Holding

The government may refer an industrial dispute for adjudication at any time, provided the dispute exists on the date of reference; the mere passage of time does not extinguish this power.

Summary

S.K. Pandit, a clerk dismissed in 1975, claimed his termination was illegal and raised an industrial dispute. Ten other workmen, represented by a union, had earlier raised a similar dispute which was referred to an Industrial Tribunal and resulted in an award. The Board assured Pandit that any benefit granted to the ten workmen would extend to him, but he received none. After a long period of inactivity, conciliation proceedings were revived in 1992 and the State Government, on 29 March 1993, referred Pandit’s dispute to a Labour Court under Section 4K of the Uttar Pradesh Industrial Disputes Act. The Board challenged this reference; the Allahabad High Court quashed it, holding that a 15‑year delay meant the dispute had ceased to exist. The Supreme Court allowed the appeal, holding that the government’s power to refer under Section 4K is exercisable “at any time” provided the industrial dispute exists on the date of reference, and that delay alone does not extinguish the power. Consequently, the High Court’s order was set aside and the reference upheld.

Issues considered

The scope of the State Government’s power under Section 4K of the Uttar Pradesh Industrial Disputes Act to refer an industrial dispute for adjudication, particularly whether it is limited by the lapse of time since the dispute arose.
Whether a dispute that remains alive, albeit dormant, can be referred after a long period of inactivity.
Whether the High Court was correct in quashing the reference on the ground of an inordinate delay.

Legislation cited

Subjects

industrial disputeSection 4Kreference for adjudicationdelaylapse of timeconciliationlabour lawUttar Pradeshre‑trenchmentgovernment power

Judgment

SAPAN KUMAR PANDIT A
v.
-< U.P. STATE ELECTRICITY BOARD AND ORS.

JULY 24, 200 I

[K.T. THOMAS AND R.P. SETHI, JJ.] B

Labour Laws :

' Uttar Pradesh Industrial Disputes Act, 1947.

Section 4K-Industrial Dispute-Reference ofdispute for adjudication-
c
Power of Government-Sc9pe of-Held, government has power to refer

... disputes for adjudication so long as industrial dispute exists on the date of
reference-Power not circumscribed by lapse oftime since inception ofdispute
so long as dispute exists-Concilia.tion proceedings revived after 15 years
since inception of dispute-Reference of dispute by Government-Challenged D
on the ground of delay-Dispute remained alive though not galvanized for
justified reasons-Held, under the facts reference of dispute not liable to be
quashed.

. -!I
Words & Phrases- 'At any time '-Meaning of in the context of the U.P.
Industrial Disputes Act, 1947-Section 4K. E

Appellant alongwith 10 other workmen was retrenched by the
respondent-Board. Appellant raised an industrial dispute that termination of
his services was illegal. The union on behalf of the other 10 workmen also
raised an industrial dispute and State Government referred the matter to
F
"'•. Industrial Tribunal. Respondent gave assurance to appellant that if the 10
workmen succeeded before Labour Court, then the same benefit would be
extended to appellant. High Court ultimately held that retrenchment of the
10 workmen was bad and directed their reinstatement which was confirmed
by dismissal of special leave petition of respondent. When appellant found
that same benefit was not being extended to him despite persistent requests 0
to the Board, he revived conciliation proceedings. State Government made
, reference for adjudication of dispute as per Section 4K of the U.P. Industrial
Disputes Act. Respondent-Board filed writ petition challenging reference
'i which was allowed by the High Court. High Court held that appellant remained
silent for more than 15 years and delay was so inordinate that dispute had
1081 H
1082 SUPREME COURT REPORTS (200 I] 3 S.C.R.

A ceased to exist 6y efflux of time and hence no reference should have been
made. Aggrieved by the judgment of High Court, appellant workman has fded
the present appeal.

Allowing the appeal, the Court

B HELD: 1.1. The words "at any time' as used in Section 4K of the U.P.
Industrial Disputes Act are primafacie indicator to a period without boundary.
But such an interpretation making the power unending would be pedantic.
There is inherent evidence in the sub-section itself to indicate that the time
has some circumscription. The words "where the Government is of opinion
that any industrial dispute exists or is apprehended" have to be read in
C conjunction with the words "at any time". They are, in a way, complimentary
to each other. The Government's power to refer an industrial dispute for
adjudication has thus one limitation of time and that is, it can be done only
· so long as the dispute exists. In other words, the period envisaged by the
enduring expression "at any time" terminates with the eclipse of the industrial
D dispute. It, therefore, means that if the dispute existed on the day when the
reference was made by the Government it is idle to ascertain the number of
years which ·elapsed since the commencement of the dispute to determine
whether the delay would have extinguished the power of the Government to
make the reference. Hence the real test is the existence of industrial dispute
on the date of reference for adjudication. The Government can exercise the
E power whatever be the range of the period which lapsed since the inception
of the dispute. [1086-B-C-D-E-FJ

