LABOUR LAW ASSIGNMENT

Guiding Principles of Industrial Adjudication

RITHVIK DINESHAN
ROLL NO: 34, 3/3 B BATCH
 Table of Contents

S.No. Topic Page

No.
1. Introduction to industrial adjudication 3
2. Guiding Principles of Industrial Adjudication 3-9
3. Conclusion 9
4. Reference 10
 GUIDING PRINCIPLES OF INDUSTRIAL
ADJUDICATION

Introduction to Industrial Adjudication

In legal terms, industrial adjudication is very important as it is a wonderful way to escape the
disputes that arise in a company, in a formal yet best way possible, which is polite yet strict.
Practically, Industrial dispute primarily refers to the disengagement between employers and their
employees. It is not a personal dispute of any one person. It engages a large number of workers’
association having a correlated interest. In the Industrial Disputes Act, 1947, industrial dispute
means, “Difference between employer and employer or between employer and workmen or
between workmen and workmen, or any dispute among these which are related to the employment
or non-employment or terms and conditions of employment of any person”.

Guiding principles of Industrial Adjudication are:-1)Public Interest , 2)Industrial harmony and

goodwill, 3) Development of Industrial Justice, 4)Expert Assistance, 5)Socio-Economic effects,
6)Reference to facts and circumstances of the case, 6)Tribunal to act in judicial manner, 7)
Expediency is no consideration, 8) Acceptability of decisions, 9)Natural Justice. Here we will
discuss mainly regarding tribunal to act in judicial manner, expediency is no consideration,
acceptability of decisions and natural justice principles.

Guiding principles of Industrial Adjudication

There are certain principles which guides the Industrial Adjudication process. These principles
were kept in mind while drafting the laws pertaining to the Industrial disputes like the Industrial
disputes Act, 1947. These principles are:

1. Public interest
2. Industrial harmony and goodwill
3. Development of industrial justice
4. Expert assistance
5. Socio-economic effects
6. Reference to facts and circumstances of each case
7. Tribunal to act in a judicial manner
8. Expediency is no consideration
9. Acceptability of decisions
10. Natural justice
1) Tribunal to act in judicial manner
It is a well-established principle that the job of the superior courts in any organization
is fundamentally adjudicatory that is declaring “what the law is” Earlier the Industrial
Dispute Act only provided only for the establishments of Industrial Tribunals for
adjudication of all industrial disputes, After the 1956 Amendment, the present three-
tier machinery of Labour Courts, Industrial Tribunals and National Tribunal, is
provided.
Where the National Tribunal is to be formed by the Central Government in
exceptional situations, viz., to resolve disputes of national importance or disputes
relating to the industrial establishments situated in more than one state, the Labour
Courts and National Tribunals are the normal adjudicatory bodies formed by all the
appropriate Governments i.e., the State Government and the Central Government, for
adjudication of industrial disputes. When tribunals follow all the necessary provisions
as stated in the industrial dispute act (written below) and give decision for the
industrial dispute, then we can say that the tribunals are acting in a judicial manner.
Labour Courts
Section 7 of the Industrial Dispute Act, 1947 provides that "The appropriate
Government may, by notification in the Official Gazette, constitute one or more
Labour Courts for the adjudication of industrial disputes relating to any matter
specified in the Second Schedule and for performing such other functions as may be
assigned to them under this Act"[6] and also specifies the qualification for the
presiding officer of a Labour Court.
Qualification for the appointment of a Presiding Officer of the Court:
 He is or has been the Judge of a High Court
 He has for a period of not less than 3 years been a district Judge or an Additional
Judge.
 He has held any Judicial office in India for not less than 7 years.
 He has been the Presiding officer of Labour Court constituted under any provision
Act for not less than 5 years.
Disqualification
Section 7-C of the Industrial Dispute Act, 1947 prescribes Disqualifications for the
presiding officer appointed to the Labour Court. It Provides that no person shall be
appointed to or continue in the office of a Labour Court, Tribunal or National
Tribunal, if:
a. he is not an independent person; or
b. he has attained the age of sixty-five years.
Jurisdiction of Labour Courts [Section-7]
1. The propriety or legality of any order passed by an employer under the Standing
Orders
2. The application and interpretation of Standing Order.
3. Discharge or dismissal of workmen, including reinstatement of, or grant of, or relief
to, workmen wrongfully dismissed.
4. Withdrawal of any customary concession or privilege.
5. Illegality or otherwise of a strike or lockouts; and
6. All matters other than those specified in the Third Schedule.
 Functions of Labour Court
Section 7 of the Industrial Disputes Act, 1947 itself provides for the functions of a
Labour Court that as follows:
1. Adjudication upon Industrial disputes specified in Second Schedule of the said
Act, the following matters are specified in the Second Schedule:
o The propriety or legality of any order passed by an employer under the
Standing Orders
o The application and interpretation of Standing Order.
o Discharge or dismissal of workmen, including reinstatement of, or grant of, or
relief to, workmen wrongfully dismissed.
o Withdrawal of any customary concession or privilege.
o Illegality or otherwise of a strike or lockouts; and
o All matters other than those specified in the Third Schedule.

