Digitally signed

by Arnav Vyas
Date: 2021.01.15
23:35:31 +05'30'

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Dr.. ASHOK K. JA.llt�

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Asce·nt. Publ·lc-at1on.s
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U!Jbout Laws o :1ndl{fl 2

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Labour. Law • I
PenallieJ 31'\0 Prote<fl.lre 51
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,Aegl t le.rod v Recog,'lised Trocte Union $.2 M8cNcal/Sa(e$ R•pt'flS8f'll81}11&$ 1-44
P resen t Scenario of Tt.,ds Union Movqme,nt ill tndl:a 65 A Tuchor 151 E
Report of (he Nation61 Commi&&io,l on Lobow- (2002) 57 Persons Held lC> ti. WOf"kmen 153
Person& H•ld Not to be W01tmen 165
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Difference between W¢rk.n'.an and lndep,e~nt Controldor 1$1 .<::::
£)Cl() Comrol Md $uperv1$1M 1l.$1 169 ;::
ttnmunltlcs to the T~ dc Uolon$ 64 PredomlrtanJ Nafvn, o f Duty Test 172 ,::,
•Immunity from Civil lia,bi1ity 65 kt~tion ~st 17◄ (I)
No 1o$J Uniwµully Appllcabl• 175 C
!nimunHy from Crimlnaf liabTIIY, 72 C

CHAPTER 5, T Ht: JNDUSTA:IAt. DISPUTES A CT, 1 947:

CJ.w»TER 7. DeFINmoN orINDUSTRW. DISPUTE "'
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DeFINl'nOH OF INDUSTRY• Sec.2(k) 1n
&,bfect Matter of Industrial Oi$?UI• 180
' llldU&U'ial ~lesAct 1947 85 Ol$/)Ul8 IBfltina lo worlcmen •mplo~d by the ~ r 18'
Objects of the Act 86 , Di$(JU(e Mvst be RH/ .,-.d r:>.RIM·i. 183
Oeflnltion of lfldustry 87,127 Community of lnterett: Estt ntlel for lnduatrlal Dispute 18'
&ngo/om W;,ter- Suppfy Co.,;g 90 tiidMduel Di spu4o v Incl.II-trial Olapule 107
Co1porauona and Munfcipal Under1aklngs f04 see-. 2A 199 •
Chili$ f07 sec. 2A <•& amerKJt1<l1n ~1oJ 200
Re,earc:h lns1itutes 108
Othor AalvWe$ HO CHAl'Tl!R 8. SlRl<U AND Loc:Kouis
Gov-ernment ~P1't1ments 113
Ca5-9 Law:- Re•ex;iminatlon o f 8&ngalore W;iter S~ppfY Ca,e D•finition of Stt1ke ~
116
.Amended D~&"lition of !ndu&lfy 124 Strike: A Patt of Barg&nng Proc:.N 201
rs H o$pital an lnCIU$try? 128 l'Gid• of Strike 208
i, l egaJ Firm ,1n Industry? f30 PtohlbitiOn of Strikes 212
EducatiOnal l n$litutiont - Whelher an Industry 133 Genwel Prohibition of Strb• 21 f
Rtgtrt to Sbike end Eueotal S.rvto.a MabMn•nca Aot 108 t
CHAPTER 6. O l!t:1Nm0K'OF" W ORl(AIAN Lock-Out 224
Sec. 2U) 22◄
~c. 2($) 131 Prohibition Of Lode-out$ '226
Sl31u1ory Meaning of Workman 138 Lodtout v Cloe.n 22B
Specific ExampJos. 14 2
ll'81j1al Sttike& 230 · .
Devclopmem Officer 1,2
Justmability of• t.AgoVl/1~ Strike 230
Securily Inspector- 143
Aecountonts 143 t.sgal $Mk& may"~ or UfljllStifffld 23◄
ASS,jsJan1 Ena/nHl'IModical omcw 143 Illegal #ii<• ~onnot be )¥$ltlle<:t'? 234
Consequences of l lit911I &rik• 235
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Af'dtnt 144
As.stsr.ant S11eretsry of Tmde Union wages 235 •
Disrnipi,/ o/WOl1anfN). 2◄ 1

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CHAPTSO' 9.1.Av-OFF RETRE'4CHMEH< AHO Ct.osURI! ..... €)

TABL.E ~F:!::~ si:s
.
l ay-Off 245
Sec. 2(kl<k) 245
i:~oqvlsites for laylno-off aworkn.ianlla)'•Off compe.n.sa11on 2a}2ss . : • •
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. . ~ 61 ··:•r~ ........
(a) ESJMJ6'shmtut:$ o,xemptod fr,om poying
Jay-oH COtrl(NJtUaCion 2-tS .
{I>) Right Of'h'O(f(men for lay-off compen38!i0t) 248
A,C,C. Aajanlc.a 6.imo Ston• QJ.ardes
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~,. Eectric S1i1pply Co, L1d, vAIJddln )08· .....
(e) Empk,~n duty to mt:tITTMJn M<l$ltN Rolls of woi1<mett 252
(d) Wonrmen nOl en!Hfe<J to compon,otion in caftaln cmes 252 '
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AQrlWI\U- Produot Mark.et Commirlcte v KS. Nll\'iNl)pa 115
(9) Effect of laws inconsts!Mt with Chttptor VA 25'4
Spee11.1 Provi&ions relating to Laj-ofl' In certain AQ1lo.ib.ind Pr«lwe& MM. 00/Mliltff\,A&h~,,..tl••!kunl 106
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Establishments (Chapter VB] 255 ,.
AAm•d•l>Ad Tmle•1nd1.1&W'•· Res•.a.rc~Associa~lon· v State of i=so,tnbay t oe'.!109
ProNb.'Uon OfL.1)'-off (S•c: 25-M) 2M ' ~~ . ,t._
Peb"enehm•nt 266,294 Mm•d•~ Textile'Resnrd'I As.soda.lion v,ATRA Employt'es' u n.lch"'~7
Dellnltfcn 266 I
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INu8118tlons / Ca.se-Law 268 • 1· All lnd:bl Bank EmplD)'MS' Mien. v H11ic>n.erlM\l!t1!1! T•lb\.lnt.l 19 .,,- •
Conditions Precedent to ~etrenet\n\e,n 2613 ll ' •;f: ,,
All-lnd:11 R.OIO-iS.anto~ Ku~ar 11, ;;.., ;, _ ',.
CcnScqU~nco:,,of lnvalJd ~etrencivnent 272 ,
Comper11,ot!ot1 !ft.,._ Qf T.-..,~•r/C!~ of Undettetldng,•· 2 73 , /1111 1na:lll: fUl'llerv• O•f1A cm;ptoyee,· .AMV!, v ft•••IV• Ollll'k <1t ft1d~?OI
Proeoduro for Retrenchment 278 ' . ',!,\.. ..~ -- '
Re-employment of R~retientd Wori(man 218 ' Anand 8aHt Pattlk:.e Pvt 't.td. v WOfll.men 139 -.1.• ~-r. .
Special PrOYltloM relating to R&1renehment in Certein
Anand A.Qlonal~ Ol ~ U r i o n Ltd. ~Aha~ H d ~ ~ ,7,-l
Establbhmen1, (Chapter VB} 278 . , • ' • • ',1',:,;• "I. I 'r'-<
CorrdiOOrt$ Prtct1dont to, R'1t18nchment (Sec: 25-NJ 279 .. · /I.HZ Gtiniflayt Bank ,i S.H. IShatrl 241 •• '", ct_ -:c~~
Clos.ure 2 8 1 ·.· ,.;.~;;., -r.-,'.~.J
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Ml.8100~4 Raj Rao'V Ciba Golgyof India t•~~t;;,
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Sixty days' Notice lo I>& glvtM Ofintfhtion to
(/) Close down LJndeffltkfrig 28 1
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A/1,.ln Ki.unar Matru.ir-v Lo.&our Coutl 2$3
~ Compsnsatton to Wott<me,i In CI0$1hg Ck>wn of Undr11taldngs 282 •
:, Procedure for Clo.t~g Dovm M Und«t<lking 284 AMnd .C:uit,a, v Oep~ Cir., R•Jya Kr1~h1i;~dan. Miandl Petlsl'l.:I e
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Lay-off v Lo~-out v CJosure· 292 . '
C. Reltendvnent v Loek-out v t..a}'-off 293 A.sllaR.arnvDi'V. En,Ht'(- Tef~com[)es)t 11~ ;
Crnie:al COf"IVl'len~ on Rek'enchment pr011lalons In Indian tAw
~ MiltiQ Gocl•IY V SCa•1
;0I W ,B. 109 • 1,l
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:::T CHAPTER 10, INDUSTRIAL EMPLYOM!HT •Asaocla,ed ce.,,e,11 Ci Ltd. v T~t woi,;~ el\ ~ -
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Q) ·, (STAN01N00ROERS) A CT.1 946 Av.('! tnctla w . v soi;ona ,nic11.1,u1• Trlbun.i, w.e. 3M
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Labo u r Law • I Labou r Law • l ,, C
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8.A., SINGH v UNION OF IHOfA :zo,n ,223 Bomb.sy Union of Jour!\116.US v Sta,e oC 8omti•y 270
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8adrapw Pewtr Ef\f;ineou Ann. v Oepllly C:hler Labour Commr. 315- &oMba)' Un loft Of Journalises v Tkt- Milld11 1~
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BONGAIGAON REFINERY& PEffiOOHEM!CA~ 1..TO, v SAMIJVOQCNAHMAO 190
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8alla,pu1 COlll;erlu Co. v Salltn H. Mercl\;U'll 216 8.-.M'IO Sarne! Ed11catJon Soi::i.1:, v W, 8 , ~ g• E:mploye. . Asaoolatlon 134
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8ANGALOR:E WI\TER SUPPLY & SE\VEAAOe 80ARO vA R/1.JAPPA ttr•.ncl'.I Mana,;,or, ~ ton 1nol1 Ltd. v Staie of Ma'ri•rnhtn 179 'O
t19,90,92. 10-3-136,204 (I)
lud9e Mvnicip1lily v P.R. Mllkh,el(!•• 1t4 C
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8 i fll< of India Emp1~$· A$,ociali0n v R•Mrw Banlt of ln(Si;,, 12

Burm• She~ Oil S'tortge & CX.trlbl.ltlng Co., ll'ldll V Mangt, Statt ,..,en.
1 39. 14!,1-17.140
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Bank« India vT, S . Kolewal• 229,23! . Si.

C, Oupl:a v Glaxo--Smllhlr.fine PharmfCOutlCM Ltd. 142
sa,auhl Ro!\~e,'" P.S .P. Vindien Oil Corpn. l.10. 314
C.P. Tra'l-.,ort Servieu' Lid v P.•~~h• 11 181
8.a,o¢e Bon:iugll Mun!¢41,111ity vWorkmen 1&4
CP.W.D. y MtdhlJkar Pur,hottem Kol!'lllt(a, :ze.s
eeettlam v Trl~ad Ceme.M Lid, 184
C.d'ler Cti•h Shramik Unli>n, SJ!ehw, A. ...-n v •nf0,1,-nt ttf T. . W • Of
Bthat Jou:m,11, v M Has,1n 312 C.cf\W 247

Benne.I~. C~leman & Co. v P. P.-Oas Gi:pta 1 $4 Ceilll'lput Ta11,,.,y \.111. v 6 , O.il\a 1$4

Bll..,.,we rh!II v Raj . STRC 27G c uggan Lal V P8nchay11 Samlit Ml

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Bna,at Bhaw1n Trust v 8 1\•.tat 81\a-n Alllttt' Ast on. 11s.1,1 CHAIRMAN, SBlvAl.l.ORJSSAST.t.TE BANK OFFICERS'ASSCN. 6S

Bhaa t San<:nar Nfg:sm Ud. v fndustrial Trlt,,un&l 179 Cl'lal'lctrakant Tukettm Niketn v M u ~I c«pn, ~Allmt<lal>a<I 195

Bl\.an,1 Super ~ ~Is ltd. v Jal $1~.h 200 ¢ HANOIU.MALAJ ES1'ATE.v IT$ WC)Rj(MEN 231

Bfl.<SRTC v St.Ile or Bihar1" Ctletm!Cllk & Fib<el M tnd!a Lid. VD .G. 8 1\0i' 217

Chemo,yn «~ Ltd. v Kel'Ma Mlldlcal & S&IH R.tprM,nte11,,.. AHOI. ~o

8 1td!Ctl81'C V Firil Cw1I .AloOe 1$3 Clllef Connrv.ior of Foro5tl v !119&M l1h M•n.iti Kondll1re 11 $

B.okaj,u, ewne'nt Corporation C!n,ptoyc.,a• Union v cement q:Cllll():ratlOtl Of ln~ia 37 Chftltarn•rr Raov SUte ~ M,P. 14»

eomt,,•y Flnil'iphJOI'$ Servioos \Jnioft v Re;ilnr •S: l Clwrakut.m Tu Es.~v Workm4tn 216,235
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80t'llblly T•~pi.one Cflnl. .n ~plo)'Na'Auoolatlon Prabllpdc,v1Telet:,hone Clbe Qeigy Ce.. 149
E~a~ v Uhion of India 113.,139 '
COIA 80AADER.l-w<.ULAM, COCHINvlHDIAAD~ 111, 119

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•' ·eon1,ry MUOCOf Congm, v Be!Nbhwn Coal Co,:ZH
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Labour [..:,w • I

,, Charam Dutt v UOl 15,17~

L:tibour · L:tiw ·- t
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C °'11ns v M• rttl)tda,~
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C::~ 1M?N ~ I ! v UNION OF INOIA 79
County Covl'ICil {e 1

Co;,m1it1i$t Patty of India iM) v Bflerat Kum•r 19

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C0n1,um,r Unity & TNtt $ocl!'ly, CIJl:u:ur v Ctialrm•n & Mana9!f't!I Oireecot, Ban~ of
• Oero:10 e1 , ',
Co!"°ey V Vla,ao 73

> Cp:op, Cr. 13.tnk v lnd~t11al Ttllxlnal, H)'dorab~ 3 12

Coromen~I ~ n t F1e1ory Empfoyees' Unlcfon v 0.f)uty Ro9!!1troror Tr•de Un~r.s

& Oeputycommr'. of I.about, K.t.imool 43 , , 0
' ' 87, 100, 10• , t oM ce, t 3S
Cq,'porauon ct tM c ~ <>f NtiODut v Its E.mploytie•
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-i ~ cflt•l C1'.1~ (ff~ ln ctla Ud, v BOf'l'lbay Latour .Union
' f, Crofte, N,._,MJ•-•n, "''"'' 1...,..a co. v velfn ei
. 107 . ' •
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F•d.,.t~ Munlctpa l & Shire Empioye-H lhli~
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G.ruve. Lid. v Its WOf'Qnel\ 2'1~!1 . • Ii- - ·•·
Q..B, PNIT UNIV. OF A~T\IR.I! &ffacNOLOGY, PANTNA~Kt.J(q'T'AC:v, • •
STATS OF U,P, te7.
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-0·.c.,.,.v Sllembhu H-il!lh 259 ' .
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G.M, Kary~, Roadvqys v Rudhan Singh 268
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G.T.R.T.C.S. & Officers' Mten_ Bflngalore v Att.t UbOur ~&'O.puty

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O.~: Ba.ruujlvL.R·. Mukho-...oe 89 104.1&0 ; R091'trar d Tr.de Un4ons, lh n ; ~ Oiv, 125
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D~aketanyar ro,lect, Koreput v w~M 116 0.netel I.Elbo4.lt' U""" v 8 .V. Oulvan·m_uf
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:, , O•ttl:11$1• Gopat P , ranJape v RUhtlfyl Mill Matdoor Sa ngh U2. ""· 1S2 Genett1I Mant;g•r. Ti•oom v A, $rlntvat.:t iG.o 11~. 13fi
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C. • O&ltw HindU&ttnl Mercantl!. A..ociatio11 VOe!hlAdt!Wlf~ra~ -51
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4-01'9' Hudson l td. >.- Aus.tral'an Tll'flbK Worht$' Union, 18.&
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;:;: . ., Pelto. Non-Gaze-:t:ed Kl-rmc~ S81'\gh v Union of tndla 17 · GllNl•bad Englnoer!Co. v Certlfyl,-g, Otfiott Sj7
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•Oelhl Prillltittf & Publluilng Co. Uj'. vt.at,o,ur Court. Vtfth 264
~,, Ota1«1 lndus~ries (P) Ld. v' t..abo~ Court Me«\it 3 12
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~C•bN case 149
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Gujarat Steel Tubes }' G.S.T. ·Maidoof Stitlt\?7.2:30,20

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On ,a.J v Stm of Punjab 11$,12$
,. ,.. Q:,mktiana C lub emJ1oree•· union v ~ani~ t 10$

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one.n.raJglri 1-tOtpltal vwontmOn 130
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ij <nditn t,on & Steel Co. U4. v wortcmen 1$4

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H .K. M~kwa11\) v ~1. Of G ujiH,ll 11, (/)

H.M T Ucf. v H.M, T K,cu:ut Offi«. Ell'll).~

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es· A$a~. 227,24
tntllan Qlf)'Qln U C. V l h&lrWOrll.mett so . "'
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l'I R. AOYANTHA.YAvSANOOZ( I NOIA) L TD. 144,f4$ ~
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H S. Chauhan v uC 1 ◄ 2 ;::
lndu.lrl&I Etnpl<>yees.'Unian, Kanpur v J .t(. $1)innh'lg & WUYU'\Q WI• CO. 253
NAL ErnJ)!oyeN' U11ion v Pt~~ioino Officer 241 'O
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f-Jl 11v man Pr~:.ad v R.S.E. &~rti t :SO J .tt.. JAOMA.V v FOA9ESGOl<AK t.Tt>. :ZQ1 C
J.k . Cotton $pg. &. Wvg. Mills ~ o: t,MS. v I.a bout ,1,peiella19 Tllbunal Cf l:idia til3 "'
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Harip,no.a Sl'liv S!l1nkerv A. O. Oiwelt,11r 259.296 J.K. Couon Spg. & Wvv•Mi~ V Badtl Mall , ~

Mat,$h U~oal vu~ 11.20 J.T. SC11tr0rd & Son ltd➔ v llndloy 1.U

Ho11rshJit Th:1)1;($1,v U OI 110,2$9 JtQ"tClamba Motors v Sla~ of W.8 ., 203

1-tnry.an& Stl):to F.c.c.w. t.td. v Pfo&tll"" CW'ioer, hl\1&11'81 Tribunt:1. fi45ar U:. Jagdlpll Pr&s.C, Sinha v ~ffling Officer, ~O'-" Co-.lrt. L\ICS:now 15)

Hil)'a~ Urt:.n p,ev, Avtnorfty., o,,, P.ll 2$2 J•IPIJt M ilk Suc,pty Sd'letnfl v l.llit)our Court 1M

Hary.al"!a W oollen Dov. CO,pn. C,l,W n• J~r1m Sonu v NflW l nclla ftay(IOMIII• co. 250

Ho.1)9 Texll!cs Lid. v State of t,t P, 247 Jami11c!Q0,1 Conl91)' Cf Tit& ~n & StM l Co••v Wo,lc,tnen. 170

H-co-ol{al M:oi:doo, Setiha caae 84, 89. 103, 130 Jay ftlginee,rng workS Ud. v s·1a1:e ot Wt•I eengal 74

How,a.h r,\l,lnleioa~ 11 Manu o,, Dev 1 S◄

1-!usHin Mitnu .l.f.llos,.,·ao.k1,r v S omea y I ron & Stael t.:i!:c:ivr. Bo;ttd ui 113 Jordon & H,rrtson t.ld. V Mo:IOnl~ & 'EV81'1$ 1$1
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HU$S.AIN8t.w~ AI.ATH:FACTORYTWOZH ttLALI I.IJ.IION t6S ll
K. ~jencl.ran v Thtt Olr.ctor, Project & liqpt. Corpn. ot 'lndla t.td., 257
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Ir. Co: nm1aa1:>nor, W.B. v Indian Sugar Mills At-sen. 3e K.K. Thilakan Y FACTl..td . 182

I FFCO. Ptu.,1jpu-r K.1 ,macharf 5angn v Reglsu~r of T,aoe Urion, ~8 K.T. Roting ><'11tJ$ VM. R. "1el\ef 250

tN Re INOIAN STEAM NAVIGATION W ORKERS UN.ION 40 K.irbotta Estate v R.aji,m1r.1ek•m 224.2is.292

rncti1 G.onar•J N i ...19-.tion & Raitw• y Co. Ltd. v Tl'leir w ~ 226, Z,4,24t K.alln!Jll 1'ubes Ud , v ltlt!rWcn«n•n 281

!NOIAN 8ANKSASSCN. v '.VORIWEN OF SYNtxCATE BANK 1$4.159 Kam•1l<i$llort l.akthm.an v The M4.n.apement o t fN, Pan AM~n Watld AIIWl')'I 2&1
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xiv Labour La,.., • I Labour·. LaW.,. I

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1 •~ 11i'l;a.mv lndlsn Metal &Met6,v1~1Corpt1. 210 Ma,."la.geme-.11(, Kam81~ka S.R,T.C. V'ShelkAtdtil Khader 282

~•~~•11 Kumarv Pro.slelng OMNt, tn®sJrlat rilbf.lnt;j.2e1

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611na;cment, Sacred Heart Con,,..m Sd'loof'II Stal9 ofT.H. 163
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I, Mtn~r. ~hti Panetiasara J~l~ Dcr.,Sar v t,1a~,'1'1lh ~ ha 0$,ll~t e,.a l~ 111,

Man~rno Di'. v eet>i&ahlb c:e,,gonda ~tll•2 5&'.

' ' • • 91, .•
lAANGA.I.OA.! GANESH BEEDf 1NORKERS v UfOON OF" INOIA 164 ·
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' Board V Dlnestt K wnn AgaJWaJ 283 Moh ...,
• CNO 26
o,,........... e ,uc, t!!,,...,.i••·· Vto!QO v •G1"!111'1•P.• • ..,
M:e, EJectrlcity ~~ '
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MOlltn U I ~ Tbe Ma.nage-mel\t ot !hvat !!,.ct~C9 Led, 2e,1,202,212:2ea
.; !'-}1a ~ r111I Sh•rp lndl1 LtcJ,, V l.abO\lr Court, 0..nllOt 262 ' ·-• ~

Mot:inda Co-op, Su;•r'~m Ud: v Rt.m Kltll.an-iat ,,,..

l,V$0Ai$~
... ,. . TEXTILE ANO STEEL LTD. vstAl'E
. OFORISSA 285 : -~
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M/s U.P. Slf11 SugarCOfJln, ~ v°'Pf,lty La.tlow-Conwnr. 1,43 i IMS. P, Sol'M $Unc!eriirn V UboUr court ,w '
• i . ,;~~ ....
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Madrla C)ymktl,11\t Clu b ~ 107
Mukand Iron & Sl•.. Wo..• Ltd,, Regf6ttar 44 •'
Mubnd Ltd. v Midtand ~ 811 & omcett· Ass~ 191' ~·
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rJalte$r\,8hlfV~• v St1~• ot M. P. 112
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t.l\.M$11 K. Trlpathl\l s ~ l)MtiOl'la1 Man.age-r, UC l~O
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Mllkund Ram v $ .l . Raufi ~ ittrtr <1() • • • t,
t.tani9em1ntofM.C.O. v P,-m Chanel Guoco 264
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MUNICIP'At CORPN, OF QB.HIv FEl.\>\LE lft'?R.KERS (MUSTER ROL4.,tbs,1t1 ·
;:;: Mt.n·~•nt 'Of 01si1 School, Hydbd, v UbOur COi.rn 211 t ..., ,. •
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MuniCiP"I COfl)II. v Lobo t ~P,•lhue Trlbun.;il _2.e:1.
M■n•a.~t '1f Radio F"ound•ti<ln Engg. v Shit.• QI Blih•r 1a1
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MJll\191fflll'lt of S.ltlaqllllg ~pit.II v l;(uldlp Slngll ~a-. 103, 109, 123.1 .29-131 ,Aun6clpal CounciJ. samrJ1a v Raj Kumar 265 • •, ~· •
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Man..oe}n.,;1 otth;f,cct vwor1:m•n ,,o
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:, Minfi:Qett..ent, e isia Stone Lil'ne Co. v Thtlrwoooneb 251
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I P"rai<:h 81,1gar Mm•
Lab.o·u r Law - I
L1CI, v Tl\>lfr wo111,,,_n 210.296
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N.E . R~ilway e:mplO')'ffs• UnlOI\, Go1al«lpur VO.put)' Latifur CO.nm, . 39 (/)

N .K. sen 11 !,,olt101.11 Apµcll.ite Ttieun;,t 16$, 187 ! PAAMOO JMAvSTATC. OF 8lHN(210 E
N ,U,C Em~ioyc,os, v lt1d"'•tt1al Tnb1,1,-..J('S otiei!ot'$ Case-) t o3
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Putlja b CO-.Operat!Ve 88,nk LtCI. V R.5. BUCII 1'43
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Naliono111ron & Ste•I Co, Lid. v St:it't()fV\£8. 182
P11~•1> Nat Bank v Glubm Da~ ir t!G ~
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National Smt:r l,icll/$lit.; ¢.«pn. Ud . vV. L-.,.,hmin1r•y111t1,11~ , ,o
Pur;ab Na.tional O.nk. v Tl!e ir W'°"'-mtn 209,242:
Ni!(IOJ'lal Uni cm otComm~dllt Empl(fye,u v MR, M~her 1~

New o,x,, Au1,111u100 Co, lid. v~ S•nk•rali~rn 138,26& . II

R. Sreenivau Rao v Labour Cou.rt. Myowabad 110,260

Nb:am S uoa r faecory ltd. v Work/l'lel'I 23i

A,8 I. vA.aftll KuWJl'.I G5
NON-GA2:eTrE0 GOVf, OFACER'S UNION v REOIS'm.AR OF TRA.0£ tJNlONS 29.eo
R.M, 'fellri v As.stt: Exoeutlw Er'!Qin~•' 2i2

FUt Si.nlilh v Sm• or Bihu 39

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O .K. GllcshvFJ(. Joseph 1$
RS.RUIKAR \'EMP£ROR 7-4,7$
O. N.GC. wor,,:mel'l'$As;,oc1a1ion v S!,1;1e orw. o . 31)
~Ohey sn,yam Stlatma v Po~m•star Gc~eraJ Cal\tral c 1rc1e. N•gp,u, 18, 222
Om Oil 8, 0 11u•M li.x.c:fl~ngu Ll:c:1, v 'Th CW W o;lul\en 2!7
~m Sin<ih v Union Tetfiory: CJu11ndllil;ath 114
04-nU) 'rcxll!e Milts v Loll)our Couit i43
Rime.th Slo R11m&rao w,.. v The Commr., Revenve Div. 143.

f RAMNAGAR CANE ,s. svOARco.... JATINCHAKAAVORTY 21:z .z1a

P. , ,11.1kuN:1.tl'\. v ,i0ot1an K11.ndy P.iv!ttmllo &7

Pa1mam1no Y NtQllt P.illka, Oehta D..-, 10& AANGASWAMI v REGISTRAR

, 01 TAADl!l..'NION 21,$)
P•1(y & Co, 1.1~. v P.C. P.;i! 25.s Ran;• fo,e.-11 Officer v S.T. Madlmeni 2$C

Aasllrriya MLlkund Etnp)OyHs' Union v Mvkund Iron & S1eel Wotk.lUd. 441

PHYSfCAl Rf::SEARCM LABORATl"IRYvK.G. SMAAMA 119 R.u:.n K\lfflOI Dey V Uoion of lndl• .-a

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Labou r ~a,,w. - L 0

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REGlSTRAAOFiRAOEl,lt.fONSvGOVERNVE~M.t!SSEWLOYEESUHIIOlt.
PCNOICNl!ARY 32 II'- S~rt v J .W. Kender~on Ltd. ,d&, 161
' Ri,0-ittr.:it·d Traot Ulli-On,. w .e . v Mitllr I(...,..,.,·Guha-31,4'5 I

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Sllta,tnic Utllt'Ufl S•btt8 v R.a)'ITll)nd Wolle" Mills'52 . . -.
. SH!:U RAMC!'!AN0~$PIHNJN0 "~LSV STtiTE ' l ~RAS.206,226 I0

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~ Roh.tak a..,d Hltur Oistri<t! S11pplfCo. Ltd. v Sl1t• Of U,P, 314
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S~m Si.,~or Aoui v Or1au S.R.f.C, 268 -,
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ROHTAS INt>U'STR!ES STAF'F UNJ0N v STATE OF SIHAR 67 Sit¥er JoJbilee Ta!!otlng Hotsso v 0110, f n s ~ o4 Shop$ arid e,tab1i,1Jm•11tt ;10
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Slmf;i,on &, Gt<MIP Co. \'/()ft(e-n' UnlQft v AmcQ Battetit:S Ui. 67
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Som _Vlhar Ap•~~t Ow!"tt'rS' H<1u,1ng ,~ ti'90•~ -;:ioctecy I.ICI. v 1wp~f!tl 112
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Sahu co. 139, 158, 17~

'SJ<. Verln• v ,.hffh cti~nlfra uo.i.21•~

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F,' SO:mu t<umiar ChattOJjoe 01,trlct Stinsr11 !'! "7- c~
;$,M. MllAJKARv TELECOMOtsn. MANA.GER: KAANATAKA2SS.21$$
·Sonep,a~CfXIIP, $ugat Mills 1.-,i;v~-SY'!gh 1 ◄,-. 153·;.
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Sol'f'OII v " '>' 69 , ,:... ,.~
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SO!ifld'•t•n v Sec.,.G<>i"- off~ ia, Mi"i."tf¥_f!.t.,aco~r 113 ~~
S.S . Light f\ellway Co. Ltd, v S . S . Railway Worl!ef'$ UMon 313, ~17
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S&f<l•i'JWIQ Kot,pfttl v K.S. Solhl 11i , .
~ S'l'MIDAROdHARTEREpBANKvCHART'EAED"SAl"t( EMPLOYERS'UNCON"7e
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S.liltya Mtnd'r Pro... v Sttlt Of U.P. !2
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S,nkor ba1-, ., St'-1e of Mlharu.i\trt 180
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&.:and1td~um O il Co.
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Gt11'.'U•~m M.~ 207

St;tnd,rd V.c::11um Re-fil'I~ Co. v Their Wor~ t 8 I

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s.-. aw.. Suger W,O,!k, (P) Lld. VS-hobraU Khan 2()g

Stl1e of 80ff'lb8')' v Kos~I Mudocx Sablla 301»-J:, t2~
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C. ~ OfGti,jarat v Pl'atam ~gh N. P8tmat 1-16 .. ~ ...
~ Sen!or Supelfflteru::le-.nt l"•ltQraoh tTrafflc-), 811,opa1 v Santo,1t ~wnu 2~9
;:;: SW. Of M8dtll& v V.G. Rr H
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:::,- s ·h11mbn.u Nt!h v Dank of B.aroci• 118
() ' . s1,i. of P\ll"fllb v Kuld!p 'r-.gh 11-4
' S.ttan!t9r P,.uad 'nw1rl v Si.to ot U,P, 2ei
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S'hlbu Metal WOtkS v Workmtn 182 ' SUlte of R.ajuthan v Gan,e111hi L-1 118

State of FtaJastlwln v ,Ram• shwar Lal Gahlo~ ~

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Q) '. Sl\wltfll) 1:'•llors v lndlJtftbl Tribunal 167 . ~ t
:, S1at:e ofu.P. v lndustrllll Tribunal CV, AIJia 115
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STA'rEOF. U.P. vJAJBI..RSINQl-i 121
Theyyam J O$eph C•te 1t3
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v S. $ r,,,11ingam t G6
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St:ioUt ot \,l, P v N~ j Aw.JGthil 269
Tilirui>,tttur c o-op.,-.tNt> 6'i9•r 1.1,115 Lid.

TIRUMA.LA TIRUPATI OE'-"'SlliANAM v COMMR. OF V.BOUR »

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TI S.CO Lid, v Wotkmon 207 ;::
l! U.P. Cflalehl,- NIOtlR'I Ud, V ~ ot U,P. 2$9

U.P. e1.cu1c S11pplyCO, I..ICI, V WQtltmf n 171,J OO

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Surcncler·K~ar Sh1ffl'la v VlkM Acl'likarl 2S5 l U,P. R ajya S.!u N%J.am S.al'f)'Ukt Kattn1ol'Ulrl ~ • ngh v U .P. Stat.a Bridge Cotp0r1tlon.
L-.itAll'IOW 8 7
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Surendr:.mag.1, Olttrict Panchaya i v OOht&bllal Am.ar$1ngl'l 269 tJ.P. STATE SAASS'WAA.E CORPN, I.TO. v UOAV NAAA~ PANOEY 274
Suremtrt Kum~ ¼trM v C~ll'ltfll Gov1t.mment •~•1rial Tfhin.ol 268 ' Umesl'I $ axen• v Labour C ourt 2.n
Si.CHUI q.an(I,. Mathe v Jlw ol}I V~&lly, G....-a11o r 1~ 154 Ut'IIOl'I Of IIM:lit V K.V, 8 aoy_1 72
S\lfeshKumatv UO l 110
u ., 1ver• ty or Delhi v Ran, ~ •n 97, 100,10l, 133, 134
UP'fRON JNC)iA I.TO,v $HAUfAI 8HAN 2$9.306.31 2

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V,N. N. Sinha v e lttar Joum• •• L.ld, t55
SYNDICATE BANK v K. VMESH NAYAK 22$1.236,24A
V-6 Pr~ Mh G1o1i,tll v Mi. Oettpl'I CebtN ~ clia ('P) Ltd, 10
T.K. RANGAAAJA.N v STATE OF T.N. ,17, 18,,222
1
V4'1y K1,1mar MU!t V t.abo\lf CCMlrt 260
T.N,E.B. EIIIJl!t'rill!ers· San;amvTanu H~dll £ 1ectrleity Board 53
v,hh.i $.;a.r &mrs ua.. V St•i. Of Sltlar 151
T P Srtvan v111 W $ N G!. T~ceo Co. Ltd, 145
'ti.
W ost tndla Stee l C o. ltd. vAuu 7 4'
Tamil Nadv- Govt, Ptt<St Worl\er, · ~n9o1m v F4~i T(.ade Un'lon Actdl. Re,gistrar 4)

; •111 E le-etrio COll'll),lfllt,11 Offioc,., Gllifd v ~gl$l t~r.of Trecte Vnl_ons 4.3 W es.tern t~l• AutomOCue Au oeiatlon v 1nc,u.11t1al Tnbunat 180

W e-stern lttdW Ctno EmplO)'oes v Filrna~ya Pvt. Ud. 74

Tata WOiters union v Sme of Jrio11'11'11t1C1 39

T3tar.agar Found,y Co. v Their Wo(.vnen 2,9 Wffterl'I ll'odi8 Matcll Co. Ltd. v W eatern k'l<II• Match Co. Workers· Uniol'I
1S4,19&,312
Tl11! e ombay Penj11po10 v i hl! Workmen 1.11
W!MCO C8~ 14$
T ne Raf-as than 5'ate ~ d Tt$M,port Co~orallo., V'Ktiahna Ka nt 31A
Wortuno. Jo1o1m•lie.t& of Hinch,1, Madn1 v 'fh9 HlnOu, Jr/-klt$1 ,a.,·
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·worltm•l\, Jot&~&ul TU Co, lt.d. VT"9.l.1~Qttnttit 01 j°"9Mul T. . Co, 277 .\~ . ©
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\,\/orkmen of Da~ln;op.i~ Tea Estal• v Oal\lngoapara Tea Esta-ta t8~ 1- REFERENCES
1;\l'Q;\KMEN OF Olt.W<.\.JCH.I TEI,, ESTATE v OIMAl:(UCHI TEAESTATE ae.1es:191,2J
• ol I
· l , Lab<>W' Law in lndia: G.B. Pal. .
.rf~orkffl'9n ot Hitlct1.1eltn I.~" L.ld, v Hftlch.1•i.n L•wr Ud. 181
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-Workrn G; l.ndlan 81M v M.negom.nt or lndlN'f Bulft 1~

\'\l'o,-.me n of ll!dl :;n Expniu No>NS~pors Lid. v Monag.inent of •,~en E)q:,rou • Q

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·Workmen ·of Kamp!I Co.op, Si,g.ar Facto,yUd. v ~a;,-ment ot Kllmpll Co-op. J. K .O. . Sn~~~va•$. L;,w Rc~ ~ lj).! Tade Uni OM'~ Un~ - Trad: • 0
·~ "f. !llgar Faetoty UIS. 63 .: Pr-acttces 1rr U'ldla; P.L. Md!,'¾- ,,._ tl, ~'. • _ ,i

\<\!Ot!<men ot Ml-1. B•!kul\tba Nath Otb•elt!al'I Tru,tt. Y ~ orW,B. t 1t

,.'i ~'!- ri~ - ~
4. Labo,ur Law &. J.,al>our Relation$} • CaU:$ aod. M'11.1erbjs!" s.C. ,
l ~r;,rt(,rri•n of MNna~-5h.lMllle Ltd. Y"'-•Mikll'II MUi. Ql
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•l.~12$6,287
•' Srivcutqv(),
-;~, Sf• •• ·r.i~,'

WOO<q\11'1 01 Motor lnd'Us111. . Co:. I.IICI. V Mati•~t OfMolOf C:o. l.td, 217

V0t~n of Nllg.!rl Co-ope~ ~Ing Soden, I.tel, v $!ate qt T.N. t 15.MM 5. The Law C)r, Indus.trial OUputcs: ;o.P. Malltotra. QI
'i!'~'V~r♦l'I v DhartH'np al Pieffl1eh.an!S (S1uu,ld'ldhl} 202 '
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W:>fkln•-n v Gr•~~ CottOf'I Ud. 190 r 6. Labour & ltjdustrial Relations: :i:_·K. Plfrl.
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s.,,....,,., C<>(,i, Y•orly o;&"e,t,/ SCYD (1995-2 0 14): Slt/,/1..,,,.• •<l/,iik _ a
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f!l:RESTONe TYRES* RUSSER CO, vF,t & R. co.289 r 7.
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~ · ~ orltmCfl, lndtan Stln<fU'd& lnt6tut1on Cat♦ 103,110

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~oqi, ,..live Hous~g Socle.y v ObtMd
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Introduction ;::
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The 11fai11l11t#ltfl ef l11dw1rial p«ta ditiJmd kl o.Wntt t411om-" 8/'0»il/J
ougbl 14 #r tht obfarti»t of /aboq !,,0Jhlio11, Tbir is I() b, t011sir1#11I NJitl,
I& affl)l?IJ)ks0/Jt1111 ef rocia/ falliu •im 11M compnhudw 0111/Hk of
p,o:moliws I.ht (O}f./ltflt#t' i111uu1.

lnd1.LJtrull law in the modern .sen.5t: is :a pon•iodustrial revoluiion

phMomenon. The emergen~e· of a -1pate of indu.nrial il.lld welfue
legiucions in W western 'A(orld was mainly tO withstand W pandoxica1
&iruation gt'Mn.ted from the' .repucus,LOns of the indW'U'i.al revolution.
'InU$ tbe legidative measures wcTC projecred u 'wiun:ri-al! revolution
3hock absorbers.·
The industri:a.!· revolution in the late 19cb century brought about
revolutionary and SWCCP,ing change, in the western world. Notable
inventions and break.th.tough in the production met.hock, tnnsponation,
navigation a.nd develOpmenrs in the shipping industry, introduced
oorrcsponditlg du.nges in the~ ~ up a.-s will. These $Ci.cntific and
t.cclmological ch_3.0ges culrninarcd in the emergence of two classes viz..
the t1':rtp,tflNlr class ·:u:1.d the ~ 10rni11.z cbS3:. It is from the frequent
dashes a.nd co..'lfiiGts of thek: d.wn.of the $ociety that imny a labour
a.nd welfare l~w began 10 spring up,
Labour bw :also known :as 'e:ir.ployment b.w• is the body of law~
tcLn.inUtnti.,·c ~ and J?rccodcnls. 'Which address the lega.J right of.
ffld renrictions on, working people .1.od their organiution. As such, it

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1,.ab (! ur 1,.Qw • l • lntroduc.tio n (,j
!
; • mediate,. many aspects of the rel.i.tionsbip between tr:tde u~i6ru, ~ la,ge w!org,.ni,,d sectOrt, urukrground cconoiny•a,,d 1.,,.. P"'
'•. emPtoyet'f alld employees. ln o r.her words, Labour law defihes ·1he Cap.iu u,oome. These h~vc Jed tnany;·t9.demand reform's foc.uf;$j.r... 0,
rifm ~tld oblignions :a "'-'Or k.en, ~oo members and emplo ~ in the mtuhtfoxibili!J· Ul India. Indh. h~ ovi!Fso major Act, lbd-'iitln:ftroUJ
\VOr)q,lace.
Generally, Jabour law covett•
•. laW.s that J't'gWate,erpploycr.s in mattc,:s relating to industrW 'rclatiots!,
· erJ'IPoyces uo~ ii$ ,vdh$ who, l_i¢,;.r~cl when enterprise,,c;w employ •
q
Induscrfol rduioru • ttrcifie.i.rion of un.iOrl$,
or te~:ate etnf)loym.ent. Mllny Qf tbe$e 1awf sun·i\l\!:f.r:,ni Brit:Uh. 8,
~bouMnaiugemettt ttLuions.
eolarual.ti=s,whil,'"""" ha,-. bo,n 1 .,,.creaw, ~,di.>>~indep,'1~
&om Britain. · . . • _;__~ ·

Collective bVS2inuig and Qn[ai:- bbour pnrctioes.. f ; India is a l~ral form o!'gov~ ~ nt. labour is a'~ bject in W · 0
Wod,pl,o:e h,alth ...t,JetJ'., . ~· ~ltOllfffll list of the Jn<iian Co4$ti.tution. a~ therefore Jab'.o\k mattcn- . '
,•.

Employmco.t .standards~ i,ncluding gcn.cral hol1cby~jnnllti :are io. the jurisdi(.Jion of both Ce.1nN1'and State govetn.r:nentS. Both ~ Gt
l~ve, working hoorS,·un!air dismissals., mioim1t.at~e. Genua1 w .St:au: governments Juve ~A1cted laws on l.::a~ut relationt ~. Ii
. •
layoff procedlll'(s,,2.nd ~·erao.ce pa)', e-tc.
,
,
1r·
and ~mpl~t issues. : _ ~ .~ ,J 0'i ~
th
In : 1998, th'e 86 lntttniuiOi:t::al bl?l)r.lr Coofefoiiee- ad<if¼J
· , The labo1.1.r movement has ~ J l instrumental in the enacting Of law$
,.,. ,tproteel:fng libou.r right3 in die t9ffl and 20"' (;Cnnaries. Lab~ ' i~hb
l the ~ ttn F~ntal PrtJldplu i1t-d ~ht, aJ IJ7Qrk. TM$ d«W'ation : <u
~ ~Yd bed i,ntegral to the·sood and economic MvelopmeU.t•siA~C \lie oontaiDS four fuodamcntal policies.: .~r: ' _'.,.;: 1- ~ '
t . ,·~- · !<,, .
.. r ~.N:VOJuuon. . '.f. 1. The ~t of workers ·yo :us,oci:i.ce frcilly snd. b~q:lin • 0
.._ : •• I •,• coll,ecth,d _ + • Ill ,.. • f ;,
. n ,
Labouri LaWS of lndta .p; ·'
The labo\u· l:aws of lD.d.ia originated and express the socio-p81iicl!
2. erd
'rhe ' of fo:ced and "" '
COD),P.~$0')' lalw,u··~ ~ . . j "
-~ J 0
3. Th, el,d of child laboufya.od a • •_
' it.WJ of leaden such as N,J;r., from pre-1947 independen~ nlcJ'crtltnt 4. The ➔d of unfair cli$.crimio~tio.a. among workcn~ I
0.
. •.ttrtigglt. These Jaws were exp&aded in put afttt debuts io Conz1til1lt:Dt ·
'A.ueDlblies -:i..nd i.n put fr.om inte.rnationol convent.log) ~nd The Il..O assem ~ t its members MVeii.n oblig:u ion td worlt,_cowar~ l

(/) lC<:omm.enduions rudt as of l11ttrNtti~ l..4/JoNr OrylUlil!WJr (IL0), 1'1ie fully ~pcct:ios tbdc principles., embodied i' n rdcvant1LO'C9nvenrionsi . 0
The Il.O Coaventlons wb.ich rmb¥r,tbe'fundamenW prµic:i.~ ha,~ '~
~ 1.- cu.rrc-.ot mosaic of Indian laws on ffllploymcnt au thus a Ct>m~Uiiti6'o
now been ratified !by mon rntmbefStiteS. ,,. ... ' '
:, ~ of l.ndi:a't bistori dtiri.ng U$ colont.\l.beritagc) India's experime'il&..w~ I . . G
:,
(1) w>: .. sOCi~ism, imponanr hu.au.n righu aod the conventioru and s t ~ '
-'1that have ( ! O l e ~ from tlae United N;ations. "rl,e fawi coveT ,ll;ti~,
C. • qt'
"'.. t O wo.rk of one's c.hoice, right ~ainn discrimination.. ptohibi!loii Jf
0
~
;:;: · . child Jabour, fair a.nd bu.nu.ne conditions of work, $()ci;af sc&Mty,
:::,-
.. r.iprotcc.tion of wages, redress of grievances; n~hl ta ~Is, a":J}iff, ttt.rdt 0
()
Q) t •'
·• if:;jJ111io~r. tolllltiw ba,,;gai.t:ilfg and pa,1itipd'liflll ilt qJ<1.t:fJhum1t. ' ·! '
3 ~.. l.,".<; loi:li.an labour bws are co.a.side.red to be wry highly _regub~~ ~
(/) :J': rigid as compared to those of other coutttries in tbe world. Tm
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Q) 1 intenSity o f th~ laws MW! been oitiatrJaS the ca~ of low c:nplJyme.d.i' G
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AMl"f-8604000350
2 $1ck, causi.ng tnany worker$ I:¢ be minreated -and unckrp.uti The trade
Trade Unions: Evolution a~d Growth
I
'l'ntdt «lmlR iJ (J i'll/Jmlry ~,;§11/111~/M ef ~~ ptrtaitti11,g /q a
piutkvjar tradt, /KmiJ!Q' or • co»l/Jtl'!}' 41/d farl(t,ld kt pr-roll mui
,/mJfNI 1h,ir i11t~"J:S a,-d wt¥arr 1rJ' rolk«wt ;t.'tiob. TIJ!y mr tlH MOH
,111i!a/J/t flr$16i.sa'fio,u /<1r fuhuitt.1, dml 1mproru,t1flM n/atiq,rf btJwrtR
tloe ,m,!Jh)~ tn.:d t/x mpkt)WJ, T'°O•IJ'IT famfd 1,J; 01J!;• t.o "1/tr u, JJir
w,n/:m' IU111,1,ul, b111 alto /IP" hmdralit!J in 1/xm #;t JtttJt efdi.!dp/i,u
Plld rt.rptm.ribili~ ' phil,nthrop;.,. and bwnarwu. While the o:onoimc bardship<of worker£
History o! Trade Union Movement in fndla' • moYcment !or ruuional independence. The fulure of worke:n' initial
lndusuialtz:n.i()n ~round Llit world has crca~d ~ faq;c Jabour foJ"<:t. In
the e:i.r'ly stages, o f industri.:i.lii:a,ion, the 1:i.bour class laded so~fal
coher~cyto orpnise themselves iu llQ o rderly manner to fight~
the tv~ ol tbe syn.e~ in wblth the)' found themselvt:$ entrapped uot
~f thci; o~ u c.boosm~ b~t bec::ause of the CQmJ)Clling fon::cs 0( the
u me. 1 here was cxplo1t,1,t10n of wot'ktrs dl}e to various reasons like~
State policy of hi~-,ift {Let thi,flgs be; Ere~ economy with minimum
o! $~ate ~tt'Ol). che doctrine of freedom of e6nma, the pre~k.nce
or lure ;1nd fire re.Je, etc.
1, h!tp:/lo-.1.'• ~s.CQm1'q/M1l'lllgir.g-8uelness- 1(l88l201313.'mrZ4.htm.
E~la~ I~ Ollgin and Q,l'owtl) of Tt•de Unions ill !nd'a. .
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C
C
Tra.de OniQ n f : E volution a nd Growth S
"'
OrigU:ating in Europe, tnade vnions became popular in mary
countri,sdwiog tbe lodustrial l\,rolutioo, when th, bck of lkill neoessa,y E
<)
(/)
to perform most jobs (on account of machine$) $hilted "'
(.)
employment bargaining po"V:'· cr ahnost compleufy to the e.mployen' ~
.<::::
union movement has emerged as a ruult of growing co.mplc.1.iti.e; of ;::
,::,
economic structure, growth of cliss consciowness: -and 21n .inment of (I)
oo,nmon objecti,,·cs among the workir.g cl.us. Con.sdousoess dawned C
on the working fosu that they mwt wtitc to improve tMir condn'ions.. C
As ticced ;,.bo~~ due to a surge in induitrial aajviiy in the [atcr
pan: of 19th cciltury, the population of working~s i.ncrea.sed. Si.nee
~
(/)
the cmployen were mainly ituerested only in profuability, workers Wen'
at ,;a mercy of the employers. Slowly, the concept of • N1,l411 naned
t:wnc hold in India. The trade unioDiun in 1rum., hvwevu, developed
quite slowly u compared to the western nations.
The movement was 6m ,ed bj, pure n'ltionali$u, $OCW workers,
have been present as a luent force, the impetUS for the growth of
labow ~ t i s provided by the major politica1 currents, panicularly
attempt$ to orga.niz.e Jed tbim to seek the help of philanthropis'-5 and
social workers who gellC.rally came from clasiet higher in economic
and so<ial "'""· .
(I) First Phase (1850-1trio)
During this period, the working and living coodicions of the labour
were poor u.id their working houn were long. Capitallsu were only
im<fflu,d ia ibeir produetivi,:y and prolitability. In addition, the wages
were also low and gcncnl economic conditions were poor in industries.
NM ·L okb~ p.ibMhed P1t11#N#JINI, a workers' magazine thai
pubtisbed norie$ about m.it.erablc situations of workers.
ill order to regufatc the working hours and otbt:r SttVice conditions
c,f the Ind.i.ua textile labourers, the J11dia11 Paaoriu A,1 was enac1.ed in
1881 (amended in 1~ 1). A.$ a r~uh, employment o f child uhour wu
prohibited. Many tlrikutook p ~ in the two decades following 1880
 . ;"ft'"'"' t r,;'
Labour Law - 1 r
, .
T r ad e lln.ions: Evo)~io_!f and Gro wlh~
~-
!<.il"\IP,C • ,4·~ t t f;.. -i•:
~ in1all indusni.a1 cities. T hese strikes uught. worlcerS: ro unde.rsund the uo.ioos were formed. A strike wu-1.:tunchcd by thC$e unions: under tb
p(#cr ~f united action even .though the.re was no union'i:n reil tef{tt$. JCa~enhjp of M~t~ ~~dh~ whb -~ ea it in.to 3 J:t_!f'i.m. ThCsf
unions fo.dc:ra.ted mtO mdwtnal umon...known as Ta.tile Labour
s.riull ~ocwi<,., ill<cSornl,.,.y Mill-Hand. ~ t i o o i:o.m< up byihi,
... Lari>:e,;~fonn~ by Lokhandc). ln 1890_, mill work:ers\ of Bom~ay Associ,,'"'° in , 920. Tht lint tr.dc"'""'1'lcdc,ation AITt!C,, All lodlf
3.1~iid W\du them.me o{ Boin~ Mill-oa.nds" Associttion. Ahli~ Tr.ad~ u tlion Gotigrelli was formed~ 1920. M.a ny of-lli~ l~de°'rs ◊f. •
thi$ organization Were leaders of the Naiioaal Movement- . · ~- (i)
Ind.i:a . n.evertbcbs a start,i,in
. thlde unlon .in~ strict t!.n$e•·it,w11t
it wis not" , ' .
In 1924, a violent'-"" long-draw<>OUUftil<• by uni1"' kd tOJJ,ei,. l
..·~
' .. '. tr,
\Ill ~<t<ond Ph<Jse (1900-19◄6) , , · ,
w-esc, prosecution, 91>n-,it:t.ion and ~P,0 $0~ of niany,.~➔ •· 0
kadct;s-~ g 1928, All India Tr~~~n Fcdem.ion ~waS ,. ,
. ~ Th~is iih~ rb ~11.nctcriud by the ~vdopmcnt of o ~ d
uru~~ ~n~ poh~1c~ movtrnencs or the working class. The RuS~an
~t'ae form.eek • •
'
~
~ r- ~·"·
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61
In the early 20th century, .&!J(il--!£ntdt Co,,,,,,ts,;.q,, studied' the..l""
.• ~iilist ~'!l~uon under the le~rship of L..tnin ga\•e ,hope: to Iddfin con~ioo· of wor.kc~ and ruggesied the fOrqtatiom of 'fh,d~ Uniom""J.;;
worliic':'.. -:C:he ~~ss of th.~ RwS:Wl Revolutjo.n {i917) cicai.cd a At per tbt: reco~ncbtions of ~be Roy~ Comm.i.uiQft;7#dit1A' Tfltdt. •. ©.
revol_u uow.ry wave of ideas and a new self-respect ;i.d e:nligbr~ i :
and~a~d~ momentum co t he feeling.or c~onkiou.sness uno'og'
' '
U"io~ Ad was•p~ssfd in 192(,. Ho••~er. due to $-C~O~J'oppotitlOO
'1- . ·-•
J:
from employ=," ,t.. enforced only,m l927. The ongu,,,I A<d,cked Ci)
~~ts~J\:cci)rdit\g tO M ~,. •e.ipit.al is always evil.• The more capfnl teeth in the $CC$C tbi t the formation· of~T r.lde U nion ilSelidependent
11?-cieU~ ~e m o!e g~edtne$s 1n the e11pitalist.S. Karl Marx ptci chct ~ ~ l'Q(::()~tion bf du: e.cnp)O)••r. DL~o.a. ~ o.in!'f~i:n--n~ w,.~~
!!"'<;ilu~!~~ and VJ.olcnct. GandhiaD theory is based·on principidf'o ( 0
ui.ade t0 fix the i..srues (Iii 19◄7, the Act'~..u unendtd. ~i"cJcly a, eer
i.:

tn:i~• non-violence, muru.J tnl$t ~nd colbboration. t-' the socialist iocl.i.nation of the. polity): J~
• , ... .Between 1918 and 1923, m.t.ny unions ~ i n t o ~ in fte
l • fc,.r.,.,
,-.!.'I,.: •
•·~ll~. ©
According to Punekar. ..Durii\g thtdecade 1930,.4-0 ~iu trade ,
-:t c°"?'n!fY· T he year 19l8 was an impofflllt one for clte Ind~n t~C .
u~ru$1!' w2.s 2. dr..-i(Jt:J house :and thC: J~Cragc i.od1»trial WorUr Kept ·
~ ~~n movement. Tlle i.ndustri2J u:u es-c grew up as a result of v:,ve
bi.n:t$e!f aloof &om ~rpniud action.'" '!pc._ ~nd World \Var. 1'-'bich Q
• ~~om.ie difficultic~ c!c:ucd by Fust W:orld War. 1'hc ffling costjOf
broke out in 1939i ettated new tt.r-Jn1· in, the uajted ~de union. ••
li\~{ng pro~pted ~e workers to dermnd re;1.,om11.b le Wo1.g¢S for Which
(/)
purp~ 1b:y uru~ed to take resort to_collective ac:tion. The, mJ'nJ
mO'~c~ H ence,?Pin a rift took pl~ in 1941 a.ndih:c ~ ) e f t ,. 0
~ moye:~nt un~ns.ified the mo\·cmcn t, wideMd the, gulf between tlie
the A:fl'UC with llta.rly 200 unions ~.!Ofm M a new ocn:lnl ~~
:,
:, employets an.4 1he e.mployeen.nd brought 2hout a mass 11.wa_kefiipg
kno.,n. as the Indian Federation of Lilx>ut, · 0
(1) ~ th, worlwtde"""'""ll r,ci,lequ,!i,y with !heir Britis.b emp1_,· During 'W.U--t,i mc cs~cond wbr1d W:tt) cttU.i.n factOTl.belped 1;; , '•'
C.
~
_. The ....i,!ishmen, of d:e I.LO. (lntcrmtioml Labour ~ 11\i e:n..b.tnee che status of the trade uni◊~ lo the oount?Y~~
govenunt.ul u well -as employerS laun~ a number ofl-al,our'9fclfaic ,t
ely1 ilie.. b
;:;: to.19-19• gave oignity to the 'WQrki.ta.g di$$ acd aho an opportu.o.kyi,i ~i'
:::,- _- sen~ a deleguion to ch~ i nnui! conference of this body. ! measures with a vi.c w to· increase prod~tiQn o f war- materials a.qd'
other csse.ntial g(l,()0$ 2nd main\'aUl htgti'eiofits. R~ n to trade
()
Q) . • ~ T he,non-cooper.u ve m ovement of Gjtodh.i du.ring 192().21 aDd
hl$ $1.1.ppo'fl !o the dem.aods of industrW bbout also gre~ily inB~
uwom w;t$ >Wl<ded by many employ= Tb.i. l.c< gave .,,.,,al s,rc11gU\
3 to the unio~ A Triputic! Labour ~tt~ was con~ ed.in. 1942, •
'I the wor.k.m~ c~ tb~rnent. At Ah~b'ad, under the guidan& l'Qf.:,
(/)
(")
Q)
:,
Moll•tmi Gandhi. oca,{'Otioml unions like
'
'I'"'_. unioos and ~
.
for the first tune, to provide a CQmmoa platform for discussion, attd ·
ro.utu~ UAdersca.o.dio.g between th·c· bGow- uid the cinpl~Yt:'!1·
. ~ I.
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8 C
l.nbou r Law - I C
·T rade Unions: Evolution and Growth 9
(Ill) Thi[ d Pho,e (19◄ 7 or..wards)
S Centre of Indiui T nde Union (OTU): Follows policies
"'
<)
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T he thi.r4 phase began with ,he emergence o{ independent- In~ (in Qf CPI(M).$ E
1947). The p;a.rti1ion of country .,ff«tcd i.he t-rade un.ion m ovement
p:micuJ:irly in Bengal and Puoj.ab. :Sy i949, four ccoual tude uuion T lie 'post-indepe:n~~ period' ~;i.5 bce:i muked b,: the .,tNlde t1n.icn "'
(.)
org~n izo~ions we.re funclionjng in the country: 'the AO lndi-:i Tr.1de movement':" i.n India. The m0$t 1mpomn.t/am11 bew.g: ~
.<::::
Union 9'ngres,. The b,di.n Nu;.,.,,J T.-.dc Uruon eonq..,, TheHiudu (i) The eonsu.nt inflow o f outside and i.ntcmational influences; ;::
M=loor.Sani;J1(HMS)', ,nd, The Uwtcd Tr,de Union Congre,,. Sevcnl (ti) Th e pressure o f in.de uni¢n riv~lrics, ◊ftcn !n,ed on political 'O
Other Unioru we.IV! lar<"r formed, o r ideological difft:ttnces• (I)
C
1'he working class movement was howe{•er J}()lilirittd :along the (w) Government', 1nduruial Kd>tions Policy with its provu,on lo, C
Jines of political putil?S. For instanec, ln<fo.n Nnion:d Trade U nion compulsory odjudicuion machinery; ~
Congress.(D'ITUC) is the t ~ union arm of th~ Congress Party. The {iv) The eoactme:.nt of labour laws codf:rring special privileges on (/)
AITUC is the tnde union -um of the Comniunist Pany of India. registered trade un.iom;
&sides worken, whitKOllar employees, <1-"Uperv{sors and managers are
~Jso organized by th e u-de unioru, as for ex;Ullple in the B.1nking, (v) Desi.re of work.en to unite !or safeguarding their inte.rest
lnnlJ'a.uce .and PetrQlewn i.ndU$ttics. I ttpe-cially to face harder condition, for labour such u
retrenchment, lar-o~ etc.;
Soroe of the. prominent T rade Unions in the country art-:
('Vi) Attempts nu.de by some 'e mployers to set up Unions undtr
'
S AJTUC gn.dually went inio the h.\llds of Commu.uiJ"t:s.. th,i,~
AITUC later went completely U1 tb~hauds of Communist
Pa.ny of India (CPI) after the comtrl~n.ins split in 196-t. ObJects and functions or nacSe Unions◄
S Indian 1'.1\;ltional Tt.tde Union Congte$s (/NTIJC): Fonncd The prosperity of an industry &pends upon the co-operation of its
in May 1947. Sponsors the policiCS ,and ideologies of
cwo c:ompoZ?,ems - the capital a.zid the ~bow-. M_disputes b~cen t~e
Cong-pony. . capital and the labour ar.e incvita.bl7 so ~e obJttt of any md.t11tnJ
S· Hindu M:udoor Sab!u. (I-IMS): l:ollows policit$ and legis-lation is LO ensu~smooth relat1onsh1p b7tween the';"~ and to
ideologies of J:an.na P:a.rty. strive for $ettlcment of'any.d.i.sputc b}.. resorting to neg()(iauon and
S • Bh:a.ratiya Miwoor-&ngb (&\1.s): Sp0ns,oq ideologies and conciliation. T he imporunee ¢ ( ,he trade unions lies in the fact th:tt
policies of Bh.:antiy.i Jam.ta Party. · they encoungc ruch collcccive barg.aini.ng :i..s ensures better terms ~d
S . United T rade Union Congre$$, (tnlJq: FOrq,ed by c:onditio"' of employment to the la.hour, and a.t the same tune
Re..•olutionuy Socmlist Pa.ny ot India. SJ)()nsors policie;; endeavours for mairiten:anee of good relations betWcen employer and
of Communist I->arty {l.eni.nl.St). empJoyecs..
T b.e trade union regula.tes the relations between the worlurs and
tbe employcn. and the· wo:kcrs and the State, in nu.tters ol mutua.l

:2. Tl\.e HMS was l;n,ne.11ec1 oslel\titlly wlth a \'ie-w 10 "k9ep I~ trade union
movemont ftte frcm dofflln~ lon by gcn,ernm$tlt a nd ooli!iai1 paities and the
methcc1$ ,to be- cmp;oy·,er,ci wort i.o ~ i:ieaotlul, lipi:irnate Md dttnOalS!i~•
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Labour Law - I
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Trade Unions : Evdlu"tl on .'lnd
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·coh-ce,rn such os the temu and condi.tion.s of Cmploymtnt, reguJ~tiOri foI promotion arid t\,~l.- •
o ( Wages arid oiher :1.llied m:m.er.s $\I.Ch .1s $0clal welfare sch~mcs, ~ tc.
r.::\
~
To enlai-
' b"'
opponun.&ies
~ ~••J •• 'l' 0
·-..~.._ ·The tnde union is ~ttn.ti-.1. !Jy a bargi~ing 111gc-ni by co~ecci~'.e
("? To. improve working.av:d ~ivtng condfrion.s Of w~r k,« 1.;
(•'' To -r•·n...... ,.. ..;:;i..,ral AAd ..,,..~
=-~•~for educatioihl; .... __/iaiiti,-,;.
, - "-• ('.)
:i4i,cm.s and, du.refore, collecrive b:1.rg,.ining! i$ the n11.tunl outcome of
.r.; 1nde UJ).i.On Action in or<lcr to augme.nt the welC:i.re of its members '~)- To co,-oper:ue in,m d ij~iliiia.tc i.eehnol~~~ ':ldvanc~·-~y;
~ d thC' trade it teptt$Cnl$. In individual, bargaining. the emp)oyc.r.
. brn,,dening rhe u.nckn~
. ~-
·of .wo d<er1 od 1~ underlymg
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0
! wing to his superior b2rg:ainia,g power. can take advant:J.&e of the ~

.
' JSSU_es; . ' r. Ill",-,
~•ei.k'U p0$ition of w individual Worker as~ remit Qf ignora.noe and.
need: The objecth•e o( the trade ~on; is tO mite labour out of cqc
.(~ To promote identity oJutt:cfetwi of the workm_wi~ Ul.~
. '-'-·-- 0
• ~""J; •,-!~
«>mpctitivc proce$S. Under free competition consumer $0\'ereigncy (VW) To offer responsive ~ p:e~cion io ir:npro.Ying trends,o t'
ma.y. ruult in a competitive ~ o n o( wages. Tnde WUOICI w ~ ck£ 0
r · prod4aio'n and produc.t~vi.iy, discipline and·high standard

-
-~ ch unhealthy competition. of q"ft)-; ud gradually, . -
p Even. in a prol~ria~ society the purpose of :1. track u.nion is to @
r.-\ To P\Omotc individual an'd colleaive. welfare. ~
..~ •
sa11¥7 the ecooomic and cultural requirements of in me.tnbn-$. KJH ·.!
~-~ described tr.u:k unioDS thus: • ...rhe Value o f J:abQ1.1r-pow¥i: ·Th• Trade Unl~ s Act, 19266 ·• '
.
. _
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g5t,l-$ti!,Utes th e conscious and explicit fou.o.cbtion of t_\lc tnd.e WUOti
'Whg9i!- impol'U,nce Cor ~h• [ ... ] work~l'llg clo.a, ea.n 11co..recly ~c ~ baste p ~ cl legislation on tr-ado _unions ii t0 P,rov.idt ~em die;
O)"CCC$timared. The tnick \I.D.lo.w aim at nothing ]C;S,1 than co p ~t-~C usentw Jcga1 bas4 for C""t;',lDiti~&,~ ~r!ten, -~~in ~ :me e~J6ytr'V G
1rtd1.1Ct"io.n of wages below the level tlut iJ traditionally maintained _lft aod «>od,iet o:nd.j<WP""'•Tnac'WUon lcg,,lAnon ctWi<!s ,i,,io.,..i.lly
grdwui, ttduce t)ie.i.r multipw:rtx1¥.".Prorrt(lte intem'1, dmlo~ _in.. 6)
· ib~virio~s br.uiches of indwuy. That is tb "-Y, they wish to preveq\ f
ihe~pt'i«' of IQbour•powCr from falling be;low its val~" (Ctp kJ! VI 1 th,,industria! ~ n.,,a the'"'""''">'·Th, tr.de~~'< th':,';
,oqwed'an iaipoiw,t pbce in t&e economic, poliual !;M~ -'S up~
l867,
. .I p. 1069). • .
of the coumry. The Trad. Unio~ Aa, 1926, bu bee\\ itm<a&cll~ ~
·l··
J:.Thus, lhe trade \JJti.On t ' /JNit' functi.oo 'is: to prorect the l~t~~ time to time and the ffl0$'t •impo}i,'Ot being di~ .tl'~ucie Unl<;>n~ (J>
(/) Unerest of the working classes. Aeoordi.u.g to Sidney and Webb~•~
NPM~ b a t,/iti111t~HJ abfNi.atiolf ef ~ Nnffl"far t.lH fJN11Jftl# ef 11u,;nkrm!JA lli,d
(Amendment) Aa, 2001. This Act' ~ been enacted J.O :o~r t~ bpn,
~ . ;';;pn,1-,R.g 1Qt &t»t4i,'i~ t <f lhtir •~·,g 1,_·r,u.' The Nuional Commission o~
more tn1nsp.1reru~y :md co provide _greatu support to ~ ade u.ruorumr
:,
:, in lndi.a. ''""''-·
' . ' 0
~ ouc on the future role ol the :TncL: Union rnovemtnt in India h:is .
(1)
C. ~ .
the following rt«>mme.ndations: ;. The Tnde.UniomAa, 1926, .;.,.ods
to the wboll:of¥>?.Wnh_
(:)
~
~' '
(i} To sei:t.i;re foe W~rken fair wages; the pos,i,,g:of this A ct, the ~t•frigbt to •&.ed#.·.;r--~•
w~s impliedly recognized m d U\ t.hn .sense <>rgan~ trade uru~n:
;:;:
:::,- f.-~ Qi) T o stfcguard security of ~une -:wd Lfnprov~ co nditiOn1S """'"""'" att,u,.ed legitin:=y. Althpugli the Prcm,l,le to theAlt•~\'¥ 0
() of servi~ tba't thi.s iri$ "AA Act to provide lbr the i-~ratioO. of;rra& Va.ioa.t
Q)

3 •
tw9 • l~itlo ti. . m«i~s Ii tba! t • void$ Uf'IIJ• <:fl.Nl'Y lltl98tl0f'I: that
aa.d in certain rcs.pceu tO define th~ la~ relating t.O r~istued ~raa~ @
6. Col ~ Uiiions". but looking at The' histo~it deydopme.;-t~9f tnde un10!1
(/) } ;_patt\'.e•.the..mselves rMOIV$ dlelr d!SpUt9 and so h ff mo~ <1,omo,;,1.tle. Heinoe, !t. ' <f• t
(")
Q)
:,
·,
.-. fl9Sultt ilf'I h1tmonl0us ,.i,uon&t!IP betwff.n 6!1'1~ and worktn-. b•MAlll9
· , ·l>ottl: CCI~ ba!l)lllllql I• qulek end n ill effld&trt. ft does DO( In~ bttemen
< " between tlle ~ilties. tJnn.ecenary f',cpencfture. unlike in ti. ca•• r,f ~udlcaiiori. ."
1rl
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12 Trade Unions: Evolution and Growth 13 C
La bour La,v • I
,uovemem in this couatry and d$ev,•herc in the world, the main object 8. To help the worken in imtoduo.ng ~Ives in puticipatory
"'
<)
(/)
of the Ac1 ts to replace i.ndjvi.ch1al busainiog by collective bngaining moYemtot in the diffe-rent discussion of the Dl.Ul2icment of E
the otpni:z.ation.
system.
9. 'l'o hdp in providing the cducation:al. recreatiolW and cultunl
"'
(.)
CoU~tive Barg~ining is ;'.I inet·hod. by which probfems of w:age5 ~
:i.nd condil.i0n$ 0£ employment arc nsolved amicably, ptacdully and b.ci!itics. .<::::
,,otunrarily bccween labour -a.1ld m;inagc.mem. [t is rc,;ognized as a right 10. T o id.c.ntdy. the different role;- and rcspomibiliti« of the ;::
o( social lnipona.nce and greiter cmp h2'is is placed on it by India'$ workers in the industry. 'O
(I)
five-ye;ar ph.ns. Yet it i., not eleY2te<i to the p011ition of funda.tnc:nt.t.l The Act is administered by the Min.istry of l..4bt»tr through its Industrial C
right to f~rm associ:i.tion or union under Arride 19{1)(c) of the C
Rchtion, Divi.1ion. The Act ;,,," aliq provides for the following;-
Constirnrion of India as wa$ held by the Suprerlile Court of India i.n
(~) It leplik$ Trade Union and gives it corporate personality ~
(/)
the &nk & ~ AWMtiM \" Na:iolsd l,,Jil,•INJT,ib,qu/. Primary pwpo:se
of ill t-rade Union is collective bargaining: (&ft.(: ef!114:t Emph;u,'AllMUlior. (S<e. 13).
v Ru,,,. Bo,k of 1,J;. (198J) 2 LLN 872 (Bom}J. (b) It provides for their regi.str.ttion (Sea. 4•8).
The Tnde Unions Act~ 1926, Wllf pri111arfb e o-:tcied to accord (c) It giva certain immunit.i.CIS to a registered tr.-de union (Secs.
pr◊lectlon (from civil or cri.min7J, p.rosecurio.n) to the union lc.ade.rs ('tia 17-18).
rqi$i:r-,uion) for the act done by chem in connecti09- with the kgitimate (d) It giv« Trade Union the right to pa.rtlcipue in polic;c;J
trade wtio n_aaivit.ies. The Act pro,..ided rccognitiop .:md proteetion !Or aaivities (Sec. 16).
a muccnt Indian labour union movetne.at. Thef.Act dc-~b with the
{e) lt allows the Trade Union i·oa.$$0CU.te ""~with it (Sec.
registr.ition of t:r~ unions, their righu. their lW,il.i~aod fes:po0$ibiliti.es
22).
~ wcll u ~ that their funds areutili$ed propcfly. l l gi,,·cs ~ and
corporate st.aru.~ tO 1-be ttgistcreJ t r:a.d,e un.ionS. j The imporcun fallou~ of the Tndc Unions Act, 1926 is dut it in.ditec.tl:y
gi.v~s the work.cl"$ (:a) the rigbt to go on: a pca~ful strike, and (b) to
Tht: Ac.t is applicablt not only t<> the urtion q{ workel'! but a4o
to the: ~farion of tmployers. The main ()fj«tivt.t_ of the Ao. a.re: • - "'coll=ive bargainiog. Fun;!=, the collective agreem,ot am..d
at bet"Wecn worlunen a.nd emi)loyer is binding on both b y virtue of
1, To promote both individual 2nd collective •·df~re. S,e. 18(1) o f the Indusuw Oitp.;,e, Aet, 1947.
2. To k<:ures the ~ymcnt of s::al.i.rit$, wages,. :JJowan«s, a.c. 0 ( lt may~ noted tbat,C~mtitucion o! India (An. 19) oonfenon
tbc Worken. :all eiUUn$ 2 fundameAa.l tight t0 form mociatioos,or wtiom (discussed
3. To ~cure the employment o! the worker!- b.-"1~. The 'ri.ght to fo~ lJnton' is tbus dt;,t~ff r«OgO.iud in India by
4. To prorcct$ the working conditions Of the. workers. the Constitution o! India and the Trade U nion Act, 1926.
5. To secure the opponuni,ies related l() ~he promocicn of the
W0<1«T>, Constitutional freedom to form Associations and Unton1
Art. 19 ( t}(_i): Freedom of Association
6. T ◊ enlugc the tr.a.i.ning oppomu.titic:s.
An:icle 19(1)(e) guumtce to all citil.em the right ~o form associations
7, 'To :u$-ists in collective bugai.nin-g to protect' the interest of the
·:LJld unions for pursuing lawful purpooes•. It indudt.s the right to start
WQrkers,
u 1.SSOciatioo and to cooti.nue it. Under An. 19(4), however, 1U10nable
 <r?.tr' ~
. •'
G.
,'#ft 1
~·-
-~ 14.
"~ .
Labour L.-w • l
rcitrktions can be imposed by the Sfitt~ "i.o the,interests of the
_~ Jf'.!~ ~<rei~ty a~d integrity of India Qr.pub~ic order- or rnor.Jit-y.~
r
1

' .
' • ·i•ti,
Trade Unions: Evo1,µt ~o n and Gro.Wt)i
·.· .·.J~. $.i,
The r ight to fo rm an a.s:sc,c:iad~an.not be cousb-ued ttiC:aO
tlut it c:acnd., to O~g reeognitiori Oftne~'«. eotttuJW,tioii
,o
•..
:;:_ 15 0

.- Ao:"11$$ociarion" m<=am :t cbllecti<>o of ~ n , who have_jointd• of ~ecognitjon. ~ ·nition ¢ is!,2~t1Pn i$ Ml :l ~taf right•
tosetber, for a et!rujn object, which ,m~y be for the benefit of th<; A M~ f ~ by the govern.meoi .,.requJttd its .scriap.~ .nOf tq J~ ~
•.~m.bcrs or the wcJfare or·ach·an!age 61 the public. T,he aboei.atiOm llSK>Ci.i'tion which was not rttogn'1Ud Sy it -and to wit}ti;lrn,i ~~d
JO ,f ormed would include politioo parties, sociebQ, clubs, oompank. ~tion 'which ~a.s d e ~ ~ ;fbe rult W.-2S~.struck ~~n -;1$
1
· o~alioos. partnership firms, trmk ,miq,u-and ll)deed : my b<?dY.,of
untt;a,,:onablc. rennctton becaus( 1t made the- r1gh~ d.ependint: oh
J>!'!'Ons, Thus, like, 1he 'freedom of • ..,n,bly', the ·freedoi:n)of ~ n of~ :1.SSociuion by tbc ~ ~ t . lt ~ W.:l'ighe-
'i,t.SSOCiation• is es$Cnti2) for the pn;tpcr functioning o f parl~cnW')' illilsoty ""9 ~ Funhcr, the ~jt> ~ ""'}~~ ~
.. a"ef1:1och.cy oi1 for the protection of ot.lier rights gua.ra.ntttd by the nOf in tbc int~rtst of "'public order" under An. 19~ (o..K. C{JOPJ. v
-: :J Co:nstitution. Thw, without such a_rigbt,_politieal t;>an.ies can.no(be F.X. ]-.,.pb AIR )963 SC 812). - ,, ~ , :;(J
form~ and Witho\lt political partk:$ the pnliamc:nt.lry form( of In Ohan,m f'"" v VO] (AIR 2004;5~ 1295), rhc S~p...;me Ciiu;t
go~rument ¢ann0t be fom'lm ' ~ ~- · held that a right 10 form a.s90ciations of unions- docs not include wrtJi.fu.
r$' i Rotiognis:i.ng the imporunee of tbe right of foi-rnmg-a.s$0Ci.atiotu its 1tCJi as a fuocijuneou.l right a right to form associatiq.os or union,
;- +'1 ~-d~~rat.ic society, the courts b.ave nor favo~ the re,tio~jof 'tor a~evjng a p;.rtiCUW' object or ruo.niog a p-.micuJaiWUrutiOn; the· 0
r ~ ~ol,ute discretion in the executive to i.nurf'cre with the ~ t a l sanM! being a tj:>ncomltant- of ~· fundaroental right, but not the
fuiu:bmcntal rigl}.c iuelf. T he a.ssoc~~f ;.s·or unions of~itizcns Wnot
. ~
•
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An Q$$0C;ittion that clalln$ the benefit 0£ tbe right o/ a$5oci2.tiOn..
fuii-hcr claim a.si" futldamen W ·ri&h~ W, they oiu.J~ a,a be able l U......
ach.uWe the Puri:lose for "'hich di~1b:1.~·t·come in.to existence .$Ot tlia.t
•. inust be $Uch whose object is· btwful Under the Crim.iru.1 .l'a* 2.ny interference with suclt ~'Crne~by law sh.all.be ~nftinltio~
:. · i~~hdmcnt. Act, 1~8 {:U ~d~d in M.adi-.u) it was Jch to ,the unlc$$,t:he um.e coul~ be jus.tifiecl ~,~ r A.rt. .19(4). ~ !..,_ } .
· ~ ~ . . : Q t t9 dctttlIWlC Ula Nb,ec:tivc manner whciher an associatlOp
. <h')iti!U...S~ 10 public pe,c,. T~e ground, of forming the ~Wo>! Article 33 ~ .·L-. •. :-~lfl.;, 1
_~~- .
could no, be i....d in• ju:Gcial inquiry. Th, eow< hold "'2t du, ~iib
imposed ~ ~esrrict.i.on on the exercise of the- right :tnd. deci:u-ed. lt Vbid Article 33 empower$ Pa.rliamerit '"'to modify tlue~"'applic.ltion' oE
(/) Fundamental Ri.ghu to the Ar~d forces or forCes cha_ ! lfd With
(SIJii bf M,Jm, v V.G. ~ AIR 1952 SC 196). However, dccLuiJ,;
~
:, J aft org~i~~tion a$ ta terrorist ors-1>.ii.atiOn \lC1der- the PreveoUo{ o(
maiatco.anoe ol pub1ie order-, iniBJ.igericc, tc?ooom.mi.ii.lit:ation ~mr,
:, Terronsm Ac~ 2002, would be penniuihl, {.Papid u,,;,,,,forCml J,.,'hm/;, t1:c. in the inter.e-St o! disch.a.rgc1pf\P,eU'. di.it.its -:u1d lbainte oani:CaO~
~ 'i UOI Alll 2004 SC 456). discipline among t:h.cm. Th~.the o.p~1te jur~oJl ol' cour1,-tis
(1)
C.
' .,i• a~uded in cues of"""" =ru,1,:t!>~wrii jurisdlcriqiilt.maw (unlels
~ A c ~ v c society may restrict its membership to a panictihr · wc.e.tt aw"y by law' under .' \rt :}3)~ -~ . ~. ~ ·
;:;: ~ i:~on, oomriiunity, belie:£ oruade, etc. A ci.tiun has no hio.~taJ
:::,- ri.S,P~ to btto?U! iu member [ Zomuhiaw ~ p t ~ HIJ'Ntf»g -S«i,/;~·v Thus, An. 33 cb:s not,bY. ind(~,. wy nghila.'l'~b~
depends upoo. P.vlwrient ~>P.i,f]lanvnt cnactodrhe.Poliice ~
0
() r .Viltria'~(2005) 5 SCC 632i AD Act whlch ahen d,c compo,iqon
Q)
of} ~tty introducing ocw memben w a s , ~ W).OOt:LttituiiobaJ. (.l\enricuon. of 'Rights) Act, 1966,-for~r'estricting ce'tu.in fundamental
3 a,violap.vc of Art. 19(1){c). The governmtnr cannot compel a citizen r-igb'.u of Police Forces. As &ho~nt&:i;the St~t~t of(j>b~ and
(/)
(") to'~ithdiaw from the .membcrihip '9( a union. . 1 Reasom•and me ot
lo.ng title of ~e_Xct,ithc· objcq the ;,(a.~ '.Pst.o·
Q)
:,
pro~ide. for t.he res-rrictibo o! ccrt:ain
. . ,FU.nd2me.nW
~ . Rights 'la ,h'eir .

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16 Labour Law • J C
Trade Unions: Evolution and Growth 17
.ipplicni.on, to the membm of the Forces: clwged with t h.e nuintcnauee indi><ipl,ne, culmia,w,g io d,e mcmben of the Polk< Fore,, including
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of p ublic order so as to ensure the proper disch11rge of thcir d µl'in · Saw-ant, wcaiing black ban.ds a.nd badge$ oa the Independence Day o f E
:1.nd m;iinterla.nce of d.ucipl ine amon~ them.
T hus, ;i member oft.he police force is prohibited. without the
1982. Consequently, the St:i.te Government- suspended the rcc;ognicion
of the said A..$$ociilciOn £or a period o£ three months.. This resulted in
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c:tii1r.J Go~·emment's consc-n.t, or of prcscrlbed author-it)', from being Bombay in ·a strike of the police e¢ns.t;i;l,,..hry and widespread rioting, .<::::
meirtbc:.r o f auy trade w:i.ioo, bbour union or political iu:soci.3tion or of arson, looting md olher ·acts amounting to mutiny from Au.gust 18. ;::
any associ.2Li9 n which is not recognised is part of the fo r« of whicb 1982. The :ippell;aJ)\$ were d.i.mwsccl from service without isru.utg any ,::,
(I)
he i.s a member, or i$ not purely social, cecreation:a.l o r rd.igious in charge-sbecc and without botdieg any inquiry imo the acr, of alleged C
nature. Further, a member of a Police Force is prohibited from mucon.duct committed by them u.ndu Sec. 25 o{ the Bombay Police C
p.uticip:ninS in or addressing 2-.ny meeting or t.a~ing put in any
demonstratjon organ ized by any bocly of persons for a ny polit.ieaJ
Act, 1951. 'I'he Apex Court condemning the acts of the ap pelbnt$ ~
allowed them to present their case before the l.iupe<;tor-Genenl Police, (/)
purposes oc for such o ther purposes as may be prescribed by rules Mah..-...h1n State.
m:.1de under clle said Act (Sec. 3). ! In D,lhi Polk, NtJ11-Cai!1ud Karm.thdri Stv«b ,, U11Joir r;ffirdia {AIR
In S.A. San:m! v Sid,'# o/ Ma~nu~J (AIR 1?s6 SC 617), w iLb 1987 SC J79), the ban placed on a me-mber of police force from
a view .ro give member~ of l·he Bomb:iy Police Fofcc an Oppo rrunity &ecoming a membt-r of :ariy tt:Lde u i:ion. o r l;i;bou.r union was uphdd
to ventibtc thetr gricw.noes with respect to tiervice q:mdltlon:; and allied by the Apex Coun.
rn;iu.c rs the Government o f Mah2ruhin1 annouii.~ tbat it would
Right to Strlkr
permil the member:; of the Force to form aHocfudon$ :it the State
,evd as well .u ;it Unit level ne .1uthoriry to gra.ut ~cion tO ~ 'l.lcl!- lt h21 been b.etd th:n this Artide. doe, ~,guarantee a ' right to fttik~ '.
:a.s:se>ciations :w-as the lrupeccor Ge.nenl of Police, i,.r:ah:ara.shtn St:illte. Even a liberal interpretation o f An. t9(1)(c) does n ot kad to the
Before :&ny recognition w:as given, associ:u.iom wuJ formed and office- condu.sion that chc tr.ride unions have • right to sin.lee (DJ,anv,, D11t1 v
bearers elected. T he ,usoci.ation i;.t U\e State level wi.s- the Mahan.shtn UOI AIR 2004 SC 1295). -
Police Karamcba.ri &l..ngb tana. The Trupeetor-GeneriJ of Poliee g.rAAted In T.K. ~ v Sw , ofT.N. (AIR 200:1 SC 3032), • ...,o-
m:o~n_itio:i lo the$¢ assoclaLions by his o~r <bted ~tarc.h 20, 1982, on Judge bench of the Supreme CoW't held t hat Government servants
condiuons (1) clur t.hi? membct-s fflou.ld not resort to· strike or ~·idihold bave mleg~ or statutory right to io on .sttikc:. Though the trade unions
their services or otherwi.se delay the perform.uicc of gteir d uticis in :my have a guannt.eed "'right for ccllective b..rga.ining• on beh~f of
nunncr, (2) that the Assoc-Ult.ion Would not rt.kiri .to any coercive employees. they b:a\/'e no fundamem:al right to.strike under Art. 19{1)(c).
mediod of agitation for obtaining redn:$sal o f griev:anc~ , 'a nd {J} ch.1t A CoD.tt.it-ution. Bench ·of the Supreme Coun: U2 H111UJ UJJJ,N1I v UO/
the ASSOCUti6n shouJd noi do anything which may affect the Cfficicnc:y (AIR 2003 SC 739), categOt~I), p ronounocd chat the la,;,;ycrt had no
of t he Force or undermine i t$ discipline. right to go on strike or give a ?D for boycott, not even a token itrike.
"f he appeUmts were members of tbe Bo.mbaf . Polict Fote!! :ind "Right to strike" .Jso affects owr's righ1$. A con.!lic:t between
0,,,,,,,Rlt -
off:ice-be~n of the Mah:i.r:i$hua Police ~Mn(;h-ari ~ ' - l n a . Sawaiu two funcb.me.abl right; h"aJ to he re,ol ~ by seeing t he gerci:sc of
1$ aOegtd to have t:ike.o the lead alo11g with one S..:D. ?i.fuhlre in forming which fundamental right is in ,ocietal iGlterert. Tltough th~ right to
the Grco.1tcr B·omb:ay A$$oci.,u i.on ;and staning in iiC1:ivitics. lt is funher
dlcied thiat from the inception of the acr.ivitie$ 'of. this Mklci.tions, the
p rinc ipal offioe-beiren and le:idtrs sraned spreading an at0l0$phere of
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. ~8 . Labo1u r Low : I
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Trade Un.ion.a: E:volult9n ·and Growt.li~- ,..
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, Strilce/r ight to protest c:mnot ~J Would. not be elimioatctfalt~ct\ No poliric-Jl pmy or org;u:a.iu~nlidi claim 11 right to _p4til~ .
..- h'\_,t puJd lie controlled or regulated. viz.. reuria.ions oo the numl,~ of economi~ fl!d i.ndustrW ac~ivitie$'¢.J ~ State or tbCnadon or
G
daf!I Ul a .ttrike. or strikes in a ph a.s«I manner, eic. ' 5 auu- irtcon.Venjence to the.cit.i.zeni; There oumot Ge any righl '
1' , ~ • M· · to cajl or enforce a "'Bandh., wbld\.1n~'if('rcs with tl{C exercls~· 01
cue Law ~
of the ~ ~ " '1 freedoms Of'6uid1-°'cfti:r..eru, in addition to
1
II '. ciusicg ~tio.u~I km•in many: wayS [v¥e C1Mt1,11~-ih ·P~"P'. ff ®
If
f'•
~ OIMO _C\SI:: T,K. RAN<;AR.qAN v ST"'!E OF T.H.
/AJR 2003·sc 30321 , • l 1,dl, (M) v Bha.,., !vn,,,,r (1998) !"sec 201]. • • ·-
h:S AU l ~ Ba1tk. &,pkv•m•A.,lf.'!, v Nali<mal l11IN1trial
.
®
·~
:J.; (~Ov~ent servant! have no lcpl.or statutory right to,
~ ·goon strilce. Though the tnde UJ1iops have a gua.rantttd 4- · rn/JN,~4J. (1?62} 1 SCR 269, it .~ b ~ld that even viry liberal. \
mtc.rp~tatlon of An:. 19(1)(¢) ol Hit: Constitution. c::uinot lead
.. · "right fo'i collccdvc. bargaining.. on behalf .of tmployces,;
to the C-Onclusiotl thu trade uaio~tru[;-e a guar:wt~uo ~ .~
..
.G
. • they h-a·ve no fun.d:uncnttl right to $trike undCr Art.j1
19{l)(c).J · .ui cf(.tcm•e coll~~ve b:u-pining' Qr tO strike either 35. pan of. ,,,
..... , . rr·... co1!eetive ba,r.... :h;..g or otberwbt~ ~. t '".
In this case, :1. t.WO•Judge bench of the Suprt'me. C ourt held ' ~ -; .[ ~~
th-at Governmet)~ servantS h.1ve M right to go on striu. 1n the1 (a) TNf( U It~ l(!f"/ .tkJbr.Jt7, r~'M r., ,g, 1111 . , ~ T hen:'
yeu. 2002. th e Govcrn.mt.nt of T ~ •Nadu i,e.rminatcd i:hejl,. is .;,,wu,o,y p~ ~~ t h e ~
J.rvj,:es of 2 luh employees under. the T.N. Essenti.-31 Servii:'J . to d,J on strike. Furdi"W, .~ere is prohibitipn io go
Main(Cnana! Aa,.2002; the gove"ro.nient eniployees had IC.ii~! on scrikc uncle,- tbc.T .~.,_GO,'t. Set'v.UIU ~
o.n strike ford:iei., demands, '• ' Rules, 1973. '"v,<
• •I .
. Th.e:.¢01.llt $aid that "'Goverruncru: employees c.mnot hold · Q») Thm i.t J:f mtJNI/ ~Nitabl/ }nStifa,mq,r Ill 11,/ ,i,1 M ,
\'" sO<iet}'." to fll!150 ffl by goiag on ttri.ke". If the employees felt: - In ~ $Ociety wherettthcre ls 1:tr)~1..-sc1.lt. ·
l,~~- 'aggrieved 1/y any Government actioo, d,ey sbowd ,..J, ~ unemployment ~ ':i..ti\UDbcr of qual,i&;d pen,04!.
~ : , -~ the tul'l.ltOry m;iduocry provided under di£rercnt surutoryi arc ea,g:tti}' waiting fOr.anplpyment. striit Mtm01
.. ·. _~l provWOns. The ¢OU.rt uid strike M II weapCln is mostly misu'sed~- be jusli!ied on anY e~tabfe ground. . 11,.:,.•1-. " _ 1,:'
Por. rt:dteuing their gricvanccs,:ifilte:ta;i,r goiog on srtikc, i[~ ~
(/)
. ;~ , whidi results in cha0$ :'U.'ld t0tal m~dm.in.istnuion. The Colll't I: •
~
:, IE ref~ried ~o iu judgment in RaM9 S""9V1H1 Sb,;htt(,1 v Puin,,m,(; employeet do so.t:ne work honestly, aillgently Md e£l'1.C1c:ndy,...
:, •. Gt.11m1! Cmtml Ci,r/41 N ~whercin the Supreme Court had; s~ch g~sru.re would not only be aP.J2rc,tja.ted by the,:au.i.lioritx
(1) .• uk<n the v iew tlut • perus,I of An, 19(1)(,) sho,.·s that chere(' but also'. by people at large. T he ~on being, in a dc.nfu~ ;'
C. is'.lw fu.odimeoul right t·o ttrike. •~- • eve11 t.hougb they are Gove.rnme.ru: im~loyees, the"'y-~ part
. '
~
;:;:
:::,-
,If•· :'l 'he oow-t >,-,~ · ,, .•
1'.h.ciu'.J
(iJ T&ff is 110/11111h,:,m1"'1 rig}N hi §1..M dri/u - .,
.J
-and Parcel of governing body. an_d owe duty ,o the.$0Ci~. ,
ihe ooun: .1grcod with the ~ ation of the Gov~t !lif.
1

1 Counsel that the Go~nn'l¢0t wu.a~ l e to withcli::iW the · ,,.

()
Q) the trade unions Juve ii guiieuitb:l "'rigbi for
collective· b.i.rgaininj:'" on behalf Of emplo)'W, . dis:misul <>i-dcn again,= the la.rge Jl{ i~l" of emplo~~exce.pc--
3
(/) they have no fundamental rigbno strike. ·, · 11 6072 WhOS(' cues would be ~SOtvea"by a panel.0£ three ·, •
(") . ' ,,,.;,,;.iJudg,s. Tbe«>uttbopcdlliat rcinsu...d,mplojffl'would •
Q)
:, "take are in ful'IJ.n! in nuintai.oii,g
•
di.scipWc
•
...,J • •!\
:,
(1)
~

Labour L:)w • f
A Constirutioa Bench of tbe Supr('ffle Court in flarish UPJMilv UOI
(Al'.R 2003 SC 739); catcgoricallr pron0-1.1nced tb:it the lawyets hlt.d no
right to go on stl'ib or g.ive ~ caD for bo}'cott, not even ~ tOkcn strike.
Stui.ng)n elev terms that any interfen:nc:c from anybody o r auth()rrt,y
in 1l1e d:lily .1dm.inist.rat.ion of justice c:u:im>, be tolcnued aud that the·
court can ::ind will take d.isciplil):ary .1.ctioo a~r. an -advocate for non,
ilPJX:;ll:'i l~e by reason of a. call for strike/ boycott. It bli boeo $U&gested
that the Advocates can get redrC$$.1l of their gricv,1,n(ICS by pusi.ng
reso1~1ions, making rep~emations :1.nd taking out 1:ilet1t proct$$ions,
holding d_bm,flJ or to rerort ,o relay fast, having discussion by gi,'lJl&
T. V. int~.iews ,and press mtcrnenes.
Th~ coun CX>$c:ved th.u for ju.s.t or ua.ju.<n: c;:a.U$C, strike ClJU1<X: be
justified in the p:-esent-day siruation. The w eapon Qf nrike, in any fieM,
docs more harm th~ any justice. Sufferer is the society . public at
large. The•court further laid, "Law" is /IOI-a tr<l.de and ,,.briefs" of the
fa~.uu are n ot metclm1dise. 'I'he b:u- is not a ~rivntc guild like that of
barbert,J,w.chCl'$ and c:~csuck makffl, but by bold contr.ut, a public
~sti~tion co~'Litted t.o pu~li~ just~ ~nd sc:"fc:e. An advocate stands
ma ~pmmli./ 1ow.uds the hwgants, ut rehtiop to them, he occupies
:t pt»1t1on o! rrust. i for their r lghu. T he right to demonruate and , t herdore, th·c
T ~e court ;,,d4.ed; T he coun. ~y, ho4cver, jgnore "proh!tt
abncnuon from work by lawyers for ◊llC dayi in r.aren of rare cases;
where the dig.o.il}', integrity wd indcpendenet:! of the B~r and/or the
Beneh are at suke. ~ a fundweo.tal right, it is recognized as a mock of re<.UU,$ for
Right to scrtke: A Morie of R~drttn for Res~fvi1 Worker'.s- Grievances
, Lo.t>1HG CASt: 8,ft. SINGH v UHIONiOF INOlA
[(1989) 4 SCC· 710) '.
[~e r~ght r~ dcmonnr:;ite and, thtteforc, ,the right to
strike u .w tmport:ant wc:spon in the armoury of the
workers. n,ough d.M: right to strike or right to dem.00$lratc
is no1 a fundamental right. it is r«ogniied as a mode of
redress for resolviog the gricvaoc:es of ~c worken.]
In thti case, cc-nain actions t3ken by the offu:er1 of the Trade
P;iir· ~uthority of India in excr<:isc of thtir dLS(:iplinary
·-- ·-- ~
(I)
C
C
Trade Unions : ~V-0Ju.tioo and Growth 21
"'
<)
(/)
jurisdiction whereby ~ iervi«s of cen a.io regular worktne.n~
-.,bo .rw,icipat·c d in the strike. have beeo ~ and gveral E
casual or daily rat"ed: workers .are rcockrcd jobk», have been "'
(.)
clulleng<d. • ~
It WO$ held that the fundamenw right to /onn associatioo., .<::::
;::
and unioo, {Art, !9(1)(c) of the Constitution] an<! provide for 'O
!heir ng;,U>tion r,;.c_ 8, T,..le Unms Ac,).,.. =og,,iz,d for (I)
conferring certain rights on tr.lde unions. Tbe neocs:sity to fonn C
C
unions 1$ obviously for voicing the demands and grievances of
W,pur. Tnde unioni.$u act u moutbpi~ of labour. ~
(/)
~ stn'ngdl of a tnde union depend$ on iu mcmbenhip.
Therefore, trade unions with sufficient membtnhip ruengtb
are able to bargain more effecth•eJy with the managemen ts.
This barga.i.aiag pow~r would be eonsider:ibly reduced ifit iJ
11olpnminul t11 J<mqs,shrz!t. St.rikc in a given rituatioo is o!Lly a
form of demon$l.nuion. T here are diffe.rent tnodei of
·detn¢nscra.lion$ e.g. g0o$l6w. $it•i.o, work-t~ rule. absenteeism,
etc. and strike is one such m~ of demonnrat.io~ by workers
rig.ht to st.rilce it Ul important weapon in the ll.l'mOury of the
worms.
Though the right to strike or rig.ht t◊ ~monttnte is mt
resolving the gri.cv,uices of the worken. T b.ougb this ngb': ~
been recpgniied by almost all democratic cowruics but it i.s Mf
a.n absolute rigbt. C-ertaul «:Stri~om have.been plaoed upon ii-
under the Industrial Disputes A<t, 1947. These are to be fow,d
in Secs. 10(3), IOA(4A), 22 and 23 o f the Industrial Disputes
Aet, 1947. Sec. 10(3) empo""•eJ'$ the A ppropl'.Utc Go..~cmment
c.o prohibit tht- continuance of a nri.ke if it is in 4;onoecc.ion
with a dispute rcferrtd to one of the fora created under the
said ,unne. Sec. t0A.(4A), Wafers similar power on the
Appropriatt Gm'Crtlfllent where the indunria! dispute which is
th, e.use of I.be s1rikc is rd.rrcd to Arbitration aod a notilic,tioo
in tb~t behill is issued under Sec. lO(JA).
 r n

f ~
72 o.
The _coµ.n ~ obse~ The interest ,oJ the i.~cfo1
m~.lfe par.unoUDt to all concerned i.ocludini 'the workmen.
AM.lT-860.1•00
•
Q
ll

At tb.e hm.e time, the oowu ctiuloc be oblivious to the «oMcmcr

ruudship<f.aced by labou,. ~ tlw case. btth th, puties ttilaed f 3'~~··
..• . ~:
to the ten~e 1tmotph ere _that built up over a period of cime:1
The f...cts fouod by the Labour Cc:,u.rt d e.u:ly sho.,..• that w~~~
. ~.' ~ • " ,.
Trade U,nlon: Defln!tion Reg1stfa~lon 0
die labour was £rust.rued :u its demands w~r~-out$tandini
!~c~ _lon.t'a_ad they were imd.ing ~t,_diffi_cult ~o combat ~~J i a Recognition f

iiulat.100 without a.o vpwa.rd revision m wAge:,, etc., the!

