Power and Hierarchy of Labour Courts-1595431790

LEGAL PROCEEDINGS,
GOVERNMENT INSPECTIONS,
AND RAIDS
Labour Courts, Industrial Tribunals, And
Other Adjudicatory Authorities, And
Mechanisms Under the Industrial Disputes
Act and Other Laws

Legal Proceedings, Government Inspections and Raids
Labour Courts, Industrial Tribunals And Other Adjudicatory Authorities And
Mechanisms Under Industrial Disputes Act and Other Laws

Various labour statutes and the Industrial Disputes Act, 1947 (“ID Act”) provides for a wide
variety of dispute resolution methods. Adjudication means a compulsory settlement of
disputes by Conciliation Officers, Labour Courts, Industrial Tribunals, or National Tribunals.

A Labour Commissioner’s Court is also established under various Labour Laws. We shall
discuss each of the afore-mentioned under separate heads below.

How are legal proceedings for violation of labour laws
initiated?
Legal proceedings under labour laws can be initiated in the following ways:

1. An employee can directly file a claim before the Labour Commissioner/Conciliation
Officer for an individual dispute.

2. An employee can file a complaint to an inspector for non-maintenance of registers,
non-furnishing of returns, not displaying abstracts of the Act in the organization’s
premises, etc. and request him to conduct a search.

3. An inspector may conduct an inspection suo motu (i.e. of his own accord) or upon
receiving a complaint from an employee, or directions from a labour commissioner.
Depending on the findings from the inspection, the inspector may give the
organization an opportunity to explain its stance. If the inspector is not satisfied, he
or she may initiate criminal proceedings (with the sanction of the labour
commissioner, wherever required under the law) for imposition of criminal
consequences for violation of employer’s obligations or non-maintenance of
registers, returns, etc.

4. Under certain scenarios, the labour commissioner may himself/herself authorize
initiation of recovery proceedings (for example, when the employer does not make
payment of minimum wage despite issuance of an order against him) and also
authorize initiation of criminal proceedings before the magistrate.

5. Employees may collectively approach a labour commissioner in his or her capacity
as a conciliation officer under the Industrial Disputes Act, in respect of industrial
disputes. The labour commissioner may enable them to arrive at a tripartite
settlement agreement or upon failure to arrive at such an agreement, refer the
matter to an industrial tribunal or labour court.

Brief note on inspections

An inspector’s duty is to conduct inspections and make sure that the provisions of various
Labour Laws are being followed. Inspector may give the defaulting organization an
opportunity to rectify its actions/inactions by issuing a show-cause notice and giving the

© Addictive Learning Technology Pvt. Ltd.
Any unauthorized use, circulation or reproduction P - 2
shall attract suitable action under applicable law.

organization sufficient time to correctly follow the rules and regulations made under the
various Acts. However, if the organization fails to do so, he may initiate criminal
proceedings against the organization. But to initiate the same, the Inspector first needs
consent from the Labour Commissioner.

Brief note on criminal proceedings

Criminal proceedings are initiated by filing a complaint before a Magistrate's Court and the
Magistrate may award a punishment for non-compliance. Cognizance in criminal
proceedings is taken by a Magistrate. The judge of the Labour Court can function in dual
capacity and has the powers of a Magistrate as well. However, criminal proceedings cannot
be undertaken before a tribunal or a labour commissioner as they only have the power to
award civil reliefs.

Section 34 of the ID Act clearly mentions that no court shall take cognizance of any offence
punishable under this Act or of the abetment of any such offence unless a complaint has
been made by or under the authority of the appropriate government. Further, it is
mentioned that no court inferior than a Metropolitan Magistrate or a Judicial Magistrate of
the first class can try any offence punishable under this Act. It is pertinent to mention here
that any person who commits a breach of a settlement agreement or award, he may be
punished as per Section 29 of the ID Act.

When no other statute is able to protect one’s rights, that person can directly go for a civil
claim. For example - if a person has a problem with how the trade union elections were
conducted, that person can directly approach a civil court as this does not fall under any
criteria which the trade union registrar has to see while registering the trade union.

