that the claim made is either unfounded or there was no occasion
for making a reference. However, this is not a case where the infirmity in the         p
reference can be shown only after evidence has been adduced. In the present
case the futility of the reference maqe by the Central Government can be
demonstrated from a bare reading of the terms of the reference and the
admitted facts. In such circumstances, the validity of the reference made by
the Central Government can be examined in proceedings under Article 226 of
the Constitution as no evidence is required to be considered for examining             G
the issue raised.

      14. In National Engineering Industries Ltd. v. State of Rajasthan and
Ors., [2000] I SCC 371, this Court held as under in para 24 of the report:
                                                                                       H
    74                         SUPREME COURT REPORTS [2005] SUPP. 5 S.C.R.

            "It will be thus seen that High Court has jurisdiction to entertain a writ
            petition when there is allegation that there is no industrial dispute and
            none apprehended which could be subject matter of reference for
            adjudication to the Industrial Tribunal under Section IO of the Act.
            Here it is a question of jurisdiction of the Industrial Tribunal, which
            could be examined by the High Court in its writ jurisdiction. It is the
B           existence of the industrial dispute which would clothe the appropriate
            Government with power to make the reference and the Industrial
            Tribunal to adjudicate it."

           15. In view of the discussions made above it is manifestly clear that
C there is no industrial dispute in existence nor there is any apprehended
    dispute between the appellant-Bank and the Federation (second respondent)
    and as such there is absolutely no occasion for making any reference for
    adjudication by the Industrial Tribunal. The reference being wholly futile, the
    same deserves to be quashed.

D         16. The appeal is accordingly allowed with costs. The judgments and
    orders of the learned single Judge dated 29.2.2000 and that of the Division
    Bench of the High Court dated 19.6.2000 are set aside and the reference made
    by the Central Government to the Industrial Tribunal on 29.12.1997 is quashed.

    K.G.                                                           Appeal allowed.




                                                       ,..


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "industrial dispute"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.