I ; Q
~ t w a s wonied about T~l¼.ir Authority of Indla's '!

ttpuCat,:ion likely to be Jowercd in rh~ ~ of vi$iting d i ~ I .tr 1q 0

'because o f oert,ii:I events that were· happening d1.1e to tbC j'.- ~ inttlon of Trade Union' •.,
1
'
t '-'{orkcr'$·ilgiwiop.. ·. . . r A'Muwo~' (B~Eogt;,1, - ~ ~nand~o"'l'.J"'
'
In tb.e$ecircumsranccs the Supi;eme ~ fourul it unwise"·
·and futiJ, t0 cmb,rn upon a lawt finding ~iSMQtL Thus, keep1?f 1
wod),J.~uruoox~ - ~~!.~- ~£ntlioh)
is 8.':' orgaruzn1on of.workers._ ~.Jto h~ e..t~~c.:ed t?g~_ij1 ~rto ~b.l~'?C
·.-~,
0
the iatcrcst of the inniruti.on in mind and bcariii& Ul mind th.e ~ chnimoh goals such as p.rotecnng ihl mtcg;r1c.:-y of us uadc, aclucvwg
eco!lo.aiie hardships th2t che laboJr would so.Her if ~e" t
impugi:ied Ord.cl"$ are not :sei: ~•de, 'the Apex.Court thought 1~
~~~le {o restore the ~ce by direetlrli tbe .rei.nmteU3eftt of;
{(
WAA"" pay, inacasing the numhei 6f empfoye,s a n ~ ~ i')d •
l::ietter v.•orking oonditioils. · 1 J
T~ 18th oenrury oconomisi--.A'cilm Smith noced ~e~imb_~ in
:if t.lie worken. P ,. the rights of workers in tt~raii to o'"w~ers (or ~~teri'),. ln TIM G
ri7'..,-bb: ef N,zdo,u, Book I. c.haptc-r ~Smfib w-rote: ..We rattly licarr,it
,,-f h\s b~Cn said. of the oombinatibn'Ot 'rn:1.«ers, thoU~ !?i:queJldy ◊r'
those 0£ work.men. But v.•hoever ,imagine,) upon t.b1t'~ccount, 1,h.1t. -~
r m.ukri r.i.rcl-y combine, is tt igno,_r:mr-of):he world·~ of th~ subject:. Q
(/)
0
Q)
,1·. Masttrs are alw:ays rutd everywh~e ~ :t"~" -or u.cit, _bUt'conscant a.n~V '
:,
:, • uniform combination, not -t or~ the.wages of l~l?ou.Sa~ove ~ M cu-
acrual t:1te, When worken corobint', m:.uten .•• never tea.st totalllloud • G
(1)
C.
~ •
1 ~
for l1he tiM•~ee: of the civil ~\rat~..•~ «.be rigo~~ e~cio~ of
those bWS which bave been e~cf:"'th $0 much seve~ty ~.thc-
com.bination of scrvailts, b 60UJ'fflfffl~ j 0Urneymen.•~ .., ~ ._
;:;: ,. p , \· ...
:::T
() ~
Q) f
3 !
(/)
0 '·
Q) • I~

:, •
:,
(I)
~

2A
A moi:lern dcfw.i.tjon by the AusrnJia.11 Bureau of Stia;t.istics sw~
that a tnide union is '"11n organi.z;i.Lic,o consisting predomina.ndy of
employees; thc prin,;ipal 11cl·.ivilic$ of whkh include the negotiation of
r.1tcs of p:a.y ~md condilions of employment for it.$ member,."
ln shoM:, :a •Tntde Union• is an organ~tion ~ hosemembenbip
consisu of workct'S and union k-ade,ri, united to prot«t and promoic-
thcir .;.ori-unon imcrcst:1. Tr11.de unions may be composed of
individualworke~ profes,ionals, p:m workers, stud.."'nt~ appret1~ md/
or the unemployed. 2
In lndi.t, to bea "frade Union, the Uoion i.n que&tion must utdy
d1e require.m('nts of Sec. 2(h) o f ~he Tr-.idt Union Act. T he Act has
defined the J"rade Union in the mott compreheo;ivc term.s. "Trade
Union m eans any com.biJlnion, whetha tempon.ry o r permanent,
formod pri.nw-,i,ly for the purpose of (a) reg,ubting the rel11cion.s bcnvecn
employe, Riid workmen o r between workmen ;,,," n or between
cmployett !',mr .se, or (b) for imposiog rt.strictive condirioJ\$ on the
conduct of ;m y erade or business and inch;~ any federation of two
or mol'e U.r)jons,..
Provided that this Act shall JW/ affect:
(i) Any ;tgrec:me.nt between part.ttcr~'1S to thf:ir own business;
(µ) AnY, agretment berw~n a.n employ er and those employed. by
b.im :a, ,o such et'nployment; or i
(im AnY .l.gtotmertt in ooruider:a\ion of tlte saJf. of the goodwill of
a busU~ or of instruction in any professionJ tndeor handicnfi.
S~~ 2(&) reads;: "'Workmen" meant a.lJ pcr$0ns e.n,ployod in trade or
industry "whether o r nor in t-he- e-mployment of it.e emp-lo)·er with
whom the trade di.spute :1.rises, .. Because o( the <;fords •whethi!r or
nor...,ari.scs..., the tcOpe of the word 'Workmen.1 is ,·f?ry w-ide under the
Tr.ide Union Act, i.n CQmparison to the Indwn--i~ O~utcs A~t. 19➔7.
However, the scope of the word 'industry' is very wide ur\cf~r the
lnd\lstria.l Oisputet A.c.,. In. f~. the ,..,ord,s 't.-..dc' or 'indu$lry' have ,w
l>een defined in the Jr;ade Union Act, 1926. · & Dtp,,!)' f,.g/ltnuef T,.,,, u~.,,
1. nttp://61,oM,oam.'wikVT'r•ao_ urAM'.i'let1; =en
hl~il!IM'Wbutinit:.s-1:Gcr;o,,,.,ry.,com.'c!•l'il'lllit)lll!1l1d0-.Ul'l'Ql'l,J\lrnl#ixu3fM11aloki
~
(I)
C
C
Trade Unions: Definition Registration & Re-cognition 25
. "'
<)
(/)
Tb~ Indian Trade. Utuon;. :A.ct U b ~ on the ckfinition of the
British unions Aa. with a ~tttial difftrtnc.e Ulat the Indian Ac.t ti.Se$ E
the word 'combination• whefeas tb'e word used in~ Br!-tish Act i$ "'
(.)
•Woci::nion'; the word •COmbimtion• is ,i;,~r in implication and un~ ~
.<::::
The Act applies to every establishment which is a factory mgigtd ;::
i.n an ind-uwy specified in Schedule I and in wh.ieh 20 or more persons
'O
ue employed. The gove.r.nmeot servants ca.nnot form a tn~ ~on (I)
C
uoder the Trade Un.ioru Act. 1926. Thus. evuy trade unwn u an
C
usociation but every association is not a rradt uaion.
'Trade'~ gcncnlly sp<aki,,g, any gainful occup,tion. The ~
(/)
word 'industry' U to be undentood in the sense of ;a eommereJaJ
undertaking. Any one Crom a dunma.n to a bilhJy ,killed P'?fessionaJ
worker smy csn:er iaW a COllU'Kt i.a rcStraiot of trade mtnctlng the
manner in which he Can 'e arn a li\'Ulg. Th~ word 'i.mpo.se' (in tbc
expression. •impo,iug restrictive conditions on the co_nduct of ~a~/
business') cowtot.es an a.grcement a.nd not <;ompul1,1on. Rcn.nc.uvc
: conditions "{ould mean to enter into a contract in ren ra.int of tr-de
I l'ffl.ficti.og the ttWltler in which o~ can ~ a ~ving. ~~ regula~n of
relations in employment would amount to unpO$U'l£ restnCtl'Ve ¢Ol."ldmons.
RigulatioD of employment, bowcver, i.s to be treated.separately from
I ttsrricUve' oonditiom oo the conduct of tn.de or busuicss.
Persons belonging to a .number of trades or to o~ trade _at ~
may e<>nititute ~ tn1de union. The.re may be a tra~ union wh1cb is
composed neither of workman oor masters, a~tboug.h lt may be a
combiruation to regulat,c the rdaciotu: between ..,orkmet1 and workmen
o r workmen ud mastcn. A ,mi~ m'[J tOJUist boll, of ll'O'f'Ut,r Olld ,mploym.
The tC$t of the trade- union is iu objects- and not itS composicton. T be
cmph.sis in Sec. 2(h) is on the purpos, for which the Union is form,d
~d rtOt so much on the pc.r1.oos who constitute the U nion (Hardd ¢'
La., Lid. v Chi/14, (1928) I KB 663i
In G: T.R. T.CS. O" Ojfit1rs' Al(tn., ~VJn v Ant. L,bo,,r Com•r.
8"•~'"' Dm I, (2002) n_LLJ JJS
(K.unt), the respon(knt a~tbority refused to register the peunoner a.s
trade union on the g,oun~ that the applicants wtre not .workmen
within the meaning 0£ Sec. 2(s), 1.D. Act, 19◄7. The Migh Courc
obgrved tbot a.s per Sec." 2,(g) of the Trade Unions Act, 1926, the
 r !i

I
f ~ '
~J
Labou, Law .. l '1 ', :·• • ,'
0
j1rr{f'"il~r~,. i n ~ :tl1 pe~ns e~ployed_in a trnck or indU$f;Of~ ' lllustrations/Casei
_,;\

g-'-;~ · ·,
-
Tr.idc Unions: Definition .Rcgis~atfou & . J\,~co3n1don ~Zl
~
-
.,
k ~,r.f,a rcstnaed defi11.1,uon .u 1.Q. any o~er Labour _Law en~~
• f
An associatio.n qf a.tithor$ :a.nc!__pro},',;4'cors
"t-'-'
of :1. dr~
,f.:. <
rk worll. the
::,,,._ O.'
The ~phuis was on the p~ for wh1ch !h e. uruou '\\' a$ forrp.ed primary object qr 1
which WU t6 ~quire' -!,-Dd de.I with"tbc lnt~~u·~(
.and'ho" t SO much on the persons who coMLit:u.1.ed it, '. 0

..
-,~k :>';\ ;,_•~ •

q rA.~ on ,:wi!_h 3. view to profit and involves excllapges oi g09ds

scryices-ot·goods for money.
',
,. 1n·A_foh.z.- Gy-mJ.MfltJ C!Jib E.mpfit>'ta' U11"1N v.C,,d.bd,:,a (?1'h (A~
196~,Sc Ss-t). it was held that the ~·ord 'tr.tde' tneans any,bW~ $i

i
rot
its mcmbcrt i.Q their works ·.i:e. l'o enfOi-ce the' ri.gb.tS,..of memben put
n~t ~ impq.ie .r$tricdve eondi~~tJ.~n~¥ie oond~ ~hhdt bus~esf
· was !idd not t~ be TN:_de Um.o n
n.,,,,, efV.,,,,lit(1924) AC I).~,, , .,
Jtw"ffllfi~
Ri,tbt t~!t v
·t"J, . •. ,: .
,~A
' 0'
(jj
LtAolMG CAsJ: RANGASWAMr v RtCISTRAR. OF' TRADIE UNION ,,_
•. 11 !I (AIR' 1962 'Mad 2Jt ) • ' ;:
Tish, ~~ o : t"mine whether • Union' i.s T~de Unfon3 jµ, ,
@)
@ It,i$ die principal ~,of a combination which detec~es. [It was he14 th:at :a largc.-nun:iber of emplo)'"ec; "At 'IU:j
; Whee~ the combin:1.cion tS :a. T~.ade Union or noL The obJect>r B\1-awan :a(q Govcrnrnen.t servants who coulct not.fomi i
~ust be one oonnea-cd "'ith the. regulation oi rdation.t ben,.•ecn. theinselvcs fo <2 tr-adc·union.;fu..rthe:r, they coidif not be. · · I
wo;kmen a.a.d employer. etc, Ot' impo$ition of restrictive sa(d to be c-mp.loyed in a t.!"?4c or, busine,s ·cat'rt"td oa .bx _
,. coodicio.ns on the collduet. o( trade.or bminess of iu mcnibhs. ~ employer. Tht': St':l'Yic:es1rcndcNcl by them w e n ~ · ~
,(ii} However, a union of any penon-s will n o; become·a T1de
of' a. pcrson:al natutt; 'U'.ldu~·.sbould be ope a,- Woti.ld ~ "
amount to 2 tradt or buri..otss i.e. a c:omme.reial '
tl n inn Jf ttit-y h:i.ve t h e 2bove _mel\1ioned obj ects. It U alic>
nci;em.ry th.;1.t ~ wmb.i.a.ac.i.on. be fonued ei!1>tc of 'wor~
or.of 'em.ployen', i.e.. the ptnoN2re eqwlly unporurlt, besic:ki ;
•~
UDdcmlklog,l ,, l
'
. '
In this cue, rhc employees of~)ta; Bhavan, which i.nclucud
.
r' .
'

the object. The membet$ o( a Trade Union must l;,e •wo~n• :unohg its members :h~ house!ii;ttsiaff, pe,o!'s,fhufftun, :.
of the employer cog:1.ged in tbe conduct of .itt)' trade or tailors, ,;.upcntcrs, mucrics; ~pe~. sweepe~;!!<=formed 1
busui,u in • conuncrcial Wldoukiog. och,.,,.ise th, defusi~
1 ~ - c s U1toa unioncalkdtlieMai:lr:L, Raj Bhavan :Worker's
in, Scc.2(g) and 2(h) could not apply to them and they could · tJnioo..But the Registrar rdusied tegirtr.ltion underthe Aet On
t19t r:ti$e 11. "'trade dispute,. qor form a ~n.de union". lo ord~r. the grouod thar the: em.ploy:t:$ were D.Ot workmen t'2'~ in'
(/)
to attnct the provisions of the Ar:t both tbecoodirions, n,untJ:y. :any' indUs.tcy, ~ ~ i n « , o~ ihe t.tnployer. · ~ · ,.,.
0
Q)
:, !'!"orluoen • engaged or •tnde or business· roust be fulfille4, Of
h wa, c;ontendod on bchuf the petitioners tbu.the•
:, tt.rm "work.me..n,. under the Tocle'l::Jniom Act wg&d'in.dudc·;
!,
(1)
one ~yed in indusuy. The"'demuiion of the t<nh'ind""rr' ~
C.
~
;:;:
,. l,~ O!S.Cus.s .th•· Prll'lelot.s
u11f0t1s :Act.
l lld down by,~ COUIU to d.tennlne. wti~tM (,!~
~!' au.celatlon of Offl,PIO'YM', ii • trade, union or not 11nd•t See. 2(h) of d-.e, 1'N<tt
· j(.;C.!l:nJ
given in the Industrial Di.spUtc:s 1\'"ct.ffiould be :icJSpttd for
,.;isotrta.io.ing ia me:r.ning; as'bodi the eJUctme-nts l'elat«I rii'IU
~ subj ea, viz. the bcucrmcttt~o{ the condicio.tl$ of laboµi:
.
:::T
()
Q)
~f"li:c, ~t\ tor a Tnd& Unkln Is b obl•CC. and not Its l)Crson,...1, 1M U.t d'tes
nc\ ~Y. thtl perisons 'Atlo are not. 'WO~~n• h an 'indu111y'.~ fo,m' a Tnld..
unaon st ar_Exlfl'IIM tM abOYa sf.11tement ,n. the Ugh'! of c-. 1, w,
in the country. The = •~ wliich is dcf""'4,10 lhd~ ~
an uiulcrt:aJcio.g would be co~rchenfo'e C.P.ough to c;oie, the ~ ·
3 •" ' [C,t.C.-~2) c:u~ c.>f employees like those:,en~gcd in servi~ ai the R,aj ·,
(/)
0 · ~~t ~ dNire cl !ht membeft r.ct r~•lfof'I or a.,y cthet formidfy ~ "" B~avan wh o sy.stcr:oacieilly do ,marcria.1 ~ for. the bcoefu
Q) • ~M:'tle ptindi:ial objDCCJ otthe corrtliiialion ii tf'I• cnty t••t to tscerlaln • • to'wti.t~r :;. ~ ~ ~·
:, Che,¢0mtlll'lll1ion 11 ~ 1111(19 ~!Von or ,r,.ot1 (C.L:C.-931,s;I
:, I
(1)
~
• I,,
 ~
(I)
C
C
18 Labo u r La w - I Trade Union$: OeflnJtfo n Registration & Recogn ition 29
of rtot merely the members of ~he Governor's household bur common with the employees w it.h tbe definite
"'
<)
(/)
also 10 visitors .and guestS as well. objective of the :a.cb.ievement of the material =i.eeds E
T be 'C.Ourt lH1.r~ :land hthl•s fuUows: o f h wna.ni~ .ind that in aJl ~ manner. "'
(.)
{I) Sec. 2(g) of Tr.ade Union$ Act defines •workmen' fu \he present c:asc, i~~ be said th.a.t there was co-opuation ~
between the CWf>loyer and the employees for .\he purpose of .<::::
as all persons employed in tr.itle or indw"lry. The ;::
term ' trade uii.ion>, under Sec. 2(h), coate mplitl:<:$ a trade o r b ~ . The ~ rendered by the employee$ of
lu,j Bhavan wtte of ,a pm~fllJ! aawre $inct the employer ~li ,::,
the exiuenoe o f the employer .ind the employee (I)
engagocl in the conduet o f a tude or business, .not cu-rying o .u uiy trade or business. A merep mr,/fdk:~lcc C
Reading these two sccrion$ togeth er. 'industry' however much it rrught b.,.., b.en org;,ni,cd wowdnot pocsibly C

s.hould be one as would amow:it ,o a ~ de or be ao UDdenaking Within 4.he meaning of the Act. The order ~
(/)
busine.s¥ i.e. a commm:hl undertaking:. 0 £the Registrar of Trade U nioo.s rejecting the application of
the petitioner is. therefore. correct.
(u) T he t.erm 'industry• as defined under Sec. 2(j) o{
the lndU$trial D isputes Act, js o{ --.-ider im.pon [Non: Similuly, p Cl"$0JU employed in Palace adminittratio.o.,
("aoy bwi.oess, tr3de, \1n.de.rulu.og. manu!~rc or Bo,nl Ho,piw, mcmbes> club, and don,.,cic servm1> employed
calliag of empJoyers and includes any calling. by private individuals have been held as •OI workmen.]
· ~ cn,plO)'lXl¢1lt, ttc.). Thus, a noo-oommerciaJ ltAn!MG C...SC; HON•GAZEntD GOVT. OFFICER' S UHIOH v
· unden~ g will COmt! within the scope of that REGISTRAR OF TIU.DE UN IONS◄
e n;'lc.tment. However, the object of lndustri.1111 C.4.IR 1962 Mad 23"4)
. Di~putei Act rt to secure industriaJ pea.cC: and d1e
· object of the T nde Unioru Act i$ to ~euder lawful [The dvil k rvants. engaged in the tatk of sovereign and
the org.\ll.LUtion of Jabour and to cnaj)ie collccti\'C regal aspects of the State arc not 'workmen• Within the
lwga.i.ning. The btnefi.t; oonfern,d b}•ihe T.U. Act meaning of the Act . Government 1CTYant1 cannot form
a Trade U11ion.] ·
arc to be e njoyed by a cle.irly deline4 category of
. Wlioos. i In tbjs cue, the Tamil Nadu Non-Cneued G ovt. Officer's
T hus, i.t ~ dO\lblfu.1 whe,bcr the L-wo ~ ctS Cao ~f re:i.d ~s pan' Union fmduding amongst its members tub-magistrates.
T eb1ilcbn., su~T rcuuries, and Home Department) Wii a service
llS(J/tria (i.e. as fornung <.» le sys1em.-a.nd mterpretmg onc w rhe
light of"an~thcr). The defutitioo of 'industry' in t~c fndu.strw org.tnis:atWn which bas bee-n reeogni~ by the ~o~ern.tne.nt
Disputes Act should It(); be U.fed Ul .interpreting t ~ provisions and its membership wu open as per 1~ con1u tut1on to all
of the T~e Uniont Act. { Non•Gazcued G o vt. Ofliccrs emplo yed under the
!
(iiv, Two distinctive features o f an ~ u.,t.ry arc: (a) the
· employer as well .is the employee~ $hould be •
engaged in the industry, and (b) thc re·should ~
~perarjon bee-ween both of thei:n fo~ ach ieving
th e particular r esv.h. F un:hcr, there cari b.e nQ
indurtxy wlui:re t.bc crnploycr is not engagtd. in•
 -'
1
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~k

•• r I . ~t ~.r _, ,.,.
Labou r Law - r Trade Uiiioil.s: Definition Rcgfslr,a tion &. ·R~COgniliOn ' CD
i •t•r.{l• H · -jl
. . ~ F
~

, Go'vernmenr of Madras. It appJiecf'for regtn.ri:u.ion 1.1.n<k.r the r -' ~fr<crtain w#oiF,'<ducatiorull or m1dionlivc
rtments of G~~~t might or ~toot.
' ·
0
T ~ Unions Aet. Tbe fu:gi3tT:U" r&u::scd registration on rhe
~<;>Utt~ t~~ su~ a.n Associ.uion of mirlinerial empJoy.ccs of
flk Adnµnutnuve D er,ut.mem:s of Govt. Of-fi«s could not
b. reg_irded as Hi~e ~ cidusion; the ei;nplojecs
~ those.· depaiuUcnta llUght or m'~C, not be ·
_1
q•
. rdguded a$ '""';orkmeo."' i.Dan ..indunQ'j.
C~~im. to'l,"·a Trade Unior1 at :111. cl.

· · The M.aclr-u High (;ourl Also held dut Government ~

'
! .,,... '<iM • •
(r0 111<: concept o( :~ geccit-e bargaini.dg_',' which i!
tlie rationale behUid the,l'rade Un.ion -nioven\etlt;
,~

- "l<
e
~ .antt eu_11• form a Trade Union. h held thai: the very s;crms ' ,
i..slwholly inappropriate to Govt:rnme!lt"Se~ts
o( Sec. 8 are that ihe Registrar has fo ff'Gis~r the union "'On ! ,
~c~ng Satl$~ed that W Tr.ade Union has complied with aft the , wpo,e terms a.D:,4 ~<mditiq~ o( emplo}'men'\ att
10
~=~•,
~C[U.i.rements of this-Act."' This $00W$ that whctt the defirutiiom
under Sees. 2(g) and 2(h) are dlem,el.,. inap~lc tQ the so-

The Co\ll't #bsmv4 and h,IJ as follow$:

1
the Regis,,., bu ""'Y po\,,1' ,o d«line

1,
I
cl/• .. t
re;gulared by Slat\!lt, m?, it is obvious that:statute
~ot b e ~ ~Y, c?)ir:Act. T hus, gq~•crmncpt
tetvant, d? not ~ v~ tt,€,dom of <:OJ!rract,
(v) Funl=, it would],e".0'110 • g,-o<e,qu< anbmoJy th«
jf civil services,•fo.r;-instancc. were permitted to
...

~
-'

~
'$

>@. ne crva u:rvants engaged id the wlc of$overcign t
and rep! a.spe(t$ of th¢ State are not ~work.men' f:
wttbin the mca.o.ing of th~'Act. HowCVCrWidc the t
term "t.rllde• i:niihr be, the.Supreme Caurt h;, f
~pproved of the dictUm that tb.0$C' activities .of
tbe Go\l'crnmcnt which ~ould. be Proper1}· :
d~cribed :u le~I or $ovcrcJgn activities 9/'el'.'e ~
Oul:$idc the scope of .~io..du~ry;":. ·rhC!)c an 1
·functions which a cooscirutiortal ~ n t c a n
(/) and must u~dertake for ioVertlanc¢. uid wh.icli
~ no private citi.ten ca.n lµlc:kmkc '5'taY ef,&mN!fv
:, H,tpital ,'1,,~d,,r Sa!,&,AJJ<.'1960 SC 610). R;pJ
:,
functiom are inescapcable a.nd "inalien;iblc, Such are
(1)
·•
C. t'he legislative power, the administration. oflaws-
~ thccxcrcise o(judici;t( power (,N~U~. v J~ ·1;
;:;: , E,.pl~,,, AIR 1960 SC::: 6/'5).
:::,-
() (~ ~oo.,ever, in~epe~denr co.~f,1,tions (q~si-
Q)
I
raise a ~race dis_put~ :witli re:gard to ili~ dismiMsl
of a. ci~ Soerv.\Ot ic nu.y be for the acti--:ifiu ~•r.
0,
•hi!' $f:11t.i1! it:i;l!lf, 9M ~t,. ~ ~~ h ~ t~ d-,Jm, th:tt
U)< con$titutional ~ - Art. 311, whc
'' ·o
ue wholly in-elev:mt JO the field of ooni:r2Ct aod ro
"
§ tbeeaiployer-laboui DC"XU.s,. lh ould be~taiocd Q
inw;r for tbe !:,eqefit o.h he ci,,iJ rc:rvi~..
' .
(vt) Another .rea.501l wby gQ"\.-ernmen.t ae~t$ ~~ 0
form Tnde Vnioo " ·<l>" S.C. 22 of
illows perme2tion Dr ouuiden and~ 16 alJo~.
llii>·1/· "e< ; C•
participation in politlSilactivities, bot.b.:of wliid/ ~
are not ttlevanno govcrnmenc se.rv-an~f . ,. \cl)
In "fvuJ/1'!11' ofTradt U1rio11P v Mi'iir:1vt1Jt:d (AlR 196)·Cal 56),
ii w~ held that the Trade Union of CfDPloyc,cs o!Emplo~•s- 0
St-atc 1ruurance Corporation can get regi..-untlo-.n under the .'\et.·
In .&;ginnlr, Tradt UniMJ v 1\f. l;farinv:tnr1 [1947 Lab IC 69,5,
(Kut1,t}, the My.sore Stat1: Employees' Provident -Fund
IQ
,l
EmpJ~ Union was hd d tO be-:,, trade un.ioo Q$ ~ o&ivtty·

3
govemmc11tal agco"""J orsub,;dii«I nndertalcinp,
whlch. are. purely indu.,tnJ m·tbara«tt, would be of thc.Pl;ovident Fu:id ~ t i on is 'i.ndusuy: .~ ,.. , e
(/)
il,duruw ~ e.g. M•• Tool Factory, Similarly, employees w~ kuig. in a Govcr~ n t ·P ress -
(")
Q)
:,
lruW'21)(:re Corporations, ccc. ca,:-ryio_g on bU$i.oCU of pri.nti.ng li~ve bee.o hdd a$· ~j ~ n 6
:,
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~
' . ' ·J

32 Labour t.aw - l
.1nd :allowed t(> get thei:r uni ort rcgist:cr~d oo the (;row1d th;i.1;
prin ti.hg press is an indu$try (R«,'11.,~, of Tnu!i UmAits v C ,1111.
Pm, Emp!,r-,wt URW,r, P<md#hury, 1916 Ub. r.c.280) (d.iscuued
...,j.
l c.,,oll«; 4,sa; REGISTit.AR C F TRADE U HJOHS V GOVERNMENT PRESS
EMPLOYEES UNION, PONDICt+f.RRY
[ 19 76 Lab IC 280 {Madt)
ln th.is c:ase, Ule issUt' was whether the workmen reprttcntcd
by the G oven\tl'.l,Cm Press Emplo~• Union, Pondicherry, arc
persons cmpl oyb:f in •cOOc" or ,.U'ldunry"?
·The Rtgi.strar refused n-ginntion on dtc ground lb.at the
function$ o f lhe aforesaid Preu do not come wiihin the
·rhe
mcllll.ing: of trade or bus:iaess.. employees in the Government.
P rcu beii1g Governm~nt serv:mt:s were dis.eutided t() form a
trade union 2.nd therefore. their •U$ociation was ineligible for
~r.i.lion.
'fLe High Coun hcli tlu1 die workmen employed in an
1nd\1$tl'W.unde.naku;tg like the Covenm:i,em; Press,. Pon&::hcrry
arc 'workmen• entitled to the ben efits o f Trade Unio n Act,
19'26. kwasheld t.h,.it it is wrong lO interpret the v.•ord ·mctu.:;i.ry
used in t he Ac.t o f 1926 in the light o f rhe widely ~ended.
meaning to it by the 1.ndustrw Disputes Act,.1947. According
ro the Concise Oiao..J Diaiona,y, 'iud~,try' ~ ( I ) ~
(2) h:1bit\l~ ~mployment in U$eful works, (J) ~Nncli of •t ndc'
or 'manufucture.• ! caoccUatio1i of the rcgistratiotl of the $ ~ U nion. Toe Registrar
'M-:i.nof.tcture,' according co the same 4e1:ion;1,ry .means
"'nuking o! arricles by ph}'-;si.00. Jabour o r nucpincry cspeci~y
on l;a,rge scales; bt'. iuch of sud, industry a, foollen, ere." It
wo..Jd be dear fro m lb.is dicrioru.ry meaning of the words
·U1dU$tfy' and 'm:t.nufM::tW"C' that noi;:irofic motive ti neoes.sarily
involved in an indust:ry. There c.in be Jittl~ do\lbt tb:i.t ihc
Governmem Press has been rn~nufacturing!w itb the :aid of
printing press, ill wdl \\$ physical laboU;r,·andlou a barge sc.tle
such as·ch-"· I p2_pe.r$, e(c. It•
au.ans, g2zenes -.and c:a.lendJi.r-$,. budget
would. therefore, be an btdmto· w ith in the ltleaning qf the
~
(I)
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C
Trade U nions: Defini tfon Reglftration & Recog1.>ition 33 ·
Tnde Uoloo Ac~ 1926, ..d th, respondents being th, per,¢m
"'
<)
(/)
employed i.n .such :u1 indwt.ry mun be rightly regarded as E
· ' workmen' withUl t ~ mraninc of the Act. "'
(.)
It wu further held dut "\he only ttasomhte comtruaion ~
to put upon the ,~cral provisio,u o ( the T rade Un.ioa Aet, .<::::
1926 is dut -all workJne..n e.,nployed in any tNde or Uldu.nry, ;::
regard.less of th.e fact wh ~er the trade or indwtry is: being 'O
(I)
conducted by a Govern.rnent dr a private agency are e.ncitled C
co c ombine them$le'l'ves i.nto a trade uo.iou -and to get it C
r,gjsc,n,c!.• This oonclusioo,, -.,!ucl, con be independem:ly arrived
:it, is mRfarrrdby the Amffl.din.gA« of 1947, under which the
"'
<)
(/)
i.otc:rtion of tbe Parliament wu to bricg an indu$try carried on
by or under the authority of th, Cemnl Gov.mmem/Provinciai
Government or the Head of dl.c Ocputment. within the
proVUions of the Act of 1926 (Though this amendment has
ll'otcomc Ulco force yet).
WPIMG ust:: TIRUM.AU TtlWPATI OEVASTHANAM v
COMMR. Of 1..ABOUA
. 1199s s...,p. (31 sec 6SlJ
In this case.. the employees .working i.n Power and Water Works
W"tnp; of the appellant-~tha.na.m had applied for n:gistration
of their association under the Trade U nions Act, 1926 whlCh
application WM lll.lowed. Howewr, the appeilant-Devtith.ui.a.m
thereafter made an. appli.c;,,tion uncfe.r See. 10 of the Ac,, for
rr_,ta#II the appli<:ation,
The appdbnL contended that since the Water and PoweT
W iogs of the app,elhnt w ere n ot an indu.$try, no union of the
employees worklog in the.in could have -been regis tered as 2
Trade Uwon. TbeHigb Cowt found cha< they were a n ~
and thus the ce.rr.iflCatc gnntcd to the tJnioD wu not li:lble to
be c.n.ccll«i Tb, High Court held tbu <he penons .;,,ployed
in T .T. D.-lwwn, • public religious ir.stitu,Jo,,, ,dminisw-ed
under the AJ>. Cbaritabk and Hi:,du ~ " " " ln,tin,tioo ..d
Endowmenl Ac,, 19661 can regiv..er cltemselves into a T rade-
 1·

"'
~
,,. ' Labour La w • '.I
I ~.
Trade Oniods: Definition Re.Jti$t:ration &: Rec1>_.gnitipn. 3S
. ... , ~
0
t:t. • .
' U riipn. It w~s b eld tb2t thougli the ~ntial chara-ctu of
,I die clooti6n·~f the ~o~ ~n'ili: a;~t~ uni9n ....,· held·
i
.. , lAstltution .t$ religious, it h.u to ~rain ~.&-a} ~ emmeow.. Therefore, tho Ape,< Cour(d.ir<i:t,<i tbat cl«tioru to bo hek!
~ Su'ch: .a! l!lectricity and Water Depu:tmen.t to cue:r t0 the ~ under the t\lpavisib.o of the Reg~ r' Of~ ,o ffic~des~ted br ~ -
Ior ~at. p~$e £N('l'(t & t#'/1. .ILtiRiitij?.>B,,,plf!P,r U1:il)11 v JllrJ fA.DJ-, u')
of ~epilgrims: such departme.ms being ~lnchistiy.' 1

;i:.- ""'i ne ·suPrffllC Court bdd: It would be ~ppuent from rhe

(2006) 1b sec 4 1~J. • , • · • • t
• delinltiori of "tnde uo.ion.. that anf group Of emp&oytCS: ~hf~t i < C)
Proc:•dll.re(Euontfal Conditions for Ft..tstratlon (~~-- +6, 22)~....
· ·c'o mcs together prim.uily for du:· p,urpt»e of regulating the
t_~ lati~ns_between them and tbeic employe~ or between th'e~ ~fore. a Unioo. ca.tL be gran~ed ~tt?,fi~n, ir i1 rectu.i¥ to comp_Q· QI}
With oett:a.in fonm:::ities:
I ind oth'er workmen may be regist:l!'ttd ·&Sa ttide union urid.CJ'.?
l ! ' .. '
the-Ab:. The t'Cgistration of the usociacioo.~ f the said wor~
ala~ union under the At.t bas hOlb.ing to do with wnediei-
@ It h:as to be ~ponsored by 'at le~s; 7 member$ ~§pgecLUl tbe
trade/indwtry in cono~~on t9 ;wb.icb trade unioa. is to be
e
Ji,
:;, ~ sa¥ wings of the appellant are UL in~uy or n.or. Tt)~i
die ~ ~rlunei:i ~ nwned-a.re enci~td tO's e! tbeir assoc~ci?d
formed C,n.sened by 200I;A~n dmcm) who ,my apply by·
liµng an appliC3cion 'for .ration to the Regisuu of Tradet ..... ·o
~.rttJJtti-echui der th'e Acx:. · 4 ., Unions of the Swe in ~•hkh the head office: Or regisreNCI:' r
· The Apex Court. however, ~sed no opinion on th~ Offioc of the Tndc Un fofi ii tQ & loat«l.AU.tbc membcrr. 0
applying for registration inun subscri~ their n.am~ to the·. f
fmlllng,< tt,CQrd,,:I by the 1-figb cow:' that tb<l ,.iop in ~ '
~ o! tne Tnde u~n 4 ~ .J.9«1mpt,.. w-ith tbe ~ .. Q
.., arc an md\l.Stry and kept the ouenu>n open.]
~ r
~ - ·•
Of the A« ttb.tillg to rtgis{.rt'!on"o!Un.ions (~C'. '.'). ~ -
A~~~See. i{l) hu bcctfi.rucrtcd,.by 2001 Amcndmeoh Provi&d • Ql
,;

REGISTRATION OF TRADE
. UNIONS
.' · ~ t ~o Trade Union of wotkmtl1.shall be rc~tu~,wiless tr-l~Ut:.
0 ~
., 10% Of' 100 o( the workmen, whiclievet IS less.. engaged(~ in r •
@
A T~ ~Uni?~ may_"/'~ '."P""«I, ~ a o~ ~-...i W~lifflment or~rywith~wl;ichit ~~e1f~.~ ~,
Tpd~
(/)
0

U ruoh! 'There 1s basic dimncuon berweeb these different \l.D.lOQS.. (I'he

DlC~ii of·a recognlsed Uld regi.surid T~e Union eJljoi :such,
of :s u~ Trade Union on t.h e d.ite ~of,Irtaiing of·ippficauo!'--!if~~
- ,. ;¾. .·o
~ bcncfiu as the tnem.btrs of 1.11 u.nregi.sured Union do ,not. -tt'he
...
:,
:, ~ti6o of a tnde union is JNJ! necessary. How~, upon~;~ s, Oitet.lM btfotltt lM ~owe klr ~ ~ of• Tr.cl• unlOI\~u~ t11e i,.~
0.
(1) 1 uic¥"\llUOb geu several benefits including some i.m.munibe¥ tlii~il'~ y ~ n•~ 1928. ;~~. ~· • ~r.~ (':,-C..M~ ,.
C. not '2vulable to 111 unregistered Tnde Union. · t I;: Wt.at _. the • • Mn\1111.,.qlitemeM• thM } Nd to bo oompl~ beiror• • C
~ .• "- Tlie ~Propriate·gove.mmc.nt ap~t1 ·aperlOn co be tlie·i.-J.--
Trac:lo Union oan bo ,-gltlltrtd UMe/ tfl'91't iide °TnsAct,;192elt , , . ..., ~
;:;: ..,. ~ . --i ' l' • "1·.r~-- ·. . I t'I or. ICiJ.~; t..C.M_,~~
:::T of r.ldf, 1'...... •
~,ons ,o~ each s.t~tc. Futtber, t~e app':°priatc g~':~ t Ja
Ar.~tn<tu,etiy ernpk))'ing 200 wonunen· tiiS tracs. ult>On y,l'llel'I )I; fllQit't.(iiMj 10
() may ap_pom1. a$ many a4diuonal ~d deputy Regisnan as ot ~~ fit •nd e.-.o· f'f<»Q:tlfHd b)' ttle e ~ , to, purpmt, c.r <»1-.C!iW; .,_l'O*iillltlo ;· r
~no.•
Q)

3
(/)
{$« "'.!),
1

, .'I'M R,gi=ar ~ th, authoruyclwg<d with the du<y of•dminf~riflg

r Chlo to
Ad.. 1_929. C•n mor•
witl'lil'I the tracle'1fflfon. • .break.• ft•Y Qroup co•l~ of
10 wor1<J'MJO fOmt • M l ul'.ilon ario s--..JlilQlstra'IIC>n uncl.,; tbe'.TrNI UniOtls ,
It!•" on& union ti& regi,Mred under ttie ~ · !
Q
() ihe p~O;i:slons 0£the Act. Hcnoe, the High ~ s order des~ ting · v,t;ilt: Soe Soc. ◄. Any 7 or mor•~ffl. ~~ m•y ipptr ~ ~llotl. Tii.i'>
Q)
::, the Ge~ Ma.o.aget; No:th Eastern Railway as the authority to told
!""'kmen cl an e·stabllsl'JTM111t can fo!"" .. IJ'.l8nY UnlOn• •• tnty iae., Trle
aoes l')(lf pron.bit me ,egittratlon of mere t~n one trade onion.) ~
•"•cf' 0
:,
(1)
~ l, a

36 Labour Law • I
(l.1) The 11.pplw:ltion for rcgistntion should be a~mp.Wed with a
copy of rules of rhe Tr.ide Union and a statement o f the
p.articufan like name of the U,ljon, iu head o!lice address;
na.nws, ocwp.1tion-' :..nd acklreSSC$ of membe.n nuking the
'.1ppl.ia.tion and of the office ~!'Cl'$ of Union (Sec. S). lf tht:
trade union h~ been in existence for more th.In 1 year,•
general ,ta.tement of its 1sse« -:md li:ibilitie5 lus ,o be given.
If m¢ re. Uu_n ball of the persons who applied fo r the rcgistr.:irion
cease t0 be members of the union or expressly d.i~te rbemselves
£com the a.pplicarion, tht- a.ppli~tion will be deemed. to be invalid.
(w} A tnde w.tion is not cncidcd to registration unless the executi.vt
diereot' is Constinued in 3.CCOrd:uicc witb the provisions of t11t
.A.Ct, and lhe rule, of the Union provide for t:he following
· matters (Sec. 6} - name "nd objcctS of Tr.lde Union; the •
p11cpo,-es for which the gener11l funds of the Union .shall be
.applicable; the. m;ai.ntcn:woc of a list of the memb,en of Union;
the- adrn.i~ion o£ ordinary and honorary member;; a minimom
mcmhcnhlp subscription of 25 ~ per month; the conditiom
Wlder whC a roembcc cm get the bc.ll"'Jiu or h~ tO JnY fines;
the ma.nner of the diisolut.i()n of T ndc Union, etc.
The written rules lr•,uned by the Tu.de Union au.king for the a.ho~
m:mers genenlly govern and determine the reluionship between the
Union ,uid ju members. They as a matter o( LI«. provide guideli.nes
for the interQ;t] rnanag<'mtnt of the Union offail'$,. Aocordi.ng to Sec. 6,
the rule$ of :1. trade union must provide for wJ1ole o( the objects for
which the u-tde 'Wli.on hu been cscabli.shcd.. I} h.&$ been hdd by the
Apex COun that the Coun bu no right-"to rc--write the rules of 11.
~teml trade union by deleting any of t.heu:1 ~ if that is repug,u.nc.y
betweenJhe two n.i.lC$ [1. T. C()Hfmiffl.Mtr, IP.8. vi,T11oiaMS,wrMi!iJA11M.
AIR 1975 SC 506). : w rq1$t.ra1.ion of Trade Unions has beetL complied whb by the body
I •
A Trade Union shall n-ot be entitled[() ~ation unless t.he rules
thereof provide for the following nuner: "t~e duration of period
be.ing not more tltM 3 yars., for which the: ➔be.rs of the cxccur.ivc
and otl:ier otfioe-beMers of the lrade Union ~hul be clecte.:. [Sc!~
6(hh), J111m1d by 2001 Amcadment]. Prior to jthe Amendment, d>e:
members of the executi.v~, etc;. were to bo apAoi,iuJ and not elec.t ed.
. '
i
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Trade Uniom;: t>cfinttion Registration & Recognition 37
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· (iv} P'o/)'Jrli~11 ef Offirt•J>ttn•m· to H Coumtd wit/; fi,f ~//$mt~ [Sec. 22
as -111/J.J!itut~d by 2001 Amendmein]: A, per Sa. 22(1J, at least E
hof o f the office beatt.ra of a trade union of worken of "'
(.)
unorganized sec.tor- mUSt be e:ng:aged or employa:i in ui. industry ~
to which the trade union is connected, .<::::
Provided tlut the :appropriitc Government may, by special Or general
;::
'O
ordec, dccla.re that tbe provisioM o f this s~ion shall no1 apply to -any (I)
Trade U n.ion or class of Ti.We, Unions specified in the order. Save aJ C
otherwise provided in suh1«-·(1), all ome~bc;arcn of a regi.nered
C
Tr~ Union, ,xupl not more'tlian on~tbi.r<I of the toul number, of ~
(/)
lhe offioe-bearen or five, whichever is less, sha!l be pcnons actually
mgag.ed or employed in the C$tablishment or industry with which the
T radc Union 1.$ ¢0nnee1ed [See. 22{2)], Exp!auh'o1J.- for the pwposes
of thi$ sub-section .m employee who h~ tttircd or h~ been retrenched
iliail 11()1 be co~cd u 011t,iMr for the purpose of holding ao office
in a T nade Union.6
No mcnikr of the Council of Ministers o r a person holding an
off~ of profit ( not being an cen gagcroc.nt or employment in an
establishment or industry with ""''rucb the Trade UWOD 4 ooa.nect«Q, in
the Union or a Sute, s~all be a member of the executive or other
offil»bca.rer of a regis;ercd Tnde Union(~ 22()))
(v) The workmen of a.q cat.a.bli.sb.mt.nt ca.n form. as ouoy U ~ns
as they like. There ~ nothi,,g i,, t!,e A" wt b,n the fonmt«>n
of rivals Uniom or iequires a Union app~ying for registn.tion
to give norice to all existing Unions (Kul»,vm ~'It" Workm'
u,;,. v J¼u...- AIR·1961 c.i s91i
Wh.en a Union see.ks registrition, all it has to do i& to cosucc that the
provisions of the. Aa. Rules and Rtgulations ma.de tbereuoder relating
of worke.rs :1.pplying for registration.
In BokAfa11 c.1111,,,, Co"P'~/( E111J>l6.>w.1' um,, v C1111t,,, urpmm~,,
njl11did (AIR 2004 SC 24S}'. held tba.t' membenhip of tbe union does
.
t.. C1n on out~be • ~ r of• Tndt UniOn?
(1-Nnt; Yn,I
 r o,I
~ I' ' ,,t... . ~
Trade Unions~ Definition Re~tr~lloJt & Re.c~gnltion
,.
39 ,..
•
(l)
• 36 a. Labollr Lal\• - I . • ,;1,:4'~ .
...., ~4~~~tic.#y C)!Ue upo.n tJ>nn.in~tio:° of the eroplo~cnt. Th~ is.
1
be regt$1'.er'ed only akr iuch altcNtiOn. Tb~ Rcpstrw i:iUy ~ ask for
furth~ inforgiatiod which he-t)prik~;,n~~acy for ~e P.U~ -Of @
llP. prQ",'J$iOO .Ul the /\a 01]. the CO.nstll\lt10r:\of the: trade uruoo ~v•do:!g >
for'au;omaue ~CS!e.tioo"'of membership 0!1 ~satioJ\ of emplO~t. u r ~ himself th! t the appliation,.C(?:m~·witb the,f!-~istoa:s !},.f- ~
Se!;.£>(¢) QhJy pr'ovidei th:tt the rules of ;i,,t.ry.de union have. in.rra~ , Sees. 5 2nd~ of thc_~ct (Se~ 7). l'h~}eJis~r caD reJ~ eto register :)" 0
re)" p~ovtcle forithe ad.mission of those who 3.re act\lally eng~ged or the.tnde•uruon. until he. reoeives ~ -uifot.n:?!JOn. "tt"l~ . -.
empl'~ xf.( f·J( i~ust ry oa.1 o ~ ,mcih&en so as to entitle ~·¥;1.~ . Sec. .8 impoS,Cs ~ n;i.tutory duty UP.,on'.the Registq.r·to~e:r th'c'
Jr,de Uaion on bci.ogsatisfiod that tJ>:J r.i&i.Uaion ha$ ~ I m with
d. <
-.-J uni~o td ~ rt&Utr.t~on under the Act.~-6(e) does not pro~~t
>-- on c:6S:1.tion~of employment an employee would cease.to be a ~ -: tbe~r~uirements of the Act. It i:5:~n~ry for ,l ~c R~~ to
'i. 1 , ~ !1 rcgistel' II tr:tcle union if the Union. $:1.t#fie:s
. m ,t he tt"l"bnit:U""(~ ' .
.
ts Oi
outl.;-ancl Pc>\#rs of Registrar (Secs. 7.8,9)7 • ·f ·t"I of ,.Jhit A ct.. ..i ' ; ~
;".!ft.r- .\ .,
ne ~ -~ction of the Registrar~ to e.umi.ne the ~elic!triQ.$''. If the registration is u..Qrta$Oni~f de!ayed (viz•• l'lo action ukm. _ ©
~ x~...,~ )qr ~lntion and loo~~~ ~e objcctS of ~c u~.4' iot on applicatio~ for more truul J m?~), ~ writ u.od~r ~'ti.. 226 0£ tb~ _· '
which •! ~y be for~ed. On comp~_of "!~~ry eood1tion~};r. 'I.,
pt'»'t~ in di~ M, be sh211 grant rcgistnbOn certificate 1;0 the tr~~ ;
Comtitution can be issued [ACC.~4,,rNI I..il!u S'rmuti_Jimu"<Jl,f~r ,·
U11iq11 v Rgirtmr AIR 1958 Pat 17S]:fi(, • ·._..~ , • ·
d•
~8•~a9): : .
i hC~~ar, on registering a T ~ U11!9n under Sec. S, s1i;\ii
, It tna-y, bowever, be noted tha.t-iTtade U.nion reg:uicrcd wider '
th:e, Act is_11111 a statutory body. It U poi:1tJc-ited by .JtatufC:- Thttifor.J.t;.. :.-
'a. '
iiruc a CC.rtlGoaie. o,f ~tiori iii tlie pttscribec:Uorm wbjdi sl.iillJ.e~. it is W"meoable 10 writ jurisdiction[ ~ A ' 0:, lJd. v !J(mJJa MdiJPf $
~ ~...,,~ th• Trad, Uaion bas~ duly~~ undef ~ · &S~'n rvp,m,1,- A,,,.. (!988) n ,LLJ 43 {Ker.Ji - · .
• •• ! • ~
~t•(~1 l•~e ret;inntion gi~~s a .s.t~p of~e, form11.tioa of~ e The~Rt:p.suar &$.1mt a qu@-jUWCW authority and VIJl!!tf, di#orc._
T n,diti111on U'l.d assurts- the nund of the.employer that the Trade decide my disputed question of face Or law {QN.C,.c ; ~nt-ir,:,} 0
tlnidll.is .ah auclienticat.cd body [Food ~11411 ef I11dia s/4J[.ulfhfv An,d,,JI,. v St,r,,fW.B. (1988) 57 l'l!R522 (Cal)i Prov'!i<>ltS of Sec:
,. ' r~~:~nifw,. 1/ 1,,aa 1995 ltR Jo9:(~~(,3 J~):'Tbc' ctn:~fiCn~I;:,£ 8 rebtc to only re-gim11cion of i tr3.dc union. It i.s onl)·':,, C lvi:l.Courc-{ -· 'l. Q
.
~ ~81:S~on tonunua to h old good until it J.$ ein&lled.[lf'FCQ ~ - Which ha:s juri:sdietion to ckcidc. that dUputc s.i.ncc wtder the,Tn~e.
')<.;;;;,.;,,;;,; s...;;, v rv,r;,1mr efl;,,,J, u.,,., (1992) 11 UJ 239 (A!I/J. UJ;U(.)ru Act; there is JlO provision permitting or empowering tbe Rtgilrnr' 'o
(/)
, ,. T he rc~tracion will be refused by. the Registrar if the ha.tne to tefer internal disputes rtlating co office-bearer for adji.idieatfoft tp_
~
:, under which' al Trade Union U proposc·d to be ·r ~tered is idc.ocibi· ·any other forum [Jl.N. SmsJ, v Stat, ef Biw 1998 LCR ~5]. No ,@
:, 9µ~&i' ot~~Y, n.istiti.g Trule Uni oft or $0•n:Uly resem.blei w'°cb -~ provision ol. law providd for hokling.0£ dectioo under tl\t Stipe:rwiorL ' ,
(1)
name.a(1;0 ~ llkely to deoeivc the public o.r dit meinben Of d?c'¥ cr. o(R<g;s,rn, Tnde Uaiom. Th,ref=, tb<petition,ris rigbdn ,ibmirring"
C.
'I~dt lfttioJ. In such a oasc, ·the Regi.n~ tniy require the ~ 0$ ~ that thctt is no legal authority 'for issu:ulte of impugncd1~rdm ~ r- 0
~ !lp2,_1yi.ng" for such registration to dunge the n:u:ne Of Union, ffld it ~
;:;:
:::T
~-~. .. ... wlueh tbe interna:l di&.put" we:re r~fei'red for adjudjcation:'}>y ~ c
u,depc,,do:,t Board i.Od upon its ~datio"', cJect;oo ls ilim:t<d 0
() to biheld under the s~pct"Yi.sioo .o l~P-S:tfu o f T r.1& 1,14iom [T..i:l,.
Q)
W.,,hn u.... v Sldll ,j jh,ul,J,,,I 2002 UR 806 (fha,_BC)J. 0
3
(/) •r... N.a Rm""'ff E , , , ~ · uJ.., •c.,,,1u,p,1r v ,0""'11 I.,,'¾
(')
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0-,,r./ D,p,,11 P.q;,trar TnuJ, u,,;,.,,t~
..,
(200J~ II llJ 20~.
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.l,

I()
Labour ta,..· • J
(All}, it WtiJ~c:Jd tfun the rightS co.n!errcd under the Tradc Vniol'I$ Aa
are neither fundamental nor common bw rights. Under the Act, the
Reginru hu ab$olute r ight, auf..lioriw or jurisdia.ion 'to adjudic:ite upon
.lny dcctioru set up by :,;r.y of the rival faccions or any other person.
However, the powers of the Reginr1.r :u-e purely admininr.uive. An
it1qui.ry held by the Regj.strar in the fJr(Senc.c of both the ri,.'al troop,:
cl.Umirtg tO be office-bc;u-e.rs i, admirustrat.ive in nature. H e h as not
been conferred with the power of holding eJectfon$ of the Un.ions, or
supctinteodeoce o r conduci; of the clectioll.$. Therefore, filing of a civil
i:ufr is the ~ y rtmedy.
As a. tr12tecr of principle. the Rcginnr h;a.s no power t◊ declare
the dcccion of office be-.arers o f a Union unconsci.tu;ional. B1.1t where
the petfrioner h as himself submitted to the jurisdiction of the Regist-nr
by request ing him co make art e nquiry, he cannot subsequently be
ailo1'•ed 10 nise an objection that the Registrar act«I withoot ju.risdictioa
[M.\lk1111d Rt,,w v S./. & "'1, Tvt,ittf'lll" AIR 1962 Pat 338).
LCAOING C...~t: IN RE INDIAN STEAM NAV!GATION WOAKERS UHION
(AIR 1936 Cal 57)
[The dut i.es of the Registrar '9.•e:re· t o cx:1.m.ine the
.application ~d to look -.u the objc:ct.s for wbkh the Union
was fonpcd. U tho~ ob;ects wett objects set out in the
A<:t·~ and if those objects did not go outside the objects
prescribed in the Act and if all the- requirements of the
Act an4 the regulat ions tr1.2de there-u nder lud been
compHed with, it was hts dot)', to register the Union. In
other words, M must rcgiuer the Un.ion,
A Regi.stnr only has to iee whether 2.Uilhc technical
requirement:$ are being fulfilled :and not w~ether it could
be dt:.$Cribcd as unlawful.} i · The Regjma.r when he rdiN on the ,mer to the Bengal
m rhii we, the R.egistrar refused to regist.er th~ Unio~ for the
;ipp)j,::aciOn made for registration Wa.$ Aid to L,t an -atlempt to
have :an9ther Un.ion. The Rcgistnr came to thq conclusion.o n
the facts before him th.at thi11 Union, '.'P/3.S.reilJy the LG.N .
Union un der a differem o.~ e.. T he 1.G.N. Union has been
doclattd to be~ unlawful :&.1Sociacion. 11)e Rcgi.ruar relied Qn
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Trade Unions: Definition Registration & Reeognitlon 4l
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a letter wr itten by the Secretary of the Un.ion 10 the &ngal
Govern.meat, wb.erei.n it "Or.ls statod that he had ~en directed E
by the General Body of other Un.ions to approac.b the "'
(.)
Government a.nd ~uest that the notification under ~ 16 of ~
Crimin.ii I.aw {Amendm,or) Act, decluu,g th• other Unlon a.s .<::::
u.n.b.wful w«:iation be withdrawn. The ~ t n . r appeared to ;::
have acted on the basis of the letter without giving an 'O
(I)
· opponunicy to the Union of expressing it:$ vie~• on the C
s.u temenu in the letter. C
. The c.Jcutta High C.ourt observod: The lunctioru of the ~
(/)
Rq;istrar are laid down i,!i. See.8 - -:The Regisuv on being
$,l,tis6cd that the Trade t:Jnion has complied with ~ the
requ.ire:ment:$ of thi.5: A.ct in rep.rd. to r~racion s-lull regi$.ttt
the U nion."
The Court held,. follows, It"'" the duty of the Regjstrar
ro ex:ami.nc the applicarion and ro look at the objea.s for whit.h
the Union was formed. lf thC$e ·objects wne those .set out in
tbe Act and if thc5e o bjects did not go out$.i.de the objects
pttttti.bed in the Ac:t and if ail the requirements of the Act
and ~-ations m:.d:e thereunder ~ad bee.Q complied w-ith, it
wu his duty to regi$ter c.he Union. The Registrar was n ot at
that $.Uge entitled to go into the q,~tion wh.e.thei- the Union
w.u 8Jlotbcr Trade Union which was registered m.d which was
KCklOg rcgistntidn undier a different name. Tbe R.egistru NS
no disc.rietion in tbit mattcT, He is r:ioi justified in ttfusing
rcglnntion on the ground that the Union applying for
rcg~tution is a Union declared to be unla-ful by the
govercunent t.>oder a diffennt rume.
Covem:r.eot ought to :have brought it co the oociee of the
Unio.n befott he ~ o n it ~ gi,-cn it an opponunfry to say
anything. th:1.t it h:1.d t o say with regard to it. The R.egisuar
should reconsider the qutstion ,;yl!.etber tbe requirements o f
the Act, with rcgvd io registra.tioc_ ha,·e been complied with
or not on the fa« of the applicu!o.n.]
 t <o:('i

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42 Labour Law • l . ii
· T rade Uni~n$: Definitio~ l 1~ tt·~.tion &. R~~ognitlon, :if3·
Mtnf~ um Requirement about M•m.bitrshlp of • Tr-ade Union oI regi.-st:rii.tiou ,h~ before gi-anting the ~ppli~ bon, s ~ ~ ~ at 4'
1..i.. l:.1 . . W . wi:b.dr:n~r,J or cancdJacion of ~ n W':lS appkwed by'l ~
; ~$ ').:. • ,·
A regtstered Tr-~ U nion of work.me.a shall at all times contioue.~to mttiing of the Tnde Union, or. ft1 t ~ as·not w appV~ t~iat' it h as .
&a:ve not less th-an 10% or 100 of the,workmen, whi~ever i; ~
1
lb~ approval ·of the majority of tlie ~ r $ o~the Tt;a-de Union. ~ r ·
,.. .su~je&tO 'i1 minimum of seven, eog:a.ged/~loyOO in esublis:htn;eQ-V this J)mp.~ . he may call for s~ further ~ ~ u-tie rm..r, dccii1
mdUScry. with wh;cb it ls cOnnected, as iCS me.mbtn. Sec. 9A has. ~ n neces:ury and examine any oifldr' ofthc U ruon.
l
"'I "" •

/wr?-by 2-00(Amcndm<nt. 'Ibe anccllatioo of registration of ;t•tradc. unibu

in violacioa. of
the n:widatory p,ovisloa.i Qf SeC. 'lO"'is ill cpl and 'imp~ CJ,4-,,.h!:v,
•
CanceUa"tJon of Ftea1stre.Uon [Se-c. tO]~
t , t•(4-• ~
f' p,,., Pigbt,rr J,m,u u,;,. v n,_g1,,-. (2003) Il L!J 1_100 (Bom)j. Tfu: .
Power t0 withdraw or canccl regis.tncioo .of a Trade Union is given to 'Rt,gistru.is notcom~~nt to ~~d regis!~tion ~£.~ Trul~ ':}Jll<i):i
the 1\igltrcir. ~e R.egi'stnt cm acrcisc this power in the following_ without, in the 6nt: U1SW1ce, givi.fig req_umtc oottce,and givutg;.tp ,
casoS'(Sec, 10),- ' · . : • ,:1 ·op~ity to the Union tO st;~ cil~·apinst the p~~~n-~
aaOCA"llacion of Reginratioo w-i~ giving $000ricl S h ~ ne>?Co
, (.i) On the application of the Trade Union.
and witliout- giving opport.uni!,Y to r/ptt$e r.tt ·the c~e lf lisblr-to~-t .
(a), _,l i.t.He Rt-gi.stra.t is sacisfi«I ch1t the Cenificate of re:ginntion ulde (VW'IJINl1tdll Ul'JUllr JWmj · t!.,,,pli_jftl• U1rio1t v ,i;,~ ~ A;,- of. r-
~
l-~ •·h ~ ~n obtained by fraud Or" tnl$ta.ke,
~ 'Where thCTrade Union ha.s ceased t o ~
TnNk u,;,., c,.,,,,,.
¢' O'f"'!Y if 1f:"•r.Jv,rw,.l200\ J.J:.R 170 (~)].
'Si!lott h ki.ne :ai:tinn undet-Scc:!"10. tbc :1.~1!9 p er,o_Q must b:c 6
(rl) If the Union ha$ wil.h;tl!r :l~d-~tt ·ru=?tic.e. ~ tn;-~ tF $Cl"Y'ed no.; lca,:s than two mont4ii•pfttious notlf!e. i.n,writlDg ~o.d ai.◊
COntravcoed -any prOV1$tOm of tru$ .Ac. or allO'W'cd aQY··rule:to · sialC die grounds of c:aru:ellatiO.n/i i:thdnwal of1\li'c, cercifica•e o(
) contin~ i.n fo~ which is incon.sistcitl"'s:i•iffi the P.rovtsi6n:s.~of regiscn\li.on to the trade u.o.io;; ·~~ SU~ .wh~-:'°·!JPPO~Y, ~y· 0
die Act o r lias rescinded any nile pioviding for in}' n::aftet way 0 £nouet' prio r to the o~o!-~ u Uation is P!'C9, the order ':1°t
provision
. for which ill, required by See. 6.
. -~
· . ' •J coDlDlUU~tt:d but seni on the ~ of the appeila?.dor c.a.ac.e11at!.Oo 0
(v) U ,the Registrar ls llatisfscd that .i registered Trade Un.ion!~ £ un~/ b.e s~tainccl (Tamil Ntd/1 ~ Prm IPqrkwJ1 S~ .!J?I, v 'Fint)radt.
(/)
workmen ceases to h.ive th e rcqu.4itc number.of ~ mBln U"'f'• Addi ~ ,(D.1- c,,,;,.,'vZ, fi:f-l/ l-4~
2004 (M1 J7
0 ,.
'. ' [iMrrldby 2001 Amendm,nt]. · · }' . Jn Talo E/NJn"r CqlJtjJalllU ~ Glli!d V l¼gfst,¥f_ef TNI# V r.fm1
(1994), d,e Bomb ay Hig)\ Court 1\'\d,!lat for a rcgi!,w tQ canc,J ~he
Q)
:, Pmir!Jd that noo Jess ®.an two months" previous notice in wr-itin"g
:,
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l l p ~ g the ground o n which it i.,' prOpoJC<i tq withdraw or- ~ &;t }!
re&i.s~atio~ wilful neglc~ of tlif :~ t~ce is a m\lrt. ~ ~ -:111on
C. th<cercifioiue•~ be given by t h e ~ to the Trade Unwn i...rlc. sends the aoeovrtt su.temm.t ~on nou~ of d,.e re~~• the reg~rar
t b e ~is:witbdnwn ot cancclJocl otbexwise tbm'on th, a~ can.noteuicd the re-gistr:i.Uon on the'g iowid that t b i ~ t state.cntnt
~
;:;: of ~ ~"J::~_Uni~n. ~ ~ "Ot filed earlier. 'fhc un:loa.::,d id•dOt £ile rei.Ur.d 'u rllcr'"dw: ' "
:::T nlisuhde.manding of accountin/ ye,?-T attd the reru1-!\ was {f\ed soon
()
; ~ ! i ~n 9 of th e Ce-ncr.tf Tncle Un.ion Regulations, 19~3,
Q) p~ t h f i{ t h e ~ <>n roceivmg an i:i.Pf>~ fOC d.e ~ o r : i -after receipt of show ca\&Se ft.C?iiCc l'rorn t h e. regt~r. Uncltt th~
- .~ t ~u.noes the canttllatiOn o( r ~ i o n O,i l die groun<f ot 9on-
3
(/) fiiiol;o£ tffl&["I) wu.~ hdd imp~~~~~ fOT ~ ~ 90 of ~ t i°:1
of a tn.de union, wilful contraventton~-of the provmons 'of the~ Cf 1s
0
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Labou r Law~ 1 Trade Unions: Definition Registration & Reeog~ltion 45

A Tr.1de Union wh0$C rcgi,saadon h~ been c.anoclled h;u remedies (w) if tbe b~d office or t he tndc union is in any other location,
"'
<)
(/)
iu che form of :tppc:U or to apply for fresh regi.str.it.ion. If tbc :ip pe;lJ to suc:-h c:-oun, n ot U:Ucrior to the CO\lft of AA .additional or E
succeeds the order of caucdlarion could be held co be vo id "J, ;,,;,~ auist&nt judgt of a principal civil court of origual jurisdiaion, "'
(.)
aod the Un.i9 n would oont'.Utue J$ Lf order o f caocc::I.Lation h:is not been
pused. If fresh reg.irt.ration is permitted, it woulc.J l>e e.flc,c,tive from
the- date thcn:oC. Once the R.egi.strar ca.noels·Or withdnrws the ~uarion
o f~ Union l)c h~s no power LO review it and tb\U (UHM/Withdraw the
as the appropriate government may appoinl i.n th.if beluJf for
that.,.. [Sec. ll(I)).
. According to Sec. 11(2), the Appellati? Court may (Wm.is$ ~ e appeal
or pass ao o rder clirecting the Rcgistn.r to register the Un.ion 111d t0
-
~

otder of cancellation because of $ubsequtnc eve-nu. ln th.is case, the
ltegi.s:t..r:a.r caq.cclled the registration of Union for corunvention of the
Soc. 28 for not filing the annuill rctUms. Later o.n, the Registr.ar withdrew
cancdhtion of rcgistr;ition on the ground tba, ~turns have bee n
subrnined subsequenily [M11J!a1rd Ims & Stu! Wqr,t, Lid. v .Rt,tjstmr
(1986) II UJ 290 (Bom)~
The o r.der ol c:\ncelJ~tion of the t ~ itratioo of a Ltade union
be withdrawn Q i: ri:..-okcd by the Repsll'U. Oruy remedy is to go
f#1moJ
in ilppcn.l o r apply for s'<'--regUtntion [RathJriF Mllk.klfd E.~,· U1ri-6n
v ,\11,1l!R/$,,J Iron & Sr«/ ll~ rkl l.Jd. (1987) SS FLR 507 (Bom)).
Appeal •tajnst oec;.ision of ReglStti\r (Sec. 11)9
A l.imjted right of apptal from the decision o! the.Registrar i$ tnnted
by Sec. 11 of t.bt Act. Any person assr~ved by the refunl of the
~ to ~ a T nde Union <;rt by the withdrawal. or caocclhtion
0£ a cenific:-ate of r ~tntioo bu the right 0£ appeal to the High
CO\lrt or an appropri:atc authority provided for the purpose. The
appeal is to be preferred within 60 lliys: of the date on which the
Registr.ir passed t he ordtt a~ ; t which the appcal i, made [Rtgul,tion
19. Centnl Trade Un.ion Regu.La.tiom., 1938}
An appeal m.1y be made to:
{i) the High Court, if the he3.d office of the trade uni()n i, located
in a J)resideocy town; ; to form asrociation guaranteed by Art.19 (t)(c) o f the Connm.1tion of
(u) tbe labour cowt or i.ndl.l.Rri.u uibun.11, if thd he-3.d office Of the
tr.ad~ UJ1ion i.s located ul iu jwi.sdiction.; J However, if the U~n i.s ~mdunder the Act, it will get the
i
9. Wha1 ,-me,dy, if •"Y, I& p ~ uM•r !ht Act. kl tho Trad• U~ l'I, M)O arc
" 9 Q ~ by tile decis.ion of the Repk.tl'at O~llning to ro~ 1cr tl'ltl' Onion under
,ne Act? • j rt..C."-4151
'§:
'O
(I)
issue a certifu:ate of regi.n:ration.. T h.t Court may also $et aside the C
ordu for withdrawd or canoeUa.ti.o.a \lf the eenifia.te. The Regjstn1r C
must comply with any such order passed by the Appellate Coun. As ~
pC:r Sec. 11(3), an appellate court shall follow the $ante procedure 2.11d
(/)
have the sune powers as it follows -and hai when trying ,a wtC under
the C ode of Civil Procedure, 1908 .
.in Rq;,m,,ef Tn,d," Uwf4m, W.ll, v Mimr K,,,.., Gu&I (1963) (Caij,
it was bdd tbu a trade UJUQQ•'Wb,q,se he.ad office is in a presidcacy town
hu only a. ni«/1 chance Of appeal against the ~dsion o f the r~istnu,
whi.cb it tO the High Cou.n, while a trade unioo whose head' office is
in 11111jfo.,il ba$ ~o c.banceJ of appeu&, first in the local court and
oecond in the liigl, Co=-
lf the ~istr.ati.on is.~orubly <klsyed (viz.. no ~on taken
on application for more than 3 01,o.a.ths), a. writ v.nde.t Art. 226 of the
Coa.$titution oa.n be issued [A.CC 'Pw!/.tlWI l::il!,1 StoMQw.trriu MatJ«,r
Unt'on v ~/riv AIR 1958 Pat i 7S}.
Rqf'st.,.od v Unr. .fsterttd Tr•d• Union
TM Track Union Aa does not make it eompuJsory that every union
or ~ociation must be rqistcred under the Aa. Unngistelld UJlions or
a.ssoeiations would not in any way be illegal (unless their objec.t is
illegal). This is emphaUC:Ufy $0 U1 the c:-ootat o f the: fund.a.mcntial right
u,d;,.. .
immunilic:$. pri~eges and other rights eontcmplated Wldu the Act vi2..
@ It become$ .a body «>rpor,u c by the .a.ame: und.e.r which it is
regist,red.

I
 r
f:
,,.

46 · Labour Law ~ I

'Xu), _lt gets p~_e real suc-cessioo and cOm.motfseal. .

~
1
J7-~ -ac~ and bold ~ m"';llbte ~ i.mmovabSe propc7. 1

W) _r~ can con4~ through agen,s.

1
~
(!)~ l~c.a.J?,,Ne and be sued in it-s rq:iste~d name.. , p
°'Evc-,Yngktercd Trade Union shall ~ a body corporate by't he na:he
aod
under ,l,liJch it is regjsw.d, slwl have perpm,,I ruoccssion wJ a
... commd.ni'a e~ Wi.ih power to acquire and•hoJd 1both tn~k ~d
, Jm.m(!vablC property a.0.d to oontraet~•and shall by tbC said o ~~ru'J
and 1,e su,d", '5'« t J,r--pq_, ef ~ d Tn,J; u_..,,), f
'>? Cemiu.Act,, =nely, die So<:ittiel l\,gi.,tr,1ion J\ct, IS&l;'the Co- ,
~rniVe S<>C,lecies A~. 1912; and the C,µtpanies' Act, 1956 ffl·ill rff!
appiy. to an}" tt_giste.rcd tn.d.e union, a:b~ that th~ ttgiuratioo of ai(y Gi
~ "
.,tQCh u.ade tin.ion Under a.oy $Utb ~ct ~all.be void (Sec. 14),
~ i:tn:,d Trade Union ooula' not be sued in Ton.ht sillol:
t
.
;
I I
@,
it member:theJ<if i,n a rq'.>rt$en~tive~pitci'ty: n e.'proper ~ lA
auch,. c-a.,c a.n,.
> :....u to• ,uc- a mcJnb c.r :i:or
' "'-' caux
. o f ~on•-ua~
. '" 1'
_4)" 'el
~ that nxmber. Therdo1e u Wllcgislt:.ed Umoii is ooly'a ~
auociatfonof uidividU.W having no ~ r a t e existeooe. it is ~-~ ~
:.. e:otity~/}o unt~is;cr~ Ua.ion can.not be sued aiid a.ay appcan.n.cc of,.
~.
'
,,. , offklili ori. its behalf befott: the C()u.tt is oot' right: Therefore uiy
·~ pe:non aggrjcved by :i wrong com.mitt4?d by the.' membe:n of such~~
Uoioil&Howd'bring·an action aga.inst all persons pcnonally who -wer,.
·J
-~ mem.l>.er, of the Un.ion .it' the timA: o{ the COmtni.ssion oltaUCgcd 0
(/)

~
~ wn;ing. . . . , ~
:,
:,
. Uil&/the" T.rade Unions Act,, 1926, an unregistered tnde- u.al; n 0
t
or ~~na~i"un.ion whose registration bas ~D cariccllcd ha1 no ~ r .
...: . ·o
(1)
C, of nglit whiuoever. Evto. the r ights available und~h ' the InduStrial
~ Diiputet Act; 1947 ha,~ been limited only tO tho$e tr.ae t.mions..wltiicb
;:;: .. . att r,,gistmd under die T.-.de Unions Aa~Sec. 2(qq) o f the In<!~
:::T
·ois.euces·Ac-t w.e.f. 21.8.198◄ defined. a t r ~ union to mean· a 1~ ©
()
Q) ?1)i~4 ~ md uo!kr the T r.ide Unions Act. 1.926] [.8. Sti11iM1A ~ V
.Kanra:.api U~x Wat1r Suppt, & Dnzi~· Board, B,,,pl'!}w A mw. (2006) Q
3
(/) 11 sec n1J. r
() '
Q) P.. T r i.de UniOn registered under the Act is entitled to :all tne " 0
:,
:, protections (unm.unities) and rigb.u contemplate~ by~ Act ~
(1)
~
0
Ir »

48 Labou r L~w ~ I
The notice o( such amalgamatioo~ $ig,nod by the sccreury and ~·en
memben o f e;i.c:h of the trade unions, ~ould be seut to the Registrar
of the S1:&te where the bead o ffite of the 2malgam.ued t udc onion i_$
to be located. I( the Regjscrar is uti$6ed th.at :tll the provWc,n$ of dW
Act have btt.n complied wit.h..1nd the trade union fo rmed thereby is
entitled to regi$tr.ition under Sec. 6, he will register the new tratk union
u nder S«. 8 and the .amalgam.ation will take e-ffect from the <b,e o!
regisu-atiorl. •
On 'mergdr' the Tni.de Union a.nd iu office-beaten- do 11()/ lose
their iden.tity [&rr.ax /vlm,:r D;;• v U11~11 ef India (1991) 63 FLR ◄6J
(G;iu}J. An un,;alg.unation shall not p rejudice. any right of my sucb
unions o ~.any r igh1 of a Cr@diwr o r ;an y of thCl'll,
6. U nckT S#. 28·F~ the excru.tive o f a rcgisrer«.i tr-.ide union has
a right to negottlte with the employer the m-:11;1trs of
employme.n1, or no n~rnploymem or the tertns o! cmploytnent
or .the condit~on ol labour of all Or- :any o f rhe members o(
di..e 1:r;1;de union :md the employer $hall receive M.d send replies
to.tcttcn aud gnnt intcr"\,'iew$ , o such body .reg"2rding such
"""""'
LJobUlti~s Of a R~sistered Trode Union
A registered t r ade w aion must folJow the provisions of the T r:tde
Union$ A.a 1926. fn panicuhr• the following ate some ".Jtrirtirnu on a
registered ~ union:
(I) A Tnde Union ""'""spend lhe furulson ..,,,,.'ltd,,, offic, beuen
wint. lt C.l.D spend fWld:s only on the activities specified in S« 15.
These .induck: sah.rks of office heMers; expenses rt-quired for
~ r i on o( the trade union; compensation to wulten due
to loss arising out of any trade dispute; ~d.fa.re activities of tbe
wOrkers; benefits 10 worken o r Ul<'ir depc:odcnu in case. of
unqnploymcm, disability, or doalh: publ\<ruog nure,iu (o, """""g
: i w ~ ln Lhe v.•orken; kg;tl exptttSeS required for defending Or
brin&i.ng a suit.; caking insunnce policies-for workel'$.
Whtrc the Office be:i.ren of a tr:ide union inv~ the money from
genet'.ll fu ud imo $har es o f U TI, it W':lS hdd inhJjd bec:tU$e it i.s :a
specuJ:a.rive investment {Maml RPPM() v H.iW. BM~®h,.r 1994).
I'
~
(I)
C
C
Trade Unions: Definition Regi.s1ration & Recognltloi, .49
2. A tr.a.de u..o.ion a:i,mot force mcm.bers to ,u'bscribe to political
"'
<)
(/)
E
fund under Sti:. 16. A mco.iber who does not c:onuibute tO the
sud fund .shd.JlOt be excluded &om any ben.dic, of the trade "'
(.)
union, or pb.ced i n any respect either directly or indirectly
~der any diubility or at any di.sadvantige a$ compared with
o~er members of the union by reuon of his contribution ro
.:-be said fund.
-
~
'§:
'O
(I)
3. Under St:t. 20, a trade union must make available all frs record C
boob of accounts U'td liSt of membership for msp«;tion C
upon rtQuC$t of any member or his repre,w,nucive. ~
(/)
4. S"- Zf allows minors more than ts~ of age to be members
of a 1nde union. A minor eD;.0)'$ all the richts of a member
uid executes i.l instnamenrs ~ give: all acquittance$ DCCrS"'J'
t o be executed. However. such mi.11ors Mlflt()f hold offioe..
Funhcr, there should be ,.. prohibition in the R.ules of Trod<
· l.J~ on admiui0g Ulf. l'IWlor as its members.'° Normally, a
pcnon 2bove 18 years.of age i$ qualified to be a mt:m.ber of
the trade union. · . · · ·
S. Under S"- 21 Yi, a trade unioa ca.n.n0t appoint a person who
hu ~ oonvicu,d of 2 Crime involving monl turpitude and
h.» bccD. imprisoned for 6 months or mo.re w ~ lut 5 yean.
6. A$ per Su. 22, at le2n ha!/ of the office bearers of a t ~
Wllot1 of.workers of W10tgawud sector ~ust b,e engaged or
employed in an industry ro which the trade union i< oonnoctcd.
Alto. whil<, a union 1w a right , o remove any of6oe bearer, this
p o wer mun be used judiciously and rules of natural justic;:e
must be followed..
7. Under S1t.. 28. a gene~ natemcnt) audi-ted in ;a. pmcribed
manner, of J.l income :md expenses must be un, to t.hc
11,gi,t,ar ...,,. ,,.,.-.
 ,
0
. ! '
,.
50 Labour Law - r Tra_d e Unlo~s: •))efinltlon ~gtstci>.tton & Re!")__gnlUon
' j ).,~ ~ . •~ ea. •
Po:Wer•to Make R.egulat!0t1s (Sec.. 29J :, ·4..J:
DiJsoludon of a "n-ade Union (Sec. ·171
~) 1, W'liCD."; regis-tcred T nde Union is d.i.ssolv~ n otiee of ~c .
- •
Eveiy not~i'on nude by the Cen&.tl_~ t ~ Sec. 22(1),
,,,_.
0,.
dih"l>l\,1tioQ. sipi.ed by ,oven member$ ,uid 1;,y the Sec.reeuy
. or and cvCl"}' regulation made by it undei Scc. 2.9{1) .shall bclaµt, as soon -·
0
,.,_ · · tbCTradt- Union sh.ill., within fofutccn daY$ of the diuoh.nidn as.. ~y ~ afttr 1t is inade, before t'2CJi l:fou.te of P:a,:liarnent ~ec-t
. :· t;C $tot to.the Registrar, and sfu.Jfi?c re'gutered by b+m- ifhe 2?{3). in.Yrttd b}' 2001 Amc.odmenti
. ii@liily, every notifiCatiqn ~
r ,'S.,..,
~
0
~

.•is u.tisft.ed that the dinolution hJtS bttn e£fettcd in accdrda.oi:e by the S~tc Govcm.mcnt under Scc:22(1) aa.'d every r~ation maGe
;./ with the rule.$ of the Trade Union. and the 'dissolution shm by it u.n<kr s«:. 29{1) :1h.ill be' laid bdor;·~e State Ugist;w~[Scc:. ,
, , have tffect from.the d-ate of suai ·ttg~acion. . i 29(4), i1tmtltlby 2001 A.ait:nd.ment]. 1 -:- - ·
' ' . · 1 •~<!..-, ·
1
i
.,.. . ..,
.~. • .
0
~) Where the dissolµcion of a regiuirtd T~ Union his be&
Pen.ittii-s and Proc:Mfut• [Secs. 3,•lj] . ..
1
~• . •·' •
s :tl'e~tered and tht',rules of the Tude Union do not pro~i&
· for,the oinribution of fun.els of the Trade Union on dmolu1t0h, • Sec.-tio.o ,l l prov~ for T"ailure to subini~Rerums.' In case of delay in· ·, ~
• · ·t he fu:gistrar ,h.all divide the funds amo'~ the met'nl>e:rs' b imngan-tt0the~ofihc.Trad.U . .. 'tJ:ie~.
,;>such t:DAtu2,er ~ may be prescribed. can imp6~ a fine under Sec. 31 ·wr:tld ·o t~ :::!POra~
to ~ch 0
. .•
;. . f•
jµ..
. I' amendment [!>,ii)( Hl.,uilwa,:J Afm~':ik~ ~ c,, si Dtlbi~if'Utnzhi,r
t990 LLR 234 De!J. • ~
+ •

,'$tera~on tn Rut~S of Tn1d• Union r ~ • .

, . t .
Section 6-..(g) provide, that lhe rules of a trade-uni.oil. 1:::nust'pn:)1'1.~_die Supplylns.Fal.w lnfonr,atlr;,r, cegar!J.lns"Trad~ unloni.!.( SK. 32)
mao.ner in whic:b Ulc rut~ llh:.dl Loe ..ruco..-tcJ, v.u-i.ed or Faeiadb:t: Sc!c, 1 0i.~
Any pC.non who, wi:h Ul.unt .;o de«ive, gives to any member o( a·
28(3), l~~idO.wn tha~ a copy of every -:1~!fftio!1 mide_ la_ tbt rule~.6£ ttgisr:erid Trade Union or to uty ~onJ,mendiilg o~ :a_pplyiag t0 beoc):ltie
a ffgl>te~u-ode uruon wll be ""1t t<> the Re~ withm 15 il"~ bf · a,,,,,,,,J,., of such Trad, Union my ~ • pu,poning,to be• 90PY:
. 6<
the ·_m aking 0£ the altef'.ation. Sec. 291:~powcrs the appi:opn.l\\:e of the-rules of tl::ie Tn~ U.aio.G of O!~l ilt~ns to the same whilli'
govcr~ent to make regulations for the 'purpose ,of·ca.rrying into
cff'~ tb.e.provisiorU of chis Act -\
m! knows, or _b~ ~$Ort l() bdievC, ~.n;t ( COrrect copy qi such rules ·0,
or alter.itions. or any per$0n who, with, m·,e likeU1tcot, gii1esa copy of:=
,.,.knon 30 makes it oblipiory t0 publisb,R.cptions iq die Offid.tl any n,l,s of an unrcgist=d T.-.de U~>11y pcnon·oo. iJie pr.ten<:<:' 1'
e'
(/) Gazette and they will ~ ~to force il.ftc~ ~ch pub~~ ~a#.~ . th.< such Nlesate die Nies ofa ~ Tiide.Unioo, d,,lJ i,; p•n;ib,bl.- •
.lff.
~
~~
9 otthe Central Tr':l.de tJmon Rcgulat'iODS;, 1938 provides th at•on '(4•ith fiat which may eneod r.o two Jiu.ndre,tnlpccs. · ~
:,
:, receiving• copy of an alrention mad, in th• ,uJ;; un&r Sec. 28(3), tfu: 0
(1) ~ . wilffl he has reason to beli~ Wt the altt:ration bas not bJn Co,snl-ZO~ .of OU.nc111. (Sec. 33) :ii;. ! r_ ...
C. made in the mmn« provided by the rules of trade wilo11, al,,11 ~ (l) No Coott inferior to that cj£•a 'Presidency ~a.tc or· a. - (j:j
~ thc-aftc.ntio.ci. it& .1, •~t$\'et and $h.aD notify c.be bet tlut he has done ~ M.agu-tnte of the fltft cb.u shall ftiany offence u:odcr UU1 Ad.
(2) No Coun dull ~ o:og,u,..J& oi.lnr
;:;:
:::,-
ro ffie Sic:reu,y of the Trade Unio.o. The combined effect of Stc:s. offence wJ... thi>A«. '©
()
~(g): 28(3), 2'1 and 30, and, R,gulaiion 9 is th,r a registered ti.de wiiSn unless a,mpbinc thereof h:u b;m~ by, o, with w,previi,.;,
~ alter its rules o.nly in the iiunner provided io tbesc prOVitions. nl-:it $-Mction 0!1· the RcgUu-ar o"r., Ul ~ case o f an offence under
Q)

3 a.
meanl .-.cg:ine.red tnCU urtion an titer iu ruies oAly ln the trwl.ner . Sec. 32, by the penon to whqm difcopy wu ~ ,vithin six ,o
proyl~d in the Act [1~diaA o.io-A.WI LJd. V T/Nir W~,-£mtit·AIR 1969~S°C ~~nthsJ~-~~~te on whi<'~:H6~ offence is aµ~~ t:0 ha e
re
(/)
()
Q)
ooi;J. , •. I ~noo~~ •
:,
:,
(1)
~
0
...d

52 Labou r Law - I
REGISTERED v RECOGNISED TRADE UNION 11
'fhc T rade Unions Ace d oes not provide for compulsory r-ecc:,gr.ai1-ion
o! Tr.idC U nions. R«.ognirion rhus rem:tini -t mu1er of discretion of
the employer. The ·rru1e Union (Amendment) Act, 19,.7, even though
~nvis.tgcd for conapl.llsory reoognition of Trade Union. was n0t curied
Ulto eHcci. The 19SO Trade Union Bill designed to We &.\me purpose
aJso l.tpsed.
Thi ri:oognirion of ll. Trade Union is different from its rcgismcion.
A 'rrade Un.ion r~tcrerl under the Act is entitlod t0 :all the protections
11nd righ~ contemplncd by the-Act even if it l$ not rocogn.ised by the
employer [Sohi!)w MaMi,· f>rn1 v SJo./f of U.P. (1951) l U.J 246}. A
recogaued U nion has certaio. additional privileges and rights comp:a.red
to an u~Ulcred Union:-
(i} the right to wlt represenution of the workers in any collective
b..-g,ining.
(t.i) to.ra.i~ Usu« and cnte.r U'lu:, a.gr<:eme-nt$ with employer, on
general questions concerning the terms ;i,nd conditio ns of
employn,en<,
(~ ,o discuu witl, employer the grievances o( the workers,
~v} to k:spec:t the place o f work.
(v) ~o oom.inate iu represent:u.i.va to the grif\•ance com.mitttt
cs...,,;, U1h=h s.im. v &,y,,,,.J W,¼,, ,\U/JJ (1995) sec 78].
T he Bombay lttdU3tri:a! Relations Act, 1946, The }.LP, :wd R,:apAth~n
St.ate Ac;s provide for compuliOry recognition. Con$ideriag the
ad,•..nt.ig.c o! compulsory Slatutory rocognjtioa.. th,c, Naciotw Commis.tion
on Labour (eels it des.inbl~ l.() make U nio n recopition compulsory
under a ce.ntn.l law, in all undetukifig empk>ying 100 or more workers
or w here the capital it1vened .is more th:a.n 2 $1,jpuJ.atcd s:iz.e. ,
T he tct-.ognition o( .a tr~ union is IWI regulated by .my stiatcutory
provision. The uadc union t2nnot enforce the right o( recognition
; : i ~ the managcmem by a writ petition. A.ii ~ t ought 10 have
~
(I)
C
C
Trade Un.ions: Definition Registration & Recognition 53
been entered into beA;een the trade union .ind the managerrient for
"'
<)
(/)
grmti.ng recognition [WcirAA'1Jr of Ksm,p/i c ()~p. Squ fiiM"Q' 1:-Jd. v E
M•"'ll"""' ef 1'4mpli c..o;, S•!f" .RutGry Lid. (1995) 1 UJ 727 {Kvnt)]. "'
(.)
-
The rcoog:nition once gnnt.ed ean.n.ot be withdnawn illegally or ~
without eo1nptying with the rules o f natw.l iusticc:, 1n T.N.B.B. ~ '§:
S,,w,,, v T.,.;J N,.J,, Bkarimy B,,,,J (1996) 1 UJ 1071 (Mad), it .,.,
held that bd'ore the withdnwtl oi recognition the empJoyer mu.st give 'O
(I)
opponunity to the Union and mun al$o State valid reasons for de- C
rccognition. D~recognition Qrulot be done in ut vbiua,y tmni)er. In C
the pre.k:in case, the re,;pondent has not given a.oy opportunity to put ~
(/)
forth the gricvana:s of pccitiot)Cr$ by t;.0nduccing an inquiry which will
lind whether the Union has indulged in any unlawful acilvity.
UAOIHo C.Sc:: CHAIRMAN, SIi v AL.L ORISSA $TATE 8A)rff( ·
OFFICERS' J.$SOI.
(AIR 2002 SC 22'79>
[Recognition of a Union confers righu, duties and
oblig.ations. Non-confttrlng of .such richts, dutie,, etc.
on.a union other tbito th_e recognized union docs n ot put
it in an i.nferio'r position. nc members of no11-recogniud
ah<>c::iation can fully,cnjOy thcll' fundamental freedom of
spttcb and ~reuion as also to form the usoclation.
In compfflson to a recogni-ud union, the right, and
privilege's of a non-recog:niud union we-re limited to
c.spo~ing the gricvao.ces of Individual mc:mben and
representing them in domestic iuquiriet held by the
employer. A recognized UD.ioa has the right to puticipate:
in the ditcu$$ions/tlcgotiatioa., rcg:.ardiog general Wues
affecting all workmen/employees..]
In this case, mt: Apex Cow, restated and compared the righti
of recognized :ind Wlr'tcogo..iud unions. It was held that U'l
'unreeogniud' union is w.11 a $'.lpcriluow entity. It is en.tided to
meet and d.iscws with the man agement/ employer a.bout
grievances or -any individual membe• •elating to hiJ ,er-vice
conditions and to rep~n-t an iocl.ividual member io dCIOle$UCI
depan:rneotal inquiry a~d p~dings before ~nciliation
 ·[
.•
' oj
r.t Labouc Law - I 1
a·,,~
·"' , . • r.
Offii:er/ Labour Couni lnduswl Tribu,l,l. Th< ~ ·r 9,,
'ei:r,plojer k "'°'outrigbdy rduse tO Juve such ~ o m wid:1
.an,u~v,U'.ed WUOn. _ 0
~ ~~. a P~ .Cii:cubr
in Scite &.ak.o l India renriining ~.,. I
lis ~~ £rom cnrcriog into :u)y ~ or aa:r:~_anf..ft
l rcpre3Cllrauon fro(n the office-bl!'ucn of an u.nn:c:ogu~ ~ & <

,.. ·\\·S S~:ttion' w.u rightly Set aside bf the High Coti.rt. HO'Wevet°, J
Wh~ii. in certain .rmnm cow:e~ individual workmed . f to
wi:tlt the~unio°' ofwhidi I , '
discu:ssionirxl.~ "
th<y weri, 'm ,mben would be usc!ul, 1w to be decided.by the , ; 'ct
'~~
man~emcnt o r its r epCC$Wt$tiV~ at ~,e spot. ·, If J'
. There W'3$ no common Jaw right of.a trade. \IJlioa tO .
rc~resen t its m c-mben whether 'fo r purposes of collcct:i.;c ·1, -
borg,uning or individuolgriev.tnoes of ia m<mbcn. In compui,on '
to a recoglili:.ed unioo., the rights and privileges of a 1100-
rce~ gni:t.ed ·wuon were limi.ted to CfP~U$ing ~ ~ s ◊£
j#J,i,iJ,,.·a/ ffll;-~'Q ...nd rtp.tc.,ent~g· ~ jn d ~ ~~ f;
h•l.<I by the employer. A rccogniud wuou, on ib,' othu h..,d,
f
,.
I~
1
Ji
~dic."•'tto
~·' , ·• .._'ti"'" p
anicip,te mdv>d;-,,smn,1 .• ·
., . , ~ " " . r ~
_ _.;. :
Q'
gcocra.l issues affccti4 ail wor~einplo~. .
. ...,. . . '
:rbe coon-, however. observed: '"'11,,,e ve.r:,• fact that ccnaln
"
_
..,,
0
rights are ve·scod -in a non-recogriued union sb.ow:s tha; I.be
:-:rrade _UOio.o, A¢.t acknowledge the C'X.ikence of~ aoo: f! 6)
''
(/) rccogniud u.nioo. ae«,gnition o f a union conf'm rights. du.ties
~
:,
..and obligations.:. Non-conferring of such rights, ducies. etc. 00
Q
a union other t:han the reooga.iud union doe$ O..O f pul it it) 2111, .._
:,
(1) inferior position. The members o( non.•re(ogttit..ed anocUcion ,.
C. can fully enjoy their fun.daniertt.il freedom of spc«h a~ r 0
~
;:;:
eX;>re»ion ;is al$0 to form the assbiiacioo. lt is oOl ton«:t to !
say <Im th, di<inclin:woo of the W<>Ckman co join <he rt<Xlgllitid
:::,-
uufon viol'ates the fundfflltntal freedolll iOlotn.i usoc~tioll.. ' - 1i:l•
()
rt is"'~ not conect to say th.at recognition by a.n employ-ct l
Q)

3 is imP.lic:it" in the ~ t a l freedom to !orm a.n moaaJon. ' ti•

(/)
(")
Tbe tt~t¥tO,Y r~icion o! aJl \UU'e-c:ogP,~ed union·{viz. fo t
Q) repre°sent U'ldivich.w workman) is in tbe 1:arge UltereSt of i.od.uruy. I 0
:, pub& intcrcst utd national ioterert."] ' ~
:,
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~

i I
j

: C
56 Labour La w - {
and purpQ$eo; o! the union$ ::ind give sopie s:e,ue o f direction to the
olherwisc sattered a.od iso lated b.rgc number of unious.
The unions ha,·e .ach~vcd a remark11,ble status where their voiocs
are heard by the gove-rnmeflt ;:i;ud Ulc C"mploycrs; d1ey are consulted 011
tmttc.rs pert.ili.ning ro improvement in rondit.ions of work be.ihh and
Sl!ety, job sai.uiry, w ~ productivity, ~ tTUtte1$ concttning W lllteresu
of labou r.
The trade WlioU rivalries have however become sh1rpe; in Cree
Cndi:i. The.splitting up of llnions and formation of DC"\'l' unjons having
sympnhie, with politica) p::irties hu permitted unions opcnti.ng 11.t
di!!ercnt level,. A,s n:gards leadership, ~ major o ~ Juve thOJ'
p:,frlka/affilio1tions, :utd the Je.idcrsbip, therefof'e, lia in the hand$ o( the
poliU~ians, and 11« in those ol the working cl»s, which is yet illite:nto
and b.:ick:wud to wield any influeuce. Some WWysu believe that strikes
md other bbour protests are c:illed primarily to further the inte rests of