Types of Courts
Labour Commissioners’ Courts

[constituted by the appropriate government; conferred powers under different Acts
relating to gratuity (called controlling authority), minimum wages, payment of wages (called
controlling authority), under trade unions (functions of a register), the Industrial Disputes
Act (functions of a Conciliation Officer), etc.]

A claim pertaining to disputes such as non-payment of minimum wage, non-payment of
salary by the specified day of the month, non-payment of gratuity, etc. under different
labour laws are filed before the Labour Commissioner’s Court.

For example, as per Section 15 of the Payment of Wages Act, claims arising out of
deductions from wages or delay in payment of wages can be filed before a Labour
Commissioner provided the same has been notified by the appropriate government.
Further, Section 22 specifies bar on the suits wherein the courts are restricted from
entertaining any suit pertaining to the recovery of wages or of any deduction from wages


insofar as the sum so claimed forms the subject of an application under Section 15, could
have been recovered by an application under Section 15, etc.
Another example could be of Minimum Wages Act, 1948 wherein according to Section 20,
claims arising out of payment of less than the minimum rates of wages or in respect of the
payment of remuneration for days of rest, etc. may be filed before a Labour Commissioner.

Note: The government is yet to notify an authority for the Code on Wages, 2019. Most likely
it would be a Labour Commissioner because the purpose of introducing Code on Wages is
to simplify the law and not to overhaul the administrative system. The Act received the
assent of the President on the 8th of August, 2019, however, the government is yet to notify
the date on which the Act will come into force.

The Labour Commissioner is the one who hears matters related to wages, trade unions,
etc. However, under the Industrial Disputes Act, 1947, Labour Commissioner is called as a
Conciliation Officer who further refers the matter to Industrial Tribunal or Labour Court, if
the dispute doesn’t get resolved. Under this Act, the first stage is attempting conciliation at
the instance of the union or the employer and if it fails, the Conciliation Officer refers it to
the Industrial Tribunal or the Labour Court for adjudication. If a settlement is arrived at
during the conciliation proceedings, it is known as tripartite agreement i.e. agreement
between employee/trade union, employer, and Conciliation Officer.

It is interesting to note that an Inspector’s office under various labour laws is attached to
the office of Labour Commissioner. Inspector’s duty is to ensure that an organization is
complying with the provisions; he may inspect the organization’s premises, issue various
kinds of notices, may demand evidence as well. An inspector can conduct independent
proceedings, but cannot impose any punishment for violation for which criminal/civil
penalties are specified. Inspectors can’t impose any adverse consequences. It is only the
Labour Commissioner who can conduct a legal proceeding whose designation may be an
Assistant Labour Commissioner, Deputy Labour Commissioner or Joint Labour
Commissioner as per the Act. This depends as to how the Appropriate Government (Centre
or State Government) notifies the authorities.

Under Section 7(7) of the Payment of Gratuity Act, 1972, if a person is aggrieved by the
order of the controlling authority (as notified under Section 3 of the Act; usually a Deputy
Labour Commissioner or Assistant Labour Commissioner), such a person can file an appeal
to the appropriate government or authority. The appellate authority is within the labour
commissioner’s office itself. For example, in some states, the appeal can be made to a Joint
Labour Commissioner. Essentially, an appeal lies from a Labour Commissioner of lower
rank to a Labour Commissioner of higher rank.

Under the Trade Unions Act, 1926, the Labour Commissioner’s jurisdiction is limited to
matters pertaining to the registration of trade union. A civil suit is to be filed for matters
which are not specifically mentioned in the Trade Unions Act, such as a dispute between
the office bearers of the union which is civil in nature.


When do Labour Courts or Industrial Tribunals get involved?

Labours Courts and Industrial Tribunals are authorities under the Industrial Disputes Act
and schedule mentioned in the Act itself states which matter pertaining to a particular
subject goes where. The composition of both the authorities is different, however, both are
situated in the same physical premises. An Industrial tribunal has no power to impose
criminal punishment.