1.2. If the government decides to make the reference there is a
presumption that in the opinion of the government there ex.isted such a
dispute. In considering the factual position whether the dispute did exist on
F the date of reference the Government could take into account factors, inter \
,.c
alia, such as· the subsistence of conciliation proceedings. It is of no
consequence that conciliation proceedings were commenced after a long
time. But such conciliation proceedings are evidence of the existence of the
industrial dispute. It is an admitted fact that on the date of reference in this
G case the conciliation proceedings were not concluded. It so, it cannot be said
that the dispute did not exist on that day. (1086-G-H; 1087-A-B]

Mis. Western India Watch Co. Ltd. v. The Western India Watch Co.
Workers Union, AIR (1970) SC 1205, followed.
Nedungadi Bank Ltd v. KP Madhavankutty and Ors., [2000] 2 SCC
H 455, cited.
S.K. PANDIT v. U.P. STATE ELECTRICITY BOARD, [THOMAS,J.] 1083
Mis. Shalimar Works Ltd. v. Their Workmen, AIR (1959) SC 121 7, A
distinguished.

2. There are cases in which lapse of time had caused fading or even
eclipse of the dispute. Bnt when the dispute remained alive though not
galvanized by the workmen or the Union on account of other justified reasons
it does not cause the dispute to wane into total eclipse. When the Government B
has chosen to refer the dispute for adjudication under Section 4K of the U.P.
Act the High Court should not have quashed the reference merely on the
ground of delay. The long delay for making the adjudication could be
considered by the adjudicating authorities while moulding its reliefs.
(1088-E-F] . C

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4471 of
2001.

From the Judgment and Order dated 17.9.99 of the Allahabad High Court
in C.M.W.P. No. 28159of1993.
D
M.P. Shorawala for the Appellant.

Sunil Kr. Jain and Vijay Hansaria for Mis. Jain Hansaria & Co. for the
Respondents.

The Judgment of the Court was delivered by E
THOMAS, J. Leave granted.

A period of fifteen years is apparently too long a range, even for a
Government to make reference of industrial dispute for adjudication. At the
first blush it looks inordinate a delay and so was felt by the High Court of F
Allahabad which consequently quashed the reference order passed by the
Government solely on the ground of such delay. The aggrieved workman has,
therefore, approached this Court challenging the aforesaid judgment of the
High Court. According to him the High Court should not have bypassed the
explanation offered by him as to why the Government did not make a reference
earlier. G
Appellant was appointed as a clerk on 1.1.1974 in the Electricity
Distribution Division, Mathura of the U.P. State Electricity Board (for short
'the Board'). But his services were terminated on 17.7.1975. He raised an
industrial dispute that the termination of his services was illegal. The State
Government by an order dated 29.3.1993 referred the following dispute to the H
1084 SUPREME COURT REPORTS [2001] 3 S.C.R.

A Labour Court for adjudication as per Section 4.K of the U.P. Industrial Disputes
Act (for short 'the U.P. Act'):

"Whether termination of the appellant on 17.7.1975 by the employer
was proper and legal; if so, to what reliefs the workman is entitled'?"

B The Labour Court took up the reference as Adjudication Case No. 158
of 1993. The respondent Board filed a writ petition before the Allahabad High
Court assailing the aforesaid reference order and also praying for quashing
the adjudication case pending in the Labour Court. The appellant was arrayed
as respondent No. 5 in the said writ petition. A single Judge of the High Court
of Allahabad took the view that the delay is so inordinate that the dispute
C has ceased to exist by efflux of time and hence no reference under the U.P.
Act should have been made. Accordingly, the order of reference passed by
the Government was quashed by the High Court. Learned single Judge made
the following epilogistic remarks:

"On consideration of various authorities, I am of the view that normally
D a dispute which is an industrial dispute be referred by the State
Government under Section 4-K of the U.P. Industrial Disputes Act so
. long such a dispute exists or the Government apprehends that such
a dispute is likely to exist. However, in case there is undue and
inordinate as w.ell as unexplained delay, presumption may arise on the
E facts and circumstances of a particular case that no dispute exists in
present and in such cases the reference made by the Government may
be quashed. In the facts and circumstances of the present case the
respondent No.5 kept silence for more than 15 years and he woke up
only after the petition of other co-workmen was allowed and he made
no efforts to get his dispute referred to the Industrial Tribunal or
F Labour Court. Now he cannot be allowed to raise such a dispute after
lapse of such a long time."