po!itic-.tl pan:les rat.her than to. promote the iiltCU$t.s of the work force,
. Seate in employment reln:ons' nun.ers, the number of 0Ut$ider$ wdl
Problems fa~d by Tr.Ade Unions i_n lndia are:
@ AWl:i-lhl:N)r.l.rm. Too many unions c:iu.i;e int:r:t•union 3.nd inter•
union r-jvalry and tbus Joss of precious oesourcc.s tlu.t c:1.n be
w:.e:d for worker's wdfa.rc.
(li) OguiMT ,it th# V,d1111. Out:sidc Leadership ea.u:ses unions to lose
Cows bec:1.u~ $1.&(;b leadership does t'I01. umkn.-w:id the problems
of the labourers,
(iii) P~tlml '!lfi!la~n (a r~n out of polit.i¢J. sys~m). Politicisation of
union$ causes the unio:t to ~'Crlook the true welfare and bcne6b
of the worker.
(rv} I11.1rr-11r.1on rn,\cllry '1#d ,:111rt1-klfi111$ rfmlry.
(vJ AllU11jXJ n:ad, b,> SO!tf4 tmJU<!}vn ,'tt ul up lhli()11r 1111!kr thtir i,,J/,n1«,
SOmetime the employers do not r-ecogniu unions.
In India., the defeat of tt1de unionism gave rue to low-wage jobs.
Gia.-u Corpontiom like Wa}.Mart activdy supprc.s,se:$ Wl.ionisation among
workttS.. 'flti$ is 11r1ta healthy stin fer workers.
~
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C
Trade Unions: Definition Registration & Recognition 51
Rl!PORT OF THE NATIONAL COMMISSION
"'
<)
(/)
ON LABOlJR (2002) E
"'
(.)
~
The Trade Unions (Amend.mein) .-\ct, 20011 has ma.de certm\ changes .<::::
that provides: for req\Urement :1.bout. mem.benJ,..ip o f o Uni.oi,., ~ th:1.t ;::
would ....iuce mulriplicity of union,, reduce the m;mbe, of 'ouuidtn' in 'O
the executive of a made union, prohibit a Union/State Minister from (I)
being a iru:mber of the executive of a trade union, etc.. The 2001 C
C
Amendment, h~·evtc, is a n,ilr.11A!Ubit of legi.slat.ioa in the «>otext of all
that' is needed. ,m d ignores the moo important aspec;t of the whole ~
(/)
qu,,uon,twne!y, t h e " ~ o l t h e ~ o r n,goaatint;"llffl'."
:t would hav·e been desir:i.ble H the Amendment Act had llU-0
,provided for a ceiling on CM total num~ of t~de union, of whic~
1lil 'outsider' ca.a be a member of cxccuuve bodies. c;>ne hopes that it
the new $)'$1cm o f law wer~ lO progreuively dun.i.nish the rc:!e of ~e
afso prognssively d iminish.
' Amen dments made in Sec.. ◄ appear to discntitic: workers in.the
~ s e c t o r from getting tb.circndcW:UOns regi.sictcd. T o cn-crcome
this: dif:fieult-y, a s.p,eciflC provpion auy b e ~ to emble workeN in
the W l ~ sector 10 forDl track. unions. ~d get them r~istere_d
even wheN!' an e.m~.oyu-~plor.ee r~1cioashi-p does not exut or ll
difficult to establish; and the proviso stipului.oe 10% of membership
for registration of trade unions will not apply in their cue.
Tbe qumi.<ul wbeth.u some sect.ion, of worker, liJc:e 'security and
watch and wards.wf, con6dentialnaff'1 etc. be ~ w i l l berdevant
onlY for pwposes of collective bargaini.ng. and 11t11 foe the purposes of
ru.cmberdlip of uade unions, and therefore, ~ $ not call for a.ny
provision in the l:aw.
The Commis.sion .bo took not~ of the low level o! unionization
as® uie fact I.hat all tbe benefiu whicli acc:rue to worken u a result
of collecti..,.e barg~i.n..i.Ag do not distinguish ~een- th<»e who are
mein~n of Trade Union,. and those who are not. Since all worken
in tbe emblisbment reoeivt the benefiu that come frorntememenu. we
f.etl thot it is desirable to introduce the. following proyifion:
 ' , ,

..,.< ., !
58
~·
. Labour Law • I
.l
T rade Unions: Deffoltion Re,gle:lration & Reeo~ltlon
.~ : . ~-
~A worker who is not :1. member of -.myTn.de Union will bav~ FURTHER QUESTIONS ,
to· pay M. amouo.c e<tua.l to the subscriptio.o rate of th.c negotiating \; ~
<agcnf or,tho ~ t".i.te of subscript.ion. of a. wiion out of tbe n~ting :• t·
coU~e. 'Th~ imbu.tftt C1)ll~d on this ~ t ru.ay be c"ditccl to Ii Q.~. Can the following be r c g ~, as Tradt U~io 1 Q
rututbty ;cl.f.u-t fund or to :1 welfure fund ~t •ufby the: Cmplo'yerfo~ · · TradeUni00$ACt.19267 ·;:_ ·,
di,; wd£ir~o£ the worken of the «tab~.nt''ltlith-1.the approval o~
. ~ the .iappJP2tj2~ Gofernmmt under' tho·f•y~ of Wa'ges Aa, 193~1,;· (i) The All lnd.ia Cl!il S~n'{' ~~loo. i,)
d
. - •' Tfi°"•f ~ o n considen lt JlCCC$~.t ~ gro~ for ~uh~ .
.: o f •~- 0 '
,nwe
•
\llltoo
• diSrn«M' w h'eh
<- --
l .u,. atty uuputc
w ill'LnCL~ "· ' L -· '
uc:iw«.D.! "
~
..
'.'' '
Autol'»Obflc Manuf3CfW'('rs AMoc:-ttitton.
• .
(ii) T he AU India Tc,xtilc Man.J rac:tu~n• A.sioc.i1tion1Delhl' r,
,,,..,,,o,•~
(a) <;me trade. union ind another; ' ·~ ~ )l;f.'
'
(l?) oo.~ group of a:11:mbcn and anot~er group of members 'of'
· the union; . · f
Olil Indian Potke Service Officers• Wdf&ro ,\J;soc~

or Jownalists.
-~ ,.,~,
1
(~ ro ~c.Or ~ore members of thc union and the union; and r (N) Oclhi UniOo
•
..._
·• , ... t
(df 6ru/o} more workers who :are not meinbers of the unioin "1.Jld.' (~) Andhra PnldMh Agri"-lttut"t
JP~ utet'~ Union.~
ihc~ . , :· ,,1, .
{vi) Bomba}' Child Shoe Shl,,)c_~ ~• Union.. ,,..
i.o.,;J ·
· !,Any s!:adt ~~tc. ~·hic:h auTa'ltiy r;nec undh-""" :ap'prlhr:i.Qn of [D1 V ...1001-201iJ(C~ ~ 9319#9,41
- ~ u.ruo:itOr'~-wtion· rivdtles, should be ~able:,Of being rcsolvhi Dx
A.t . E.,~ti:11.Conditlons for,a l;'t adc Union •~'11 ' ,.
~ Jefeten<!e '?{ the dispute to the ~bo~ court ~vingj~aioo.Jif¥.f:
·:$-, """- ~~ ot by one or both the di.sp\ltmg paroes Or by the State m ~ A perusal of Sec. 2(h) and~• Tr'3de ':1~•
~ct~ 192~: iuid the'ei~
~ Jt comi~rs it expedient t◊ do so. The presc~.t ~tid'~ctory p ~ la~ brio&$ out: the followmg essCntul· req_uuemeo.t:S-~ecessaty, fo!
of d&littg with ruch iss.u,,, namely, filing• ~i•, erc. should be do~ rcgi$trat10n of a Trade U nion: ..+•, • ..
11.way wirh:·Sitnitar provisions may be UlCoipo!ited in law it,, f'e~ ~ .i •
(1) A combination of persons (,wo.or more);
_.mployt\Y org,ru>ati<,ns, , '
(/) • , ·. ' . l (2) th, oojaa of the combuu!"J;i'mui ~ regulation ofrelatlot!;d>iP
~ we~ recommend tb2t all federatioru:•Of tt:a.de uniOO$ as also between cmployets bttw 1/; ·b~cwttn workme~ ""'" r!, Of
:, , _ :11tfat ~ ns ol trade union.,; md federil.tiont ~Quid be covercd between employer md wOrlcnie_?; .• ' .k
:, ·· whhtn 'lJi~•'<kfuu1 ion o! 'trade union' md ~ S'Ubjecr co the ·~
(1) (3) the object C'JJl a.ts? b'e to iJi~5C'/ estticrive COodi~roru O.tl't.lie
C. discipline~ :1 primary trade union. T ha.simo dispensation will ~PP'f1' conduct of any tradt: or bustntH; ·. t.. "'
to employees'/ernploym• organizations, ., 1·
~ qJ
(◄} however, \l union :a.~y ~t'M'>m will not become.a tradC
;:;:
:::,- ~ .f~.the,~.., ml.1$t ~ ally p~-ide~ ~Y, tnde ~ n.J
1•0lj)ffifcri'?'!!'1'1oytos' orgaruumon whlcl, ,..,ncu '" membership oJ union if they-have th~ a~~'"~ io~ed ~t ·"' .. ·
t·
()
Q)

3
(/)
"I, the baiff of'c:1;.. tftlcane will Ml be al1oWcd so be regineted, a'dd ~
untt~u~!d orgallization d»U not be entitled· to any privilt"g~•
ammw:Gt:iei.\nd. rights. • I
'workmen' or, of .. emp,~~·
(S) it. is also ncccssJry tha.t tht,~pmbmanoo b~ f~{~d eimtt of_

import:nit. bciides the ob~;

r.~ the pti-#1'1 "'•tt equally
• :<
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C
lll La bour La w • l Tr-ade Unions': Definition Regis-tr3tion & Recognition 61
C

{6} the me.mbe:r$ of :i tn.de uolo n ~ •IJl(l,,J:n.t,I of the

0lU$l
Q,l-. Can ~e follOwing be registered .s Tnde Unions under the
"'
<)
(/)
elllployer engaged in the conduct of any 1ntdt/ilt""11,y, and Trade Unloru Act. 1926? E
there mu.st be a contrJ.Cl o ( e:n1ployment and the. pOteJ:1t.-Wity
t.o raise a u.ide dispute; (j) The All .lnd i.o Bonk &.:,plo;ree1• A.ssodotion.
"'
(.)
~
(7) the word ' industry' must.be understood in a tw1tmmia/seose, .<:::
and there should be co-<>peratio n L--erween 1he employer aod 00 'Doordarshan NeW1-readers' Association. ;::
the employees ior the pu.t"po.se of a made oz hwincn 'O
(W) A R.esidenu' Welfatc Auociation. (I)
[~NUJ1P17n.'i v &g;.,m,u of 'fl"iJtk VnHIM AIR 1962 Mad 2:31];
C
thu$, d omestic serv.i.nu ¢.aUI\Ot fonn .a tndc union; (iv) Association of employees employed in a Lawycn' furn for C
(8) the go\'ernmeot servants Mtf«JI form a tr-a.de union bec1use prouc:ting the economic interests of its mcmben. ~
(/)
they ue cng.i.gcd in the t.tsk of sovereign and regal aspects of
the Sbte (and Ulu$ n¢t •\\(¢rkmen?, ~d tbcootlCC'pt of 'coDective (v) As.soclation of Ttachen tcachin:g in Octbi Administtadon-·run
barg.-iinlng· whicl1 is the n.tionale behind the trade union schools formed for the pu.rposc of securing bcrter krvicc
movement, is wholly inappropriate to them ll$ they do ooc conditions.
have freedom of contnct (Nq11.Cot,trtui eo,.,.
Ojfim'I' Un-iolf v
(vi) OelM Un;v...,hy Teach..,' A"ocla11¢_, 0.lhl Unlvu,hy law
Rtgi.,trur AIR. 1962 Mad 234).
Ttachers• As.wciarion,
Oeclsfon of, the cose(sJ tn question
© An associ-ation ~f Government serv1mts r.wtJIJl}I be regiscer'Cd $$ (vu) Oelhi Joi Doud Te<hoi,al l:alplO)"<$ ,._,.,;••.
~ \r;u.ie union.
Mil) Domest~ Servanu· Association.
(~ The All India Textile Manufacturers Associ:uion/ Delhi
AutOn".obile M..uiu.fu<;tur~n A,,OW;ci.oJl can be registered as a (b() Army WJdows' we.tan Associatloc,
tr.adc union b«.ausc it is a combi1u.ti¢0 fo r regul:n.ing the
r-dations between employers UIJdrr. • ,.<x> Delhi Judicial. Off'W;Crs" As$oc.iatlon.
(,ii) T ~e LP.S. Offwers' WcJfarc Association am,rfJI be regi$-tered :u (D.U.-2007-10/Jl[C,L.C,-95; L.CJ-9S; L.G:l/-9JJ
;. tr.ade uni()n bec:au;,e it comprises of Government servanu. A.2. (,) The All lndla Baok Emptoyoe.' Aaociation cu, be reg;.,....!
Gv) 'the Oelhi Union Qf Jo\Jrnali.-:u can be register«! as a trade
union beca~ it is a combinttion o f emplc>)'~ (workme:i, o f
U?c employer engaged in the oondua of uack/indunry).
(v) Similarly, the AJ>. Agriculru.-,J Labo= Union can ben,gi>i=d
a$ tnde union. •
---~
as a trade Wlion because it it an auociacion of ernptoytes
employed in a uadc/induscry, viz. ba.nkiag bw.iness or

(ti) 'fhe Ooordushus Ne-ws-~rs Association l'l:Htlf<Jt

regis:,ettd u a trade union because iu members a.re
Gove.nimcnt ~ t s.
~e

(vi) The Bom b;1y Child Shoe Shine Workcr'-s Un.ion m ,mat be
registered -is tr:tde union bccaus-e the members ar e not (~ · A Residents' Weliue A$$ociatfoo ((J.fUW/ be registered as a
'workmen" employed in a u-.ldelindU$u-y by the employer. tn.de union because thue i.s iuithe.r trade nor ia.dusuy
involved.
 ,,
·Labour Law • I
i.-, •. n >, ., I ;t

(tv} 'fbe em.pioyees employed in a lawytt.S' fiTm "'"!«JI f~ml fl

tr.ade' W:Uo.a bocaUSe there is .n o co-operation ~~eien, diC
emplci}'U 2nd employees for die·purjiose~of a mde Q,
bU$inc'5; the servi~ rtrt<krbd by tbc c~Joy«:$ wcrC Sf @
-a perso~ nature. ·
.J' (v) Th~ o~cup1tiOn of sch~•teaebe.{$ {!IIIIMI _be.~ to ~ 0
•employment' ll1 a ny trade or industry. !fie dc&mion 91
·· • 'T-ttae! givea. in Oxford Djctionary U ~some pracitc.e/,
ociupation/bmioC'$$/profesSion ll11 a mea.ns oH1vtollb6Q<f
or gain', is much wider than what jf meam u.ndu th'.e Ad.
. tn this Act the wotd 'Track• bas been U~ by Lcgislatuk
t ih the connotatioc of a men:a.ndie OCCUp~tlon or a skilui:I '
handier-aft as distinct fro tn 9rofcssion. So a Pede.ration'of.'
. Tt'achers st'l!king registrar.ion could not hC dttm.ed tO ~ .t
·' • Tpck Union [S,P. Af;;fan!,,,7 R«,;,,,,,r, 1957 Nag IJ·
(N<i«s) 155 (Nag)l
('V, -Yt'.OU'MI ~ fl!t'gin~nod a, ~ trade unioQ.1$.;;_ p11rt (v) •bovJ •
.,.~ I; ~ be registered as a trade union because it is ~
assoeU.tioa of cmploytt1 cmP,ioyt:di.n;a. tndefcd'1"s_ trf;j'
Dork.nic Servants ~ t i o n' i'ltM-"' be rqi.stc-rcd,.as a: •
tradt: u.niM beauso there iJ no track or ia.dustry iuvolvcdJ 0
{ix)' Army Widow$' W'elfue. Association mlVN)f be registered ~
a tradt union b«ause there ii oo trade or industry invoh-cd,.,
(/) .-, . .
{x) The Delhi Juruci:il 016cen' ~""""be , ered
·-.:~1, f~
~ , trade union becaU$e. it comprise,
"' .of Gov~r
-- nmen·i
:, · as .3
. 0
.{
' " ~
:,
(1) ,.,..,.,., .
C.
Q,3.. • Can. iflc following be registt:red u - uadc unic)n$ uodcr ~
IC)
~
;:;:
:::,-
, .-.,Trade Un.ions Act, 1926'? ·

~ e t {'dvoc~tcs• Assoc~ti.?.'? fotrp~ ~l!'fti to ~

p
:
.. ift>
() ' (S
Q) tnc SC.be1ne of Appreoliecsbip introduced by the Bar CoUDClJ
3 oi ll)ij'i41.' • • • t 0
(/)
()
'
Q) . : . (jij DURA - D~lhi Uoiversity ReseateJ!ier$' A,$,sociadon.
:,
:,
(1)
~
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C

AMIT-8604000$50 Immunities to Trade Unions

4 business of another. However, coinplete immunity h as been provided
Immunities to.Trade Unions
Immuni ties tc:i the T~ade Unions 1
lrruma.ni.ty of the Tr~ Union from civil and crimi.na.l lia.bility constitutes
the Jn0$'\ important and ba.sic ri.ght without which any Tnde Union
:lCtivicy in Ute proper $Cns:.e: is not ponible. The malll object of the
unionist◊ better the working oonditions of i1:s member$. To realise
this object, union office be:i.rers ,..,·c authorised to represent workers in
any dispute ~ith their employers,
!.oterfereil<:t by the union with the blJ$l.Dt$$ o{ the employer often
takes place which cll.S\Jes strikes and this may cause Ciu:u:1ci~ injury to
the employer. ln England till the Tr.i.dc Dispute; An, 1906 aod in Jndia
t-ill the 1926 Trade Unions Act, such interferences by the Union were
bcld to be illeg;J. b)nspincics QJld cmplO)'Crl were 2"-"ar d«I da,mage5,
1"he above cn:tct.mems gr:lnted to 1ir:iide Union, offioe be:tret$ and
mcmben, "n,;u.n pri:vilcges and im.mun.itits to carry out the Je:gid.mate
tr.tde union.:.aivities witb()uLfe:;1r of civil or criminal accion i.n the court:
of law.
1, There are certain immvnit'es and' adv~ ar.iilable 11> the ~gislcrcd Trade
U.nton• rrom ll&bilily for crimltla1 oonspi1aey, breach {)f eontr.lot a nit tonious.
l tablltit• but lhe,M a,;t not 1.1111imilod 0110s. El(pt.ain tho old.o~ fOf ..,din; thoH
lmtn.,nt!IH.
Whitt a,.the ltQal p,o1e,et.:,n, to T 1a,:1e Un!Ons ~a,;,tt civil •nd Cl'lm(I\III actions
uroetr the Trado UlnlOM ACX, 19~?
[D. U.,2011.1
tmmunfty from CMI lfabtUty (Sec. 18)
65
C
"'
<)
(/)
E
In gen.er~, a person is liab·: c in tons for in.duei.ng another person to
breach his O(mtna" of employment o r (or interfering "9.;itb the'ua.de or
"'
(.)
~
.<::::
~ m civil p roceedings a11.d tortious acu co a tegistered Tr.idc Union, ;::
its offioe be2rets and .mcmben., of th!!: offeni:e of delibuawy bringu>G 'O
.. about a breach of C011U'2Ct ~ employment ~•een the employer and (I)
C
employee. Similarly a Wlion ,is protected frqm being sued for the C
of!en0: of inducing a pcnon co break hU cootnct of ~.mploymc.o.c or
i.o\.CrCeri.ng with th~ trade, business or employment of $ome o ther
~
(/)
pe~n or with the right of $0mB other pen on to dispos,e of~ Q.pit.ll
or M labour as he wills, p.roVl1ded Nth induoemtnc is in conte.mpla.tio.n
or i.n funherance o f a tnde dispute [Sec. 18{l)J.
The immunity h.u been extended to the Union for aas done by
o££i« bearers a.ad m.e.mhcn of Union ,,,,17 if done: "ic coii.~plarion
or ~ of. a_trade dispute" i.a. ~ general interest o( CM worki.ag
d.iss who _are-pemuticd legally t0 orpo.isr. tha:nselws int0 TTade Uo..iot1$.
Furth1er, induc:emen.!, procuremCot or intetfcrenc.e must be by la,,fa/
ai,aas and n o, by m,aru which would b, ill,giu or wn,ngful by oihe,
provi,ic,n, of la"." v
[11.B.I. A,i,;, KmNm (1969) 7J Cal WN 3Bsi 2 Tbus,
if the acts done. tn furtherance o f a tnde dupute involve a.oy vio!ie-oce
etc., then the iri:nrruoit)iwill no longer be available. It is to be nc,t.od tha;
pro~on undei: Scc.18 does Ml e¥.tei..d.' to libel actioDS (defamation).
The brcacll ol a cootrla of employme,.ot purdy on i.c:cou.nt o{
the ind~cenwn gene.rated by ~e :act does not u.ncler it actioJJ:able by
virtue o( ~ec. 2.8(1). Ho...,i-ver4.be ind.UC:ement mun be by lawful
~ and not pro~itcd by ~•law ?f the Jmd. further the prot«tioo
1.s limited to com.nut a b rea-cb of contract o( employment and not to
oc.bu kiods of contraet.
10.U.~,O,,SJ
.

{6 41
 ~;f..(@Jif
'- t
I.
' , 66, Labour La\V - t Immunities to Tr:l(\t"' Unions I
~
.
Sec, 18(2) pro·tects t.be t,Jni~Q, for- tortious acts don<? in i~- '
to picket 1$ ~ vc-.ry intangiJ,Je right _2 nd it ~wtch o:dy u~ to ~ r"istit
co.ntemplu-iOrt or lurthe.r;,,nc.:e of a tiia'de aispute by :ltl. :agellt Of d11f c;,l f:re¢ m(,»•c-ment of others [Simp.to.t. ~f(?_f'Okp.Ctt W~~; fr~.v
T~~¢ Union 'Without th~ knowledse or· c;0Dtnu7 to the; °eJtp*ss A..,. Ba,,.,;,, r,;. (1992) 1 L,b IJ 2~, (K•n>t.)i ,.- If
instruction.£ given' by the excicutive of the ictde Union. This P~~s' 9). In.P.~W..m.u,v Mu!:,,n &,,f; P,;/thrff'i (1992 Ker), it wuhel~
~t\c;cotpo,v1(c fw_ids o( the T r.idc Union. He.re also the :act don.e ·ml»t
h!}.jl.'I. C.:01ltcrtlplacion or funhennec of a tr:iQC o.i.sputc-. The protee~oh,
We stri.kc-:p,,-11 is not 2n·actiok~.~l'Ong. F ~ wu hdd, •
that tbe trade union, iu offi<:er$J ?,hcl. its membtriireimmune'::.
~ v.ic£riOUS liabifay cf the Trade Unlon for $UCb acts in fufth~ against log.J pro=dini;t linked wi!h the suik, of workm,n by
ofinad!;dispute by the 11,gcnt is envisaged under.the provision, JfC
p rovlsion ,1s inu.nded to protect the Trade Union-,.nd 11o.t iu :ig'tnts::
the p rovisiom of Sc-c. 18. It is ~ :within the pu.t'Vie• of chc-
Ho:\\'evet. it must be proved cOat the ilgCtlt acted iither wit.lioui th.et
civil coon ·?O prevfflt O.r in.tcrf.ere iiftb the Jegilimitt righfi of:
the Workmen to pursue th-cir; deminds by means of,ui.ke ol
-kno~J~.Q( Or. conuary to the in.struet.io~s given by the cxccut.i.ve-;",q,.( !
•the-:frade lJJ.tion. t - othel"\\tiscas also acts done.in,~ennce of a ~ dedispu~.c _
- ' [Almud:ibad TIXtili Rn,:rni, Aimadlf.tJ,i v- ATRA ~wJ' IJm'a11 t
·whit ictions are covered by ~et 18 of die Ad depend upon d-ic
~ .ind $.ieu.alions in ~b olSe:- · t
1~5 Ll.R 91 (Guj) (DB)]: ·:;f ,; · ~ 0
t,
r;j.
l ,. •
~- ' .f, 1 (4) Tli~ Ac-t ha:s n~ provided that pCricid of illeg_al $trike would
-(1) -The' acc-s of pe:teeful pkh:br,g are; pr 6tttted under Ste. 18, be'o:e't.ed as p~iod of un..;\,lthorUecl~bsence or".rel;tionship 0
Pi~ciing h.u been described ll:i-.:itb.€~ "ltJ tJAdfa befdie-.. of "employer and cmpJoy_ee::-'w ould ce.1se [U.J(R.p .S,111;i
dte prttrti.$es of ~n ~lislu:oent involwd Ul a ~ e. ~~:Ji,f ~ N~1tJt Sfhf:Uth ieo,,,,JN.:f,,m :f*'l:f~ '-' U~ s,,m n~ C."f"P-.rv.thtt~- ,
a(CC!mpani~ by the carrying~ ~isp~~ of .a sip, or ~~f~.,-
etc}• Pldutt.ng m.-y be a«omparucd by i polire request aslilllg
l,.il,.,,;, 2000 LLR 151 (AIQJ; ~ • , ,·
work en not co 2ss1u . o f t h :u' estab"-L
. •in t he il.lnru.ng u.uimcnt" or · (S) Tu ~ -e case ~~u~ ~o~. ~eJ.?~.n amplified ill!: sro~_rtf :•
the unmunJty p.rovmons. Tli,e cqurt has adopt~ \1 , ; ~ ¥~
Customers not to p-atro:1ize th1; tttablislurleJit. ne me,ho:ds • I • .J.. th , l'I. I i"\ 1
,. •of perwa.sion arc limited co ot",a.i art"'cl tiiuaJ bthods [D. c:;;'t n attttu~ m c case. . '~~, ,
• • • ~I".".
,,
·~,
~ ..-~
-r ;,-rs hlt, AIR 1961 Bom 4$9f _' l.u.olNG. CAst! R.OtfTAS INDUSTRIES STAFF. UNION v STATE 'Of' BIHAR
0

(AIR 1953 Pat 170) . · "

. :J2) . '.The_ ~icketing ~e$ ~~ be ~f1:1l• ~C.mo~t ~t➔-r~-~~.
(/)

~ \
a prcvate ot public nutS3llce. lnu;:rud2.t1q.n pt ~dulgulJ in tl#'i!!
orJwrongfut confinement of\9tfioers of the manageii_al ~t¥£:
[CoDSpinic:.y 2.f 2 tort 'tVOuld
. ~co-; ;;('~onable
. , ii\~e ~
.:ni
:, pur'J)O$e of the combination w2s ·to in.Oitt d:amage.:ta.S
:, or other rner:nben of the public in premitcs of Wt d~ngu)shcd from $U'Ving the bona fide and \'igftimatc •
(1)
t• establishment will be unb.wful ·· · · , :. · illttrcrt of t.hc»e who· so cornbfoe3'1f.the combination is
C.
· · Any.show ort~ t of violence, or any other unb.wfw threat Jilt~y ~o ~it h.. the object o( lrnprovin.g wage· P:rOsp«:ts it.:Will,itOl
~
;:;: ..} ,Ctt3tt fe;,.c in the mind of a reasonable m:ui w-ilt rcn_d er picketifg become 2.ctionabJc even if it may: affect the inktt.s t of
:::,-
• _unlawful: Piclters cannOt tom.pd peopk to list~ to the.m. They cannot ~~~mploy.e r. ' · " -,.,..~ " • ·-·t
t'. 1'.
()
Q) otit~thc'p:i"1a.ge of eustomers. goods,, v~i~Jcs, ere. It l$ not .a b'.9#. The right of workmen "to strikc.i., ~ni.e$senti:tl element in
~ .., unioB. ·~ ! or a--funda~nca.l right tinder" An, 19•.Thu.s th"e rlg.Jkfo tb.~-<:Oi:iccpt of c~UUtive· bargainhig~tiplity or UJ~ty
3 pick~~ dOftb} limited Dy the equal right o f othen "to go a.bout th~~
(/) of the .rtriRe h.a.s nd baring 01J ~c gUJStion of lJ:tU!1uJ?,ity
(")
Q)
hwful #faln ~ from obrtrua.ion, molcsu tiod or i n t ~ t ~ . Rigni futn.ishcd under Sec. 18. £mpl0)'.ft'S do _not h.:ave ~c right 0
:, ,.
:,
(1)
~

~ Labour Low I ·
cq claim damages again.st the e111ployecs p;inic.ip.u lng in
:sn iUegsJ rtrike aod thereby causing 10$$ o( production
and business:.] · .
In tl\ls ¢:.$e. the question before the ~:it.o-a High Court wu
whethenhe emplo}'ers hive any right to'c.lairn damlge.s: a-g.ainH
the cmplor= parcicip.ting in M illcg,tl ,uike and thereby cawias
IOS$ to production and bu~ioeu? In this case, con$equcm to
non-payment of bonus and failu~ to im.plem<"nt an ailt.i.ng
award, the work.i:n m-uck. Later they withclr.>.w the strike on
ag;.-eeincm to r e.fer the rnatter for arbitntion. The :arbiuators
Uaua/i:1 iiward«I th:>.t the $trike wa.s illegal and $0 the union
will not get imxnunify under Sec. 18 of the Tr.WC Unions Aet
'and the compa.n}t j$ enlitled to compen~tion. The H~ Court.
however; set aside the :a.w.ird.
The H igh Court ht~
© The law with reg,ard to the ton o( conspiracy is
now w ell escabt.ished. Co.o.spir,1,cy u a to rt must
ari$.e from a combimtion of two o r more pe:noru
t:O do ~ ~ct. It would be 2ct:ionable if the rc.:a.l.
purpose of the c:ombiD.arion i.s the infHc:ting of
dmugc on •A; u disdngu.i.shed from serving the
bon:t fide and legitimate inte1C$C. o! those ~•ho s.o
~ombine and there i$ a resulting dunagc ~•A.•
' (ii) A comhi.natio..i of t 9.'0 or more pt:rwnJ wilfully
to injure a man in bis Lu.de i$ unlawful and, if it
result~ in damage 10 him, is action.able. 1f Lhe real
purpose oi the combination i.s, n ot to injure
another. but to lorv.•3J'd or ckfend the trade o-f
those who e nu:r into it, the.n no wrong ls
oom.m.itted and no ::1.ction will Lie, although chnugc
to another ens:ues. In cases of the former d::r.s.s
there is not, while in cases of the latter cl.ass thett
3.
is,. 'just caus:<: or ext:I.IU for the action caketi [S1>n119
vs,.;,; 192s AC 1ooi
• ~
(I)
C
Immunitie$ to Trade Unions (R C
(w} If the eoinbination is with chc object of improving "'
<)
(/)
wage prospecu it will nOf. become action.able even E
if it may affcci fht interest o f the c.mploycr. In
"'
(.)
-
other ""or<a, if the predom.irwu purpose of strike
.i.s the ta-fuJ protection of any legitimate Ulterest ~
of the coml:,.inen it·u not tortiOU$ (;()o,piracy C1YeO '§:
tbough·it causes d:muge t0 tht·employer.l
'O
(iv) "It cut.not' be me:-ely t~t the •ppellants' right to (I)
C
!recd.Om in cond\k.."ting their trade has betn C
Ulterfercd with.. That right is not ab,oh1te o r ~
"nconditional ~d is qualified by variom legal (/)
limitations, e!Ate. by natute or by common law.
Suehlimitari<>asatt-.. ~,ociaies,
whtte c.bc rights of individuW may clash. In
conw=w aiwn, each onder', righm.,. qmHW
by the rigbu of other; to compete. Where the
right of bbour are concuned. the rights of tb.e
emplo~r arc Q)nditioncd by the right of the men
to give or withhold the:U' ;ervices. The rig!n of
worltmcn co strike is an es.1entul element in clte
principle of c:ollec:tive bargaining [Lord Wright in
Crofter Han.d-w,v,11, FL,m, T#'N.11 Co. V Viith 1942-
1 All ER 142).
(v) In the cue of a '"miJed motive.. or a •mixed
pwpose.. for the oompiracy. W test is wb.at 1$ the
domuwu moci,,.J pu,po,e of the oon,pin<y. Th,
test to be applied Ul a case of this description. is
- wu the domi.oa.nt motive of tho combine.rs to
benefit the. fu.od.s of the Unio.O or wai the
.•
x. • wcd.m•n of A8 &. Co., - · IUIP4Wl(lt<I' ttom MMe»• by ti.. m•MQ9fflffll.
°'
NJ Work.en Union tiook 14> the CIUM X •nd o•ve • Ucl fO( atrtce, The llrlk•
pa,alyaeO the ll'lll.lll,Y. AB & ~ . tDOk X back. ., thllr ..-nplo)\'Mtlt, bUI fled •
Civl 6UII rot cllmi'lg dam1gp to 1ht •lQlflt Of Rl•.80,001)'- ~, 10.. Of pn,duc:lon
.-.cl th• dwna,ges wf1kh they h•Cf to P'Y eo «hi, p.1,tS,t•
their COMrk:IOIII ob'foetlon5, which_,. '°'IIOl'I-AIRrwnt ol
•l•o wll'lin CM k:flclwlldc,e, of ttlot .,..
u,,,on 11'18Mbtr•. Th9 Wofbrs llriolt Nt,kf YotP l<!Yb.AIMM, (C,L.C.~
 q
, .. ! ·:1'.~ _., . ;
Labour La,~ - I lmmtin ltl u to Tude Unions ~:f: o/1
:,, 1.-.~> ,l~r ~·
d om.irt:t.nt motive' 'to et.use the· in.jury to the (viit) Further, even tbOukticJtrike auy be i!!,J4un&.r ~
clnj)loyer? The test is not what i-1 the natural r.:sult~ Sec. 24 of th~ IJ1d~~ D~P'!' ~ A9~·.1947! rul~
to tbC dnploycrt of'sucla..co'mSiiied action o/ w~rke.n :a.re entitled to:the immu.a.ity \Ulde.r Sec .,
wlut is the resulting.~ lo tho employers, but 18 6f the Trade i,J'.r u'$nf A.;., 1926,-;;ll
, g>litr, '",
what i$ in truth the' of}rtt io the minds of the illq;aliry of the ~W:itoo i,..,;,,g ob._di<;#<ion ·•
workmen w hen they actod as t.Hey did. ilt is weti of immunity l u , ~ Sec. 18. tl\c-..w-kc;r,
enabfuhed that. if tbere.is~inore tb3D oilc purpos:J demo~tr:ltions arc P..ro<ccttd so long" 1$5hey are· -
acnming a combinatioo1 \he liability rr.ust depend"
• •
on asc-en:auw:i.g L. _,_ 1
wnat _ • .J~ •
ute pn:u~musn.nt pu,pose 1,u.j
("¥' Tht Trll • .The ~ t itllOf tihari_$ the .aatural rcsuh;~
, , __•
·~
;,,( ·· 1
pcacenu aJld do not tµrn: v10 eru.
' .
. i.ri'lil '•
Thus, the High Court _remuk,d ihi/: the ovcni_din.gP111Pose of:
th~,bdustri" oµputcs Act ~."'?¥
•

~nc6t 0£ th, ¢Qtnn1WlffY.t ~

1

tO the plaintiff o f tuc6 c9fu.binecl action or what itnd not th~ benefit of the cmp1o}'Ce$ or the e.mplojr~rs.: It iS
is the ttsultlag ciam.,g,, which iftt dtfiruJanll re,Jiz,) ~rue that Sec. 24 impose$ a st-1\iltoJY..dutY on tb:e,.,i fflplor.ccs
or shOUld realize, w~follo"w, ~ 1i,-mt i:s i.n trudt Cot to commence o r declare a n ~ mike. But- it: is"~
that if there is a b reach of this $ta~fory duty on the part 0£.
e
the object in the min~ of th1n~ombinen when'
th'ey 2Cted as they did:·1, ii.Ff)! C'JJf~~11M« 0t:1 l!.lal1rnJ. the employees. the employer h~ n o'iigbt of chil a~~ 0
b#t fatrpr)tt. : t.ht employees in default ·aea~ 1.£ :tm (be st.awtO·rt p~lity 11
, ' · ·.;c, ' ~ c ,•
,(\OW h t the- ptesffll ~ . the a,-l~itr~tnf~ !l;tatM , h111 ,Ii~
$tr-i~Cw.u d\lc to th.c uoo-imp ltP.lentation Q{ iln
provided by &c 26(1),
Simw!y, il cl>, <mploJ,f ' , ~-_;,. aleg,l lock-oc.,._, ,1,.,.. d
already existing~ ~.atJ3 th~ was n o finding u l$ a brca.ch o{ the s'ututot'}' oJ,,WglU'pn created by ~•..2-41 ~ t
to ulterior moti:ves of the s1tiken. Arbitrators said ~e employees Juve u o' right o(t.iv.il ac.tion. ThC bcd'.uth·~ .-➔
1 0
that the strike "'" r~oned,to by C:llch of the' rif.rrtedy open to thed:. is·cr.im.inij ~ cution \JJ'loet s~26(.?)
Unioos •for. ulterior obj ~ o f their own_." The o(tbe Act, r"'Or the$e re.1son$,.tli~ duties ioipo~ b'y Secs, 2i.,. . 0
albitr:itOrt hav«: not found what were the '\Jteri«', 2J .,,,I 24 ofwe A<t an, ; ..ru,o,y dunes owed by the - I~ ·
(/)
objects" for which the UnionJ entcrtd into a n:rikc. • not to tbe.employef'S con~ bui·~ ~ owed to'the publieC 0
Even assuming that there ·were u!Ierior obj«ts ~•hith can be solely enforced by'diminal prosiecution un,de~
~
:, impelling the U nions to cncer'into a rink~. it was Sec. 26(1) o( the Aci. It foUowi, tbt'rcfore. th~t tbe ~pfO}-US.
:, the dotyof the arbitrators tdgo into ck question' . h:h'e no right of civil'a.ction fo' r ~ge, ~g.iinSt the emp~es
(1) as to what w;,s the dominant purpose of tb.e participating in.._,. illepl scri.ke ..>kb'~ thc meaning ofS«, 2'1(1)
C.
~
striu and whether the dominant purpose wa.s not ' of the tndurtnal Di!J>ut« A.~t. 4 ;,,, , ) ,,;-
;:;:
:::,-
()
t.Jnion.s fo-r hen.er w•
promotion 0£the lcgicim.ue iqteteSt of cbe T ri~
COndirionsforihe worken·
concerned. T he arbit"ntors b~Vc .mudirectcdr
Tbmfan, 'fiK H(!fi C()•rl /H.JJ 1N/'$11N aJ1tdl'd 4/ th, "a,-/;WJtt"
. of tu' !JtdM11n#,I.D~..i;:tu Ad U • I¼,.;,,, mtd
' ;,,,dn- Stdion 10..A, ~ .
ii~~,jar at (µ a,bi/r:llm hdr,<t~fti,,~111c:IIM u tb!;:rtH~,?-r
.
Q)
themselves in~•, and W aWW of coinpe-nsation ~ /Ix »w/UltM parddpatlftJ iii thntrlJu,krth, ~m dta tqJlit 1m:ki:]
3
(/)
to the companies tran,te4 bY tlie arbitrllton m~1:: In ,w,,,.,1 , ~ • Ii, u,;., (AJR 1976 SC ◄ 2S}, d,e Ap_a eou,, held
be quuhed' On this ground:
(")
Q)
thu the remedy f&r illcpJ strike has. to be tought ex:ch.Wv.cly.ui See. 26 0
:, of the lndustriJ. Disputes. Act, 1947. The workers IJ"C'~nl.itled co the·
. t ., ·
:,
(1)
~
. .
•

n Labou r Law • r '
p rotect.ion of~. 1S of the Tr,1,dc Unions A<.t even if the slJ'ike is
illeg:d under Sec. 24(1) of the l.D. Act. The workCr.t-' demonstntiol'.lS
ar¢ protected a$ long as. they :ire peaceful -:u,d do not rum v iolent. The
deci.~ion of the ~un:i High Cowt wa$1,,1ph<'.ld by the S\lprerue Coun.
The Coun s:tid that in the i:1st::in t ~c, the wc:irkcn could Jt,tbe
asked to m1.ke good the 1~$ $uHcred by tlie employer b~u,e 0£ c.he
ille~J strike. "Although the m-ike wa.s illegal, 'tj.lie object of the suil<.e was
'lnter-.un..ion r~-alry' 2nd ,,N to inflict: d.unag._e or de'struction on the
employers.·Krishna Iyer $ilid: "it ii' ulu~NUf>• phi» 1ha1 ,u ,,- ef (¢MJ'ir-'9'
AUWan~ int'O/,u adwJ1,1ttt t4 c!ld ajimro:itµr of tO! 4/t,'Ht hf 1/;t A1mhinati~1t
h1:l(j 1/Jt i1:1'lidit),. of daf.114§ or dt111Wtlk>n ,m tht p/mttt(tf."
lmm~ity from Criminal lia bHlfy (Sec. i 7)
Section 17 reads: No o ffice ~re:r· or member o( a registered Tr;ide
Union WU be l ia.ble tO pt1nishment under sub-sec. (2) of Sec. 120B,
IPC. 1860 in re5pect of :iny agrC>C'ment n):;tde between the members-
for the purj:,ose of furthering u1y suc;h object of lhe Trade Un.iou .u
i.s specified in Sec. 15, un.less the ag.reeruent i$ ffl agreement to commit
an offence,
Thl,l,S, the immUWty from crirnin.U liabiliry is a..-;i.il.;iblc ooJy for the
agrecmcnu entered i.mo for the purpo5e of Cunhe.riog the object$ :as
mentioned in ~c.. JS o f the Act. Sec. 17 does •« give immunity to an
:tgreemcnt t O<Om.m.it an offence. Thus, rhis immunity is pmtialin. the
sense that it is availab~c onl1· with respect to the lcg::tl a.greemcms
created by the members lor the furthcr.ince of v.ilid objects of a trade
union as ddcribcd in Sec, lS. The im.mwlity c.mnot be c l ~ for ;in
act that i:s :a.n offence.
Sec. 15 e."'vmentcs 10 objccU for ~•hich ;1lone the genenl fund
of the Trade Union ~ n be .s pent. Heo1;e au agreement between
members o f a registered Tr.ick Union ro promote any of tbosc object.$
will not be aru:t.etc:d by the offence of crim.ittal COlUpir-acy under Sec.
l2l>-B, IP<;: :wd they cannoc be prosecuted. for tbe u.me. The im.niwilty
fn:,m criminal liability under Sec, 17 is limited to those c~s and not
to any .:ig.rcement wb.i.ch is not in fwther~nce o f~}' object of Soc. 15.
For instance, if two or more mt:mbe.rs o f a registered Trade Urtion
' '
~
(I)
Immunities to Trade Unions 73
C
C
agrec to pe,rsuad.e. ~e wor~rs to c:om.-nit -wirult or such other offences "'
<)
(/)
on tne nun.:iiement tbt-y will 1ro1 be protected by Sec. V because the
E
agreement h ere is one to commit ui off~e and not to promo~ the
benefiu of the workei-s. So also_ if the membel"$ of a Union comm.it "'
(.)
any offence, they arc n0t pr0tectcd by the Act. ~
.<::::
Srdi611 17 Ii tJldJt Mu.h,m'I IO Tru.d, UmiJn adlttiliu M1ho111 w/JkJ, I~ ;::
1111i()lt ifl#n or ,,,,_,.-,H" _,, ~,d to (rimf,r4/ lial,ili!J #I/Jlt/11'11I 1/J ,xlur14,1",r 'O
;1'r Jrrih. '"1,uh ()t/xr "1t411f for w11ti1ati•.8, DH ,grinv,1100 of tbt •-o.rh,r. 4 Sec. (I)
C
17 is based o n Sec. 7 of the Eoglish Conspiracy and Protection o{ C
u
Prop,"')' Act, 1875, ame..W by S.C. 5(3) of the Tnde Dispute Act, ~
1906. Lord lorebum, in ContVv IV"adt obierved that if the induotment (/)
wu to break .t c;oni:ract without threat or violence, then it is oot
actionable, provided it was done in contemplacion of fu.nhennce of
tnde dl$pute. Thi$ l.$ fortber explwtccl by Lord E;,ersbcd in ~ v
~ ..,If there be no threat or violeru:e, and no bre~ of e<mtrac:t~
~ yet there is ao interf~nce with the tnck:, business o r employment
of SQme other person to di$pose of his <:apital o r hi.s bbour a.s he
wills, it is no, to be aaiooable, providtd it: Wll.S dc:>ne .in O)ntempbtion
o f a tr:a~ dupute.•
TIN T~U U11i(flf bai a fit.ht t" d«"1n -,id u ti# arllW! MU /11 fa,t/u-ra11~
".f lnltk di,p,tltJ JlldJ aJ 1' dt&m rlriiu llJIJd far thaJ p1upo1.1 to pm11dl th4.ir
m,mbtn to ablfaJ'n.from lhdr wr4. Sec. 17 pen:niu sucb"acu to be dc:>ne
bur ,here 4. nothing ·in the Act which apan from immunity from
crimi.n.al <:Qospiracy .tllows immunity from critniul offences. The
i.mm\uiity ~ .oot extend to an agreement to commit an offence or
i.ncim.id:u.ion, molestation or v i ~ anlOW3ti.ng to a.o offence. P ~
strike or gathering is pe.rmitted. But whc-.o it re.sons to u.nbwful
confmemen,t o f ptr$OP or criminal trcsp~s or there is indulgence in
criminal force or criminal assault or mischief to penon o r propetty
•· B• lc,,.. ti. pe,nlng of thll Traci• UnioM ACA, 1125, ttl• woltlftMn collld 11c,r
~ •nd pMIG!pete In •trl.li:~ bfflProvrnonl of thetreonditic,ns of ..~ .
.Ii.
In 1918, there )YU • airllko t,y worbl'I In osrtaln MIii• fl Madra._ Tl'lf M"rs•
Hlgtl Court awerdld Rf. 7&_000,. u ~ •nd lmpri10nmtm for SI\. B.P.
W.& under the c:on-mon law pdncl1)61 of 'illegal con•pin,cy'. a nd, 'oombslrion
tn resin.id of tnlde tor o,v.nlllng tbs strik.a.' This lnG!dwit led lo a;h!lon by
the -'t.en. le, tt1• trllde union,. utief, Trade urnon,Act. 19'21 WH
pa nod.
 r 0
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. :I' ~

14
-~ Labour Law ~ 1
~
Amill.unities .t d :;r.T ra,d e· Unloru· ~ i
1· .,:
--;
.
1--?S
•
€J •
'
f. tp.{i;e is no ~emption from liability [lt!S. lwi...fut,v 'Empm,,· AIR !935 In spite of this j ~ ptonOu.nc.eineni. tlie pn1,ctice of Gm# lS
- Na:g 149]!. Slog,1p:'shouting is permitted, but using 1bus.ive l:in~g.t re.59rtcd to frccty by the Union 1-eadeq. to .coerce the•rnao,een{ent to
, ...t.o<A•3.t'(ij,ihC employers, thti:- m.ff$ '3Jld vis..itor.s are subject to ()ffttr aocede co t.be dc.ts:iancb put forward by the u iiiOn befQte rli'e: ·
m:uugement. . ! . 0
la~s of-the lt;id [Wt.rtu,, J,,di:1 Chu &,ple,ttr v Fi/,,,~ [>~,i.).Jd. (1981)
.. .
U:UJ.J9Ji • .
N •.it ~.
·...~
.
.,,,
· \ ;ra ~-g~e-~ed Trade Union 'Qej
o.n llll~. ill@#mikc :lOCOrdi.11& lO
lu.oN> C.S.: R.S. )WIKAR·v EMJ>EROft' ~-
(AIR, 1935 Nar.
' 1 ◄9J .
.
~c In~~-~~put-e-$ Act_, 1941 then there is no ii'nsnuoity from the
()'{!€:~ce of ~r unmal conspll'.acy bec:at1$e going on an Ulepl ttrikJ is ["ft':ldc Unions Me not lia6l'e, civilly for sci.fr,
·a cts or,i
~u~~abl! unde-r Sec. 26 of the $.ald Act ":hicli is a speci21 bw. l#;J,i! ~~ally for conspi~y -~Q f'~e.ran.ce of suCb am ai{ 0
LS so lxca~sc S1c, 40 of LP.C. defines an ofietlce as a thingpunisliable
Trikle Unions Act permits,' but.'tbere ts notning ih that·
uod:!~ ~·-':- o; .u~e~ any special or l«:a.l ln.·. Th?S, rhe.i.mmuni·r~ Act whkh apart £r°m ~'!rt.!.~ff~!1' a ~ C ~
(Sec. 17) allow.1 immuruty'fr'?ffl ~any crto.tiq.al offeoce.s.~ •
f
fi:om criminal li.,\,ility" limited only to the·= ofgoing on lig\tl:.li:!
p~a;;i.... r The-re is no immunity if tlit set falls with.IA tl\e_.$C?l)e of
~ JF,r} 1,d'~ St«IC• lJd. v A,tt1t(l990) 2 Lab, L.J. 133 (II.~), · Sec. 7 of Crimlttal Law (Atntndmcnt) Act, '1932:] . .
hi till$~• tbe applkani R.S: Ruikar l')>resideot'Of Nagpw ""._
~a ~N1~·YD:0!1 le1.der ob~tn.ieted wo~k in the factory for five h~S
;,ro~fttr.&agaw.st d.eput:.mon of workman to work in :tnothe.r soc:udk. Textile•Onion)~"#$ ¢0.0.vic:ted ol the abctme.nt ofihe: offcnc'cl
It ~:a.s h fld that ii Trade Unirin ll!"ll.cl~r ha.t .110 right m· J:aw t9 tb.J.N'I of molestation defined in.~. 7. q_firili~d Law ( ~ r )• ·
~~en_ ~ ~wers: U'1d h~ ca.nnot dictate-any worker indi.viduallj,:ol' ro Act, 1932. The afo~d Un.tO_n caU¢d for a strikC.Ott.atilt -!'
, Wo~n genenlly about the m2.nner in whtch they have to do thbir • workus i.n Nagpur on the gfpalld tliat Oe.ruin,tcrna of tht
·9,-•ork."Wh'ilc in a. f~ory, the worker mU$t submit to the iosO"UCtidni setd~cnt had not been honOured by tbe Emp(ii=s Mills in
. iive.ti.~y ~ sUpcriors. ·A tnde un,ion.can esp'ouse•the c11.use o{ t.be N~ur. ~ Y ! die~ f.Uuia-ucte$Sh11_. thui. ~e uruoo 'J
decided on pkketi,,g. 'Ih, Pre,,cl<fu otth• UJUOn m.:lli ,po,a~
'°"'o~c~ ~~ ~ tt-S ~rt to b.wful 2'i~•tio~ {or as.scrtUlg tbcirri&b;u
, .offiea:~s o( trade u~on are not cnotl,ed to order a workman to stOp
~J uking dw, wo.r ~ to do pickaing d'uring the co~
of whlch
1 li':tyo~~ ~r. o~~ ob~ct the.?'Ork of ~e mablisluneru. A ~ two women picketers· we.re 6 . ~ by the poli.CC,<1'nd driven
~-~ no·unmuru<y agoicst disobeymg order,. AJl cmplo)F.
(/) away. At th.is, the applic:uu brougb\ hi$ wife \0 Olle''Of the-~ :.1 •
~
.~ w
:,
1 ~y.de:J. wit.la a person cal.&$.i.ng·obnrudion in work effetth-dy. · ! t,at,ef; and p0$ted her there with. i.nruuctiom to beit> with hef
sllppen, anyo11e .,ho interfered l.iitb.her. ..,,. . ' "'.
:,
(1)
{lri 'fat, IEr,§Mnf,rg Wq,h Ltd v Stda ef W~t B,., (AIR. 1968
r Oat .. . . . ~· '~
Th,e applicant was arrest<d.,p,rOS<!CU!od and couvia,d for "'
C. ~ ,"the C:tl.eu~ High Court did #N;1ppt'O"Ve the tttftniquc of •c;1,; J,?
~ ua.legal mean, tO get redttss of dte gr~nces of the workers. Ct :_,as .J,amen, ofp i ~ undct S.C. 7; Crimwi Law (A'dieMmcn,)~ ·
~ Act, 1932. Tbe·p~pal colnention OJ!.bch,lf ofd,'t,~t J•
;:;: h&4:.U a person or: number of person$ wron$fullr corifine anothtJ
:::,- J)ttSO,,.n ,or pe~nsJt is tleme.rmuy that it comes under: Sea. 39S1;,:3'f<) is. Wt on the c,eu found ;a.~;f,im no offe'nce ha.$: been~,.. 0
() read ~nh Sec~.•3 41/342; !PC a$ the case maY be;and 41,mtJ! be sa,;.·ed c:ott1n)iu-eduStt. 7> Cnl».i.llU)i !( (:tiOlC'ndm.cnt) ,Att, 1932, ,t. I
Q)
' by Sec. ~ . 1'.nde Uniom Aet or utd~d ~:r. provision thereof:· Au can have no·application m tpuf'¢1y:industri.tl dJ..s)bte$. I~ is .._. 0
3
(/)
,. orlane
w
~ l' ~ , _ • • .. ~ •
n OOrJJ.U:WJg or tt.st.r:WUt1g :lt'ly peao.a'belO!lfPAS to ~ t cOO'teoded tb.u tbCva.luable'ngti~,pven to Trade Unlons'to ; .i.
(") o, wro~gfully cowu>ing him during t,J.l.r.,,,•-.:m:guilcy under S«s. J<?? declare a $trike and.their~ from liability for c:ritnini:il
Q)
:, ; andB-40,' IPC and had committed c;o~bJe offCncci. · · oompiracy or, to civil suits in connection with the ~ c e
:,
(1)
~ 0
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76
Labou r L aw - J
o f ia $trike js ta.ken aw.1.y if Sec. 7 U held to be .ipplieible lO
trade d4i,uta.
T he court obstrved: T r:tde Unions h~ve the right to
deduc sirike :and to do ceruilt acts in funhd ance o f u-.t.d c
dispun:s. Ihey ar~ not lkbk civilly !or such 1'<!t$ o r crim.in.ally
for conspU'acy in fultbc-rance of such ~ :u: T rade Uni.om .(\ct
peitnits, but tberc is nothing in that Aet whK:b apart from
immunity from aimin.tl oorupiracy allows iru."'nuruty from any
criminal offe.ncet. Ind¢ed any agreement io commit an offen«
would ~nder Sec. 17 oft.he Trade Uoioµs Act make them
liable for c riminal co nspiracy, Stt:. 7 Of Criminal Law
(Amc-ndmem) Act is pan of the criminal Jaw of the land and
;an offence committed as defined in chat section l$ an offcnae
to whic!, the ccu:icluding sentencie o( Scc. 17, "l'rade Unions
Act-, applies a.~ ,much as it wou14 do to an agrtt!ment to
coin.rnit inurder.
Th.e coun thut held Ulat the offence under Sec. 7 of the
C rimUlal La'>{ (Ainendmco.t) Act, 1932 which prohibit$
obstructing :md use of viole:a<:c or iot.imiduions a.nd loiteri.ng,
etc. i£ done "«·iUl in tent to caU$C ~y person to absu.in from
doing, Or lo d o any ~ wh.ieh such pe.non ha.s 11 right lO do
or abstain from doing., is an <>ffouce mentioned in Sec. 17 of
the Act- There is M immunity if th e act fa& within the $¢Ope
of Sec. 7 of the :i.bo-ve Act.
WDINO CA.st.: STANDARD CHARTERED 6'.HK v CHARTDW> BANK
EMPLOYERS' UNION
(/ 1996) II LW '2 (Delli
[Even a$suming that the defrnd2nt union is entitled to
go o n strike; ir cannot exercise the said right so :as to
c.:uue n~isance to the employer. The fn:cdom of speech
and right to form association gnntcd by the Constitution
did not confer :a. right to hold rnttti.·og ·a.nd shout slogans
at prcruise.s, l~plly occupied by another.]
In thi.s c:ise, the plaintiff b:tnk filed a suit tO get a decree of
perpttual. inju.nccion lo restrain defendant employees from
~
(I)
C
C
Jmmunt t'ies ·to Ts:.;ade Unions n
·
"'
<)
(/)
~ting 2nd ~ g other employees and to resort to strike,.
boldi.og .of demonstrations, shouting slog'Ul.S, resorting to E
dhant.J1, 8ml'QM and p~tling up lo~ken withiA the radius "'
(.)
of SOO metres on alJ.sides of the plaintiffs' br:tnch.
Tbe iS/111, was whether the defendants have got the rigbt
to go o n strike and ~bee.her there could be any order of
inju.oc:tion apinst the defendants.
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~
'§:
'O
(I)
I.earned Counsel for tb.e ~fend.a.nu cited the cue of
C
C
8.R. Si,y_h, v U11iM (f/111.diA. The counsd put rd.itnce on the
following observatic;ms: ' "'
<)
(/)
"The right fo form associations or unions is a fuoctametttal
rigbt ...,.i.,, Article 19(1)(c) of the Coruim.cioo. Sec. 8 of the
'Frack Unions Aet provides for regi&trati.on of a.tr:uk union
if all the requireme1u.s: of tb.e sa.id enactment are fulfilled. The
right to form associaci~ a.ftd WUons· and to provide for their
regi.stntioo W"U recog:o..i;ud obviowly for confe.rring certain
righu on trade unions. nte ~ t y ~ form ~ns is obviously
for vo.icing the rlernaads ~ g:i:M!;V'~ of la.bow-. TIU# ##icnit.ll
ad ar fllOfll};pkaref /dJoilr. The ureagtb of a trade ~on depend$
on its mc-mbc:rship, Tli.qc:fo~ trade wiions with sufficient
membership urengtb arc able'to bargain more effecti:"ely with
the managements. This ~ ·power ~•owd be considered
reduced if ii ii 11o1 Jxmtfllul 1a .«~lnJlt-.
Strike Ula given situation is only a form of demonsuuion.
There :ue differen.~ modes of demonstr11cions e.g. g~slow, sit-
in, work-€0-rule, absenteeism. tic. and strik~ is one such modt
of demonstration by workers for Wir rights. The ' right to
dtmoostn.te' and. thcre:fme, the •right co strike' is a.tt. ,unporta,at
weapon in t:he armoury of the workers. This .right bas been
. _.n:cogn.::ud by al:nost all democratic countries. Though not
raised to the high pedestal of a fundamen tal right, it is
rccQgciz.cd as a mode of redre;u for resolving the grim.Jl~
of ...... orkers." ,
Tbc Higl.C:0..<'- 4f°ldth.a1 iu page 270 of the B,R. Si,gb
case, it h:u been ~ed:-Sut the rightt0 mih is.lfdlabol~
 t 0
I ~
Labour Law - I lmmun itie& tO :Trade Unions : ~
•• ,..,., 0
u!lder our industrial jurisprudence 1tnd ttsirictiOni: h:i.ve b'#n ~ in mind cli.u \bey eannq~cawe nuisance to the P . ~
pla'ceil on k. T~ m also 10 be fo~ i.a s.,,:·10(3J, ,1 0A(4A): ;, . orouiers.• ·t~~•~~- 1 ' ;, ~ .a.

~2 .~nd 2J ol die lJ1dU$tri:1~ O.ispu~, A~:·1947.. Sec. 10(3)

Ullpowe n .the Appropri:ne Covetnmcnt to prohibit the
n.J-tgb Court d~\Ji~juitof tli• p!aiali ~ bi;
1·C$t.raio:mg the ~ t u.oig~lf?mJo.ldi.ng ~~estnuo~
~ ntUl.uattee of :i $trike if it is in i:Ohn¢Ction with a dispute etc. within a ~dil.1$ of 50 ro!tr~ ~ m the sun. pro~rty i;e.
·re.fr:r.red to one of tM. foo. e:rcatecl u.ndcr the s:uci $tatutd. Sec.
!OA(-iA}oonfen similar po.,.,.on thc·ApPmpriat• Go\:.mm.n, ' batik building. The.
coun obs€r4/J: ;
~y~ -J .
I _
As for thcimmnniryof~1Ltijon uncle.rSec: 18 o{ dfe..i•
i,h~ the industrial dispute which is the c.ause of the strike is
? ferrt,d~to. Arbiuacion utd a aotif101~0.o in th.at behill is Trade Un.ion:s· Act in ns~ ¢(~f W.~one j11 futtber.tD.oe of
trade dis.puce is oonettned., it.is protected only by allo~
e
iuu~ unde, Sec. 10(3A}. ·
, , "- Section 22 o! the lodustri1.I OlSp!.ltesA«, 1947 layi do~
· th~t' no ~non employed in public µtilify sefflcc shall go O.n
-
Rel4'Vil!}ce of lmmunttles un~~ ~!:--C onsumer Pro~on ~
.
demon..str.itions at :t distance Of 50 dt",100 metrcs.6ll).cctlUSe$,]
- "'.•.T"d , . ;.
0
~ tflke id br~ of contract with~t gfviog the cmplof~r .a ' " , )l ...
l.t.At>IHG Cuc COMMON, CA~Jv ' UNtOH OF lNIMA
0
qot..iCe witliin six ?,'eeks before striking and,within 14-~y.s of
gi'Ying of ruch notice. 'rhe Ceo.tral.G ovcr~ntihad isruNi a (1996 (2) CPR 39} f.
notification undc.r Sec. 2{o)(vi) ~ wh~ cheBwtiJ.lg i.nstit·utc:,~ ;- [I'bc p;O\'biOD.$ of· s«,:•,l8~ T ~J. Unlort.$ ACt do tlot
"f~mcnfioned .11s one of ·the specified lDdwtr.ies of public operate as 3 bar to the' fiUd.'a 0~'2-·complaiftt~~ihstr.a
~- , •' tntde union under thC' ' provisions of t4c ~ onswn:er :-.;
er- Al)iln from chis, even asswn.ing"th~ they are ~titled ~ l
•
. • .. ..
P rotcc:tion 1'-c... . •
:,e.l\.~
· .:. ~ ~...?•··• ,n .
• ..
-g:o on ~trike they cannot exercise the sai'd rightsd u to' cau.k Io the cve·ot of ddicicncy ,in st?Yice-and consequent loss- •
nuis:ihce to the employer. T heir rigBc to go'on strike L$ not being •suffered .. by. passenger$; ~X!lli.tt~ by, ~ ~)\.lrline,
rnu~ tro: ~ th'e Ir:,d.i,ui citizens when tf1'ey W'Ut to cr.crcisc die aCtion under the Consumec~ rotcct1ou :Act c:an bt
fund2me;nt21 right to form 2 union and tO havedett>omtntioru .... ' .
ifl$ituted ilot only :igairut the Air line, but aho apin.st
.,. .
f~r the l'ediessal of tbcir vi~'".LDCeS. they ha~ got to ttrncmbci- the erring member: or group-of mc,mben of it.$ COd:,ponent f
(/)
that thcy have aho got a reciprocal duty~~ to cause nui.unce staff responsible £or the defiCiel'~ iD: set'Vicc,]
~ or m,,,fial or phy,;,,J danger to thcireJ>1PIQycn and others. AJ
:, In this case, ·the eop~Cl' o~~ ~o.o '"Commbfl C!.Ause~
:, tl\e el1)ployer can move·di'e~ , ..,a the Govern:a,;nt sough, rtdrfflal of ih.e grievo.nce o ffoir p:1.$$t?ngers who were 1 .,
(1) i an refer~ disputes to the I.odumia1 ~ it is cqu.aliy open
C. pi.re.to gtt"At afflO\Jll; of ~onvea"ierf~:w ho.rds~p ~ account ~~
for the defend2ttti to ~ppre>atch the Ltbour Coun to challen~
~ of disrup;tion of a !arg~ ~~~~9~~ghts o{ Air Iodu c _ ,~d f
;:;: 'I ~ i n~fer. The defendants cannot talte_the Jn, in their bands
by reason of a :sudden iirike'"te$0ried tQ by M.cml,~ o! the
:::,-
()
and beh:tVC -1nd act in such .a tLUJU1er sou to cause nul$.incc
to other.s: No d oU-bt- i.t is their conttttcio~ that the transfer i~
lndi:in Fligbt:E.ngineers Ass~t!Odj(a trade uruont, The _ca.$e·l 0
of the complain.ant was th-aq't~c-r~ondcnt~ • At, ~!1ia .~
Q)

3
I.Uegal ind, therefore, t.bty arc entitled to go on strike but for
t;liit pu~ thcy must foUow the pr«e.dutt lald dowo by
well as Fligni Associ,nion • Q'V(c; ii'" duty to the ~ngers ~
1
e
(too.it.1.rpe.r sj to stt tha~ ~e ~rr1~if ~ch.had_be~ hired t>r,,j
l.
(/)
(")
Q)
se'b 21 of the lnclustrialDisputeS Act an,d. after following the
~J',pioccdure they can exercise their right to ..goJ n strike by
them on par,mcnt of high ~ s by way o r auf:ar~i,,Was duli. 0
::, pe.rfonncd ~;ithout a n y ~ - __
:,
(1)
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0
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00
Labour I.aw • 1
The Nation.) ConunissX)n ~blmMd al)d IN./¢.
(i) In the event of deficiency i.n service~~ COnsequent
loss being ruffered by _paS3ettgen, anion under the
Consumer Protecc:ion Act, 1986 Cll.ll be institukd
- Oot only against the Airline bu; 3Jso against the
er-ring nt~bcr or group o! member$ of itS
component s.uff n:$poosible for ~he deficiency in
service.. · The argument of lac.k o f 'privity of
co.nmcr' as bel;',1;,· oc.n the ptJ'$OIU hiring pr ~\.uling
•<>f the scrvjcc ::ind the con~rtted em.ployeet if of ·
- ;a.vai,l. T he pc.rso1» empl~yed on·salary in an
o rg:ini-ution 1Vhich is rendering ·service for
considtntion arc. eqw.lly arneo.:able «> the provisions
of the Act along with the.-~fianagemcnt o f the
Wd orp.u.izarion.. · service $0 far as to render the B1;nk liable to pay
(u) The.re ism riglu i.n a.ny tta4e 1.mion to resort. to iUl
illegal $trike in co.lltr.L,•ention of the muicbtory
p,...r,quisfrcs bid down by bw govcmu,1; lndustriol
and Labour rd.;nion. T he .,-e.ry pUl'J>()$C of maki.u.g
the '$CMce of not.ice' of stipulated duration. (belorc
d,c sttikt) ~ t ory i:i to ;avoid sudden diMuption
o f t he industrial activity which nuy rmdt in gr.ave
artd irreparable h~rdship, inconvenience and 1cm
, o rhe members o f the public.
In the p-rt!$Cnt c-..ue, the ,-uikc in qum;ion was •iJlepJ.• as it was
rt.sorted to .i.l'lh?ktduc pri0r noti.«-. The s.trike faut1ched by tM'
Indan Eli-gbt Engineien• Associ;ation being illeg;J, it could not
be rtgll,t'(ied a$ a kgitinute tf\\dc union activity. Therefore, they
were responsible for causing disruption of fi~ts res:uh:iog: in
great inconvenience to the passengers.
(iii) The prov iiion.s of Siec 18, Tcide Unions Act do
oper.:itC! :1.s: ~ b ;ar to .the fili.ng o f • c¢rnplaint
,:,!If
:ig.,.inn a tr:1.de union under the prot>i:sions of the
Coraume-r Protection Act.
Sec. 18 o perate$ only to ~ bar to the i1mitucio1t of a suit, e,c.
in any civil court 11pWt any registered union in respect <>f il.DY
- ---- ~- - -- . ' ·---- - - -- ~
(I)
C
C
Immun.ities to Trade U nions
act done in com.emp,:ation or fu~ennc::c of a tnde dispute.
"'
<)
(/)
= The fonconstirut,i;I tw:krthe C:R A,:, UC ..,civil Coutu. E
Funher, the b ar imposed by Sei;. 18 is .in respect of only
<=c:rtalll types of cu.i.ms ~ against a trade un io n in respect
"'
(.)
~
of :any~ done- by it in eonte.mplation or fun-herancc of a ,<::::
trade dispute. The complaint filed in the pl'CSent case dot$ not ;::
fall within ~y of th~catcgorics dnc.ribcd in Sec. 18. 'O
(I)
Gv) In Co.•ntmrr Ulli!:Y ¢ Tnu1 So.T.'r!'J, Co!aaa v ~ 1 1 C
& M,--.i~ o;,,,,-,, Bo•Ji ef &m,,;,, [(1991) _(I) C
CPR 263), ilie Natio.nal Commission had occ.u1on ~
(/)
to consider whether th,e failure of a Bank tO
conaucc.banking oper.a.tions from its b randies
duri.ng the period of an •illegal strike' resorted to
by it$ employee, would «>nstitute deficie llcy in
~ K >n under the M, co it.s account holde:n.
It wu held that since the swpieiuion of Banking
operations W1$ the direct c:on.sequeuce ¢! ao illeg;u
$trike involving unbwful obsuuctian by the striking
workmen of ingress into or epu$ irom the Bank's
Olficcs by the officen and willing member$ of
staff. it rtn1,w1 be said that i.nconvcni.c.nce, lost Or
injury ca.used t0 the large number of c::omtitueo.ts
of the Bank wa.s a result of Dl!Ae:nO! on the pan
of the respondent Bank uia chat it was a dear
caie of exceptio:i of •force majeure. •
In .;.., of the ,fo.....;d ruling. in th< pre,e,,.t a.o, no ~
bad bee.n nude O\it against Air India and hence the.re .are no
valid grOWlds for the: awa;rd of any compensation a.s again~t
the Ailtne. However, if. in any g.ivcn c.uc, ic is Jhowo dut the
mil<e was aot illq;;a! al.! b.d bee~ oc:casinoed by a n y ~
on the Airl.i.n.c'$ pan in the performa.nc.e of us adm.iJ:iLStnta~
fu.actioo of good govttuance a.nd nuinte~noe of proper
· employ,er,,emptoyCC rcla~ons, different considentioru may
probably apply. .
 L" t"" JF:?..
•
·:. 82 . Labour Law • I tmm u nitiei to Tfade'"' Unions .._ "l
(v) In cate, iimib.r imw:ices of diiruption of 3 e ~ WJw
.
will be you.r m'uwcr fnlbf roUowing sltwiu0'1S:-
" '
by 1/Rb7/striltes or agittti.oru come to the n.ot~ of ., 'f't .
If lhe w«kc.n .It.ad S-C)ne 1;1n stut; tO prot~:1, cbc nc..fjndUJtdal
th is Commission, ill Cutu.re~ on the part of -Fhc
·· employees of iany o~t1U~tion. l'ffldering s.ervitt
r (i)
policy anaounted by the
.
1

9°;~t? ~ . - .~ .
ro· the public for consi~r:ltjon Or 2iiy 2ilocidcio~ ..~;/.
-:. . ,.
o r \Inion of such employees., the Commission will (U) The• wik.ing Workers•prevented
,.,1 die
;.... ermy of loyal• WOtkert lnfo
•
1
be dul.ing ,vitlt the miiur i.rt ~ W!r)· $tn(:t awi.oer the C'itctocy and the tr~ o f manufacruttd goqds Q .,.. •
the factory. ~: · »c
1
and will have no he$iudon tO ~Ward proper • ---1 • . ..
com~nsation to rhc consdiru-r who ;U'e th.ere"by 7t' ·' • r
1 (~) The Union hired. 'goond~~~ P.9fC~ diem at th'f ~CO of
' Jfe<:tccl and "gg:ricvcd. If, b?wevcr, the disruption 1. th'1 empk>yer•, pre,misC$ {or the pu:pose of picketing and they
in s.ervict Uthe consequence Of a .strike or a-gitittion
W •launched, ,,. proci,dii,gs_tii,ck, du: Coos= \','t~ asked QO( to fndu.Jgc io ariy:•violent actt\'itic¾'. ·:rt,e. rrrtke.i
wl't.ieh lasted for 3 d_,y, ~ ,a pelt lUCC:CSS. .".. .~
Ptorec;ion Act can bC· instituicd against the
emt)lO)'Ct$ or t.b eir Mdciati.onWUWons, i,. {iv) ~ ·di.$pule reU.t~ ·10 ·tbe re~~~ of wag~s~~r,. t>wl,rig l•.
-It J'~ furt!ier held tlut eve-? in th~ c~ent of.a 'lawful strike tho atbitnuion proet<edl:o8;$, ilJl (i:~ro~ dec,i,(ffi:f to jo On arilce.: f;'
~mg launched after due nouce,• there. ~ 2 ilufy on the p;trt o f Union resomed, to •piekb,ing• 4,n(t ll)ey •~o .,,
Th¢ m-c:mbcrs o£lbe
the ~ment as well as the Trade Unions 't o take nocessari distributed l~ltb. 71w ltrils:J ~s~ for 3 a,.,;:z. ..
GtePG "-uffic'.i.cntly i.ft •d.v•noe to dtc cqpj~', ner_~gubli,c: by th.¢
.·•par,j~
'
o rgan.isation on 2';coum· of im~nding strike so that
,, ' .
'
,
A.I• In th~ prest:nt aK', .duriois t ~
-, ... · ,(C. L.C.- 12/.9Jl~t!/'!$J
·~ urse ,o f ~cefu! 9!!:lq; $ ~
·members of the public m:iy nuke their altern:iti~ MT'llngcmcM:, of the w.orkers became violentil:d C2uscd rubStani:iaJ 10$$ to
fr .they
·,
wish to do so.) ' tb.e =ablishmenc Th"" ..,oi~.~ f be crimin.Uy"andcmlly ·
liab;le (br their.acts. Howeitw: tiQ &vi1Sult or eruni.rnll ~~n,g
PURnCER QUESTIONS
. -.,ill lie ~gain.st the officc.be'.attp ofJ he union (m Vie~ o{Sec$1 _

(/)
0
Q)
:,
>

Q:l. "nt,ere wa, • dispute berween·lhe ~ e n t of]( & C~ ahd

, 17 a.nd 18 of .the T rade Unt6ns ..Act) bccawe die~ Qf•
delinquei,:t WQr,keri ~re coo.tc.li-y.to· their exprcu inrt'ructioOS
and there is no •viciarious ctitnliiii
r;
liability withoUt common'\• ~

intintioo. . ~
:, its Workers Uokin. The said dJsPU1e '\¥~a s rtgardln.g th_e
(1)
C, rcinstatemem: of a co-worker. 'The •
Office-bearers
•
t1nl0:t
of .I" t
(i) Ii ~he .Workers had gO~ on Jtr-ike to pro~ the OC.Ji~
indus1.rial policy ao.noulicql;1>71,H, Goverrun,n~ the of6c,. ·
'e'
decided to go on suiJce without ~SOl'W)& ro vioience. However.
~ , • i r bearers would be liii.bte J7Jr dtm,,ges., becaU:Se the,n the
;:;: during the oourse or Mrlkt•, aornc of.the wor\'.CrS become violent
:::T •nd caused sub.stantiaI loss• tO ·the cs-iablhbm'ent: The
strike would not be i tt ci?flf~f!tion or fuitl:(c~ of a
irade dispute as dctlllcd lo S«:. 2(g) of thc Tn~ Unions
()
Q)
~ement wn.nts t0 me a dVU sUit for (he ret()VW)' of
' .ciamai-cs
. ... ~
anc1·1tt1date a. erlm.l:nal ptocecdl.ng:· against die effioe--beartr$ ef.:
A~ 1926.
;
~-. .
,.,. ~~
Ir ,;
.
3
(/) Unio11.. WilJ it suc«od? Gq , Prcveonng die enuy ofloy;tl worker, in,o the .faao,y; ecc. .
0
Q)
:,
:, •
I
• is a e r ~ offence. Only ~ ~ picketing'i s } ~
:
..
~ 'i -
.
(1)
~
0.
 ~
(I)
C

AM IT-86.040003 50
C
84 Labou r l.n w - I
under Socs. 17 and 18 o f the ACL _T hus. th; union would
"'
<)
(/)
be civaly,and criminally 1U.b14. E
(d.i) The act of the union i.n bi.ring 'goOmbs' uno w tn to tM "'
(.)
offence of crjmimil intimid:i.tion. The_m~agcment will 5 ~
auccced in crimirtal pt°oc:ccdings against. tbe o.ffi<:e-b~rcl'$ .<::::
o f the Union andalso in the. civil suit :ag;i.inst the-union for
The Industrial Disputes Act, 1947 ;::
the loss suffered due to strike. Definition of Industry ,::,
(I)
(1\1) The act of'the union in going on "1ike du.ring the pendency C
C
of arbitration proceedings aOOO\J.Ots to an o ffen ce under
s~ 23(bb) of the lnd"'1Z;,J Dupuw Aa, 1947. Ao illeg;al ~
(/)
strike is not proteeted under Seo. 17 0£Trade-Unions Aa. TIM objrd of tl,r i1tdN1Jrial rt/a/kJ,u kd,tla!i.on i,s :,ural it bu//lmidl
Tbus the o ffice bcat"('rs a.re criminally· liable but Sec. 13
pua t1n.d tf"Ronn'I' jiuda. T"IN obftd of IM lndlutnal DUJHttu ~
gjvC$ Ulem immunity fr0m ·civa act.ion as: they have only
1947 111 l#id thn i11, 1bt ,!N'ttmblt of rlN Att it to 1111JA, J)m'iM• for
resorted to pe2ceful pickcti.n~.
tht i,r,wti§zti~n "'"' .1tttltl#w "/ il}d:nfriaJ ditpllus. TM obftd ef 11U
l.:,l,011r l~h1t.'o,u U kl ~MMn fair ~ a,uJ 10 j)rrMKf dirp111u so I.hat
pft.NINfliOIJ mg/Jt '101 fH 4tft.m-t!., PJ't<Ud.

lndust.riet Dispute, Act, 19◄ 7

There W,1$ pr.1eti¢.1.ily no effecti.,.e cmchincry in lodia uotil the Seoood

World War for serut'n1etlU of indUSUW. dispute-s. The 'Botn},g;y lndu.m-ial
Oispi.nc:s A~ 1938 was a.n i.mponant co.actmcnt in tws direction. Outing
d»e w~, Sb,te .intervmUoo W. the ~ n t oC iodu:strial d&spuu:s bo:arne
~ 2nd nuny adjudicuors were appointed Utlder the Defence of
India Rules. The 1947 Industrial Disputes Act is the first effective
mc~urc of •A .ill India application for the setdcmeat of industrial
disputes. Uodtt this Act,..,;,,.,, uiburul, h>ve po..«! ,wu<b .-.g,,.',.tir,g
w:tges and other relations in DU.DY indu.nrit$. The Aet regulates the
relatiomhip of employen and employees io. many maneri irrc~i.ve
of whether the employer jg the State or not. Tbe Act streamlines a
net-work of niacbinery md authorities niP.ulating their powers and
p~

l85J
 ' -.,,
,, 1"

~
. .
Q•
86 Labo ur Law - I ' lndustri<!,1
. Disp u te4 Act!' l Deflni't ion of 1na• •lrY
.1 ·:.
rr, ,.
e;
' b .T "~ . II
Ji lays dow-n..differcntial provisioas tQ nrikes ~ltd loc:k~}lb:. Definition of lndusyyt [Sec. iO)] - I r~
pr&ziliecl De pemhies ag:3llist viobtion of ihe provisions. Sim.ilarfy, t¥
Acr. p rovide$ Ior regulation of lay off anti retrendi.me.ut ·uiO also
~. • • • • • • t
. , ...
Ao:<>rding 10 u,e Oxford English dicti'j>!"-'}', 'iudu.my' mems diliJlllll<;.,,
Or ·sy.,ie~lic ;ietivity. See. 20) of'Th.e ti'dustrisl DU.j)µtes Aer1,1947.
dcfi.Ocs •-tndustry' 2i fc;,llows: ..ULJustry"' means any"busines:,:~ tr:ade• ,.
~

f
:0
·FVISJfes compensation m ~pprQpn.:it,e ~
~
"
,mdcn:aking, manufacture or c:i.Utng O(etnployers ·a itdJnduck1 anf I.
,The Act makes provi.sion for ddc:g.ition 9{ powers to th~ State•
•od C-entnl Govmuncnts in the"""'"' o f ~ ruk,. n,;, iov-wl;lr.
cilling; $eiviccs, employment, b.a.oo'i cnft or ind'ustria11oc.xup.1:J,ion or. {i
enables
. .the State Oovern.me:nu
l(! $uit'.the local conditio ns.
to mike .
amc:ndmencs to the Acl:fo .1S
·
1.voa.tiot1 of workmen.• ~,· •·,.
•tnduttry• ~pp earl to mean· a· l.Mmeu (u mere.ha.ft). a tt111dc {u: · " '0
aule,j, • manu&aure (as a llour inill~);'\mdcnaking (os • g.u comp,ny), · •
1iie Aet applies to any specific ~rei if it involves an 'indJrui::il ciJ.lihg (3.s: u e.n.gU'lee:r), serlice .{,.s~,1.-1.car;rj~r), o.r 1.ll• -~ ployrntl'lt .{;i_• Q
!fdts~ ie.' The i~tenction of the interest ~ the ernplOytt and Wo~ gene.nil term covering voc;iciqns r:.IOt 'tom_pfOmised in'~lJ{
the tti~ .;
in' ~~iOn t ~ ~n ind\1$tr)' i$ $O\lgbt;~ b...lr~ afcd by tl:it-~l~t~~ [U
D ~ Aet. Henoe the def.Ll.'l.iti.Ot1$ of 'emplorcrn:Woritman~ 1uiifus.try'
Induni-y is ordi.oaiily somttliio.g' Whic-h emptO~ers (ffa\e Or .
undertake. However, ~t: C.Otltepiis,grachlally yielcii11J1pijce to the ,
Ji
.~rJ•indwtrw cikputes' are veiy rel.eva,tluJ'liJ ~ fact they form tiJ.buis modem •~ ncept'w~~b.n:g:ard:$ i o ~~~.a jo~t veJlt~ i ? ~~ l
~ i~V~M tht application of the_Act. t by employers·and workmen, 2n enterprue wh1dl belongs equally to..... 0,
jf
, ,.,Obj; c,ts of t he A<:t • I botli.. An l.odtJ.Stty exists only when·' there i.~ re:l~tionUiip ~ ecn:.
emp.loy~n and employee$, tbc former engaged in b~fnc,,, tridt; Q
· The pri.ndpai ~ of the Act as anal~ecf. by th'e Supreme Coiirt in undcrta.ki.og, ·ma.nu£~.or ailing of_~ ploybt and the J~a« ~ 1
Wo,J:,.1,n ef .'r,;,,,4kl/tb/ TM V Ma,v,1. ef O,'milid:i Tta Et~ (AIRJ:i9Ss tll any ca Hing, $Crvi0e,·emp1oy:nenc. liandicraft o r ~ OCX:~ f!.i:. •e':l
SC 3sjz are: · I or avocatio n. · . . .. 1; ,.,
__i).""T1f 11ie p: omotion ol measures. £Or~~ sun.ily and ~J"o&' i
~:~+ 1- •• ' 1- . In c,,p.,,,,;., ef lh<.Cl!Y ef Ni!Jii,r,v
111 & ~ s (AIR. 1960"SC . 0
.relati.ot1S ~ween the c-meJoyei ~d workmen; ·~ 675), the Court obscry-ed: "'The deflrliri~n o~ 'Wd-.i'1cy\ io the A9f is..l
(2), .AJJ. iovestiptioo and settlement of indun.rial dispures ~o:n v~ .co??preheosive. It is in two r,arti!'One put defineis it !r<>rb t h! . .G
(/)

~
Ci:.nployen an d employers, t':mployers and woikooe:'h or siandpolllt o f th~ qnployer and. tbc otbcr·from. the su.nt:lpolllt 9f tli~.
~mploytt. lf an ac:tjvity falls unde.r ~ithel'pm of the defiiii~~ it ..will ,
..,
i ''-' w-orJcme..n and worki:ncn; •
:,
:, be u..it&dusuy 1A•ithin the mca.nin.g of tb'.e Ac,." J • t ,.. G.
: (3) _Th~ p~vemion o f ~ strikes~ lock-ouu; . . ;[ ..
i•
(1)
' .
~ (◄! Rd~f to "'· orkmcn Lil the Jll!lh.er of lay-off, ttt:raldltne1 ,and There is not niuch difficulty io as~naini.o.g the meUWlg th(:;_ be
C.
~ . · closure·o! au undertd.io.g; r ._,ord, 1 b~Ul.C$S. trade~manulicwte o? c::dlini'.; of 1;:mptofen" in ontc-r,,:
\ .
d
;:;: l!°'lsJ .q .
:::,-
() ~
CoUe«i,·• bargai.oin~ . '
The In.dum-ial Disputes Aet is, progn:t$iyc mcaN1"C of socia.1 lc:gisl,ariot1 ct ·~•try· has c:1011•0
- ~
•oluUon•. E'lief!
. ~
e proa,osed ,f ...
csi
Q)
'2in,f"t -a, tb~ untlioration of 1h,c condii.~ns of Workn:ttn in indtisi'ry.
1. TIie concept , _. 11'.I•
• m,endme~ hat, '\Of help,&d, Dlscim ,,,.,~ VI• MIP OI cfeelded ~ .,{LC: ~
0
•
3 -rbtt WOtdl ~ )n ltl♦ 4e'itlltiot1 or •11@1,1,b-y'· lt1 Sec. 20 of tile t o. Act.: 1k7:•
(/)
'' .,. prtma tao1t of;th• wi,,1. .t h$>01\.. eve~ to, Jt Is w,-ong lo t#l!lat 1hl , - too
wide' beoaus.e "-'i-n a WICI• me.ntng, ai,'.pitr. to 0v« fe&Cb~I,. objec:u JOf

!.
(")
Q) Act"'"
..-.!ch tt'I• PHM<I." In th& l!Oh~Of lhe above st.t~ftt "dlilCt.11& .~. ;
:,
:,
(1)
,.,.,...., or lndutr ,.,.... ,.. Act. (AV,•"":I .•.
~

j I •••1,,, " "' ;i:


88
Labou r Law -
to dctermiue 'i\·lu:d1cr ~ panic;ulilJ" ;u;:t:ivity g rcjfd on wi'U l the co-
operation of employer and employees is an ind·U$JJ'y o r not but the
difficulties rulve cropped up in defining lM word 'u.nderuking~, a lenn
o( very wide.denotation. 'Ondtruking' n!C".A.ll$ anything~. any
bu1ine$$, '(l;•ork or project which one engages Ul o r ~nempts, o r an
cntcrpruc. .
But all decisioos of the Supreme Court ~ d tha~ an uodetuking
to be withi.n the definition i.n Sec, 2(j) must be· read ;ubjec;.t to ;a
.imi!atJ(/n, n~mely, that it must be analogous to'tnde or business. Thi$
rcsuh w~ ach.ieved by exieitding the meaning of 'undertaking" co cover
adventures not iltrictly lnde or bu..sines:s but'objects very similar. Thu.~,
activities of the mun.icipality were held to be c9vered under the term
'undcrukiJig• (O.N. Ban,,ji v P.R. M,J,h,,jr, AIR 19Sl SC 58). "Th,
Apex Court did not aoccptt:d the SuWSlioo i.haL the word 'unckmking'
t akci i~ colour &om other four words in the first part of the ck!in.ition
of "industtr..' It was said th:at 1..hji interpretation ,coders the word
\i.ndc:nuiog' $\lpcrlloous and the latter pa."t of.the ~ o n ~-
.. As ~ w orking principle. it 1.1,\ay be ·n-a.tcd that -a.n aftivity
systematically or lubmwly unden::Jcen for dit production.o r clistnD'IJUon
or goods o.r for the rendering of nuterial service to the conunurtil.)'
:u luse or a part of such c<:>mmunity with the help of employees is
an un dertaking" (Ho,pik1IM11{,dtHtrSabbo CauAJR 1960SC 610). The
Apex Court observed: The words u.st:d in dcfinicion of 'industry' in
See. 26) arc very wide in their impon and even so iu latter part
pu.rporu to provide 2.0 inclusive definition. The word ..undertaking..
:according t_o Webst:u me;an$ ..,i,,nything urukruken, any busi.a.ess1 work
or project which o ne enir-isa in or :anttnpts:. or ;in e1.1ttrpri:se.,. Simibrly,
..trade"' according to Halsbwy, in its pri.m:uy meminr; i$- "a-cba.nge of
g\X>Ch for ge>o<b o r for money" and jn it.s secondary meaning it i:S
"business carried on ,vith a v~W' to profa wbi:tber m:an~ Qr mct(.IU).tile,
as dln ingu.ished from lib-er;i,I aru or le.a.med professions and from
ag.ricuk ure'.°o whereas "business" is a very wider tum not $yno0ymous
with tnde md me1.1.U pnctitally "anything which is an occup:u ion a$
cliscinguished from pl~ ure."' Ute word "wling" .igain i.s "-cry wick; it:
rne.\lls '"ooe', U$va,I oocupition, vocaciou, busin~ o r tr.:ide"; $0 U ,he
word "·$Crvice-" wide i.o it-s impon. Prima &clc if the definjtion b.a..s
~
(I)
C
Industrial Di$pu tes Ac~: ; Definition of Industry 89 C
ddiberatcly used words of such wide i;mport, it ..,ould be. acccssary to
"'
<)
(/)
read th0$C words in their a,r"d4 <!e~ouri,on." E
The Apex Court th~ hd.d that too much relian(;e can.not be "'
(.)
pl:aced on whn are cksqibed as the. C$S<ncl:al attributes or features 0£ ~
trade or businc:$$ a.s «>nvencloiµlly Wldc:ntood.1Dd\l$'tri.,J ~ l i o n .<::::
bu n eGC$sui.ly to b4!' aware of the current of ,ocio--eoonomic thought ;::
around; it must recogoise•tbat ia the modern welfare State healthy ,::,
(I)
indusg-i.a} rebtiom are very impol'Wlt. A cloc:ai.swre apprO;teb of lairi!z. C
fairr<.:a.nnO\ ~followed.Thus, aaivitics unde:rtae:ra by the Government C
in I.he intemt o f socio-economic progr& of the cownry come within ~
(/)
thc op=tion of the Aa bcu,g wdwe ..:tivnies. Morcovl,,, thcde!Wt.ion.
of 'public utility' in s.e: 2(n) >nd of 'employor' in Sec. Z(g)(i) also
S\lg&e$t that the Legislature intended the application of the Ac,. to
a.ctivit:ies of the Gover~nt which fall within $cc;:, 2G).
In ON. IJONtrji c;a.$t, die Cqun observed: "There is nothing to
preveat 2 st:atuU, from t;i.ving; die won:l 'i.ndustry' ~d the word 'industrial
dispute' a wider and mo~ comprehensive import in o.rde:r to meet the
requi.reinents of n.pid indwtria1 prog~ss a.nd to b!ll'g about in the
i.ntettst of the indu.s~lal pe.ic:e and etOf?,omy a fair and satisfactory
adjustment of relations between employer and work.mtD. in .1. variety
of field of aeiivity. The confficu between capital and hl>our have now
to be determined ~re &om d:e standpoint of st.atu& than of cOntnct.
Without such "an approach, the n~row problems dut now arise for
solution in the $hape of industrial disputes c;annOt be unled-•
A Jook at the ju.d.icia!, trend rdlecu ~ t from 19SO to 1963 the
judiciary had given a wide intcrpmation to the term 'a'>dU$U")"' [Ho,pital
Ma,:_tJ,,,rS,bha e,,,,AJR !960SC 610i l'rom 1%) t0 1978 tbejudiduy
1,ho-·ed a ttvcrsal o£ trend. nUTowing the $COp,e of the term [Sl!{d.f,;-#11,a
H,upit41CaJ, AIR 1970 SC 62S]. I n 1978, this ttvenal wa.s halted by
the S\lptemt Court while deciding Ba,uaki" Wattr S"f)P!, 4Md SA1Wn1Je
Bo.mJ v R. ~ b l l (AIR \978 SC 5-48). Ia. this c.ue • vuy wide
interprct:atiOI') w:..s givffl to the term 'iodu.stry' and a temia.al um was
wd down to detcrmice whdh.er an enierpn$t' or establish.ment wu an
'industry• or not. K,n$b.na Iyer, J. defined 'industry' a$ •a continuity, an
·org.ani.,ed activity, and a purpasefu1 punuit. not a.o.y uolated ath:en-ru,re,
dcrulto,y e:xcw,,on or casual llc,cing- • ~ undcitaken."
 !'f'"" ""I'
$
• I
'. d ..,~
@
Labour Law - ( A Industrial Otsputes Act:O:. Def,l nHfor> of ri ,nuy
4uilNG U.Sr: ftANGALORE WATER SUPPLY ·a sEWEAAGE soAhol' ' .
D(>minant nature iesl• The" ft~. '
dominant ·~•·· q,
$t,\ ""· v A. RAJAPPA2 ' ' ' CntCcprisc is the ·$ ole crite-riotl- to dcCfd~ whether ...
_ !AIR 1918 sc '1•si I Cote:tpri.tiet are industries or nof"Further, whue,a c ~ n ...
.r,

of.2e.tivitir:s, some ·or whieli ma)' bt i.nd'ustrial ih aarure

'0 '
(!n th~s .c~. the Supreme Court ex:im.ined the actual l· ~
a~.l itudc~:1.od circurnscrlptioo··of the Si::ltutory concePt_ t and others not, ipvoivc eibpt~ of the total UndertakJng .., l

(!_f :01dusfry:' ' · • ~T SOmc of whom are not WOrKm.eh.,. or $Orne ~tpartments 0
~ not productive of gOoa:s'~"an_d scrvicct ;r Uolatcd, :.to,·
t1J;her~j s n()(hi~g t~ prcvenl a .statute fro~ givUlg the ·f cv~n tbe.u thr: prr:d0Jl."li~~t 4.aturc-of the ~rviccs and 0
~~~n ~du.stry a wider .10~ more comprehensive. import
tht lntegntid n2tutt o f'.':tfic- de_p:irtmeots · will be true
::ia.n;..o rd~r- to ,meet the rcqu1rem.ents •of, npi~ indwtri:tt l
t<'i(, th• whole uociertaking.Jl'lll"be •mdu.rry'.'..tthough ·
pr~~,s ?nd to b1;iog ;1bout in the interests o{ industrial · t
d10SC Who arc not tvorlun'r::n t-fde:f"to.ition nu.y not bmcfet .
6'
~lc7:1.nd economy, :a [oir and uti,iactoi-ytadjintmcnt of.,
1 by the statute..] : ..1. ~ • • t •
ebt1ona-~tween employers and workmen .i n :t v2rietv f.
of O~td.fi ~f activity. · .,f '"'
In this landmark ease, a sevt?i. j~$• Bench o( dte,Su~±:i
Court cxhausti1·eJy eonsideddftlle $C<>pe o f 'Ul9ustry•. The·
0
••
Trij,l~j!Cs~- Wb~ tbc-tt .is: (i) sjstC'm.atJc activity~ (ii)~· J<"i
o t g20.1$Cd 1.~.Y co,opcration be~e~n , employer and.. .
emp~gr,ee. (w) for the producti0Ql4istribution o( goods
Uiail,.,jud~m.ei:i.t WU ddiVC~a H? KrishD.a Iicr, J. and tbt
co11CW'ri.og _jqc:{g;C'me.oU w~re-.llvert t,j, the oth~? judgft of the· 1_ ~
~