If the conciliation proceedings fail, the conciliation officer refers it to the Labour Court or
Industrial Tribunal. A direct reference may also be made by the appropriate government to
the Labour Court or Industrial Tribunal, if it feels the need of doing the same as per the
facts and circumstances of the case.

Under the Industrial Disputes Act, reference of disputes to labour courts, industrial
tribunals or the national tribunal is only possible once they assume the nature of an
‘industrial dispute’. A dispute involving an individual workman can assume the status of an
industrial dispute, if the trade union takes it up.

To answer this question, we need to first understand that there are two types of disputes
i.e. individual disputes and industrial disputes. Individual disputes are those which concern
one particular person and are resolved by grievance redressal machinery within the
organization or under different Acts such the Payment of Wages Act, the Payment of
Gratuity Act, the Minimum Wages Act, etc.

All the industrial disputes are heard by the Industrial Tribunal. Industrial disputes are those
which involve matters pertaining to a large group of people, for example, dispute pertaining
to leave and attendance policy of an organization - it is related to a large number of people
instead of one particular individual.

However, neither an individual worker nor can trade unions initiate proceedings at these
forums on their own. The ‘appropriate government’ must refer such disputes to
adjudication.

This explains why trade unions are closely connected with political parties. Unlike the
Ministry of Corporate Affairs or other regulatory bodies which perform administrative
functions online, because there is no straight administrative procedure for the appropriate
government to refer disputes to labour courts or tribunals.

The connection of a trade union with a political party is critical so that it can initiate
government machinery to refer an industrial dispute to the labour court or tribunal, if the
need arises.

There is an exception to the above, as per Section 2A of the Industrial Disputes Act,
retrenchment, dismissal, or termination of a workman gives the right to the workman to
approach the labour court or tribunal directly. In other words, an exception to industrial


disputes wherein an individual dispute is considered as an industrial dispute is the matter
pertaining to discharge or dismissal of an employee. In such a case, the employee who has
been discharged or dismissed has the right to approach the tribunal directly.

Further, Section 33 read with 33A of the Industrial Disputes Act states that the conditions of
service need to be unchanged during the pendency of the proceedings. If any adverse
action is taken or any conditions pertaining to the employee is adversely affected during
the pendency of the proceedings, that employee gets a direct right to approach the labour
court or industrial tribunal.

The following points regarding the difference in the nature of matters over which labour
courts and industrial tribunals exercise jurisdiction must be noted:

● Tribunals handle a lot of technical work pertaining to wages, hours of work, leave,
bonus, discipline, retrenchment, etc. (see the Third Schedule of the Industrial
Disputes Act); and
● Labour courts are required to look into the propriety of orders passed by employers
under the Standing Orders Act, discharge or dismissal, application or interpretation
of standing orders, the legal validity of a strike or lockout, and any other matters not
listed to be within the jurisdiction of the industrial tribunals in the Third Schedule.
Note that the power to impose any criminal punishments (such as fine or
imprisonment) is only available with labour courts and not tribunals.

Note: In several locations, the labour court and tribunal are combined in one physical
location and are referred to as ‘labour-court-cum-industrial tribunal’.

Taking in consideration the example of the State of Maharashtra - another way through
which jurisdiction may be granted is through the Maharashtra Recognition of Trade Unions
and the Prevention of Unfair Labour Practices Act, 1971. This Act creates specific
jurisdiction in respect of unfair labour practices which may be heard either by the Industrial
Tribunals or Labour Courts.

In other situations, what are the dispute resolution mechanisms available to workers and
trade unions, if the appropriate government does not refer the dispute to adjudication?
Approaching the grievance redressal authority, entering into settlement agreements
through a collective bargaining process (between unions and employers) and a voluntary
arbitration mechanism are the three available methods. In fact, the appropriate
government cannot refer an industrial dispute for adjudication unless it is first referred to
the grievance redressal authority and the parties refuse to accept the decision of the
authority.


Labour Courts (under the Industrial Disputes Act)

Jurisdiction

The matters provided for in the second schedule of the ID Act fall within the jurisdiction of
1
the labour courts. These matters include the following:

1. The propriety or legality of an order passed by an employer under the standing
orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workman including reinstatement of or grant of relief to,
workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lockout; and
6. All matters other than those specified in the third schedule.