It is not a case that appellant woke up at the end of fifteen years like
a Rip Van Winkle and raised an industrial dispute. His version of what
G transpired during the long interval needs to be mentioned here. It reads like
this: Along with the appellant the Board retrenched IO other workmen. Those
IO belonged to a union (U.P. Bijali Karmachari Sangh, Mathura). The said
union raised the dispute on 16.9.1976 and the State Government referred the.
matter to the Industrial Tribunal, Kanpur. The Board gave an assurance to the
appellant that in the event of any of the claims of the l 0 workmen was upheld
H by the Labour Court the same benefit would be extended to the appellant, no
S.K. PAND!Tv. U.P. STATE ELECTRICITY BOARD, [THOMAS,J.] 1085
matter that he did not take up his cause to any legal forum. By the time the A
~
Industrial Tribunal decided the case of 10 workmen the Board had re-absorbed
two of them. However, the Industrial Tribunal passed an award on 10.11.1979
holding that those retrenched persons were entitled to retrenchment
compensation. The Tribunal further held that in view of the liberalised policy
of the Board the workmen concerned should be given an opportunity to
appear in the qualifying examination by relaxing the age on the basis of their B
initial date of appointment as could be seen from the muster roll and if they
succeeded in the examination they could be considered for appointment
-.,. against regular vacancies.

The Union was not satisfied with the said award. Hence they filed a writ
petition in 1980 before the High Court of Allahabad. On 28.4.1988 the High
c
Court allowed that petition and held that the retrenchment was bad in law and
that they are entitled to be reinstated. Though the Board filed a special leave
petition in this Court it was dismissed in 1989.

According to the appellant he was entertaining the expectation that the D
Board would extend the same benefit to him. He was persisting with his
request to the Board that he should be treated on a par with the 8 workmen,
f- some of whom were re-employed by the Board. When appellant found that
this was not done he approached the Conciliation Officer appointed by the
State Government. But his application for condoning the delay for initiating
conciliation proceeding was disallowed by the conciliation officer. However, E
the Deputy Labour Commissioner went to his rescue as the delay was
condoned and the conciliation proceedings were revived. This happened on
28.1.1992. It was in the aforesaid background that the State Government made
the reference for adjudication on 29.3.1993. It is at this stage we have to
~
extract Section 4K of the U.P. Act. F
'
"4K. Reference of disputes to Labour Court or Tribunal.-Where the
State Government is of opinion that any industrial dispute exists or
is apprehended, it may at any time by order in writing refer the dispute
or any matter appearing to be connected with, or relevant to, the
dispute to a Labour Court if the matter of industrial dispute is one of G
those contained in the First Schedule, or to a Tribunal if the matter
of dispute is one contained in the First Schedule or the Second
'--f Schedule for adjudication:

Provided that where the dispute relates to any matter specified in
the Second Schedule and is not likely to affect more than one hundred H
1086 SUPREME COURT REPORTS (2001] 3 S.C.R.

A workmen, the State Government may; if it so thinks fit, make ·the
reference to a Labour Court." ,>--.

The above section is almost in tune with Section 10 of the Industrial · ~

Disputes Act, 1947, and the difference between these two provisions does
not relate to the points at issue in this case. Though no time limit is fixed for
B making the reference for a dispute for adjudication, could any'State Government
revive a dispute which had submerged in stupor by long lapse of time and
re-kindled by making.a reference of it to adjudication? The words 'at any time'
as used in the section are prima facie indicator to a period without boundary. <
But such an interpretation making the power unending would be pedantic.
c There is inherent evidence in this sub-section· itself to indicate that the time
has some circumscription. The words "where the Government' is of opinion.
that any industrial dispute exists or is apprehended" have to be read in
conjunction with the words 'at any time'. They are, in a way, complimentary
to each other. The Government's power to refer an industnal dispute for
adjudication has thus one limitation of time and that is, it can be,_done only
D so long as the dispute exists. In other words, the period envisaged. by the
enduring expression 'at any time' terminates with the eclipse of the industrial
dispute. It, therefore, means that if the dispute existed on the day when the .A
reference was made by the Government it is i~le to ascertain the number of ,,
years which elapsed since the commencement of the dispute to determine
whether the delay would have extinguished the power of the Government to
E
make the reference.