®
.
'

at24! •r:~s c.,JeuJ.itcd. t? satbfy b ~.w.iots and wishes ;

{nC?~,,fPitiJ!J-al or re-ltg.ow}, pr/1714,fade·, there is -:a.o. r,
r l)e.a.ch. ~Jud~to!tt;•~•wu-,~?,hiorjty
of five With'·two dissenting,).· ~ ' _
,.
·, ...
<

'µ id ~ i.n _that enterprise. The c,;,MequcncC$· 2cc: (ij ·J! • ' . !'J'be COrnersione of ou~·i.tidustrial b'!V ii'w~n tilid b:~ ... {l}
~ r ~ff!SU~n.s, ~tl} qIµbs, (iii) 1:ducation~ institutions~ (iv) I
1
~ ~ ~ I ycrin~~.~~ ~ c t M O t~~wimoot ~- ..,'
c.<>opt!O!:tlVC code-.avour~~n·~loycr an.d~loytt. 'Nr:t~
~op~t,it~yes, (v) Research uutitution s, (vj) Charitable l
proj";S.ti, an<! (vil) O\ltcr ad,•enn=s, u they fulill th, tr;pJe , (
!e.f!;; ca'!no,t, ~ - exempted from. scope of definitio.O of :
cmi,lo~~ ~ u'I~. ~~ .~'YJP.~
- . !10 io.~:ii• notivst~ ~
~ dog.mati.c P!OP.os1tton ~ ~e,c;onom.i.;;=s but 11 also ~re:ss the" _ 90
(/) m~•'!,V, under S«. '2(i). ·. . schi:me of the Industrial DiSpi'iteJ·A'.CC. wj l ..t ,,,.,~ .•
, _ _-1., '"I! \ i( .
0 .r f
Q)
:,
:,
(1)
,no~
':Ji•reg~dp;, ·pro(h.- Profit or tbc ~«ntlo11 ~ make profit ;t.
v~

~o _e ssential part of the legal definitio.n. of a tt2dc b

or bY!1nc.s:s, •
, • . In the ord.uwy Or nOJ3tHt>~ical sense, "0?0~ to~¼
is. uadem~d by the im.n. in ,ueeti;'indusu-y' _o.! "busin~'
means An ~o~ing wh enrcapj~al and labour. co-opmci
0..
·1
C. \tlth ca.eh Otbpr for the p~se of producing: ·wealth i.o. the: 0
~ ,tupe of g~. machines, tools., etc. and for ma~U\g profits'j -±
;:;:
:::,- 1'he conoept~f iQdustry ia. this otdin1t)" sense.a{'~l!Yffl to : r @'
agriculture, ~oniculture. and ¥>:,9~ and s~lo~ !
()
Q) .. • There~ nothing however to·p~'el\t a onitl&om ~ 0
'
3 the .,.<>rd •in<!u,uy" and wc·w.ords •u,dustrial ~ . ,.;.1e,;t •
(/) ;
0 aJ'id .more 4>mpiehe~i.,.e• itt)_port!in -orde.r _tO mNt t h ~
Q)
:,
rcq~mentJ of n.pld indwtrul..._y'rogress and tO brltlg about 0
:, i.a the inte~u
I 0£ indunriJ pc:ac'e
• ,IUld tc:or1on.iy;
.. a fair-aad
(1)
~ f ' 1 f" · G
l ~ I ~
 I
~
(I)
C
9'.l Labour Law • I Industrial Disput.~ Ac·t: Oe.finition of lndu.J.try 93 C
. j
satisfactory adjustment of relations be.tw~ e:~ploye:n and (b) Would 11 univc:nity or college or school 5)l' N$ea.rch
"'
<)
(/)
workmen in :a v:u-iety o f field$ o f a.ctivity. l institute be called an iadustry? E
The.relevant const.i.tulionaJ C'll.tl)" speaks of industrial and A.re govemmen.W fun.cti.oM, 1Jtido. N1'bl, illdwtrial "'
(.)
labour disputos (£,my 22, Lis< m, Scl,edul, Vil). The Preamble
to the Industrial Disputes Ace refers- to the i.ttv~tig:atioo and
settlement 9 ( indu,,:,i,.I di,pu«$. The dcfuiition ol iadustry, has
to b e ~ in this background and our holding ts rcmfora:d ••
and if not, wbat i.s the extent of ~e immunity of
~ t,al;.tie$ or govemment1
A$ the provision now stands, is it scientific to
dc&.''iodus,ry' ba,,d nn the....,. - t.bedomJn...,
-
~

'§:
'O
(I)
b}• the f.tet 1.h:n industri.:1.1 peace. collective bargaining, strikes C
and Jock-out$, industriaJ ;1djudic:1:tio0$, woi;ks oomwittees o( o.a.turt - or th.t aecivity ie: on the terms or the
C
employers.and employees 3nd me 1ih cun0t but~ ·o.rpni!SC:id, work, rem-.;uieruion and. conditions o! .service?
$}'$t<::rrgti.c optr.lti.ons and colkctivt.ly of workmen oo-open.t:iog Ob1•rvations and D«ision
"'
<)
(/)
with their Cmployee in pr~c:ing goods ~d $ervices for the ·
corrunu.ttity. The betrennent of the workmen•s 1~ the a:aoidancie
Wbil, app,ovu,g th, " " bid down ui Sl41, efB.""b.!J v HOip;tnl
Mmr.J,,,rs.,;,, (!JR 1960 SC 610), the court sp,akini through
of o utbr~k$ b locking production and j~m and _speedy Beg. CJ. Chuclnchud, Bhagwati, Krishna Iyer, and o...J. JJ
senlcmcnt of disputes cone.em the tX>O'ulu.1-uity. In tnde a.od bc:-kl -as follows.: .
business, goods 11,n.d services a.re for the oommu.iiiry, n91 fo r
sdf-oonsum_ption. ' (I) Industry •• ddincd ui Sec. 26) of tbc Ao, has •
.,iJ, import.
Q.u•stioru
(D) T,iplt Tu1-Wbete thee-e is:
1'h e Supreme Court in &.otp.4,,..- fl}'m""S"PP!, case COnsi.dered
(i) ~ ~ .
the foUowing ~ of q1111t10Ar. ·•
(ii) orp.n.isfd by co-opention ht-tween employer
1. (a)' Are e~t"ilblishmcnu., run with out profit motive,
. industries? . . aodemployce (the - aod sub,w,u,I demon,
i' , same"'?'
S' , I or .,magin,_ry
, ),
{b) Do u.cdert:ikings g(W(:rncd by a ~no-profit-oo-loss'
~ -for the productio.a/distributlon of goods and
rule, fall within the defut.it{on Ul Sex. 2 G)?
services ~ t e d·to s2tisfy bwm.tl wuits and
(q· Do dub$ or other organi.satjoru:, whose gener:.1 wishes (""' spiritual or religious but inclusive of
emph:isii i$ not o n profjt-lWl.kiog but fellowship m.a.tuial tb.iogs o r sc.rviccs geared to cc:lesti.al
and sclf--scrvi.oe, fi.t i.nt0 1be defwitional circle? bliss i.e. nuking Pmrad or food on • large iale'),
(d) Are chuiuble imtitutions iadustries? p,;,,,ajl,ill, tbett js an 'industry U1 th.at enterprise,◄
(e} i() go to the core oE the nu.ttt, is it an itul it;nabl.e
ingrro.itm of 'industry' tl,ac ir d:tould be plied with •
. a com.mercial Qbjcct> 3. Thua. ·1ne1uauy CIOM r,ot inCtude apirlb.AIJ OI" teligiOut MMcei geai.o to Qt1$ttllJ
2. (•) Couki a hwy••'• cb.mben.,,. ei,,,,,,,,d ao:ounwn'• b11M C A . ~ PrflMIII Of fOod OI\ • 111,vt, Kitl6.
office. .a doctor's cliwc or other libed profession's 4. TIM "'.,._, In whld'I • " .ctJylty it o r ; ~ or MTenoM, C11• col'ldl!Jool'I or
~fltlOn bMa Hfl U'le emp!O)'et enc, tM 9l"tlplO)'M • no n. otf_.a to rtnd"•r
occu.pation or cilling be ~ ignated an industry? matellal NNk:e to ttie cort.munity .,. pivotal rac:tcn in dMafflihlrtg " the act~"lly
is M induaaty undet SK. 20) OI ttleAd.. DIICI.U. {C,L. C.- ~
 I C IOU .& Z

0
94 Labo u r La.w • 1 I ndustrial Disputes .Act: Definition
I • , •••
95, '- ~}
{D1) ~ ofprofit: Ablie.ncc of pro~t motive or the r:neani.og oftbe Arbitra.t~D Art'Qr Constic--ution if carried ..
ga.inful objeec is irrelevu1,t, be the veotu.re in the ~ _. out by municip~ corpon1tions.".. . · - ,,, Q
• • public, joUu. private pr-~,,..sector. It UWl:es no r. I
The neg2tion of pr~fit .m ~tiVe, as a telling. ten ~ in't
d.iffettnce that the roat~rial'.sc-rvicts re.adered by ! 'industry', is clear from thl$ quote. , L; .. 6
an unde~iaga.rc ~ 'p~blicinteres1.' I (IY) The true {()QI$ is functio nal and. the ~ve test ii
Pf(ifir-Ortbe intention to makf prollt i.s MliuJ ~tial pan of • the D~ture of the activity V.:.ith spcci:al t;Jll~ cifl
the' legal definition of a tn1di: or bUs:i.nessJ. a.rid p~yment or ., . the cmploye-r~piions. i ,
pM fi_rc:f6e.s not oomtinne a trade or bhsihC$$·diBt which would '
(V) lf the oi-gaoL$;Ltion i.,'a,i:cade or busine:s~Jt_ d~es
nOt 011fcrwise ~ .nw:b. Profit,making m«iVe is 1r61 :1. $We qua , .
. not: 0eue to be ._,.,,._,
one-,...occausc:
\.- o ( p,u.&;I.U
L'C>L th~y
.lion of ',industry'. functionally o r defininon1l.ly•..Powe.!'$J. in ~
. ~ ' f,\1,,,,;ap,!¢' Si,i,, ~_o,... ¥ -,;!ia., M,U,,,,,,,t animating W Wl~~ ; !<
~ justified this w,y well when, the Austi,lian High Coun • ~Altboug'b the s~'cti.o n. dcfining the ·coi1t:ept. of.
• conoocrod • ., industrul )egis!atioru
·>~· .
i in~ry. viz. Sec,...z_filtwed the words .o twiflc
amplirudc in its twO llmb-e$,.their mc:.,ning c~of
"'So far as the question in thii ~-;ii;c is ~once.rued, as the ,..
be·nugn.ificd to o~·cr:re2ch eiach o iherJ' '
~fflc:nt proceeded the grow.id mostlj,.rtlicd upon was that
the wol'k'w'a.s not ~ on by tbc mu.o.icipal co,po.ratiom f0r · Theword•~•must.rulfcicontarullland•l l11.oci:i~ 1~ 0
pio!it in the ordinary sen.se of the re-rm. although .ii would
gc.nerally speaking be ouried oo by the Cou.ncils ~em.selvts to
sbr4tk,'lge (as cxplairicd Ul B,xlifz'~); $0 also must 'se~•,,
•~ • a.uJ the liki:e."I'hc in!~«: is ~ t all o r ~'~!i:_ty () '
s-:.ve contneton' pro$!'$. if 1ha1 °'1,#A/1111 nre r,iffli1·1-n1. 1M1t a poSfflsiog tb;e tripli dc~ts a.(~ough not trade~.! bu.i~css
p/,J~jil¢ Jl>W {l((/#Utd II d#ltiJW f4do13• IPIJ l ~ Y J 1/;t illlnlt n:iay still be Uldwuj prm-ided the i:mploye-r-emplo~ iclirid1r .0
ttiJj/6.}'fl;I i;11 /hd ~ OWi/ff' bad t$p/lJ_µd wm1/d Iii# bt hl,8a§d iR 11111 b~ rt.s:em.bknc:e_ 10 what we'imd in tude ot bus~ds: -Th~s
takes into the' fold of ◄ industry' un dertakings, callings and '
· ~ilo11. gMJ(/ lllhid, Git ilfd111tr.'a/ ditp,ir, ~«!.mile, fl iv dirtrib11:td 0
I~ riot/Ju m.ztit to tbt /)()orftt4 of tlJall' "r ttlt1f if 1M dlrtr;hJtltd t~J'/1 $-Crviccr,, adven.rurn "lam.log~ t() the CNJYUlg on~ traef.e'.or "
L •• . • ,. •
ltf. -i& poor al~ batt '°"efpntdk!tlo,r. If the conten.tion of the V\L~,
' . e
(/) reiP,oh.den ts i$ correct, a p·r ivatc compao.y carrying on a f~ry (VI() The ideology o_f t.~e~~ ct be.itt.g lndul.t~J-~ce,
~ ,,;.ould"be •e npgod in an indun('W occup.al:io~ If a municipal teguhciott and ~~olJ~~n of mdustr~~ piipu~s
:,
:, e~6r.ufon carried it on, it would not be inm.}StrW.. The.same b.etwt en empl.~1: a~~wor~en, dif r.angl of ••-._l, 0·..f!
argu~n t would apply to bat.bi, bridg~bµ,ild,ing. q\.luries, this statutory ideology; mun inform t.6:q r each o f
(1)
C. S:a.Wtf.(')' cOntra.cu, gu.mak.in-g' for lighting $U'Ccts and pi.iblic, ., ' .,., . '''-"'·· ,_ ·~••-
~ 1...,..,.....,-"&-, ~ mote.
w, atiJtory (l(!IlnJtJOO '1;-
&
~ hills, mun.icipal build.i.ng of bowes or h alls:, ::111.d many other Tbe coo.seq~ arc: )
;:;: sidi:ililindustrial und.e:ru.k..ing$. EYen eo-al-mio:ing for U&C on
:::,- (i) i?rof..,;ons,
~ . l l.railw..ys or· tram'Wa:)'1 w~~ AOt be_industria) work
()
Q) if the cOntC'ntion of the respoodent-s is CQrrcct~ Ittbc wor ks @) p.,bs,
3 in ~esifon are c:arried out by eontracr0t1 ,o ~ by private
(~ ~tional - ·~
(/)
(")
'i ~!duf it is said to·be indu.nrial, but .uot. industrial within (~ c~....,, -
Q)
:, (v) ~uutirurioas,
:,
(1)
~

. I,

96 L3bO ur Law • t
Charita.bJe pro;eru. and
Il
merlMfil tbc triple
Qt.he!;' ki.ncired adventures, if
ten. t'tll!tt(}t be exempted frPm scope of
definition of industry under ~- 2(j).
! .<::::
(11 Lfl,ercr Pro/essfom , spiriu aoJ freshing of the minO.are there, But these blessinp
Held: lndurtry dOd ~~, sp.-re professionals. A $01.icitor's firm
or ;1 la,.;ycr'$ firm beconid iuoce~ful UOt merely bY ~ tak-nt
of a single hwycr but by the co<iopcrative open1tiOtl$ of s.ever.J
spcciafuts. juniorS and seniors. Likewise the ancilhty services of
competent: s.tcn ogr,1ph~s. pua)egal supJ>onive .services are
equilly i.inpon~t. 1·he same te« applies to other professions.
The conclusion is inevitable that contribution to the,$1.l(;(t$$ of
the iruti!lJt:ion - e--·ery profe»io.naJ unit ha,, an i.onitutio1.1al
goodwill :and reputation - romet not me.rely from the
profenional or speci:ilist but from .ill those whose cxccllcinu
in their respective p,.uu ct'l,UC$ for dte toW prof~. Efficient
collect:h•jty is the C$Se.n«. of pro£esti1>n:al t uc«u. Cb.im for
exclusion on the score of libcnJ p rofessions LS unW.1rn.ntcd
U'om a functional or dcfa.nitiona1 angle. The flood•g.ak$ of
exemptlOn from the obligation$ under the Aet will be opened
if ptofe$Uons flow ouc of its scope.
T ~us, the Supreme Coun held ,b~t ,he SfJlki:vl ca!St
(AIR 1962 SC 1080) i, WfOng)y d.cidtd ,rid mu.<t, tbe:efore,
he overruled
{ii) C(ubs
Held: Why is the club not an industr}•I It involva; co-opert,tion
o f e-mployc, and emi,loyCC$. ~rg:an.iud like in a t~e ~nd
okul,ied t0 suwly pie.sunhle utili,i,s to ,n,,ul,ers and 0th..-,.
For club<, omen "'·rayed from the industrial "'~ projec,
a picru.re 0 11 ihe sc.rttn typicil of employer h.irU1g eniployees
for wages for rendering services and/or supplying goods on
a syscenutic ba;is .tl tpecif.ieJ hour$. T hen: i:s a «»-operation,
lhe club marui.gcmcnt providing the capm.l., the raw mate.ri:t.l,
the :ipplia.noes and ;lwtilia.rie$ and the cooks, waiu:n. bell boys.
• ·- ·-- ~
(I)
C:
C:
[ndustrlal Disputes Act: Defi nition of tndu.stQ• 97
(t)
<)
(/)
bar nu.ids or orhu stl"V2.n.U ma.king n-:lilablc SC!VfflU enjoyable
e.1.ts, pleasures ~ other p,ertni.u~b1c 5CrVioes for price paid by ,E
(t)
way of subscriptioM o r bill charged. (.)
The club lif.e, the warm compal\y, the enrichmc.•n of the ~
do not contndict the ~ ·o( an ~industry' in the tedu:ua1
;::
'O
sense. Even t.ea•ta.ste.rs, hired for high WageJ., or commercial (I)
-art troupes or £-acnes teuns remunerated fanb$tic.al.ly enjoy C:
comp:l.ny, t'.15-le, tnvel iUl4 games; but, elementally, they ue C:
workmen with employc~ ~bove acd together constitute not ~
(/)
merely entertainmcm ;coups but industne$ under the Act.
(tii) £ducat1ooot Institutions '
Doe$ tJie badge of m·dustriafum, b ro.a&y undunoocl, ba.a.ish,
from ns fold, education? Thi, que,cio,:, no:d, fuller coowdentwn,
bcc:twe it' bu "4;en ·an~ered .in favour of cmployus by the
Supreme Court in the D1/hi u.;,,.,r,r;r, (AIR 1963 SC 1873)
c.... . . .
Why i.s it ,tr.a.age co rcgud education as an industry? It"s
responsibility? It's lofty chuac,er? It's lmplicuions a.o.d th e
raucous "oice,s of work.men] •
lttdi,1 U ,nuf"6,r,gfr,Mfat/em/ lllit,"'O' 14 i11tllmn411Js«w/,'?,,. Iw
C11r.dhi} J,,.JUJ Mk «1MlrZt-~1r a-4 lm1tdi(1'Qft 111"'1,t 111td ;,, tbt ftr:ttr
half oJ. ~ e,,r/"':J'. ~ ~"11r::1Jio1t i,:tHJlusfi,ld sf11di#,.f,tfl(l(Y troinilf,g
a,,d di111MI tdMraftlJ,i; a,ul, 1am n«J, 1ub.11oh.#Ml JraUliig 1111d ttb"'h'o1t
;,, lwm.awilit1, itUW1tn"al prqu,u ls r,(fau•dt1111111d. If tds«atifill 4ttd
lrailuif,!. an Uf1'1J'l,I to ; ,,d,111ria/ 1M a,griat/1,m JUtiwriu, huh 1tnv·m
ilTt/J(lrf cf ~ itdNJt,y tPIII if /:g/Jbrou.if'11 ;,,'!/ iM Nll};appj• t(I ,Jt/t,,o•-kt/§
lt. lt iJ '1 t/au-(OllnilNls, i1tgaBf;aria,: 1'1111/«Jlt a,fJJ, on ,!iii.st ahef,ress
JPbirh 1'1'1411 J,m, ptQJ,4 Jl;ridt,.from a.'«f'(i"I, ~ , r a / i,,11ilJU/qn1,
•~Na/ (II' ?I~ "! /,rt/Jqfn#I, Tht de-ji11i.ri;,.n ii IWtk, tmbma, ll'ttJ·111i,J
/qr tttdM,try DI/Nrlt, 111 bmt f/Uf(Jlltu tu/proms ef pn;""-.-i~ g,ods uJ
.1m.j1u ft>' ~mJJ'!J4r..,,,pltou C()-Opw#lil"- E.dPe.th'o,i ii 1/,r RMlt1 of
lmUl1tria6zytio11 a~d iJu{I ii intiklt,;Jt
Krishna tyer, J. said: ..Let us see trade romantic; for
~tics. With evcaing classes, eormpnndcnO"' C(U.11'$e$, unlimited
 , :r . . p
98 Labou.Y Law • J.nd us tr ia.1 Disputes Ac.t: DefinJtf9n o f Industry ®
' .
k
' ~

), ~reel, gQvern.o:ient gn.nts cscalaci.n;► and Certlfiates ~ .d ~ f10t ba,-e·to wait to get~ rcwardln. he1v~n; he rocei:ved ~ on
_foT prices, cducaclcin•kg~ intdicJ; tcdmol~, school ~ this knttiiic4 and grateful 'ttrth, ilwi.ts ,0 COuvcrsic,n o{ rus
o,:.oolletW:c roucarion is rukless cnde for atlnin.l ~rcn":l"
and hdplcss meeu of ca.topus (indwtrW) U-_?J'CS'C"...
.invmrlofU in.t:0 tno:ney aplcnry. . .: _,. r
-~ 6endits ~ -Eveo Jliougba ....-.,eh""'"""'
·
b
Thlu; the Supreme Co.rt hdd that the Ummi.:, ,ffk/lii
c* wu:wrongly decided.ind t1uteduq.tio.D·can be:and is, in. ,
niay be a separate entity disconnectei:i .rrbrn tbe many ind.w,trres
whic;Ji funded · ~he .irutitu te it.self, ir.~an be regirded~a'f an 9
iu,uuti.nitional from. an .industry. ~ti.on,, p ropc-llectby systermtic(acrivity, moddkd oi:a, co-
•. ' ope_rittiob b«ween employer and employ<c and akuloied }" 0
. , .
(iv) Co-opttrOti'Vff
.
throw up ~ ics -and invcnciof1$ aad \19e'ful solutioru whim
~~pet°at.ivc 30Cicties ordinarily,~ O t f.ill Wtside $c,c:. 2(j).; ~
:After: aU, t:hc $Ociety, a legaJ p~n, is tb..e employer., The 1
bertdit iodiv,idu~ indU$iries 2:0d the tutioa lQ tcnn.s o~goods ,,;,;.,.;;;
and ,crvices and w.eaithr It lollows, ihal restarch iruriruteJ;,
0
iru,mben ""'e,nployffl and the actimy ~ ofthenmire 1.
Of .tnidc. ~ft'ly because co-open:tl\"'C.~ntctpri.ses dcsttve Stitt' j
alb,:it run without pl'Ofit-motivc, arc iri4U$uies. 1' ...
q. '
encoun1gem,,it, di., dclinition e>ru:10,-be distorted. Even ;f the" ·,
M>ciety i, work<dby the mcmbets only, the ;,,ticy iun in<fustiy '
ti1)Chorftoble ProJ«ts : •. ~--t ~;: ., t
Cao chancy be 'indusuy'? Thu ~ ean be unloeked<>nly ,,.~,, ©
becaute die mem.ber-worken a.r-e jnid W•s arid ~ t t cin be 1 by exa~iOin& the• n;iture ol the actiY49,·
; .rfhc.charity.' ·,17
~ ➔ ,rt.
d.i$pUtt.S-about r,ates and different scales of wages among the·· ~
0
"'T,ll'j

Aoompai(IOllate int:lu-a--rul~ ~ ~UI ~

categoria i.e. workm aiid worken o r ~~n Wori::en incl , Howe"V'ef', if raw ~tti.,J' is made aiaiJlble,'frec and thf'-Ga'itbcd
cm.eloyer. These societies - credit Societies;- rtw.rkecing ~ 1
product is fully paid f(?r .. rathttexceptjotW to imaging~ tbe 1- ;
operatives, producer1• or conrumm' socii:cies or 2;,ex ~ e - $, • I
- aic. industries.
;•
·
condtllion may be ,hesitant but for thl,' ~ Wt thein.tcgratdl
~ i w alive, purchase, tru.rkcting; advertising .a.tid·OUlc,r
I~
M tRtsearih (rutlt11t1cru I: functions art like in tr.ade ~nd business. This nukes t:&em E)
Does tt'$Carch involve co1J:1boration between employer' and ,-1i ind ustric:s. NOblC objective$, piou's ·' purposes, $Jiirii.~i
(/) employ..? It docs. The employci ;s rho ;·~ U>llion. we emplo}:;.. l foundatidru -and devdopmenW projccci: are n o r easott nOt"to D•
implicate these instir.tiom as indunria.t . --
~ a,;th, <ci<ntim, ~ Jltisrs anded>..- pe-el. Ii .cl,:Tllifu,
researcb·se.rvic:e? Undou.btedlY it·is:. Its discoveries m w.l~lc ~
:,
:,
• ,.Clkirili;b!e instibilitntJbH into thrte·Ol.~ories - (a) t0 titOle: 0·,
c~butlons r.o the wealth of the mtion . Such cfucoveries may that yield profit, ijut the profit$ ire',b.or--_aiphoned Off fo;,
(1)
C. .. be $Old £or a heavy pric.e in the indU$trial or other marktu. f~truisiic j)urposcs l(ie. profiu u ei:s}pbj n~ off for ,Pt4>1ic· 0
~
T echnology bas to be paid for and teehnological ioveoUQru . } interest purpo$e): (1:,) those thu ma.kt:.nO profit but hin fthe
a~d Wlovati~ns may be F't·e nted and sold: la our .scit~t.if~ ' ~
I
sctvioes of cmpJoy~ i..s i.-:a any oiliet;.bUSUJ4$$, but the. goods/
;:;:
:::,-
md uchnolog;a! age nothing hat "''"" ,;,,l, v,h,e, os imaagi'11e f $tl"V~Ccs which are tbc our.put , are mi& a~ild,lc at a: 16.; Qt o·
()
Q)
goods and in:valuable scrvioes, than discoverit$. POr irul:a«e. + no«><-< ro the iruligrjru po<>,; and.(e) tbqse ~ are oriel!.;.! on
the discoveries o f 'l'ho~ Alva Edison inacte Erom fab°ulousiy a hurna.ne mis:ti<>n fulfilled by m.et1 i.Jio wo.tk, not be~au;k'
3
(/) _gehHt )>a. been sakl.that his brm h,4 ,ha b;g1,.,, ,;,.J, ...iue they= p.id wog,,J but boo._, tbi,y. .&.... th• p,,,ion fortho
(") in histo·ry for he made the world vibntte with the t?'l.ltilculous ·f ~ and derive j-01:i. s.ttisfaction from Lheir contribution, The
Q)
:, (:. di-scoVcrt oi recorded sound. Unlike most inven to~ be did f £irst rwo categorie➔arc industries. but nOt the third, OJ? t~CL
:,
(1)
~
..
 ~
(I)
! l nf!\ls trial Dispu tes Act: Defi nition of Indu$1ry ?0 1
C
C
100 La b o ur La w· I !
ll.$SU1l'lption that they~ involve Cl>Oper.ation ~ cen <'mploycn: Si.milady, acciv i~ wh.ich are dominatl!'d by charitable "'
<)
(/)
motives a.re • ~ e:x,ch,1dcd from the definition if the dominant E
and employees. ! cb3nctcr ls i.ndusrrial ~ d the re,luionm.ip of employer and
(VII) "10$pft"afs j emplo yees resuJt in the production of ou.teri:tl goods and "'
(.)
l'bc Stipretne Cou.rt overruled St!;'darj,mJ_ ~isptlal&_Dhmrroj~ri rendering of mate-r ial service,. ~

H-,p.1'/a/ cases, and appro,·e<l che law la~ ~w~ m fl6Jf)llol

M ~ StJbl:vJ ~e. It was held tha.t bosyu:a\ facility, tC$carch
pr~ucts and t raioit1g services are $1,udy se':iccs and he~oe
industry. T he Governmeni. departments "V.·f:ule undertaking
welfare .activities cannot be said 10 be engaged iu disch:1.tging
sovereign funccionsand hence ()utside themtl:iit o fSec..2ij) of
the .At;t.
An .iccivity sysrenutic:tlly or lubi-u.atilly uodcrt,;lken for che
production o r distribution <>f goods ~r for, t.hc rendering of
in:ttcrial scrvices to the community at luge.or a pan o f su.ch
community wi:dt the help of employees is an ~unde~ing.' It
il the·cbaracter of the activity in question 'CL•hich a ttracts ,he
provisions of Sec. 20), who conduru the ~ 'lty (government
o r private) :1.t'\d w hether it is condm.:.tcd for .profn o r not. do
not al"ak:e :a outetfal dilferenc::e.
(VIII) Oq1.virran.t n.a111rt kt/- lhe do~nanl ch.arac1er o f
the cnterpriie is the sole ctjterion iii the•above
catego riC$ of ente rpr ises to decide whether they
arc induscrie$ 0 1 not. Funher, -«•h~e 2 complex of
.
;u;;Li\•-iUcs, some of which m.,,y be-industrial in n:it\.ltt
:rnd others not, involve em ployees of the total
unden.aking some of whom ,uc nol workmen (as
i11 U1rii<tni::, ef O,•lhi Cate) o r some deputmenu
'3.rc not p roductive of goods a nd se,.rvices if
isob led, even then the prcdomi..n;mt cuturt of tbe
:iier vices and the integ:tated nat,1re o f the
departments (a$ explained in CMporr:Jilm of O{J if
N1JJJ11ir C-asc) w ill be tnae t~t, tbe whole
unde=klns will be • mdu'1ry" ahhou;h those who
a.re not ~·orkmcn by definition may DOl beaefit by
"tb.estaru.s.
. ·"=
(!X) E.x«pM11J - A restricu-d category of pro fessions. ;::
clubs., co-oper2tives1 and e ven 411/'JllrJ,,I/ and little 'O
tt$t-..rch labs may qU,tify for exemption, ii n o (I)
C
employees a.re entertained but in miAi.n:~ matters, C
ma.rgiru.l cmp~y~ art hired without <kstroying
the non-employee chancter o f the unit.
~
(/)
Krishn:a Iyer, J. observ~c:J:° A single lawyer, a rur~ medical
p raccition ~r o r urban d oaor; with a little :a».Uunc a.ad / or
tneni.al s-erv.a.nt m :3}' p !y.a profession but may not be hid to
run an io,dun ry... it is mo're like a pcnorul .avo,c,.ation..• the
im.igc 0 £ industry Or cv.cn fiitm' U'l.du:itry is one. of pluraliry 0£
workmen•not:in isolattd or single a$Siswlt or atUnda.nt. Pwth.er,
this is not so because an:employee does l\Ot: rmkc a cont.ribution.
nor beetuu. pro!C$$ion is too h -igb to be qualified -s tra~ or
industry, but be<:all$C ther~ is n oth.i.ng like o rganised labour in
A ct ~ to focus on resoMionof indwuw...,
,ucl, employmenL n ,. whole pw'])QS< of the Industrial Dl$puu,s
and ~lion
of industrial reiulons a.nd <DOC to meddle .,ith eve.r y tittle
c.u-pc-nter W..a ,.-ilug.e or bbclwnidt in a toWn who sits with hi$
, on or assist;ant to w.ork for the CUJtomen who trek in, For
this'""°"· which applie, all .Jong,the Im•, to small p,of ~
pony b~ domestic= and t.be Lik,, the solicitor
o r doctor o r rural e ngineer. eve-n like the butcher, the baktt
and the cancCe-stick. m:tker, with an w ist2.nc o r without, does
Ml fall within the defi.n.itU"l.n of industry (ln regular indunrie.s,
of course, even 2 few employe~ arc enough to bri.ag them
wruun Sec. 2(i). Od,e,..,;,, automated industries will slip through
die.net) . · ·
If, in a pious or altruistic. mission, man.)' employ them.selves,
!rtt or for small h.onorariwn, nwniy dnwn by sharing in the
pu..-posc or cause. such as lawyers volunteering co f'l:lJl ~ kp1
 0•
Labour Law • l
.
··~
.
lndu.strtal Dl1 pntci Act: Definition of Iodus\ry • .-103
. ' '(.
•r.--.
.. d
~ ':°wt
~
$e'rvL«$ dini<: ot doctors serving i.n their
__ ,, __ , h . ' sr •• -,
.mil'e houn in a free
• cl.
?bs~:·~ iitJ~US .~ff!
trult the CO~f ~-
0
mctU?t centre o r as nur1Jte.f wor~ at the bidding of hf~e o! wlut Ut industry ll'.lCaDt us eltlr, runes must now~P!,ace,~
ti) ffl ~normousl); ...,;..,-,co~:Pt">So' as to tak~ in \l~r'iow:r~d I
,
hOlinc:.ss. md th.e $et'Vicet are supplied fu:e ~s; at :i norifu-1~ COst
and those who ae:rve a.re not enpigecf for temunet'ation ~f,oh vat;icd fomlf of industry, ~ that 4isifute uisinJ in Clpnn~o.o " 0
die b2.Sis of master and str'\ iU'll relitionstii'p, then th·ein.scitutio.n
0 with thdli tnight b,S<ttlc~~uiaa')'iwahout much"ili.l~cion
and ~ t f o o of needs ~hociety and in 1.ma.noer tl\Ofe
•
, is 1101 an indutt.ry even if s.µ-ay scivi.'n u are h.iii:d. !
idapted co, conciliation and ~ n t than a deter~tion of· -
G
· _ SO~-creign fonctions, SU'ic:tly,u.n~r:stood, •~ qu,aJ.jf/ foi:-
th.e ·r~pccth·e 'rights and\liabilit~.aecotding co~strict le~ 1.
exempt1on, not the wcl.-fu,n.ctivit.CS: or «:0t1.om.ic acii~et 0
· u..odertaken by governmcnt· or~ starutOiy bodies. f.ved' in .
procedun: and prlncipla ' b , ~
.'
"The eonflic;u between ca~'ind. l::tbour Ii.ave now to ..
depamllcnts discharging $0,•ereign' fu.o.a:ions, if thett arc uhiU @
,w~ch are industries and they l1tt :subsi:infully ~enbl~1 th= be determined more froni the. s.i'andpoUu Of stitus th.an a f
~they c:an come within the ddinition ~findust,ry. · t· <JonttaCI. Without such an appK>aeh, the nwntt~~ ,e;{oblttxU
Constitt.Jtion11,) 2nd comPetently enacted ltgtsti;ivc
~ t n~w arise for solution .in th~ tlupe of indurliial di.$putd 0
c:u,.not be w:kkd sati.1{aaotilyf a,nd Um is wbyevtryciriliud • '·
pr<wisiOns ~y weU remove from the scope of 'in.d.;_,[ial goVcrnmmi ·b u ~ought of'tJicl'macbiocry of COacili,nion
l>i$pu~ Act, caugories ~hih1>othe ~ rtl4'-' be Co~ttd
ihertby . - , !' officen, Boa.n:is :utd Tribunals for th'e effec:.tive setHnne;nt 0( . 0
~. ~ t -, f
C ~ t .~JS - Tht:: Sup,c:-uw ~ wJ.. :.V~ qui~<: wnsc.ious of{hc.
~ in defining indusuy·u,. Precise JertnS wJtcn it obse~ ·
dispute$." .
. In w.,:Mm, 1,uii4'fl S!4Jt:kn/s IJUtilNfW ea.,i ~ 1976 SC'f
1◄S}, th~ ~pex Court o~cfl"'rlie Court ah~ as fu!u ~ ·_
' Q
- .
~Ind~, thei-tfore. CU!flOt ~ strictlyddined bv.t;onlfi:he 1
p~ibt!e; axoid fonnub~g, q_r-,~optiag g~ne~om and 0.
, dcscrsbed. s_u(h a rule• .h.o~eve.r, ~aves too wide a dooi;: ~ bciuate to tut the con.ccpt'·o ( 111aiittry in twTOW~ mould
for specul-anon and $\WJe<:n~ nouons as to wWu is.~k.
U,!'D i.ndu$tt')', It U best co lock for a rough rule.of gui~
which would n ot permit of e~1.ion as and whett o,ces.siiy t Q
'~by considering what the c;.oooept of .in.dusuy mun exdu<k..~
arises. Oruyl,ome woiku,g prindpJ,. .,,..y be ~ol•ed .,.hlch.
would furnis'b guidance in detcrmin.lng wtut arem~~attribut~ , J 0
(/) The Supttme Court also ol>,cn-.d·t hatl'oru=, l))U$t or cbarae1ea;i.stics: which would ordinarily indiCaie duU .~
~ sr.ep in and Jegulate in a·manner which will kue no doll.lit" ti
0'
\lC.dcrt:;WnS!is an-al.ogous to tra~ or bus:i.ne:ss."." , ,
:, tO it.S it1teo-tion. Krishna Iyer, J. Wd. "I <:Oosider witb·Veat i ·\ .. t .,
:, Cata ~.ltllf - The decit.ion ol·Sµpttme Coun: in M"~lf!
(1) retpect that the problem is hr too' pol.icy-o.riented tc/}be
of.Sefdarfa"J ~,,pl,alv X.IJ;pSi';Jl.(AIB.1970 SC !:KJ7), N.U.C
C.
~
wiSfactorily settkd b}" judicial decisions."'
E.mp/,/J-m v Ibdxttn'a/Tribi,,a/ CSoll'ci,or's Case) (All( 1%2 SC "".,_ d
;:;: , ~ccording to the Apex Court, leg4_1uion has to •k~p 1oso), u ~ of v,11,;. ru;,;'})ldh (AIB. 1963· sa·-un);'
:::,- paoe ~i.th the march of times and to providtfor new ~ n s ; , G_ymhhaM C/wb Emp/,Jw,' g,i,~ v·Man,w_, (Au\. 19ia SC · G)
() Social,cvo_lut~n ';$ Q prooei:S of constant 'growth. and tliiS~e 55.f), and w ~ ·Other rulinP, .,.h6k ntio rwu cbuntCr t0 dit ..
Q) can.not afford to stand still without ~ g 2d~uate mns&cs
3 by 1DC:lr\$ of ugis}ation to sol'W! large·an~lnomcntC)US P,robleau
J)nncip~ e4u.nciAted ia &ir.r#n .wa)wSll/'P!J v A . ~ case 0
(/) ha.ii been overruled. ~ ; ~-
The hpex c.owi rehabiliia,:¢ ~M~S~ (An(
(")
that·arise in the induurial fidcli_from chy to day almosri I
0
..
Q)
:, 1969 SC 6to) and affmoe<I. J,i!u,,Su,d4nil 1.,,;,,;,1,», (Ant'
:, ,.·'
(1)
~
,, 0
• •
 ~
(I)
C
lndustrial Olspute, Act: Definition o f Indu.ttry 105 C

1976 SC 14!>). Th, Coun followed &,mj; (Ali\ 1953 SC 58) 1n c_,.,..,,;,. ef ,., O!J ef N,.v- v 111 s..~ (AIR 1960 sc "'
<)
(/)
and Co~1Wi1,s o/ Ci!)· oJNP!,?1(1'" (AlR l 960 sq-; 675) C;ues.. 675), tbe coun held that mun.ici~ function$ are analogous to 'business E
or- trade' 1nd hence municipal functions of a oorpo.ntion tall with.in the
[Not.r. T he Indian Parli:i.Jt1e11t reacting to th~ R:gappat taJ~
:.m.~nded· the definition o f •indust ry' in 1982. p·be a.mended definition of industry. The court also ~ :a distinction between regal "'
(.)
~
definition has borrow«! the triple test laid down in Rqµ,~} and municipal funetions o f the corponcion.5 T he coun laid down Lhe .<::::
uue, but has ddudcd nwty 'llC:civit.ies like hospit~ , dispensaries, follow!O.gp,i~4, in mil <::a$oC!- ;::
cduc,u.i.onal institutions. c-tc. As am.end«l defipjtjon has not (i) Monctuy consideration for $Crvice is not ;an es,end~l 'O
been brougfu into effec, till date, definition a$ laid down in chancterinie c,,! indl.l$.try i.n a_·mode.m State. (I)
C
&ifajpq} ,a.tt coo.bnui:".$ tO be ,,..Jid. Since .1978, couru have (tij The history of LOdostnal di.s.putes and the legislation recognizes C
been consistend y following it as a precedent, "f:hc great merit
of ~tmulics in settling the law on the issue and gi~ini;
the b ~ ic concept that the iet.ivity shall be organised one and ~
(/)
not th.at which pertain, to private o r personal e.mploymc.nt,
cen~inty . h did go beyond the confines. of the <;;MC before it,
but the resolution of conllic.ti.o.g decisions ma.de dus ne,:;,«S;1,y.) (ili) The f'egal/sovereign functions described as pr imary and
inalienable fwtaio:a.s of State a.re ~ y excluded from the
.
Co<poreit1on1 tind Munic:lp&I t.Jndc-l'taking$ p unriew of tlte definition of indu$uy. Such regal functions
mall be (Qnfined.to legislaU'Vc power, administration of b.w
The .Mu.ni<;ip.J Unclemkings arc geuenlly eugig«I in $Cf"Vi¢cJ wh.icli are a.nd judicial po'Ol~r. Welfue ac.t ivides of tbc Government are
of public utili:ty in iutu.te but wme or-p:ll"t of the futicclons disclw-ged 11oJ excluded from the definition of iAdU$\ty.
by them may also be of the types wb.ich ue discharged, by sovereign
bodies. In .su~b cases the difficulties hav·c cropped Up to determine ~) IE a service reu.dcred by an indivichw o r a priv-a.te pc.non
whether munici~itit:$ en,g:aged i.n mub:i/ario~ :u:tivi~ :ue i.ndt4trid would be an industry, it would equally be an induauy in the
within the definition o f Sec. 2(j). · han4s of a «>fPoration.
In D.N.'•Dfu:nfat v P.R 1\tb,./i&tftt (AIR 1953 ·siz 58) , it was held (v) If a $C.rvice rwdcred by a c:orpo~tioa. is u1 indu.stry, the
thu .i public utility $C-rvice (r;i.ilw.iy$, tclephom:s :;ind the supply Qf employees in the.department connected with the service..
p()wer, light Or water t(> Lhe pi..blic) Or- 'uodertaking' n m by Muni<:ipal whethtt' financial, administrative orcxc:cutive wcY.&kl be entitled
0:>cpomion 0011$tirute an industry even though it-1$ ca..rried on With the to The benefit; o! the Act.
aid of 1.1x.1dc;m ilnd no immediate ouurial ga.i.n by -wi.y of profit is (vi) If a deputment of i. Municipality ~arges many functions,
envisaged, because there is a co-op,::r.tion bei.w.cen capit.tl and Jabour some pertaining to an indusuy and othtt noo,indu:scrial aaiviues,.
•nd rendering of materi.al $Crvict"s co Ute publK:. • T bt" vt"ry ide• th e predominant function$ of the dep:artmtl1t sh~I be the
un&rlying tbe e ntru.ttrmn t of S'Uch duti.-e$ or- functions t:c;, local bcxJies «iieria for the purpose
o f dttidi.a.g whether that dep:a.nme:u
is not lO ,ak~ them out of the sphere of industry but to secure the is indusu-y or.not.
S\:b6.tii:ution o f public: autboritie, in Ule pl.cc of pri~te employers and
to elin\ina~ the Jnoti\•e o f profit nuking as fu as pOS$ible. T hC le,')·
ol t.1Xe$ for the nuintenance of services of sanitat ion and t he
conset'VUX:f Or- the iuppl;· b f light a_n d Wolter is method adopt-ed am!
dcvi,cd to make up fo,: the ab$COCe of capital.~ $. R~I or •O\'~ ig;n fun~lon.s,, 1trict:fy eor..strued, ■bn■ quall,V fo, ■11tmption
under Soc. 20) of the Act •nc! !'lot ttie welr■te ■etMtle■ OC 1M oiw.tt1ment-
Comm■ nt. lC.t.C.- i'JJ
 '
[
Labour t~W .. I

• • Elic\rical d<partm,nt of• Municip,lity whidrgco,,,a,.. and ~ y Q,

cocrgyto pri+.ne~~have bc:cnhclda.1~. A F'~ B ~
~rvice mainJii,nei::I by Munici}»l C(U'IUD.itt0C1~ &e'l"'lce :uid WO h"eHtro
0

bi- up~_eruki.og undti Sec. 2{j), General admini.~(N;{t(>n depa.rt'mcdt 0£_ 0

thcMunlcipa!ir.y,hal.b«o hdd to be iodustiy. llcl the Qaroi ~
of th,;, Municipality is ttOt o.C-'Uvity 0£ ,nde, business or ma.hufadwc 0
~a thus could not be ailed an industry.. A city·unp·
an:.,......:., , · ·
' rovern.ent tru$.\ is
· 5
~ ,, ' • •
~ ! .,ll'be S~p.em_e ? ourt ~ 'i!'411$3lm Wa:tr.S#JP!f v A &g4J'~ ':"SC
i q
-approveditlte:.Jaw laid down 11\ Ct1'?';- of. 'ilx ~ of l\'df,P.kr cue.;'
In ~,U·ap.i1~.• Dtllsi V F"'1ak l~J'hn, /'M.rth: &ti) (A.IR·2b
0
"
SC 127~), held th., t!u, activtty of di, Cotp,,,,ii,)n ~y which co!ISti'Jd;.,.
w~rk:iSunderukea. or roads arc IW or repaired, etc, fall within ;me
d'.ef'UU£io.0:o{ 'iodu.suy'. · . · t
!,a --:1ltiti/lbtrii ProtUla b1J:.t. Cc!fltllill~ v ·AJl,ok Htlli)wri (AIR·2000
SC3116). ~,e questjpn w:u~hetber ttm>tOry c o ~ ~
whereof • •~NI Ctt').t\ltt♦ of ffle rt,atute snd .c<>m•·of th~ pe.i-foT .
r, ~ luo<tions of di, Gov=uocru, covcM by di, td-"1 "indu,ifr.•
It was Ji.eJ.d-tbat the answer is tb ,be as~min.cd lrom the: object 1for
whidlchey worked.
-· . r1
J lo,the present case. from die Preamble, statement of objecu·and
re~o~ ~d t.be provuions of~ Sta~ Aet. [i.e. Kamataka Agricul~
Pio<luc, Mulceti,,g (Regulation) Act, 1%6] it i, clear tl,,1 this A.:t di.!,
(/) ~ ith various f:aoeu of regulating activities with.in the mar-kct:arca W.ith
0
Q)
~to th'e trading in ,griculiu,,l proclu«. Any enactment, schei&I
:, P"?i~'"'.hi.eh bW,s in the tr.adirtg ~qivrt)• is One of thc:su.te'S et1tlni:al
:, !wictions} o1V'f.r<b w ~ activities. Such' :tctivities can be wuJefUl(en ·
(1)
C. \'. ~ J..... ~ r NGQ/pG\-aic nt0:non/cnfflf'l<l~y. TAUS, 1'0cle of the aaiv'ii.-S
'f ~ / ,I I ('- --"T- • · • •~!
~ 'Qf iheMarkct Committee established u.odcr the said Act lln! $10vCC~
;:;: qr tti.lliJnablc,func:tioru of the Sut·e . '.I'b,erefOrc, it &Us wit:hi.ii the
:::T <k&rution of "'ii.aduruy'",
()
Q) . lrl: f¼rrm11tr,tttd v N~ PaBka, D~h~ •DM11 (2003) 9 SOC 290, tfie
3 1:;ntinttring nec>artrneot of Muo.icipalifY. <t-1"~
pg,f..L} WU hCld ~
(/)
' Lidusiry: Thi Court held: Tlte indu.iio"rl 'of MJo.ic:ipality' in. the
0 ~~mtirutiOD by iu df would not change the position. I
Q)
:,
:, t
(1) G)
~

J

108 Labour Law .. I
of business method and org-.anisation, the conclusion ii i.rres:inible that
M •tr1du:nry' emerge,. likew-i$C, tbe member$ of ;1 c14h m.,,y 0""'0 tbe
insriturion and btt.orne the employen for t.b.at reuo,..'"
The Apex Court in &".§'fort WQ/u SNJ#J case f~nhe-r observed:
.,But sd(-$ervice dub, which do not h ave hired empl4yces to cook or
serve, to p ick or cha$C bath. to tic up r,et.s o r un.ngd the c ~ table.
the bar and the b.nh or to do those. ehbo~te bus~ss ou.n1gem.e.nt
cb<>re$ o( the well•nm city or country clubs, may ~,,.~im qllf of the
i.nduu ri;J pool These arc p,oor men's d ub withoui th~ wherewithal of
a Cy»ld,a1111 or Critht C&b efbdid. In such :a.n i.nstirutjon, :t p:trt>time
sweeper or scavent;er or multipurpose attendant may iomccimes exist.
H e rruy be tbe eruployce. This rmrgi.n.al cle~nt;~ 00( tra.osfonu
1
a little .lSS:OC~tion U'u:o :w ioduscry.'' !.
Hospitals, Educational Institutions, So(.fcttor's Office
Sµ unde-r the Quenior.s Section..
Re-Harch tcutltutes'
In AlwudabaJ T c;,,:lilt lndNstty'i RulJVfh All~11 v Swt ·ef JJ(lhlbt:/ (AIR
1961 SC ◄ 84), an association was formed for founding~ sci.eri.tific
rl!Se:i.rcl1 innit\l~. 1ihe institu1e w a;s 10 carry on fCICU'Cb in C:Onn«tion
with d1e textile and other allied tr.Kies to incrt'.tSC' dficicocy. The Supt<eme
Court held that "thougb the ~tiom w:as esubii:shcd for the pwpooe
of research. its mai.n object w:u the benefit of the. member:'! of the
a$$0Wl;ion, the ·woci.,uion is organised and arranged Ui the n:unntt in.
which a tr..de or- bu$i.ness U. gc:ncnlly orpnised; it posridares oo-opcnti.on
bet•.1..-«n employers and employees; moreover the personnel .;ho cmy
on the research have no r ight in the result Qf tbe re:s(udi, for thCJ<:
.
re:ise>n$ tbe :1$$«.gtion was hdd to be 'a.n indu.suy."
G. Examlne wtJ;ethc.t 1h• fOIOwlt\g .,. 'inth;rtlry':•
(a) AIDS Ra$.Utl;ti Centr• ouqulng t$$e4tCh for find Wlg, a pos.:sibei, cure for AIDS
em111oyin,g ,esoiuctl s.ckw'!liftt •ll<l •thl\C;lql1'$, •
lb) \!1$)1\q 8r¥1.ma Kum11,rs c.enu-e, N~ OetlL (C..t.C.4•: L.C:.tJ.$)1
~
(I)
C
C
lridus tria l Oisputei Ac t: De!inition of Industry 109
Bue:~ society which L$ established with the obj«t of ~teri.ng to
"'
<)
(/)
the intdl=ual as disoingwhed &om mau:rw o=ls of m,.a by promoting
E
geo=l h>owledge of the COW\"Y by cooduaing resean:h .nd publishing
various journals: and books is not an industry, Even though it publishes
"'
(.)
~
books for sale in market, when it bu no prcu of its own the society .<::::
cannoc be teru'.led even all '\mderwtiog' for selling of iu publieadon ;::
was only an ancillary -activity and the employees in undtr ing clerical 'O
assistance in this matter ;u.u as the employees of a $0llcit0r firm help (I)
C
the solicitcu·$ in giving advice and serv~ [A.tiadc Sdt; v Srat.f of IP.ll, C
A1R 1970 Col 170). ~
A 11mklalit,a ltJtJrr ~nnot ,be t:tt'ated c ~ industry evu it nuy (/)
employ workmen. So also rdigioU$ groups organised as such. (dlbnt111/
«d4•la tnm}. When services U:e rcodcrcd by groups of charitable
individuals to themselves or «hen out of missionuy zeal a.nd purely
c:b.ui;ab-lc motives, there wcnld·hardly be need to pl.aoe them under the
Industrial D i,p-ates Aet.
s;,zh
In M.,,.,,,,.,.i ef'. Sefddrfa".I. Ho,pit4Jv K,,fdip (AIR. 1970 SC
1407), it wu held that Kwji Holy Family Hospiti! was: not industry
because it wa.s a non•profir making body and its work was i.n the
nature of ,raining. research and treaQneO.L Similar!)", it was held that
Safdarju.n.g: Hospital was no. an indur.ry, because it wa.s a place of
trtat=nent q( pa,ienu, rue u a depa.nme.o.t of government a.od th\.lS ;i
pan of the functions of the govc~t. &t io &lf#lot't Waur S11pP!f
case (AIR 1978 SC S◄S), the SU?Cemo Coun overruled Sefth,j"ll.f
Hoq,ilaJ cue and upbela the decision given in Ahl,,,dtz.bad T.xtik ca.se.
In &,_,,,ht, WP1tTS'¢Pgene, Krisha.a lycr.J. said: ..Even though
.a research inninu.e may be a separate entity ducon.ocaed from 1be
many indunrie:t which fouaded the uinitute it,dl. it can be reguded a.s
::in organisation. propelled by ,ysumatic activity. modelled on co-
operation between CfllP.loyer and employee and cakulated to t hrow up
d.iscos.·erte$ and innow.tions, etc:. wruch beoefi, individual industries and
tbe n;ition in ttnns of g()()(U a.nd services a.od we.1th. lt foUo,i.•g that
research institute IJ.iJd: run without p rofit fll0livc, are industries.,.
The nature. of the act,vmes o! Indian Space & Research
O~ci.on, LS.R.O.• hu a beuin,s on the $0vereign functi.ons of the
State, and hence it•i.s n ot an industry within the meanins; of Sec, 2G)
 ,.
!:r;
;t;)l;,, f,
_llO . Labour tow - I . Industrial Di~Putes A~t•.; ~inition of,l~~J,t~
• • ' • '· . ;,· ,. t . ,., , ;,,;"
(1,{~1r.i ha,Uar; UOl, ~90 ~C lS-l). Ho;evet: if1\R~s,,,11,if'!ltil Roo~ . The Apex Court observed: ."'Jrt'htde:r that an ilctivi,ty mav be
V ulxi,,p;C.,;,, 'H,1lkr,,bad (1990) 2 L•b·IJ 577 (AP), ihe N>t!o~[ reg-ardcd as in undcnaking anaJogOJfiOtrtde or buSiAesl it ~~be o:i
,o
- ~ Ai\<_ncy (N.RS.A.J .,.., h,ld l)e'.;, indu,ay-.. ,, dri#~ otga;ajscd 0} arrang~· in a mantte,: i.n'-wli.ich il tt"tde or butincss' h
rtOt e:rforlti -aoy,soverejgn function.. Some imeofu:nt fun.ctiom 0£ . ge..oin.lly orguti~ or a/ranged. Jt mUSt-.ilOt be casu:al no~mUS'tl it ~
for oneself n0.\' for ple3S\ltt'. And a-·musttest on CO-O~tion ~eea~,
0
'

' .. . 1
Ageu.fy/ttb1.e to consultan·c y scrvi.ccs of ruivcy &cilities., which arc
n o . n.
~ "--- -· . ' 'new tO"l ,.ftp ..
J>

-,·<,~-; _, ,
JlU;lat,00.S-, ,

. ,. ' 'l,,!,Cnmu~arch Infciwte for Yoga U an "Iadusuy• [S~h

;
I
~ f
~.QlP!o)'c.r :t.Dd c.lnploy(CS wb.ot~ oJ'itc. toget.bc.r
prooucri.O'!, ..Je O< distril>ution of m.,iecia) gooW,..;,~';]r is ..tittly
V'U0l. 1990LIC'NOC 7S (Del.Ji • · i.rrelt\Ut whether o; not 't here is lProfi.t motive or JPYeStmcllt of i,
. 't cap~ iu fUCh ~ - Also it ooes nor ~erwr
ns ~. -ity
. • Nbaid.xd ~
. Other ActtVmff q- •· • t by GO"t'ertl.Ment. Jt '3lso makn'no diffcrcnoe that the material services "'.
rendcii,cl by tl:e ui>denaking arc il1 ~bli~ !nter<St." ; I' ,J-
•, A~ ..i,_',;,·MiJk.~;mOilD~c,;~,aChombe(t
-~ £ Co,mm.uce:, ai .Pal'tW5hip Firm 0£ A&OUllt';riu a R~~ Tb.e llilur R,fi,f Committee,• clwitibi,; non-profi!.rmklng~
l --~ Assocla1ion ~lCI~rlt Meiw.cu, a Book s~op:2~rr eun.
in4S:tlboi; ~ ~rgadi$a,ioft f~~ ro:
~n~ ~dief wo;~ ~ hda to be,.;
,.

~.. .
.,.daPlf•""
""" ' ·" e-u • ' · •·-•·-'--'s•-"·•' ·l' • . ·
-~ · -;:-1i/ .are~ucaut.Qge J ~ u 1 . ~ ~ - --~
; f o~the put'po$t ofcare and tteatmem of animals bas ti:ee'n beld l'0 W t
..... '

Li¥;:~~,1r-:f ,.., 'F JCa V

.
~~;; (AlR. ·1~
?,.f2
lormtd
. . 1it
,.
,

SC 7GJ)p' ch~f ..... •

~ 10d-ustry•o.n the p.rmc1ple laid down- ut &lf.!l,!m l~ttr S1'J?P!>' case; .,
Similarly, held t.iiat llihu Kha<il G~yog Sangh ·; , "1\S#>duiiry. A~,,.
$Ociety fanned fo.r the p-u.rp0Se' of p t'Ot&lion_, care ic.<l.:ucatmt:ot ofi:t
old, inf,nn ...d inj~ cows, etc. :incl also ~ed il1 activity i,(.,lling
milli ..,.., held to be an industry [T.li•& ,r~ P,vyn#kv'(Ibt w.,...., '•
Fcderatiob #Of'-U:)9ia ChUrtkr, of Comfucicie arui Indu.m-y was .field
o;,. io ~ ~ i_?cl~'n'~Thc! F~Cruion arMed·on 's,:.U~~t~ aCUvities :w, AlR 1971.SC 2◄:t-i . . . _'!! ~ • • , $ .. q'
" as$1n: 1tnntmbers.::U1d other busin ~smt.n ind Ulchm-riilists and eve6 , ' A plil.ec c,f w nbip (maRtG,} wlicrc y,onhip is done by Pl!~u on
! n~~~ ~~ uu~~. fn giving thcm'.1~~n0 su~ to t a regu12r Wage b and whe.re· iC!ippc-aji ltOm the &ala.JXO sbttt diat
t~~ ~ins _a~! surplus in .tht ~d ~er cxpc~ ~ ~aidJot' , '.
~·~eu-1¥1.~~~ ~~:uJ>.their_~~es •~ solving CMU'.~cu.lrics and~
m o ~ oond:snom and f.tcilines for them from the Goverur:ac.nt. mwngp,01,•.\ rt ,s i:lear tba, th, Cllt<fl>me..i of o o ~ nmsre ..,d
(/) ~e&e activif~es' ~busid~ activities an~ mlienaI a:ervi~.. 1'be Couitt
~ela Fedc-rat10Jl.to be lll'I uidustry norwtthsu.nding tha,t.it'S: obj«u are
foe this ceuon MJ,,;;, y w indlih'r y {W..;..,,,;,. ~f Ml_,.A-/~
D,!,/,iJ,i,, Tnut v .I.tart ef W..B. (1991)' 1'.l:ib LJ 145 (Ci!Ji Similarly,
Na'/! '
·
0.
~
:, ., chariubleb r that it does not make even Whtcre profits'are t.
p rofit O!' a Jain ,'em.pie has [been htJd lO be Uldustty. However,,· Ori.sia Higlj. .,..
:, ma~, th~.~ n~ disujbuted llfl\ong the. Jl\Cmbcn. · f' Col.U't Ji.as h~ld ~ SriJagann2th,!~PJ?~ sp.iritualirutitutiott ~ it$ ~:;- ; ·.,
(1) p ~ !w,et/()o ;, spiritual 1. >:iieflt oJffmdu public, iod tbmfo..,
C. ~ . . hi ,Wp,,t,,,f..,, (1J~11.Sta11d.rrdr Lufi/1111$11· <?u~ (Am 1976 SC 145), itt Musaging Cortl.miuee is not erlg~ed i.o indust".ry. ~ ~ ·S/j,,':
~
;:;:
Indian S ~ T.rin.nut1on was heJd to 111 industry. One of the imny
~bjeee.! oft.he inst:irution was to prepare 211c:I promote the generally !
p.,.,h,,,-r., P.• o,,,.,.,,
v M,,,,,,..,,w;;, qdji.kl,,, !J,,ht!J (1993) 1 UJ 523/ ·
~dd Wt a temple iu which die :acti.'!filis ~Dhann, Dhiaa; Bhaktl and.-
:::,-
()
Q)
-t1dopticl s!~ dards on national :ui.d iotera.ation.a! basis ttbtioi to , l
jtruc:turcs;1:o~ JJ?'ltemls, pnctids, op,tnltiobs, ·« c. Swtcb.N:1$ ·
Puji ue,oa.rried on is nal an industfy:t. "'. . . "* r'
3 '1.~tt tkbilieattt'o ruinencs describing construaio.na!, o~rationab and I..·
~ .! _('\:'
Cl
1'
(/)
(")
·!edJOJal ttquittinenu o£ a m2terial, a prod\lCt be.a process tor .i gi~ ~ --,---------,r,~~( J•
; -1 · ~1'-.,..
~"t I

1
J-.
~·p ~ . 1:,lle> ~irution b;U several laboraiori~ carrying out testing 1 0
0

Q) "· In i,ie •ct1YIUM LQf

IM\etho,-. tefTll)M ~ell 0,/).trfffi, Ohy~M, ~•n.tP'4•
~
:,
:,
Ii oper.tb<)ns, are
--,
Is an J'ld•......,1
o:1 ,
tr.
t::
(1)
~ j·
(ii
'

112 L a b our Law - t
A vilbge Pa.nchay,t t is not a.n industry. 8.ut, the I>;,.nch.ay.n S:uniti:s
providing drinking waler by inst;i,lli,ng hand y.unp$ a.nd :u..inging rq.i:ii."$,
cte. " 'ere J,e~d to be i.t1dustry. So also Social Welfatt Ocpanm eut of
Gove rnment of R.:ij\\Sthan . Tn Mahu/J Bi>,;7111.u v .ftau ef M.P. (1994) 1
LLJ 1113 (MP}. it ba.$ beeo held that Legal Aid B;oard is an i.n.dus1ry.
F ut1c-t i.ons which help to secure just.ice arc not fuhctlons constiruting
adm.i.nistr.1.tion of justice. Those functioos of the l}oard are, therefore,
in oo sense $ovuC"igo ftinctions. Bomba.y lrou & $~ Labour Boa.rd,
., ,i;wtof}'. b~ rd. entrwted witl, the :t.dminJ$C'.m ion of law font:tioti.t
of the Su.re is not an i..ndustry• [HNJ«n Mithk v jBo..whcy In»> O" s,!,I
f..AP()Nr 8Mnl, 1991 U C 138.5 (Eom)]. S.ilikari a bupu Vika:s B,ao.k is an
'ioc;hi.nry'. A c::i.rwl:iting libr.uy run by the ~plo~ of C::runl Ww.1)"$
is oot an indU$try [J11ba., Bharlt.ar Garin v v.vq.fo•~·" ( 1993) 1 LlJ
IOO!J , , i GcWemmem: Departments
'
A Trade Union b1S b~n hcl<,i to be 11.0 in~uy. In Ostln11'1!)'11
Gqp.il Par.t»/-4/M v & slu,ip Mill Mtz~r Sa•,gh (199S) 2 Lab LJ 913
(Dom), the respondent tr.ide union e mployed. orpnisiog and assisunt
secret:1.ritt 'w d -al$O clerk$, :t«::Ou.l'lt:u;tts, pt,c>n$, etc. b W".1$ hdd: I~ cm-i.es-
oo synem.uic ::..ctivitJ which is orgaoi~ by cooptt,uio~ oJ the union
ruid its employtts.. Trade uni.oos satisfy more to nl3terial hunw1 w anu
and do not render services only to satisfy spiritual cra,·ing: or workmen.
T here is hudly an y dif(ertucc bet.ween thc.w()r~ ln the tr~dc 1,1nion
e mploym.fflt o r elsewhere in a business house. '
ln So.,p Vifu.r A parlmrnl Ownt:rr' H IXl,J{,g Mah:.1~1,;wu~ Soa't!J !.Jd. V
W'o-ntm,n (2002) 9 SCC 6S2, Ule ques~ion was.whethc:r a soci~y Conned
to m.1.int2Ul clWWJ'tess in Ute :apuunen rs and to render cerc1) ~·ioet
per,sonally to the-apanmcnt owners is an "industry". It ,wa.s coutendcd
t.h:at il ii -...n tl.ltity ;ip.a.rt: from the ap.ln.:mcnt.Own~ thu they do noi
tak~ $Crvic-es for tbems(.'}ves; dur servicei :lN' rendered to the o wne.n
through the Society formed by them; that they receive salary and
e.molument:s from the Socie~y; that they work 1.1Pder th e OOntrcl and
.s.upervis:ion of the Society; ,md thercfott 1he ~iery', :it:r:iviti¢j. 1llun N'
characteriz.ed -as fulfilling th~ huoun desire, wanl 3.0d. needs aud v.·ould
constirute an industry. . ·
T he court obSC'rvcd: All kinds of Se.t"\'ices aud callings would II()(
come within the .tmb i.t o f the ~ fi.n.h io'n o( 'ind1>$tr,Y; it Wll$ noi.i.ccd
~
(I)
C
I nd,~strial Disputes ~ct: Definition o( Indu stry l 13 C
$0 in. Battg:,kn W,:,u, SilfJP!>' ca.se. The whole purpo$e o( the LO. Act
"'
<)
(/)
i$ to foet.LS o n resolution of mdU$tTlal disputes and the ttgubr.ion will E
not meddle with every linl.e carpenter or a black$mith, .a cobbler or -:i
cycle repairer who comes ouUide the idea of indu.suy an.d industrial
"'
(.)
~
di,pute. This rationale, wrud, applies all along the lioe to small profeswn, ,<::::
like that of donrtsli.r sena11tJ Would apply to tho$e who are engaged by ;::
a group of fut-owners for rendering penoaal services even if that 'O
group is not amorphow but cryst:alliud into an a.ss0ruti.cm/soci.ely. Jt (I)
C
is dear when person.al service$ are. rendered to the members of a C
society :U1d clu1t $ociet}· is constituted onl-y for the p-..trposes of those ~
members to engage the servic.cs of such employw, such activity could (/)
ttPI be treated as an industry.
The Govemmeot Depanments eike T ouri.sm aocl Railways ha,•e been
b.Jd t0 be inch,w;c,;, M'=ly bccwse !he Military Dc:putmcm ~ run by
the Central CO\Tem.men.t in die ~-rcisc of its sovereign fuoctioru, tbe.
Ordinance Depot will not cease Co be an industry [StMt•~ir v :f«.,
G,-, ef T,di;,, Mi,4t,y ef J.4!,,,,r (1994) 2 I..LJ 665 {Mad)i
Simibdy, S t a t e ~ Depuuncat, Soci:a1 Welfare Depa,mnent,
Public Health Dcpanm.c.nt and 'Pri.muy Hu!th Centres', IndwtrW
Devdopmcct Centre for Tools and Dies, T amil N.11d\l Water SuppJy
and Dr.aiw.ge Board, Kenia Su.tc ~<:e md Tedmologia.l Museum,
B:mk No~ PrCis, are also hold to be ' indu$tries'. In Du I½f v Stal& of
h,,]ab (AIR. 1988 SC 1)82), the Irrigation De:pa.runent of the State of
Punj;,b was hdd to. be an. ~d.uslry.
In Gt1te.ra/ M""'W'°• T,ltlOm v A. Sri11iRu11 1t,rq (1997) 8 SCC 767,
ir was held tb.u according: io 1.b.e1:cs.t laid down lQ &11~ -WuMS"'PPfy
~ the Telecommunication Department of the Union. of India &$ ·an
.,industry" because it is CQg·aged in a commercial activity and the
Dep=ment u not «>gaged iD disclutging any of tbe.avcmgn functions
of the Sute'. The Supreme Court ove.miled the decision in T ~
Jt),Upbcuc (1996) 8 SCC 48'9, in which it was held that the func-tions
of the Post,al Dcpan~t are polrt of the $0VUei&n func-ti.ons of tbe
State and it is, therefore, lld/ an ...in4uslry'". The ¢OWt also ovcnuled the
decision in &~NJ' Ttltpb911e. Cunf.fflt Emplo_;UF' A.,rm. {AIR 1997 SC
 ·r, .. .
- 114
.
.. Labour Law .- I
' 1z8P) ~ .,hid, it was held du, th, Te!,pliooe Nig,.m is"'""°
'

•indusuyt "
' Indu.strial Di.s;,~tes ~ct:.
.Botb '-iti~e (overruled) cases were deliv'tteit l?y Two-Judge Beoche-s~
wh~ th,e.&Jf&I'~ ITT:,1,,S"1'J'& cue was giv~o by-a Seven.Judge Ben~
The Court, thu,, beld that judicial discipµa, ,..q.,;,,,·"' to follow tlic·
dec:i~ion of a lUger Bench. · "Dootda~". B!cause ·they carry on conm'.f,efci:al activity for prqfit .
l !-i,, ;,i,;,, ·&;,,, v D;, &,gg,., T,t,,.,. D,pt. (2001) 9 sec·382, th'.
trelccom pcputmertt w~ 11.gai.n hdd to be an indwtry..ln ~/iilt
. ~ . q'WD_ v M,,;;,,,.,,_ P: Kolhar.1-.ar (200i).9 sec 622, the Centdl
to
Putilic Works Depi. - CPWD has been h,)4 be an 'industry.' . ·,:
, ·· IJi ·H.K. Mahl..,,, v J141, ef G,fan;I (199S) _I l+-J 801 (Guj.); ii
•.~u.ue ·" ldth .tt emp · Ioyment offcrcu., 10 penoJlS• on the scarcny· rek~,0, ·
~•or IC' is undenaken by tb.o Si:tte c:i.nnot be,~ to be ei;nploymen~~
~ia~tr
"'industry"'. .~;c;1,U$~ it !s the p~im:tr,• and... \iiictioi;i Of
S1ate~ P{?'vidc, livelihood to penonrwh o are ,a fftt:ted by aatunl
.pi;
.tcalunitits-•DO, .s«oridJy the relief 'Work~i, not a'Otis:i.neli or in.c:lc.
. M6ic~u] (~•is.n0t ~ $)'$tematlc bi.it cuual :1-(:U.vrty; · t ~ miod th~ dOminant nirott of the ia~ities Of the projeg:ud ,Ile ·~r ·
. f
1l~~¼mR ,~.,· v P"_Wk Sffl"'": Cit#Tfl'lrf,',,, 1?8~ LIJ -f:43 ~r~)~~
t 1t • -~ ~eld, ~a.1 th~ ~uons ~ P~_blic s~1tt .Comruiisior.i1 ~~\~e
:~dm~J$"\ra4on of JU-stt~. ue U'l:JJen11b!e Md so the P.S.C. is not an
lndus~fJ'-•Iii.~Jfd JPo~ DtJI. C6"f»L twt' (t993f 2'LLJ 318, held di:tf·
Iii Corporation set 'up by State G<wem.meiit fol UP,lifmi.ent o( wOaiCQ
oCr~_~i!~~- of lnd~s~
fo Sta!t of U.P. v 111.dtutria/ Tn"b'N,ii/•W,
·!
./4tttt (2Q()2}".11V LCJ ')
0
~pp) l'f"OC 8, it ""'"b'e ld tlut the 'idit,lii..9n' 4,epan:rne.nt of the State ,
iJm induh-.ry. lnAI/ 1,u!ia &dio v Sairmh)tt,j,rn'(1998) 3 sec 237/ ft ';
,ns' held"dUt the word "'irtOUStry"'covtrtd ...All India ~dio"' aq,d J.-
by getting commercial ad·vercise.mer:iU t~l~cast:1/broadcast ana
further "~
ti.el( funetiom ann?t .be $:a.id to be of p~~ly sovereign n.aiUtt.. , ~
ln.D,w.._9 !!ref,,;_ x-p.,,~.rP',~"! (AIR 1997:SC 8S2),
I.he CeotN-1 Government rtferred certain i:jisput:6, arising ou.t of t
dt:nwtd3~of' tb~ employee, of the Di.ndlka~a.ftya Projcc:r,~tO thc ....!i
lru!umio.l Triijwul (under Sec. 10 o( the LO. Aot). The nlanagemem ~ ,
of the project cotlte,1ded Wi: the ptojeel" Wa's\ 1.ndert:aken by-fb~ G<>~. ~' . ,
clIndia in d¥'218C of iu ,overejgn funcuoi) 10 _tt!)abili1ate c\:,: t c ~
from Pak.istai::i and wu.thcttforc:not a,n•.-in~Uld. co~dy, CM
!•
refereooe Was incompeieo.t. The Supreme C()urt held ~ t ~ tin ~
nature·of dutic$ disC.h.a~ed by tht': work~ in the proittC it has to be_ ,
beld th1nhe s·aid p r # iu.o 'industry.. - ,.,_ ·• · ,f. ,J':
~h'.eth~ ~ p~i~ar function o(~ St_ ~; is or not a .st:>~gn ~"., ... ·
fu.octLOn depc:nds on die o:uure ofthe·poWe.r and the ni:1.nner,,ofiq.~,..
"""'.._ i>.ch,g;,onP..uimJ Schrm, in Pw>e bimict on<1 soc;.i t ~ If.,

....,_,_,...
~. or !,•eak.Cr: section
.
•; 15.ul,tO~~,-
\ . of.the society by ~ g . ~ help and ~. "
.
..,.
,
work in Abm,dmpr ciisrria u.adettaktn bj: the Fores,~•~--
·lbe Sunc Govet'nlllC.l,t bf MabMa.sbt" i.$:ia'mdUStry and nbt part'or ~
sovereign functions of~he Sute {Co/if cl,,,~,,;. ef fiN/1 v,J,.,;,w,th ~~­
(/) • UJ?de,r.all circu.m.mooes, 'agriculru.re"·aruio1; be ci1kd ~
At.m,,; Ki'•dllim (1996) ~ sec 29JJ. • /\grx:ulrutal Prod~ Marke1 "<:
~ .. ~r~co~ With ~wre•'o r ~ ~P,entiocl'.~i Committee• 11:a been ~ckt to be an indusay [A~lhmd Pn,du" Mdt.rt '
:,
:,
. fall ~tliin' tbe :ambit of 'ind\l$try' if it iliccts •Uiii"iiltrial and i2h<>uJ
Ull/111il',N V 1<.S. NinVl,iappa, 1998 Lab· IO 1312 ~rnt)l ,tnJsiJlll J.t
0
(1) ' dispu'i:°es;70T 'wilfare of Jab·o ur' and iatisfi'es the triptetest. . ·;;
C~- v Pr,JamSi,w, N. Pamat (2001) I l l) UIS (SC),;,,.,. holcl
C.
~
~ .i;~{f~e ~~ent, co~si:'lCtion and ~renanee of National~ tliat Forest Departmcttt jn the St·:ate of Gujarat w.u .lt«Ul indw'uy';} G
S~~fil&h,"'.a)'S .~ an essentw gov~runenE?J ~~n. lt is in no w:t)t.
;:;:
_. I r¢~~y am.logous tt? tnack or business. A ·govenunenuJ at;t:ivity to, bJ ,-
In 8haraJ Bi-... Tn,,t V Bb,,,pi B5J,; . Amm' Arsr;. '(~01) n
:::,-
._;;:w iqwi,;_~ .ii:nbi.t" of 'industry· must at l.em b:,e. a.oal.ogous to trade and
LL] 1064 (SC). the Supreme Cou~ oblen~ Wt the rrusr in que-snon· ~
() was engaged only ill promotion of Ut and preservation of anistic •
Q) ~~mtistbeandctneo,d.an~,~-· ~
aaiyiiy b;J~ it cin.be !:tl'OUgbt within die~four CQri:iert:{ 2.0,iw:iustiy.!;. ukct. S~ch ~ivici~ w_cre not !or.~~.¥~ 9J'Oductiori,.(of ,go«b ~ • 8)
.
3
(/) Th... ~ P<>bllc works dcporm1<m (buildmg'aiid roads lmncb) is I\°'...,_ aodservlttl), mvolvi.ng m systemauc: acuv,ny, the coopehttOp oft~ ,
(")
Q)
:,
'tm
U,,dustry [Sw, ef)½;,b v l<;,l.oi>S;,.g,i Alll NOC'?O,f (P&H)l' :
·efforu of errlploycr ;wd cn;,ployte. It Wa'$ t&erefore doubtful if the:, ~,..
~ t tt'USt could be classed as~ indus.tr)'. Thus, "'Bh..int $ia:wan~ fa
'
:,
(1)
f w;)
~