Provided that, any matter specified in the Third Schedule which is not likely to affect more
than a hundred workmen can also be tried by a Labour Court.

Powers of Labour Courts

Labour courts have the following powers:

a) Reinstatement: Reinstatement means restoring a dismissed or discharged workman
to his original employment status. If a labour court decides that the dismissal or
discharge of a workman was not justified, it can order reinstatement on such terms
and conditions that it deems fit.

b) Specific Powers of Civil Court: A Labour Court shall have the same powers as vested
in a civil court under the Code of Civil Procedure, 1908 when trying a suit in respect
of the following matters:

● Enforcing the attendance of any person and examining him on oath;
● Compelling the production of documents and material objects;
● Issuing commission for examination of witnesses; and
● Any other matter that may be prescribed.

c) Costs: A labour court can order the quantum of costs to be paid and who shall pay
such costs in all the proceedings before it.
It is to be noted here that an award given by a Labour Court shall be executed by a
Civil Court. Apart from the aforementioned statutory powers, the courts through
1
Section 7, Industrial Disputes Act, 1947


their judicial decisions have also interpreted the labour courts as having the
following powers:

● Labour court is empowered to modify the punishment of discharge/dismissal
2
of a workman, even if the enquiry is valid.

● A court is not empowered to substitute the punishment of removal of a
3
workman unless it shocks the conscience of the court.

● Under section 11A of the Industrial Disputes Act, the labour court should act as
4
revisional and not as an appellate court.

● Labour Court/Tribunal can interfere when punishment is disproportionate to
the misconduct. Labour court can modify the punishment, if it is
5
disproportionate to the guilt. Only labour courts and not the High Court will
determine as to whether the punishment is proportionate to the misconduct
6
or not.

● Even though the Labour Court is empowered to modify the punishment of
dismissal and discharge but keeping in view the gravity of misconduct, duly
proved in fair and proportionate enquiry resulting into a dismissal of services
of the workmen, the same will not be modified and the High Court has upheld
7
the award of the Labour Court.
Industrial Tribunals (under the Industrial Disputes Act)

Jurisdiction

The Industrial Tribunal is assigned the jurisdiction to adjudicate upon industrial disputes
specified in the Second and Third Schedule of the Act or any matter appearing to be
8
connected with or relevant to such disputes, referred to it .

The following matters are specified in the Third Schedule of the Act -

1) Wages including the period and mode of payment;
2) Hours of work and rest intervals;
3) Leave with wages and holidays;
4) Compensatory and other allowances;
5) Bonus, profit sharing, provident fund, and gratuity;
2
Ram Krishan Singhal v. Presiding Officer 2000 LLR 301 (Delhi HC)
3
Yusuf Khan v. Madhya Pradesh Electricity Board, (2000) 4 LLN 495
4
Calcutta Jute Manufacturing Company Ltd v. State of West Bengal (2001) 91 FLR 1203
5
Gwalior Potteries v. Bhagwan Dass, 2002 LLR 255
6
V Ramana v. Andhra Pradesh State Road Transport Corporation 2002 LLR 216
7
Bihar Engineering Kangar Union, Refugee market, Dhanbad v. Presiding Officer, Labor Court, Bokaro Steel City,
Bokaro 2003 LLR 992
8
Section 10(1)(d) Industrial Disputes Act 1947


6) Shift working otherwise than in accordance with standing orders;

7) Classification by grades;
8) Rates of discipline;
9) Rationalization;
10) Retrenchment of workmen and closure of establishment; and
11) Any other matter that may be prescribed.

Reference of an industrial dispute to an industrial tribunal will mean restricted jurisdiction
of the tribunal, if the issues involved are specified by the appropriate government. For
instance, if any government refers to the question of retrenchment, the tribunal might have
the necessity of considering the nature of wage-structure on which the government has no
order of reference. Here, specifically, tribunal cannot go beyond considering the question
of retrenchment, though consideration of wage-structure is incidentally necessary.