2. Performance of some other functions as may be assigned to it under the

Industrial Dispute Act, 1947
The other matters assignable to Labour Courts are:
o Voluntarily reference of dispute by written agreement between the parties
under Section 10A
o Arbitrations reference under Section 10A.
o Permission to or approval of the action of discharge under Section 33.
o Complaint by the aggrieved employees under Section 33A
o Application under Section 33(c)2 for the computation of any money or any
benefit which is capable of being computed in the terms of money.
o Reference of awards or settlement for the interpretation in case of difficulty or
doubt under Section 36A.
Duties of Labour Courts
Labour Court shall hold its proceedings within the stipulated time and shall submit its
award to the appropriate government. The award must be in writing or signed by the
presiding officer. The Labour Court has the same power as a Civil Court.
Industrial Tribunals
Section 7-A provides Industrial Disputes Act, 1947 provides that "The appropriate
Government may, by notification in the Official Gazette, constitute one or more
Industrial Tribunals for the adjudication of industrial disputes relating to any matter,
whether specified in the Second Schedule or the Third Schedule, [and for performing
such other functions as may be assigned to them under this Act]. It also provides that
a Tribunal shall consist of one person only to be appointed by the appropriate
government.
Qualification for the appointment of a Presiding Officer of the Tribunal:
 He is, or has been a Judge of a High Court or
 He has, for a period of not less than three years, been a District Judge or Additional
District Judge;
 He is or has been Deputy Chief Labour Commissioner (Central) or Joint
Commissioner of the State Labour Department, having a degree in law and at least
seven years' experience including labour department including three years of
 experience as Conciliation Officer: Provided that no such Deputy Chief Labour
Commissioner or Joint Labour Commissioner shall be appointed unless he resigns
from the service of the Central Government or State Government, as the case may be
before being appointed as the presiding officer or;
 He is an officer of Indian Legal Service in Grade III with three years' experience in
grade.
Disqualification
Section 7-C of the Industrial Dispute Act, 1947 prescribes Disqualifications for the
presiding officer appointed to the Labour Court. It Provides that no person shall be
appointed to or continue in the office of a Labour Court, Tribunal or National
Tribunal, if:
a. he is not an independent person; or
b. he has attained the age of sixty-five years.
Jurisdiction of Industrial Tribunal
The Industrial Dispute Act, 1947 assigned Industrial Tribunal to adjudicate upon
industrial disputes provided in Second and Third Schedule of the Act or any matter
appearing to be associated or relevant to such disputes, referred to it under Section 10
(1) (d) of the Act. It is immaterial whether any such matter appearing to be connected
with or relevant to the basic dispute relates to any matter enumerated in Second
Schedule or Third Schedule or not. The first provision of Section 10 provides that "the
dispute relates to matter specified in the third schedule and it is not likely to affect
more than a hundred workmen, the appropriate government has the discretion to make
a reference to the Labour Court."
Functions of Industrial Tribunal
In India Industrial Tribunal were first established by the Industrial Dispute Act, 1947.
According to Section 7-A of Industrial Disputes Act, 1947 the main function of
Industrial Tribunal is to adjudicate industrial dispute enumerated under Second and
Third Schedule of the Industrial Disputes Act, 1947 and for performing such others
functions as may be assigned to them under the Act.
The following matters are specified in the Second Schedule:
 The propriety or legality of any order passed by an employer under the Standing
Orders
 The application and interpretation of Standing Order.
 Discharge or dismissal of workmen, including reinstatement of, or grant of, or relief
to, workmen wrongfully dismissed.
 Withdrawal of any customary concession or privilege
 Illegality or otherwise of a strike or lockouts; and
 All matters other than those specified in the Third Schedule.