116 Labou r L11w - I
in Bhop.il, -;1 n.itjooaJ centre of excellence in ¢:re;1.cive arts is
inwsay.
In Sute ef RPfaJthdlt v GaN!Jkt Lal (2008) 2 sec 533, it WU held
that the. accepted conce-pl of "industry·· cannot be :1.pptied to Law
Oepan~nt of the Government.
C..,se Law: Re-examination or ~neatore W~ter Supply Case1
'
There c.an be no doubt thit cl\e law laid downjin &1$1/IJf't IP't:1"1" SNPP!J
& S ~ , B«lnl Ca.11 requires rec:ons:idera.ticjn in t he light of the
economlc liberalization ::in.d the wirious chanfes taking pl.ace in the
$0C:K't)-·. The eoun also has been feelli\g ch:i~ the ~ry liberal interprculioo
ti.ven to the provisions of labour Jawi h:a.s n9t
bdp,ed the a U$C of
i.ndusttW pc.ice nor the c-.msc of produetivity. j
Undoubtedly. it is of p:1.r-.am.ou11t import'~nce that a propc.r law
is framed to promote the welf-are of la.hour employed io irufU$tti~. [t
is equ.illy important th.it the wcl&.re of labour ejnployod in other kinds
of o rganisations (doing philanthropic and ch:l.tiu.ble aeti.viti.es) is ~o
pro mo tcd iand protected. B\ll the kind o f mei$1.lrCS wipch may be
requited for the 6ttcr m2y be d if(e~m. and ru.-ay h:i.vc to be b,J,ilorc:cl
t◊ $Uit ihe nature of the. organisa~iou. their infras'u vcturc :u,d their
fin.a.ncl\\l.c::apacity as a.I.so the needs of their ClrtplOyCC$..
Tl1~ S1.1prc:me Cou.n has observed:: :1ndu$uy, therefore, cannot
be strialy definod but only be described. Such ;i rule, however, leaves
too wide :i door open fer speculation ffld subje<:,t:ive notions as to
~·hat is ~ir:1.ble :1$ m industry. It is best to loo~ for a ro~ rule of
guid:i..noe.b}~ consideri.r.g w h2t the concept o! industry must.exdude.•
a. .,,. S.~fonl W6tc-r S/11¥1,Y & so-,.~ SO..fd VA. Rl\'lfPpe,. tno Supr•IM
CcH.111 tie$ re-Mwed the ealf.ier dicta of QO\lrt on tf'I• deflnltiern of 'Industry" 'e
U1e t0f.nt of crusader&. 11 w etit haywire al'l(j ffl.f beyond '!le cor,fincs of tll•
easo in tti. name or t.,dleial activ'is.-n to bling ev.ry ooneeNSl:ll&•activity in t11•
S'Neop of lrnt11W)"°, C~IC- , eJU!rnine the abovo' st.at$ffl411'11,
. (C.LC,-$VH, L.0..1-9$, LC./,-951
0o yo,u tl'llflk tt1111 lhe tnple tut proPQul\deCf by the ,4,pc!x Ccur1 in S.ngab't
W6t6( Svpplyc.ue IS t.tll Vi>lld In. d~ttnil'lil'l!J ,wtlethef' ar,y aet}H.y fs ' " lt'ld~,.,.,
or r«. Di ~; in thll light or ltQitll'ltw. •nd ~dkiof dove.bpmo,11l ift the riefd,
(O.U.,20,31
~
(I)
C
C
lndustrial Disputes Act: Defitiition of Industry 11 7
tr()/ an ~ G C.Ut: COUt BOARD ERHAKUI..AM, COCHIN v tHC>IAA DEVAI
"'
<)
(/)
, WR 1998 SC 2801 ► E
( A Two.Judge Bcocb obiervcd; Lookin g t.,o the "'
(.)
uncertain ty prevailing ii;i this ar~ aod in the light o f the
experience of the- la$t two decades in applying the test
laid down in the CA$C o( JJ11ngalore Wakr Supply case, it
i$ necessary that the J:aid ca,e ia re~x:u:nlned.
-
~
"§:
'O
However, a Thrtt-Judge Bench sa.id th~t the judgment
(I)
C
C
delivered by sc:vcq learned judges of thJs court in
Bangalore Water Supply cue docs not, io our opinion, ~
(/)
require any rtcoruidcntion.J
in this case, the q_uesiion w::is "beth« Coir Boa.rd is iUl
"industry" as dcfmed (o the Industrial
•ppello.n, Coir Boan! ha, been .-ct up
,?.:¥,e, Act, 19'47. The
the Coir !n.dustry
Act, 19S3 for tbe development of th.e coi.r industry aAd for chc
purpose tO levy a cwtor.ns duty on coir fi bre, c.oir yam and
coir products cxponcd lrom lnd.k. T he Coil' Board had
employed certain temponry clerks and rypi.rt, who were
discllarg.c:d. T hey Claimed that t,beir services could only be
terminated in 2.ecordancc: w~ t.b.c provisions of tb.e 1.0. Act.
T he Supreme Court' observed th.at in one se t of case¥
decided by this co-~ it ·has been held th.at the widest PQ.$$-ible
conno~tion should be Uvtn fo the word 'indu.ury' since 1.0.
A<:t w:a..s a wdfa.rc legislation for the welfare of workcn. T b\1$,
by elimiruti.ng the purpose of an industrW activity a.s earning
of profitsli!'leomc:/rcnirns, the «>wt brought io.to t.be sweep
o f :an indu.u:ry', :tctivicief ~'Ueb as charities, Government hospitals
giving free oedicines or 0tber pb.ibnthropic saeti.,'1.ties. At the
sam¢ time, th.ere: 6$ been another set of C2Ses where a ffighdy
mott restricted and coovintional me-~ning bas been given lO
the term 'indUSlr)". Thus., it h21 been held that an ech.ic.atibnal
instit\Jtion w.u· fflll a.a. iodu.st:tY•
The Apex Coun, in the ptt$ent cue, observed: Looking
to the un(;Crr.ai.t ny pr:ev-ai1i.og in this are~ and i.n the light of the
expcritnc:e of the la.st two d~es in a.pplylng the test lai~
 r.
118 La-h our LaW - I
I I .
lnd.us t~al, Disputes A~t:,...Def}-D:itlon or l~:~ll.ltrr;- q l9
.
,.I 1
down in the cm o{ ~ " Water 'sltj)pb,cue. it is n ~ doc, not, Lil O\lt Opinion., requU°C 11.ny reconsid~cion on a ··
that the said cue is ~ . lhsret.d Of le:kliog co Ul4ufui:a.l ,refe'rcnce being m:ide by :l ,t·w o-J~~ Be.a.di o£Jhl,s c:oun. ,
pe~ce snd welfare o f the conimu.nity (which was' the avo~ed " wl,kh ;. bound·bY. the judglll(llroj the hugei>~nch {Cw
pwpo,e of arufici,Jly =ending <he defuwion of indu\trn)tbc! 119a"' En,a""'-· &ni/4 v 1,,1;,;;v,;.,; ciooo) 1 sec '22◄J."'
. . h
app~on of.the LD . Act to o~iio.tion.s which~· <"Fte ,u,,,_ C...S<:'. PHrilCAL R£SEA~CH LAIIORAlORY v jcG. S!l,\R,\IA •
possµ,ty, not l.llten ded to be,so covered by the m2chineey· .siet . • (AIR 1997 SC 185'5) ' •t •. ·
up under the A ct, might haYe,dotle more damage th:ui g~ci,
that tb; '
t1.0 t ~ y to ~be organiia~~ ~al~~ the employ~~ b}'
..W ~~ilment of employmeiit 0 2 W , ~
The elimination o(profu ·tttO(i~Or ad~ to'gccrenite
. r {In. this ~ , the: Supr~mc\ 'court observld
P'}'!<iplet laid down in .&ih iilorci Wat.tr Supply c:a,c ..-,
Mt exluau.stive..] ;. ·#
Q<
<

incol'D( u the putpO$e Of irulU.$tr\at a.c;ivi,,y ha.t led ta a I~ &t"1this case.the question was ~ Jkth.er "'research £tut.e,•
run
nJJ.Diber of philuitb.ropie llrtd d).arit~e ac;tiviries being ~
~y th !.D. Act. In a m)nJ.~r Of casei- whett the' o~ ~ Q
by Gover~t can be uid to be~ n "'industry'". T~ physical ·
_ Res=cb Lab9nttory (PRL), pw>:!ic u-ust ~ u,id;r cl!.J ,
a -o·'
,...
,.i.s,.nu\ by vol~tuy social w~fk!", ~ are unable tO ~ope • Bomb~y Pul>l.ic/ I'run Act, 1930i if°an innitu'.te,dedicatcd to , .
with the ttqwremcnu o! J.D, Act. This bas led to a ccssstion ~ •
in ' . =1 ,llied ~ J;j;', fi=ceclmainl by du
~ .• \·-1 • 1 ' 0
,;:>epn. of Sf'CC,
°'T'"
• ,'i,.f !p~~-welfare ·.acdviti~.,. thl,1$. depf?vio.g the1 gcnC~~-- Central~ 1'1~ contnbµtions are also
made by t}ie GOvt. O! G uj dt and two··~ed\!'Utio.na(-
<'OO'l.ffl,l• wi:y of <'ott9:ld~"' bl~-~~.Gt. :u1d ,the-' ~m.ployttt
~ood. , ~• I Q
. . . . ~
• • • •~1 C
; ..-1.: ,.,,
.._ O, ►
I "

The S,jprcme Court ob.,.-.ed, ." PRL is e,,g,J'd.in pure •

• In the prese.nc case, the func.t iott of die Coir Boa.rd U ,o -0
~ in. space$Cience. TJit~eof rtSCatmis.t o ~
promote 00ir industry, open m.a.rk& fur it'.and provide &.c.ilit.ie,
to ~ the coi.r ~uy•$ rrcxi!-'¢U n>?re marketa.b¥ It ~!not ' knowledge ~out the formation an<!, evolution,.ofrhC-~ "
act up. to·run 1.0du.stry melf. LpoJ:ung to the predonunaat
it.Dy but the kootledge th\lS a ~ ;s_Mt i n t ~,for ale. rrh~
p~~~ ~f which it. up, cou~,Jl'M be ea1kd an indus;b-y. research wo;k carried on by the P lU. is not connecfut with
Howe~. if one were appJy. the teses laid down bi &,'W~
js .set jt
(/) t0 ,production, ~pply or distrii:tutl6n 0£materW:,gQOds/,enic:es. • _
Funher, PRL i, conducting~ noc: fo, •h• ~ fn or "l'1
~
:,
WdlwS~·case,..it is an o ~ti~ whcro thttt a.-e dnpiof m
and cmploytt$. The organization docs .s ome. useful workf!or of others. There is no materili to~ ow that the ~O\\'!c<IF. so
:, the bir1efit of o tbcrt. Therefore, i1 will have lQ be c;:allcd~ acquired by. PRL is marketable or, ha, tty oo~rcial ,{ue:
(1)
'~""'Y, urukr. th, LD. Act. ., It has not been pointed out .how" tbe·k.nowledge acqu,ired by
C.
~ The court condu~d: "We do not thiok th•t $UCh "a i>RL or the rc:,uli, of the r~ oocasionally pul;ili,hod by i,'
;:;: $Weeping ten was 1:9ntempbted·by the LO. Act; nor <Ji:ifWC will be ""1u! IO l""'OO$ <)the, tluA .i,.,,..eng,,t,,d;,, inxh type
:::,-
think:that every organiz.ation -which doet- useful service ~ d of S't-1.Kly. Tile object with._.'\\1 h(cli the n::scaicli. activity ~s· e
()
Q) ,mploy, people cu be lab.Ued •• "1du,t,y." · l und=akcn by PRL i, to obtain kno wledge for il,.,beodit o(
the Deptt. of Sp:.ot.. Its o~!_ve ls cot to tt.nder ~rvictes t~ • 0
3 . A Beoch of rhree Judge, of tbo Supttme Coun:,•mh-1~ oth~ nor in fac:i,it d <>e$ $0, ~.~lin an jncf.ittfi ~ e r::".~.
(/)
(")
,._considccing the inatter observ~: The judgment dclivcre<\
by
The Supreme Court furt.lier observed: "The printjpl~
i
(9
Q) $CVCll lea.med judges of this court ln Ba~ WakrS-,p/y c-..sc •
:, laid down in &ngakn tP'atrr :,,rt>A·.:.:•Ca$C " 'ere formulated as
71:.(. ~ ~ ~
:,
(1)
~
0
i

120 Lsbou r L1tw • J
this coun found the defi.oit.ioo of the. word "industry" v.1g\le
;ind '":".acher clumsy, vaporous :i.od t;i.lw.od,dwarf". Therefore,
while irnerprtting the words "unde.ruk.i.ng", '' ca.lli.ng" and
"'service"' which ate of much wider import, the principle o f
..,uir.i1ura,1#tii/' waJS ;1pplied and it w:ts held tb.1t they would
b~ "indmTey'° only i.f they arc found to be analogous to tnde
or busines;s. Fvribcrmorc-, an activity un~r't;akw by the
Government cann ot be regarded ais "'induscry" i.f it j5 done in
di.tcharge· of in sovereign function,:. One moic aspect to be
kept in m.fod i.s that the aforesaid priJici_ple$ are Poc. <:xhaustive
either ~s ~ w lut can be $$id to be sovc.re:it1,1 fonctiom or
as regards the o ther :lspec1$ deJ.lt with by the pourr".
· Aceording to the principle of ,ma"tw,11 ~ The me-.Aning
Qf 2 wol9 m.1y be asoen:ained h>• reference to ~o.se a.ssoci.at~d
witb it. T 'he words take, as it were, their colour from each
other i.e. •the m()re genenJ i.s restricted to a sen§e :an:i.logOI.» to
the l~s general. I Wa:u- S11p,p,jt
The Sup reme Court hcld: Neiilier from t ~ n.1mre of the
o rganization nor frooo d ie nature and charaq:cr of 2(:tiviry
carried on by it, can it be 5-00 to be an "wida-taijng• analogous
to business or tr~de. k is noc engaged Ul a comrnei¢nl indus~
activity and it cannot be de.scribed a:1 an «:oncrmic vcnnire/
commetci:tl enterprise as it is not its object tO prO ~ Mad
distribute services ._,Jticb would s-.uic;:fy the wa.riu and needs of
the con.sumer ocunrnv.n.ity. It is more an instituciQn discharging
govcrnmen~l fu ncti ons 12nd 'l domestic e-nterpri~e t..lu.n a
000l.lll¢rci.l enterprise. PRL, therefore. is not an ' indusny' even
a
though it is cu rying on the activity o f mean:h in system2tic
nunne.r with the help of iu employees, '3S it h ck.$ ih2t d c.me,nt
which wOuld nuke it :an orga::ii"t-ation carn•i'ng o,\ :in aetiVlty
,i;,.•hich c:tn be said to be u,alogous t o the arryi.ng o n Of a
t.r~e/busin.cs-s bcctu.se it is l).Qt producing/distributing $t:r;•lCC$
which are intended or 1:ne.wt foe satisfying human w-allts and
ne«h, 'a$ Oniin:arily understood. Consequently; emplt?yees of
Pi l are noc. "workmen' with.in the ~ ni11g of Sec. 2(s) of the
l.D. Act, . mai,n aim of the A:ltllte 1$ to regulate and h.amionise
'· .
~
(I)
C
C
lndUs-trial Disputes Act: Definition of l ndut:try 121
U.t.OINIQ Cur: STATE OF U.P. v JAi &llt SINGH
"'
<)
(/)
(2005) s sec 1 E
[A five-judge Bench of the Supreme Court observed th2t "'
(.)
the intetpretation g.ivt'n by majority Judges in Bangalore ~
Wtit.er SKpply due is over expan$ivc ·and one-sided· i.e. .<::::
;::
only worlcer-oric.ntcd. It requires '"°n.sickration by a
larger Bench.] · 'O
(I)
la this case, the i.nrerpretation of the definition of 'irulw try' as C
C
given by th, sev.n J udge Beru:h in ,he !la•_g,i,,, w.,,, Sl'}f>,J &
S't•VtVU Surd v A &j,zpptJ {1978) 2 sec 2 1), was in i.ssue. ~
(/)
The Apex Court observed that there: a.re compelling n!a.sons.
m ore i;.han one, before the Supreme Coun foe making a
reference on t he interpretation of the dd'ioition of .,industry"'
in See. 20} of. tbt" 1.D. Acr., to a larger ~neh and £or
rccoruidcntioo by it, i£ necessary, 0£the decision i n ~ "
trMr.
@ The decision i.n &:,,bW,., ll?Jt,r S'9P!, <011 was n ot
a 1,1.0aoimow deciti.on.
(u) Of the fo--e JudgC$, Who COn$tin.rtcd the majo rity,
three had given a rommort opinion but t'WO 0th.en
b.acl glven scpua~ ·ancl different opinioiu.
(UI) Majority opinioO expressed the view that their
intttpmaUQi;i·was o n l y ~ and temporary rill
the Jegulature stepped io. and removed vagueness
and confusion. In such <:irc:ummnccs it i.$ diffkuh
to ascerta in whethe:- the $a.id decision can be an
authoritat.iVC precedent.
(1'1 Worker-oriented -approach in eonstruing the
· dcfi.o.itipn o~indwuy (~ adopted in ~ h n ~ !"
S".PP!J, ·a1u). unmindful of the interest of the
employer and the public who 1.re the ultinu.te
benefi~iaric,;., i.s a. one-sided approach aod n.ot in
ac.cordance ~.:ah the provi.sloru 0£ the Act. The
celuionsbi~ between employers and c~ployees
 E)
- ·• J.

Labour ta_w-..1•
0
•. • !
for rminr:ainin~ inclust.rial ~ and~ hll.n?OOY··
In interpreting the mifu$trial Ja..,,; which a.i.rns-~ti
~ting ,ocbl _juuo, _,......, both of ~lo)""'"
ai,.d employees havC to~ kept in..View. ;
(v) A oecessity lOre-examinetbedeciw>n renderedin 1
Bai,~ Watrr S"f'P!J ~ , wu felt in. CtNT ~ ~~
(1998) 3 SCC 25?, wherein it was o bs-er ved dUtr
the cxpcricncc:of (?e lut. twO decades d0C$ n~t;, Q
appeu to be entirely happy. hmead ofl...fu,g to
1
.
iuddttri2I Pe~ and weJfue of the <»m.munit}' 0
(wh.kh was .me· ivowed purpose of a,n:ificiallYr·
...;:...,r.•• J . . ~ · • •
........,_."'""6uac~nmon of'·""·--'
............... .,.. -~
JI u:u:: .. "-·'·
n
0£ the Industrial Dispµies Act t;
o~tion! t
which :,,ere, quite poua."bly, n01 intended to be so~
c:Overcd by the maclunery kt vp under die tD. 1
Act., might have done morC' d~e tba.n good,t
not merely to the orguu.%1ltiOn.s' but Wo to
employees by the airt~ilment of cn,.p_loymel)t
opparrunities.
(,i) i, \VU •><P<ri,,,¢ed by .•i\'dp,lu,g in ind-i,J law I
that o~·cremphasis on the ~'u of the workers
a.nd undue c:urtailm'fnt .of diJ- rights o f the
ffllpioycrs to org:;n.iz.e their b ~ h ~ given rise!
(/) tO .a lugt number o( indUffl'i:al. aria labour clain;u'
~ r ~ in awards g.tanfuig huge amoUJlU of b~k ~
:, wage:i for pa.st yean~allegedly as legitimate due$!"
:,
(1)
of the workers, ..,ho' wef'e found to h.ave beed ~
C. illi;,Jly ..,,,,...u,d or ~ Such bwdemome :
1
~ aw-aids in many cases: rompcl tli:c ttnplo}ttr ha"ing
;:;: rr1oderne anet.f to cl0$e dowo 1ri1:t\1Stt'jes cau.si.ng I
:::,- h'3.t"ID to ·uiure:sts ofll.ot Only the"Ctllployer a.nd
() the workc:n but also die gt"Acn.t 'poblie who is the 1
Q)
ultlti,iie benef,ouy ofmmi-iil g<>Qdiud ,e,vice, '.
3
(/) froin the industry. Tb.C i •~~d'O\,:ei.nstatcrtlCot il-
(") and mean of '"&es for1past yea.rs by L:1.&our
Q)
:, Courts by ttta~ing .:cn stmll wi~S$ of ~
:,
(1)
~

. l
 ---- -- ----- ~
(I)
C
124 Labour Law • ? C
Ind.ustriaJ Disputes Act: Definition of Industry 125
·the pubJic utility service :answers the ten o f it
(t.i) $.uch activity is carried on with a motive to nuke
;iny pin or
"'
<)
(/)
being .in .,Uldwtry"" as ddi.ned in Sec. 2{j}. One E
· h11s not to lose ,i-ght of the fa«- that in activities P!ofit. and. indudes -
_like h0$piuls and edUCiltiou. concepu: like the r.iglu {a) any activity of che Dock Labow Board'9 established under "'
(.)
of the workers to go on •strike" or the anployu':1 section SA of the Dock Work us (Reguh tion of ~

right to .,dose down" and "l·ay off" :ire not
contemplated bee.use they are ,crvic~ in which
the mono is "'service to the community."
(xi) ,Even dtough the Aex. w~ ame nded in 1982 yet it
.h.~, renuined 1.1ncnforccd Md <.onfusion n.ill
ptev.iils. The jl'dicial interpret2tioo ~ms to be
one of the i.nhibiti.og factors in enfoteemcnc o f
th, =rnd«I delinition for the bst 2J ye>,,. Pressu,g
dem;1nds o( t:he c.:ompeting sectors o(cm ployers
·•nd employees ;md th¢ helplC$m~H of the
)egisfarure and the ext¢1.1rive in btingin~ juto force
the a.mended dclinition makes referenoe)imperuiw.
(nQ lt: is, therefore, for the la.rtp Bcocll of ~e Supreme
C<,vrt U) i.nterpm, the de&nitioo clause~ the pl'QC!lt
context widi t.hc experience of all t ~ ye.m. and
keeping in viev.• the unenforced amended defi.n.ition
·of "ind1.1s~ry".] · !!
Amer.ded Oefillftion o f Industry
Tht'. ~mended Sec. 2u) reads as under:
"lndusuy.. means any .systematic accivicy c:imed on by (:C)()J>Cr,ltion
herwel'.n -an emp1oycr .and his workmen {wbetbt""r sucli workmen an
employed by such emplO)'CT dirc<.::tly or by or throush ;uiy -agency,
including a cont'r.actor) for the prodUction, su.ppl y or distrjbution of
good:; or $Cn·ices with .t view to satisfy human Wutts (); wisba (not
being w:tntS or •A;i.she.$ which are merdy ~iritual or r~ligious i.n n:uure),
w hether or not, -
(i) an y cap it~ has been inve$u:d for the purp~ Of a.rryina, o n
,uch activity; or ·
· Employmea,) Ac,, 1948 (9 o( 1948), .<::::
;::
(b) aoy :activity rt'lating w the promotion of sales or business 'O
or bot.Ii. carried on by an C$tablishment• (I)
C
but docs Ml Ul.dude - C
(L) ;any agriculrural opcr u ion except where such agricultural ~
(/)
opcntk>n is carried.o n i.n an io.t.egn.ted manner with any other
.tetivity lbeing any'such :activity as i, re5erttd to i.n the lore-going
provisioru of thi.1 clause) and such other acciviry is: p redominant
oo,• .
~drm - For the pwpo$CS of this !'ub-dau.sc, 'agricukural Opc:ration•
does not indu<U any activity carried 04 in a plantation as defined in
clause: (f) of $cction 2 of rhe Plan~ tiofl$ Labour Act. 1951 (69 of
1951); or ·
(2) bo,pica!, or disp=ie,;•or
{3) educabocul. scientific, ~ or training UlKit:utions; or
(4} innit\ltions o wned and m.a..a.agcd by organ.isatiom wholly or
$llbsta.ntwly e-ng;1ged m·a,n.y clur.c.abk; ma1 or philanthropic
tavicc;or
(5) kbadi or vili'-ge in.duwics; or
(6) any activity of the' Gove-.rnment relatable to the sovereit,n
(uoctions o( th;, Govern= including all the aaivitits cani,d
OA by the depai-tm1:1nu of the Central Government dealing
with defence, re~rch, atomic energy o r t pau,; or
(7) any dom("$tic service; or
(8) .iany activity being a profeuior1 praciicod by .tn,i.odividual or
b0!3Y of in~ viduals, if the number of penons employed by

9, V'vtletrler • 00(:k Ubow Bllafd la en lnd1t$11y?

 J

J :M , i.
1 l ..
• Labour Law • l.
· •' ·
•
· ,
~1
' Q
• • ·c&e -lndividu.al or body of individu!Js, i.n;rel2tion,10 such.~ @
pt ofess:ion.is.ICss than ten; or · . ;
~ ~ .p':',1/4.~ .. " ·'" .· . • . .. •
(?) ,~~ le:civity. being: ao acti,-ity.~icd on,~r. ~ ~ pcr:auvc ~ G
sodcty or a club or an;, otbe~ ~ ·~y: o( 1ndivid~ U t h.t L
.~her of persons Wlployed by the co-oper.ttive 50eiery. dub r
0~
r,o·r Other like oody of individUais ~ ~btiort ·to such activity ii
.Je,s tb-al) ten.
I • 7 '!~

-~h e lrtdU3trW Dispute.s (Amendment) Aa-, 1982 en-a..c.ts altogether a

• .
!•
I ~ "rl
,.

"'" .... ~ • 6f iM.istry, This ..,,,odc,ddcfu,;i;k b .;, i;..., en/o,i,c!