Powers

The powers of an industrial tribunal are same as that of a labour court as mentioned
above. However, Industrial tribunals don’t have the power to impose criminal punishment.
They have the same powers as are vested in a Civil Court under the Code of Civil Procedure,
1908.

Further, every inquiry or investigation shall be deemed to be a judicial proceeding within
9
the meaning of Sections 193 and 223 of the IPC 1860. The tribunal may also appoint, as it
thinks fit, one or more persons having special knowledge of the matter as an assessor to
10
advise it in the proceedings. If during adjudication the Tribunal is satisfied that the order
of discharge or dismissal was not justified, it may set aside that order and award a direct
11
reinstatement of the workman.
National Tribunals (under the Industrial Disputes Act)

National Tribunals are set up by the Central government to address industrial disputes
which involve questions of national importance or are of such a nature that industrial
establishments in more than one state are involved or affected by such disputes. For
instance, closure of factories of a large-scale employer nationwide. This would affect
employment as well as industrial establishments in more than one state. Hence, such a
dispute may be referred to as a national tribunal.

Jurisdiction

National Tribunals do not have appellate jurisdiction. If the dispute is of national
importance or is of such a nature that industries in more than one states are likely to be
affected, the Central Government may refer it to a National Tribunal, even if the Central
9
Section 11(3), Industrial Disputes Act 1947
10
11
Section 11(A), Industrial Disputes Act 1947


Government is not the appropriate Government in respect of that industry. Additionally,
the Supreme Court has held that the jurisdiction of the tribunal is specifically limited to the
points specifically referred for its adjudication and matters incidental thereto; the tribunal
12
cannot go beyond the terms of reference.

Powers

The National Tribunals are created to hold their proceedings expeditiously and submit their
award to the appropriate government within the period specified in the order referring to
13
such industrial dispute. They have the same powers as are vested in a Civil Court under
the Code of Civil Procedure, 1908. Further, every inquiry or investigation shall be deemed to
14
be a judicial proceeding within the meaning of sections 193 and 223 of the IPC 1860. The
tribunal may also appoint, as it thinks fit, one or more persons having special knowledge of
15
the matter as an assessor to advise it in the proceedings. If during adjudication the
Tribunal is satisfied that the order of discharge or dismissal was not justified, it may set
16
aside that order and award a direct reinstatement of the workman.

Cognizance

It is important to understand how different courts and tribunals take cognizance of
industrial disputes. Cognizance essentially means that how would a labour court or an
industrial or national tribunal take note of an industrial dispute. The ID Act through section
10 provides for cognizance of industrial disputes through reference by the appropriate
government. Where the appropriate government is of the opinion that an industrial dispute
exists or is apprehended, it may at any time by an order in writing refer the dispute to:

a) Labour Court, if the matter falls within the Second schedule.
b) Tribunal, if the matter falls within Second or Third schedule.

Where the Central Government is of the opinion that any industrial dispute exists or is
apprehended and the dispute involves any question of national importance or is of such a
nature that industrial establishments situated in more than one State are likely to be
interested in, or affected by, such dispute and that the dispute should be adjudicated by a
National Tribunal, the Central Government may, whether or not it is the appropriate
Government in relation to that dispute, at any time, by order in writing, refer the dispute or
any matter appearing to be connected with, or relevant to, the dispute, whether it relates to
any matter specified in the Second Schedule or the Third Schedule to a National Tribunal
for adjudication.

12
Pottery Mazdoor Panchayat v. Perfect Pottery Co. Ltd. 1979 (55) FJR 511
13
14
15
16
Section 11(A), Industrial Disputes Act 1947


Please note that it is not only when an industrial dispute exists but also when one is
apprehended that a reference may be made. The time limit within which an award has to
be rendered post-reference is three months for an individual workman.

Application for reference

Parties to a dispute may apply for the reference of an industrial dispute to the appropriate
government. Such application can be made jointly or separately. If the appropriate
government is satisfied that the persons applying represent the majority of each party, they
17
shall make the reference accordingly .