Hence the real test is, was the industrial dispute in existence on the date
of reference for adjudication? If the answer· is in the negative the.n the
Government's power to make a reference would have extinguished. On the ~·

F other hand, if the answer is in positive terms the Government could have
exercised the power whatever be the range of the period which lapsed since
the inception of the dispute. That apart, a. decision of the government in this
regard cannot be listed on the possibility of what another party would think
whether any dispute existed or not. The sectioq indicates that if in the opinion
of the Government the dispute existed then the Government could make the
G reference. The only authority which can form such an opinion is the ...,-
government. If the government decides to make the reference there is a
presumption that in the opinion of the government there existed such a r-1
dispute.

H In considering the factual position whether the dispute did exist on the
S.K. PAND!Tv. U.P. STATE ELECTRICITY BOARD, [THOMAS,J.] 1087

date of reference the Government wuld take into account factors, inter alia, A
,,.-( such as the subsistence of conciliation proceedings. It is of no consequence
that conciliation proceedings were commenced after a long period. But such
conciliation proceedings are evidence of the existence of the industrial dispute.
It is an admitted fact that on the date of reference in this case the conciliation
proceedings were not concluded. If so, it cannot be said that the dispute did
not exist on that day. B

The High Court relied on the following observations of the decision of
~
this Court in Mis. Shalimar Works Ltd. v. Their Workmen, AIR (1959) SC 1217:

"It is true that there is no limitation prescribed for reference of disputes
to an industrial tribunal; even so it is only reasonable that dispute c
should be referred as soon as possible after they have arisen and
particularly so when disputes relate to discharge of workmen
wholesale, as in this case."

The context for making the said observations is while dealing with the D
scope of Section 33A of the ID Act. It is a special provision for adjudication

. as to whether conditions of service have been changed by an employer
during the pendency of conciliation or other adjudicatory proceedings. An
aggrieved person in such situation is given the right to make a complaint in
"' writing to one of the authorities mentioned in the section. Evidently the
context is different and hence the observations made by this Court in that E
context are not apposite so far as this case is concerned.
1·

Learned counsel for the Board invited our attention to a recent decision
of a two Judge Bench of this Court in Nedungadi Bank Ltd. v. K.P.
\ Madhavankutty and Ors., [2000] 2 SCC 455. No doubt in the said decision
F
it is said that the power of the Government under Section 10 of the ID Act
cannot be exercised at any point of time or for reviving the matters which
have already been settled although law does not prescribe any time limit. The
crux of the observations in the said decision is the following:

''.A dispute which is stale could not be the subject matter of reference G
under Section 10 of the ID Act. As to when a dispute can be said to
be stale would depend on the facts and circumstances of each case."
.'-i
It is useful to refer to a three Judge Bench decision of this Court as it
related to the scope of the very same provision i.e. Section 4K of the U.P. Act.
--1 In Mis. Western India Watch Co. Ltd v. The Western India Watch Co. Workers H
1088 SUPREME COURT REPORTS [200 I] 3 S.C.R.

A Union, AIR (1970) SC 1205 learned Judges made the following observations:

"Therefore, the expression 'at any time', though seemingly without
any limits, is governed by the context in which it appears. Ordinarily,
the question of making a reference would arise after conciliation
proceedings have been gone through and the conciliation officer has
B made a failure report. But the Government need not wait until such a
procedure has been completed. In an urgent case, it can 'at any time',
i.e., even when such proceedings have not begun or are still pending,
decide to refer the dispute for adjudication. The expression 'at any
time' thus takes in such cases as where the Government decides to
c make a reference without waiting for conciliation proceedings to begin
or to be completed. As already stated, the expression 'at any time' in
the context in which it is used postulates that a reference can only
be made if an industrial dispute exists or is apprehended. No reference
is contemplated by the section when the dispute is not an industrial.
dispute, or even if it is so, it no longer exists or is not apprehended,
D for instance, where it is already adjourned or in respect of which: there
is an agreement or a settlement between the parties or where the
industry in question is no longer in existence."

There are cases in which lapse of time had caused fading or even
eclipse of the dispute. If nobody had kept the dispute alive during the long
E interval it is reasonably possible to conclude in a particular case that the
dispute ceased to exist after some time. But when the dispute remained alive
though not galvanized by the worRmen or the Union on acc.ount of other
justified reasons it does not cause the dispute to wane into total eclipse. In
this case when the Government have chosen to refer the dispute for ),-
F adjudication under Section 4K of the U.P. Act the High Court should not have
quashed the reference. merely on the ground of delay. Of course, the long
delay for making the adjudication could be considered by the adjudicating
authorities while moulding its reliefs. That is a different matter altogether. The
High Court has obviously gone wrong in axing down the order of reference
made by the Government for adjudication. Let the adjudicatory process reach
G its legal culmination.

For the aforesaid reasons we allow this appeal and set aside the impugned
judgment.

A.K.T. Appeal allowed.