~ tin no.k ft ciUlllfies tht eff«t ()( maily judici.ifdtcisiohS and anem~
:: " tQ d ujfy the eoO.Ricti.ng views.arUing oUt_M aJtC'r em interpretations ~
l 0'
f
· · of~ word ..~UStt')'' i dopted by the SUpremc coTh-t io. ~ cas~-l 'b,
,., T ~ ~ded definition to ·~ gre,;t ~ t "i.nc,.o[POiates the views
1
of the Sugreme Coun eitpressed in Bair!,,,.,, w.ittr s;,,J/j v A ~J,
~~~ se. I ~~a? ~~tpol-a1cd the •1ripS_fo test' la!4cio,b us·~ ·u_~ ~-
c:a~;~
but hos ~ w!ed nu.ny-a.¢tivitic. like h~niils, cducattonal UlStm&t~ f
- ~· ~~ ;_• .F
fn D(S•R,jv Stat, efP•1~ (AJR 1988·SC'll82), the Apox Caurt ,
,0t,;$e:tve<1.:·..It~i!,appropriate that the amenckd definition should be •-
brought in fo~e n ,uch or whh such further- alt('ratibns as auy be. !
• eonsiderCd Jl~~ .:and the legislative vi~ ·of the rna.tttr is madt '
kno~fi ~d~~ co~.sion in the field is cleared up;..

(/)

~
:,
FURTHER QUESTIONS
. '
:,
(1)
C. Q.1. Ma· t ho ~l"ollowing ~ to be trelikd BJ lfldUJll')I for the .
~ ' purposes of tbe lndustrl&l DUputes Act, 1947:• •
•
;:;:
:::T
' (JI) ; ;.. cbat'ltable hospital run by a private' ~ offering ~ - ' i 6
() l, it'rdafN-.enr and medj¢inC.s (or ~tient$, ~ i,loyiog a large·
Q)

3
peRNAcru staff of doctors, flW1c9 and Karatrlcharblemptoyin1i 0
(/) two doctors. ™<Q ~ ,. 8 con;if)OUl)d.er:,-artd-a peon. r
()
Q) '
. , I
:,
:, I
(1)
~

• '

128 Labour La,,· • I
Th\1$, a chari0ble project if it fulfils the triple test a r.m <)t be
exemp~ from scope o( definition of iadustT)•.
(◄) Dvt1illPMI 1t(J/uri tut ..\Vhere there is complex of activitieti, the
test would be predominant n,mis-e of servi~ :..nd i.ntcgrated
1111nu·e of dcpanmml:$. All departments i.ottgratcd with iodustty
will also be industry.
(S) lne cdrj)lioti to 'industry' are:
(:1) C:u,uil accivicics (because they are not systerual-ic).
(b) Srriall dub$, Co-()pe:r.uiva, research labs, gttnda.N/J which
have. ll,I\ essei)ti.illy noo-emj)Wyte charaaer.
(c) Single do.c tor/bwycr- u.ki.ng help from clerk (because there
h no <>rbo--i.ni$Cd Jabour). , an: net included.
(d} SelOess charitable :1ccivi.ti.es c:.u,-ied on ~gh volumccn
1
e .g. free legal or medi~t ~'1.ce.
(e) So\lercitn functions - sirialy under;totjd.. i.~. nuintefW'l.ce
of bw a.ad order, legisbtive functions arid judicial functions..
!
three categories - (a) to those c,hn
Cl,t,,f:,;/,k bu!J!kll'or..s - The~ fall into
yield p,ofit, bot the profit-s are nm siphoned off fo~a.hrui.nic p ~ ;
(b) those that make no p rofit but hire the sef'Vi.oesfof employees ~s in
any other business. but c.he goods/services whichke the output. -.ue
nude :1\·~i.l_able :u a low or no cci:st .to 1he ~digent poor; "nd (e) those
th:i.t :i.re ot1e.nted on a humane numon ful!ilkd by rpen v.ihc> work, not
~use f.hey are paid w:,,ges, but because-they sh~ the pass.ion for the
cause and derive job sacid:ac:tion. The fin-t two e.i.tciories :1.tt. industries,
bo~ n0t tl:v: third, on the :a.ssumptio1\ th:i.t they~ in~olve OO-Opcration
between cmploycn ud employees {Wa/lrS"PP!, c:a'$e);
Thus, ~ndian R«t Cron Society' and 'Indian CanC'.er Society',
Bomb~y we're held t (> Ix indu)itri.es.
Is Hospital ·~n lnduUryl
In St,m of &mix!,•, HO/fat,l M•t- s,,;,, (AIR 1%0. SC 610), the
Supreme Coµrt h.dd the State t$ eanying on ln ~updcmking' within Soc.
26) when it runs~ group 0£ hospitals for purpose of siving,medic;al
- -..,,
'
~
(I)
C
C
tndustr1al OJsputcs Act: Defini~ion of Indu$try 129
relief t<J the cit:i.J:.cm and for helping to impan medical education. The
"'
<)
(/)
coo.rt o bserv~ as fo llows: E
(i) Ao activity sysu,,mai:ically or habitually u..a.dert:lken fo r the "'
(.)
production or distribution of goods or for the rendering of ~
ma.c.criJ serviocs to the community at luge. or a part of i uc.b .<::::
c.:,mmueity wtth the lte.lp of employ~s is an 'undertaking.• ;::
Such an activity gen c:nlly involves the co-open.Don of tlie 'O
(I)
cmploye.r mc.:l the employees• and its object U lhc aacisfaccion C
of mater-:d human needs. It must be organised or arranged in C
a manner in Which trade or bU$.ine:ss is generally organised or ~
(/)
uru:tged. It m'.lSt rtOt be tasual, nor mw.t it be for one' s self
nor for j,leawre. Thus, dCurncic, person.al o r ca.sual services
(ai} ll is the cb.aucur of the acciviryin question which anrac:t.s the
provi.3ion.s of Sec. 2(i), who conducts the activity and whether
it. is conducted for profit o r nO.t, do n ot rMke a material
difference. Thi hfl4Jlilf/. of 411 ituiMl'rzy a, OIi 1.r,.,,,,mk 11ttfvity ittwlnlf.J
11f..ul111#1JI of ~la/ and ,ry,kma:titulfy ""1Ud #ff far J>nfa fr ID#
j)J"OdN'1iM or 14k of#<)di ~ • 61?tp/vr.m:I t( /abOIIT aw di.Jomi.td b" sht
C(Plrt INautlf profit ,1wiu rr11d i11t1tJrMt11t efIZrpikll Midi a,,ujrJnd ntJI
"""'"'7-
lhu.s, aetivitic, wbicb ba,-e no commcrcw implicatio~ such as hospita.ls
carTied on with pbib.nthtopic motives would be covered by the
expression 'undertaking'. T he mert fact that Goven:unent NnS such
a.ctiviry is immuerial. In case an ai:;ivity is ior.huuy if c.uricd on by a
priv.uc person, it would be so~ewn if carrit'd on by the Govemme::r:u, 10-
ln MP.tt'{!MU-111 ef Sajdo,j11,u Hupiial,v Ivtldip .fi-&h {AIR. 1970 SC
1406), i-c 'W'lS h~ld th;n a _place of tre;itmco.t o f patients n.in is a
department of tho government wu 1191 an indu.rtry because it was a
part of the func.tiom of ihe go,vernment. Cbuit:abte hos:piws run by
Go,·ernment or even privaie associations cannot be included in. the
10. 'It It V,. Ch•radet Of in. •dMly which deddH ~ q-u. ,tlon H to W~11Mr
ttl• •ctl,My. i~ qu•stiotl au,-ca tM pl'CMllons ol Seo. 2(1) of ltle Act: w~
c::on6.lc:::tt the aetlvity end v.tlett1e1 t I, c,oN!ueud f<lr prQQ or not. do !'Kit m1k.e
mllte1i1I di&e.ence~. Oiseu-s1. • . JC.LC...QI~
 _ .., ... t
qi -I
130 Labour Law - I ,
•• Pi
J:ndus~\ial Di~puteS Act: o~!tnitto_!l .of lnd~s~·
~ - ~- ,.n. • libc··;, 1• L o. '1 1.'j his , ,,c, . .,
deimition. of industry beause 1.bcy have n~t ctnbukcd upon ttenoi:Jf.c Wl.~wi.ng a tu pro es.uo~ UOC'b n o~ ~ Q".•On · pro1~1on in .any. .' (')
t.ct~~~ ~1l~g6·us to tr.a.de or b\1$ines.s. ¥ h ospi~:1.ls, ;t1uniog honie 9t imdligiblc sense with ·i;he aetivc ~ . i t i oii of-hit employee,. W the"' . L

l6
'a dlSpc~y tt tun as a business iQ a commercial ~y. di.ere may Se
•
principal/sol~ capital _,hich be brings iii to hJ:$.pro{t$$ion, is hi, ,pecial
, ~emenu pf ind~ry. ,
'l a D&m'!iu'n H,:p v 117,r~p (AIR 1975 SC 2032), the main
11 and peculiat.inteUect\12hnd eduCltion.-i"tequ'ipn'!Cnt. Subsi ~ work ·
wbic:h is purely incid.e.fual .O'Pe and ~hlcb•is intended\ o~ ~ the
.
9,
.solicitor in do.i.ng bis jpb has no dirctt relatioo to the pto'fessional -,
acd~!ty oft.be' ~ospit21 was impaning !)f tra.iuini-'in nursing and dfc
bcdRin.thc h0$p1til were me3Jtt fot thclr practical training. h was hefil ~.rvice ultimately rendq-td i. f the soliciiof. !fete is, no doj.d>t, a ltirid ;(
of co-oper,u ion bnwttP the solicitor aiid Jili einployees1 buuhn co- · · •
I _,
1~~
~oc,o; ~e.ao ~dustzy u it was.not curyihg On aiiy'economic activi~y
m tl:iec~tilre,ot tf:1.d1fot b u.tiness. ., ~n,t ion (eg. clerical ~r typing 'w~!J4> li"afnO direct of ~j,ue
Tu?_,,,.,.,
/.it W:"'!'S,"PP!! v A . ~ (A.JI', ,1978 SC 5◄8), 'l\• n:JWOn ro the advice or!scrvke which the ,olic:it.or renders to Ills, dicnt. ,o,,
-... .Supr,e_nit Courf ovuM.lled Sqfd4rfa."i Hi',pfkll'i.nd Qhd11rrt.g'ri Hos;,bal Tbe disringuubi~Jfe.ltllff.ofan mdU!U'Y1s that for the) , ~
cases~· :in il-.ppi-ovea the la'W kid down in HupftalMa~$(11)&, ~ of gQOCh or for the ttn4er~ o! servic:C:·£o.o.P.:t??1tion bet"Wttri capital ;•
and labour o.r betwt'CO. j:he employer and employm mu.11 ~ -'dirt<rand €)1
~ ltwu.~ld Iha~ -~ ~pital facility, ~ca.rt'h f roduc:u ~d tn.iniag ~ -
' ;ue .surely 5:rv1ces and l:~ce i.ndU$tr)'. The Govenime.at dtpanmeti~ mus.t be metJ/iaJ. While, it.he: servi.-oe rerldered ~ya solicitor ~i.o~ "
• ~.bi.l.e'\f-'!.de.naking_wclf:arc ~ctivides ca.no.cit~ said 10 be engi:&ed jif ·citlicr _i:adi.,-iduuly or ~ rki::g together with pirtne.n is senioe whid:i <D
· 'I,
:I cilschargu:ig $0vere1g-n funcnons and hen« Ouu-ide the 1mhit 0£ ~ Uessenrially individualf.!Thus, the Supreme Court gave the doctrine o( '
t,2G}.oft~~i"Ai!.t-. · • ~if'l"(lf r ll'M>p.-Ntrinn uu-1 che Fr.:antre n f.Jil-ier,; \~rnf~inns- as the t'Wo 0,
T huS on an atlal y.si.s Q( the entlre case law upto ~ h n Wm,r. t-ca.sor» ro exclude prof~sion.41 e.niirpi~fii)m the scope·of indu.ruy~
1
.s defined in See. 2(j). - lj" •
SN/JP/y c:Qf.c.on the subject, it c.ui be aid t!u.t'such hosf'i111.ls as are run
~y th e Go,·ettut1c:nt as p::irt of it$ $Ovcre!Sfl fuftc:tiom with· the tol~ Tbc profcssioa of Chart,,.;d Aooowit~·.,,d Audiror.i°bTu to be. 0. I
objc¢t of icndcrfug Cree service to the ~titnts are not indusuy. But all anmd=y. . \ -
' ~li"olp;,.l,. bo<h public and p<M>te, whab,,clwitabk «commcrtial In S,f""'frn: 1'/osp#al c.,,
(AIR 1970 SC \~07). the Apex Court
<ii
. would be.indwuy U they fulfil the triplt ten l.:a.id·doWn' in &;~o# took the view tluu professions must be·~udid from the ambit of
,.I
(/) SIIJ#.rca.se.
IV'Ptl( , ~• indmry. h observed: '"A profession ordiriarily isaD. OCOJpaioa ~ ',. el
' t
~ . mtdlocrual $.kill; oh.en covpkd with man.~ U<ill. Thus, 2 teacher uses .
1

:,
•T_ beid'o ~ a. charitable h ospital rurt by a private trust. offerin!
fr& ~Mees and employing a petnub.e.Gt staff ii ao indun.ry as tbefc~ ~ inttllet:tu:J. sk:LI. whae I I ~ ~ uses'~ In uy evem-, ~ are .
,. ~
:,
(1) " ~ SJ,len».tic activity, a oo-optntion brtwetn employer and empl~ • tt.01 eng;:iged in an occupation in which cmplqyers and employee$ co-
C. . aod rendtri.ug_ of services which $ati${'1.es.hum~n want$ and wishef; opuatc in the prochK-tion or $ale o£ c~~ or arn.llgeJnCa.tl'~{ - , CJ
'
~ · -,. Furth.er, the servioei of employees att ftired al in atty other bw.inetsJ1 their produ¢1io11 or $Ille o r disttibutio11: and thar ~.rvioes fanDOt b~
;:;: . '
:::,-
(b) Ii L~al Firm an Industry? . _ -~
de.sen"bed as nuterial
•
services. Mmr:tl services
•
involve
•
an 2Ctivity
o n ~ QOoOpttation betweeo ctnpl~~r and employ~ t~ ptovule. i
t "
cmicd
'\.
:tl
d
()
Q)

3
)n N1n·rM""'~ ~'!l1~ of CMT~l EMp/6J'fl!_·v MJ\ M.,ttr {AIR 1~62 SC~
lQ~Olt'Solic1i9 r. \ Casej, 1t w:tt held thot a soliw:or, fum carrying on
the ~ mmu_S1iry ~ ith the use_of somct~ g.,~ ch as el~,:; ppJt.;~r/
.,,ucr, ~portatiO.o, mail deliv('t)', td,e~~ nc~ and the ~·"ii./ l _ .
f' ,J
•
~

(/)
~"'i tl<!"_an "'°"'~ is "°'; an iadustry, ahhougb;'J"Cifi6UY coosill:_i<d, However this was overruled by ·a a~WatN' Sll_}p{j case (Am:
(")
Q) tt ls or-g-aniled as an w.dusttial concern. The· coUn hdd thar a pet1on 1978 SC548), wherein. it was hdd that in v~ o f the idr~·tructure o f 0'
:, ,: I
:, '
(1)
~
0
 ~
(I)
C
Indus trial Diipu tes -Act;, Definition of lnd~s-try 133 C
132 Labour Law • f
Q ,l, Ex.lminc whether ~hc. foUowina: fall within the definition of "'
<)
(/)
the offioe4 of profc"Jion~ pe~ons, the rom.ribution to the. $UC<:cs:s: of ·tndusuy• In ste.2 0) or the. l.ndusuial O iSpUlf:$ A ct, 1947:
the imtitut.ion comes not merdy from the profossio,ul or spcci:ali.:st but
E
from~ those ~•hos,e cxc.ell~noe in their rcspoctivc sphcra m~.k~ f0r Cl) A public/Oove:mmcnt senior &e«>ndill)' ~ hoo1. "'
(.)
tor.1.l proficiency. T hus funcUon;tl coop¢nation btt:wttn employer ~nd ~
employees is essential for the toW quality of .service. An engineer nuy (ii) A cbaril.tlbl-c education.al institute wbcrc: retired t~c.ben wwt .<::::
lc,$C ~ competitive contraci i.£ h.i.s typ~1 typed wrongly or shabbily oc Qn ,.-olurrt~I)' bui.s/A Khool Nn by an industrial Wldcrtak.ing. ;::
d«p-.ilf~ed hue. He ii: a direct contributory co the dis.i.ri.er. 'But in tht 'O
(I)
(iii) Cennl Jail, Delhi.
categories o f mch and atJjed professions when such co-oper-;nfon js C
C
missing.. Wey arc not indU$tries.
Krishna Iyer, J. in the above case observed: A single la~·ye.r, a ~
(/)
runl mcdic;al pr.:ictitioner or urban doctor with a liule iiSSista.nt :md / M A MiJk Supply Sc.heme of Government.
or menial ser"Vwt m.3y ply a pro!e$$iOn but may not be said to run rui
indu)t.ry... it L$ more like a pcnonal ~,•oc;itiop... the inuge- of industry (,.i) A Canteen runs by L'le Bar As.soci.ation of D<:Jbi.
o r even IJ'H.!11.iin du«cy is one of plunUty of workmen not an isolaled {L.CJJ -9Jl9J; L,C./- 9JJ
or single ,assistant o r attendant. Further, th~ is not so because an A.2.(i) Educational Institutions - whether an Industry
employee does no:. m.tkc ; i COrttrtbution. nor bic~\l,SC profCWcm is too Edocatioml institutions arc places cogagod in rendering matcriaJ scrvi<:CS
high co be qualified :u tc:tde or indusuy, b\lt ~etwe there is nothin;: of i.ntem~tio~ character. Thc~ o o l$ imputed. wM the purpose
like organised labour in $\icli cmplot-menr. Th~ whole p1,up0$e o f lht to train the minds of ind.ividU.als and help in the development of
lridU$1.rial Oisp1,1tes Aa i-s to £~ on retc>lutio)l of indusui;U dispuies mentitl fu.c:ulti.cs. 'l11ere ;u-e i.nstitution,1 large enough cmployiog penom
and 'rcgvlacio11 of i.ndutlri:J relations and not co ~dle with t:vcry little io v.u-iou& oapacitiie& ~ teach.en: who wb.olly and adus.ivdy devote
c:arpeatt-r i.n a village or blackmUih in .i town fho si~ with hiss.on ot thenuelves to the aeadem.ie work. The large categories o! persons
~isu.nt to work for the eustomen who trek in! For this r~ n, ~·hicb employed in education.al inscirucion.s have gi\'en them~ semblance of
.--pplies .ill along the line, lO small profesUons,\icuy baJ1dicn.Cuineni a place in the nature of industry.
domestic scrv-.uns and the like, the $())jcitor or ~ tor or rural eng.incct,
even like the butcher, the baker a!'ld the coutd~-sti.c.k maker, with aii
In U,,;,m;r,efD,/h;v R.mNo1h(MR 1963 SC 1873), i,....,
lield
by the Supreme: Court th.at the wo rk of impaning ttlucatio.a i$ more a
ass.istant or without, docs 11# fall within the dd'mitio n o( industry,
• • I mimon and .i voe.it.ion than proCessioii or trade or business and th.ettfore
Thus, a legal coru.ultauc fi.nn en1ployiog two law graduates, UM'cnity l$ ~t 'U\ industry. T h e aim of an educational institution is
scenogniphcr an d a peon is -ui iodl.&St t')'. • • imparting eduen-ion; it cannot be ailed u 'LndustriaJ pro0CS$.• T eachen
(c) . It is an industry as t'h e strvicn of emploxees u~ hired ai io .., not workmen withln me meat1i•g n(Sec. 2(,) ol th, Aet. s..bordina"'
any other b\.lsinen. lf the legal ~tants"havp volunteered IO &taf! plays a mioor and insignificant ro'I.e in imJnning education.
render free servi« then it would have been .a..n.iotlust.ry. G . i ~ . J. ,.;a ,"The &.tioaive objea of .&=aon would
{d) .Su answer to pa.rt (a} above, mtke it '\'ery diffieult tQ ~mil-te it to the position ol any t rade,
(c) SN answer to pan (b) above. bUlinc:ss, etc. within the meaning of Sec. 2G). Education seeks to build
updte pertoi:ulity o f the p1,1,~,by a$$i4'\ing to hi& physical, i.ntc:llectu:al
(f) -It is 'Htan indunry.
moral and C'mocional dc-vclopment. To speak of this edncariooal procm
(g) J( is ,1111ra.o industry.
 · ~.
• > . - ,.,-'' ' '
~

,: .\~ , Labour L~;rt .. . ~ l Indu.:sll'_lal Disp1.1te.s Act, : D ef1.nition of ·Indus.to· ",. 135 0•
lri. terms of.industry sOundi so cO.mplculy incongruous t:1u{ obe i$ 'li,e Court. £u"1,;r obsavcd: fh~ ,re• n ~ ;~ ,ctivui;. 0
Mp~ ~tthe Act~ dclibent'Clf ~ ~f!,ll~ workmen # r Sec.
2{s) as to exdudc teac;:hcn £ro_m its scope.... ·
of the Univerrit~ Admini.stritiO~ Anstrabl>• ind~ ~1iicl.i ;~,
~cable aJthouglj. klll:illAry (!)'d i e ~ ~ Cl\t~ri~~Forfima.nc,c,•
..•
"'k is well known tbai. the Uoi'/Cfsity o{ Delhi aod mo\~ other a UM-ersity rmy b.-.ivc a I ~ pl'iii.ijrig p~~ a sep~ \iut-consufira.ble1 0
• .,,.__ t• ,.,.::; O , ~ <
- ~QW11u.w:1.1t. It may b.tvc a .....~ ~_oi;transpon ~
L,,.,_ .w ith an Utn>
JJ
education:iJ iruciruci.o1'1$ are OOt fonkcf Of ~ o d for ma.kmg profit;
bO d oubt, the a~ce ·of profit m otl,e would not take the wor-..1£ of ft
'o f ~ g suf~. may h;avc: 9; ~eddous'. a~i.stntir~st~ Qt;·
• officers and. clerical cadres. It tmy have .KaramchfflS olN-aiious Jiucs:. As
0
any io.n:itution ouuide Sec. 2u) if the requ.ireruena of the $ll.id difwcioo
are otherwise satisfied, We ha;ve referred to the absenoe o(pi:oftt
d,; o,;po,,ti,. ef ~ (AIR 19'>0 SG'675j ha.s ,effe«lv<iy ruled, these- a,i·
'fflo1ive only to emphasise the fact that the wof'k u.nde:rt:tken W ,sueh opc:r;atioru ~ in-~ t y or coJ1¥-.-ety rmy be~ted'tt ifufu.ru)t.,
'tbe S1.1prctpC Court fejectefd ~ aigument th'a~ ~t&Qll is n ot
«lu~~ionU i.nstirutions differ, from tl;ie nor mal concept o l.th.deor
buSJncs_s. E.ssenr.w.ly~the cr~tion o! a well-educiited be.alth~ 'uOg 2.0 indu.ttry bea:~ it ~-clopfd\e,pc"isonality of th~ ~ pupil. lt: $i~d: ..Ii ~
g~ruion,imbucd with a nt>onal progr,o,iveoudoolt-o,o life ibid,;. i$ tn.1e that OW' $0Cial v-.iiucs :issig,J.,..i higli pl-ace of hOnout to etlucation,
-~h.e. ~?!e
:aim of educ:ation, OUUlOt at all be compar~ or a.s.sithlhied
i.
but liow·does it Follow frQm thlt thi.t educacion i.t not~-service. W'e d
wJth whar~y be de$Cnbed ll$ i.nd;.inria.l bU$me$s.•
••Jn µ~;,.,,S -1- · S.,;,/) v w.n. c.lf<:, Bmpi,,-7"' Ai,..;,,,;,,
,.(1%0).l,llJ 472 (Cal), the Cal= Higl, Coon ob,crv,d A A ~
ha~e to look at die educatiolW aWvitjr from the ang.1~' of the A:ct', .i&l
$0\,-ie-.,ed the.
•
i.o-__,...i~l\ts of industry:"'~ fulfiJled.• - ·'
&l""'°
, In s.,....av,,,;v T« Pwuiifi O~J.,,Jo,,rC....Mloh (1992) ~ ll!J
•
. •' 'J
,,...~ ~ d , nri the in,~llivn~ nr r . l l ~ Q f ~n. irw.li.vi.t1\1it.l,'U ., 11.0t 1
394 an
(P&H), it...., hdd dut Kuniksbc<ia Universtt> ;. •ill<ltiary" :uid .0 '
penon employed therewith a s ~ lta work.map::11 bi,$ boec) held in
become an indusuy simply b«au;e i, ha. a large cstabli:sh.ment! Thcrc
may be an «j.uc:uional UlStit urion to which pµpils go h«a.u~ l ·the .s....,b a,.,Jr., />b!& v J;,,,,9 u~~(l?.91) 2 UJ.iJ62 (lii:PJ, mat
1 wlivcnity is an industry aad a dtrltof die WU\-caity ii2 ....,orkm.a.o. l.
's
~ .,.oclJeoo, of the teacher,; such inrutuoons are no< industry. Op d(, oditt -~I
~ " band, tbett may be ~rt inttitution whieh "$.O o@niicd that ft li nilt Thu,, di, P"""" posnioo .,·,:c;,•.t,.•~ insciluaom-~
depeodent upon the intellectual skill of m ~ but it ~(l~~isatioo tb.eu.niveni~ are ~ m i..timitidle)Ue. Now,thod'.e_~ of" d
w~ere a number of individual.$ join iogether to.,rcad« $CtvioCr Wliic:h a:lucariooal instirucioflS who ari ~ by the dc6bitM>c of workman
under Sec. 2(s) o(tbe.Aa will ~f~ ;U wor~of ,p. iAc:h1stg ,
(/)
~ght .even have a pl'?ht motive. Mab.y ~ c i ] imtitutiop.s llt'I! ~ <>o
thes, wia;
they cenainly come under ¥i<Jing of 'irulustry.' · ' ~ ·' ·, Therefore, a public/Gove~nt S(:n.ior se«>l>duy school ~ ~.n
'. .qi
~ sd-1.. ciSt
industry: .., ', . ) ·•
•
The above cases were ovc~d by B a ~ Watrr. 0
:,
:, ~ ,1'?78 SC 548), wh~n it w~hdd: If thctripletcm 0£;~ (ii) A chitriuble td\lrnion-:J U3~itute where. retired teachcrs.~ork
on voluntaty bam, is .««ffl~ • (Stt. e x ~ W: ~
(1)
C. activity, co-apencion betweert empJO~ 1nd empl~ a.tid p~uction
of goods and $C'l'Vices were alone t9 ~ app~ a Univenicy, 1 ~ lft Ba~n Wattr S'NJ>P!J Cas'e). A $Choo! tUJ:l _
.Sy an~i.radllttt:i~ ,e
~
'WC undcrWcingisJMtanin~tl'Y. :~ -~.
;:;:
:::,-
()
_.~ ]½.~ ~t\Jte or «aching U?,Stitu~ will be indusuy. Tnc
u ih e ~redonuna.nt nature of th~ acuviif and ,rtJI the j,rc~mioant
; cliia~ ·~ biid down in U«hY-ffi!)'ojDtliJlcaSc. l'he rest ii: n~! i:he
te,t
(ui) c,,unl Jail, Delhi is,,.,~~.,...,..;.g-gn funclio11fviz.
nu.i,ncenana: of bw ~n&ordera.rc exdudoi &om the dc!iriitfOn
e\'
Q)
pr N<>mm,nt number of e.mployff:! ffltitled to enjoy the: 1:ie~ts o! of ind.Uffl'Y. .,,°" ' l ~. 0
3
(/) .tlff~\t:lnidie cis,e o( Ul educational iJHtihJtion, the na~ ~fa'cf.im (iv) ~o~ ~way is ~~~~·as it is noc a)O~~ ~~ '
1

,•'1
•is Cd'fC''tion whfcli is a ,,ma t0 th~ COtiifo\l.D(ty [Vidc e•:Jl;pj!J 10 a sm.ct stn.sc [SomN XN111arCi);rlft1J°N v Dlitnd Stg,,a4 (1970) ,
(")
Q)
. f ~ • Atst1t, of A.Nttra.lia v S1atr i,j v,ieto#A (1929) 41 CLR -569].
0
2U.J179~ - ' " ' .t " ·, t
:,
:,
(1)
~

l ..
,
J J
 -~ ~
(I)
C
136 1, abou r t, a w • J C

(v) A Milk Supply Schtmeol Gov,ernm,m i<an wdu,uy. ln.,-

.Mi/ic S11PP!J Stl,w:1t v LJN.lrrGwrr (1976} Lab . l.C . 863, J aipur
AMIT::8604000350 "'
<)
(/)
E
Milk Supply Sc.heme, a Government unden aking supplying
milk to the city of Jaipur under A nimal Husbiuldry Depcu-cn'lellt "'
(.)
has ~ n h eld ~s iadusu-y. It was o bserved tllat me.re !11£t th.at 6 ~
.<::::
it is a government unden2king cannot rnem that it e&.nnot be ;::
an _industry.
Definition of Workman
,:,
(vi) A <;:anteen run by the Bar Associ.2rion o f Oe1hl is an industry, (I)
C
Similar-ly, canteens and bonds run by an cducatiot.ul i.ustitute C
me:m t for $tlldents :i.re industry.
In 8nmP<!J r~~m Ca,.•tu11 & _pltgm ' Alt~(1~/u,, Pmbhdrk ri Trltp&w
"'
<)
(/)
E.>«bt,11.f, ,. f:Jt!iM ef/,rdt'a, a division bench o f Sup reme Court held that The de-finition of .._,.orknuo' is imporu.n.t becawe the !tldustri.d Disputes
Cllntc:c:n employees of tbc: phone exchanges att not wotkmen, :.md t he Act aims at invcztigation a.nd settlement of industritl dispute which
tdccommur:ticltion ~ m ent it$d{ is noi. :in • indus.try." The tc:koorn implies >1. di££ere noe between emplOyer and workmen. Therefore i
dcpanment ~ mprlSc:$ not only civilian employees, who :are not co~ered tribun" has right to ~ judieue an indusui.al dis-pu-re only when such -a.
by t he b.bou.r Jn 1$. but ~ so workme n employed in the telephone dispute relates to an employee who is a wo rkman.
exchange and othc.r undertakings o f the d epartment. c:ngagc:d in
nu.nuf:a.eturing telephone im tromcnts and other equipments. Y ct the Sec. 2(s) 1
coun bas come to the condusion that the entire: dppll.l"tme-.ot is n ot an "Workman'" as defined in Sec. 2{s} means:
"industry.". 'l'he court held that one of the dviie$lOf the St:tte was !o
provldc telcoommuakation $c:t\-ices to the general Public 2.$ an aineniiy
u
Any person (includutg app,,,.i,,) employed in an iruhutry co do
a:ny manual. unskilled., skilled, supervisory, teehnical, operational, or
~nd so it w ~ a o enential pan of t be U>\.'Cttisn fu:Pctions of the Sule d c:rioal wor-k. for hi.re or rcwan:l, whether the teems oI employment be
as a welfu e·St2te. j ex.press or implied and for t.h.e purposes of any proce!di.n:gs under th is
1n G '!'m::I Mmtllp. Ttlutm v A. S n'dr.JJd L11tl1991) 8 sec
767. Act in relation to an indwtrial dispute. includes any rucb person who
it w ~ howeve r, held that according to the test J~d down in&l':.§!orr bu been ~ dw;hargcd or rctrcadaed UI co:wccti.on with or as
Watrr S"PJ",f;~sc, the T elecommunication O~pu,plent of the U nion a conscqu.mce of th.at dispute or whose dis11Wsal, discharge or
of India is an ..industry"' because i-r is en~ged in a ~rnmercial aetivi1y retrcoclunem has kd to that dispu~c;
:u1d tl,e Oeputmc:nt is not cn~ god in discharging ioy of the sovereign
functions of t:he State. The Supreme Court over.r"µlc:d the decision in 1, WhO It 8 'Wo!1tma!Y •• defned I.Widtt Ste. 2(1) Oflhie 1.0.Act?
&m¼}• Ttkp/)t)11, GJhtthJ Emfk>wt' A t.rm. (AIR i997j SC 2817) in which (D.U.--2010! (LC.JI-Q.S)
it '\>.•u held th.u the: Td ephone Nig:am is no/an "i.ndu.st..r}'." All persons ompl~ In Ole lnd1;5tty are not ~ v ~ r ltl4' pro-.1'$10nf or
the 1.0.A(:t. 19'1. Conmtnl. (LC,1-$15)
a'ilica!ly 11uimlM !fie cldnllion of. 'Wock.man' under See. 2(1) of tho 1.0. Mt.
1947 ! 10 .U ,·10'1)

· 1137)
 I
138 Labour Lilw - l Def init i On., of : wo'r.kman,\; . 139
! . •\.• .-(. ,--
but does 1tot include an): such person · The tesi:~,o 1?e applled .ip ()fder to ·deCide Whether an emplo~
is a work.ma.t.tiis ·io t.llke lnto acCOuA't his basic o r p rin1aryA u1les; @d~
© .w ho is subject co the :Anny Act, 1950, Air Force Act 1956, or,
~he donwian' purpose Of liii·~MtmenL The ~ ignatiOn of'an
Na~ Ace t957, ~r . . f. ~ loyoc U oot of m\lcll importi.neefthe focus has to ~ on tb.q.,~urc
00 who·uemploycd m thepolioese.rvJO:.orasa.nofficv:r/employce
b£ the duties. hus. where tJie·e&p!Oiec's main' fuiietion il ofh}~1)"
1

of a .Pi-iJon:
2 or . . ,
'«briic.l owie and wh=ver ~ r y luru;,;,o,u lie f.u to dJ,ch'!'&"·
wb.o is employed mi\inly in a DWJagerial or adminimafiv~
,'
capactty, or ·
. rn! tnettly inc$denu1 tO the job,;wic.h bo power to'itiidate·c:li9ci.plip¥f~
action. the caiployte, would be i ~orknw:t' (S.K. -'Maitoi v 1\<f/f <la,~tr.1
(iv) · who being employed in .ntp,rNo,y c::tpacity dn.ws w~ge, 'sahN Cct AIR jl 994 SC 1824)'.1 Ia JS,t"fa SINJI 0,1 ·ftMW & Di11ri/Nti;,«
.cxcccdin"g-Jts: .10,000 per merueQ1 {v.•.e.f. iS,9.20tol prtot io C., I,JJ.,v M.d,,J:!. S"!ff Aum. (AIR:c1911 SC 922), tbiS"l'=• <qou,:t
t Wludi it was Rs. 1600), or·exCrc-~$- ~it.her 6y the n?nfte o f <)i,,ervod (Ul t!lu c:ase, Depot ~ n t s whoie.d uti.i ..,_ c)~e>l. 0

o·'..
~es.or by rea.son.s ol powc-rs ;.~in~ funcd01l~hia.lhly h~d to be wor~n]: .-~ · ,\ · - ,
·~ - ~o f ·11 P'anPs-ria! 1''21.ture. . • ~ i;- (i) The mr,umu rcco~ pr._ th:~ dclinitio~ ,(m,nJial, tuU\<ill&i; ,
•• 1t in~y fi-e: notM that in the earlier definition. of 1956. the o~'l tta• $killed, technical, opebtiod:ll, cleric~ ~i: supervisory).,._~,e 1
"•killed, unskilled;"manwl" where,s by 1932 .&ndment the legwatute imporunt ~ co be c ~orkman, a person'.s ;;vork mwt,~J u1 ~
hai~di~'!£¥ ~ order to-~u.al, uwkillod( wlkd'". The de~ri~
s«ii(•l.h;i• ll/ree P""" . .~
ie one of th~ c:atcg~ri~ 7:'_:i •· ~ •ft! .
(ii) Thr. ~ r ~~;:At-oJUy whffl - a . ~ 11 a·workinan 0
(1}":·Sututoey JXW?ffll.lll of workm:m. ~f within o ne of the catigo.,_rj~.Jt ls inc:orf,ef:f.rto sure th,J:..?J.tY · '
i ~t:~ ~ ion (viz. a' di~scd ~o"~ U.a ~bt~ )- f emplofee Of an in.dwgy nOC-'c o~ within the Mptions~
would be a ;"~.rk.matl._Fo. +mp1~,'•~~~S:~ ~ i v~dO·
(3) -Categories-of pctsons excluded. ~:
. ' not come within ~y ~t¥~ttg9ncs aria FC~ n« c o \ ~ 1
byexceptionsandue,M·a:otwor~~ 1 ,,
Statut~ry.-Meantna· of Workman :[
(iO If the duties of a petSOik•ppear to' fillJn m.ore tha\ one·
Jrb.e•csscntial condition of a peooll being a:w-orkma.n within the ieh:h catcgOry, u y part su~qry uid part clCiJcal. chen fiis m)lin
(/) of.the dtf'Wtion [Sec. 2(,)] is tlut be mutt bo cmi,loycd in a.n ltl&~ work will dctermfue thC riature of 1bfs emplor.:ineht,'
~
:,
'·.. ~ -,h<,:e mu,i be employment of his by w Clll!)loyerand <here ~list notvith&tandi.ol driltJ\i.~tally ®n~~qrc other tyP.~ of
:, \ b:c.a relatio~¥P ~cw~n 1:1i.e: emplc,yer and~ ~s ~een emplo~e~. work (.A.,.,.J ~ ' hlrill, Pw. !Jd. v JI".,..&,,. 1960(18) F1.ll
(1) uid employed!'! master and sc-rvant. M . •appr,cnucc~ may_also ~"• 186i The....;,!test ii ch; ffi,in or subsu.otill .wo,k don, by. the
C. woNC~,.·~~ workm.an em.ployed oil a °"part:-time b.uis" wider,flle •employ=. -rt r I ~ ...,, '
~ colllroJ·an d s.upcrvirion of an employer is a workm.2.n [N,i,. 'D1!bi
;:;:
:::T <l
c.
Al,m,n t,;;. v A
•
s.-."$'.,
(200S) 10 sec 698i .
•
(i.v} Th~ if die main oi ~ ~tia} work U $U~c,l°Yf i1;0uld'
be helcl tb11t: they ~rd ~ Joyed to do super.visory 'fOi-i: ~ n,
()
Q)
.. Diteut• ""'iethoc • C.,p,onter • mployed In I jll 11 • wodcm,n,
though they nay alsC'/ ~O'doing $0me t~Cb:nictl, clerical:or
ma.aua1 w~. If. on die ~ 'hAtl.d, the S\l~ory·w ? ,-~ be
3
(/)
• ,o.u.-2etoi:s~.); incidental ro the main R~ Nbsta.otllll work.of tty O~f type
(')
By vlttl.le Of the Industrial Dlspieies (Am•ndmel'II) Ad, 2010, tri. supen,~o,y vi:t. clerical, maru.ul or rcm'onl, the ~ploym:nt :#oula. nOt,DC
Q) eiaff ~o~ w ages do not exceed Fts. 10,0C<>. pei: month ar11 bloug;ht iM!th.ln • • • • r
:, tti• •cope or the tenn ~ . ' JJl. a supcrvlSOry capaQty.'
:,
(1)
~
0
'.,

140 Labo ur t.aw • l
The definition of workman in Sec. 2(s) is exhaustive [MNkt..w K.
r,1fXlthl v Stni~r Dil,i'.rfor;a/ ·M an"l,'r, LJC AIR 2004 SC -1179). In S.K
I ~(l'&V v MMIJJ, Ch,z,uln, (1983) 2 llJ ◄ 92 (SC), it w a); hdd thia
imerpn:-t:11ion o f the provision. of the Indus-uial Oisputes Act, 1947
shot1Jd be libcna.l md prag;,mtic: so .u to .1dvance. the obj(ct of the Ac.:c.
J he words 'a.ny skilled or uru.killed, nunw.1, supervisory, tochnical or
d cric.U work' arc not intended to limit or .narrow the amplitude 0£ die
definition of wo:rkm:;m; on the Other hand, they ind,igte. :ind emphl!Si$e-
1he broad sweep of the definition which is designed to cover :ill cypes
o f pct$0ns employed in an indu.suy, irrespective o f whether they are
engaged in skilled or un.skillcd work, man\lal work, $1,1pcrvOOry work,
r«hni<::1.1 ,;a,•ork or deri~ work. Qui(e obviously, the bro2d i.·nencion L'$
tn cake in the entire 'labour for~• and c.xclude the 'mw.agcrial force. '
Th;11, of c:o\1rtc, i.s :i.s it $.hould be.
T () be a. '"'•orkman'• a per$0n m.USt fall in the fo!k>wing c;:au=g()n.e$:..
(1} .M.:1ntid:-1ny wo rk which predominandy uqu.ires$0me pbys:ic;J
exen.ion on the pan of penon e .g. a IJlt(J/; looking after t-h e
gardens.
(2) Ul!l/:ilkd: work whicb QC rnuo-CUnc:or oonu:non plac:c, and dOQ
n ot involve:ipplic:ttion of 2ny speci:tl lmowledgee.g. .\ oonductor
in a bus, a peon,
()} Sld/kd work invotving practical/special kno~ledgc, combined
with the :ability to -apply them wid1 dc:xtctitY, e.g. a eupe:utec.
(4) 'FtdJ#i.ol: work whi¢h iu volvei ~ppiic,nion! of K:ientiflc o r
c . e ~ ktiowledge e.g. doctot'S. I Ins..,,,., c..,. s"F
(5) O;x~ work invo)vi.ng operation of som~ maehi.nc/deviee
e.g. pilot. i M=lyohowu,g<hat theemployeo bad""' boa, pciformmg..,y ~
(6) Cltrltd ·work which ls p~minantl)• stenJtype or routine
and invol-..·es neither cxccssi, e mental o r physical work, viz.
1
111 ri.ting ledge.n, fil ing. corceSpOndent:e. entt ng cub ~ks,
ttt. . . ' wks oE"lcg;,I clerical=•· H e ~ lcg,I <>pinion,, dnh,d pl,ading,;
(1J S"f)mii-o,y: work which involves co.mrol bvu
method o f
exec;ution of work e.g. power to sanction JcaVc to any pf the
workmen worki.u_g under h im or to take disciplinary action
,lg;unst them. . .
~
(I)
C
C
Defi nition or •Workman 141
"'
<)
(/)
I n 8!,a,u1 BJ.,.,,..,,,, Tntlt v Bhan11 8~11 Arli1ts' Ahr1t. (2001) 7 E
SCC 630, the respondent ar'tt$t$ w orking in BbU"llt Bbawan Trust, at1
i ~rution engaged in promotioI!I of art and preservation o f artistic "'
(.)
ta!CDr.. were Ml held to be .,W'Orkmen". Ct was heJd,that •acting• ia.:i-olves ~
mere· exprtflioo of eteatiyc Went ffld the otbe:r work apan from .<::::
.i.cs:ing i.s ooly ancillary to· the main work,
;::
'O
The c:ou.rt observed: •An mist cnp&~d in the pr~ion of a (I)
C
d.n.ou or U1 ~:atre management or to putid;pc;te in a play cut by no C
sttttcli of imag,inatio n be termed as "'workman" bteal.J5C he d~.s not
indulge in any manual,. 11askilled or t"'Cb oical, opcrwonal or clerical work. ~
(/)
though h e may be skilled. it U not $\1(:Q a work wb.icb cu be m,d ljl,lt#III
rm, alo~g with other kinds of work meoiiooed in tbc dtfi:nition given
under Sec. 2(s). LO. N:t. The work that tb~ eupo.ndem artists perform
is in the ,:utwe of a ..creative., an :and their work is neither subjc« to
an o rdtt required from the Art Director nor from a.ny of the UU$u ."
' "'To cill a person with an aninic- talent and requisite tochniqm. a
skilled or manual worker .is ~t.Og«her Ulappropriatc. A n artist tnl.l$t be
cli,tix,gwsb,clfrcm • ak;JJod, nwn,,l wort.,, by th, ml,...,,, qvawc,. which
:a.re~ in an artisr, allied to tnitung and t ~ 1n performing
theirwo,k,utist.h..vc to brio;totl,.;,"""'- their......,.biliry, wem:and
~ sense of perception for \be pwpose of production of drama involviog
U'J the c ~ of such work the appliealion of corrccc technique and the
~eetion of the CMt,. t.be'pJay, t h e ~ o f presentation, et.c."
= I.Id. v -1i" s1,w, (AIR 200s sc 1050), i,
,... held d,., to fall within the defuution of wodtman, job of emp!oy<c
oonoerncd must &II widtin one or other cacegories ea.wnented in Sec. 2(s).
or super,.-isory duties (om o f the ~ 1 J . f to Sec. 2(s)J does nc,i f')I()~
nuke rum a workmon. ?a ,hi,.,..,, the respondent workman. po,,es,;ng.
lawdcg,:ttappomtcdasalepl .,.;,,,m, dun tobc , wodrm.n perlorming
~"Ppelbm before vari;,us oouru/authoritics a n d ~ qua,;.
judi;wfunctioa,.,.,_,;ry~indomc.ticc:oquirics""""'W<l<lunan.
 /f,,,,l
. ! ....•
.•'"~
'/:
Labour Law • J
.}
be fini tion Of Workmon
. f':-_.,
I . . • .. l ~-~- ,t ··~·-
S" unty 11'.tpcctof' - A SCC'Ur.ify lrii~ot: deputed ~t t-he gtt~ ·o
t,
• Ii ~ .1held that·~ a job womd n°'-;,make ~ a Woikma.n 1
unilef :ie,;,.2(l)..,Job ,of• clerk o«fut•nlr. im~lies SUffi>tJ'pe,wo,k &.:torr. ~as hdd to~ a ~or~ ~~:fh#. ~alUlogy Livihe,Suprerqe ·
(198◄Jj1
, .1 .
. witholit~.Jr_:s,[~!lU'Ol or dignity or ~tiv, or e!jativene.ss. The CO<>n [ V,d Prdm1 Gi,p,a v M./1 D,tl~ • ~i,/,, J,s;Ji,,
· (S) ' ,.,,,
(P)IJ}d.
'
..
"' .c.lspon9ent ~or ~ did not perform aily such. joo'iand his work U.J ,◄~ C J. , ·,.,i;. ' , ,i ,il. J
inV>9j.,·,:d<:r~atiyity. The Co'Un gav~ Um::u~ that •«eai:hers' sctViog i.a . Accountants . An ~«ov.ntmt ofa b~ .VfU hdd DO~ empf~~ i9:·n
cducatfonalinstitucions, 'advertising. ma.mget'$'; 'chemist' employed i,n :1, ' in a managcri'.d c:i.P+~
mereJy ~~( the.faet du.t~e ~ to si,gn, :;
.;ugar ,;,il~··•~tf sereagent' in cb.arie o·! ~,~ ~d 'ward Scaffrin 'a: 11 salary biUs o f the sµff [P•&,,b C...p,raliw llo,,At !Jd. v R.S.JJ!x,J;., Af}l.
,t.:.nne~f#fd.'ii •w~ ofnccr' in a co~rcial,cducational uurituiion; I
1 1975 SC 1898]. j . · . •• . . l; r
ha"e 211 "1-' ~en 6dd to be ,workmen. .t , Whete a stenographer cum Aoc'oun1211~ was appoui&xt u ~k~ 1
. fo, C ,.G,¢1• v ,Gi,x,S,,/1bl,.G,- p;,.,,.,,,,..,;.., IJd. (2007) 7 SCC 1ui.d '!TlU des:igmted u group Jelder"to look after the 1-otk of tw~
~1 i1 the af_P.eUantr a.n "'lndurui:al R.d.atioos El:«"Uci-.·e~ claimed lO bt I Other membcn of the group, the e~lo~ ~ .held t~·~ ·a w o ~!
J Orkm.aii+in~~h.is Work bcingof skilled1~re'chhlCU mtutt. !t f It was pointed out th.u where an e~~ " di$eh-~ mul~»-;
-wu beJa d~ac~.th~_duties undertaken by the~ap~ant o~h.el.mi.ngty Ii aaivitiet:, bi$ prim.u-y 100 basic d\lt~ :will determine,~~r be ~
feU within ~gerial cadre. He pve advice to~th:e ~cmcm from r:- a works.n2n or not (ArMI G,s,¥, }Ji!!~ v C/b. Gd&:( J,u/J, (19 5), • p,
.tlme to time; he hia other independent fwictio~ fridi·,s pttpan.tion
...'lil.1- .J __ ..c.. "" ,r ' .. d d •. -'- "I"· ., , ' ' '
D j.LJ ◄01 (SC)]. ·.~ , .J, -
·I
.
~ , uu.if
~k•
c,Bqwry re_pqru U\ con ua.ing uvmesuc enquu-ie,.
.
'
•
Assisw,i Engineu/Medk,I Offo<ei5 -ru....-mt Engineer ~ b l ,:
ltt a su-r factory wb;u11e. w."ll.jVr y•n.~o! lhc duties w.u not of • .l
_spedfl~~Elca~(~. ~ ;r ,..:
.- • k""~ ;-:-~.:.:C..I ---L - !-~1 \ •
sup~i$Cty 1!1ture and his.wor w,s ~u!!fuY lCU!W.~ ,._~ . na~e vl¼i•
• #

( Oevdopm~t _of~cer - A Developm.c!!t ~ffi~, w~:~ ~ a.L ift t mcrdy looking a'ftec the work 0£ the.workmen ~def bun u. well#
}.~ karponuc;ip wa,.b.eld to be worlm.ia::. K ~ m vac-w the 1 the concttned .nuch.i.n.e5 wl(h no power tO sanction ldlVc to @y of the'
· .n;2.tu~ 9f ~tj_d ~erfopnod by sUGb of6ccn:•and lhe pow.en venro in : workmen Working under hlm o·r io ta.k'e<lisciplinaiy a"dion againlt;....,
t hem t~!X ~~Pft!>~:be s:a!d to be eng;,,ged in aoy; idmininnrive .or It' them._. would be ~ workman f,},{/~ UP..ikt, Slfblr C.o~ ./ J'- v L?w~;.
.,,,.nagerW work [S.K v.,,.,, •
MaJ,,sb a.,,,,;,,, (1983) 2 LLJ 492 (SC)l i..,,;.;;, c.,,,,,,., 1990 LIC &15l l ' 1 1- ••'fl• ... ~I 1
(/) -".T he Court litld: •His principal duty apPtaJ to be to, org.uise and In B.Jm,,s/J S/t, Rm:l'mw Wdft V ,TM Cor,,,n,r., p.,.,.,M; D61. {1996) ,]; ~·1
'deviloP tlie b\lsi.ncis of the C.Orpontion U') the area alloned tO rum·aiid !l
~ L-ab.LJ 55 (Born), the. pctitjoner -was·•Jecti'oiul en~eipcdormio.'g
:,
:,
(1)
C.
\for lAAtf~rM~ tb recruit active 2Jld reliable ~en,U. tO tnin them ti:>
ca.n,DCw Mints$ 'and -co tender pos.t-ale seJ'VW!leS to pol.icy•ho'ldeh.
1:-'oweV~. he ha.s .n'6 authority to appoint ~nts or to tJ.kc clisciptinil')'
~ on ~~ iJienl: He bas no authority o> bina the"uc. He doc, nor .
wpc;.rvisory duties. He pleaded tJ_1.tt ~ perfomunce o f',hi, dudei he 11
'\\~.u using technical knowltdgc; th~~f~rc, he wa-s a wo~kman.
held tbat using of tet.hnical knowle~foes 001 cn;ulge ~e doaunmt
I~~,
~
ne
eJcnc-suech>ise tli~;,,.o,k of the ~enu though ~ ~quired to ll"Ain.1I , t
;:;:
:::,- ,·wd assis.t t.licin. He is c-xpcctOO to stimulale-ajia ~xciu the agetlrs t0 ' 5. Wht;the, tn• tcllo'NlnQ ate 'WOrkmel'I' ur.d.,.111• I.D, Aa., 1947.:-'
() Wark, whill.exercbini no ~rative COntrOI o,.,U them. ... 4
(1) Ata A.t,t4tallt ~ • I Offleer In ~l'.l ll'ldt.1ttry, ·
Q) - lt: -!:~ .•:,, ,I • •
· (ii) An AstiStar!l Etlgitle,er In • Munld~I CotPOtt1IO~ ~
3 " SJ.~•Hy in H.S. Cba,!Hs, v UC (1982) Lab IC 186◄ , a ' (II) An engrnNr eml)IO'red •• "' de"- Iii ~., hdu;fll'Y. .. . I
1
. ·
(/) De-v~op~me'?_t.O~cer ,w~s held to 1J:c' wo~~ H 5 ~:id to pe~or~ j • lP, ,;,.2011($t.,::j,.)) CL..C.Y..9S)y,·
(") rO'Ul'.Ule/ r:r12n\JlU, rneclimical a.nd clerical duues and had no rupcn'lSory o\ •<•
Q) (H.\i'l,t ll'I (Ill) casci. the e.n(lil!IMt WOl,,lldi tJ,<t 1110r1<meA when the i:pd'omrntnt r:i•~~
:, duty. ' or hi$ duty Is. doncat.J ~ '' l
:, 1l 1 '
(1) ' I
~

'
.a..
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C
Defi n it ion of Wo rkm a n 145 C
144 Labo u r La w - t

rurure of his supet"o'i$Ory duty 10 tcclumal. O n1y because a surgton or

repres.e-ntatives perform duties o f tkiUtdltor:hnical nature :1.nd ;ire a,s "'
<)
(/)
such w orkman, k wa., htld that the word 'skilled' lus tO be oonmutd E
a n e ngineer' ~!$Cd bi$ technical knowledge in performing his job it
9fl1"1,,,t'Atri! and thw cOll$trued w ould mean skilled work. wM thcr
c:i.nnot be nid tJi~t they 2.re workmen. "'
(.)

-
' A Medical Officu has been held to be a workm.tn [Dr. Slfft,vf,u manual or non-m.anw.l. which is of a genre of the. other types o! tlfotk
~
mentioned in the definition cl:i.use 2(s). The -work oS promotion of
Kmnar v VO/ 1986 Lab JC 1516 (All)). ihu~, a doctor empJored by sale:s of products or se:rvioes o f the esta.blishmc-.cn: is dist.iJ1ct froaii ;1nd '§:
a charitable hospital ls a worknun as he performs techni~.il work. indcpeJ>Oeo t of, the rypes ·o f wOrk cove-red by S«.. 2(t). A$ such the 'O
/\. Prkst - In Kua:.u 8.ba11 v S6m .Ran,, A,:vl>N!a,, Tn111 (1990) 1 Lab LJ medical representatives are not ~ed worktt$; nor are they ""technical" (I)
192, the Ke ~:al~ H igh Court held that a priest is oot a workttun. A C
or "opcr.u:i.¢J;i.al" workers. Th.US, their work is not ccwcrcd by any type C
P'!/4rt' can not . be equated with .1. mc--rt v.'<lg<: earner and his services
CAn not be ue.ttcd as m.anu:al or deri~J, et¢. There w~ di££ercnce
o f worb mentioned i.n the. nu.in body of the defuucion. 11icr&orc, a ~
medical repre.u:ntativc whose ma.in duty was ea.ovusing of Wes £or (/)
between a malxmt, cook or cJerk who wotk :around the p recincts of i.ncre.LSiag the busine$S o f the company is not a worlumn [The east is
tbe temple 'or its corridor and office roonu and a prien p l2ced in the being discussed· in detail b,IG»,J.
Sanrlr<m sa,,~iqmltl QDd who silently $.lid his pt'.1yers.
A sales reprm,.oi:ativc Was held not be a workman in &t'»ta Sbtll
Assistanl. Secretary of 'frad e Union - In Dai.rat~ Gupal Pam,!fapt
v Tvnht,fp, /ti.ill MA!{Jq.q,, Swr.f) (1995} 2 U.,j 913 (8om}, it was held th.1.t 0£1 S ~ ca.1e. However, ln a r ecent eu<'> Prw,,,r St1!tJ P,.'t. Lid. .v
1·be word "skilled" used in Sec. 2(i) ~ for mote auributcs o f ma.nu-al .1.Wti~Mt'S111tlh11r 1993 UC 1762, a Wes rcpttse.n:uive (doiag clerical
dexterity th.Mt intellectual dexterity. For o-iherwi.sc, it would m ean work also) is h e.Jd to be workman within the mea.oing o f Sec. 2(s}. It
wh.1tever the avQC:ati()nJ a person wou)d ncccss-arily be skilled. E\'C~ may b~ 0ot-cd that according to the Sales Promotion Employees
o1.voation ~ $Oll)C skill. Thw, A.s.<;ist:LJ:1t ~rics who arc carrying (Conditions of Services) Aet, 1976, all ~ and mtdical rcprcscntaiivcs
on thto function of tr:ide 1.)nionisti are llfll workman. They eannot also w: workmen (utcludin'g the sa.ksman in ~elow-roentlonecl oaie) ~
be said to have btcn employed in the OJ)(ncional capacity as trade those em.ployed in a supervi.sof}TCap:a.city dn.wing wages exceeding Rs.
w'lioilL,,'b. 10,000 per mcn.scm and those employ~d in nurugeriaJ or administrative
Mcdi(al/Sales Representatives' - In H.R. ,4r!}YJlfl/r!Ja v S(,llfd9t,(hrdi11) c,p,city.
{199:S) . 1 LLJ 303 (SC), the quest.ion
LrJ. w~.sj
w hether medlC,ll A pcn!)n cm.ployed by~ company as a section 1alcsm.ui to d o
a can1nssing-and to promcn:c the $~CS of the company's products
•
I
1
including: suggesting of ways and mc-a.llS to improve the Wes. a study
of W ~ r t condition, etc. which require the imaginative and creative
6. Wh.tller the foU0'4NI; :it o '-..ll"""'$n' UII~ 1h41 l ,O.A;t. j1g..7_
mind and which c.a.ruiot be termed u either man.\W·, skilled, wialcilled
Rs. to.coo per monltl
.
( i) A mcdlc.a1 rep,eHl'\la!Ne In a pllaimace!Jlleal ~any gctllne a u t.cy ol
l
fiO A mt,d!cai c•preuntatrv• . drrMi11g a sala ry oi Rs . {0,000 end ill$0 g~i,
. or cluical in n:tcure, would not be held to be a "workma.o' with.in tbt>
meaning of Sec. 2(s) (T.P. Sn'r,,,:utw v J,,f/~ Nat. Tolta.-n, C... Ltd. 199l
an ..acm1ona1¢0f'M'lit&lon « 4% on the ~ sis cl tn• inc>ntt1ly$at•• •
UC 2371 (SCH A ..Jc,man in the .i,nck mop ;, a workawi (M,,ttx,,
(il) A ••l. .l't\$1'1'""4,dic;,1 tep,ro$cn:ative tor eonvau'ir'l~H1$$ at1<1 di•l<lb1,11Jn;i
"'" , amplff-. ' T,,,,,.,, J,,,,,
v s••'!1 1995 KLJ 407 (Kern
(iv)A11 •o,,1'11 of l1!$Ul';ll\oee Cor.ipany ...t10 It canvaH!Ag! peoi,ht to ir'owro on o
OOMrtli»ien basis. !
{ v) A sliesm.an in ()o!tvClotl\ & General Mib .
(0.U.,2014'1.01 ,m,,, ll(C.t..C.-SM5::: I., C 146)
 -.-~
1' 146 Labour Lsw • I · . D e' f 1n1t1on
· · · -,:,A
o f W.otkn:u1n ' ~ 147

~~ • .:. ~ : H.R. ADYANTHAYA V SAkOOZ (iHOIA) LTD.'

~ [199◄
ffl ~,'' I .. />tl-,·,
tJ>,, tbermploycc'j ~ "":,,= maiiili":':'"=ckric.l oor)moj,al
I '
·~ sec tSf737l Q.o d, therefore. ht was not a wor~2?9 .. 18,..
~ig~, ec~ o could qualify
A

1
t ~ be o wo·rfunan within , .f -:,. k is th\U obrious f19.m th~ dcdy on,.t lut the tontiotion ·
D
We mun)Qg of the ID Act, he had.to satisfy that he did · !,
IJ
on beh• alf of the workman
•
beforel '
die·ltidustri-al
~
T ril:iunal a.s
work C?f ~iry of the four types mmti~nea in the maio r well ;u ,beforc thµ Coun was that die employee w.u doinf
b&l~ f the ddiftition and th-at' it waf iiOt eiiougb dlat' r, ei+her UW1u-al or plerical .wor k, .an.a diit not ool)" Ce. bad no
be di(i~n'.ot 1fal1 'with.in any o! tht £oUi:. (Xce-otloos in die ~
defuiitfbn.J . .~ f
'j'~dutic$ buthcw., doiotlui'.Yoi:\t uodertbe ~ I
of ~ .t supen.on ,uid, t~ore., he w.u ~ ~Orkm2n wiihJn the
I~~.
%: -<.

· Tbs qucui6Jl that /alls for oonsickrition in thC$C matter'$ t, l ,..

,· -
as
ntei.niog o f -:be definjcion of worJt.tn:ui' it $tOod·th"Jn~' Tb,· ' J

; ·1,:,_
wfieihli
-.
dil•tnedieal
I •
reprt$tnutives' a's thty,.2fe~ cooo.rooiily· (
1U10~► are WO!'kmltn according to the defi.n.ition of 'workman' ..
<lliP,ute in question had arisen prlOf 1
' f ,1 ... 1~~ - - __1____
- 66-t:
· -~ - 1 ·•
1956. The dcfuihlo11 1 .
() • W ~ ~• at,th,e JOCVa.Dt tlmc:,me\~ed onJy th.~ penoi:u
, , •1 l "" ~•.,
t1n~er Sec. 2(s) o! the Industrial Disi:n.1ie1 Act,'1947. . r ., who were employed to do u y skillea.-Or \ uiskilled aanWl1_9r
ck:ricai work. V · • i- ,.• Cf
•
'.~"'A ~..Judge B<.nch of th.i.t C9u:rt in M'!)' ¢ S:Zw · 1 . ~- .. . .,a ,1 .
l u,, .'
t.
t1,&y I.J,J. v w,,,.,.,.
(AIR 1%7 SC 67,) baa to ob),directly f . .(AJ!.
lo 13Jtrwl.ib SIHIJ Oil Stffll§ & D/i.'ribltlh11 Co.
19n ·SC 922), the ru,pute, among ~ft., whetb,r ,he Salts 0
i
with th~ question as to wbcthe.t the medical representative"'of
tk:~"'tc~lnp:i.oy.. <wbo W$$ disclu.~d frQtn s~rvitt, w:u ~ . Enginttring Rcprese.lltacives and Distnct Sm·es RrpJ'Cs<P.iativcs
~orkm:a.n und.r th.• IP Act. Th• Cou,n: referred to the ClDp,IOyccl in me company were ~O~Jl within thCmtaning
'tindiseuted .nature o f the duties of the employ« and found t of <be ID AC<. The d;sP)ote had ms,;, ~rior ro 28-10.1967.'Tbe
~ t o n beh31f of the workmen was that the dtfuttion oi
U,u ~is~ :i.in ~ork w:as t.h:at of ett1w..uing saln. Arty denea1 or "
manual "Olork thu he had to do was inddcotai to the said main 1• ~l;i,odanan' {wbkb at the ,.1"""',
timc111,o includocr~ , 'ct
wor,k; 'a.a.d could not take more than. asm:.U fNecion of the- ,, doing ~pervisory-and teehn.ical work)~ :tUeomP~~nsiv~
.~e for whkh ht had to work. 'tn the circ.u.mru.nces, the 1 aoo,':""'emplau:d that all penomemploy«I in·an indusuy mus(
n,cewrily fall in one·or <he o<htt of <he f,,u, cb,,es me,uion,d
~
~ urt held fhat the Tribunal's oort,clusion tha.t the employee · :1
in the nuin body of the defmition, vi.iif those doinf&iued or
(/)
wai a. workman under lhe ID AQ. was i.ncqrrcct. The Court ~
wu_killcd ma.n\ul work, .s.uperviso.ry: work, technical woik oc .'.,0t
0
Q)
:,
:,
als0~b$irved
., '
th:u the T ribun-3.l in th:n case sec~ to h,-vC·
, •-

duties a.t1.d h ad to work under the direction oflus superior 'f

•- I
bren:.1-ed ~wty by the ha that the employee had no _supcn<isoty : ; clerloal wo<lt, and «m,eque,,tly the ..,.ii, si»,,ld p,oeeoa on chi
"""'1Ptioo th>t every person ~ ,·worluiw, Ullless be fell Wider
·o
oU:~-,T~~ Co~ .h~~ that _would n.oc n ~ y ~ tlt:f j ou.:? f the four ~ o m to the ·& Goitb n: The Court...reJ~
(1)
C. thi,com,nrio,,. • . .
tlieempto,~•t d~ w~ tn:uJUy 1'XW1ual 6r ~ The Coun:
~ Held iba1 from what the Tribunal its('lfKad ~d, it Was dear ·1' Tbe Court reJerrcd to in bal'licr'dccision in ~ "Tq·ba.t,,,
;:;:
:::,-
J
.
I • 1 •ft-'
t ~ ~ poi.ottd out Wt the Co\Jt!>'f!Jfeld<hat stnee dude/
()
Q)
··:i 1 x ,..a sa·leel t991M•rt;i.tiY1t of• ~ . -mils potential cl:.l'lts in Orde, to.
11:1t,· em• P~ot<I by th• «impany, maintllin• te9ist:er of dlents and ko.9'
J.rJ.~ of ~e employ~ thtte were not ~ y.ttWl.wl or <le~ the
e.mj,loy~ was not a workman. T he C ourt also· ~inte'a 01,1t
3
(/)
eocqUflt• 01 .... f'l'llde by ~Im, 11,e Union ot S.:.s Rep'et,entat:wa of u,e ihat -although that deckioo was ba-st."d on , tlie defio.itiOn u it
1
tompagy t allfd an tni:lutt71a1 dispute rog ■rdtng. en.Ir terms af employment.. Ttje
0 ._Pf-'\n1fn8,Y obJ•aJon of tl'l• oomp;iny Is 1hat SUia R pl'ffonll-tives are r.ot ~ then, when the· ~·ords •supeh~ ~d 'ttt:b.d.i~' did
Q)
:, wod<menun,Clerlfle.l.D.Act. C•do.. '~·
:,
(1)
~
[

Labour Law .. J
not occur- tht:re, if every employee of an in d.\l$try w:u to be
a workm:m except those mentioned in I.he four exceptions.. t:he
' S~es ReprncntacivC'$ was neither clerical nor supuvi:sory nor
Cour dasswcacions, viz., man~ supervisory, teehn,iQi and clttica1
need not have been mentioned. io the definition, and ihc
workman could h:ave been defined .so as tO include evet)'
person employed in an ind'-1$1:ry aoept. whc.rc he wa.s co,,e:-ed
by one of the exceptions.8 'the specification of the. four types
of work, accon:iing to the Courr~ wu obviously intended to
hy down that an employee was to be a v.•orkm.ui only if be
was employed to do work of one of daose type$- There m.;ay
be employees who do not do ~.ny $Uch work and hen<t' would
be o u t of the scope: of the defini.t.iou, The Court tben gavo ;1n
ex:unplc of ruc:h worknun who would be outside thcdd'mitlOu
of workman even if he did no, fall in any of the exceptions.
Coinc-:idcnta.lly, the example given was that of 2 perr.on
employed in canvassing~ for an industry. According to the
Coun, he m;,y n0t be required w do :any paper work nor- may
he be ~equired co h111ve \\11)' tcduucal knowledge.. H e nuy not
be supe~·i.ting the work of anj• other emplo}'t"es. nor would
he be doing any skilled <>r- umkilled manual work. Ev-en if he
is an cmploy~e of the indunry, ht' would not be ,a workrnw.
b~use the work for whieb he is employed is not co,·crcd b y
the four typeii tncntioncd in tbc definition and not bcc:i.~ he
would be taken out of the definition being under o ne o f tbc
excx:p-J,ons.
In 811t'TJ1ah Six/I 41ft the v.•orkmen i nvolved were SaJcs
Engineering Rcprtsetttati.vC$ and O~net Sale\ Represe;ntlltives.
The di.s.pute had a.risen on 28~10-1967 w bc.n fbc categories of
9/0tkme.n doing superviSlOJ')' '311d technical wotk $tood included
Ut the definition of workmm. The Coun fouhd tlut the work
i & Bahr .-:gsr w-u atilt goC>d and was noc in terms disown«!.
8.
i
,r every «t'lp,Oye• Of an ""1uslly was to be • wo11<mail except 1hose mcMiOned
fl'I tht _fo\lr •xC$pUons, the tour CIH&!tic.atlc:ns, vij., manuat •up•l"Vi.60,Y,
t•cllnk•I and clerlcal need l'IOt h~._.. b• en mentlqn«J 11'1 the Qtll.nltlon ot
'wortman'. and the vr,,ofol;ml!'I ocukl h111wt bean defll"l&d so at to "'th.tel•
CMltY
~er-son o~)'ed In .n inCfUMIY •)(QOpt ~tle,e htt wa, C0'...-.0 by ono of. the
•XCOJ!UOf'ls ." DiKuss.. ! Pr"Omotion Employee' in Sec. 2 (d) of the SPE Act: "the sales
I
~
(I)
C
C
D e.finilion of Workrnan 149
"'
<)
(/)
done by the.Silis EogiMenng Represenw:ivei ;a,i, wdl as Dinrict
E
t~nical. An e..ffort wu rn:adc on behalf of the workmen to "'
(.)
contend tbn the work of Sales Engineering Repres.enutl'Ves ~
.<::::
w-as teehnical The. Coun r~U«l that contention by pointin&
out that the amowit of tedwical wont that ,they did was .wcillary
;::
'O
to the ch.id "Werk of promoting sales and the mere f2c.t th.at (I)
they p=sed technical kaowledge for such pu.rpo,e, did not C
C
make their ':"ork t:«:hn~I Tp;e Coun: Co f01md t!ut ;id.vi.sing
and removing complauns so as to promote sales ttmajned ~
ouwdc the scope of the teduiical work. AJ regards me Di.stria
(/)
Sal" Representatives• the argument wu that t~ir work WA$
awnly of clerical natutt whicli was nqativedoy the Cowt by
po111u.og out Lha1 1be clerical work involved was incideo1al to
their main work of promoting salel:,
However, the decisions in the ktcz QJCS, ~ SJ<. Vfflllrd
(1983), Du,,. c,w, (!984), and Ciba Gas, cases did not notice
the earlier dtt.i.s.ioru in M9 C Ba.tu, W'1}1,fC0 (A.IR 1964 SC
~72} 2nd ~Slwllcases ?,Dd the vuy same contention, viz.,
if a ~son did n~ fall within any of the categories of manual,
cle:nc:aJ, supcrvts0ry or t«hnic,J, be would qualify to be
workm::a.n mere.ly ~we h e is not covered by either of the
!ow: e;1u;eption.s to the dcfulition, was canvassed and tboug;b
negnived ia e.1rlier dcc.:"ioos, was acc.cptcd, F urther, in th<ne
cases the Development· Officer of the UC, the Security
Insp ector at the gate o f the factory a.nd Stenograpber-<:um•
~ t te$pectivdy, were held to be workmen on the: fu.c:t.s
of tbme cues, It ls the clccision of this Court in A Slhlt/mumbo/
cue (1989) which pointed out that !.he law la.id down in M'!J
We may nqw refer to the rdcva.nt provis.i.oru o f the~
Promotion Employee• (Cooditiona of Service) Ac-t. 1976 [tbe
SPE A~t] whieb came. into force w.e.£. ~)-1976 uid applied
fonhwit.b to every e$ta.bli.shment e-a.pgcd in pharmaceutical
i.ndumy by vinue of its Sec. 1(4).'The definition of the 'Sales
 r
r.. 0

150 Labour Law - I

·. I'
t
·1,
IID~fi n,tion 0 4 \i\~o rkman 11""' 15}
Q]
11,
promotion employ~ W:l.$.ftrffly ope who ~;-s ~.DAed lO
1
any work relating to promotion of sale, or buWlCSs o r boti{
tf,i ! . l' "'•
A Teacher' - A t;OaJtoveny ~i:ose,:1;11,•hether a teachcr""tn a school is.
t.
I~
oovei«i by the "4nitioa of wot~, It w,u held by1thc Ko~ High_
;u:I.O $COOndly, only such olthdll wl,o dttw w.tgt$'o.oc ~ Co"!.rt that he is iaoc a workman·(1987),..l LLJ '454. 'Ila_e./l?itr>;a High
Rs 750 per ~ m {excluding commis.sion) or tho.,e ~ho h~ Cou.n liu also held that a tc-Achi:r i.n'sc;;l,(>Ol run by tlctot')• is. noc a ~J
drawn . w.iges {including conuniuion) o r commission ~Q~ workmffl [ ( M,11u Sag.iv Mills LJ~ v fti:l,.oj Bibttr A.Di~ 962 ~a~ 4]. J
cxccc.din.g· Rs 9000 per ao.num whct~r theY. were domg
UAO,Ma c.ut:: M1S'5 A. SUNOAIU.M8AL V GIJVT. ·or ~
!0:1
supervisory work or not" ._.m, include_d in the said def.t.n.itiJb.t
T&e·only"nanire/type of Work which:~ "?! exdudccf&<;m tllr . o.v.lAH_,1£ ;0iu f oj
· ~ n w~. that which wi..s mfuuy in: ~gc-riaJ 61'{ {(t9ll9) ~ '°'i':61 (SC)] J:l
[In . order to ~ 2 workman an, c-mployee~.sbould 'be
• eapoc,,y. ~
cmploy~d ta do any skilled ~.r~i uuk.illecl11 m.eau~l. ~
_ T.h{ S~J; ;AC't Wa.s ame.nc:fe4.,} !I l~8f ~;, t~e s1¥-
~~i.60!)1, technical ~r c~erl~ ...,·ork. Ju9'ed in this
JlqlC.Ui:lmenr, among othen, the del'1DJ.tion 9:fsaies promot.iont
·e_~P,10~ !was c>Cpan'd.ed so as tO include ;u$.Uc.s prolllOHO~i~ Jighi., 2 ttachcr otunot be called a ~orkmanJ even though ,~ e
' etllpl?Y~f w_ith~ut ?. ceiling on· tbC'tr: wi~~ U~pt ,tpoS~f: · ~ 'e ducational i.nstiturio~' i.s,.~ ,.~ -~ ~nry,] - -~{ !
0
t'mpll)rcd o: engaged in a lll}tni.tflry ~P.a~ty dn(wfo.g W~J~,,h
exoe«ling Rs l6C9 f>cr mens.em ud those. einpJoycd or en.gagec:1 . !ln chis casc, the i111N was whedi~ clt~ appdhnt, a teacher in a
_priV1.te $Qlool. w~s a •wo.rkm~n.i-~ r;WU hdd hy tb~ Supreme
m'1lnly•in. m.~ r u l or adminiam'tive Cit.paCi.ty,
. . •'
Section 6of tft3t Aa tdade1lie Workmen Com~uon ·

forthwJth 10 the medical represt.ntauve1. It ~ppear"S di?,t ~c~·

SPE Act ~•as brought on the suo.ue book, as the Stat.emint,pfJ1
; .
''

Act, l~2.l, fod\in.rial. Disput~.( AC~~ 1947. etc.~ apP,lkaflet-•·· 1

Coun- thn in order to be a w prlmu.n .an anpto,:cc ab.ovld bo
j~oycd i:odo.1,0y tkillcdOr Wl$~ m:usUti, ~isory,
ttc;:b'aiciJ or ck:ricbl work. Judgcd'in dii.1 ~t, a t ~ cannot
1
b6 calJod a 'wodal,a.n• = n thoug/i an educatioo,1 in'..tination ~
.,,:~.
•
I
I \
t ·
'
" .<
"{J
l.\;)

€>1
Objects ~Qt: Reasons accompattyitig the Bill $bows, as a ~sul~ In the above menrior.ecl cue; 1t·wu held: Tli.e· ~ e n ,,
. (!f this Coun's judgm,tu i:n ,\.J"!'J & &kn-case. The ~Ltce ~IO)"<I byeducwcoal UlSU\"""!'! .,hethcr lhc said imtituaom
(/) _of Petitions (Rajya S:tbh.1) U, itS 13th Rt'po.rt submitted on 14,!f ate impartuig priina.ry, sceon<:tey, graduate or p:is~ltJte.. Q
~ 3-1972 biad "1me to the- conclusiot1. th.1t the ends of social o::ruauwn cannot. be called u 'wctlantn.•Impuurtgio ( ' ~tion
:,
:,
justii.e "\\•ould be met only by suiulily am¢t.tding t.hedefuiitl&n . which is We m.ain fun~on ofu~ch~r, ~not be7~niiifeted 0
(1)
O! die term ~workrtl.m' in the ID Act in the manner that ·tbCif• ., . okilled or unskjJkd, nunw, ~ . , cdmic,l o< clttil:al
C.
~ wOrk:nu.b utlcter tb'e ID Act. The COm.miceee also (el.!' th~tr
mcd.ical fCPi-CSenttttv~ Were also covered by the dcfiniriOn o{ , '"\\•ork. lmpaning;<,£ educatio~,i.s~t!te nanal'C o!'a,pwsion
noble. \--Ocat.i.on. A tca.cher e,dl.1(11,~ cli~. ao.d,~es them
or.. .., 0
;:;:
:::,-
oWi Worker.renv,ged in sales p~mdt:ion &howd similarly be
r co:n.st&"ttd 1S' workmen. The legislitui-c, Jio~•evtt; c<>osKlenid ~
fie to become resf)onsible ciduls;>-~ildren gro\v Underthe ' ()
II

()
it~~ ,appi:_opriate to h~ve ~ $tpara~ ~ n for go~1-1· Qle of tei-ebers-. The clerical ",lfOfk;"it any they may ,d oJ'ii·OnlY.
1n'cident3.I to tteii' principil o;',1, .of i~ching. . \i;-· •
,,

l
~ork
~
Q)
___________...;;; 'v..,... ..;~ -. • • r-
J; the' CO.odiiiomc of .services of the ,ilet.,.,pio.inotion'emploj,ee-5 )
~

3 uist..d ·o~ unending ,he ID A,,:, and hon« di, S1'1, Aet.J ·
(/) 9. w11ie!Mr 8 TNC!\et i& 8 ~11'\'f ~.:-C.rllt.• 1,0 , AQ. 1'4!1J t . t L
()
Q) I
[O,V,-2'Qf0($'<,oppJ/Z0'2t{C£..C.-f~t::L-.C.(FOM:d} f;,
,.,,_~ _, • , . " 6
:, Critlcaty examtle the <1edtion of lf'le ~,..,,. CO..-t lnA. .;,i~•J.:v Govt, ,J
◄
:,
(1) ! OfGoaWI\ tt&as9 t70t). - (t::C.11- 931
cl
~

l. .......... ~
 ~
(I)
C
C
1S2 Labou r Law • I Dcfinlt ((ln of Workma n 153
"'
<)
(/)
Jn.M,ry ¢ 1Jdhr (fntiiu) Lid, v IV'~r,tm;m (1964) 3 SCR In Ja#b PraJad S l11ba v Pruidi!IJ Ojfit:,,r, J..Abt)Nr Ctm,r, E
560, ,1 rq>resentarivc <'mploytd by a plw1lUC('U\ical firm whOM! (1992) 2 LLJ 33 (All), it was bdd that the Hc.d
duties con.sisu:d m:iinly of anv-.u$lllg ordcn and any clerical or
L,,,kno,;
Master o f a school is ·not a workman. In Matr4J111!tKI, Somti "'
(.)
m:1.111.1a.l work that be bad to do "''» only incidental to hi.$ Ht.m C,-11w1tl St~o/v Si4lt 'e f T.N. (1992) 1 ll.J 7.4S (b,{ad.), ~

mijn w Ork of ~ nv:a$$ing, wu held ,rN a wor.ktwn under Sec, .<::::

it wll;S.hd.d that P hysictl Education T Cllcher ii not a worluru.n. ;::
2(s) because he wu not mainly employed to do any skilled o r it is submitted that a phytieal instn.ictor an be workman 'O
tmsk illed manual or deric.il work for hi.re or reward -which because he ,s skilled in impacting s.pccial skill and knowledge. (I)
C
were the only tw o cl:a.»ei of employtts who q ualified for . Similarly. a cloa·o r oppointed as a lectuttr in a. Medical College IO C
being treated as ''t\•orkm.an· under the ddini1ioi1 o f the
exprc:ssion 'workman' Ul the Act, ll;S it stoOd then [Sec. 2(s) was
in S(lnpa, 0-op. S11,g;,r MJl.k J,.Jd. v Ajil Si~b (A.IR 200S ~
SC 100), it w.u held th.at tuehen serving in an educational (/)
ht,•.r2mended by in cluding 'persons doing teeh n.01 v.•ork a.s
insti.wUOn art: '«JI wol'~}
<A'ell as supervisory v.•ork').
It · was furthe r held: It is not possible to -ac.:cept dle Persons Held to b• Workmeti
s.u ggeni.ou that having regud ro the object of Uie Act, -all The follow ing pcnom are .wor4mm under the de6.nition of Sec. 2(s) of
employel!:t i.n ari. industry cxoept tb<Xt f:allin& under the f our the Act 11 :q ·
exceptions (i) to (iv) in Sec. 2(s) o f the Act shovld be treated
as "l'.'orktncn. T he aeceptanoc o! thi; 11.~mcnt will render the (.i) Bank Accountant; a clerk i.c-a bank.
words 'to do a ny $killed or unskilled, Jll2Jl~l, ; upervi.sory, Gi) Assistallt Modi.cal Officer, C lass ll in the Railways, u he
technicaJ or clerial work' meiUllllgk:s.s. A liber.J comtruerion iu pcr!orms ,cdinical wor& ( Dr. S11,vh X-,!'r v UOI (1986)
:iuggcsted wou1d b::avc be.en p ossible only i.n the ::absence. of uh, IC 1516 (All) (D.B.J i
these- words. The deci$ion ln M'!]'& &hr-case precludes us (w} Municipal Sectttary w hose duties are clerical -as well u
from u'kingsuch a ,iew, ~ pcivisory.
C?,,,,qg,i/J - T he above judgmcn, QQrrespottch to a more rc:«nt (~ Sub-editor o f a newspaper; Proof - ~ r in a new.s papcr.
j~ctnen~ by the Bomb2.y High Court in wh ich it W !I.$ held
(v) ~ttrin& subordinates.
that the wo rd "'sk.illed" used in Sec. 2(s) c.a.lls for mo.re :1.nributes
of m:wual dexterity th;io intellectual dexterity [Dtal'Q."rUfl' G,p,;1 (vi) A Pilot with Air India (i.e. com.mercial pilo,).12
p.,ttJ~ '-' R(IJhtri_Ja MIii .Mot,dM.r Sa'WJ (199S} 2 LL.§ 913'}. (YU) A nurse employed in •.a. governmental hospital (as she perfomu
lt m2.y be noted th:tt by 1982 ll.mcodmen,t, •skilled' is. not skilled work).
qu,lified by 'nwiwl'. Tbc Black's uw D ~ cl.-5n.,s ',killed'
as a pe.rsOn po$$C$$ing practical knowlcd~e cl a.rt, $eicnec or 10. Whfl11wr • Doctor wilh 1 ·M• stt-r'• deoree In &J,oe,y ~ u • ~ uor
u-1.dc ~ has the :i.bilil)• to '.lpply them in a pro~ and ~ppro\.'00 II\• ~1¢111 COl•;i• II• 'wotkman'? (C..LC,- ~
man.ner. ~d with dexterity. A teacher b~ ko.o;wledge and he is 1,. O\Jesticns eased en the a1rne flctt. (C.1..C...f~lit<Wff.81
skilled in communicating k nowledge. Thus.,~ teac.h cr can be 12., DI~ • wtteln., 1 Pilot of an AilU le ~ n)' «.wino .,...l>M Rt, 2 UoCI pw
e\\lled ~ •wo rkm.ln'. lit PmmtN!ini P41'hrY J,sifu,,, Cii11(u S«il{)· rn.ontti 5 a WOfklnln7 (O,V.-l010 ($q;)p.))
(1993) 1 LLJ 447, held th-at a teacher in ba.nd}c.:n{l'.$ in Indian (Hlht: Ho is • woit.man • ti• i. ~l1i:Mmln9 'opetWtion.al' woltt; th• amovnt er
sa'llry he k ~ i, imrn.i.1111, & woul<S ti..,.. ti.on mNriat only H he i. wolk"'O
Cancer'Society ii a wor-km-an, l in • supe,r,;sory ea;:>tcl!)',l •
'
 '".T'."I"'.,,.....,....,..~ • -~
9J
I' .. ' . d
1ft .L-' bou r La\\• • I r. I Defiui(~~J'I ._o~~- WOrkrna~~t · 1ss
(v:iii). A. dl$~se4/rctrcnched Q.;Or~an wli~ wi.s:he~ ~ ~i,e.
dispute with hi$ employer [<!uc to the'_lep.J fiction Cicafc\i by
ll ,,.NOf'IS Hetd Hot- to b.f! WPt'°!'et't , _1 1
, •. \ C>,.
nte fol.lowirt& pet:$0rt$ a.re beid tQ be ,.4workmcri!' undtr Sec. 'i(~~-
Sec. 2(s); c,,,,,.,, T=,,ry-µ,I. vs. ·c,&,·A1J!.:. 1967,SC t67]. • ✓• , ... •
G. '
:J"hus. an ex-employee is 2 workman (Bt.Klflll, CtKl'Jtlllf <z.Co, v
'© Cove.n2nted ·om~r l-of:~ COl'J\p:u,y di2.wlllg i:nore~th.1A
l~P. Dar G#p(• (1969) 2 sec I]. , I
R.s.10,000/- ·u s,lary"¼nd' ciitldcd to die privikgd'· -of
£&c H ~! . ,. 1t :t ~ •
~an
o e r• . t·i: ..
.rG:i) A do<=tor' employed by a charitable hospit:al (as he perfOtms
of
(i) Senior~ Editor a new,poper ( .. in ~ g the .-&torial
•
~ technical work). If.h e ~rfonm tcclmkal work, then it <foes-
not matter that his salary exceeds R$. 10,cioo. .
,';:,J1t) : ·.A' casual or temporary labourer ·is a •workman'.
r,t wocks he h-.is to ~Y ~ of initiacive'and ~~)
(V.N.N. Smb, v J;l/b,rj.;,i,/!,lJ_ ud. AIR ~.s,j Pat 1), '
1 i'" ,~ '
~ Welfare Officer of lndia0,Alumlnium. CO!tlJ>""-Y (a,CoVL of
• (~ .. A Chamist-in<h:l,fge disclia#ging die fu'n«i6n.s o{ C bkmistl I,,dja Uodctwcing), I•
·: ~--.-.~~didwgingsomesuJ>ff'lisoryfunccion~.oiatand (tv} A practising t,..~ r cn,gagcd by a companx on retainer balis:tO
anci.lluy to th:1.t work ($,r(ihif kiw,;,,.v M/rFt~,AlktJ:l'ftfAr-
look after i.be i.oteretl; of the o::>mpat1)' befote the :Labour.
' L.tJ. l UC 657 (llom)l , l Court (!",al'._. S•lp/>ad~ f"""1irlu /Jd. v I.it- ~ /l,,h/at
{xh) Internal auditor of a. company with duties rtt\Ully to rc.Pfn/ (1993} I l.l.J 496 (P ~ H}l-_.t ,
'check uP but without a.by auihoriry to take decision and ri.nd
the COn.tpuiy thereby ~ / Elf#, I,u/,/iirk,J v K/4,an B ~. (v) A Jw Superimcndcm1,& [Exccptio o (ii) to ~ 2(,)J.
1, • 198s sec (L&S) ◄2si ·· · , ·· ' f (\'i) A pilot with I.ndun Air f0n:-c1t1 l'£xceptioii (i) to S<c. i(s)],
· ~ Employees of municipality, [f.lo.111t1,b A111lltnjia/itJ• v M4.11t4i Da.r {vii) As·nsta.nr Manager io a privai~ firm (as b.it~---◊ds ii rilainlf ~? (·
,, v.. (1965) 2 LLJ 135]. . , c a manage•,.;,1 ' -'-"
.,.. Or a-,~~ore ' ~ o..tture
• ). < ·~ f

{xi~ In,p·ccton and SaJ~sm.an in the eruplo)'.ma;nt: of the co~Jf'any (viii) A "cnog:rapbcr att.ch.cd_w idi •Jud&< of ~•!(ii Higj, C.,Urt (••
. I,ul/a .Mllk.b Ctt. v w,~
• ~ti (~If""' ,... AIR. 1964 SC 472). !~ M i.t n0t employed in an 'industry', tht jucl,iquy bdong, t'tfuic
· (xv} M~::ager of a hotel who 1 h:1.d to write lc:dg~n. ff ilc. realm of sovcreig,, fi,ncti&), Simili>rty; ,i'~;n ffl>p)oycd : o
(/) cOrr~ond.ence, enter cam·t>Oo~ ~ c. (~1tt.ia11'lro,r & Sid/ rA work in the Oinr.iii C:>urt U ttJJf a workman.
0
Q)
Ud. v W,oo,,.
AIR 1~58 SC 130):
1
-· et ;..
(cc) Branch lv!anagcr of a C°'"9p,cr.1fri,·c BaA,k:; J •
:, Clerk of~ WlJ.,·er:sity [S,11mh~:/nJ M.atl:t v Jnwfi U,:ffi, Gi/ttlMr
:, (x) A person working pt1J!lYlo~r- honorary oE;graruitou:s reasons
(1) (199◄) 2 l.l.J 462 (OB)]. ( work mun be Ul co.iuideation of some f-cmu.ocratio-;,\, 1
C.
_o,,'' .tJ. .;:x
'Malis' employed by Mill for looking after gardens i2tt:1.hlted (xi) Hco\d Oerk lll the St:lte 'tru»f>Ott Auth~ ffo/ [lli~: Skz'C v
~ with officer'$ bungalow$ (J.K. COltf/6 S", & W£g, i\,fj/4 v 'iJaart· S1a1, of Bihu (I970) l SCO 490]. .
;:;:
:::,- M4P
. AIR 19~ SC 737). ~ . • ·! .•.
() In !1t'ir'all ]Ju~AJ1p,, V W'D!"M f'n of SJ'ndiiai, .&n); (Affi. 2001 SC 9'f6).
Q)
t!u,Col1lmis$ion ~nt.tDepocit CollectonofBulks, ahhoogli 't""'
3
(/)
nol~ ~yces. held to be "'workmeo," ~ ~ i onm:tf«i
0 ~y,ibmi wml,,ld «1be 'wagei aod the r,,,;ter and..;,,,.;,. rel.wooihio
Q) ~xisted ~ce'n them iod the ba.nk. ·F\iJ:thcr, the B.mk:iiig ~guf:a&i,
:,
:,
•· Act did J)(n b~ar em ployment of persons on oommifflon. z,·
(1)
~

.. I
I,, ...
 ',
~
(I)
C
De fi n itio n of Wo rkman 157 C
156 L~b (l ur L:iw - J
independence of such oootrol, the greater lhc probab:tit)' for "'
<)
(/)
~ Car driver e ngag~ by &.n.k M2nager, w ho gets car al.low;mcc tttatlng 11 to be a eon1net for employment... Comment.
fro m rhc bank [PJt*b Nn:. Ba11A; v Gl;Nlam DJJ1!~ir (1978) 2 {C.L.C.- 91/94/91196; L.Cl- 9#95)
E
sec ;ss1- "'
(.)
(xw) An ap}):entice gove rned by Apprenticc.s Act. 1961 (HAftN,,.,aN State the principJes laid d own by che Sup reme Coun for ~
Pnm1dv R.S.E. &ard(1986) 2 Ll.N976 (11,j.) J. S,etion 18 of determining J'c.a.tionsh!p ot 'Maste-r and Servant' in an industry. ,<::::
the Apprentioes Act, 1961 Cltq;orically provides that 11pprcmi.cn f l.C.IJ..9J/9$} ;::
a.re not workman -and p rovision o f b u• with ~pcet to b ~our 'O
(I)
Hia:;hUght the difference bc-'lwcm 'contract o f s ervice' snd C
sh:ill not apply to or in rehtion to :1.ppreGtices. Howe\•er, there
m-.ay be inquiry into w bet.her employee concern«! is a 'contnct for stf'\•icc.' [ D.U.•20/Q/2011/20/J) C
"'worlcin2.n" o r ..apprentice.• A penon nuy claim to be a ~
Oiscuss the. nat'Utt- or e xtent o f control ind "'pervlsion which (/)
.. ,vorkn.u n'" despite ln.ving bee.u appoinud -as. app rentice if Is requisite to e.stabUsh the rct1tionship of employer and
there is mau::rial to establish that [f\'3:ic»a! S11ta!I /.Ju/Mtrut Co,'J'I',
e:nployff undtt Sec. 2(s), I.D, A'1. Arc there some telU evolved
1.Jd. V ,V. LahJ.:mf11art!}~lttvll {2007) 1 sec 2 14), b)' tt.c j ud ic.i.ary o v~ the pcrkld o f time to deelde Mastei and
(xiv} A sho ~ ~ . :i.lthougb incidentally doing &OJ]l(l dcricil work Servan, ret.-tionsh,fp? (D. U,-20/JJ
(S.K Maini v Caron.a So0/1 CR (1994) 3 sec 570].
(xv) A n •Appr.ii$t:r' eng2&ed by ll hank purely on comm.i.<isi.on basis (b) The PQ & CO. cmpl~d seventy wOl'kcrs on the.tr ro Us. The
for weighing and testing gold or nament:s offered to be pledged W$U'IC$$ of the- con,.paey wu to supply tabouJ force to the
to the b;wk t <t secure lo::i.ns ls not w orkman as tbe-.te is no needy industries on a tcmporuy basis. PQ & Co. would get
llU$teM-erv~nt. •cb ,t-ion$hip alt hough be b:t.d uJldertaken to IO¾ of the wag.s paid es com.miiSSon from O.c concuned
jndemnify the bank fo r an y lo$:; [J>Mri U,t.,,,, U,,~pm,.ti~ &A.4 imployers and S% conunln lon f.rom the said worke,s u it5
v Madlµq11MH Sa};M AJR 1992 SC 1452]. service charges. Mis AB Oil Mill ~ an • ~le ,hor'lage of
111.bout force • nd so tl\irty woclce:rs ot the PQ &, Co, wue
Diffe rence .between Workman and kldependent Contract°' cmp7oyed by them on the above temu 11.nd conditions. After
S« under dtt Q uescions Sectjon.
cwo )'CaN, the said workers were asked by \he manllicmcnt or
AB OU Mills to repon- for d ut)' to PQ & Co. as t.hei.r ~rvkes
were no lo nger rcquhed. The said workers n i&cd a.n induslrlal
d ispute .wi1h AD O il M ill « p rding I.heh cont inuity of
FURTHER Q UESTIO N S
employment. 0$Cu.u whether these persons coold be regarded
as '""'Ortcmcn• ofAB Oil Mills for the purpcncs otth-e. 1.0. Act.
[C.l.C,- 9JJ
Q. l,(a) '"Jt .Is linpo,slbit; to Jay d o'-'n any rule of law dis1inguishit1g
b~~-eco oon,tract ofemp/O))mer11 and conl!'{ tfC>I' employnient, A.1.(a) Diffc-reo.cc ~ctwccn Workman and Ind ependent
It ~ a q ~11on or fttc-t 10 be dacid\?IJ by 1111. t:he ci,c-UJn$ta:ittes Coatnrt.or ,
of tht, ease.. The greater the amount of d ircq control exercised .'Wo,knun' is defu,,d i.a Sec. 2(,) ohhe lndumi.! D ~pute, Ac,., I947.
over lht. pen<>n rendertne lhe services by tbe~rsoo conrrat;Cing The relev:a.nt portion of the def.ni?ion reads: "'Workman* me-ans any
for thc:m, tho '1rooger thit: ground for holdinf it 10 be ii wnlr.let pcnon (u,duding an ,pp....,ti,;e) employed in any iodwuy to do ,ny ...•..
of' employment and 1imib rly the gre.:st~_, the dc.grt-e of

I
 LES4j :•,:.:-.,-"•

•"
f. i '
ij J.58 Labo u r Law ·-. I
i! Oefinltloo
.
159
1,1 _. • • • .,, I •- •

, I t-is an· csse.ntW element of the above definition thit the person
to b.s-a 'wo~¥run• mw.t bt 'employed' in any i_llW$try. There musf ht
:rn Hditbm;,•) Uil1$'ef Enjli_;,5 ia ~hoo.. V?l· i; '

p. 1 12, ,,Pf$~..
19 1, 1t ha$ been nated w hether Or nO'tj-m any given case, the tebtio:li
his_m iplo~nt by an tmployer ~ thm::.must ~ anploycr-cmpto>4,e of m:aster ~nd semnr ex.istS is <:t <1.1.ldtiop of fact~ buij in all ca.~ the
rclatl~~·~ r ~OfOS fof employcr~loyee relation an? llU$leM,Ctvabt
a
r.tlatioruh.ip. Th\lS 'it is 'necessazy that p'ers04 tQ bci a worknu.n,niJit
relation' imports the etlitencc of pd~i,t-Jn. the einptoy-h not onfyj to
~ t Wh.it Work the $Crvant i.s to ~~t:slso the ~liter- in wbicli ~ ·
q
be llla •COnttacl ·o f tet\>:ice•, lf()J 'contnc:t for 5ervioe'. ln t'bc latt~ c:ak
r. he "'~_ Ut~ ~e:an,independen.t contractor.~d J2~t a wOrknla.n.,¥crJr
worlt iS to be done. .,.,..
T h'e principle which cmcrj l i°a1h~c the p,{~4/a_t'.fr ren for ~he
'
0'
~ corunct~ . d<:t s,o mc work is not enough. , ,. ,C ' o fthe .. ,. ' ... .Ot"• • .uw.
.. , scrv-ant'(" '~u.ac:
~ hu's, 'a n_io.depC'ndet>.t cootractor is _a cluckd _£iom the deGAitioP.
j: · ur:terrrunano.n R.Loi~Omip master
oi ~~,right~ the ~er to s.';l~lk~~ ~ntrol ~ ~wprk done by!}
.L. ' ,
existence
·d
of workman as•therCdoes not exist the" ttlariohsHip of master and L),,e serw.nt, not o.a1y JJ1 the inattcr o l ~ what:work the $C.l"Yll.ru:
.scrvarti. ih_ S-Jch,a case. Such person i, not Un dcr'the control o!'t~e CS to do bUt also the manner U1 ~"fil&~iliall do his work. The m rufe QI
a,iister!ilt it t-ht ~lcinent.of control of 'woJ"k that distingui$hei i~ • · .,of oontroI wwca
or extent C• .c u
' ~uw.te: tO estobJ'·L
o ·, ~ ,,,,_. " ' l ' _,., 'f
J.J,1,1 we re atlou.NUp o I::
~

rt.lado~iup;of ~ ·er and servaot.from ,t h~ .incL!.pendent conr.r.act~i emptoyet and employee inust ~s~Y-Y21Y from bl.1$WS$ to tiwin~~
C5
~t~owhi~. An ..i.ndepeud~t concr:i.clor,. is o oe who unc:fer;,-a.kcs tP. and ~ ~j, iu very n ~ in( al)al>l1e q:I .\'.tccise definido':. ,
p~d!J$C;.a ~ven:ftt\llt but so th:tt in th~ actl,W .~cv,ion oJ tb_e woi:t Thus, the Supretne Court i'if D!Jrt~ro Chr111kr:I ~ .rh L•?v @
lie it noc. wtder the control or order o fthc ~ rson for "'' h6m he does, S111ti •.lSINmt!h:nJ, said: "'The co rttet1itttthod of•ap~~. tb:ld'orc '
it, an'd l'nij'~ lfu <Swn d1$cretion in tbi,ks J:lot sp~ed b.eforeh aild: 1
would be to consider whether having,regard to clte nawre of c.h~~ ·Qr~ ~
• h • ~rk~ "' ~ V,..iJ':.r the c.v.mmand of hl$ maiter a., tO the JNrul/i thett Was due conttol ~nd S\lpiryi.$i9,n.by'tbc cmplo)'c r."' tt
, , in whiai ~ sh2ll do his "'-'Ork.. ' l
It ho be aid 'th:u •wC -~ er .th,c .amouru''ot d.irtcr C.o~ rdl-
1f N.~ ~~h,niract to provide ten-ice ~ ·the relationship ~ =icisod=w persoas rcnderirigrh< ~ by<hep<-.ron<n<tio~ '
· e mpJoj•er:II.Ii~. cfnplOyce. The discinciion l$: if !inc one' iand Dl1ly 6~ for them, the strongc:i the 'grOUJlcli for holding it co ~ a contraa: of
• difftrul! to':'-af,plY i.o borckrline ~ S.Mrr ~ J.W. Hrllfkrso,r ut.
<:2$CS, service; aDd similarly the ~reh cht defv,« of inckp{ndcnce of such ·
(1946).,j}C 2( 1 Q-ll.), the House of Lords c~nsJd.ered the. r ight of (O.Qtro} dic greater the pf'Ob:a6ili?' ~:it lhe $C.r'Vicc.J ttiJ:lercd are of tp.C
1 ~ isio~ 'AhdConuOl t'(tai.oed by the emplOyer as th e ooly method nan.ire of professional scrriccs and tliif the contn.S: i., nOt <>oe,.of1
(/) ~ ~deurminatj.ve~of the relationship betW«n the.p2.rciei and affirmecl tbal service" (Fletclter Moulton, L.J.f½1 f fm'"':111 v Healtll Uilflld,y C-omfii9 J:,
~ •the f..rin~,1equircmcnt of a contract of $ervJce U the right Of , t
:, , tmJtt( in iq.me tt.asonable &tnse to <:ontrol the method o! doiJJg dtJ ~ Control ond Su~rvition Test· i ~. • 1 Q1
:,
(1) ~•6rk.'mdi hii &cto'r of $Upe.ri.nu.ndence ant! control ha:s. frcquerit.'Jf ·l · -r~
UAO,tio use: DffAI\AHGOtiftA"'CH!MICAL WORKS LTO. V
C. as
;, bttn ~e!ted criri~l and ~ive of the kgaJ quality of rdatiom.hi£).1 STATE c}r:( :fJ.~RASHTRA ..
i':
.
~
;:;: .1\-fodcm Industrial conditions Juve,. however, gre:ttly :lffecwd ~J {AJR 1956 SC 'J6'4►
~. - -·~ ....J
,
,.
"t
:::,- ueooom. of tbe m.:..ster in the rrumer of $eJCction of fus /Servant ~hd [A pq.son who .1g:rea t(? wptk.!•ifd,does &0 wor]('d~-nOt t."
() h1s r:ijht: to f\J$J)Cfld or durnis,s him. These ma"cn are also affected tfY! Ceisc to tic a workinao bv rC:uOn .onJy of the, fact thllt -
Q)
~ rrad~ uniOn'.rulff which are i ,t 1~1' primarily ma ,or

l
tbe-p:-Ot~io~l · he ·gctt'othcr i>ersoit•s to j ofkual'ong with him and th.at
3
(/)
9fw~e ~ en. The i.adicia indicat~ by t:orifTha.nken o n ~ th~ , o}lifi! · persons ~ c~ntfoµtd ;~d ~aid by Ju~. The
(") hfOrcSai~ c2.sc, has, tbettfore, to·be applied su.bj~ to:suc-b ttaNt'~ry Y(OT~an m u.st ~vc: ?greed tQ. St.Yi~ bu pcr~n.al. ~ rvicn:.j ~ ~
~ n ot 1"ercly tO •··
Q)
• p>'<>v;.!6nsas may apply in• given we. · - t.b:1 1'."l;'Ot°.k done ~o.d 1;,ut- if.Jic is ,
:,
:, I" .
(1) I
:
~

I i.
 ~
~
(I)
160 Labour Law - I C
Defi n ition. of Wo rkman 16 1 C
bound under his COrtlract co work p-erson.:i.lly) he is not
excluded from the definition, rimply because he bas Tbe Supreme Court observe&
"'
<)
(/)

assistauce (rom Olhers, who work under him .
Tite Supreme Cour t htld that. the aghiaraJ engaged iu
salt wor ks (su sonM ;11:tivity) who h.,_d :.greed to wor k
personally and on whom there was due ~ntrol and
.supct"Visioo havi.og rcgud to tl)c nature of wo_rk. arc
'\'Ork.min_(and not independent contr3ctOr$) even tho ugh
they employ o Lher persons to assist them.]
In this c.u.e the a p~llam corup:1.ny took from the State
Government on lease ccnain salt works located in the St:irc of
$ilur.2,5htr-L S:a.lt W'a$ ltl,U)uf:aet.wed from r.ain water which $Oak$
dowo d,e $utfa,c:e :md impregnat-es- with ~i.ne water. 'fhe entire
-at'ca was divkkd into small plou called "p:ml'.IS'. n1e <l<p::i.ttav"
were ler o ut to ~a1f:l:.tml' at Rs. 400/- a year. lhc point for
dctcr min.ation was '\\•hcther these tJgbilmu were <;1.•orkmen or
independent cootr.aor.
It W'3.S proved th3 t '«hi:vru were free tO e ngage extra
1.ibour ;1-1: tbeU- own COK and were pa.id at. piece n.te wages. They
were £rec to work when they Jilted (provided they made
:satisf;u;toty arr.ingcment$ for rhc manu!.lcturc ol .QJt), u no
hours of work~ prescribed :uui no muster roll W:lS m.unt:iined.
ln nioysca$0n when they were free lromtheirwork (the wc,rk
Leu,g ....ooal) they re<urned"' th.,i, ~ .,,d lx=nc ~
in their agricultural work. The man'lgcment of the compmy
acrcised supervisio n and comro! ~t ,all sugcs of manufact.ure.
Thus, it U <>nly w hei, t be $alt w iu found to be of right qva.lity,
the ~r.u were paid per mound. Salt which wu rej.ected
belonged lo the appdb.ot comp.any and the "WJitP".:U could not
either remove the $:1.ll manufaC'lurcd by t.hc.-n. or sell it.
Disput d Mose ~tween qgManu a.nd the appcll.u1t.s .:r,3 to
the condition under which the t:t,ghiaro.J should be- cng3gcd Dy
the appellants in t ~ manu.facrure of salt. Tite G o'-'Ctnruent of
Savr.i.d:ifr.i rc(erred tbc dispute £or adjudication..The appdb.nts
contested th.e proceeding,-; o n che grO\lnd tb2;t the $.11tU$ of the
"'.t~ was that of independent contnctor and .\'iWol workmen.
l
(i) The euc-ociill dininafon between a 'comr.aa of E
.service' and 'contntt for $Ctvice' is ch:al while in "'
(.)
forn~r the employer can decide noc only w hat ~
work U to be done -b ut how it U to be done in .<::::
the bttu the cmploytt can only decide what w~k ;::
is to be done md be bu no con.trOI or $Upervki0l'I 'O
(I)
o~ h ow it is t0 be done l.e~ method of cxewtion C
of the work (C#lli,u v H,rtjordJbm C.Oxn!J C@ll11ril C
(1947) l All ER 6)>]. "'
<)
(/)
(t;I In e.;1(:h case, it is a question of fa.cc whether or
not there is a conu-aci of .service. In SDIJ,t.., J. W.
Hmfm,-JJJ. (1946) AC 24 (HL), the Ho.,.e 0 £
l.Qrd$ have stated four indieia of a contract of
service.: (a) master'$ power of $Cle-ction of hls
servant (b) the payment of wage1 or other
retnt.meration (c)•the IWJtt.r's ri;ht to ·control the
°:'"ethod o f dol.Qg{be wor k, and {d) the master•s
right.of $U$pen.rion and dismi,.s~. ·
~ E ven though it is impossib!e. to give a precise
definition. the ou fe:atu.re that runs through aU ,
'contract o f servj"' is that the nu.n ii employed
-as a put of the business acd hls work is done as
au integnl pa.rt o! the bUii.oe"; w hereas wider a
'contrllCt for $Crvice\ his work, ahboug.b done for
the busin ess, ~ not in.tcgrat.ed intO jt, but is only
aC(C.$$0ry to tt Uon:/,iµ, O' fLm.iM111 Lid. v M,Jo,,..,/d
& EN., (!9S2) I TLR ! Olj.11

I
 ,
. I'I
"' , ~abour Law_-· I ~ .· , t o~fihltiori~ o .Vi'orikman
•-.Ji1t!f
,. . .
,:n·_,--·
•
\:
163}..
'J)i• Supreme Court Wd down the foJJo,.ingp,,;,~ ' ap-ccd to give his person:tl $e.l"Vices'llnd·not mere.litt0 gee the J!, ,!
@ The rutute ·o r exxent of (X)1ur.ol.wbich if r.cqu~ w~k. don.e :a.nd but if he ii b~nd ukder.lii.s contl'.act t0 work Z>f
tO establish the reliuioitsbip: of ffl1plo~ r; Ula ~~}', he•is 40t excluded~~·definition. $imply because
.ffltp)o}'ee mutt ~ ly y~rf from busincu t~ } : h~ ~~. $1.t:sist?,nc;c: fro°:1 othe"i-~}~~ ork under, b;~ ";J,·.,~':c-'
- business and is by iu very n:tiu!'t io~pii;l~t ot
prcci:sc dctmicion. ,,. . ' r-. . On these principles, the Sup~me Court decided thar the
agi!iam,~ in Sift worla (""son.u arti-.,ty) wlio had ..,...i
.~ ~ ~t'is ~ ~~ for.hoW,-~ c; pe~Q~ ·is :lp• to work ~nomlly, and op~\i,'Jfon:t,{chcre WM due t0nuol and
·•.. enip14yee. Ul111t tbe ,eglployct should be pro'-'Cd..io' wpyvUion
tr. ..t.l •.
haViOg regard to"'n~ruce
... • , ~ i
of~worlc~ :lte •workmen~
• 1:
", h"'ave exucue
• d ecnu·o ~ , ~, .. t Ln.1~·•l,(1,
over 1$ wor...,:· t·
There -a re , even wough they emp;oy other pcqons to auii\ fhiem.]
,,~ l c~~ ia f"'hqthc~Mnff«cb~ l t-,~ s-'""'f• 11;, u,,p/,,J,, ;, .,.,,. ,. .,ra;,,
"'"ft,,A",;,;,., of,;; I ~ D/,putu
.-"?·~:,nan~.er in.Wh~ WOrk:~ to .be ~~c a:t}n ~ --: A.et, 1~7,' rmJ>l!p ,-r/un thro'<!,6.ih/(11!1;'~ #1' rq11fmrn_,[; Whether,auch
:' ~;•'. ~ o( i;a~ of :l ~ ip O; ~ atiffeur or repone'r wor:keri ~re "worlr.men• or n~~ ~e·~nds upon t ~ ( ~ 1£e-uli ca,e. ,I '
on ~ ,ta!f. of a riewsl:'a.pe-rf , . • ., · l
.,i:c •i • ..
(w) .Tue corrccr·approaclt·u ·whttbcr baviJ?g re&ardi
· the' Mtur&. of wor~,' dlere. 'is' d~,control a?? -
SUJ)Civjsion by the employer. ,._ • _-.l
In Cbi,it,,,,,,,• .&,, V Skil, ef.·M.P. (AI!l i958 SC-} 88), • fa«orx
.IJ!anul'.•c:wring '!,Ji/ eog,gcd iomc , ~who=denook to !Ul?Pll'
1· 1,.;,dittalyor uuli=tly.r.htOugj, coolies bym w ~ ~ cldl"
in thcir_~n ~ot')'. Ot by enrnutinrd1e work to t..hk}parties. The
\

l
.. fav) A, r ~ me f ~ th.t ~ ~ di.d _p;o¢-<>T~
it 'Na$ obser-rcd th-at a pe.c::;c,n d.h B,ra V.•orkmln ·
~ ~~ t<> b♦ ~d for t.M ~rk~by, (bf, mo.n.ogcnitnt, UW' ~JJ~-7
and approval. The 1atk:hrY U;d-'"ihejr C<>Olic, did note ;work in. the ,
.. q
~en tho1,Jgh he i, e:ud1n0t pddo.Ybµt per jo.~; ~ ·sp~2~t•., f-actory and were ol!So n?(;rul;,jeci to the ;t'1pei::vj$i(,n 9r ~ • 0
It makes A O d.iffettncC· whether the man
wfi c6ntl'Q! of the i1;ppellan.t. On the abOvc f#et~,Jt was hijd that d.1tZi,;t . "
·crnJ>t.oycd on.t,ime bll!is.or.pieoe Or jqb bui.s. Th~ w'm ii'ot woi:kmea · · f: · -~ •

(/)
,.., is, whetherthe.e!"t'Ployd retained the right dr·
com:rOUing the Work:: .'
(v) "The fact ,·hat the cu.ik,,,,, ;;e,re eiuitlcd t.0 engag~
l ; ltt f)m/M,.ndv FintCMIJ•d.i,' (ATR 1%1 SC 6<4~),,the workers.,_,
w__ue !4j~~.t ~ '1/!)r.k. 6~!
~n t~~f ii~ey pee.mis; ,,, ~d could Ee ' ;
removed if they were ~b$eot for more Wan 8 days..fu.Ymg ~ d to-·
-,~j..
~
:,
other pctSom to do die \\'O rJt '\Vil$ 001 condum·j
pr,;.,£ of the fact di~r:tbe}7"'w..&i indcpcn&:iat
the hlet that the wor~ers- coulp itot _gitrthe :wo,rk do,o~ by Otben:b~,
wm tnjoi.bed,to do ii themselves ·anctother' lieu :1Addrc~n«$ ~ 0 -
:, contractors. The broad distiiicrion betwee.n•·j · (e.g."rejeaing·w,;; ofunproper swidud), theSupicniic:ol,n hekhJ,.~
(1)
C.
~
work.man and an ind~ndcnt contractor1~1A