The application shall be made in Form A and shall be delivered personally or forwarded by
registered post to the Secretary to the Government of India in the Ministry of Labour and
Employment (in triplicate), the Chief Labour Commissioner (Central), New Delhi, and the
Regional Labour Commissioner (Central), and the Assistant Labour Commissioner (Central)
concerned. The application shall be accompanied by a statement setting forth—

a) the parties to the dispute;

b) the specific matters in dispute;

c) the total number of workmen employed in the undertaking affected;

d) an estimate of the number of workmen affected or likely to be affected by the
dispute; and

e) the efforts made by the parties themselves to adjust the dispute.

The application and the accompanying statement should be signed:

a) If the applicant is the employer, by the employer himself or if the employer is a
company, by the principal officer of such company.

b) If the applicants are workmen, by the President and secretary of a trade union or by
five authorised representatives of the workmen.

c) If the applicant is an individual workman, by the workman himself.
PF Commissioner’s Courts
As per Section 5D of the Employees’ Provident Funds and the Miscellaneous Provisions Act,
1952, a Central Provident Fund Commissioner (Chief Executive Officer of the Central Board
and shall be subject to the general control and superintendence of that Board) is to be
appointed who can further appoint Additional Central Provident Fund Commissioner,
17
Section 10(2), Industrial Disputes Act, 1947


Deputy Provident Fund Commissioner, Regional Provident Fund Commissioners, Assistant

Provident Fund Commissioners as per the requirement of each State.

If an employee has a PF related claim, he can approach the PF Commissioner’s office. Also,
regulatory proceedings (for not maintaining registers or not making contributions) can be
initiated against the organization by the PF Commissioner.
Legal proceedings at ESIC

As per Section 3 of the Employees’ State Insurance Act, 1948, an Employee’s State Insurance
Corporation is established which handles matters relating to non-payment of contribution
by an organization. For example, if contribution is due from an employer but is not paid by
him, the Corporation is empowered to pass an order against them.

Reliefs that can be awarded by labour courts and industrial
tribunals
Reliefs that can be awarded are reinstatements on such terms and conditions as the court
or tribunal thinks fit and it can also award a lesser period of punishment. Where an appeal
is pending before the High Court or Supreme Court, but the labour court or industrial
tribunal has passed an order of reinstatement, full wages are to be paid to the workmen by
the employer as per Section 17B of the Act.

As per Section 17 of the Industrial Disputes Act, 1947, awards of a labour court or industrial
tribunal needs to be published by the appropriate government within 30 days of receipt of
the award. As per Section 17-A, the award is in force after 30 days from the date of its
publication. As per Section 19 of the Act, ordinarily, the award is in force for a period of one
year after publication, unless the appropriate government reduces or extends its duration.

State-level amendments to the Industrial Disputes Act may contain additional provisions
regarding the powers of the courts. For example, in some states, there is an appellate
procedure to a special ‘industrial court’ where a labour court issues an order of conviction
for a criminal violation. Make sure you check for applicable state amendments before
arriving at a conclusion on a particular issue.

Hierarchy between labour courts, industrial, and national
tribunals
The jurisdiction of the three forums has been clearly demarcated in terms of what matters
can be addressed by each. While labour courts typically handle disputes pertaining to
workmen and employers, the tribunals handle disputes pertaining to working conditions.
The National Tribunal further handles only niche matters which are of national importance.
Also, matters given in the Third Schedule can also be brought before the labour court, if the


number of affected workmen is less than 100. Some examples have been set out below for

further clarity of understanding regarding the scope of each forum:

● If trade unions go on an illegal strike, the matter will necessarily lie in the labour
courts.
● If workers are not being given their statutory day-off, the matter can lie with the
industrial tribunal or the labour court depending upon the number of affected
employees. If the number of affected employees is less than 100, the matter may lie
in labour court, but if it is more than 100, the matter has to necessarily lie before the
industrial tribunal.
● If a factory which provided nationwide employment is being closed, and someone
wants to challenge the same, the challenge may lie before the national tribunal.

On a perusal of the jurisdiction of the aforementioned forums, it can be deduced that
labour courts entertain a wide variety of cases, followed by the industrial and national
tribunals.