The following matters are specified in the Third Schedule:

 Wages, including the period and mode of payment
 Compensatory and other allowances.
 Hours of work and rest intervals.
 Leave with wages and holidays.
 Bonus, profit sharing, provident fund and gratuity
 Shift working otherwise than in accordance with standing orders;
 Classification by grades.
 Rules of discipline;
 Rationalisation;
 Retrenchment of workmen and closure of establishment; and
 Any other matter that may be prescribed.

Duties of Industrial Tribunal

In case of J.K. Iron and Steel Co. Ltd. vs The Iron and Steel Mazdoor Union the
Supreme Court commenting upon the status of these tribunals observed that the
tribunals under the Act are invested with many trappings of a Court but do not have
the same status as Courts. These tribunals need not to follow the strict technicalities of
law in adjudication of industrial disputes.
Section 15 provides that "where an industrial dispute has been referred to a Labour
Court, Tribunal or National Tribunal for adjudication, it shall hold its proceedings
expeditiously and shall,] within the period specified the order referring such industrial
dispute or the further period extended under the second proviso to sub-section (2-A)
of section 10][,submit its award to the appropriate government. ].

National Industrial Tribunal

Section 7-B of ID Act, 1947 provides that "the Central Government may, by
notification in the Official Gazette, constitute one or more National Industrial
Tribunals for the adjudication of industrial disputes which, in the opinion of the
Central Government, involve questions of national importance or are of such a nature
that industrial establishments situated in more than one State are likely to be
interested in, or affected by, such disputes".
Qualification for the appointment of a Presiding Officer of the National Tribunal
Section 7-B of the ID Act, 1947 provides that the National Tribunal shall consists of
only one person, who is to be appointed by the Central Government. Provided that:
 A person shall not be qualified for appointment as a presiding officer of a National
Tribunal, unless he is, or has been a Judge of a High Court.
 The Central Government may, if it so thinks fit, appoint two persons as assessors to
advise the National Tribunal in the proceeding before it.
Disqualification
Section 7-C of the Industrial Dispute Act, 1947 prescribes disqualifications for the
presiding officer appointed to the National Industrial Tribunal. It Provides that no
person shall be appointed to or continue in the office of a Labour Court, Tribunal or
National Tribunal, if:
a. he is not an independent person; or
b. he has attained the age of sixty-five years.
Jurisdiction of National Tribunal
Section 10 (1-A) provides that:-where the Central Government is of 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."
Section 10 (2) provides that:-when the parties to the industrial dispute apply to
government to refer dispute to the National Tribunal and if the government satisfies it
shall make the reference to the Industrial Tribunal."

2)Expediency is no consideration
In the ancient times expediency is no consideration principle was never in
consideration as wealthy and influential class people harassed their workmen. They
tend them to do more work on less pay or no pay, not even necessary facilities are
provided to them like sanitary, food, clean water, etc. The conditions were so extreme
that the workmen did not even see the sunlight for days. Out of poverty, the workmen
had no choice but to work on a lesser wage. There was no law to protect the interest
and restore the fundamental rights of the workmen. After some years, when the
industries started establishing, the same condition persist with the employers and the
employees. It tends to rise in industrial disputes between the workmen and the
industrialists, employers and the employees. It made the need for a proper Act or law
to combat with the conflicts occurring in the industries. Hence, Industrial Dispute Act,
1947, was passed to fulfil the requirements which were based on socialistic law (law
for the welfare of the society). The main objective of the Industrial Disputes Act,
1947 is to ensure a peaceful settlement of the Industrial disputes through the
compulsory adjudication method as an alternative to strikes and lockouts, which are
inherent in the process of collective bargaining and to establish a machinery for the
protection of rights of the workmen and to provide them, Social Justice, by deciding
the case based on Socialistic law rather than deciding it on the basis of Contractual
Law. Compulsory adjudication may be considered as the cornerstone of the Industrial
Disputes Act. As the adjudication of disputes is to be managed at the initiative of the
government, without asking from the parties to the disputes, it is to be considered as
compulsory adjudication, also known as mandatory arbitration in some jurisdiction, as
for Australia, where the system is very popular. the main objective of the Act is to
ensure the peaceful settlement of the Industrial Disputes. Courts are concerned with
Legality and not Morality and it is the duty of the tribunals to give judgment solely
considering the facts of the circumstances and applying the provisions of the
industrial dispute act 1947 and other acts. Expediency is no consideration is the
principle on the basis of which the industrial adjudication takes place in India