th'll.l while the former a ~· to work pcrso~~
~ was a 'coruraei of krvioe' r.c. c.h~'iworkel'$ are 'wo'.,Irkmcn." lt C:1.0
J • • • ' • •

hudly be said th:1t th~ mwt be ~ t i o n -ill die tU::t~\ "'hcn bidiJ arc·JJ
e
;:;: t.bc l:ttte.r agrees to get other P,enoos to d.o .. tht being ,p repared and w:i]cn there u·~udLsupuvis.ion tli~ can be no
.e
:::,-
()
Q)
.. . ·
,..,; . work.
A .p~.s o~ '.\\'~o.~gr~ to work and d~ so work doe$·u.O .
,
.
. . i direction as to the nurint.r ofw<.i.r-k. T he control 0£ 1the manner iii:
· whith the work is don~ i.t exe·rdf¢d.d:t the end of the ~ay, when•'IJidi, i
att ~cady.,fu rucb a case,·it ls (qc rigbrio si1pen-Ue arid nCM so ,muCktt ,- 0
3
(/)
(")
a:ue to be 11. workman by reaion onl;,;- 0£ the &.er thar he gl!~
otb~r])enons to '!i'Ofk aloag wuJtbiiq~~d t-ha1 ~ r• P:.rsirif _ the fu.ock i.n which it.is exercised 'Nhicb j s impona.nt.• j 'd '•
§!;I
Q)
:,
uc·contt<>Ued and pa.id by.him. 'rhe 1VOrkn:i...uJ must h a.Ye "'•
,t , .'
:,
(1)
~
p'
•

16'! Labou r Law • l
Lt..01MO (As:r. MAHGALOR£ ·GANESH BEW WORK.US v
UH.IOH OF IHOIA
{(197'-) 4 5CC 4))
Ju this C;aSe, du: provi$-ions of the Becdi and Cjgar Worken
(Conditions o f Employment) Ace, 1966 were chaUcnge<l ;1s
unconu itucional, being ~·iol:nive o f ,he frtedom of m de and
bus.u:tC$$ gua.rantced under An, 19(1)(g). It w2s contended du.L
th..- Act i.mposes un:r~ n.ible b~1rdcm in CUC$ where a.
manufacturer or trade nu.rk holder o( btedi ~ no master
iUld Kiv.uit rcb.rionslup and no effea:.ivc conttOl on inde~t
tontr:ictor'$ or home workers. The manufu.cturtr or tnde ni:a:-k
holder is rendered liable -a$ the principal employer of contract
labour.
T he Act w2s held V2.l.id. It was hdd that where the
manu(actorcr or tnde muk holder him$e1f emplo}'$ lttbou.t
is
there direct relationship of master and servant :i.nd ~fore
Jfability C$ .attr.i¢led by n:zon of that relationship. There cw.nor
be any qucst:ioa of unre3.S()n~ei:'1$ in iuc:h ;i cMe, Wbc-rc the
manufacturer or trade m-ark h older eng:tges oontnet. labour
thro ugh a con1.r.1ctor he bewmes t-he priocipal employer.
Th ough such labour may~ en~ged. by ;, contractor wit.h or
without the knowledge ot 1be ma.n\lhctu.rer or trade mark
hold.er, this: (;Qrllr.act~bour is enpgcd for the princip:il. employer
who happens- t0 be the t.r.tde nU\Tk holder o r the manufaauref".
TI1e li;ability arisi:s by reason of con~t labour eJ)~ for or
on be.h:ilf of t he prlflcip.al wip1oyer. T he contnetor being :m
agc.nt 0£ the pr incipal emp]oyer for nu.nufac,turing becdis is
:unen.:ible to the control of principal employer. The p rir1cip:a.l
emplo)ler L$ the re2,l l)).1$te, of the business, He.ha.s re:iJ oomrol
of thC' business. He is held liable bec:i.~ be exercises super;,-i.sion
.and eon,trol o"·er the h.bour cruployOO for and on h is beh.ilf
by oon~r.
lt,is·only wbco the coot.ntctor cng~cs labour for or on
h" o wn behalf and supplies- the fin id1ed products to the
nu.nu!~ tlut he will be Ule prir.cipilcruployer fuidepcodeni.
contnletor) in rcbtion to such l.lbour :lnd the rmnufliGtt.ll't'r will
i
~
(I)
C
C
D~tinitlo n of Workman
165
"'
<)
(/)
not be re:sponsibk for in,pk:(nc.nting the provisiozu of the Act
with regard to suc.b labour employed by the (;()ntractof'. Tl-;e E
court clarified th11.t if t-he r ight. of rejec.t ion reru 'Nith Cih e "'
(.)
m.:tnufucturtr or tra~ mark bolder, tben in such a. Ca.;e the
oontractOf' who will prepare bccclis through th~con tract labour
will find it" difficult t0 enabJis.h tbilt he is the 'independent
coninaor•. If it is a genuice sale truu2ction by the- contractor
-
~
·3:
,::,
(I)
to the ma.ou&<:twcr or trade mark holder it will point in the C
direction of a.n indepcn<k-.ot conl':nctor. C
LEADINO C.Ut: HUSSAJNBHAI v AU.TH FACTORY THOZHIUAU UNION
~
(/)
(AIR \978 SC 1410)
· [The presence of intermediate contractor with whom
alone the workers have im.mcdfatc or direct relationship
ex cont.ractu is of no cor»equc.nee, when, on lifting the
veil the n:aked truth is dl$CCrncd.J
In this case. a number of workmen 11-'ere engaged to make
ropes but they were hired by contraccon who had executed
;agreement with the hd:o.ry- to.~ $UCh work doAC. Cooscqucru.
10 non~mplOymA!!nt of a fe,w workers ahe indwtrial dupute
arqse. On rcfe rea" an ~W'U<:l was given. Management
challenged it in t.hc KcN.la High Coun on dt.e ground that
workers in q\leruOn were noc: the wotk.men ol the &et0ry but
of the contnctQr. The High Coun rejected th~ wmcntion.
T he Suprc-mc Court affirmed the Hq;h Cou.n's ckcision..
The. Sui:>rCJ.l'".e Court obserYed: The factory e:xer<ued due
contr0l and supervision over these workers and the work
done by th,e ~or kmen wa.-s an i.ntcgra} p~rt o f the indwuy
COO(trnod. 'Ibe &cu found are that r.all:' marttWt were wpptied
by the management, the factory premises belong ~o tbe
management., and the products were uke.n by the marugcment
for •its own tt.1de. The workmen wen br<>ad.ly under the
control of the management and rtjectcd anicles were dittaed
to be f'Cctif.t.e d by th~ man2gemcnt. These cire1,unstances are
concfush·e that the workmen were the workmen of the
petitioner.
 166 Labour Law - I -

. Tfic. sup~mc CoUn while li6Id.itig that'· they

~We'l
-

•w-c>rkmen• of the f.actory, la.id down' the following tC$1: "'Th_~.

true tesi is wheA a worker or gtQup 'o f1workel'S'h.boUr~ih
prOduc:6 goods OT services and the$C goods oi .krviccs il Cot
0
1
the busint:t1s of ~other cli.:n Othel ~ in fart, the ~p1oytr. 'He '
bu cOOnomic control over the •;vorker's subsjstencc, skill sn.8 0
cootinta.ed employm!=n,.... The· pre'Sence of in~media\f,;
contractor with whom 3.lone the w-Orken hiaVe .i.mmcdut:e w 1 '
dire~ relationship tx ttmtmf/JI ~·of no coriiS;l?<jutnce, when..,~b
b
llfiil:tg u,e veil the n.ik«I truth: i>"diseemed.•• If the livclihooli
ofthe worken $ubtc:antially ~Pends"'upon b.bo\11' rendered tb·
Produce goods and services for the berlefit of enterprise.-t]j~
-absence 0£ dir~.t relation.shlp or the prcsenc~ of ~tii&us ·
lnte~cs cannot snap the real ll!e bohd/' ' f
"Mynad devi~-. half-hidden in !bid aftet' fold ·of I~~
for~ ~ding on the degree of con~eo1 ntedeJ.,., iii&•
1>'P':' °hf iiirl,., ,r,y,.the J,ix,:aJ co.l'!rfiriom. :1(1d fh e lik~ n,.iy ~ - ,Gj
~rted. j'o when hbou;r l.cgisl:.iti.oi,. ~tS welf.at-e oblipitiO.ds F
1 tliii real employer based on Articl« J8,39,42,4), aad, 43-A of
· the Comdnrtion, The- ooun muse- be a.sruu: to avoid cbe mischief
d
., ~2nd achif VC.the puq,o,e of the Jaw·a..od not Jo be mided bt J
i th e m'!}rl of lt,gd •ppearan ces. '1 · •'J
In J,...i,i;,IJ'Jilv S"'1, efM,w,,,,,1,m (AIR 1962 SC 517), th'c.wo1hrs
(/) could ·uk~ tObacco wd l~ves hofue/ llnd get tht bidis in th~~~. 0
0 He could be-absent on ~y <Uy without iofotr:riingthc man~ l:iut .·t~
Q)
:, i(he~;_,,;;'3bse-nt for more th1n 10 di)'s. he bad'avdui-y to infon#,·!~e q
:,
(1)
m-anagcmc:nt Whether he intended co give up tbr joli. T he'.~ul;:f;!~ ,,
Cou&Kcld chat there was no control or wpervisio n over the ~ o f t
C.
,qf ~~· henoe it wu ~ •contract for secvict• i.e. woriers.are ic.depc:-~Cllt
~
~
;:;: F
:::,-
()
concraaors.
~. T~
,
j\pex ~oun ob$erved that ~e me~ fuet that rh~ p},6o.q
d ~
r0Uiag°~ 4t lia.s tO ~ll them in a puticula.r pianner.. _c an b.trdl)" bo ~a
1
Q)
a
to tti:,-c !'iii t~ such ri.~t in t b~ nup.~gemen..t ts ca~ be $;1~4 Q1
3 •
t~lbe 1.
.·ti
(/) rigbtt6c:oiitrot chr,manoer of work. In 'thcpr:cscnt case, µle Jn.1o:agcmcru
0
Q)
, simply ~)'!I ~ t . the hbou.re, i, ro producie.b/Et roUed in.a «min J&qn. 0
:, How ~h~ labourer CUTiet out the work is-his o~•o concern and ~ not
:,
(1) r
~

·. t

168 Labo u r L:iw • •l
1n this'case, the eafeteria in quest}On ·.,:a, required by regu.6.ciol:1$
to be n'Wllt~ in :i residential wti\'CIU}•aod to be oompulsor]y
used by the rcside.nt-studenu. T he w'o rken of such cafeteria
l\'crc held to be "cmplo}•tt$1' of the univeq.j1y. T he twin
convemio1uJ l($t$ of implicit oblig.1tion and ovenll concrol
-:1.nd $upervision were :applied by the court to dctcrm.1:te the
"""'· The COW't found th:it the U1t1'vmi{y Rt,gu~ unmisuhbly
depicr total oontrol of the University in the mane:r of running
a.nd ma.inten;tJ)CC of the a.fetc:ria. A residential univenity having
a .canteen facility and the Ulmates of the h0$td not being
permimxi co ha,·e food from otmide cannot po:$$ibly be said
to be a.~re welf:are $ervioe to the stuc:knu. The ~titt c:tfcteria
staff sh:aiJ work in accord.tncc with t1,e instructions of the
Hostel Ma.iugcr/Wudcn. 'fhe :aocount-s of the W:ardcn•s Office
sh:aU be taken by the Hotel }vbn~tr ,o the Office of the
Comptf"Qller of t1niversity for scrutiny :md checking. The
Coi:nptroller of Univenity hast() maintain account$ of the
a fete.ri:i like other :i.ccount.$ of th<- Univeniity.
AU the appointtne.oi:s of cafcteri:i $1af! would be nude
by the Food Committee of the hostel ,:eith the approv2.I of
the Chief Warden, The- W-arden $h:all have full financial and
:idministr.ttivc control of thci.r hostel cafcteri'l funds a.nd be
respon:1ible for up-to-date maintenance.
Th.e Apex Court Obkrved: "Econ<iinic justice is not
mere le~ j.u-gon bui Ul the new millennium, it is t.be oblig.a:cion
fOr al.I io confer this economic: ju.sti<:e on o. $eek«. Society is to
remain, socUI just.ice is the order tnd economic justice is the
rule of 1be day. ·rhe princi.ple of corporate jurisprudence is
now beins: imbibed on To industrial jurtSprude-ncc uid th.Ctt i,
.t Ion,, e,uena of Cllllt$ in regard thereto. M regar,d s
interprecation, widest possible amplitude 6b:JJ h,we to be offertd
in the matter of interpretation of statutory documents under
in.d.U$trn.l _ju.risprudtnoe."
~
(I)
C
O.efinition of Workman 169
C
luotNG CAst: IHDlAH BANKS ASSCH. v WORKMEN
"'
<)
(/)
OF SVHOtcA~E BANK 11 E
(AIR. 200t SC 946)
"'
(.)
-
[n this case, the qutscion W2$ whether the Comtnti:$ion Age-nW ~
Deposit CoOeaors of Banh, although not rtgwu employees, '§:
could be held to l:,e ..workmen"' unde.r S«:. 2(,). I.D . Acc.
On behalf of the App,c,llan.n it has beea $Ub.mitted th-at
'O
(I)
C
the Depo$it CoUectors couid nM be tr~tttl ll$ workm«!:n sir:ic.:c! C
their engagement were purely a ma.tter of contract between
che panics; tb~ o1greement$ were, in all cases, for a spe,ci.Ci(; ~
(/)
period.. T he Deposit CoU«-ton did their work without any
control o r supervision of the Ba.nks; they could also do other
works 2nd take o n other employment. It wa.s submitted that
the Deposit Coll«i:on had no fixed tU'ne Or period to devo te
to their worit as Oepoijt Collecton or for their ane.ndante in
the BL,k. They ,could come to the Bank at wy time and mako
the deposits. The.re w-.s no qualif'ication or age limit for a
persoc· to be eng:a.gcd as a Deposit Collector; no disciplinary
ace.ion co,uld be -:.aken '11gainst chem. It was ~mitt<:d Ulat all
the above m,ncion,d !,cu ,bowed that tb.re wu no r,l,.tionwp
of ma.s.ter and .servant and tl».t.,. therefore, the$e O epo$it
Collect0ri were n ot Wor~e.n.
On the other band, o,, beh.lf of ii,, R,,poaoco.., ,ubmatcd
thai µte Deposit Collectors had to regularly visit the small
dep<mtors i.e. small traders. bou.se wives, srudeau. etc. They
would have to go to these ckp0$iton at ti.mes wb..ich -..•c~
wavcniem to th0$1C peno,u or at times when they would~ m
a p0$ltion 'to-give the dtposit. The Deposit Collectors would
have to eollect deposic.s from all these persons a.ad chen taken
the collectio"' to the bub aod make the deposits wr
making
the relevMt eo.uies and filing up the: rdev-.uit forms. The work
111. OltaJN ~ • Dep)11l Colle,cto,~d fn • B•nk 1, 1 Worl:ffl111?
. ro.u..20uJ
Ale the fDllowlng 'Workmln·: •~•I'll•ec,919.a by • ban); ~ !TfObllltie deposits
on commiulon t>e'M ufld.,- IN I\Oll'YIIIOn of the &nk?' • (O.U,•2013)
 I' ~
• 17Q Labo u r L.~'"' .., 1

ofD~it. Coll~J;S wai Mi?l.t#a/ ~udl .u they hAd to ~

cl~ ~-oll~~ b.y go~ from p~' !6 ~l-~ :atjd from de?9SitOt
0
l
~

!' ,
Definition:~o'f· Wo r kman
- ·
.. In tb~ afores.ud·c:ase.
• .,;
..
•7
,~.
tt •f"f-: •
tailonng ho~ hai ~ngag<'~
certain pc.rsoils wliO :coue-c'tJailored clod1es dtity fro'm1\he
' ,..,
, 111
.• .
E').1

©
to qcp,0Suor and thu At, w.,,s also~ uusrnuch. a.s they·had to I ' t!lliorLllg·ho\1$e in. order to ttitcb.'bOOom 11n d ~orm o ther t.
0
fill Up various. forms, acCounu, registets ~d pass boo~s evd:y ~ , finis hing Worlt o n the ~tn)ehlt'cti'I t.hett horn.ls~ "-Che Court
. . "The. right, of the .cmplo~r
a' to reject ··"
0"
~y. Re.sub::rutted tlu.t over and abo,;,e dUS- work+ mmy of cbe . observed: ~~ end pibc:fua
J?~?O.s it Golltotors w~~ \Wo mlde·,io do other s1.111dry.worb " si~ifyin.g ,d,@ c»n-qol a pd .$\l~Ob ~ i~.p<{l'.taot in case
o!.a d~kal u.ati.irc in the ~ks.,:J'h~~t rccci".~b.y,t~c.r of tailoring. The fl'PUO>tioo ofhii!oring e,oiblii!,mi,n, <ltpe,,ds- •
t! -h - ~ , th _-,,, -t:. \
9:
' -1 • ._L _ I
D.~ n Collector$ by .way of COmnlJ$SJOQ """ w-1gc linbd co k oot oiuy on wi::. cutter g,.ut ~ u99n c tauor•.&ll many~'•
prodllctivii-y. It W'li irtcOrrei.t to scat"c dut the "2n.k.s bad o:o l
l""!f9)~ the O.posit ¢<,Ilea"'!;·th• banks exercised conu-ol (
-0~:cr th~m 'U1d. Jaid down var~•stir~~ ~hich.wcre t<;i b;t; f_
f'/ll'?)l';<i ~~Jhem. l.1etely ~we.ti>;,!"'Utt.~f t_qe <onuo( ,..., _j .
sti~ ~.a.'clcl.icAte ~p~t&on,hCC the cl~ ~ up,On wluch it
~~ t1o be:·car~ied On ~ .~.Pef.,S~~ -'11'~ .¢ tet io. $titcliing ~ t 1 .
mar the. app,c~ not oalt.Of tbt: garrneut l;utilso of1tf·1:
wean/r. So w~c.n the iai)Qr'tt'Writ:s the gann.ctit µiepropr~tor
a '
diH~~' ai~ n~~ mean th.i i there_~ no ~~- -~ -, has got co inspect it to Jec.'a1at !f js· per{ecc.\Ffo has to kee9, "' 0. .
~ ib.e d.l.S'tome~ plc~d and lie~ha.J\also to be pun~, whtc.h
l • h \w:atfunhc~·submined ~t._ t he defi-':'i~ion o{"'~g~" ~-
~.a(rr); W • ./\ct]_..c!ude, oooun=on payable o,, poop,otion I ~ ~ ~ .a t . rh~ stitehinJ _m,~ ~ ~:rdone ~cc~tC:g to the , 1o-
1I1StnKUons ofdie cmployd and .,ithin the ume ;P¥tJell, Ties
e
of;SaJcs•Ot:)buJiti.es:s or both. The oornmission wh.ich $ ,5 ~
_."-:(1,.i,~ ~Y.~ -c;blle,cters ~ p.rOfflotion ·of the b\1-$~ 1 fact that s6me- employee! ,.t altc' up the wbrK. ,from other
t:all'o ring establuhmcots" and do that work d.oef: not militate
,.
•
e. ·1
of th~ ball,ks,,ri:i.1 rt9Ch•ing deposits &om i_l)ve,tors. Fwi:hei, '
against tbtir being employ~ qJ th!: b-tiabli.,llt'O~!lt ~ question/'·
th!: pr9yi,so to Sec. io, B:1nking Reg\llacions· Act clt2rly laid
;<l~n th~CCQnun.i.uion.~ould be paid lO ~ person who ~•Q$
;
: ht the present ~ ifofdi'ng i~t ,the De.POsit ~ ~ o~ j}'
j

e.
not~ the rqp.,lar employtn,en~ 0£8 bank: Therefore, Sec. io ;~ were •workmen' whhLn thd meaning of Sec. 2(s)! the Suprc-~ ~

did_ nor. prev~ht peposit Collectors from being o/,Orko.iC:n ai ;•

• ;."'1 ~ ' :r
Coun obtttVed, ~ i, cle,.r.f,tm S<e. 2{rr), I.D, ~<t, ~ha, die
+
0
;.~•f';"ed in Ji,; Indv.strw o;,put<S 'f'· · ; commissio:1_received by <kposit coJJecro.11 is noiliint else bu~
(/) · In SiW j.Nbiln T4i.l(}n)5 H(Jll.lt v Chief fflipt(l()r tf S/x,p, ~:J ~ w~ch is ~pco.dcor.o.n tMproductivity. ~ ~ ~ n _:.. • 0
it paid for promoti.n.g the bU$Uless of the v,,.n&ds 1n.ab._It if,$:
~ £,,,,M,...,,.,,{1974) I LLJ 7•7 (SC);tbisCourtbcld tbatdurulg • '' I M
:, ~ ,the 1-ast two d~des the cmph:is.is U1 d.tciding the.quest.ion ·or t inco~ to say that the banks h2Ne no control over tpe'dgx)sit OJ
:, lel:ations.hip of employer and employee lud changm. While ' coll=ots. Undoulx«D.y·tbe ~ collect= are ~ o regw,;••· , •
(1)
C.
~
~outrol Was an. irt:iponant factor it wia., ...,r¢ng to .say th.at iQ 1
cyery ¢&SC it '9.· ould· be 2 decisive factor. I t w'as held that the I
4.heir own hours of ~•ork bU.t t:bit is because ofhif nafurc of
the W()rk jt$elf .wd.ch;i.t ji wofild be impos.siblc;tO lm :wo~· o
;:;:
:::,-
.:.;,,~ o[ control and $Upeivision would be diffemi.t in diHin:nt
types o f bu.&iocss and th:u "'·h~t w.u essential was an. clement of L~
hours for SU.ch C¥J>Osit ci>llectON l>ec:1use they h ave eo go to
,various deporitors. Ho\vevei♦ there-is cor.ttol \nfunuch ti the.- .
•

f- deposit coUoctO~. ~veto·briotthe «>lleaiow and skpoau- th~.•

()
Q)

3
(/)
-authority over t.hc workers i.n tbe·~orm~nce of tho wotk; so
thaf ~ employce was subject t0thtdirettiom bf t h e ~.
It -~1 alro 1hel<f tha,t .1. ,crvaoi· n~ r1ot he .in tb.c aclusiye-
!. same in chc b.t.nks by the very ~ ·dly. They b..aY,e to then fill 4
in various forms, accou.n.u.
regis,ten .tnd p2.SS books. The)'. also . -
·~
..l
(") have to do s1.1.c:b other cleri'cal:work as tac Nnk miY <l.ircctf
Q)
con~i oL-;,nc ma.,ur, All th..t was oecessaiy was that the.
1.·bey :a.re. therefott, ~c.c:ounubl~ tOthe b:i.nk and u.n.dtt the· Q
:, .,towiw., .,.,,. principally employod_by tliliemployet.
:, control o! thi: bank. • · '11.
(1)
~
' ' &

,n Labour Law • l
''\V~ also see n o foroc in tbe oontentioo·tbat Sc,c,. 10 of tht-:
Ranking R.egul:nions Act prevents eM.pJorrnent o( pttWl'I.$ on
corrun.ilssion basis. The proviso to S«. 10 makes it clear tb,a,t
oonun.i.i$~(m can be paid to P'Cuoru who 11re not in regular
employment. Undoubtedly the Oe~t Co&ctors 2re not regul:.v-
c:mplo)·ee.$ o{ the B.1nk, Bl.It tl1ey M:VC.rthdC$$ are wo.rkcr.s with.in
the mC'i1nins of the te.rm as defined in .t he indll$tflal Olsp1,1lc:$
Ac.t. There is dearly a rdatioo.srup of master and servant betWeen
the De~t Colleet-Oq a.nd the conQ:.f.ncd Bank.,.
In U,J,n ef l•dia v K V. Bat, (!999) I LL) 1:z<JO (SC), it
h;1s been he1d Uu1t per$0o$ wbo ue engaged on the basis o(
individual contr:lCt$ t0 wo.rk on commission basis cannot be
cqu:ned with regular en'lployees doiug sinular work. It has
been held that the rnode cl $t.leeticm and q1.1alificaciont1 are .ooc
comparable w ith those of the emptoye,e$, ~ -en tbot1gh the
em ployees hlay be doing similar works.
1n the p resent ca.sc, not only the modes of seltttion :1.nd
qullli.fications non-com-pa.s-abJe, but even the work j,5 not
compar::tbl,e. The work which the Deposit Collttior.s do is
completely dif!crcm from !he wo,k wrucl> die «gubr ~
do. T bett was thus no qµcstion of 'abwrptlOn and there w:.s
also no qucstlon of the Deposit ColleetOrs being ~id the
11am c:: p.1y $<:~CS, allowances and othe.r service cond.itiou.s o f
the regular employees of the banks.]
Predominant,No cure- of Duty Tl!'st
l n .S.K. Mail') v Ml s Caro.1:a SaDJJ Ca. Lid (199◄) 3 sec
510, the
:appellant was workins 3:S shop m:a.nager 2nd in~harge of a shop ol
the ~pendent oompa.ny. He was incidcntilly doing .some clerical work
also. It was held 'lh:a the shop manager was JIIA a worknu.n.. The
Supre.rne COUrt observed that the questio n wheth~ an employee i$ g
workman under Sec. 2(s) of the Act.is to be determined with reference
to his principaJ nature o{ duties and fullC'ti.ons. D esignation of an
employee is not of much i m,?Ort:mce but the nan1tt of ma.in duties
performed is import3.tlt :and not the work incidentally done. In the
p~nt C,lJl,C, tlie d1op man-ager w~ on1y i o ~ y doing some ckricaJ
~
(I)
C
Definition of· Workman 173 C
work. It is: not nece.s:u.ry th.at li.e $.bould be vested with powerS to
"'
<)
(/)
appoint o r discharge cm'ployees under him. E
The Coun observed: A nu.nager or an administrative off.teer is
gener.Jly in1.<ested with the pov.·er of supuvkion in oontradiscinaion to the
"'
(.)
~
stercocypc work of a clerk. In the ptt$Cnt case. the predominant duti(';S of .<::::
t.he sh0p manager were adinirustntivt or maa.agerial ,nd tO S<lm( extent ;::
supervisory Ul na.rure. Within 'the authority indated in the terms and ,:,
(I)
conditions of his~. the 2ppelb.n.t was authorised to take. dccuion, i.n C
the m.a.ue.r of ternpor.uy appoiountnu and 11\ taking all reasonable step$ C
i,lcid,nt,J ,o th< prop<< rwuur,g of !he shop. Ahliougn some of the duties ~
liu tn:aU1t1ining 3CCCWUS, £ifusg oaui:rl fonm wett clttiatin narure, but the (/)
nujor jqb of the appdlant: was administrative or managerial.
In H1t1J{Wt Mill;,,, M ~ r v BO,IJJh.!.v J,011 O' Stu/ I...,a/N»lr B(lr1rd
(2001) 7 SCC J94, it wa, held that in deciding about the naM of an
employ~. his des:ign-:.cion 21:one is not decisive:, one 11.\s to ex:unine the
nature of the employees' duties, powers and functions. E ven if the
whole undenaking be an indu.n.ry, thoie wbo arc not workmen by
'definition may not be bcocfited by the u .id m.tui. It i.s the prcdomin.ant
n.ture of the services that will be the true and proper tC$t.. Functioru
of -a. governmental character (or incidental thereto) which arc
admini$tn.tl-ve io nature mt1A¢ be ch.uaeteriz.ed tO be .. indUStrW" in
nature so as to bring t h e Dcpartmcc.t or the pcnon discharging such
functioAS within the defui.;tioca of l<workmaca", Tbu.s., an ln'P¢<:tor in
the Bombay Iron & S~ Labour Board. U ,.,, a workman. The po wen
o{ an Irispec:ror :a.nd duties aD'd obl~tions can upon him as such ue
iclencic:a.l':wd WD to law enforcing agency or authority.
In A,tm,d Rgi,,11tJ.I Cooj. Oil Su4!;,-o-"' Uln0t1 1.Jd. v Sfuiluhu111ar
flarttJddbh.,i Shah (2006) 6 SCC 5◄8 , the Apex Coun examined the
scope of Scc. l(s)(iv) of the LD. Act~ The qucnion wu whether the
employee Ul this east: worked in a supervisory cap'acity an.cl was n ot
a workman. The respondent was an Assistant Eucutive U1 the Qua::ity
Control Dcpart-r.'lenl ofdie appdl~ Caopen.ti.ve Soctety. Before the
Supreme Court, ~c. appellant contended that the respondent was not
only the HCad o f the Depanmenr but WO supervised the works of
ni.oe U$istuus a.nd Ulcreforc, be was a.ot a workman.
 !" ·.
I
,,.~a... e, ~ ·•. •'<:?
17-4, ;l · ;l, ·
Labo i.ti . .'L ai?' __
·~· ,
l
L "
,:, .,,.~ ~-. ' .,,'.'
O efinit ia n C>f.,._X!orkmiln f
~,•,s. . ··=~
~ \.:,,,

~'I'.~ c~~ held: For cktcrawig.ihe ~~t~ ~ to ~heth;J: ln.sbcJi" c~~Stand!s, dte er~:ti"o:~r •c::ontrait 'Ltbour" wiU iJ . , id
pet'S9h emplo,Y,ed in t.n indusi-ry:iJ 1a. worktnaii or;.'h ot, Pot 'onl'y tb.e
. ~~~ '!te r~~r?1$ -<?#_ti~. · ·
co.0.S ~ea,a, i; shaJp.•~r .~ u.ila'gi i nd. the f:mPloyu will 11Qt b-~
1
,,
nanl~fif_2( ie{~~~ Ptrf?imcd b~ -~!~·,~~- rel,..,~lm.lii>~ili•r• ·. ... . :",,,.il . .• • / Q
appo~~f.Dt ut ,~e )Ob _P,cr ~ormed ~.~r~. .-elev.a nt ~0$1.~~.IJ·
, .cii, 'w;;:k<i,,;i,J:.(vif.¢ ~ff,;',;,j-,;i.,,,;,g si,i1,fi,k • S14ttV
~rvttt~p. c°1?~ ~-dir,ea_1on and~:~~~ ~ e , m ~ . · T~ -(AIR'2004 SQ 1~39), i!,,,;.. h~F ~difl«cnt applioabkf ....,car• ,,,_
the parure~of woric) the tssm~ of the f.'attcr s~ohld ht co~na. .
and ~des:~lion''o£ the!t:m.ployce or fhe,nUDC assigt),ed to·his claks i'o di'ifcre'nt •{2cc.t·.-n& cirCUIJl1:Bn.Cd...~A'il ttlev:aOt' hc~n must1t;e: ~
$ho~ D~{li.~~ii.uridue irilpo.1:1~:.i:rh.~_pfun~ du~ pcdo~. i.o~ated;:~e-~~s.;w1¥1:w-~Hfve'J~caring:O'n: lhe rutilt at¢: t
•(a'J""Wll&",.i!i'.;;.i~iiii'inffiiwo,;ij•· · · •, · 0
tt~trea m;:ire
An ~pjoyC! '\~: ~MJ;.J~f
is.
by nim are.more unpQnant. £~x.iitettc:c o/subotd.i.tutts whose worJelS.:i '
i1.;p~~is"'ia' ,I,,, 'r - lhlJr,t OP,_t"OVe.$ \ltrvis.ory '!t'ol-li:t.
.t&o:a
lm.iJ). _one ;ill~
,q,J..;;_~
!?'r.,, .•,·:;.«tor~~~ ... ,.
.\ ~ \J;,· •:.\•.- ~•. t ~
~ yt,y.~,Y1jll:Uf~1,.;A◄•~ ~. .•
·
-'·~~n ~ndt>t~ t .r.(c):-:-~ o can d.i$n\iss; •.·....,,<::~ ';.
quality ,e o o ; i o i ~ of an oil ,~,.,.,... <'!/IP,enttvo ~Ji',
, without :iii ~ut&rify to initi:iu'cf.epu(me&ai i)r~gi-a~srtb.~' ·,(d;.;r1Ho~1onf-1.tten.ti.ti~e.ser:v~ ~im; '
suboN.lrult~s. did~; faih Vithin the $¢Ope hfSec. 2(s)rrv). A' pen.Sh '••tc)Yf'ht-e~eric-~ft~tn tto1:i.n~:fitpel"':iiioii;=:·.' .'
IJ . 1ndi.$putal:H~ c¼'~ Ct'on ~iiperviso.ry work.if he has

ibvolves.~ru~ of k1ct and ~ ' l l n t is-no~~ UJttie: ~ ;-

cas~. Thus';rlie n:-sp0ft~t was a •workm1:m ' , ·
o{ co~i(91 _

~: .
e~e.r·
or suj)ervision ia repiii to rec::ruitnlent-}prol?lOtiOri.~btc. Tli~..:o.-lc·~',
,
., . ..... ., ..., -:: '· <.":,,,~\, ;..- -; ;, "'~;r1-11~, ,- . :, : •· ... ,. ;. ,
,r(I:) The nature ·oi the 10b W~ ct~J.r. 11 1$ pro!es~,ql:W or skill~
wor~ .,;' .
':(g}, -~a~z:e:ol'estab_
1.oome~t;•·:~-~;..~
1• ••: .. ',<,~
.~ ,.
tJ..
:tt,i ·
f -~
0
1 '
.! ~
ln'tosroC/o/J ,Tes /
~•l>l)~t
•4 • . 1
•
.
•

• '
In .Rd~ s,~~~~ Utu'q• T"':160',. t;_budigm>..,(~~) 1 SC~ l26, •t.lle :A~
•
,..

1
I'
I
(b) 'rile !ightto r eject.
I n ~ ~·l~e·~ ~ g .
'·
st.r,ibi
(· "•"
$ ~ S.e~ing 'Y()~ks.d ooe tb.J 'O',l~ •
third pirtics conu-,1,cu, having• ~g~~f to all rd~'ttt Cactbf'S 'l2QJ
I. •
l-J
CoUzt.o~C~t,•I.n dete-rm.uung c.he rclano.nsbi9. of einptoycr·aoc:t
:.·- mll)loyec,.no doubt~ uc::o:uroJ" is one of thc,itµpOrta.nt test:$ but is !of ~ c e st Ju.Jd, such wo~it•Wke ~ worllmen'o! th(' !acto,Y-.;4
U the provi$ioru of the· co.o.rraei-a'l .a whO[e are inCons:ittent with iu
1:.-~
0I
' to be 1tken as ~e ,olc test. All other f'deva.nt farts W ·~ s ·
being.a ~ontr.i~ of SCrvicc..it ~ill•k;st)~ Other kitl.(fOfqQnH'"~ an~ ••
(/)
arereq~d to bl«tn.si&red includ.inrthe t.ttnis':.and <:onditiotiS Of,
• tht con~ Ii is'n·ec-essary to t:lke a ~ftttiple pn~tic-i1pprwch w ~
the person d(nng the wo!k 'O'fiU l10t.: be-~ ~CJ"\•a n t. $ \~ 1.
p
~
:,
:,
(1)
tttie so1e.
h
"'ten
,..
of'COn;trol".
•
.• ·
0

i '-''p all ~;~~orsifor ;1nd ar,linst.an employment UUte:1d.of going 6>i J

t-fo i~t ~n~~e™!IIY~ ~~~blejli-~.:..
Inlt~'i,.Off:"'41 B,111/i "f. LOA flaff CAlf/.ttlt1 lnl';tm',U#ii,1' ( ~ 20QO
~ f. ~ .~
An.in,~ted :approach is needed. "lotegrition .. tett is one of ~ -
C. ~ 1~),.thc, Coo~12-mve Cancun ·,:,at,Profll?tcd ~411dministcred., . 0
re~Dt' tettt~It U applied t;y cnmin;i,g- :wbc~u di.c. p~ n wai fili:l:Yt w ith the consent of the nwut,ement'.ofJhe &nk, by ~µig mimlic:n
~ ia,~ra;ed ~to ~e'emplo}'er'~ concern or -~ ai,~ £r~rn -.itl~f ·
;:;: of the.Bank staff. It wi.s mflni~ ~·fthi.a-'thc·Bank's 'pr~sa wjth tb«
T' - ~~~t of itiT.M othcrfac£011 'Yhich may be relevant arc- - ~ho~
:::,-
() ~as ~h~·P,ow.~r.:t~ ~elect and ?"mis.s,
tO P.:aY :~~neritiOn..~i~~
fun\!s.-wboidy ~d ~.£,icilir/,; provided di.e}U$~Y by,tJ,• Q. ,
Q)

3
=• "!)nirihuuom; org,.ruu the "'orll; '"PP.Ir "'°l' and l,i.,.;;,,u~,
.. ;ind wb3t oiethC..,.m~ obligatio[l$'• bctw-een' them. ·T he coun, tl{ui;~
B* 1~ o/.U'.succ-pc4~ by:: cank'tn. run.by a contractor e~g.g«l b}•
t.be~mana~ment of. ~e Bank. ~t "'(a$!1cld rh::it ,ucli ~ anc~ ~ d,,
(/)
hek:I t:.lutl"jVhere the emplo~r rctaiosootatr0l'(?Vtt tbcmc-.uts ~ wOrli: f sho~ ~a.,. !he B~ h•1
voh1!\tatily;-undc.nakcD. ·att oblig;a,tion to \~
(') prov.idc t.b'e,cantcen services to its cmpfoY.ees. More., cA, wh M c.Ht , 0
to be &,,1-';C 6y rhe OOtltr.KtOr, an cmployu-e1JJployee reh.tionship CUSU. ~
.. ' . .• ' F
Q)
:,
:, '
. + ., ·~ . "
.•
., 1-
r . ·.. '. • l~
(1)
~ 0
.~ t
 ... . --·- ~
(I)
C
176 Labour L aw - J C
"'
Q .nt:«n worken: ~e.re et1li.ued u nder :a WeJfire Fund Sc-heme of the
J3,tnk. T hus, the cmployec::s M ,he caotce-n run by th e cooperati,•e
soc.ic:t y w~re the employees of the: B:utk.
AMIT-8604000350 <)
(/)
E
"'
(.)
T he Suj,re roe Court ol»erved; "The ~1a.ncLu-CU a.nd nature of
~t:$ co be ap()lied for finding out the existence· of ..nuner ~tel se.rv:lnt"
rtl-.niombip cannot be colUincd to or oonactizcd into fixed formub.(c)
(o r univcr;o.J i:ippli~Lion, inv-1ru.bly i.n aU ~l~CJ o r Qatcgory of~.
7
Definition of Industrial Dispute -
~

'§:
'O
(I)
"Though sonic co.mmon Stlllld.trd$ can be de\ised, the merely 1vailabiliry C
of anrone or more o r tbC'ir absence Ul a gi.vcn c:.ise OUl.D.Ot by itself bc- C
hdd to be dt:ci~ive of the whole i$;ue, s:i.nee it: o;u.y ~pend upon ~cb
~ to case a.od the peculiar device ::adopted by dte employer 10 get
~
n.e Industrial Dispute; Act was elW:tt!d ~ UlC main object to provide (/)
his needs ful£il.kd wit:hout reoderio; him li.1.blc-. 'That b,,,__ing the position. mocl\in,,y for the investig;,tion am! sealernent of disputei arising bc,w..,.
in order to ufesuard the wc-!£are 0£the workmen, the veil may have tb.e employer aod workmen working in ao "indwtry" as defintd in the
co be pier<:ed to get at the re..liries ... Act. 'fherclorc the definition 0£ ..industrial dispute'" hu special
(b) In view of the decision in H tmoilWMi case, the workers, in dte sigruficance.
case in question• .uc ·actually empJoyen o( AB Oil Mills and
they Jtre entitled to n l5C tbe laid iodmtrial di.spute. Sec. 2(k) 1
Sec. 2(k) defines •Indl.»trlal Dispute' a.$: .,Any d ispute or dilleren~
Q.2. X, a C11ndle Manulac-b;lril'lB Compimy enpged- I 00 pcl'$on; for
making candles during DlwaJi fts1ival. The arrangemerit wu
~·eca. employcn ~ employers or berotecn employen and workmen
or between workmen and work.men which is connected with the
1h;u chc pc:l'lOm w;,re fr«; to come at any time betw¢¢n 8 a.ro.
employment OC' non-employment or the terms oI~mpk>y:mcm or wiu.
and 8 pJtt. and ae1the raw nl.Me:tial fot the- j o b. ihe eollciction
th.c conditions of labour of any pcnon...
or me candles wo1.11d•be doae in the morning only on next day.
P~yment .....iu m:iilil at 1.1}-c- rate q( R.,. JO pc:r 1000 c:mdtu i f ii T h e definition is comprehensive and wide enough to indude all
was found to be of a re<iuired standard. disputeS or differences between employers and employers O.:" employen
2nd workmen. or workmen and wockmcn for employment and non•
lfl order to daim Rs. 20 per 1000 candles. the said persons employment or terms of _employment o r conditions of Jabour of a
r:ihod an indvwial disl)\l\e, wbicb was referred for adjudication penon. T.he ddi.a.icion of induiJrW dispute is Ul th~ p~:
Under the 1.0. Aet. The management raises a pre-limlnary (11.) Fda11m or a real and nibn:a.ntiaJ dispute - The.re should be a
objection th.at the persom. who have raised the dispute. are d.ispun~ or difler-ente. · ·
ltit;tependent c<>ntr1tC1or.s.. O~ide the lenabilily of Ute objection
raised by the: 1r11u1asemtnt. (C.LC.- 96)
A.2. As there l-f no control or ,upervi,ion over the exec..-uti on o f ,. E:q,1■ 111 •nd lllu9tr-Me N Cf•""ltiOn Of an 'ln!L.vfel ~ · und•.r ~ 11'1,U..Vial
Dlsi>U:nAc:t,. HM7. (LC.11-Qs-NJ
work, the worker$ are 'illtkpe.,,#111 "1'/r(J#t)n' i.e. then~ is a
O.IN tn<t C:01\(;ept f/lf 'tndultlttl~ute.' tp.V,-20131
'comract for $Crvice•. Thus, the obj.ecrion raisod by the
nu.n~sement is ~OITCct.
ll 771
 i.;
.. j
. • ~ • • 1
178 . Labour . Law - 1 Definition o! 111:dust-;rtal 'Dispute:' 179
' .. .•::t ... · . ·• . . ~;I
' (b) Pm-ti~r to the dis-putt;• - ~be ·au.p~te Should be· beJcen not bring: any disc.red.it to the indumiaJ'dispi.ite [Dn:mdl'MJ.wgrr, 'Upln
cmployttl ~ cmployen·or betweet1 employcn and woi-lunen /,di, LJd. v S1a1, ifM,,i,,,,;,,bm,, l9n 0C, l090]. Tl>~ di,pute .hould
Or Lv,;;twce,n wor=en
'--·
.0d"''
4_ ·•c._,.!,_
•w-Or~ ·., I
rclatc,t.5> ,wn.o,i,,gconcern or indi.u~cy: anj,.~e:ises to ~ cl~putc it the:, ...
(c) ·S11_bj«t PUl!t,r Ol the dispute - .'.I'be dispute Dlu.st:be conneeud indu!1,fy j ~ e.losed do':"'n on the ~:nt,:"!_li~,the c~use f,f ~on ;t.f'Q,$¢, 0.
' w'i th the em.pioy.me.ot Ot' nol1-em~oymbt ~r the tJ~ o( Simib.rly.. disputet: ~~ wse t.¢,be,~ t e, o.o the~ch.ofworlcm:tn
employment or with the,OOnditjoni of bbour of any ~op. cobc:cmed._ The quesnon me-.ch~ ~·C?n them.tute"l'and charaaei
'l'he expression 'any per1on• means tharthe ptoo.o may !lot be ofth~cl½pu'te. ~ ~ . ! ....~- ·
1l workrna~ but he nuy b,e $<fmconc in whose epiploym:eor, Industrial Disputes Act does ff9/ ~u.ire tb2t a ~uce, to be an
terms of-e.cnplo~nt or cooditioo.s of labour the Wor~
a$ a class h~ve a true and sub$t:UlciaJ in.1ercst. f: · ·
•indusirw dispute", should b e ~ br. • ~ ~ m,jotjty .or.:
wlion, Only requirtinent of an inCh.istTial dis'pu te. !5 tJ;iat there is,a!
~ v~m •indwi~ dispute' connot~ a cea1 ~d ~ctal difi'eJ~c co.o.troveny bet-ween the employer ~.u ooe,•ide and ~e wor~en on ~. 0.
hnikg some ~}.e.me11t ofi:,cmstcncy and COntWu.iq till resolvcd.1od the other side. Accordingly. it is not r i ' ~ dut the $pQm¢ring un.iOn
likclJ:, • 5,ot'
al!J~·•~ endAngcr the ¥,;~,j l'<i\<C of,the undertj/<iiig is " registered trade uniort or a reoogt;.iud tr.ide UlU011 [Btrl(rll St111k • (j,
or,ihc co~nity [:s1;:.,,.w,,, Nath v Bi,,,J, ef~ NF- 1978 SC,1~8$)., Nw,m LJd. v lndmm4:Trib,,n-:, 20?3r-'1:R: 742 (l(•r-1i,if . ,
Tbe.'collective b:a.rg:u.olo.g' ~ is imptkit in tho definition of Industrial W~.rc the Union which cool( u.p. ~he ca.use of~j he di$.ttutstd ·T
i!iip' ' . f.
~ dif(erence between employer and cmpi~yees
workmen itself came into existcnce-ati-er t h e. date of d.i.smi,W.U!ld tbe
, which.~ ~ dis-missed workmen joined the uniOJJ..i-hcrcaftcr, it would be a nlld
tQ resolving the differenbe-:is
tl1e.o«ail:on to mo..-e the machinery for indu,,r;,\ dispute u.,;,,;,,;. C.1/',,,y',J:tA.,bon & St,'t/ ~ V ll"o,,t,,,i,i .
c..o~.\>,:,t~.d~n of indu.ru-w di.spUte.J ~~tionor~i.se (1967) 2 LLJ 663). Eve.n .if .t» Union''W ~w supp0tt tQQ work.m.ffl1
of•-i.he. contrgveny 1.$ a secondary C011$ickr;1.tion as the diffe.oenc;e·ca.n c,wi.ng tO $ctdemenr-with the tomp1nj, the disputei eg'ardin,g thC 1,
• ' L" i_'I: • • I
- arue· w~ a demand is tlU((e w ~ may n0t be co~dettd iw-titied. worlhttan's dismissal, h eld, did not ctaK to· be: an inddit:tia! <llsputc:
or may _be considered wholly unjusu{ied by, -the employer,_·Jiut (Bin,r, Ltd. v w....,,,,. (1971) 3, sec aoti:
ne;vt~~ the ?Uchinery is put UllO .~tO~ U>mQtve the coatr?rt,:rv,:
[S#f.rn;1M..,}·H ~ v 1KS. S,iiJi AIR. 1970 SC li07]. ' F.
t!;
Indusui4.I dispute wilj tub$iSt i1'..Ji~ of t!(t$Vre, t.Weo:«-r ~f
industry. Where rhe disput~ i;s over1 c.bim 10 ben.efit byi'tlyof boou ,
(/)
0 .·•p;,) di:s"putc t:O be indLL1trial dispute ~t ·~ nectSSary thu a-deuind for work dollc in the p~st, it woulcf~ the duty of,!:he.tl'ibwul 10-,.
Q)
mun ,be ~ t - r.Usecf'on management and ttjeet-od by it. Wherek: oomptete the adjudi~2~on and ma~ J.~t>·award ( UP.. Bli!f'Yi! .Sa;,P!l <;J. ;i
:,
dcnund 'is niitd for the fim time before the CoDcil1:2tioo 0£6cu · · Lid. v 1 r.-,, 11971} 3 sec ◄951 •• ' .
. '
:,
(1)
' hc-.in' Nm COriunWli~ to the nwt~nt ~hlch rejected the.~ . .. '.
The follo'\V•iag d.ispµtes also li,ave been bdd nM td be: indwlt"~l
C.
wu hei.! rtouufficiem to coa.stitutcciodusni;J~ within lhc mell\u, ditpu,.. - dispµtet in mpcct of b , ~ :;nJ
genuine clCJ'UR of businM ,
~ oftlie Aet Wm Lti-d C"!>•· Ltd. v l.J. G - , 1)dJ,; AIR iiv!
;:;: or lodiout [Bxp,'rtn Nanp«JHr (P) lJ~i.v<T/H ~r¾m,~AIR 1963 sc; "?-
:::,- ~l 60J' ~rittCO oonAD.d U 1191 occessuy for bringing inro ex.is~ an S69J, alld dispute in r espect of.noD.~imJ)1cmentation.:J t award i.nd
'induibi.i ~ . ' . . . . •
() cl:i.~n for c9tn~$:aiio~ p:i.ya~le bi~ q'rkrne}l to lbe e~J)l~r for.) ~ -.
·ucion which collectively rcp!~ts die ause o£ cinplo~ ~
Q)
,;;.'.£
~ caused by strike. However, when closUtt k a pretence. or.,lock.out is
3 also dcfini,c)y hn-ing illterest ill th..- cqnclibon of ,emce, '!hu,, nfi;..i in diiguise of cl0$lJ.rt,.the«! i.s M tndultti.al dispute.
(/)
0 to ptrt:iei~c 6y any indi'\•idual employee whOi.s bolder Of a po'st cfues
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18:l I.,abour Law •· J C
C
Subject Matter of Industrial Dispute
The industrial dispute may relate to w~es; bom.is, deuncS$ ~~WilnCe,
Definition of Industriat Dbpute t8t "'
<)
(/)
ct<. o r H> any nutter connected with the terms.and _coµc!mons_of Further, the loDowfu-g dispuu, have been held co be 'io.du.ftrW E
disputes•: ·
cmplo)'fl\e.llt of the worke r$ or on some t~ne.r-:i.l .<tu<!mons on ~·Ju~
each g.roup1$ bovnd together by ;i commufu~.of wterest {O.N. & ~ (i) Allc~t.ion of wrongful temi.ination of tcT'\•ices.
"'
(.)
~
v P.R. M1,k.1x_rjtt AIR l?SJ SC 58). An;: d_ispU;te connected with (ty Cbim for rcimiaument of distn.L5$CO workmen (CP. T~rt .<::::
employment o r non•ell\ployment w?uld ordimu·ilr.cover aU m;aucrs Sm>lra f..,1d v P11~n AlR 19~7 SC 104] , ;::
tbat rcqu.irc $Cttlement betwttn ,..,,.orkmcn ;a__nd employers whcr.her those (w) Cui.m for compensation for WJ'Qo&fu) cfuminal. 'O
(I)
n-utten coocen\ the e3.use o{ their behig o ut o f service or ,my other C
question a.nd it would also iocludewit~in its scope the n:lid necessary (iv) Compulsory retirement of employee. C
{v} Dispute. connected with minimum wages.
for bringing about rutl'moniows rd2tioru between the em?loyers and ~
workers [U'/ u;mr frrdid A11Jm.lf()bik Ai1M dli!J# v l11duJtrial Tr:btt11al (1949) (vi} Dispute regarding payments co be mack 1;nder Productiott (/)
LLJ 246], Bonus Scheme.
All disputeS rein ing to the ma.ti.er$ $peci.£1'Cd Ul Sch<:dule5 land ll D emand of 2.n employ«. rclati.ni to bis eonfirma;t-ion on a
.shall oon:.titute 'i.ndust.rW dispute' . These :u-e: pOs:t holding in an :i.ctiag ca.pacitr [W6fflt.ll'tn o/ H.mdllsk...,, .l.Atr
(i) The propriety or legitlity of lln or~.r p~-ssed br_ an emptor-er ud v HJ,,t,,,,,, 1..,,., ud (t98<J n
LLJ 391' (S1::JJ.> 1, ""'Y
u.nder the Sunding Orders; the apphcatton and mterpretauon be nor.eel here tha.t even a carual or temporuy labourer is a
orSlitnding Order. Shift working ocherwisc than in ·llGCOrcbno=: •wor1an;ui.• •
wlth m.ncling ordcn.. (viii) Dispute tdacing to the age of superannuation.
(~ Oisdiugc or dwnin~l of workmen including ~~tement o£ (ix) D ispute a.bout the reuon for stoppage of work [M111ogt,,rtMI
or grant of rdief to, workmen wrongfuUy dl.$m1i;sed ef Atldi,t N11111dmlon Bn,gg. v S/4~ ef JJiM.r AlR 1970 Pat 265}..
(a.ii) Widtdr.-wal of .my CU$t0m.1ry concession or privilege.
t>ispute r•lotfnJ to workmen ,mptoy•d by the contraetor4
(i,~ Wages including the period and mode of payment. •
In S,.,,danJ v"""',.
R,fim,,J C. v Toor w......... (1960).2 LLJ 233 (SC),
{v) Compensatory and ocher a.Uowa.nces (e.g. house rent all~w~). the company U$ed ro give a.onw.1 eonr.ract for main1ena.nce of p lant
(vt) Bonus, profit sharing, providenLfuad a.nd yal:\l..ity. tnd pttJJ'USe$. The conttaaor's tne%1 were o.ot entitled to uy privileges
(VU) Hours of work and rC:S:t intervals. and th~re w-u no ~ t y of employment. The workrm-n nised ~o.
industrial cfuputo demaoding the abolirioa of the OOl'ltr.lCt $)'$'tem. The
(v.i:.'i) Lellvc:s with wage$ and holidays.
(,x) Cbss.ificatioo by g,><!e,.
(x) Rules of discip]ine. 2. Can thrl 'NOl'1(m•t1 rai&e an ~.,.:~r' <1119ui. rot, ctalming i:,erm,n,ncy or 1tlV
Jobi? , (&..C.ll-f6 (Sup¢>.}I
(xi) Ratiomlisatii:>o. 3. A di!,putct belvi/Mn workm.., •!Mt ♦mplO)'M' ,.pwdi"IJ confl~ of -woriaMtl
{xii) lll~-ality or otherwise of ;. strike or lock-ou1. •ti
of'flei•tin; in l'ligher grada if JndUWiti dispute. Such (1"9..,._ It connected
with the teffll.s o( •mploym•nt rel•tinO 10 ·cl •ultle1Uon Of wonoNtl' whict.
(xim Retnnchment of workmen and dorure of C$t.abl.i;shment. emplo)'ec rs bound u ~r h si.ndll'IQ Order. Ad. 1Q 1)1'(1'11(1• for itl IJ'le certifltd
• landi~ orders (WorlcmM or H/ftdtJ$lart Lawr Ltd, v Hlr,du,ttH'I Lawr ltd.
(19M) • sec 3fQJ.
•· ll th• tollow\'\,Q ' an lnicfu wtaJ di1pute: Di•JMIC• rf!Md by workars·<Ml'Ntldil'IQ
abolition of con1r•ct labour in lhe eoncia,n. [t..C.11-03)
 ·.~i£i
,, I• t. h ~Jr,;/1 (;
182 • Labour'. Law - l ·. . Definition of· I_ndustrialo DispUt_~ :a:. 183
i">-1 .,_;.,, • • • •"' I '
~ u,er~ ~ourr tield the dispute to be an industrfa.l dispu1e btcause , ~p~~ot. ~ .industrial·disfl~tc~~ •nf cxist betw~n an cmpfoyer
qi~~..was a ·real &nd subuanti3.1 dis_pt1c.e_tiet'?J'een tbCcompa.nyj.ful the and penon 1't'.S ~
W<:>rltmcn on the question of employiiJnt 0 £.eo.ritract la.hour l~r-the
' . s:eekiog
' . et0P,loymen1.
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Dispute Aiust ·~ R~I ~n·d ·oeflnlte-- - i. C,
w&k·~ r conifnriy: The facl that the v.·orkme4 :,,;ere em,ploye<l 6y-the ,
· conu~o! ~ould _no~ alter the _1u.ru..re_Of tli'e diip1.nc $(dong ~s the The dis~tt or differenct'·mutt i,; s-omething f:udy &flhiie and of reil ·
' $\1.bsr~ and not a mcrc·pe,SOoai' ~ 'o.r a grumblidg'to an ~ii: "
p-any-&r_a:smg ~e dupwe ha.s a direct interen in the subjecr-ffl,a~te.r of
conn~~ and iul:iitaniial difference.., .©
~ . • ··1.: "; •
Tne tehii ~4idunl'W dispute,.
fu.vin.g Sf>me element of'perS:istency:,-and likely; if 1\Qt 2d;umct:. to ,.
~
_ . The ~ spute in t~is case is Wt the company' shoutd:emptoy
~ \!,i: industrial poaceof chc llommunity. The e,cpjfflion "dl;g\ite
fi.O ~ ~rand not through ~ntppo~ in carrying o ri itf.l~ork oc di£feri:.o.ce'" is nQt i n t ~ to ~mere mcuphysic~, ~ ~
tri~ 'tBji d_ispute ts u_ndoubtedly real :ll;la $\1~ti:a.l even ~o'°ugh the
r~lar,w6rkman (u. rbc re.spondeou) who have r-aised ii: :a~ not Oc phlk>sophial controV<T&iis bciw«it ,mploycn aod ,rnploy,a. 'Thui; ©
a workman may ha,•e ideological diH~re.q!'.=c, with th.t aliployers, a
effif_~~ op·~ntta.~ labour. HOW the worlt of the companY~.sliOukf
M ~ oa. u «rtainiy a matter o! some imporunee to W'orlur?etl. ~orkman nv.y fed $)1IDpathetic;. for an; ~plQ)'", a ifO'rkman may fed ··
ttri~ly agita~ ;a~OUt the c:ondi~o,# ~ tay:our ge.ne~ r, tt-c. These .
e
lt•~s lield that the company should ,abolish the contract $)~crh and
. ,,e n0< uidu,crial disputeS. If the dupure,f.' ii,4,6nite o, ,%u,, it mi~t?-
cllg1,;c-! cgular workme-n ai,.d in $0 doing·it' w~s ~o g!ve prefeiedce to
disqualify itself u an: 'indunrl:U··~~~ee• "'hy re~.n. of i.~ own
0
A.h~ w9r.~cn employed by the oohtractor. • · "' ~
utrav•gaiu:•• LJ.T. s..;,m &. s.,, ud. y:U•dkr (1965). 3 All ER 102);
.,l, • ?ifc ~O\.l.tl"vb~.rved: Wher1e-,•~r a..dispuu: p; rtised by work~n;
!Jw disP,~t~ m ust be_~o.ot!~~~~•i :•~ genuiue,,.~ne~The Mere ~ d i
m1,~ P.fdto the empJoymcnt of conrrac.t l2f;our. by·~.oy emplo~r. it
~ould"""b c .n~ccssary,·for· the Tribunal to examine the. merits 1f..,the ' pretext, o~ ~ .~ '. ~ ·~ t Ql an ~ . Utisputc willp~t do. ~ 1
..._ di..s,eu~~Pa,rt•from the ge,net:tl oonsider.u:io.n thM COJlmct la.bout~ 1t m~..also be a Gf1CVaDCc fc~ b.i ~wor~-~ whoi.n die fi.n,.J)l())'et is ,a .
to ~ y or set right, ~')'Jl alleged assault o(a }'T.Ol'lmw1 qr
11 po$t.taon _
not ?'C-er.co~gcd. and that in a given case' the decisiOn Ulcmld ~$t Jot
:an officer is'hot an iodustriil:dapu.te?~ · · .. f: :,•,,
mcidr on ~eoraic::tl or alnr.ract objcctiqns 'to contnet l2boiir Jx.il ilso
O}l ~e. tC'ftllS and conditions on wb.i(h contr.ilct lal:iout' is emplb}•~ aii"'d • . Whett privil~ gi~ tO an offii"tl>ekr 0£ a tradhmion in the •
(/) ~e~ griev;s.nce made-by the employees ill te$~¢t 'thereof. • ~ '. form,ofduty ~ f iJ withdnwn by t1.it:~ement W}u¢h bas gr,uued
0
:..... -~?~i:c:tbe._bbour engaged by the contractor was depriv«j Jr th~~ ilie privilege. it.,..., 1,; wd th2t .I, ui~I dis~ hi,,a,,..,n tbmby. l
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:, l~g_al tiicilitics en1oyed by other workers under the st:lll.Jtt It wis.heJd . The I ~ st~ ?ft~ duty ~~lief i.$\ 01¥.r;hacof a. coneffliol1 aiid not-
t.fs:ft'tbe em?loymen1 of oonlhtt b bour wa.s a n ~ ltb~w- p.r;ia.ctiec a mah-er pcnaming r.o conditions of ~rvi.ce'[~rhm-t• i,f I.ndin B~4. v
(1)
C. (J;:!f._n;J;fctal ~-~ v w.,...;,,,,, (1966) I LLJ 7!7J.1fdu,trial.l rW,i~,.j Af,"'#/,<"''" ,f r,,,... &~k (19ssr 1 UJ 6 ·(M,d.)J. The"•mployei'
~ to keep hJs verbal assuraocc dicl l;l0t amount to.indwtrial dispute •
~ ~~..~.r al5oh~on of oonuaa .laboun! tl~e fa.cu J~st.ily [Ntllh~
;:;: &. Slfff Co. Ltd. v St.au ef w.a. AIR J967 SC 1206]. ·1\
(Exj;rn, N - =}. .
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() .,:~_lil'. J<;I<:. TW/d,,,w v FACT W. ((19f2) 2 lll.J' 782 ~,JJ'.~tl<c Tbere c:aii be no nixu.s or: ~ between the workmen uid ·the
Q)
~p.011~ ,ucre ~mployed by the comra_ctor in'c:onocction thewi!i_ ~~ resulci.og from i'es~tio4 / ~ ~ t of tke ~tt\f)loyees ui~ .
•
3 w~r.k -of a c~tnp;in~•· After about 10 yc!U'S Of $CrviC'e_they: cialnifd'.t o th~.~ t..Th; dl,pute ~ ey ili2worlancn "!Jting to·lilling
(/) up of auch VII.CU\Ots 1S Ml ;in mdustriahil.ipute. T he ACf.!iaS used the
0 : ~ .-mor.~ ~ servtce under th~ eoo,,J»i,y, I~wa.1.hdd tha.t fbt'}·!,·ter~. .ex-pression "'any' ~rson" and not "'any post• and the w9.rkmcn could
Q) 11f"c.( die ~orkmcn of the: company but .wert· onlY now seeking.
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,Labour Law - r Oe(init~on of l n.dustrlal Dispute 185
noL fight. a ~a~tlc fort.hose no n-existent pet$0~S who might or mighr
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only. but for the class of employee, from tbe class of employer$..•. It
not be appointed to Ule vaQnt posu. . is a banlc by the cbU\Ullt:s. not for thermelve:s alone,. (Issacs, J. in E
Simil.'ldy, the dispu1e rq;uding the r ~ t6 c:mpl~y the ptt$0?13 Cmr:4 f/MdJ~• Ltd. v Af,,1tra8qJ11 Timbu W~,y• Uniott, 32 CLR 413). "'
(.)
who we,e 1>romi.sed to be employed is noi conoecte<I with the
cmploymem or non~mploymcr.t of any person widiiu the meanin& of
Sec. 2(k). .,Nori-employmem in the context of emplqy~nt previOU$)y
existing is different from non-employment rrferablc to contemplated
If th.e dispute i$ a collective dispute, the party r~is.ing the dispute
must have either a direct i.nttrest j.n the $Ubject nutteT of dispute o r a
wb••••nw . , _ , 11,en:., i,, the scme dut me class ro whic-h lb,.~
pany b<-longs is rubst::l.ntuJjy affected tbettby. [t is the cor:q.munity of
-
~

empJoymcut. Except p,:oof of ~ntitlcrnenl ·to cmpf(!ymcm (such as
pr(.)visjou in the cercif.ed sunding order or n.iemorao<lum of setdt.mern:
requiring entpfoytr to employ ccruin pcs:son;), disp-ute$_r ~ refusal
to employ· persons disregarding p::omiS<' to give ~niploymc:nt is N4f
connected with employment o r t100-employment wit.hirt the rn~jng
of Sec. 2{k)'" [l~tk"Qtn ef Ni!gri y;rp!I. Mki:g. S(J(if~· v S tat, ef T.N.
(2004) J sec 514].
A "recognition dispute"' i:i ;u1 i.i~tri:al dispute. Thus, where an
empJoye1" r;efU$t"$ lQ n4oti1ue wilh the uni.on i.e. refuses to r«:ognjse
the union as a ·ba.rg.:aining 2gent o( iu emplo>·«s. such a dispute will
be ;m i.ndustri.a.l dispute [8ulbwm v Tn·11idad Cr1M»t LJJ. (1960) 1 All ER
274).
A d.i.spmc relatin~ to a p,r.,imur is~ an indunrial dispute, :u he
1$ Ji Ol in tlie- $.ime category as a dismissed or retrenched workman,
However, pension ca.n be ihe $Ubjccc matter of an industrial d~pute.
community of Interest: tssenttal for lndustrlal Dis-pute5
For an indu.srri.iJ &pute there, must c:Kist some community o f interest.
Norm;;.lly workmen w ill uot .-ais.t: ~ <fup\lte in which they arc: not
directl)' o r,s1.1b$t:1.ntiaUy interested. OnJy a collective d ispute could
constirnte ;in indusu·ial dispute.
"The ,,-cry nature of an 'indus-tri:11 d:sp~1t~ is to oba.in Ol!"W incfumw
conditions. not merely for the $pecific individual$ th.en wo rking !rom
the specific individ~s then employing tbfflt, :utd not for the Plomeot
5, N o,m.tty wotkrr..on will not f a.ff • d i ~tt it\ wl\ieh t:11cy &ro nOI d1r•011ly or
su~!&ntielty irltcre,ted. Oluusf.. In lhe i;gm ct ded::11:d cue, ltl• ~noept Of
iridu:.trlal di59ute, IL.C/-Qff~
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interut of the dass as a whole - clau of employers or ch$.s of C
C
workmen - wbich furnishes the real t'ltXU$ between die dispute and the
~ to the dispute. · ~
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In -11 case wh.ttt the party tq the dispute is composed of aggrieved
wo;kme.n themsdvn and the subject nutt.er of dispute relates to them
or any of them, they de-uly have a t!irrd incerest in the disput~ Where,
however, the party t<> the dispute also composed of workmen, espou.sc
the cause of another person w h ose emp loyment, or non,,empJoyment.
etc.. may prejudicially affect ¢heir i&er~ tbt workmen have:.a MAJl4nli.:zl
interest in the ,ubjtct ma.;ter of dispute, In both cases. the dispute is
an indu$tri:J di)-pute,
T he above mentioned .:est of 'direct :a.ad sobftantial intettn ' w21
l.Ud down in NK $,n v LAboHrApp,/lale Trib1tnal{1953) 1 LLJ (Bom),
aod wu approved by the Supre.mt: Coun. in the c:asc discussed bdow:
l.uDINO CASI: WOfUCMfH OF DIMAKUCHI TEA ESTATE v IMMAKUCH'I
TEA ESTATE6
[11958) 1 LW SOO (SCl]
[Wo rkme:o t:an raise a disputt in respect •of th0$C persons
onJy in the employment or non~ployme:nt oi: the: tttrns
o( the cmploymettt or the: conditiqns of labour, of whom
ti. Exan11ne ,,_ •~Pt or tM .e.JIPtetsion 'ffly Ptnon' -.;,pe,1t5n; In Ill• defll'lftloofl
of 1nttu,trlal Obput•· under Ule:' 1.0. Ad. f!xl)ttm vour viewt In tt'I• ~ of
relcwatlt case lM. • (0.U.-20101
Tri• <lefl"1Uotl ei~,e In see. 2(k) doe, not oonuiln any word• o! qu•~
or ,.,tnr:tton In ,e, p•a Of ·arr, Pft'SQn· • UI the H id «atpnaslon c,nnot -.
given •• MIIN,Y meaning. Dltcuu tfl• dlfWtion Of l:nduatNI Dl•PUt•' In Ste.
2l'I() In the (Ohl of the •Wement. • (O,V.· 2011)
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Labour Law .. I
""have dinrt or substantial intttcst. •T be expreniori I"
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..,, •auj ·per~on' ~n onl}' be a person~ whom the Worker¼}' 0
, ..h'ave a' dittct.
, .;_.;. ' 20d snbstantial
' intae,t i.~. a c:ommu.nity
. .o f !f
Int,.~_,. - , , 0
n ;~ disputc: need not be in rt$pc~t'of a ~ork.tnan ,-,ut_:..
comm.J.nit), of iotefest·in tJ:te.w9rkm.an is ricoem.ry' for ! ·1
'the ~Ute .~o bec~e an ind~tfial diipute.] . , ::;
~ ~ ca1e, one'Or. B~ee wu "fl>?in'tci:I hr~
~~ . .t
,s ,heir Asiiswt, ~ Offkcr, o~ three mooths' prob.tion.' ·
Aire, th,,,e-m,atb,w,-wc,e """'""oid. wid, co, mood,•,· 1
Q
siliry• ~ Lieu ol nocic,, on <be.ground ofi n ~ . On.~e• f'
. cs-t'ousal o f h.i.i a use by tbe A&sa.m ~ S ~ -tbe f - : '.
(e
' Government ~f Assam rderrtc;{ to auiliunal die dispute about f ....
,h ~ rein.staw:nent. T b'c Tribt,uul '1CXepud the plea 0£ the
'm.in~c:mellt.~t theM ~.~ ;was n~ ~ •w~~· and
hence rhe T ribww h,d noJuri:ldiccion ro >dJu.i.:.t,.ti,, diit>ote.
i _
0
f.
' . »ef~.re the Supreme Court, the wotkinen·~ sed the ~1J·•~ · l~ d
. '1tj,•
~ :a.dispute coneer.nini.11 penon who it not a ,v.•orktna.n . ·~
co\lld be an ind1,;11tr.W dispute. Tht> Jeamed,counrel for ther· - ·.~
v.·orktne'.o. submiri~ that the.C"XP.l"CSSiott 'iiny person_' o«wri.ng . ;,
in the fast part of definition of 'industrial disp1:1ie' (Sec. 2{k}] i-
,ls AA, expression. 0£ ,-cry wide impon and ¥e. ~ tto. reisollS
why the w~rds 'any pcr;oo' should be equated with 'iny
(/) workman.• The :i.rgument is tht inum.uclt.u the cfuput.e or di l
~ dill',,,.,,.. betwtto th, ffll!)IO)-cr and th, woikmoo is connected
:,
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with the· no.n-e'm ployment of a pc!rion C:Ulecl Dr1 Baaetjce: · 1--
(evmihougb be·- not• worktru:>), die cfupure is"" indusia.J• l. f9.
C. <i;,sp\lte: Within rhe mcUW:,.g. of Sec. 2(k) <>! the Act. ·
~ :. The Supreme Coun, however, dbserved,t.b.at the. t
;:;:
:::T ~refl,ion 'any person' eanoot mean.~yi;;:odr,andeverybocly r
() in~thf,~wu:k world. OtherwisC, it •Would b'e , ~pc-..n to the:~
Q) ;imlanen not onl)· to raise a dispute Wi~ ~ to thC tcl"D1$ i
3 of ~mpJ~p.t of ])er$012.$ employed izf tbe ~ ~try.as · ,
J eru¥-vei b'.c,t .only·to r.ai~ a dispute:'~ retard to the U!m'.1$ , f
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.t •

188 Labour Law • J
Jhe princji,Je of solidarity of the bbov,r moveme.n't or general
wd(,u.e of hbour must be ba.sed o n or, corrdatcd to the"
principle o! eom.munity of interest, Thull, the' q//Jtr crucial
limit2t.io11·i$ cli,n the workmen Cifl raik -a dispUte' Ul rcspea of
those persQns o nly in the employment or non-cqiploymem or
the terms <>f the rmploymenl q r the condiciont of labour, of
whom they h:l'-'e direct or substamul int~.·
Such a person need not be strictly ~ing a •workmeJl'
within the' m~ing of the Act, but must be one in wbcxc
employment, non•en:iployment, term, Qr employment or
co1~ditions of Jabour the work.nun 2S a cbu ha,·e a direct :usd
suhstimtial inter<:SL
(iv) Thus, 'any perwn • can only be .ti per-s6n in whom
the workers l1:.1ve a direct an<J sul.m~nci.tl interest,
ie. a commU!Ufy of interm.. Community of interest
ca.mot exist unJe5S tht person is a ~ or pre.sent
workm:ut..
(v) Ordia.uray, it~ only the aggrieved party who can
rAiS(' a dapute; but :ui •indusuial dispute' i$ put on
a collective lnsis:, bcc.uue it is now scnled tlu.t an
indunrial dispute, not espoused by other$ of the
cl:iss to which the aggrieved party maybe.long. i.s
not an 'ind\lstrr.ll Jispt1te' within the mea.n.ing of
Sec. 2(k),
The court held that !Dr. B:m erjoe was 1'ol ia •~orkma.n'. He
belonged to the medial or technical uaff -'3 d.iffereut-atcgory
altog,ctllcr frQm work.men. 'Fhe appellants had no direct, nor
tubsiantiaf inteteS.1. in W$ employment o r oon-:em9loyment, and
ev,eu ~suming: th.1t he was a m<-mber of the same ·rnde
Union, it ~ be said that the lfupute regarding hjs ttnnim.cion
of service was 2n i.od.usuial cfapute with.in th<- me-wng o f Soc.
2(k) of the Aa.
It may, however, be nQted that today the deci$.ion on
f:tcts wovJ<I be differen~ due to the exinence of the word
~
(I)
C
OefinltJOn 'of Industrial Dispute 189 C
·teebn.ical' i.o the definition of •...,orknun'. Today a doctor is a "'
<)
(/)
workman. Ho""e"'Cr ,.tbe NM of th.it case nill holds good.)8
E
Jn -~ nb,,!'' ef D11hi{f~ Tfl:I Elldk V o~lll"gu,/Nml Tea Es/'1# (Affl. "'
(.)
1958 SC 1026), the Apex Coun followed the D~dJI T,a Brt4t:
~
Cue. I n. this cue, a Tea Estate wu sold to a buyer w ith an option .<::::
wbechcr or .a.'o t to take t h e ~ of any cxi.sti.ag staff. The buyer di.d ;::
nol take into service 16 members of the clerical staff. The cause of 'O
· (I)
Wesc leh-out immben was ta.kw up b y the Utuon representing the
won=,. C
C
le WM hdd that wbctt the workmcu of -a.n indusuy, or a Union ~
repre.5enti.ng the wor-kinet1 nise a di$pute agai nst the employer, ch.e (/)
pcnons regarding wb.ose cmp!oymtnt or non-emp!oyment the dispute
is raisoo .ceed not be 'workmen' wi thin the mcao.ingof Sec. 2(k), In
the prcsmt case, the di$cb.uged workmen were ~orkmen of the Sliller'
but ltQ/ •workmco Of the buyer.· Eveo. so, th ey were penoni in whose
employment, or non~mploym.ent, or terms of employment or
condirioM of ta.boor, the actual workmen of the Eitate w-ho had been
taken by the buyer in his service were dir«tly i n t ~ Thenfore, it
w~s hdd to be an 'iodUStl'ial disput:e.•
-workm.a.r.-• can nise a d.uputc t.b.ac ~ cla.s& o! employees not
within the definition of 'workman' should be recruited by promotions
from wQrkmen. Whco they do so, the workmen niise a dispuu about
the terms of their own e.mploymeat though UlcidentJly the tcrnu of
employment of those who arc noc workmen arc invol ved [All lntlid
Rmn, &M E,,,pl,/y,u' A»m. v Rm,,,, .&..t ef I,dia (1960) I SCR 2~.
e. A, • dQclot wn •fflPI01ed I>)' • prfw'atll hQIPllal n • MM.leel S~~ttnOlnt
on,,.. mot1*1\IY . .iery ct Rs.10,000 p.m. Ht atwaye maintained v.ry corctaJ
1'1tlatiol'!a with the wottten. Hla utWllM wel9 tef't'l'llnattd \Whout aulgn.tng
any tNkWI. 'ftlt led th,e agbMicl ~ to ,.._. • dispuM. ~ • IMl•~t
It la 1n ln<hJltrltfdlt,puc. Of riot? 10.L.C.-9,SI
WIii It meke •IIY clflwl'e(lce In ~ r tnJMr • t,,e dGc:tcr had ralMd the chi,u1e
on his own?
[ ~ It* •n Mwtrial dllputa, u • <'O~ II • workffl• n.. It would not maite
•f'IY din.reflee co tM •119Waf.if tlt4I doctor
by W'W4I or see. 2A.J
ti••
ra!Mcl ffl• diaoute or hla QWII
 .. . ... "' W"'t J
•
:\i
190 La bour Law - l ....... -191
• . I
.'dJ
\n Wo,:4-~-M v Grtai't$ CottM JJJ. (1971).Z SC~658, the ~ .tas
-~
..This (ad: bec:i.~ knowri'belore jO~ 0 £.reliondcnt 20(1,
wh; m,r suP,ttyison ~ 'less trutn Rs:. 500 per month OD t h e ~ therefo~ his appotmmeot Was cuiaillbct and joining ;,..a$-rcfusld 0.
date .naJlldf the date of rcf«en.<.:c can raise a' di.spu~e r ~ g 'Yatei Thi' r6po<t\lent r.uscd dlibure-"'--·tlie<,o,-~r re!u,,d to,
• •.• • ""t .' ~
whi~ c:ake them beyond Rs. 500 [uad thus 11W4of: thc defWtlc>n"of nu.kt a reference on ~~.,. ':'ttr.; -'t
the gi:owtcl,;tliat ttspondent WU not ~ ::-,.
0
~wo.r~'en'.in Sec. 2(,)J. The Apex Court 'b ~ *In our ,•i.e,-,'tlu;! ~~o·f krnin as.he h2$. not aC~~;jOioed scrvi~. it · f
TribuM-;zfhujurud.ict:ion to con.sider revision o f ~ stale,, ~CSS.
- allow~ ~ a~ other emolumt.a_l$ w loD.g"u tMre is :a ea~gQryti-fI
· ~~ c- i;.;MT~ .l',1n-,pondet,i moc1o • .......:,,i· · 0
worltmCn who are employed in a su~ory capacity :uk for a pay
~ofba$andri'~'lo~ ·ancmp1o~towhidf,t ,
he w;U no, eotitlc.-d undet"ili.1Scb.1me, Sudi confealaierlt was •
·1 . $ttuC~ur~ which take them, beyond Rs, SOO ~ t by il$elf doet 4.01.
.p~ud~its jurisdiction to determine whtt ti Ute proper~~~~~
dete,;tecl"timd;a!)d di,ie~ hi,joining rcpon...., "°'"""'P'cd. .
- •--h w.a
• ~ not u,.,: __,.uic .:.:!.,
_._ •...... .t
Gl
•

for: th.at class or category o( "1'orkmen...W1w ha, to be sttn is wheif;ier

Irusrriuch as .L -
wercspoUuc+ll- ~ . r . ~t vi. '
on'tbe dai:e o( the ttfefinc;.e the«: was aiiy dispute Lil .rcspc-ct o£ ifU:
\h,_app<il,.,;~ rcki-ri.og adHp.~ widci Sec. 10, LO. :\ctl;.oed 01' ! I
-cion thot rhe~th.il<Jit=d...-vicc of~appe!lant
a
viorkinio which could be tt.ferttd u nder the Act tO Tribuml.'" ~
' • • \ . !:
.., / the Court funher obsen.-ed t.b1n .ias long~ rhett 1.rc pcnomiin
the. c:uegOry• of ?fOtkmen i.n. r¢-$pea of,whom, a di"q)ut·e has,.bC:"c:ll
~!trfed .ii ,'ciutno,, be said tlut tl1e T rib.unal, fias no Juriklictl~.n
not:'0th.stin~ the,J;ici ~11uome of.~ ·m.tt b&:omc .o.OD-wo~
. rf1•.::nf t,h:"! i;.nd.eney of the d~p-.at4,.. lo. o'~ er wottb, ~ t the ri.mefof,
and was"fcmoved from service . s ~ £mm marJrial infirmjry •
ai;,dW"', thcrc:fott; viwt<d, :n>w; m,"ii:/m:aoeof m, dispu\e~
wholly Ut1~""7'a0.tcd and uttalitd:{O,r
. . . ft:. 0
.·
The r-espondenc relied on )P"~ #.,ifef !Y~T-1r1 Etta1t
case (All\ i 9S8 SC 353) ·, o sub;,,;rdw in vi,w of s,;,, 2{k}
-( I
,

of I..O . Act a"dispi.ite r-!1,i~d,f5y" 'Uly p~son' e'Vtfl il not :I. t

,
Q

~
I

:a<i~aiclrio'n
~ •<• l
the~ ,hould $It le-.i.st be.SOlnie pehow·io the atFgOry who . 'workm:iri• ,mtllJ .itlUlf lt t 'o mp·e~~:nt-. The co-u.n'; howC'V'Ci-~ I t
~ Wor~,n. . . I
o~ed thai tb~-R i.cl case.<!id'°hot rei.ate to a; eipon ,n~r.iJ l ®,
lu.ciKO Ct..Jc::. &OHGAJGA.OM Rf FIHEfti a PtTROCH~ ICALS LTD. vi omRloycd $.lld yet'claimyig ~o-be: "'(Orlunan. It 'ki~ Jield th.a~ ,
• SAM.IJOOl>IN At-lMAD
(AIR.2001 5C 3S77) '
1· ' ~•any penoo' cannot be~:wnJ:i.P\1! liinitation Ul&1a P:rscm in i•
re~p«t. of 'Oi·.bich the em}>lo'yer-emJ?loyee rdacionsbip na,cr: •'.
Q'
1[1'h"e expre$$ion 'any pel'SOO' C;titaot be rad ·without ~ ~:iwt<d a.n.d ~ never, p~ $lbly c?US' caAnot- bc ~~e- subject
1

Q
'
(/)
• limitation and a person i.n·ttspcrt ot .whkb the cmplo,:er• • of dispute betwttn emplor,CITT·and wQrk.mcn.]
JlU\tcr •
0
Q)
~ci)'!e i:et.1-tionship nevtt cx:tstcd aod '?'D
n.a -~_po$$joly The word '~ri• io ~ - '2(lt/ ¥cs-~ l9d~ide noo-wo.f~ em.p1oytt
:,
:, exist cannot ~ the $Ubject mattu 0£ disput~ between
j'

t' (MJJ=r.l·l.Jd. v'M,il<M_,t s,;,i!-,;, Offii,n' J;J,...... J'JR ,200~ SC J90SJ. G

(1) em'ptoYerSand workOlen. Such· ;a j>tnodjs, f o r ~ ~ a . · --.... ,.i°'--t1" • 1. . •
C. L ~ C...U.: MUNICIPAL CORPN.: or DELHI v 1fMA.LE: WORKW

~
1
pef'S0n whO '1i·a.s offered appointment but :,va.s.i10t.llllowed~ ' '. , ~E{' ROLL) ,:_ •
~ to jQin t he $eM'ice by not accq,ting ,h it joi.oing ~ ) ..
;:;:
:::,-
, -:r·• ••-: t' , . -,
· Li th.u c~•t.be responcknt was recn.u'ttd 'by the appt.Ullftt r
1· . : .. ,~~~~4 127◄) :·J. >

0
_ .. .,,, [Tru; female workers working on Jl)uster roU (<liU)'"wages)
() 90.rnJ)tl:ty under a 'benevoIen.t 41::mp.
' !oyme.at , cheme' ·o f
Q)
;e,mp16xmepi- t0 candj_dare, whose land~ been -acqu.i,n,d by dt.o~ he!" giyen matcrn)ty~beii....,ctlt like regulat. ~ploy,~s
3 ·'tbeClOID.pany. He goth.is job by cor;a,:IJing t!).c ~ diat hi, n.•o of .the M.C.O. Such feth.alc :WOC'kcrs arc ~so 'wotkmcn• ,., , 0
(/)
0 brocl,en bad already bcett giv<n-employm,l,t l;j. w, <-ompany.
and thC ~ute betw~thnti'~ir~e Corpontion ;would ...... '
~

' hav~ to be tllckled as a "in.durnial dispute-"" Lr\ the Ugh.t •· Q

Q)
:,
:,
I •
. ~
(1)
~ Q
 <ii
C
C
192 Labour Law • J Defiohioo o( l odv1tri al Dispute 1P3 "'
/j,
of various $U?iutory provi$)01u of tJ1e indvJJt.Tial law, o ne counay, woda out ,..;1,dy ..j«t tlw a,g,_,,., The Apa Coon E
of whic:b is t,he- M.a.tcrn.ity BcncJi, Ac:t, 1'61.)
ln this cue, the female worke rs {muster roll), engiaced by
ci1ed the cue of J.K. c.lfM SPJ. O' W'l- M;Jls C. Lu. v Le..,.
Applltllf TriNOMI tf [,,JI" (J\lR l964 SC nn,
where ll was
"'
(.)
.r:.
M.c.o: r.ai$ed a demllnd for gram of m.uc.rni1y leave W~ic:h
•-.s mad, ...ibble ooly ro ',qub.r' l,molo _..,,., n,.;, as,
obsav«I by Gajendng,,<lkar,J.:
•J•dttJ. th,"'"¥' ,j,1--/j,,trtin N I # ~ ~ na/J ,u, itrJgml p.1'1
-~3,'.
wu espou.scd by the Odhi MU-nicipo1,J Workers• Union which f( i.tUllllfNJ It,», IMI ft n11/d ,,_ id/,, for •'!} pa7!) lo l"l,glll t&,1 'O
G)
contc.naed t.hal' such fcnuk work.en ru-e made tD "-'Ol"k in the ; ~ . , . _ . , . - . . , . ,,1,,nJ,1 ~ rbt dliw1 ,f Hddjtutin n, C
~fary,.-,n~tbol,cb d,cy~ ...... itcd"""""
:he dtt,J/i'fl M11) i11dltr trvl di,,p,,m. 1:bt fHttp/ ef nfUlj,tstia ii trtJI • ~ C
work 0£ perennial n;nure. °Tilcy h,wc to work w:ry hard i..n
corutNCtioo projecu and rnaintt.112,.tl,C# of rOtWb indudi.ng the
~,. o,i,-siJ11J. w pull.11tit-. 11ad iJ 1't>I t:Hfi• 1d If U1$1./,,;,,J ~'(#/Nit
--. u, ,-;i a --,,nMAAN. 1, uJ-Adnl• ti# lwit ; - i. _ .
"'
()
CJ)
work of cfiuing tn.oches, ete. but the ,C orpor.n~n does not 14,,.,,,k diJpltri11.·u 11,i,I lMfJ•ft'lin: •tflll'ffhJ,11, /11 IWk,u wllh i,,J,,rfl'N/
gr.un any m:alcmity benefit to chem wh~ arc Nqujn,d to work Mollm. u Jqq '"'' · • I tl«trilfdln ~ d.d "fa,u ,. .)i,tkl
even during the period of rm.tUtt p t t ~ ~ f,000 llner the .s...,,. •.,..,,-.,, ... u,µ, • ...s,,;,pJ_.,;,_,,,,,_-
<leln-.ry of the child. Th• 001w of m>\ernAY bcn<nu ..i,a,;,, A jun soci.ll o rder e&n be aciueved only • •hen ~ualitiu
"3 rteg:11 ive attitudi: c>f the Corpor;aWon in tti!pcc.t of a bunw1e are oblitcnted and evuyone is provid.td what Ui kplly due.
probltm. Women who c.onstit\Jte almO$t hill of the ,cpettt of our
1t was. however. contended oo ~al£ of the C.Orpor.tt.ion ~ have to bo honO\lt'C<i and t re.ued with dipiity at places
that a:uch wcrker&. engaged o n mlU{tr roll are ffi&a;ed only where they work to ttr"G their livd.ihood. Whate'f'U be the
on "-!f """°''
Th"" ,1,,y..., -,..,uued ro bcncfu.s UO<ler the
11.latemity Benefit Acr. 1961, and, the Cenu•.1J Civil Suvicc,
o.at\lf'e of their duties, their a•ocatio.n and the place whtte they
work, thty must b,e provided all \he £.cJliUCS eo whlch they are
(Leave) Ru.IQ, ft was Wo (X)utcnd:d Lha, they were _, entitled mwod.
10 ,ny """'61 undo, d,, Emplo,=' Sw, imun.a« Aa, 1911, T, ~ , • mothd ii ~ 1110.,t 11ar11nl ph,1111.1tHM1t J,. 11,,t. If, ef a
T he Indunri.d Tribunal inucd • dirc:ctioo to tbe .,..... w~ u 114l#d 10 fitdlilllh tbt J,irtJ, ef dJIU 111t • ,,..,.
lll.t.Q.&;,ement ol the Municipal Corpon,cioo of Delhi to t'Stend ,... ;,;,,,.,.;,,,,lk-;,Jr,,,rlw• .. - - " ' ~
lhc beti.diu 0£ 1hc Ma1t.rni1y Bendit /\t;t to such mustt"NOll flWnlt JJ,r a,,d ''""' na6t, 1h, f>/!>•11'cal 41:ffeniltitl ...wth II 1111riulfA
ferpalc c mployeiet who were in c:01ui.nuou1 S<:.rvic:c of the wmaa wtJ1tldfatt 16 P4r/tJn114& lxr MIIW 41 tbt wrltpl,m MQI ~~
m.antgemcnc for threto yo.rs or more a..od wbo fullilled the
condltiom ..et out 1ft Sec-.. S of th~t Ao..
• lvl!J, ,. ti,, . . . . ., .Ji# IN.IT. "'f> "" d,i!J " " Wttb. Tit,
!Vlarmtt{Y 8uufit A11, I~6 f aimr la J>t"Of.iM 11U rbm fadllrit1 to a
It was ~rgued that .since tht: provisions: of the M:m:mity ffrlt.i,u wttM:Z• ;,. • JiJ.•ifoii ""'1111.tr,. 1btz: ## ~ .-,o,t#t Ult ltiJt#
Bcwfit Ao. ba-.e not been ~pplicd to &be Cotpontioo. such a
dittaion could no, have been issued by the Tribu.n1l. Tpc
,f ~ " ' • ~ ~ ••«MV ~ 1k fnr ,f
rlttlmi:(!d for fantil 11/lw,rt dNrilf,!, 1/Jt pn-4r P,rt-Jf11IJJ JN,riod
•••&
Supreme Court hdd that this is a QJrroW way o{ looking at Ne,cr it wuargu,d th.i dw ber.ew oonwnpl.~ by the
the problem wb.ich tacatially is hwnui,e in ~1""- ~ -anyone Matem.ity Bendit A.a a.n be.cicunded on.'y to w oritwol'IV:n in
~¢q1.1ain.ted with the "Working of the 0>1;1'1itutiot1, which a.uni ~ui -mc:1unry" and not to the mwtw-roU women e.mployeet of
,u provi.d.in.g ,oci:J aud ccooomic jusi.Kc to the citizens of this d,, Mupicipd ~ ~tothes.,p...,,.Court,
 j

. ! ...
l
'
G-.
'194 LaboU:r La·w - I
." Definition of ...l ? d ,.t~-_i.al DbJ>u_te~ 1ff 0
. .
be remembered that thC ~lulll.cipaJ corpora~o~ Or
- i:t i.$ t0
,L\
\V/
• > - ,, •: I
to L?U9~e ma~etO:Jf>:. eave w~. ~- OT"Wlui ..:.
. bl '-~-~--;.U'
e
r
... ~oirds h:ive :1.l~ ady been held tO ~ ; ~dU$1.ry" wjd,i in1 t\,e- comparable ~ Senefit.S withou~ loss -Qr
m eaning of the I.D. Act. In &fW ,\1,mkipt.1.ig V P..R. A{Ni;br,;ru.. forn1cr cmplo)'lllC't.f-, .s e.niorlfty~ social
(AIR 1953 SC 58) it ~'1$ obtervcc::I that t~e_ Jt)Ullicipa.l aaiyi~y
wouJd full within the expression "'ult~k:iiig" ~d ~\ s~
-al.lowances; ,
·t..:.
~ <"<ti
••
,, • • •
'\ t;\
. d7•
{c:) to enoo-u:r:agc tli~ p~i.sio.o. of the . t l ~
'3/0uld be an i.,,,.duniy. In.&rotfJ'IJq~~ll,1!'1tkr}xll{Y \' ~~~ ' supporting sotla.l.$'er.{iCes to enable Paienu to @
(AIR 1957 SC HO) ,he c,,.,, obs<rv«I thtt thoie bra•ch~ of co nibine ·farn.il:,~1-.dpligatioa$ , Y;<itb · wor~
Work of the municipalities ·wbit h cOuld be regarded Ps ~nobili~ '-"'\~°q,ation .,-~lik, -'
in €)
Aiwogo~ to the carrying-on of a u:a.<L: or ~U;S~!' ~du!d.P.J pmioibr <l¾ui11 ~ g the ...l11isb-,,
•iric:fustry" and the dispute ~ce.n·the IDUDJC;lPalities and~ and. dcvelopme.llc of a network of:chilckue
cmployc·es would be trtated as an "lodwstria] dispute... ;· f.cilitics;
~ • • • "'1i,t:!,: •• 1', '
©
• According to the' Supreme Coun. fotel"[l.;'.ltionally,.t~e (d) to prov.id.e s ~.PfRt«.tion to wo~ during
sebi.irio is also ll-imilar. The Uttkvnal D ~ n ef &1'Jf»f ~ihff,
..-..-:lOopted. by the United 'N;i.tions on, 10. !2l.19d, s~ ia.~~tj~~
p regtuncy Ul , t}"P:ft of work pr~vcd to~ <ilt
b.ann."ul t0 them., . I •.
the univ<J,.J trunking w t lwnwt ri&h.;,are'supnmc =I owjt
to &e prcscived at all costs. -Tha ~:a's 'ronO wed by a (czi,t!S ~
• I ~•
.According to the Supreme Cb:WT, t'1ese principles w6ich are 0
·convfflcioru. On 18.1.2.1979, tlic:!;tlnit~Nations adopt~ die aintai.nod in Art~e uJa~ t(, be iad inro I-he co.o.tracr·o1 t ,
"Comffltion on the-E!i.mi.n:tt.ion of llllj'onns b!D.is<:rimmatiQn ~ ~ n W M.C.D. .uJ tlie wOJJlCnemployees (muncr
1
,- d
..r~a.il\St Women. .. Anic:lc 11 oI t}ljs Cd hw'.atlon Provide.ifs roll); aha so read these employ,,:, ~ ly beyme 'enti!J_.,d .
undci, - to all the bene-fiu eonecivcd undct the Maternity Btndit Act1 0
T~ workm~n oi, for W t matU.r, tho.tae employed on' mu.st=
'
Artkl• 11 ~ rou for 'carrying on·M.C.O.. ac::c~ifS would, th.erdo~, _b ~
1. Statcs/pa.nies,ball ~call appropriate rue~ .t... "worlancn• ond the di,pu«, betw~ thcm and th.e ColJ!Omon
., 0 ,.
' to elim.im.te duerim.itution 11.,giliist women in ilie *ould have td be tackled a$ an ..ind~ al dispute" in: die Ugh.t ,.
(/) field of employment in order. to. e-wuct; ta'
oil Of V;uious $~tu tori :provi$:i.Oni o f the'.industrial la~~'one---o{ 0
~ basis of equ:ility of men :a.t1d. women, ·the same. ,;;,hich is the Matt.;m.ity Benefit.~ l,;.1~ 1.]
';.. ., ..
:,
:,
rights, in particul:u... · Jurt1diedon of C(vll Courts lmptlf>dly,.Barrfll .r 0 I;
(1)
C.
2. 1n onkr to prewnt ~ t i o f t a.gawt wo# ,
on the· grounds of.marriage or n_ utemit)'r 1.0d. to
, •
In a,,,~r T•kanmt•Nw,m v .M,,•i.iyl
Ir
c_,,,,.
ef A '""""1i,,;;(AI&
·

©
2002 SC 997), the wofkmcn of •4\,r..pondent COfP05"tiO? h,d
~ Cn$UrC their c:ffcc;tivc right tc:hVork; Swes/p:aitie$ challenged orden: of dismisw/rem.a~ from. $en•i« ·mCivil Counl ~
;:;: ' 1r
:::,-
()
sh.all rake-appropt'Ute.~:
(a) to· prohib:r., $ubjcc:t to the imposition ~!,
whjch :o/:is'co.ntw.°ed by the respondeor.lf ~ held, b)'~':!ie Sup~~• ,
Court ~ t the jurisdiction of the civil~ \ln was .i.mpli~yJ>Mrcd m .. 1
e,"'
Q)

3
(/)
sanctions, dismis,"1 on the grounds of p~y-
or of matci'n.icy leave and dfscriminati® : ih ;i·
these ~ ·a s.the dis~l'ttnowf fro~ $.eht'ice and_!~·
o.-dcr bdng "ind"!'ri>I clispute", <lie •Pi>ri>e'ii.te forwp
" y oE such
such relic:{
e.
(") dis.miss,::US on the batls of mari~ uatus_; ' i. was cl.ne comti.tut~ uodtt ch.ie LD. Act. Sim.ii.arty, held in iluft~ ~ 1
Q)
:, bi:n.w c.se (1989) !J sec 582. , · , . ·' 0
:, - -· ,- • ' l
(1)
~

t i~ I~
d

196 i,.abour Law • r
In ThiJ'Npalbir Ctt.o1-,,,ntiN Sl'Js?r Mills lJJ. v S, Simli,r_§Jm {2003) II
LLJ 2JJ (M2d), it was made de.r th3t m:1.tk.rs· of dispute between
employer and \VOrkman. odlcrth-n_n tli.e <.fuchaigc, Womiss.tl, rcm:nchmeu.c
<.1r tcrmin·n ion o( s.ervic~ are 1rd i(ldustri:u dispu te \l~dc.r Sec.. 2(k}. LO.
Aet.. T hercf~rc, remedy for such dl$putc.s fies in dv-il coun.
.
i'URl1-iER QUl!STI.ONS
Q.1. Arc chc followlna ' tnduwi.al Dlspvtts' under ,tho (.D. Act?
Oisc:us&.
( i) · 9ispute rai$cd by worke.fl o f o.n fndt1st,i;sl eS-1ablishmcn1
demanding remo\·;tl of a manager. •
(u) -Oispuie ,.;,c0 by all the solos ,.,,,.,..,,.,;,., or , lcadi•g
shoe inanufolCturing concern 1bat ih:ey be g i~ n Leave Travel
Cqc,c:ession.
(iv} Workmen in a textile fal::t.:.ry d~aodi'3f, promotion to thi: higher
",dre aft.er n\'e >·cars of cQrtti/luous service,
{v) To protest a~l•\St lhe unfairdlsmtssal oftltree Karumc.l1aris Qf
AO 011nk. tho Kar.smthtiri~ ~rco 8an.k in 1he san10 eity l';liscd
o dispute and went on a strike dcmandiog the reinsta1cmen1 of
I.be dismissed worf..Jncn, fL,C.ll- 9J/9Jl96; C.L.C.-94']
A.t. lndu$lrfa1 Dispute:
(i) It is 1101 an industri:tl dispuce. Any officer o, member of
tlie managerial st-aff cunot aau,.;:•er tho description of
"workmen' and c:1.nnot, therefore, <;ome within the
expression "'any person,. in Sec. 2(k) .and no ind1.1.rtrial
(u) ,i
ditpute c.1n be ni.sed in respect of them.
i, -an industrial dispute as it concerns the te rt1:u: of
ernploymcnr or conditions of lalmur of workmen.
~
(I)
C
Oeflnltlou of Jnciu,trla) Dispu te 197 C
Gu) I, »an individual dispute, but could become an iadusu-iaJ
"'
<)
(/)
dispute if espoliled by subtt-antial nun,ber of workmtn E
o f t he. cl.au tO -whii:h the aggrieved workman belongs. "'
(.)
(rv} [t is an illd\litrial dispute is it concerns the 1erm$ o f
employment oi conditions of ~abou.r o f workmen.
(v) . It is nH an iridustti.tl dispute because the management of
CB Bank cannot gi,.--e ui.y re.lief to the karamcharif of AB
-
~
'§:
'O
(I)
Bank. The workmen can raue an industrial dispute only as C
C
reg.i.rds pt"rson.s With mpect to ~hom the employer is in
:a position to give relie!. · ~
. (/)
Q.'2. Oittin&uisb between [ndividual and industrial dispute..
. (D. C[.-20/2J{C.l.C.-9S; l.C./1 -93/951961
What an the cltCUm$W'lCes under whldl an ' lnd(V$¢ual dispute·
m:ay become an· ' industrial dispute' ? (D.U.•20/0/20/3]
"An mdividual dispute is not an ,ndustrial dispute unless ii
directly aRd , ubttaotially affects ttle i.n1cres.~ lhe otheror
workmen." Critically examine I.his Statement.
A.2. lndi~idual Dispute v Industrial Dispute
W&tbtr a P11~'t lll(lri:,.,no,,. who ir qggrim:d ~ ,a11 M rio1t of tht 1Af1/H0>tr n:u, n.:i.rt
lnd,mriui dJipKrt:
A disput, bctwttn employer and a su,pe wo,kcw, is an 'inclivulual
d,;spute.' O n the question whether a disputA!l by an i."l.di.vidual workau.n
will be ao industdal dispute, there was a greu dea.l of difference in
juciici21 opinion 3.nd_ broa.&y speakutg. r.hrtt di.ffcreru vM!ws ptt'Vail.ed.
mmd:r·
(i) a dispuoo which ooru:::cms only d:lt righu of an individual worker
""'"OI be held to be an industrial d:sputc.
(a) a di.sp-utc bctW«.Jl an employer a.ad a single employtt can be
an industri:11 dispute, and
(m) a dispute between an employer and a sing.le employee cannot-
p,r St be ;1,n Uldl.Utrial dUput.e:. bu1 it may become one if it 4
taken up by the union or a nwnbu of wor~
 0
'
t, •-:.ym,'7-~1·. . .:,;.l:
l98 , . Labo u r Law .. J I Definition of lnd u a r ial Dispute 199 0
, Sec. 2(k) Of tbc Act ·, ~ks of ;i; displJte bc;,,cen cmployf r and • cbu CB.,.;.i.v u,;.,, ef ,.,,,,,,/iro
"'v r1N· J ◄;16"''"''"'
. w,.,,-(1?6l) llllJ (SC).j:1
0
.w:mt.lW~ i.e. p lur.al fontt b llS been uttd. Belo.~ in.tt'..rtion of Sec:. ~ A o! wn;~ i_s 0.eceswy ~ th~t tbett ~~t?e $pine expressm.h of ..,colleqiv, ;
die.Act an individual dispute could not j,;,-.tt be 2.n lndi.utMd di:s;,ti'te, will" ·of subStanti.'Al or appttciab1e;id.imbCr of workmen taking.up the ..
but lt CouJd bec¢m¢ oM if u.ken u.p by the.l'nd,;' Uniou o f-a nllmbu b,;\l~C of the aggl:'ieved wor~h [a~ P. SQf!l,'1 S•~ill!WM ._. )--eb!tt,,
C.•" (! 970) 1 L1J 558 (AP)~ '•·lJ "'. 1)i- ":
1 •
0
of~.o rkmen. T he pro,..isions o f d ie.Act 1~&1 tO the coodusioh that
iu :tPPlikbility to M individual disp~·~ Opposed to di<;pu~ invol..-irig In rl?orkm.m ef' l11dia11 JS>g>rfJI NUl'tptJpm Ltd, v . llfalf~Ht< o/
a., gtoop~_o~ workm.e n is ~cl.~~d. u~ess it acqWJ'es the gf.nerat htr/f:ut E:>tpnn Nt,wpapus (AJR 1971'.1 sC~p7). a dLtp~ie: ~dacing<"tO t"\\'6
th.ar;.cterlttlCS o f ut tndus:tnal dispute VlZ. the wor~en as a body or wo.r~m.en of lndiw Exp~ N"e~ip1pen ,Ltd. wJ es('ouscd i-he t,Y 0
a cldiukh.ble section of then.t nuke ConUllOn ti\1$e with \h.e individual Oclhl Union of Journ~ists Which was an o utsidt" wiion.. A bour 2S
wof.km~ v
{ N ~ l.JJ. S1an:1,,-;i,,,m~.1, UP. ~\lR 1957 SC 532j, f"'<'°' of du: working j~ .ol tbc Indian Expre# ..,.,. m<mbe.rJ ,,
G)
~ , , :fhu, a dispute regarding a sit,,g_le workman ~ ~ b«ptite. of Wt t.1.nion. Bur there was no Unioi, bf.the joumalim'of die Ind.i:aR!
U?~af'dUpute only if it is espousecl by ~ ·group of 'IVQ.r'~•tif tb;t . El!Pr,ss, It was held tlut 'the Delhi Uni<>n ofJouroallits could !i<-sartl·
c~lWiment. Only a collcaivc.dispu:u: could conscinne·an ind'1'trial io'Lave a rq>n::$Cnta:ti~ ch:u-.ietet: (ild di~'WOTlw:ig jour~ ·C2;Uploycd-:
dis·p ut~ buf~llcctive dispute does'' riot ~ $at the cUsp~te:.4hould in lmiAn E,q,= w thedispure w.s th~innsformed in"'"" i.adusunJ t
citbe.r be sponsortd by a reginc.ri::d µ nion oi- that all o:r m:ajo'f'fof ,
c.h~~or~n Qf :in indus.tri:d esubll,tu~ent s!!~uld,~bc- p:u-ci~ to i"t.
dispute. k 4 ..:f'
rs-,f{;'BU;;rv Kr;p. s....." AIR f96l.SC JCiJ. ! Sec,• l.A , ..-:-,.._ ·ij- ,, :J

:•>;e•.:~_:'~f only condition for an iqdividul.l cfup ure turning ~tq· an A, no~ above, thc.Coun.s leaocci ~P:r.'ow oE the view tqAt i.Qdi..~ f
~ dispute is W necessity. of conunun,i.ty ol,,~est ~ mun clisputn """1ot be comprehen~ in ihi bpressioo •~ 'dispute'
~xiir al the date of reference; the conp:'med W'oCknun n«d riQ~ be a , 3.$ ddiried in· the LO. Act. Ofttl'l ~ ·~vrdiotu sinmicm if09e OUt o f thii
mcmbe'r of the tJnioo [ Wutm, llfdu J.1t1.4-b '4. LJJ. v W1tttt?/ l1r~b ~ c~ /u,. individual wot~
;f pwwhed ~ !hi m1pl~r.ci-•
'lt{t11,b Co. Worl!m' UniJ11 (1970) 1 sec 225l+, On.et a di.sJ?'Ute Jialb~CD Lid if he was not a member of the.~ trade unloa, tbeJattef.l'
fu~ it will aotce.uc to be an industriol dispute because di, w ~ o was~ rducw,l tO C$pOU$C the (aU# Bf~ stny W(ir)qna.n jlnd'the
(/) W!t~~w r.hei..r happort afterwards {fP~J~nra.'i.stJ ef Hinb, Awrw Uldi~al ~ 4 n was wi~o~t ~ y . ~es ~ o lighiwbere . ,d
0 ~ Tl!, l[li,,i,,; Mad= (1960) 1 LLJ 228J.. Simimly,cwhcrc an .indJliH,J rhc recognized UD.tOn by devious means compelled thc-,worJanm to bC"
Q)
dispute existetl 'at the cirne of makio.i; o~er of. rcftrcnoo. this dispui:e i'ts,incmbcr bc.fot"c it would espc;,usc'th'cir causes. Thus:, a w2_rkmin
:,
:, .... ?OCS nOt cease, to bt so mettlt b~U$e ~P.utC relating to on.it one who ·was discharged, dismissed, retrenclit"d or whOi~ u.r:viees we~ 'Ii
(1)
ffltJ>lorse is ld't o._~, and tbe Unio~ ~b.ich ~ ,~ di1p~ce ch~ othCf"?lisc terminated was put tO {rt;11hardship wheii M: could not
C.
noc~t_Q. (CJ)l"QCUI; a panirular employee [Blw Lid.,v T6dr ""'n6:mc.of AtR futd $\Ip.port by ~ union or a.n appr t ~le o\lfflber io{ wQrlune11 t~ 0
~
;:;: 1972 SC 197SJ . ,, 1, · ?• keu~nltO.~.
~ ' L" ~ · • · • ·•1 ;,1,., ('..
. ~'.. I
·rJ
~f?,a
•
•
:::,-
()
·,
1
At t◊ Jiow many workc~ sh~u!d tsRO-µsie an i,ndividuJ Ji~putc
0

for it to ·becom.e an industrial duputt, there ts no i.odicacioo. in ~ Aa..

, Tbir m/.M Hlfifltt tyrr,11,g Wt1.J 111.l;elf ll#f~ef'/f, tht l.Js,i,/4JH,r.CJZ,,d SN11.'tJ,s.. 20
, ' '!'!'f f,tlryditnd ;,. tf l1ub(.ltria/ Difp,ltu rAfft.
JPl1. ~· .
d. '
Q)

3 U·m::
ii. iiece1~ that all the WQrluneri'ofa nbjo'r ity'o{ ~Y<U of In 1965, Th11ndustrwPh~f&.-ndme':'t) M,l965. ~ .
(/) tliit-sra~1-0foce.roed
11 • , • •
Ulould SU-.-
• ~
rtiiids '
- -v po
mi6r the....trullilid~
~· S«. 2A, ·w,hich tj:ads; •where a;iy employer d1$¢harges, d.i.s:mistc$,'."l
0 Q~u<c. T lic num~er of workmen niust" howtver be such as to lead
Q) ~ o r ~,t ~ ~ ~ ~ ~ o f a n ~ ~ w o r ~,\
:, · t0 2.n Ulfcreoce that the dispu·te is one which iiliea:s t.b.Cwor.k:m"C~ as any dispute o r dfkrc.nct: bctwccn.tba.~ workman ~d his ~~lo~~[
:, .. . ·f . ~
(1)
'
•t
~

200 L abo ur ll.aw - ,{
cx.'lrul((.1ed with, or arisint, out of, s.ucb d ~. di.smi~ reffCOChmoot
or mn:WUU<ln shall be dccmi;d co be a.n indwtrial dispu~ not'Witlut~ding
th a~ no other workman no r any union of wQrluncn i!:I :t p .!rt)' to the
cfupurc." . . .
Sectibn 2A e:une intO force on 1-12-1965. Sec. 2A c::i.n be trea.tod
~ i ,;a.n ,~-p1;,"""1,g,, to Sec. 2{k). Afcc,- thi$ ,u:, i.ndividual dispute even
tllough not $}'¢mored by other "''o rk.men or es'po,used by the union
wouJd be- ~~med ~o be an industrial dispute if ,ii coven 3.0Y o f the
~ t t ~ mi:ntt?llC'd_:m Sec. 2A. But whether a p ~ a r dispute amounu
to ~n mdusmaJ dispute h:u to be :is.eeru;ned with relerenc'c to the
p~i.ocipt~ lai-d down in Sec. 2{k). So fur 2~ tl1e subject im~ter ol the
dlspute u concerned s«.. 2A docs not bring about ~y eh:a.nge. The
pro,·isions of Sec. 2(k) alone determine that queniori.
' .
Sec;. 2A t$ of limited applieati.on. It dOI:$ not declare rul individu.3.l
~ sp~tes 10 be in.dus.trial disputes, buc covers onl y,cases of discharge,
~ismu;sal, retret1.ehment Or 01hcr termination of ser,;'lce. 1f the di.spuie
t$ con ncc.:tcd wnh other manen (e.g. eorld,itiom·o£ labour) then it
would rulvc to .s:.ttisfy tbt: ~lit la.id down in jud.ici.al-decis.io ns. T h1,1:1 i$
tht" nu.n.agcrnent dco:ioc:cs a workm.:m, or withh~ hiJ .iJl~emcnt ot
reduces his rmk in the &eniorily list, o·r accords him other similar
o! ad-.·el'$C u·-eat.ment, any indu~u-l~ di$pute in $UC:h a case would h.iive
to be Atpported b}"' a ~-ubstantiaJ rium.!>er o f workmen.
Soc. 1A (os ame-r...de-d tn 2010)
In :;;c. 2A, rwo rub-<=icns (2) and ())'have be.n oM,iby ,he Industrial
Disputel (Amen ~ t) Act-, 2010, w,c.!. 15th Se?tembu 20JO. ~ 2A
oft.be principal Act shlll be oumbered as sub-sec. {1) thereof:
"(2} Notwitluundlng a.nytb.ing cont3.i.ned in Sec. 10, :my suc.h
work.man a$ i..s spcci&d i.n sub-siec. (1) ruay• make an appli.c:nion ~ c t
to the Labour Court or Tn"bu.n.u for adjudication of the dispu(<' rekmxl
to therein Jter the expiry of three months from the da.te he h:is mack
&. M~esl\; e.n ttr'\p.'OyM or a chemic.iii factory, ll ~ . As lhw. i. no 1r••
u1110n In Ill$ t,cso,y. M•11esh il'ldivi:lualy nil._ • d ~l• will\ tho manOQMMnt
•n
of lh• Hid f..actety. W iil '111♦ be t.,,uted H lnd.i•l,l•l di$i,ute,?
(Note: Due 10 Se-a. 2A, Mah~h cen ltldMclu1lly tt1iH a dlsPIJte,J
- •
~
(I)
C
Definition of Indu strial Dispute 201 C
the application to tbe Conc~tioo Officer of the. appropriate
"'
<)
(/)
Government for conciliation o! the dispute. a.nd in receipt of fud\ E
:application the Labour Coun: or Tribunal shall have powers and
jur iidiction lO ,.djudicate. u·pon the di.spu:te, a, Li it were :a dispute
"'
(.)
~
referred to it by the -appropri..ite Government i.n scoord:an« w ith the ,<::::
pro,.·i$iom of this Act atid all the provi.sions ol thi.s Ac;, $.Aall apply in ;::
rehtion t0 such adjudiciition as they a.pply in relation to an indust.ri:al ,::,