Voluntary Arbitration
Section 10A deals with voluntary arbitration of industrial disputes. Where any industrial
dispute exists or is apprehended and the employer and the workmen agree to refer the
dispute to arbitration, they may, at any time before the dispute has been referred under
section 10 to a Labour Court or Tribunal or National Tribunal, by a written agreement, refer
the dispute to arbitration and the reference shall be to such person or persons (including
the presiding officer of a Labour Court or Tribunal or National Tribunal) as an arbitrator or
arbitrators as may be specified in the arbitration agreement.

Voluntary arbitration is not a common mechanism.

Grievance Redressal Machinery Under the Industrial
Disputes Act
Grievance redressal machinery is an internal mechanism created by the organization to
resolve individual disputes of workmen (not collective or industrial disputes). This is not
‘state-created machinery’, like industrial tribunals, labour courts or labour commissioner’s
courts, but is created by the organization pursuant to the Industrial Disputes Act.

Section 9C of the ID Act mandates that every industrial establishment employing twenty or
more workmen shall have one or more Grievance Redressal Committee for the resolution
of disputes arising out of individual grievances. Notwithstanding anything contained in this
section, the setting up of Grievance Redressal Committee shall not affect the right of the
workman to raise an industrial dispute on the same matter under the ID Act.

The Grievance Redressal Committee may complete its proceedings within thirty days upon
receipt of a written application by or on behalf of the aggrieved party. The workman who is


aggrieved with the decision of the Grievance Redressal Committee may prefer an appeal to

the employer against the decision of the Grievance Redressal Committee and the employer
shall, within one month from the date of receipt of such appeal, dispose off the same and
send a copy of his decision to the workman concerned.

Recovery Proceedings
In case of default by the employer to make payment despite an order issued by the labour
commissioner, recovery proceedings to recover the money by attachment and sale of the
movable and immovable assets of the organization can be initiated.

The method of recovery may be specified under the relevant legislation.

Examples of provisions for recovery under some statutes are specified below:

● Section 20(5) of the Minimum Wages Act (recovery as a fine imposed by a
Magistrate)
● Section 21 of the Payment of Bonus Act (as ‘arrears of land revenue’)
● Section 8 of the Payment of Gratuity Act (as ‘arrears of land revenue’)
● Sections 8A to 8E of the Employees Provident Funds and the Miscellaneous
Provisions Act, 1952

Sometimes, the law may contain an expression that dues may be recovered as ‘arrears of
land revenue’. Where the statute prescribes for recovery as arrears of land revenue, one
must refer to the provisions of the revenue recovery law of the relevant state. The
legislation may be named as a ‘revenue recovery Act’ or it may be under the land revenue
code of the relevant state. Most revenue-recovery legislations are passed on the lines of the
Revenue Recovery Act, 1890. For West Bengal, refer to the Bengal Public Demands Recovery
Act, 1913. For Maharashtra, it is the Maharashtra Land Revenue Code, 1966.
Garnishee Proceedings under the

Code of
Civil
Procedure (CPC)
under Order 21 (when the dues can be claimed from a third
party)
Garnishee proceedings under the CPC are useful when the amount due to be paid can be
deducted from a third party who owes the defendant money. In that case, the money is
directly claimed by the plaintiff against the third party, who can directly pay the plaintiff. In
this way, both liabilities get extinguished.

Assume that a husband and wife are working together in an organization. They file for
divorce and the court grants the same. After getting a divorce, the wife claims for
maintenance but the husband fails to pay the same. To execute this decree of
maintenance, the wife can make use of garnishee proceedings under Order 21 Rule 46 read
with 46A of the Civil Procedure Code.


Under such a proceeding, the wife can ask the court under Order 21 to direct the
organization to pay her the amount due to her (amount settled as a maintenance) by
deducting the same from her husband’s wages. The organization’s responsibility in that
case would be limited to attend the court’s proceedings and comply with the order of the
court. It may be required to inform the court and the parties in case the husband leaves
employment or is terminated. Such a proceeding is initiated at the stage of execution of a
decree and not at suit stage.

