BENCH: JUSTICE VAIDYIALINGAM, C.A; DUA, I.D.

CASE TITLE: WORKMEN OF M/S FIRESTONE TYRE AND RUBBER

CO. OF INDIA V. MANAGEMENT, AIR 1973, SC 1227 AIR 1227, 1973
SCR (3) 587

FACTS:

The Workmen of Firestone Tyre and Rubber Co. of India had a Dispute with its employer
regarding the termination of its workmen on a Domestic Enquiry finding. During the
pendency of the Dispute, the Industrial Tribunal Act had been Amended in 1971, and Section
11A conferring the powers of Appellate Authority to the Industrial Tribunal over the
Domestic Enquiry decision had been inserted.

The Tribunal decided the case in favor of the Employer, refusing to have a Retrospective
effect of Section 11A.

ISSUES

What is the proper interpretation of section 11A of the Industrial Disputes Act and whether it
has a retrospective application (whether it applies to industrial disputes pending as on 15-12-
1971)

JUDGEMENT

The right to decide on the severity of punishment or to conduct disciplinary action, according
to the court, are management powers. If a case is referred to the tribunal, the tribunal has the
authority to investigate and, if necessary, interfere in the acts of the employer. The only
prerequisites are that it be done in good faith, that there is labour victimisation, and that
natural justice is violated. As a result, under Section 11A of the Industrial Tribunal Act, if an
investigation has not been conducted or if the investigation is unjust, the court or tribunal has
the authority to intervene in the employer's actions. The court also stated that if wrongdoing’s
shown, the employer's punishment cannot be overturned by the tribunal or the court unless it
is exceedingly severe. It also noted that the tribunal has jurisdiction to hear evidence from an
investigation only if no investigation has been conducted or if the employer's explanations for
action are deemed to be flawed. As a result, the court clarified the interpretation of
Section 11A as well as the section's purpose. It stated that the section’s goal was not to
meddle in an employer-employee relationship, but to guarantee that an employer's activities
were not biased or unjust. "The clause has the impact of modifying the law by abridging the
rights of the employer as far as it gives the Tribunal jurisdiction for the first time to differ
both on an employer's finding of misconduct and the punishment imposed by him," it added.
Furthermore, it was determined that Section 11A only applies to issues that happened after
the section went into effect, i.e., after December 15, 1971, because the proviso states, "in any
procedure under the section." A proceeding under a section can only take place once the
section has been implemented, according to the court. As a result, the appeal was dismissed.