3)Acceptability of Decisions
Industrial adjudication is very important as it is a wonderful way to escape the disputes
that arise in a company, in a formal yet best way possible, which is polite yet strict, so the
decisions made are binding in nature. The Labour Court has the same power as a Civil
Court. The proceeding and the judgement of the labour court cannot be challenged on the
ground that it is not properly established. Recently the Jammu & Kashmir and Ladakh
High Court observed that an order passed by Industrial Dispute Tribunal/Labour court on
disputed questions of fact cannot be challenged by way of a petition under Article 226 of
the Constitution (Bench comprised of Justice Wasim Sadiq Nargal).
According to Section 18 of the Industrial Disputes Act, 1947, the arbitration award becomes
binding once it is enforceable on those parties who refer the disputes to the Arbitrator.
 4) Natural Justice
‘Natural’ justice does not simply mean justice discovered in nature. It is a compilation
of ideas that should be naturally connected with justice, regardless of whether these
ideas are part of law. There are mainly two Principles of Natural Justice. These two
Principles are:
 ‘Nemo judex in causa sua’. No one should be made a judge in his own cause, and
the rule against bias.
 ‘Audi alteram partem’ means to hear the other party, or no one should be
condemned unheard.

Rule Against Bias or Nemo Judex In Causa Sua

“No one should be a judge in his own case” since it directs to the rule of biases. Bias
signifies an act that leads to an unfair job, whether in an unconscious or conscious
phase about a specific case or the party. Hence, this rule reinforces impartiality in a
judge impartially and ensures that the judgement delivered is solely based on the
evidence available for a case.
Nemo Judex In Causa Sua signifies rule against bias. This is the first principle of
natural justice that states no individual should be a judge in his own cause, or a
deciding power must be neutral and impartial when examining any case.
Audi Alteram Partem (Rule of Fair Hearing)
It comprises 3 Latin words, which simply means that a person can receive punishment
or conviction without having a civil and fair chance of being heard. In simple words,
this rule states that both parties must have the chance to represent their viewpoints,
and authorities should conduct a fair trial accordingly. This is a significant rule of
natural justice as it prevents authorities from subjecting any individual to punishment
without a sound and valid ground. A person should get prior notice, so he knows
about all the charges against him in advance, and prepare accordingly. This is also
called a rule of fair hearing. The constituents of fair hearing do not remain fixed. It
varies across authorities and cases.
The principle of natural justice has been followed and adopted to save public rights
against random arbitrary decisions by the administrative authority. Therefore, an
individual can easily see that the rule of natural justice includes the concept of
fairness and honesty: they stay alive and help to safeguard fair dealing.

Conclusion
Therefore, we can sum up that these guiding principles for industrial adjudication like
the natural justice, expediency is no consideration, tribunal to act in a judicial manner
and acceptability of decisions have provided just adjudication on industrial dispute
and these principles upholds the right of employee and employer in an institution. As
such principles were the basis of industrial adjudication they made labour conditions,
wonderful to a major extent and the parties in the industrial dispute has belief in the
tribunals to provide justice to them.
Reference
1. Labour and Industrial Laws by S.N. Misra (29th edition 2019)
2. Industrial Relations and Labour Laws by S C Srivastava (sixth revised edition)
3. Universals Industrial Dispute Act 1947 Bare Act (2020 edition)
4. https://blog.ipleaders.in/mechanism-settlement-disputes-industrial-dispute-act/
5. https://blog.ipleaders.in/natural-justice/
6. https://www.toppr.com/guides/legal-aptitude/labour-laws/indian-industrial-
disputes-act-1947/#Adjudication_of_Industrial_Disputes