The same is illustrated below:

Assume in the above situation that the husband has retired and is no longer working with
the organization. The most probable solution in such a situation would be to give the
husband’s pension, leave encashments, gratuity amount, etc. to the wife, however, the
organization can not do so because the husband has a right over such emoluments.
Pension, gratuity amount, leave encashments, PF, etc. are benefits given to the employee
for his service and they retain their character until they are handed over to such employee.
The same was established in P. Sangili v. The Chief Manager, Union Bank of india & Ors.
(Madras High Court 2017).


Execution/Recovery Proceedings by Labour Authorities against

Employers and Contractors under the ESI and the PF Laws
The Provident Funds Act and the Employees State Insurance Act empower the PF
Commissioner or the Director of the ESI Corporation to directly recover employers’
contributions (in the event of default by an employer) from third parties who owe the
employer a debt.

Thus, such contributions can directly be recovered from the organization’s clients who have
dues for the products/services supplied by the organization.

This is in addition to the ordinary recovery powers to recover directly against the
organization’s estate and property.

Statutory provisions are explained in detail below.

Recovery by the PF Commissioner under the Employees’ Provident
Funds and the Miscellaneous Provisions Act, 1952

If an employer fails to pay his share to the Provident Fund and a third party (any
organization dealing with the employer) is required to pay a certain amount of payment to
the employer, the PF Commissioner can directly order the third party to deduct the arrears
due from the employer and pay the amount so deducted to the credit of the Central
Provident Fund Commissioner under Section 8F of the Employees’ Provident Funds and the
Miscellaneous Provisions Act, 1952.


Same is illustrated below:

Recovery by the ESI Director General under the Employees’ State
Insurance Act, 1948

If a principal employer or an immediate employer fails to pay the required contribution to
Employees’ State Insurance and a third party (any organization dealing with the employer)
is required to pay a certain amount of payment to the employer, the Director General can
directly order the third party to deduct the arrears due from the employer and pay the
amount so deducted to the credit of the ESI Corporation under Section 45G of the
Employees’ State Insurance Act, 1948.

Same is illustrated below:



Writ Courts
After the statutory appeal available is exhausted, or in situations where no appeal is
specified, a party which is dissatisfied may file a writ petition under Article 226 of the
Constitution of India before the High Court.

Remember that admission of a writ petition is discretionary for the High Court. A High
Court will admit it, only if there is no alternative efficacious remedy and a legal right of a
party is violated by an authority. It is not like a regular appeal.

We will not go into the details of what makes a writ petition admissible by the Court, but we
will discuss the routes when a writ petition lies before the court.

For example, a writ petition lies in the following circumstances:

- against the order of the appellate authority under the Payment of Gratuity Act
- against the order of the Labour Commissioner under the Minimum Wages Act
- against the order of the EPF Appellate Tribunal (i.e. the appellate authority from the
decision of the PF Commissioner)

A party which is aggrieved by an order of the High Court under Article 226 can file a special
leave petition before the Supreme Court under Article 136 of the Constitution of India.
Once again this is a discretionary remedy.


Power and Hierarchy of Labour Courts-1595431790

Uploaded by

Copyright:

Available Formats

You might also like

Power and Hierarchy of Labour Courts-1595431790

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Power and Hierarchy of Labour Courts-1595431790

Uploaded by

Copyright:

Available Formats

LEGAL PROCEEDINGS,

Labour Commissioners’ Courts

When do Labour Courts or Industrial Tribunals get involved?

Labour Courts (under the Industrial Disputes Act)

Industrial Tribunals (under the Industrial Disputes Act)

6) Shift working otherwise than in accordance with standing orders;

National Tribunals (under the Industrial Disputes Act)

Deputy Provident Fund Commissioner, Regional Provident Fund Commissioners, Assistant

Legal proceedings at ESIC

number of aﬀected workmen is less than 100. Some examples have been set out below for

aggrieved with the decision of the Grievance Redressal Committee may prefer an appeal to

Garnishee Proceedings under the

Execution/Recovery Proceedings by Labour Authorities against

Same is illustrated below:

You might also like