dispute referred to it by the appropria.te (fovunment. (I)
C
(3) .Th• application referred co in ,ub-soc. (2) ,lwl be made to \he C
Labour Coun or Tribunal before the expiry of thttc: ycan from die
date of dil\C'.harge, dis0li$s;al, m:renchment or otherwis.e terminatio n o f
"'
<)
(/)
$Cl'ViCC i:r.s ;pecified in su.h·--sec.. (l).•
·
Effect of 2010 Am•ndmtrtu •
Ptior to the 2010 amendments, n ormally only collective disputes or
dispu1cs raised by a gr0up of workmen could be taken up as iodW1'ri.aJ
disputes. An individual work.min could niic a dispute if it fell undc.r
the excep tional U$C$ lined i.n Sec. 2A: cases of dismissaJ/d.isc.harge/
retrenchment/termim.don only. For non•termination l.$$ues (like
bl& promolion/ tra.mfcr/ pt.mithm.ents n ot unowui.ng to termination}
Uldjvidwl worknttft couldn't raise a dispute it there are no e ther
workmen supporting bis case. But after the 2010 unendmem. any
per.son who is a .,,orkman employed in -an industry cu raise an md-JStrW
dispute (vi.a use of A.DR p rocedures like Conciliation).10
' lrADINO C.ASC:: J.H. JAOtt.AV v f0R8ES GOK,AK LT0.11
[(2005! l sec 2021
[An "'outsid~ U nion i.e:. Union of anothu establishment
can Sufficiently represent the c~u,e of a workman. It
would be open to such Union to take up ca.utt of the
workmeo if it is fUfficiently representative of those
workm«,,J
, o. l\tU>:lfwww.1.twtNO'l•r.M~·comme rc1a1-1•wr• "8Y"COnclNt1on~proc. .dl:lg1.a•
c.rlllca.~an.alysis4aw-es,a rt.P~ 3F6Gb65Xm.
IC l..0-~ 11. Oi$<lUP w1Wn1er tti,o dispute or• N'l9le work.m,n ~..o-ted by th• I.MIO!'\ Of
anou,et • •ttOliellme,nt bllo~lng to the nme lndUltty II an ind111t1191 dllwle 0--
nol . (O.U.·20111
 ~
,.
0
Labour La\,;, - I Oefioltion of ln<(n,tria1 203
' "I"'
. The ippeUant w~s employed by the i'cfpondcm.. He d.aiJned. (2) The d.isputc,bc~ ~ a sing~ ._,ork'ih:a'n a.nd, hi,
· ,i.t •· promotion as a clerk.. When this wa.s noCgtarned. the apJ}Clwit, em.ploye.r wis *~~ or espoused_l;,j• t!i~uniotl
•·:· r.l~ ian i.ndustrW dispute.. It -wa.s COnien.dC<f by the respohdcnt!
:o.
~r
Of wo~kme~ .O !:~~a--~ um~r w~!lµnc~ ih!
, ." tb:i~ the ind.iv-id~ dispute rai.scd by the appellant was not~' phn.se "the UQlOD"'~c.rcly 1ndi.e1t,cs the u.ruon t?,
.:,'•.;i~./,J~ industr ial dispute wjthin the meaning of Sec:. 2(k) of t.oe:- which the ctJ?klQ}'ee belongs even diougb t mf)'
ft.. Industr.i.J Disputes Act, 1947, as the work.roan Was neitber1 .. be a union of a""'.IDi.nor-ity of the w(,'rk:~r). ~
.. suppotted by a substanti.al number of workroc.o nor by aE
majority union. In the present c•~ the appellam wat -:t member1
' :> L.O
(3) The erui.blishmeo.tu~ ' · <• Jo ,
no umon 01· 1U own ana •
some o( t,he'·eil\plbyees had joio.ec:l the-Wliort ol
r of a different union, namely, Gokak:Miµs. Su.ff Union. Ttic\ a ca.bli..siimeiit be.lo~ging ,ttl the sarii~

=Id
Q,flOth~-
~ . 'obje~cion wanbat the Gohl Mills .St:aff,Union wa,s nOt,thcr,; > co ~
.
in~stry. 3'~/-" ease 1l. WOuld ~J~·•'?pen
·I n c .•c • :l .
unibn to take_ up the c:11.~ of thq workm.e:ii: l 1L ..
. ;.,,.j~( that in ord<r ~"' a d/•w••
rebting,to a su:gJe I: is sufficiently' iep°resentati-ve of i-H~se "'orlun'en1
iiwor]uoan may be ~ industrial ~t:>.ute,. it mun ,e ither ~f <kspite the faci' diai-~ union wa.1 not e¥cl,usively.
, • riP;Oused by the uruon of workmen or ~y l1 n~~ber o! f • Q{ the workmen....,W'Otking in 1-he e,i1'abllihru.cµ.t
., workmen. Putt.her. tbe dispute should ~ connected wiUl ~ ~ · O()tlCemed. - --~z." . ·,• ' !T '
• ., •~loymcotor non-cJJ1)loyment ofa W o r ~ In they~flt '
~'.. c~e.. the .iodividu·aJ dispute W\U espOvs«i by the UJ:Uon. And 1 •
The court also Pointed. o~ ifil.t
.~here is no p3~icubr f~r:~.
~ · ~.effect Nm cii~l:-lormailY~I'\ must exp~
. ~tithe ap~~.1.Qt t:'mployec raised the dispute a.$ t~. denii.l o~ j itsdf in tile form of a resoluiion which should ~ ,er9vea 1f
· -~ prOmouon. · !.
The objection in t~f ~e ~ tha~ .the uniO~ espou$ing ~·
in. issue. Howlever, the P.t°of~£.support by clie ~Ole?~ ~y
. also be avail.able in other wa>,. Jr would depend on the'f?,CU
the cau3e 0£ workman was not the m.2jority un.ion but that i: of each Case. The Supre~ c6ti'rt.' ,;_;d that tb~Hi~ Court . .
. ., olijectlon was rightly reject~ by the T~iburu.1 and wrongly
_ac;oc.pted by the High Court. T h.e Suf>reme Court held tbal
,
r should D.o~ have upset ~ tihding of the T rib~m·al "-;itb.o'iil ' 0
hotdillg that thf:_ conclusion wa.i i.mliooal or P.~-e~e,] .,
' ... the wiion"' includes: "minority uniolU".and "'ouuidc unio0$". ·
lo j,;,,d4mbd M,,t,n v St,u ,j 117.B.; 2010 LLR 23·(q)){ the v.:~r11man
0

(/)
The •UAion'" merely incliate$ ~ u.oion to which the employee ' cl-aimt'd that e.mplo~r refused bun dnployment aft~ hp ~rurnc-a,~o
~
:, bdongs eveo Jhougb it may be ·a uaion of a majority of duty. Employ,, d,nyu,g 2ny rcutioalqi~ o( employ'!=d employ,!;
:, ;.¾ employees io the establishment, o:r the union of another · wttb_ the worker did not agree_tO gi.te b~ e.mp)oy~nt. Employee $
(1)
C.
'~~ establishment belonging to the sam, industry. In the latt<rwe, application W2S allo,ved by the•TriWDill in d.ittcting·tbc M:~nM;t,tneot
'[it~ouldbe.Of)@totli.eWUODtoblkeupcau.scof~wofkmco'
~ if it is sufficiently repte$enl!:Otive o f those work.mc.n.
to pay R.s. 13,?°0 to the 'workcu.n\ whi.c~ wa.s di.aUe~~ !o'.'.ihe
;:;: employer in wiit petition Wt the ~en.net' itself V..:!' bad-JJJ ta°w,slllfe
:::T The Supreme Cou.n citod iu ~.vlier decision in ~.fh-Jm L die.re was no iJ:lusuiai dispute involyed in the alw:o~ of V'.illd ~im.uid.
()
Q) v D!Mrdmpal ~m1WJ(J.nd (S~:g411iiht), where it was held ds~t for' Held, -an iodustri.J dis.pure will comc' into e,cinen~e ffldW 'r~rence
. the purposes of Sec. 2(k), it mu.st be'ihS--,;,,,n th.at:
3 -ii.... • . "'"">, . . £or 'ildj\ldieni<F can be made b~ t~ eppropriatc,gq~~.n;:a;, t~e
Labour CouttiO.r IodU$tria1Tr 1~ under Soc. 2A ~ th~ln:<fustrial
(/)
(')
Q)
:,
•, ' (1) The dispute ;, connected with the employment o,
non-employment of a workman.. D.LSJ)"tes A<:t. .i 2.
' -' 0
:,
(1)
~

I 0
 ~
(I)
2()4 Labour Law - l
I
Q.3. The Municipal Corpol'3l«)n ot Delhi runJ somc .school$ ror tbc AMIT-8604000350
C
C
"'
<)
(/)
~e1,etit of lower .seclions of tho sodcty ~j,ere no tuition fee Is
chJirJcd, A pan from: ll,e ;sbove activity. ibe Corpornlk>n also
E
perforins certain othtr functions like pro,.•i.dil\g t.raru,pprt, water "'
(.)
~
w w ly, oli:c1ric supply, etc., fo.t which ~· p;iyment 'bas to be .8 .<::::
mad e by lh-e. p ublic:. A d iJputC arises re-g:srdUJJ ,he W\lgcs
Strikes.and Lockouts ;::
bc-1ween the ,eacbcrs or tho Municipal Schools at1d the 'O
Corporation. D<> you think it is an lndt.1$11{111dispute? Discuss. (I)
C
! C.L.C.- 96] C
Expl3in whet.bet the dispute bierv.•i'lcn~rhe m-:in~~tnt orschool ~
(/)
a.rid a ,~cher t d ati11s 10 his dismissal ~ an ii:1dlJSl:ria.J.di.sputc?
The 'right to strike' b y workers i.s a recogohcd weapon available to the
A.3. The Khools run by the municipal corpontiob are a n • ~ •
[D.U,•WJJJ
work= <O ..,.ile thcir<!ilf=n= w;,J, the __..,,..,.i a<;l,;...mcn,
of their goal. h is adopted as a meut to force the employer to
~See Bm:!'-1/m tm11tr Slif#I~). However. ihc t ~qlet'$ working
e.nfo roe compliance of ~ands made by the eniployees.
~ sclt~ls a.re not 'workmen·' {»!A SvMf!'J!itbolc~se). Fo r all
tndusi.n'll! dispute', die ~ -ies to the ~])I.At :should be employer In tr.du,. un:i;ike l!.S.A., right .io nri,k.e. ii n0t expressly recognikd
and. ~·<>rkm.en and the dispute should be connected 'Vnth the by law. The right to strike in the indiao. Connirutional set up is not an
('mp!oy,µem / noa•c:mploymem or the tenns of e-m.ployml',nt absohm right bui it lk:,w, from the fundamental right to form Uniom.
or wit-h the conditions o f 1.11:>ow- ofa.ay pcrsQn. A number Qf restrictions ue bidclown by the lndU$Uial Di,pu<es Aci
on the right of the work;en to go oo n:rik.e.
T he cxpteu.ion ' aoy person' mean:,: that me Pct'$0n· nu 1y not be a
workm:i.n bu.t he may be someone in wh ost" erripJo')·meDt, conditions
Oeflnlt1on or St1'1Ko 1
?( b,bour, etc., the workmen as :l cl2$J b;avCa true -:i.nd ro.b$tanci.a1
1m~re$t. An industri:tl disputt! nQ! e~poused by others of the d~t,. t.o According 10 Ludwig Teller, the wold 'nrike' in the bro,d ,ignificame
which t.he :i.ggrieved pany m.\y belori;. is: not an ' ilidustrial dispute' hu a reference co a 4ispute between an ttnployet and hi.s worker, in
(U:.-c,-4,,1,,,... ef ?1mabi.-J;i T,a Bllafl! c:a;,e). the courst> ol which thett is a concerted suspension of work.
Ju Lhc pn:scnt cast, thus, du: teachers wruwJ raise an industr ial In tbe Webner's Dictionary, 'strike' h:l.$ oe,e1\ defi.ned at 'llthe act
dispute. ! h e ';orkm_cn ol s~ho~ls or Q( the murtic.iplil corporation of quitting work done by mutwl ~ by a body o f worktne.n
;li$o cannot r.use :1.0 lil.dustnal dispute in respect of demands of the. as a mews of enforcing compliance wi th ~ s made o n their
t~:1Chen, as th.e workmen do not have any dire<:t and .whsr3.ltci2l interest. employer; a stoppi.og of work by workmen in order to o~ or resist
(i.e. community of inte:res-t) with regard to it. a ch ange in con.ditions of tmpJoymcr:.t.'"
Section 2(q) of the Industrial Disputes Act, 1947 defines a 'strute•
as~ A cessation of work by a body of pe.nons employed in ~ny
industry actio.g in combi.natioo, or -a, c:oaccrtcd refusal. or rcfum ur.der

1. Expla i" ttlo do.flnttlon of 'Strike' undof See. 2(q) of the 1.0. Ac:t. 194T. (LC./t.1131
120,1
 •.
f. • ~
296. . .
Lab<! ur Law • I ·l' .$trikes and . i.,o.ek~ou ts ~
• :-"'I
'•r ,. .
~t cJ;
':I common uodenta.nding, o{ a.ny number Of pet$0m who arc 01 tiave of work w.1s a coocerud act.ion f&r the eofor~in,i-o! 1.n indutt:ria.J
;¾ :bCC-n so C'mployed to concinuc ,o work or to llcoept ~loy:JJlCn't. 0.
-~,~
~ l\.ctord.i.ng to the above <lcfinition, the ~s:-ctatial ip.gredien~, tf a
.
denitrid. In order. tO con.nitu~ -l ~~ c there n,.~~ ~e so~ ~rt
defiance of·authonty, The purp~ bihib'.d tbc combmed 2et10n u n~t
material wider thi sc.hen\e of tht ,h.?:r.;,· :~ ·
~i
O·
' ,''
©~. . ,
; • • '1"" ~----~-.
A con~ne~ refusal un~ei:, a ~C;'mmon uode{ninc¥ng- o£ an)'.
t1,' 1'
'
n~ber of employees to ~ontin~ (O~Ofk or to ilo¢pt" eroployiiicnt 4
fu$;- C~tion Olworkot'ttfu$2.I tOdQ wOfk in.aniAduruy by~c
workmen acting in a body or combii:iation. ' I constituu:s $1:0ke. U ~ ..common iiite:u.tion" on a n ~ of 'fl'Ol".lsnicn
is ·pro~ it would o.9<t amount tcj Strike. The strike astde!i.ned can also
~(ii.O A CO.n«tted action, · r
j I• ~ t:o~~ce once th( work is returned ibl.it liJter on· interiupted ~11; , ,
· Q.v) The rel:i.tioMl.i.p of cmploymenL P:!
noppcd by a com,bin~ actio.A the ~orkme.n.
Tbestril<Pmust be in >n 'induruy' ~ ~ niewng olthe'.Act.•;,t.., " • The ddioit.iQO tkd c.be word •petWOJ
empiOyttl' which means:
a tttjk~ hi me' UniYet$ity by the s.ntcl.en[$ or teachers oia strike:in.1: there should De ttb.tionth.i·p o.r: c'otttr&et of ernplo~JU bctw&n tfie
• govt:mmiot &pan-me:ttt ptt/~nn.i.og legal fun:cdo.;.s'of the St.ite'' is'i..Ji« s~;tk10'g employea :and ·employcr: )UnJess there~i.rl::'a -ol;mnct bf.
coveri d);y' ihe-lhove d.tfinitio:t. ·· .' Ji · ~loyment-~een the itrikU'Lg ~Oru and the rnahagement there
f· :l'tbe'CCSsation-of work, rd'wal tQ Work or clisc()ctinuaiicn-of ca'.ll ·be nO .shike ,:vithin the me:urlng of Sec. 2(q). • ~
wor& in com.olnadon is cs~OO to constitute a strike~There ClMOt ix;. : J.ln SJ,mhnJ v~ Oirc.·v G11:lU~!a,,, M.C. {19>'t-) 2 LLJ 11s6.
lir~c ~ a single iq.djvi'dual. Ther e cLi belrio ti.'ri.1& if r.h~;l@'T~ !o(\ µ'I),. on the oomp,;~Y'* £..ilutt to OCdue •Mwy ..t.-y•~ ltuliw.y ihe' ltl
ce-ssnion o'f work. •T he duration of ceu2ti~ of Worlt is: ~teml. wot"kcn m b«a.pplicd for leave lrri held that there W"aS ao "cesia,tion
l Ct$:$atlon of Wol"k enn for lialf an b oiJr a:n.ounq to a $tr ike~ ivtett s>fJ"Ork" or'cqntt'tU'd tt.fu:sal;to WOrk and the ;tCtion oh:hc cmp'l~
)!bsetice frotn work is not u.ough and tb.eg must be conoe_ r ud ~tfsal to ~pply f o r ~ kaVe NI b.44-did. notsunounr to strike the decision,
· 1o~ or.k to conni.~ a itrilte. But joining demort'stfiatiOm organiierhil i, not $0und in vie,,,, of the{;i.ct that-all the ingn:<fa:nts of a~uikea:fh
cont1eetio,n. -with the strike or ¢akiog pan in die prep;aration of strike, Qft._~nt in the ctse; there was.a defiinc.e of the autb,ority of the
such.Ceor,d\let does net 3.mOWlt to i st~ikc. )1 ma~emCnt wh·o refused to decla'te thc ·d:ay :a, closed da,y t i ~esil-e'a.,.
If a 'number of employees st~y away from work in pursuincJ. of by .e ,
uie goverµm,eut. .
:- , ·
,.s • ¥:i:
•. €:f
(/)
: I.." • • ,;
-an unckrstandll\g. they ha,•e previously OQme ro. thue would ~ a
~
:, Sll'~, but if they kttp away bec:~U$e all of.them happeo to havo,b~·
.,.
When dl< =naga,,cm sub,cit:uo,cl w..lcly r=sy ~ giving
a .t1.oticc of chang! th.en ttlu$al to w~rk' 011 rubstitu.tod hOliday will n.,tj
:, t w.dde.tily ill.Mn ill by a wave of fCVcr, etc., there wbuld be no SUUe.
(1) ~ n t tO $1tik.-t~ As thett i$ ac ~ c.ha.og-e, rffllS:al to give work: in:
C. Whcfll .nwnbt,:o of employees abstain from 'OVO-rk tbe.tcff um w ~ P,='!'-'!"• of an ~ chang• w.ill lLIDOIUlt to lock-out. Therefore, th;
~
,utb '\\bs'tention amounu to a strike or not would be foun4'in the refusal to work qn t&t- subnitute,_d,~ Y, in this case clid'n or a.mdiunt, to.
;:;: intention bdti.nd ruch abncn.tion. If their intention is w put pttshlre nri.ke cmco V.J. v w,nt.w,,, (~972) 2 sec 383}. ., ~
:::,- and if with that intention thc'y ;tgrte lOgttber to, stay lvny from ~d1£) '
() the'.tt ;' !7~~.;,ou1d be:.
$trike [Son· 'RAmd)qrfrp Spi,fain.,. Mi/it V S1i:,tl)1 . !;
Strike: A Part of 8ar9alnln1 P,roc'!]s _ . " ...~
Q)

3
M,;;1,-,,, .(JR 19S6 M.d 241l
.
. '
'
! C:Ollcctive nrike!i$ e~nom.ic ~r e.si,ure·by ces,ai:ioJi of work aiai.l not 0)
(/) 1 t.i,tFupset, ~ ccsaati.on of work will.001: co:nte w_!thio t h e ~ excbinge of pleula.nuie$. 11 means"embirrassUlg b ~ [ G ~ SuJ l
(")
Q)
:,
' o{ th·e definition of strike unless it can be shown that tueb ~titl'n
, I
. ! ' ,~ • d'
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 II
208 LaOour Law • 1 ! Strikes and Lock-ou ts
Tubr1 l.Jd. c,ue (1980) I LLJ 137 (SC)), The ide.i hal bttti expl:ained b•)'
Prof. M-:i.rhe-w thui: i opcra.ti.on of the employees.
'
"'The.strike is itself a pa.rt ofrhe b~u·g:Uning~roee». k «sts th.c
economic bargaiofog power of e:icll sick; md ~orccs each co face
squarely chC need it has for the other's contribution. As the strike
prosresses, the workert' uviogt disappear, the u.nio~'lttlUUry dwindl«,
and ma.nagcmem faces n:tOUl\tUlg losses. Demands ate rempe~d, offers
are extended, and compromises previou.sly unthinkable become
accept;\ble. Jhe very economic preuure of the strike ~ the·cu;1.lyst
which m-ik,es agreement possible. Even wben no $Crute occurs. it phys
it, J:>.1.rt in the ~~g P~"'•.for the very p r ~ of the ha.rd.ship
which the strike w ill bnng will provide i pro& to com.promise.
Collcct.ivc barg:Lining i.s a process of r«ching 3greerilen1, and strikt:s
a.re a,n integral and frequently ncocn,ary pan of th'a t pro<:ieis" [R.E.
~<fathew, l.Ji,W)Jlr &htiMJ flNI rJ:., La»-, p. 563l, · · to conrio1J.e to :work i, a strike and if in putsuance- of sud, Common
Kinds of Strlke2
. '
There att nuinly !our kinds of strike {l) GenerJ ~ e {2) Stay-i.n, :iit
down, cool down, pen down itrikes {3) Go slow strike(◄) Sympathctic
,we. . lcga.l provided it is peaceful. The m~rc f.l.Ct that such strike$ may in
(1) GtMWI mik# -- It is one w here lhc workmen join t¢getbcr for
comm.on cause 11.nd sray aw;1.y from. work, depriving t..hc
etuployer of t heir bbour netded to n;n his f~tory. Colfoctivc
.iction on the pan of the \\•Orkmeo for' securing improvement
on m.;1ne..rs li!tt! bi5-.ic P<lY., bon\1$, leave, ~tc. is c.be priuu.ry
object behind such $trike. Strike by the Centnl and State
S°''.etnmenc employees full i.u 'this.category, Token strike, harr,slr
and. bmulh~ a.re vuiOl.1$ kinds of general strike. In latter types,
the motwc-..s are inva,-i1bly political and Ute public is
Lnconvenicnced to put pre5$Ure oo W.e· government to resolve
the tangle. These a.re, tbcr.cfore, oo-us.ldtrcd. H,ffsllttfM
A 1'oke.n urik~.• gener.illy pttoedN a gcnen.l nrike, Token ttflke U of
short duration - .:i few hours of the day, whose m.al.,,. object is to dr:t"-'
::I, [i11pl111" •Go,sbw', 'Stt)'4r'I' Md 'TOOklWln' .Sllik• II) {"8 !i;hl 0, judlelal d~lon&-
(L C.(4'3)
~
(I)
C
209 C
the r.mcntion of the employer by dernonstratu'lg the solida.rity and co-
"'
<)
(/)
E
(2) Sta,)' ,R. Sil dtnPx, Toal-dmv,r m,d PttMN/wtt ~trii:11 - In ,ucl ca.se5,
the workmen rq,ort to thci,: duties, occupy the premises but
"'
(.)
~
do ·n.ot work.. The empJoyc:;r if. th\1$ prevented from employing .<::::
other labour to carry on hi.~ bwines!. Where dismissed ..,Ork.men ;::
·91ere. nay:in; in premises aod refused to leave them it wu held 'O
(I)
not to amount to 'ttay-in• strike but an offence of criminal C
uespa$$ (My,()rr ,\frKtiltn:>• Mftn. v SUR AIR 1966 Mys 5 1). C
Factory workers1-t:iying inside cbe premise$ and rc-.fusing to ~
work is 11lso knOWn a_s 'sit~own' strike-. Like-wiu h,etor-y (/)
worken wbo refuse co work with their tools is known as
'tooklown' strike. ·
The Suptt'!" CowT 1w hdd du, refu,aJ under common undem.uuling
U11de.rsu.nding the emptoyees entered t h e premises of the Bank an.d
refused to take their pens io their hands that would no doubt be a
strike under Sec. 2(q) [A,,YPb N1tiO#tJI &,,It v Tf:.lil' Wwkm,.,, (19S9) 1
LLJ 666]. 'I'kus, in vic'Oo· of th·e -above holding. 'pen-down' strike i.s
~rtai.n ca.ses bd tO rowdy behavio~ or violtru:,e would not juirify tM
conclusion that even if the striker$ :a.re peaceful md ha.Ye done nothing
more than o«upying their ~u: during offk.e hOU/$, their particip~~n
il'I the strike would itself disqualify. them from cl.a.im.i.n.g rci.nstate.tnenL
(J) G1>-1hw Jtri.lu - µI it, the workmen come to their worlc: and
work ah.o, but with a slow spe«I in o rder to lower down the
production and thereby cause )QS:S tO the employer. h is h6/a
$.trike within tbe meaning o f strilu! under Sec. 2(q), but »
serious misconduct which is imidious in its nature and cannot
be countenanced [Satll' M11m S'«"' lf'or:41 {P) Lid. v Shtlbrr11i
Kha, AJR 1959 sc 923l !ft 3.,,,,.,
S•.s,, MH4 LtJ. v ;,,; 3; s;,
(1961) JI UJ 66<, i, was observe& It would not be far from
wrong to call thit dimonen. It is: one of the most pcrniciow
praaioc that disromeoted or dugrundcd workmen s.ometimes
reso:t. For the delaying produccion and tbercb)" redvcing the
 r:· ;' I+= ~l'7f·
r .: r , @~
.i~ ) •. . •:~· •
210 . Labou r Law - I r Strike$ and ·t ock- outs _ 211 (J
O~ut, the wor~men cl.ii~ co have:r~ouined empJOyJi an"d C~#- lt means "'to SUrr~und;, ~tJ ~~e ..t Or ·to:~ . .
'Ihe;e .. I

:,
'
thui to be entitled co full wage,. . ..__1 is a pby$iQJ hloc.kade of~· uri;e~'eii,;; by cncircletn~t or forcible ~ .
SJ·mj,.i,Mlf$ strih - It i.s resorted to' l.n sympathy. 9 f Otbt-r OCCUNtion. ft h:tS been held :i crimiri:uoffenoe. 2.nd is }!«_covered br . ·
Jt:riking workmc.o. to cxte.nd i;nonlwppoc:i to tbom..,Wru!n.ihc ' . .
th\ term 'strike' under Sec. 2(q): ·•-
. .;.. . ""}
•-• .

~
worker$ in c»ncerc -abs.tat thepuelvt$ -Out of sytDl)-!:thy fo
$OtnC cause wholly uo.rclatcd to thei.t~mploy1~t or ~iu irt ~0~11)1~1~0 of Str1kft! _(sec.· 22) -~t 1.\,.1~ -~ ." , \. • ·
~ to condition of employtnffit, of ~her ,:,;orkers in1J't:V"ic.e
'under other mao1geme.a.t; suc.h abteooe C01.1td not be &JJdto
Sec. 22 lay> clown >fflri<tioo,."l', ~• lf&l\t J,O,uik• in ~ P.'!i>lj;_ u<i}ity__ o"',,
~ e.g. rui.. uwpon, -~•."':':~•
-.y, ~ 119",_ tdee!io'1> o·
be strike the essenti2.I element of the intention to. iue.it
:lS etc. ~~ an ~dusuy declared to ~.t..~ AP}ihlic uciljty i,_c)'v1tc' by tli'e
again.st the nianag1!'ment is- a.fuent. Sucq a stt°ike is •~'fiuh]ijzbk gqvmimcnt (5cG 2(n), LD. Act], StriJ<e,in du, .soctioil isl not ab,olutely •
invasion on rhe right of einployen and is, cherc!0tt,•~ ~ · ptoJiilii\ed bu, certain roquirunen?, a:{'°•~ I fulfilled ~£'.th, W"""""-11" ·e
'i
The aun.agement would be .eiuitled to t~e. dl$ciJ>hriai:y &efott.rtsoru.tlg
-.• • '
oo· strike.
,
The
'
intention
-
o(
~"f, ,_
the l~ru:re
, ,I
i n~
_prqo;cding ~ meworkn,½ (o,.¥
aJ½,,,oe~~ ~ ~ .is secuou W:is tha~ then- sh ould be en~u_gb s:a.fegu~.ln-~ttcn of · '0~
_ or breach of co~dition of service (~l!dB,p,, v r.Ji,i1.f11a/ public utility scrvioes, asf?thcrwise jt,wo&d result in ~ l ~":> ,
tb·y,,w1,,~,,,/ 1
t"
_ ll· Cirpn, (1964)'1 !-1-l,,8}): • _'
1n.;a:44;ition to these common !orm.s
not~ • ,
o_f nrike,: a
.
-~.
few more iy
·i ·,~.
~e
toth~'gc0.c.n.lpublicand$0Clety. .

. ·~ ' ' -
, \' J
Sec. 22(1) provides that no pcndn employed in i,ublic- util.iiy,,
.service ;.hall go on s.trike in brca(h ofi:Q9,mn of serv'ices unlm: ·
©
...
-H .tllf4!" . ,__ 1 Th'.
JtnJU -
II ·L b ., . f H ; ,-;t,
u IS not re!.l . y a stn.:e . \It ~opt.ion o coc-zx.ive;
. . ~
. (a) .A no<i<e di ruif.e h., bee,,, giv<,uo the «nplO}'R• Tb, notice ) ~
m"&!liods tO gain a purpose. Fastirig,'" by }tself is neither wro~n.or. should be gi,;cn within 6 weeks before striking. Itl other wo~~~
~ni,l-41,tc U.ackr 1aw, but when widertaken to a poUu of dca:ch; it the mike.ihould t>tke pl'fl:,;%ithin 6 week, ofdi• giving of ' a
amOWlts to·an offence: But under cieroiln ·clrcun:isunoe,~ thi.s w~ h:'dd ·•notice
•
(After the:cxpiry of 6·weeks,
.,
a fresh not~I
it ~ - :1
• to ~•)trike'. In PipmidJS,ur.Mi/1, L/4. V(mir-W.rkmm _ (A!Rli%0
~

• (b) ·A miniritum period of 14' ell)'$ should b~ve ei})i.r,ed ~fw~n 0

~
S(t.12;s), ~ru.io key "WOrktntq wtrtt 011 hunger hrike at t h e ~ lD,e giving of notice at1d thC0datc of $trike. , '"'
of Managir)g Di.re"or wh.h the result that 'c thei "-'Ork.men ~Hf> did
(/)
oomc'to Wor)(. could not be givtii work. Held. wi~the oonce.rttd action (e) The strikq •hall 00< be ttsoried to beforo the d><e of>strike 0~
0 $peeif",edi.Q.th&notice. · ,"-,,..,:, ~.. •, '
Q) o~worltmen who ..,.en, on buU.g,et nokc.a~ted to 'strike' within l .,, , ·£; > ·· ' 1

°iiO·
:,
:, tlic1t1e2rung of S.c. 2(q). . · t (d) The strike l,haU not be r=ncd 11\ me period during wluoh an)':
(1)
• llv.,nl:, 4' :,,,N 11rih .. lt is rcsoZU'd to by workmen to circumyen.~ the. cOnciliatid,o procccdio&$ i~pending and cy"C.n after th.c ~
C. , coud\l$io4 of procttdidgfudo& 1i. further ·pe~ od of 7 <hr!•-~-'
..- pro,•is.ions of Jaw govero.i.ng ,heir service conditions. The e:mpidyees
~ tlnlS, ;a. strike can tjJ<.e plat,: only wlieJf> ~ks• 1:10tici: W been J t ~ i-
;:;: ~riali ,~ td fW;CSwhile f:C"~ ~ d~~ ~bids•~~~~!
:::,- th.er do not obst'r,.""e. Thus. stnct olm:n'an(_e'of iule:s results m slowmg
pubfid
~d ~◄ ~.-ys ~2veepq>ir~:l!t'e:r~rv.J;tg ~ •~otke. ib~) tmY perio! - o.•i·
()
Q)
d0im die tempo of work, cawes iiico·nvenie~'ci to the -a~d
embarrisameni to the employer. It is M !!trike bec:iu.s.e there {$Do
1$ ~ant to ga.vc tci the cm.ploye,; ;i.n.c;\_tbe tovcrn.meii:t--tR c1Cplore the

possi]>~tYof ~"·e~&-the ~~i AerJ!_l'jke comm~ ~•witb1n. the_!:"~

-·
3
(/)
0
$~opp~e, of work at all. · • • f prohibttcd penod s luw,J. Similarly. 'w-l:iett the wor~ Ohbe ~ :t·
11 p~~l.k,\itility set"ice, retort·e<f t6 •~e durU1g ·tlit'! pe~ncy of
~
@)
Q) 1 'J. •
:,
:,
!
..
. I I.
r
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(1)
~
• Q~
 - -~-_:,
~
(I)
C
212 t.abouT L~\.., • 1 J C
S t rikes and Lock-outs 213
!
conciliaiion proceedings, the strike would be fkgU (See Ra.mr.a~rC,mr
of the: Industrial Dispute$ Aet, 1947 $~ting that ..strike "A•ould
"'
<)
(/)
& S~r•C~. cue, kkr.v]. ! E
commence on o.r aher 2'4.3.1991." The respondents were:
it may be noted that if a lock-<>ut is ~ready in ~isu:12c~ .a.nd dismi«ed from service mer holding a discipli.o.uy enquiry. The- "'
(.)
employet'.s want to reson to strike, it is 1141 nc~ary to gLvc nouce as t..abow- Cou.n by iu award dated 2'4.1.1994 held that the Strike ~
is otherwise requi:cd. Sut the employer shall jend imim:i.i.io.n of $uth wasillcg,1 ' ,<::::
strike q n Lite dily on ..,,-hiclt it is decb.rocl1 ,o s~cb auth ority H may be
The Hith Coun allowed the Writ Petition filed by the ;::
spccjfied by the appropl'Ute Government d ther gcoerilly o.r !or a 'O
responde.au on the ground of ilon..compliance of-~ 33 (I)
panicular are-a o r for a particular das$ of pul>lic utility setVites (Sec.
{2)(b) of the Act. and directed rC-instacement of che workmen C
22())i C
with full back wage, and continuity of service. Learned Single
The notice o f stri.ke referred to i..n Yu.~. (1) shall be gi"en by
such number of persons to sucb. peNon or J)e1'$0Ds Md in ~ch manJlcr
Judge cook the view t.hac a copy of the strike notice dated "'
<)
(/)
14.J.1991 Wa$ sem co die Conciliation' Officer and, therc!o.rc,
~$maybe prneribed (Sec. 22(◄)}. ff on ~y day an employer r«:tives conciliation proceedings Were pending on the datt of cliimiJul
front any pcr.$011$ employed by him anr such notices as are referred and since the dismissal was without the appn:,V;U of the
to in sulHcc. (1), or gives to a.ny per$0ni; employed by him any s.u ch Concili:ttion Officer in terms of Sec. 33, the same was i!lq;al.
notices- ~s are re!crr«I io in rub-sec. (2) (lock-out), he sha.11 withi,n five
The ba.s.ic ,und oJ tbe appellant before ~be Apex Coun
da}'$ tbe.i:cof report to the appropriate Govern~t.or co such authority
is: The High Court failed co appr~te th.at in tftc al»encc of
as 1.b.lt Government may prcsaibe: tb.e number o f such noeic,es reeei-.•cd
a v.ilid ii.otic;e o! strike l!l icrms o f Sec. 22(1) there csn be no
or given on that day [Sec. 22(6)].
commencement of cOnciliadon proctedings i.o term$ o( Sec.
lr.&~MG Un:: ESSORPE MILLS Ll'D. V P~IOWG OFACER, 20(1). s«. 22(1) pTO~ibiu • strike in• public utility ..,,,;.,, i;,
. LA.e.OUR COURT breach of contract, without giving to ihe. employer advantt
((2008) 1 sec. 594J . ooticc of six: weeks. It prohibits nrike (a) within tbe notice
[In this case, tltc Supreme Court dealt with the case period o f $UC weeks., '(b) Wl,-hin 14 days of giv~ such not:ice,
rel~ting to isruanc-c of notice under Sec. 22 in rtspcct of (c) before the expiry of the date of strik:t spcdfied in such a
a Public Utilitv Service. Held thit the notice, if it is not not.ice, (d) ,during W pen(kncy Of my conciliation proc.ocdings
0

in confotmily ·wi1b the provisions of the. Act, then it is before• Conciliation Officuond seven d>)IS .Jw tbe ...,du,;on
nO.poti.cc in the eye o( law: · of , uch p roeeedin~. The strike notice i:ssu.e:d on 14-J-1991
.su.ting chat the strike will cOmmc:.!)CC on or Wr 2.f.3-1991 i.e.
Section 22 p1•uupposes :a. l'IOtici before thie workmen
~ 10 days notice) does not satisfy dte requirement of adwnce
resorted co .strike, ·rh~ notice- bas to be· given to the notice $tipulated u/s 22 (1), Therefore, it is. not a valid n.oti«-.
employer.]
On the date-s· o! dismissal of workmen no conciliation
ln this case, the: n::spondeni workmen employed in :1. public
proctedio.g.wu pending in the eye 0£ la.w. Unless a oonciliation
vtili,y service went o n ilfeg:J. strike fr<>m S.ll.199(), The
pJ'O('.eedi.a& was pending at t.be titne of dimussal o! workmen,
respondents, though placed under sw:pe-.as.ion, did not relent,
Sec. 33 will not be attracted and there is no quenioo of
On t ◄ .3 . 199 1 Lhe T.N. Panclu.1.l.i Worken' Union ser-ved ;t
seeking pertn.l.$sion o! the Conciliation Officer in such -a cue.
strike notice on r.he m:u-:ugetnent. purportedly under Sec. 22(1)
St.and <>f the rapoadeou, on the otbe.r band, is that cbc
appellant did not raik the plea that there was no conciliation
 ·rw►,..
Ol
~r
,214 Labour L~w ~ I. Strifes and... t:6 ck -o-uts ,Pl
• ••
o.•
• 3 ... ~ J: •
•· ,- proceedin,g pending at the time of dism1.u:J of the work.iri,c,g,. proceeidingi. According to th~ Higb.,'·Court the conciliatioo
' Ii is ~ted that there was dt1m1d t0ric:i1ilti8ri. BefOrc a lnt'n&f fr'~g is i~~ co_~;\vc S~~dmm~1u,ed"~ iltc date. 1
SU\gle Judge ebc primary issue ttVol~ (n, the ~cstion :is..Ji on which the nonce of strike t'n.cfe"i Sec. 22 u received by lhe 0
11Vhethci any notice of ooncili.atiof b:ad been ~sued f;y t.h'c Ci:,.\'ci!i:uion Of&e;, The Hig!, col/:it seems to h,,\e iosqight
Conci.lution Offi«r ~d, tb~rd'ori::. therC·was pe'ndeOcY 6!
COriciliation pr-oc:cedi.og,. . · • , ~
, tlic
of ~ cruCJ.:Al. wordJ.•not~cc
.
· 22.• Sec. 22 pn><Uppo,e, •
, o,;.r AAk~'o.r
n*f6"
'"' lock•out·•r.undcr Se~
the wo,klri,jj -ms!
J,
' Lamed Si.ogle Judge held tlf,,.,,,.. ruike aotiau J &, ~ The notice ,has to l>e'tt~vc.J to the emptOy'e[ . Su!Htt._ f
'_,r,,i,~••., ~under.Sec. 22, conciliation p(Oct:~g i s ~ co hate b~9, (6) 6£ Stt. 22 also has re!evan.te bec~use within: a F-nkulu
time period after ttceipt of th(faoHei! 6.nde.t sul,;'-se<. (1) he
0
' :c:ommenoed and no further notic:e•.frtim the Co.ncil.ution Of6a:r
is ' n ~ . Unlike in the e:ua of oc,Q ~ ·utility seN~ th~· · !hallrepoitto~appropriateG~rorco·$\ldi~riry; @
'concept of deemed e-onciliation li"-S~ statuforily provide& ~ a$ the Government may prcsdnhc. · ,,,...
• . · ~ 1 »,i-1 ~·; 1, ~
in·thC case. of p\.lblic utility service so thit "•orkmcn did no\. , . There is n<?ching in .~ - :21 wb.ich require, givia,g of
g9~o·n· strike during peNkncy of the concili:atiOo p ~· ~ O J l or,oopy of the notice u:nclef~ 22 to the-~ G
,When m:ilte notio,und,r Sec. 22 h.u.becn fli= the Coocilia~ 'bfffoer. Ac. the suge o( notiCC undcT Sec. 22 then is no t
Officer 1$ mlDdat-o rily required to b~ld· the concilia}:iOo &spute. • .. . ',;':!'~~· - .. . ,\ , .l Q
prooecdings under Sec. 20(1), The p ~ .o f provid.i.ng•fo~ n1e cbte of o.odce is: tt.3!1?,9.J -~ the propOSCd-s crJc
d~med eoncili:u.i.on it tO p~~.nt d.Woc:0;tion of pu~utilitr was op. Z'f.3.1"1. Therefore, ,onfll1J.t.e:ie of it; it:~,r,n be
~rvice. The object of etucdng.s-UlHCCS. (a),and (b)·o f Se1&' tre.ted to be a ~orice as contc!DP!atiid under Sec, 2Z(l)(•)~ , ,
22(1) is for the purp01e of c~rUlg: dut'worker$ do not ru~ .
ittco Strike and give 2 ch2nce to the Conciliition Offit!et td
Ob'Viou!ly, Six weeks~ time b"efore-die date o! strike,,._ not ,.
given; the ncitice given is Ml in"~CC9rdanee wii.h.(ll.,, I£~~ .
rnoJve the d.i,f;putc. ·• · -. . A,. notice i, given W dte employer, tbl.'!,.,c ffcetof it is t.hac;he is not
The Ap,ex Court observed: The
not&Ge was given amt aware of th.t ~ - · gs. · · • ~ ·. •
Q.
uncw~y;
e'
. t '
the propo!ed strike #irtbe strike. \be: WOT~ ~ Somewh t uniaccepcable plta"ha.s been t.t'kc~ by 'rbe ,
(/) ~esO.n.ed ·tc)striKc on 8.11.1990. The· nQtld" was· giv'en: ;b!f". iesponden.ts ~:tc in terms o( S~C} 22{t)(b) Jter l◄ days ofu'I,;'-'
~ 14.3:1991. Diffcrcru suse, enumerated byS.Ciio"Z?(l) ·ire!(,) givicg the nod::e~ the work.men_'bri·go on strike. itthfs·ptea ._
:, ·Adva.nce ooti« of 6 weeks; (u) 14 days·gii,i,,fo ti,. empioy.C:' is aco,ptcd ,ix jveck,' ~'."'• St•~~ i.n Se<:. 22 (l)(~'~o~ . 1-
<!}
:, .,. t he n ot.lee;
to CO:t$1uer . (i""ui1 t he ~OrNllCn
,_._._ givmg
" ' t he ~ottcc
'~•
(1) ttdundant ~ exprcsst0n •givui.g ~ ~nOtlOe" .u \\PP,::atmg in -. :
cannot go on $uikc before the indicated date o f strike; (1Vj"
C. Sec.-22(l)(b) rdc,rs to ti,. notice unde, Sec. 22(1)(•), !;)t,viously, 0
~
;:;:
PffideOC.y of any conciliation ptoeeedu:il$: · therefore, the lvorkmeo mm,(JI go o n strike wit~' six w~elts' •
:::,- I.n thl.$ c:ae. no c:oru:iliadon prO~Ulg-s were pe·nd~ ~ nouce in teni>! of sk. 22(1)(;,) .ad:14,d.1" thcrc.Jtc~' i.n tfrms
() . und~ $Uh-sec. (4). Sec. 22(4) states ~u pie '}loci~ of~'u-~ of See, 22(1)(b). . ~• , ~ -
Q) referred to in. rub-sec. (l} hu to~ given in such mattn.er ils The cxpJssioo ..such notice" rtfersto 6 week~'akvan.ce·
3 m2Y be ptttcri.bed. The notice :a't man~tcd widCt' St-e. 22 h:t~ ""'""'- Earller JEeg,al suikcis n<X rcinidkd bya subscqumt ,uilc,,
0
(/)
(')
to b~ given tO the employer. .~ u provided in Sec. 22. If sueh stancfis =q,,ed i, will,g'o-.g..,,, 1 !
Q)
:,
Leattled counsel for che tcSpO;dem relied-on sec.~lo• the ~ nr ot S~. 22 which, aims at stalling'•2ctjon fOr 0'
:, ~·h.ieh ~als with commencement ind condu.sioD Of, ilkgal ,trike. The judi,,,en, of tli, Higl, Coun is 5:\';.,;d,,J
(1)
~ • ;j
0

216 L;, bo u r L~w • I I
i
Ge11eral Proh\bition of Strikes (Sec. 23) i
The provisio m: o f Sec;. 23 -.ar e genc.n1l in n11ture.!1t im_poses general
rcstricl,ions On declaring Strikes in breach of con\ ract in both public
utilily as wc;ll as non•public utility scrvice.s in the oer,;aill ciccutmt:anCC$,
No work.nun who is cmpk>yc:d in any indus:trial establishment shill go
on strike in ,breach of contract~ I that they would .o.ot resort to strike and would adopt: all consurut:ional
(ai) during the pcndcncy ofconciliacion proceedi.ngt before a Board
.and till the expiry of 7 days after the ¢onclU$ioo o f S\JCb
pr~~; i ulfimu Ca. ca.Se). In WN'Atmtn ef M,M I11dstrlriu Ca. LJJ. v AU11a1.,,,,u.1
(b) during th~ pt:ndency and 2 months aft.ct th e concl~on of
procctdings· befote a L:ibou.r Coun, T ribunal or National
Tribuoal;
(bb) during the pe.iufency and t months a!t.c.r the conclusion of
irbit-raUon procecdi n(;S before 11n a.rb it.ratoi, when a
no tification has been isirued undet siib•$CC. (.)..A) o f Sec.
JOA.
(c) dutUl&~y period lu wh.icla ;a setdc:ment or award. is in operation
in respcc;t of any 0£ the matters covered by the settlc;n,,em o r
a~'.trd.
The principa.1 cfim of th.is section seems u:, ensi;ue ;a pe:iGefuJ. auxiospbcre
t<> enable :t ccmciliiation or- :adjudi.c~cion or arbim1rion proceo:ling to go
on s.muothJy. T hi$ section beo;11.1$C o( iu geneN.l m.rure of proh.ibiti()n
co-vet'$ 2U $ttikes irrespective o ( rhe $ubject•matter' of dis_P.ute pendin,g
before the authorities. ll is 1totewonhy that. :a conc~tion prcittcding
before a conci.fonion officer is,...,, bar 1()-;a $tri.ke under Sec. 23; thus S\!Ch
Strike- is ju.stj{jed [Cb.v"11.k.Nhm Tta F,;Jto.~ v lf"or~ (1969) l SCR 931),
Sirn.ihrly, wbcrc in -.a pending rdercnce ncithci the erpployer nor , he
wcirkmi!n ";.are ukin&:my p~ it w-.1s hdd that'Scc~ 23 bu "" 3pplic.tion
to the strike 'd eclafed during the pend?..ricy of such n-fcrcncc [&lh,rJtr
Callim,u Ct1. v Sdlim J;, A1.tr.b111tl (1967} 2 Ll.J 202 {P2\.)].
With a view to ensure the Coniplianec w ith ;i. M:ttlemcm or an
.iward in the period dwin& whicb it 1.$ in Operl-tion, a strike 'in res-pect
o f :rny 1n.itter (qu-/fdby the sc.ulenl('nt Or award' i.~ probibited. A strike
in respect: o! tt\iltter n<>t.cQ'\-ered by sctdement or award is r.(:11. protubitcd
\1nde.r Sec. 2.J(c). HowC'\'e.t, the other c.b.U$e; o f Sec. 23 enact absolute
~
(I)
Strik~1· and l.oc k-ou t s 217
C
C
p~hibition ~inst strike whether~ mpea o f the matters pen~ lor
"'
<)
(/)
conciliation. adjuclioa1..ion or arbitrauon, or not con.neacd a,t all wii.b 2ny E
such nuttc:r. "'
(.)
The asru.r.tt1C'$ given by wo.rk.men to the: Labour Co~i.ssi~oer ~
mt::.lD:J to gtt their griC'V$JlCCS redrtssed Wthtt unountocl to a contn.n.
.<::::
;::
,:,
tJor 2 r:mtter covered by the settlement and tbcr efort the strike by (I)
workmen -a.her s.uch wrlcme.nt would not attn.ct s«:. 2J(c) [&/h,-p.vr C
C
ef Afo/(IT Co. LJJ. {AIR 1969 SC 17aO), the scttlemc.ot provjdod th:tt ~
(/)
workmen would not rcson to s~c without givia.g ~ 4 days' Dotice.
However , the workmen went o n ~ . "•ithO'\lt giving notice, on the
question of tuspension of a worker (a, matter not covered by the
setdemem:). l'he strike W3? be&a tO be in conuavention of the ~ment
forbidding strike withO\Jt notice because settlement was. bu,ding on
workmen an d wa$ in opct'ttion at the time.
,:ornn,"""'1
Wbcze a strik<, h,s durin; the pcodency of concili,1ion
proceedings, a.nd the workmen p~ded that t he su-~c was provoked
by the employer, i~ ~bdd that the £act that the rtrik~ was pr~ ked
by the opposite pa.ny will not absolve the person g_omg on $trike: o(
the duty o( ·complyirlg with the requirements o{ Secs. 22 ai,4 23
~c
[Collit0 M41-zy{~ Co,r,gt/1 V 'stt.rifDllm Co:JI Gi.. 19!>~ 29 (LAT)].
Mere bre:a.clt of su.ncling dr~r cannot render suike illegal (&&,-p.vr
C,i/;,ri<t C. v Pn,/ami O.ffiw (1972} 2 sec 27].
Pendc-ncy of~ di.spute .~twee.n an ind.i;idiu.i w o rkma.n as s~eh
and the. employer does 1tol attnct the pro_vi~ons of Sec. 23 [~MIi
& Fibru 1Jf i1tdia LJd. v p.G. 8/Jcir AIR 1975 SC .1660]. In th.is case,
the i$sue was whaher ..,. hen the refercn« is pending before: the Labour
Court in. rnpc-ct 0£ a ~ttC'r f21li..ng under Sec. 2A any &trike by the
other workers would be illegal? The Court observe& "Prohibition of
strike$ during the pc:ndcncy of procccdlnp be~ott a Labour ~ -o un.
T ribuml or National·Tribunal undet' Sec. 23 was m the A ct as ongj.na}ly
enact1,d, ronflll<d only to cllipuu, between the employer and the gene,.al
body of employees and oot to indiVldual workmen. Wb.ile th.ere is
juscifiaticn for prc'\'cnt..i.ng strike whtn a dispute between the e~oyer
and the general body of workmen is pending adjudicuion, it would
 .f
r
'
o,
•
2~ . ,. · . Labou_r Law .·, I . -!. ·Strike.a· an·~,i•Loc;k•ou~a ~ -► 219
O;
b~ too n\u<:hl o expect Wt the Jeg;,linuriinreru!ed that a lid should be
pJ~c;; OJ] a,U JtT,i.kcs just becati.se the case <?_/ a ~ihgle.W-orKtiiiJ Was
The eo.:J o~:f ~ lf ,~
the pe,,,lency of '!f'r co ." . • , ~fif«dinp
,.;d •p;9v~fo., ~/.,.. ,o
it~
o,,
pondini;.- · . · . - r_ rc~nablt,a
be OOnst.tued to ·mean any concilia~ 9n proeeed.in.g wh.ic:h may d'
Ji,.~~'; a;J23 ,'Ompt:nd- (ij Sec. p. afpfic, to f.ubli~ .utili'ty co~~s Jead tO a sc«ki'nent before tl:ie concil[acion officer-and which, l .;
onIY)Sec!-'23 t6 both public uti1itj, :tS wen q, o~niublic'ittiliryCO~ms. r$eltlcment may bind all.the. ~QrloneD conCCrru!d. In otbe'r,
0
(~ Scc'.123 d&s n0< p;orubit strike during ilie'pei\&ncy ofc<>'n ali:l'-nori words, if :i con~iliatlon f'!~~F is pendi11g•6etwcc~ Of:C
pt&·~~a;g ~foll a Conciliuion 'OffKJtr, SCc. 22 000 so. 'ti.i.i)'O~er uniod and the employer and it_,datc$ to m.attm', ;o"°""""' iill
Sea 22·nO,ioe of strikeiS nec~sary, an.def Sec. ·2 ; ii~t. Thw in
puf;~\Jtillty conceni• .- 111adet, strike is ,PCJ'nuiiible. ~
.. . · ~•.,.,
lf.AOJNO C.Uc: RA.MHAGA.R .CAH~>&, SUGA.R .co: v
JATIM CHAK~VOl!TY1.
(AIR 1960 SC 1DZIJ
aron•
.
, O
O
.
the empJ9Y'ee& of the em.ploxer. the pendency of .tht said
proceeding ~'op.Id be :i. ~ ~ all the cmp~oyees of the
· -employer employed in a p<!l,lic utiljty service_to t9 aa • ~
during tho pendeacy of procecdiar .under Sec. .22(1}(d),
This,~ • is.b•'W'inious wrni th{ geamil policy
of the Aet; od=wuc, ;, would unn=ssarily diifurl> iadu,tn;I!.
~-
0.
a'
(

'll) Ip 'diir Cut, the COru:truc-tiott ~d effe<:e.,of the provisi~"ni o& ~ce. if one union' is alloW~ ,c,·~O on strikl.~n ,hough -~ _
t Seo, 2~(1)(d) V."U in iuue~ The appellant, Raniru.gilr Cane an~
Suga, Goinpany Ltd.,"'" decwed a p)lbli,:,utilit)' coaeera by
dem-a.nds ~ommon to the mtmberi of $aid u~bn as "f~U " ..,1 a<
·,he i'cst•of work:mc.tL itrc b,t:l.ng e·onsid.er«l hi ooiLciliation
-~ notification.A majority of tb¢ workmcn1bcfoog·to. ~)l, , p~·~edi.A~ bcnvecn the ~½7cf and. hU ot-her o:mployc';"' l., (j'
. • &:np1oyccs Union. while arnia.ority to the Worke.a; U..nion.!•
1
Tliese two Wllons prcsenccq., s~~n.tdy,, a n:,;,«archanet oi,1·'",.'
i-cprcsent,ed by another union. lt .'Yould be anot.be-r matter ifi · ;.'·
the coocili.ition prooeedinp in question are c ~ t o ~- Of
•deman ds to the appellant. :rhe appellant ~a the.Emplox'~s~ deina,ncds llinited to a sp~OO d&.SS of cmpJ~-~ In ,uc:b ar
j Union r~ached -a.t a settlement via a conciliati~lD. off.ur. Tlie~
ciic it manbeCOnrcndcd tliat Uie other worluneii. who are·ooc
. ;.Wo(ke.n·Unioo, who w.u aware of conciliition pnxeei:Ungs,~ incercsced m the: said ~ d i nia:-' not be bov.nd by tbt; ui-d. 0
cointne.o.ced a strik~ wh,ilc the propcroings, '\\'f:f"e taking place.~
The 9umiot1 was whether the strike.~ ~ in view; of the[i iiroc...iuf -· , 1tm.de s~JJllr
:·~o ·ur:µons .·1'. . . '.
O·.
<
(/)
provisions of Sec. 22(1)(d). l,.. Ia t:h;e present
cast\ <kmandf. •
~ > Sec. 22(1)(d) lay, down thu no jl=O• employed ia a
and thc~reaclu,d~"° rhe appellant a,1d Empl<,)'"' .
:,
:, -:<i.l)Ublic utility <.»nurn shall go on ~rikt ia., bre.tch of cotltr.lCt·~ •
Unionh.utbcoefuedthe ~r'$OfWor~._µruonas~m~li • 0
as tbcne ofE.mployeie$ Uriion. Tb the strike in ~ion is:,
(1)
C.
· during the pe.n(kncy of my conciliacioi1:pr6ottdinp'. befott :1 [t ;11,h'1 •od 4'!ft<,,ffe,d.I ' 0
conciliati?o off~r- il.lld 7 <bys ~ r Jhe ~oodusion o!'such-r
~
;:;: Prooe.!dlngs. 'Il:ie cHcct of th.is pto,YUio.a' is clfu. If a strike·i s ~... lllq al Strlkesl (SK. 24) ~ ., -:-. ..
·,
:::,- 0,
()
Q)
4edarcd in :l.public utility service,.d~ing thepenck·ncy of:a}-
OOocilia~on proceeding, it is illegal.· . I: SN u.ndt.r tho Questions Sec:tion• .• ., I ,ti . ! ~t•• j, •
,. . . r.· t -i~ ,, I ,i· €)
3
(/) I • H· R-l9ht to strlk♦
. ''t, •
•nd th• Essent~I $,e(.vtces Mo.fntenanc. Act 1981
.c,.,,f.L _ ,. .
(")
Q)
:,
:,
(1)
31
. ~
How ls h thilt ~rb in Rom No.gr CMi• £ S~r·Co. Ud., v J,ot:n C'IMiveVtJ!ty
{AfR·19&0 $C t02t) wn comleiered u lllt,;al •nd ulj.lstlfled? (LC.iJs!I)
k
"'E5Sco.tial Servi.ct$" mta.Q.S:
.
~ntial Services Act, 1981, U Ul"A'.c:tt prov~ tO(t.U\e QU.mt~e
of certain asentw ~rviees :i.od tb.e. n rmal ~i.f~ d"Ctbe oomQ:1µPl fy.
0~

!
 ·- - ·-·---- - ~
(I)
C
220 Labo ur Law - 1 Strikes and Loet-outs 221 C

(i) any post-U, tdegr.a_ph or telephone scrvicej Govern~nt bein& of opin.K>n that rhi.ltn dJ.t,,tin 111¢114/pf9'ilditid/!,
"'
<)
(/)

fu) ' of paucngc-.rs or

an}~ n111#"!f I il'tJJrsport service for the carriage affid tht 111ai111t1ta11tt ef Ol!J j»ih/ic Jdili!,Y-tmV«, tlx ,Pllb6t'11,,i1{)' or the E
g000$ b}' 2ir/hndlw:ater; l mainte.nuice of ,;,,.pptld a.D.d u.rvices O.ecessa.ry for the life o(
the community or would 2'esuh in the infliction of grave "'
(.)
(iii) ~-" )..iervice connected with t he oper:aLioJ or m:ai.ntett:am:e of hardslup of the"°""""'"'>'• may, by no<ifionion in the Offici,J ~
aut;Jmmu , or w ith the open1ioo, rej.Y.li.rf r m1inten2nce of .<::::
oiru::.fl;
Ga.zcttc. declare to be u essential senoice for the purposes of ;::
thisAa. 'O
(iv) any service in, or in connection with the w6rking of, any major SfJ'i.tt means W cest:1tio11 of work by a body of pe:l100$ whilt employed (I)

~~- ! io any essential service acting in combination or a concerted r ~ or

C
C
(v) any &crvicc connected wi:th the clearan.cc o(goods or passengers a refusal under a common ua.ckritanding of any number of pc.non, ~
th.rough lbe ;Jlftflms or with the pre..-cntiob of smuggling; who ue or have beto so employed to continue to work or co -ACCept (/)

{v.i) 21ny',s.cr.-icc in :my establi.s.hmcnt of, ·or chnnccced wich, the work ;u$igned, and includes (ij .refusal to work oven.i.mt. wbue such
amud fom, of the Union or in ~y othe~ esubfohments or work is neocssary for the maintenance of any t$Sel'ltial service; (u) any
U\Stallatio n.s connected with ""-'frm"r; other condu.et which 1$ likely to.ttSult in. or ttSWtS in, ccHatioa or
~ any service in, or in connection with, th~. ,forking of any .sul»:1..n1ial rew-cbtion of work in my essentw iervice.
ond('.lnakini; o wned or controlled by the Cem-.ntl °'9,•erruru-ot Pow•r to prohibit .sulkn !n·urcoln employmeriu
being 1n undertlllking eng:iged in the pul'(.h,ue. procurement-, (1) If the Ccmnl Gov..mment is ,.tisfied we in the pubw: i n =
storage, supply or distr-ibut.ion offedJ,'IW.·,u ,· it is lltct$$al'Y Or expedient so to do, it may, by genen.l or
(..,iiij :any ·$ervice in, o r in co1trtectio11 with cb'e worki.ng of, uiy ,pecid Order, prohib;t strikes in my eutnti.al ~ ,pt.cif~d
system of pb.M twrJ.mJ/111!7, 1a11Jialio11 or ».whr i11'P!,, bo/pikl/1 or .in the Order.
ditpt~rirr, . (2) f\r, Order made under svb«e. (I) •h•U be published in such
(ix) :my service in connection with or in relation to J:mr#11.i:-, muner as th,t Central Government oo.o.siden beat eakulate:d
(x) any ,service in any est::t.bJish.me.nt or uttde"3kutg de~ling witlt to bring~ tO the ~ocic:e o! the persons iliected by the 01\Ur.
t.hc product.ion, :iupply o r d~t.ribution of «JO~ p,Prr, ,-u,J o r (3) An Order made under sub-see. (1) shall be in forc.e for $ix
f'"/h!o; . montlu only, buc'tii, Ccntnl Govwunent may, by , like Order,
(xi) auy service Ut 2n>' ci/f.i.e ld o r ref~ry or; in any c:~bblishment extend it for any period not exceeding •ix month$ if it is
or und.crc:tking d ealing with the produci:ion, supp l>• or satis£icd th2t in the public interest it" is ntt.ess:uy or expedient
di.nribl.lcion of ~ ~ h i and petroleum prod;ucu; ro to do.
(◄) Upon the &fflle of ::an Order under sub-sec. (1) (a) no person
(XU) an}: service in any ~,m or 1uK.ri{J pn~
Cmployed io ao·y esscn~al sc-rvice to which the Order rdatir:3
(xiii) any,scr;•icc in c onnection with ,ktlioiitt o Purila«t,rl orto the
.sb"1 go or remain on strik~ (b) any rtrike. dedared or
Lt!i1l111irm of th e States; ' commcnotd whether before or after the iuut o f the Order by
(x:.iv) any' service in connection ~itb ·the 4/ain of the U11M,r. persons employed in any such service shall be , , .,.
(xv) .w)' other ~ ice occ.wec;tcd with mattcn with respect to which
l>;1fliament h.;is power to m:ake law, a.ad wh.icb the Ccmnl
 .= · .
.
.--",ir,:,, ,(.
S t ~ikes and L·,o c·k- outs
• ,.. !i r_,. ·~
.,
•J$t
~
.
~
e
1
DJsmiss;J c,f.r #m.~~~•1 pt:rlft:lpotir.g, In m~,_~ ~trlk~f . :. to.the society. Th•eourt•greed ~,la the suggestion of th;; Govor.nrP<q~
Any person• (a) who enmmenccs a suik.e ~hi~ is µJegal under dus.Aa Couhsci di.Qt 'the GOVcmrucm flS,M,agt<:~ble to ...i~w the dmiu:1~'-. d
-,.,_ o'&gOCf or° r.enuiJu on, or othet'\\l"i.$e ~ pU"ii~apy such $Ui~; d.r order, ·a~io.$t t..b e iargc num~c ·Qf. e:..rWployces cxccP.-r. 60-72 ..-ho$.e.
~ (bA ':lio,{rtt\iglt.('$ or:lf'cite, oili~r pttS01,1$. ti,COmmeu«, 0~&o ?r C.1ScS w6uld be reSo!ved' by :ai'pihe\of [lltee ~ired Judges, The ~ r t 0,
rem~w~ , or otherwue l~ke part to, any sudi ruike, shllll be liable to liopcd ttia• ,cin""!M cmployttS w ~ ~ '= in fu.,,,._ /e ~ gl'j
·.. cliscJplttl..lir. ~~rion (,including {Bfm{n4~ ia a'ccor~ ·c e wii{,.. the s'aoie ff-'
J?:TOVis.iON is :1.re ~plicable £or the putp<>k of.ill.king.such discip%
duc:ipline... . . 'f

• _hi 8..R Si1tJbv Udo,, efJ'!~._(1?89~"ft SCC 710; lt w~ h~d di~t.

~
actio~luicl;ydin~ dlfm.it.,al) on any othefg,;~f ~n.~~the..tcffll! ~~ nrilt.t. io a given situation is only a form of demonstn d on, T here-a re)
~ condi.ijom,o! .service applicable t.O him in relation .fO his empfo~n,t. different rnod.eiof ckn,,Ol:l$tra.tioN e.g.' go-slow, '1t•in:..,worlMo-rulC'~ '
fltahlf~nu
'' • ,.,_ Po'tliff ~ ; prohibit lock-outs lit C-ftta!n ' f absentttl.$m, et'c. and .st ii.U is On~ rucJt. mode o f det;nonttnclon s'y
lI th.tCentral Govcm.mcnt is satisfied that iii the public i.nten!:St ir fi woriters (or tbeir'.rights. The ri#.t td]demonstr::ne :uid: therefore,.. ,ht.
righ1.- ~o.-Strikc ~rtffl.t wap1fu~ the armouty.;O t& ~orkeo.
necessary ot: cxp«lie:u.so to do, it nuy;' by: ~ene.ral or special Ordeh~\; . ~• ,.. is An
. -··r- · . · ,, '1/''' ! · '•J!':: ' iii;
.
p~~it ,ock~tsio ~y ~ hlishmcnt ~ gtq·_U>.ytmeliti:il ~~• Though th~ r ight to .ttrik ; ()! .! i ~ t to demOJ~ p,tc. is 11~r a.
•~ied'!iith•0rder. , · · . , " ' ·i·. fun damental right, it is recogn.iud ::is a mo4t oi ~e'~Jorofflolv,n,-
· Co1-e Low. . · • t ~e pjc~-ancCS of.th~ wor~~· ~ough,t~s,rigbt has ~ reooga~
by alrn<i,c all, deDJOCtatic countT;., butit;, Mlan ,b<ohite ~ c.n.in
· la T./0&,ipr,fa• v S1ar, ,fT.N. (AIR 200) SC•30J2), a two-Judi;\.
• .f. bcndi o£. t.he"Suf'.l•,::,no Cw..n Ul:ltl ,hat- Govcminent scr'VUl.u' h3VC',nj
!e1t~ hive beea, pbced ui,ot1 ·i i ;f'i&t tbe Wustful Di1put.cs Act,
1947, Tb""' are td befourul in Secs. '10(3), t6A(4A), 22·iiod 2J o(I.I),.
: l,g,1 o~,miltory right t0 go 011 st.rik•:The court said tfui •~ Aci:: S.C. t O(J) emj,ow....·th• Appr9P}i,,t Govcnunenit'o enliub it die
employees c;1nuot hold K>C.ktyto. tanso(n by goi.nfOn Str'IXe" If t.!,:e contfuua.ac(' of a -~ e iJ it is in OO~ncclion with a 4,isp'.'l.ue ref~ !<?I_.,_
• employtts felt agg:ritvtd by any Govomm,nt =ion, i,bey .bould ...J;, one of the fora ct-eat.eel under the sUd statute, Sec. 10A{-4A) confers
~ ttdress.tl from the statutory macb inery provided.nnclcr diff«ent ttatu«ift
1
• p r<,v~ Tue coun Mid suilu u o. weapon. U-m.ostly mi.susa! '!'hidi
similarp0wer on k:he :Appropriate-Govc'mment wherCtM industrial
dispute w hich is tjie ~ause of the S'tri~e ]$.referred ro 8ibitratfo11i_~'\1~,
di
' .resultf•r.iir.chaos
.. anf d t0b.1 mal.administr.atioJ1. 'rb~ COu.n id'ttted to ~ a noti!i.cation in d1at behalfis·i.~~ under Set. 10(3A).- •
(/)
•.• ;
j~~J..t.. in_ Rizdcf)• S~m Sktrmrt v P(ll/1114/ltr'~mil Ctlltral Cirift,,.
••
Q"
The coun tJnher'ob~: :rhe i.6.tcntt o! the ilwiti:Jtion must
~
:,
1'W~:whcrci.., the Supreme Court had taken 1.h~ view that a pttu#)
,. of M. 19(1)(~) Of die Constitution sh~ws,th!t thert ·s,: dl:),lund:unettb,i be pU401ount to 1U coo.~erned incli.J!mg the workmca.. 'At the .same , '< l)
:, righ11.~~ $_triu. . · ·t, rimr, the coun:s dnnot .be obliVi~.u.~10 the ee<>nom«: Jli'~ hi~ f~~ dJ1'
(1)
by li&ow-..In this F,, both the e:uues ,eaeted. to the. tenSe-~tmospbt:Te:
C.
~
T h,;-Ape.x Court obscivock 1.n a society :wh~ t~cre is Jarg~ scale
. nnc-Jnfloym)ot .mcl a n umber of qwJiG.cd p'.enon.s ~ eagerly.w..itiot,,
that,built up o~« a ~od of t ~ . ~ l facu foun ~ by the Labour-;
Court clearly shou• that while the bbour was fnl.$t~ 8$.itt=demands 1
:o•
;:;:
:::T
for empkiv.ffl4Dl, $lri,ke 4IM(J{ be just.iGed on ahy equiu.ble growsd. Foi.
rccut'1stn1,'~ei~~ccs. in.ste:tJ o! ~ on.SU'i.u, i{ etnp(oye~ dd
were,oUau..nding siiwc.~ ng and th',ey"w e~.&ding i t ~ to ~ t tf
() the inlla.t.ion Without M. upw.ird rcyi.,io,n in nga, ctc...,thc managcJne:ot ·'
Q) $OJt;e wOrk lionettly, 41,igcndy and efficiently, Aic.h ~ w ~ n~
was worried about Trade Pair Au thoriryi;i(lndi.a's rq:,utatio.a likely, c9 i
3 only be a',Pi,rccla.tcd by.the authority but also by j>tople at large, The
be lowered i.a tbe eytS oC vuiting dignlttriC$ because o ~ ain c-vCllfs
~
(/) ·. reason being, in a democracy et•c:n though t.bey are GovertJlru!n\ • J·
()
Q) emplo)'.e~, they are pan -and par<:cl of governing 6.ody rind owe:dut~
thatswc.re happe-nin" dl>e to the Worker's ~giucion. ,,
~ .~ ef•~\.
o·
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•
'•

224 Labou r Law - 1
In thC;Se circumsu.r.ces the Suprune Court found i1 unwise .1nd
futtle to emh:uk upon :.:i (:iult fUJding mission. Thus, keeping rhc intcfest
o! t he in~tiFntion in mind :tnd bearing i.n mi.11d the economic bardsh.ips
lhat the labour would suffer i( the impugned order; .ire not .set a.side.
th.c Apex Coun thought it G<.'$.i.rable to restore t4ept:acc by din:cti.ng
the r,c.instaCemem of the wc,rkert. I k"o·~raace of rcla,ioo.sbip of einploy cr and employee. The rehtiombip
LOCK-OUT II
Just$ unh it 11. weapon., avRilable to the emplo)'\'fS for enfol'cing their
i.ndusui:tl demands, a lockout is a we:1.pon .ivaibb\,c to the employer to
persuade by a ooerci:ve proceu lbe emplor:es to.foe~ poin~ of view
,:ind 10 a(;Cept his demands, Thus, lockout 1$ antij.hes1~ of stnke.
0
In 1(pi,l,.,ua B.111111, K.t>t«t,iriv R.Ajamm'lklu,,,, A~ 1960 SC 893, the
t\pcx Cout't observed: "In the su-uggie betv,e"en. c;apltal aod labour, the
weapon of $trike i.$ aviilable to Jabour and is o fttn u.scd by it.. $0 U
the weapon o f lockout :l'\-aifa.bJe to t.h~ c mp!Qyer :rnd ~n be used by
hiro. The 1.!-k of both ,he we.apons by the respective pan.ies must.,
howevc.r, be rubjeet t.o the re!t:,•ant pro";sions ohhe Act. Chapter V
which deals with strikes and lockQuts clearly brings out the antithesis
betwc:en tl1e two weapons and the limitarjon~ subject to w hich both of
them must be exercised."
s-,c, 2(1) ' v S/44 of U P.. 1960-11 LLJ 76). In this c:ase, the textile mill wu d osed
A«:0rding to Webster's Dic-r.ioa:uy , 'loc.k•out'· i.s withh~lding of
eruployment by a n e mployer and the whole oi part.i.;.l dosing of his
busine.ss csqblishment in order co gain conccssio,ns from employees.
As per Sec. 2(1) , "Lockout" mea.n; the closing of a ,place o f
cmplo>•1nea1c, or die Suspension of work, ~ the refus:'il by .ui employer
to c;ont.inue to employ s.ny rnunber of penons emplOycd by hint.
T hus, the definition has three Ulgrcdien.ts:
(i) ie~pors.i.ry closing of a pl.ace of emplo.yment b>• the employer,
or
~
(I)
C
C
Strikes and Lock-outs Z25
(ii) suspension o f worlt by the employc-.r• or
"'
<)
(/)
E
(~ refusal by an employer t0 continue '-◊ employ an y n umber of
persons employed by him. "'
(.)
A, in the cas~ of n.rike so ~so in the Q$e o£ lockou; there is no ~
.<::::
;::
continue$ but SU$pulded t«npor.vily and revives aherwatds when the
settfcmcnt is anived at. Lockout i$ neither alteration to the prejudn of
workmen 0£ the conditions of service applicable co them nor a
dise.h.uge or p1,:.n.id,mco.t whether by dism.issu or otherwik: (Lr.4,.M'i
o,,.; s., Wik IJJ. v &,,,, S""'f> (1957) 1 LLJ 11 (SC)J.
,:,
(I)
C
C
~
(/)
In cue of lockout the ..,or-kmctl are 2-U.ecl by me employer to
keep a.way from work a.ad, tbttefo.re, they are .not uodc:r <1.0y oblig-a:tion
to pTQCnt thc.nud:vcs !or work. The-- questioo wl:ether -che lockou! by
the employer is justified would be an 'i.ncfu;$triat dispute• under the A.et,
and therefore. the question of the payment of wages during lockout
period would also be an industrial dispuce. Where the Manager was
violently attacked and other members of the staff were du-eatffled the
1ock•out was fully jurufied (Klzi.[fKr...z &kJu v 'R.afama11itl&am).
The liability of the employer in cue. o f lock~ut would depend
upon whetl:ic-r t.he lock-oU~ was justified and lepl or n o~ and the
provisions regarding lay-of( compusarion -are not applicable. A lock-
out may sometime be not at~ COOJlectcd with «onomic demands; it
may be resorted to as a se~wity mea$u.re {Lm/Kri.th1tt1 Sfl!IU Milb l.Jd.
down by the employer w,ith the object of teaching all the workmen a
lesson for the uicident, of ~ssault on the ge-a.era.1 superintcnde.m. of the
mill by some workme.n. lt WA.S rt$0rted to as a meuure of retafutioo.
thl.1$ unj1JStificd. Also, the lOCk~ut wa.s illtgal because there was no
prior notioe. Therefore., the workmen 'i"'Cre en.titled tO ~a~ for tbe
period of lock~ut.
Prohibition of lock- outs
j1J;St. as n.rike h;tt been p"rOlubitcd in public utility services under Sec.
22(1) of the Act, lik,w;,, a lockout b,s also been prohibru,d und,r Sec.
◄. When is a.n emplor,:r not 11,t,Ctt to o,ywa11ea kit the iionod od IOc:k-<iut?
 ..",, f frof' '
.
Labour L:iw - 1
i
r '
· ·
I
,, .
$tri kes aud -'Iiock-ouf.$
.,~:i,;
n •
,
employment or_ SU$j)Cnds worie"On hi, premises, a: •tocl«;nu•
I
•)

~
•
f .
'. '
. ">'7'1
~ ,
f
1
·O, ,
22{2) o( tpe Act under tmrtlwci.reu.quu.~. Th.e·cQnd.itions (~ time-
lim.it. no(Jces, etc.) for a lock-out bY: an employer are;i1ame 2s H!<>se for VJ>ould come into Cx.i.tt.enO!.. :'tt- ·, ~ ~ 0,
strike bid down in S«. 22(1}; simllai!y, no i>otic< of!ock-om ~"""3ed . Lockou,t ' ls antithesii br jtral 'fhe l~~,~~t_.is the
' whi n there is already in aistert(e ,a .n.rlke [Se<;. 22(3}]: Th'e.n oticc of co~rcspond.i.ng weapon ½1 'ih~ ~ ':'Gr,,_ of tmRlOyer. .It an aJ
idck~ oUt r~ferred tO in .sub-.scc.'t2) s6aU bi,.gi~Cll insUCb ffliru:tet u c-mP!oyer shuu..d~wn his pl~U p( b1.mncss 2$' 11 ·meam Of
• • 'may. b, p=crib.d (S«: 22{4}]. · :
1•' ·· re.prLS:J or ~ an. J.t\Slnlnlen.i° of coercion or as •l :'IN:lcle of
Sec. ~3 en.~ a g~ncral ptoh.!.,\tion on;.i~c5 and lo&out$--
Aecordiog to Sec. 2◄, a lockout jt.alcgtl if it is Mm men~ or: dcclar«!
in com~vention o( Sec. 22, or·S~ 23·.'0r Sec, l0{3) Or Sec:'1tjA(4:A),
- ~ ~ o o,tl>e~~~ge.aenlly~r,wb,,,
his-act &t what•n:iay l?e·called an aa of btlligcttncy t.bcR would
ht' a lock<,_ut, ]!, on..the othct lfa.n~ he shuts down·his work
j,. I
, J,un as S.C, 26(1) p<nawc, an <mpl?J'"< for l ~•pan in ill,w,J.s!rikt, beai.;se he cannot-for inrt:ui~'gtt the raw m.uCriab or the
·Sec. 26(2) pe:'12fises lD employer f o r ~ loc::kout:s.
'. .. ' •.
. ' poWer necessary to carry o n &is·tindcrtaking or b«:a~he is
ua.:1.blc to•se~ the goods he fu.s made or becaU$e his:'cm:iit is
, ef:
. . A ~o~k-out within 7 daj,s of ~oncil.iation proc.eediAS,? ,i.s,lllo/ ~
1f,result~ng,as .a. c.o,nsequence of illeg-2l,$'trik.C already s t ~ ({f?ir4f!' e¥h~u.sted or. because he 1$ lOs~g money, that ~ .o uld
r... .
* be. e
G"''f''' N,~,;,. ·,:,, Raii,u,;J_c.. LPt· v w,,..,.,.
AJR 1960 sd:
219J.
lockout. .i ~ '

g nude 2a9-idff"an hill be

II it is ~o that profits "-'C,~e ~
• I

q
~

ltAo1NG U.SC: SHRI R.tMCffAMDRA SPiHN IMG MJW v r. itfwould be

nu.~ b1,1t AC'-&tbcless the ~n:1.plO)•t..r -shuts down,
0, MAi>RAs ~-
. legitima~e to Jonclude ~ theiil~n~e of anothl!t\~ptabJ,-
. STAT[
' 1,S6 M..tf'"2"1
' 1) • r
~1
, (AIR.·
fiplarut1on dfat the t!O$u.rc.w:",a.l~kout. If, ·o'1Jb_e ~
.,... fl( 4Jl employer shuts ·do~.o his' P!~,f( b~smes;~;i~~ h,ru!, I = ho!,e been mcur,<dm,the F.' and.,., likdy to b,
mean, of reprinl or at an mstrwneot.Of coercion.o~~ ,: in.rur~ the c~oclusioo. that it W~iJ;a'ut' down a.-s tb'c·~of 0
l 'riiodt Of exerting preuUJ'e"O~. thC Cfflploye"e.J. then it a~~ b~de decision ~d mat it..~ no~ l~O\lt would
I ~ould 1bc "locl<-out.' If it i·~--a &ffluinc Sonafidc..d~i&n be 1mtil1.d. o/ toun., margu,.l - , DUY"'""
wllich lie, on •••
_.. .,Gs.
fOr ~mplc, on account of lo$sd; tbc.l'i""it would' 1not be either side of t,be line.] .

(/)
J&;Jt'-out.J .
~ this~~ the Madr.u High, Coun bid do·wn some teSCSfO
• t
In H.M.T. lJJ. v i,.11.T. Hud Offi,- bf1e>,.,' Alim.k e 1997 s¢
585), the legality o(lock.-out was in questi.On. The wor ' e;,'en Wt {
o·
~ ~cmunc whether Mpeusion of work ~X e.i:nploycr is loe;kput . the ~S:. off of s'6-ikc «>_at.in~ t~ dis.r upt the wo~~g of factcirle$
:,
:, or not, 'Whctc an employer SU!~ \\•orlc uid the ~st;io~ is..,. froru.. within f:.ctory prmuses which lid w the decl.uition of lock-our~
0t
(1)
w ~ th~t. ~ on ii a l~tor ~ot. the coun will Jla,.,·c . It :was held th:q the lock-out io, SUCh .circumstances muu:-Be regit~d ,
C.
t ~ enquire, wily did h.e &hut down.? W~ ii a bonaf.ide)uiine;s:s ~., in ~~~oe of iUt~ strike, and 'c-annot be reg:irded u ~ ' ,G
~
;:;: decision or w:1.t it a move v.i.s,.a-vis the 12.boW"cn emplo)•ea? even if. pr~Vl$LOOS of~. 22 wcre_noi~c:omplied wit~ Tb~ the--· ~ ,.
'f
:::,-
()
The court observed: As the wordt of ~e dditucio;~ workineb were n.ot cnntlc-d tO wagc,J ot.~pck-out period.. , .._ J @.
· ~(l)Jiw)d, whatever be the:cin:umst2JlCC!S in which an cm Io 11• "'
Q)

3 firids-'1irm'.cli pJ.ccd ud wh.arMr t.hi $tl"Cngih of the ~t~: ·; ' 1

qJ
t!t2t forced on b.imth.e step and h.ow~rimpotCOt:bc' may b.;
(/)
(') to avoid the resulc, ii an. e~loyer closes the pl.let ar '•• ,...
._,,
Q)
::, ~
''
•
~
:,
(1)
~ '
f C
 -··-·- - 11:,;:x:
~
(I)
C
228 Labour l.:1w • t C
S t rikes :and tock- out$ 229
l.ockout v. Closu;e5 "'
<)
(/)
Tb~ in d0$urc there is no intention on the pm of the t'ffl.ploycr
Lockout is different' fl'<)m closure. Lockout i,s 1u1:1pq1W:J (as there is E
to c,o minuc the business, whereas. in lockout the employer is always
don1rc of ,he plaGC of bu.sinC$S only) while closure ~ fNT1Ka1u111 (u
th~e is dosure of business ineH}. Even i.f tllSpe:.nsion of ""·ork is
bavi.ng the intention to continue the buAnC$$ if h.i:s dem.and; Q1e. ~ "'
(.)
by rhe workmen. The employer does not ha,•t: a fundamental ri;ht to ~
ordered it would constitute lock<MJt.
lockout., cw;n tho"&h be h..a.s One to closure. Th\1$, an employer might be .<::::
Lockout is i s;yeipon of coercion in the hands of employer, guilty of unfair labour practice in case of lock-ou,~ but not in dosure. ;::
v,.-hae cloiure i~ gen c:raUy for 1.-ndc rc~on:,. Ttle closure. bas different ,::,
legal effect.$ on the rights of workers un<ltr thf scheme of the Act u (I)
C
~mp.ired w lockout. which is a Jeg_al means U:ndcr O?rt:>.in specified FURTHER QUESTIONS C
conditior)s in th e 6:mds of the cmploy<:r~ t9 he used apinst the
cmplo)-ees. j "'
<)
(/)

Above-mentioned differences may proyide so1ne clue a$ to
difference between lockout and closure but \ hese are not precise
d iffottntt$. In order to determine whether the ~mploye-r has imposed
lockout or closed the e:m:1.blishu1oCt1t i, is not n~ry thu the closure
has to be irrevocable, final and perm:m~f)X ~ ti¢ lockou\ LS lemponry
or £or a ec-riod. True test to be applied on ~~ bui.s o f evickace L$
whether the do.sure w:a$ :1 devic:e or pretcncc t6 term.in-ate servi.ces of
lhe workmen or whether ic was btnu!fid# and for' re2so1u ~eyond 1be
control ~f the: c.mplc.>yer. Duration of clos\.lro may .be signif.iCQJlt fact
to determine the intention and lmfl>:fidu of the erup1oyer ·: it. the time of
closure but l$ not dcci.sivc of the 11\,l.tter cw~,u/ Libour t.lr:!OII V B. V.
c..,,,. (19ss} 1 LLJ s2 csqi •·
In J?x>rw N,wtpdPh' Ltd. v Thn"r JP-wkmf• (1962} 2 LLJ 227, the
Sup.re me_Court disti.nguishod between lockout a'~d closure -as follow!:!
(1) in cl0$',1rc there is se-.·crancc of employment relariorµh.ip, whik:
irt loc.k<>ut there is- oo severa.nee of .such relationship but there
is only suspension..
{2) L9ekoul U/ caui;ed by the exine~cc br.apprchension of an
in~nrial dispute. A dOSW'e need n0t,be in COnsequeoce of an
i.nd~tri;a,,I cfuJ,\.ltC, . (D. U.-20I l ][C.L.C.-9ZM3/9$]
(3) A lockout is a tactic in lmg.a.ining. While the clOSUtt'is $hurting
C!)lployrocnt and thereby end.int b~ining. ·
Q.t. When is a s.tr{ke eonsMued ro be Illegal under the 1.0. Act,
1947'? Can .n ~mp!oyer dismiss worlm'lm and deduct waaes if
the wol'lanen resort to an DJega.J wike? Discuss citing }ate31
judicia.J decisioos. . (C,LC.-941.96; L.C.11-961
What are the cirOJm.Stances under which a 'suike is considered
ooc me-pr? 1.o.u.-10101
In Bank of Indio v T. s:Ktl~wolo (lt90) 4 sec 744, the
Supreme Coun held that'lcgaHty or iUegali.ty or the strike hes
nothing to do wl~ the tiabillty for the deduction of th wages.
Even if lhe slrjkc is Jea•I• it does not s•ve t!w- wortcrJ from
losing the sala.iy for. the period of strike. Jt o nly saves them
from disciplinary action. Ho~vcr. n::oently In Syrtdicaie Bank
,, Umult Nayalc (AIR 199$ SC 3 19), the Supreme Court while
tndoning its ~artier dicta has held that - {l) I.he workmen are
· cnti1led to wages if the strike is legal and juS1ificd (ii) the
workmen oro not entilled to wa,gcs if the strike is illegal or
unj\1Sla6cd. Do YoU tcel 1hrrc b any oonfiicl oropinion exprcMC'ld
in the abo~ ,wO. deel$lOM or tbe Supreme Court? Discuss.
Pisa>&5 the p rinciples of I.aw &pp lied in ftndinc: O\Jt tho legality
of• 5trikc ond justiftcation thereof. Can there be a alrike which
S$ lcpl bt.lt,WljUS:ific:d ud 4 scr~o w l\if;tJ i.s UJc111.f but jUJtifie¢
ca:ider the- 1.0. A'ct, 1947'? {D. u .• 101111013][L 9.I-9,l9.$196}
 . '
~
23) Labour Lq.wr.,.:' r '1'
· . Stri~e$ and J,.i>clc-·ouu ~,. 231 O·
~~ ~
1, ~ " I I

~ }-~ ~e~l .~trikes

t[n<let ihc,~
, ,., ~ . .·
law, only prohil5i~ sr;r,lk~,for which ·penahl7thave
t should reson to s ~ ooiy wb.eo.all~? milable
at.a pea(e!ul settlcmeQt"~ith th~.~tet.me"n.t b.ave bee
~ve
, ~ exhaust.~ :\
( )°
.,!
b:ccp•lii1P.Ose<i are illegal. Sec. 24 layi d◊wri tbe,PPunds 'wliidi irutke ,,,,: question of jusrifubility oc ~ .,;,ik.of • .uik~\ ®ld de?.e"'h;
th.,i;-;i., m-,.
" ... .. "&~ .
·
.. .
·· .... 1
E-' ~•
. upon w~ethe.r ihe'demapd$ ~ te'®nali-e""bo.11.'!fi'ck for tli~ bettcrm,e.nr?i'
:~f~he $UVlCe co~~ns 0£ th~ w~r~ 4 ~~~hcther lher..uc (~ivotoµ.+.~ •
of
...,_ @· A suike .3h•ll be illegal i!' it is cornmeu.~ or declared in
... .. con~.ravcmi.on of Sec. 22 or Sec: 23. f or fo~ .tn.y ultettor purpose. Strikes;',fcsOncd to £or kttlemen1 of • 0
e09.nOmic fOnditio~·like wag~, ·~i,~~alJowwce, ~~. l():i~ and.. -,i,'
lW ·. ~ A stri..lce .WU be i;llcgal iJ it U c~n~~k conel"',lvcncio~fo( aa holiday ·wouldi"""•j..,; nuke it i"-'•ifi•tiJ., [S=dum. T,,i,i,_f/j,r tid. v fl, ,, .o
ordt.r made under Sec.-10(3) or under sub-s.eC. (4-A) ofSec, ,w.;,.;.,,. si_z~fl!iniio,
{196(j_), ll UJ 78 (SC)]. A' be s'1id to~ unjusi;£,d
. .
,. 1_0-A of the Act [Sec,. 24(1)]. '"' ' 1 unltm.th~ reasions tor it are enti~y ~ or unreasonable:, Wb.e~
~
1
1' stnk~' sh.n "" be <k<n,ed ,;,_ be illegal if' } , ~ pa.rticWu ttrilc:e·wias justified or not·,;;a qllestion of llcr;wbich bu
. ~, , • ~ . "' ! -., • i.,
. f) . ~.at iu o o ~ t ~ot in co.O_tr;tven.U~n t)fthe proV'isions . cc
• r
thq
t0 ~jUdged tn lig~t of the facts: i iid fircumstanc~ in .t.lcli case
rf.,,. ,_of the hct, or ·". , r Gr,.,.,,~
..,,.,.,,. v Tu Wl,"""'"•(1978), n LLJ 80 (SC)]. d'
.~lien the re},ly by the ma~ ~-n~ co the ~lrtanas ~f die,
_(i;i) its contUl~n~ w~ n·o t proh~iied under ~.JO(J), or!
wOrkmen was noc ~ch that·a strike ~~Cc:t:'$Sar)' t h e ~ would be 'f ©
J.t_~@ : "ii: is ,<kcl~ec;l in con~ucaCe of :i.n ilreg.d lockout.6 t , cN;-"-R,.-r,ry
• wi;uitifie<1 u.1,.viw,;;t.1;,..,, a FJ1(1n (LA'l'JJ.
.~ ' i"" ' ~ ~t);I-!~ ., i r,
Wh"en ra't_1on.al~in~ ~r.ht!m.t' i~ i~nMu~ COttt' to $4c·. Jl~ f \Ii• ~ C,.st CHAHDRAMAL~.r ESTAl£ v ITS WORKMEN @~
1D,.,Aa. then rdi.iw to act ;a.o:o~ to thats~ does .-.wQ)nstWt~
'rt{~~; [~',rrb ~ J11tt Co. l.Jd. V T/Jnr.,WQr~ AIR t960 SC s79J
I
.
U1960) II LU, 243'.(SC)J ,
, • I t
' 'l.i .
,t· . ,, . ,.,. • ~. :· [ln'th.u case, ~e SU-pre-me Court.iobserved that While on 0.
Justlfllb~ltty o! a ~eaal/lUege? Strike, J im on~ h,md it l:w to 6e1~ einbued that :,trike is
tJ-nclt·r.t~Jth cma of the Act S(),:oe $trikt:s are dec;l:u:ed to be legaj. and tC,gith:nare anb so.aietime.s _11.oaf.olclablc weapon'> in. th'c.
fu& of labo~, it is equ'11.ly iro~nt to ttt'llffllber that
01
"M?~~ilJegal. A s- trike is ll$U if it does-Dot-violate :iily 'provi,ioru ,of the
~t".!:iu
~~
• Al::t.~ isWlt§llii-rt conttave.nts'5ea:;.:zz, 23 and-2◄. There.&$-tio indiscrimin:ate
. :ind hasty USC' o~-ttiii·wcapon·
• shhi,ld
,':G' not .
(/)
~i~tripubting •PJ;St~~~ or • u n ~•ttiikt:s'. The 00ncq>t1 i~w be·c:ncoungcd. It will n ot be rigbtJor,the labour to think
~ ~ t on any kind of dcm.aod.''a.Jt,:ikc can be {o~ccd

o,
:, beffl1de\·eloped by the Judiciary on the principle that the. workers 0
:, •· ' ' with im-pu:o.ity without cxhaustipg; rC;1$on.abtCf:vcnut& .
•
(1) for -peaceful :.chicvernent o{ theit 'objtcts.
C.
~
lo " •
The workmen might fiav~ waitc~ for some. time a(tcr
•'

cOncllbtion cffol'U failed before t&rtiog .:a strikti and in

,. ' I
;:;:
:::,-
()
the meantime to have a.s.kcd iSe go~emmcnt to"make the.
rrfttcncc. They a(d not Wal~,u alt. ThC.work~1! ~actu.ally
~:
. '&
Q)
stnu::k work on the very ocxt~ -when coociliatioo ·eft'cru -~
3
(/) fijl.ed. Thu,, the strike ~w~ :UO!u~lCd.J 'l., ..
()
Q)
The b.CtS •ete that o n 9.8.1955, the ~ orkcrs' U~n.~ bmiued '0
to the Mfflagemend a charter of t';ooi, demands: Tlio,ugh the
:,
:, ~._, .;
;

(1)
~
<{,
. ,_
' 1

232 Lab<1ur Law - I
Manageme.nt agreed to fulfil -s ome of the demands, the
pr incip:il demands remained un32tisfied, On 29.8. 1955, the
I.abc:,,.ir Officer, T ndnJT, wh.o had io the mt-;wti:mc bcco apprised
of the situ2tic,n both by the M.:Ui.l8,etnent 2nd the Workers•
Ut:t.ion. advised mul'\W neg«iaiions bm,.~oen die rtpr~.ntativcs
of c.he M:uugement and the worken. Ultimately. the matter
was recomrr.ended by the Labour Office-r tot.he Conciliation
Offiecr, Tric.hur forcoocil.ia,UJn. The Conciliation Officx:r's cHons
proVed in v:Un. The l.m meeting for co~iulon ,,.-u hdd on
30.11. 195). On the following d:ty, the Ufl-ion gave., strike
notkc and the workmen went tostrikewk,f, 9.12-.19>5. The
strike e nded oo .S. 1.1956. Prior ro this.! on 5. J.19S6, th~
Govtrnment had referrod the dispute wi~) r~gard to five Qf
the dcmand for adjudic:at.ion to the lndu.s.tfial Tribunal. The.
TribU.O:i.l granted all the dcnu.nds of t-_he wprkm.en..
J'he appeal bd'ore this C.Ourt W,\$ 6lcd Sr me M:anagcmcnt
on di.rec of the demancb. One of the is,ks was: ,.Arc the
·work.er$ entitled to get ,rtage$ for the pcrlod o f the $Crikc?,.
On t.Jll.$ i$3ue, bef'or~ the i'ribwt:al Lhe wo*mc.o bad pleaded
lh.tt the nrike wa.s justified while the Manakemcnt contended
th.it $1;:rikc ~..as both illeg2l and u.njunified)Tbe Tribunal had
recorded a finding that both the parbe$ well to b ~ for the
¥trike md ordered the. Man.1ge~t to pay the.workers 50%
of their total emoluments for the strike period.
"f'lu! Supreme Court while doiling wiili the uid qumion
hdd that jt wascie-u that on 30. 11.195!,, the Union k.nt"w rhat
the conciliation am:mpt$ bad !:ailed and the next mp would bl?
the rep(>rt by the Conc.ili,uion Officer to tbC Government. It
would, therefore. have bcc.o proper and riasonable for the
\'v'orken' Union. to i·tddres.s the Government ·;tod requ~ that
a reference be made. to the IndU$1:rial Tribun:al. T he Union did
n ot choose to wait and after giving noti«: ~ ·the ~mgemcm
on J.12.1955 lbat it had decided to strike wort t'rom 9.12.1955,
-:iet \iil.mned the Strike from tlut d.tte. Tiu- Cou.rt also held
that there was or
noiliing in the rl<Uun? Lbc demands nude by
.. ~
(I)
C
C
Strlketi and Lock•outs 233
th~ Union to jU$Wy the ba.ny actioG. The Court then ob,erved
"'
<)
(/)
a, under:• E
"The ma.in deJXW1ds of the UlUOn were about the cumbJy "'
(.)
allowanc~s {allow11ACe for blankets) uid the price of rice. A, ~
regards the cumbly allowances t-~cy bad sai_d no~ng ~inct .<::::
1949 when i.t was first stopped till the U 1110n nued 1t on ;::
'O
9.8.1955. The gricvaqccs for c0}leaion of exCC$$ price. of rice (I)
wa$ more recent but even .so it wu not of such an urgent C
C
rurure th.it the UI.O!::r'e$t Qf Labour would b.ive suffered in-cpar-a.bly
if the p rocedure prescribed by the law of senleme.ot of such ~
(/)
cfuputes through Industrial Tribunals, was resorted to. After all
it is not the employer only -who suffen if productio.n i$ nopped
by strikes. While on the one hand it has tO be runembeted that
$trike is a lcgiti.rm.te and ,s,oCDC'tUllC$ um.voidable wea.pon in the
hands of bbour it is equally important to remember that
indiscriminat~ and hasty use o f this weapon -$bould not be
eooouragecL It will Dot be righ.l for labour t o ~ th_a.t on ~r
ki.nd of derni.nd a strike tan be commenced w-1th unpumty
without exhausting reuoaable avenues for peaoeful achievemtnt
of ,bp.r objects. T hcN! may b·c cues wb.erc the dt:m&Ad is of
~ a,n urgcot and $CrOU$ nature that it woukl not be reasonabl.t
to expect Ja-!:x>ur co wait till after aski»g the Government to
nuke. a ttfcrea,ce. In. JUch c:aJCs. snike even before $UCb a
request bas been tn:lde may well be Suscifie.d. T•he preient is not
however one ol such. cases.,.
0
According to the SJJ.pre-me Coun, the wor-kmen mi~t
well h:ave waited for some ti.me Wr conciliation eHorts failed
before naning a strike and io the .mea.otime to have asl«-d the-
Gov~mme.o.t to make a reference. The Goi-ero.ment i..ppcar to
Wove acte;d qwckly and referred the dupure on 3.1.1956. It Wa.S
aftu chis that the's trike 1Va.S call«l off. Thus, the error Wa$ $0
WlOU$ a.a<! the Supreme Court concluded that the strike was
H'!J~llifad and so the W0tlun= IU"e •(If entiUed. to any w.1ges for
the strike period.
Thus, the Apex Coun. hdd th:at the Industrial Tribunal
a111tN11come to the conclusion.that (illcpl) strike was half justified
 234 . Labou r Law - [
.( r.' '
I
1
•
i
I
......,
:~M - ~
.
.~ i
',.,Q

©:
~ , · Stri kes ·a nd r t:Ock•outs : 235·l '
-~~d.&:tlf Unjustified. The award of. p;y~~o.t Of fifty ~ri:enrt . ..h'J;i. { \ ', .~
l
It m:iy be noted th:u in Cr"O;flf/#~-" Grrat,u- 'L.Jd ~ ~ m:"rfM{AJR (j
: e;>h:he total cmotumenu, fo r the ~ i~~,period wanct ;1,s:de.1 ~ t97ij SC 1489), w ·S~pttme CQ~n..htld tba.t even if a-~~~ ill~ll1
Lffill·"'s y'~e !'nay be Justtffed or ~njustlffed • ji
it.cannot be outig,a.t«tas unjustif'~ u.o.less. the·rc-~ns for~ ue euun:-ft
peCVer,e 01" u.ote1.$-0nable - :to u~·ct, 'o/hic.h has to b~ &cid.e.~ Qt\ thf qJ•
A striRe.,nuy be legil if it is <:o.mmeoced,'w~ti'lout contraVcuing flie · fucTs·ffid circ:um.s:u.nccs of each C;UC [Similarly. held in G'!(.tra1-.Slitl
·• S[Qfutory provisions and it nny be •;ustified• if it>is,b(,~,Sd, r~tt«f,co
Eor the betterment of service co~ditioiu of Workers: A $trilt~ ma>fjl)e.
T•bu v C.S.T. ,'Jat,i,,"' S,lh, (1980) I LLJ 137 (SqJ, In this ca,:,;
i. ~-"!f the c:ontl\1$1on of tbe talks!~oonciliatio-0; (via.~lSt~t I:a.b.~
OJ
both ltgal '• nd justified at the ~ltlfflt"t1Cieitlellt but as it pt0gitssC:S he Commissioner), the company te-VeDched 93 of IU wor~ wu?ort ($1

~6
ttrikers may resort to acts of viofe.noe and sabotage. Though such a even int.imatuig to tht Labour ConuniisiODet•the SU~ cannot be siiJ
~ . Strike.ma; not .become illcpl, it Will o::nwtlY beoome Wlju.stified W"fl h.
1he res.on to ruch 2ett on the put of tbe workm.cn. • -l '· -i
tC: ~.k justi£i1 . ' l i ~;· . J! il'J. ' I
.\. . . . t ,.
' cOft~equ~es b1111e"gai strf~1';\ ~\ ~
~
.
llie1!I ~~'\• -~•rlnOt be juSttfled7 ~ ·TI-;;~ .,ii,, ,.;h,,J,~t t\ie .;&lui>en 'Who_,_.~ IO illeg;l ,CfU..,
;
Eve-C 'ju CUC Ofillegil s~es a dininctioll bas tietfi"attcmpr/4d to!l;>:e .;ue fflwled tO -cra~·for the tt~ ~i~ and whetke.r the'employe!

=~
made liei-v/~n(i) illig.1 1,'uoju.,tifud i~, W (~'illipl..'.od iu\iuscifi«I c;.u;;aju.~ discip1ip.ary action ag~t'a&ultini 1':orkmen. ·
u rikc. It1na1d ilut a·sirike may be technioalJY)ll~·b ~ it u:lil f
,,' (a) W4"~ Th~ Supreme~ has held that if~c° strike iii~
~cont:t-1Tcation o f th.e pm'Vi.Q..,n'q of thlt Att,' but ~ - ~ alb ~•t 1
-u well ~ ju.st.ified, thc workm~u arc cr1tid c~-to wagc:s fo t\the
- Jc:d tO·a'rtrilce~ Often f.nikd qu.cstioti,'of-leg[I Md illegal ck;i,l.ah,,
period¥ strike, Oo the otbe£ \lnk• ~•i""~":°
,,a strike may nOt be unjustificd-:IS 1he ®ncluct"of the WOrJur~ n.ux
b9 objeetio~ble or their behaviour nuy be •iolcnt:~dii the other ha;id;
, ffl'ikc may be illegal Due it might have li~er1 takch rooout'$e to for
hand. ;f the io
the workmen are not entii:led to the ...... forth~strike ~n&l.
The wd of !orce. violfflce o; a~u of sa~°;ta~c ff10n<:' t? .~Y
:91
workme.o during a strike peiiQd ~·h:ic:h Wf3 ligy and JU'flf~~,..
good:ieasons and ¢i'rried o n in an orderly a.nd'pC~ct'ful ~~- Ii ts
woukt disentitle them tO wag'es for s:trike1\>tribd (0-¥fflk.•dam 6
lor these reasons th:1.t even illegal st1·ikes uc Clissif.ied at' justilied 'a{l(i"
T_ra &takv Jf~m {196~ J. SCR 931; <;~011 C i ra lfd
0

"

~
,mjustifitd by those who admin.istct industNJ Uw. • ' · l
(/) l• ,v W.,.,t.,.n (1978) :l S€G iS~J. •: r' , ,
~
:,
' Hbwevtr, an iUega1 urike ispn'mafad, 'uni~tilie1i1 "1-d thc«!o~
ihe qti~ion of just.ifiaition of'illegal -strike is irrdCvanr. TIA,}~~~
This positioo of law concinu·c a upt;o tl.990. In &'ef~ if' ht.-k'~ v. .iJ:S.
K,!a,,a/a (1990) ◄ SCC 744, tbe·Suprcme Court invo~ th_ e doctrine
:, 'f1t,~ 1,nha1 a rtrik, iJ illt.iJiJ and a/ tbt ram~ rim,J111ttjied ra§1t()/ bt !,ppr~
of 'no w<,rk, no pay. Is held~~ ~ the ~'is leg"1 or ilJ!l\,l•
.•,. ~~i;._S?frcme Court in India Gtmml_Nd_dgth011 U Bt!i~.~ L:d
(1)
C. . .: , ;f:.i. '
~ •• v J;/Jlir.W.!.!.m (1960) I LLJ 13 (SC) clar;fyU1g the a.bov. po,,twn "'
;:;: U.w obfc-n·cd th:n "... c.bc law has made a dlstioction betWoc.D a $trike ' , : _\~-... - !?
'7. \/'ffi.t_aro tho oonMtqUoi-.c.o, cif an l"-9111 t,trlk• for o WOl"k7!\9n ~o pafflclpd.H
:::,- ft' wliich ~ :illtg;d abd one whicl:i is n«. but itl1:1$ o o t - ~ ~ ~ D "
()
Q)
bet~~:n·,an ~~_,:l
strike ~h~~ rn~y ~e $aid ro ~ justif:iable ~ o~
w.hicH IS not JtUti6able. l'hlt dim.nett.On IS n.ot w.unntod hy tbc Aa) ana
1.i•an Illegal ltlil♦? Oi&cuM. t,;;.L "(__' (L;C,f~llt fS~J
"Tod"Y· thlt otganised labour toos acqu~ ayon tho ~,:.of ltok:llng tfle , obei:~
•fhroe to n niorr:, ' by wtthhold2tig; l:..bovr and thereby eoft'lp•,:11'13 tbe
3 u,·""PhQU)-: mlsco·nceivcd. espcci:dly in the c:tse of ~oyces in :1 public m•~IH!te to ~ In to their dtn'lencu ~ r reaaronatire or Ufl,..10(,ll~o...
CriliQlly 6l<an'!I,_ the e t t ~ t In lhe liOhl Of judicial deti&Ot1♦ •AG ... wbotMr
(/)
()
Q) st':
~ -.scmoe:•; • • • •
. ·r.r a pelie.y,Of'HOWOfk"'1PaY'"ltJ~ ._,01,_, . ~• {D.V.~fot 0.~
:, Ai. wollunen etltiMd to WflSI" lot ~ •lion In leg.trll(i.Ql:I _,-.,.,., ~-
:, # :• , (O.V...zo-t-1/i!)fq)

';.;-jf.;:~.__ __,i.;,ii•:;,Jr ~
(1)
~

.~ ! ,_.
 ··- -
- - .. ··---·- ~
(I)
C
236 Strike, and Lock-outs 237 C
tahour Law - I
the workers: :a.re ii.able to lose wages for the period of ~u-ike .ind 1bc rules in that behalf an breached. For then. the act-ion is
"'
<)
(/)

liability to l~c w.1ges docs uoc either mak~ tht- ttri.kc ilJegaJ as a WC",il:pon
or deprive.the workers o( it. When the workers resort to it, they do
so k 11owing fully we ll it$ consequeue<?s. The Jeg:a:liry o f a sll'ike only
s.l VCSthem from a disciplinary ;;ietion s:i.Pcc a legal strike.is recoga.i.,.ed
:is 2 legllin~ te w t.ipon in the bands of workers to redress their
gricv-~nccs. lt appe;trt d1;;it there i.s .i confusion between the nri.ke ;is- ;i,
legitimate >a•c--.1.pon in the hand,,; of th.e workmen and the liability of
deductlon of wages incurred o n account of it, t,;,•hetb.cr the n rike is
Jesal or illegal'' (S~w,mt J.). This decision was given by the Division
Bench of the Supreme Court wd ther e was :app·ar.ent con!lic::.t w-ith
earli~ Supretne Coun decisions. ! though leg,]),
. '
T he m.tttcr bu been decided by a Constifution Bench of the
Supreme Court in ..fjHdiMlt &"A: v K Um~J,N~ (Am 1995 SC 3 19)
where the Supreme Court endorsed its earlier di~ta.
Lc:~01,u; C..Sc: SYNDICATE BANK V K. uMhH ttAYAK
(AUt 1m sc 319) j cmptoyer-employee rc-lat.ioruhip a.nd invoN«
[£very .dispute between an employer and cruployee ba.s
to take into c:onsidcr:ation the third dimiruion vi-z.. the
ioteren of l'hc ~ociety as a whole. Tb~ tt.Ssation or
stopp2ge of work whether by the ~plorees or by the
emplo)•er is dctrimeobl to the produc.tioq :md econo-iny
.\11d to the well-being of the $Ociety as a \\•hole. It is for
this rtUOn tb2t the industrial lq;islatio.n while not de~ying
the right of workme-n to itri.ke, bas tried io )"egubte it
:i.loog ~ ith the right of the employer to locko'="t ,:and
has a}so provided 2. nuc:hine,y for pc3cefoHnvestigation,
settlement, arbitration and :i.djudfoation of the dispute.,
between them. ·.
'W hen the faw or the contract of c1nploylllent or the
sc.".rvicc rule, provide !or a machinery to· rc.$Olvc the
dispute', resort to strike ot J0<:kout as a direct 2Ct.i on· is
prinu fac;ie unjustifi~d. This is, partiCularly so whe-ri the
provisi(?ns of the law or of t-bc: c:ont,;ct or ,of the scrvkc
also illepl.J E
In c:his case, the question !or considtntion was whcth.e r the
workmen who proceed on strike, whet.her le~ or ilks-}. ·.arc
"'
(.)
~
entitled to wages: for the period of scriite. The Sup~ Court .<::::
k/dthat: ;::
@ the workmen ue entitled to w~es if the stnke is 'O
(I)
1ep1·a nd ju,tifocd; C
C
(~ the workmen are 11r11entidtd tO wag:C"S i£ the mike
~
;. ill,gol (~• though ;,,.,med) or uajwtifu,d {=n (/)
The Apex COW";i obsen'cd:
(1) Tbemike·asa weiap<>n 'WU evolved bytheworkerS
a.s a form of direct action during their long st.rugg1c
with the employcn. It is essentiilly a weapon of
la.st resort being am. abnormal aspect of the
withdrawal of labo\11' disrupting production,
services and the ,µnn.ing of the enterprise. it is
abux by the Jabour of their ccooomi.c power to
bring du, employer to ... "14 meet their wwpoint
over the dispute between them. In addition to the
total ccssatioa. Of work, it takes various form;
such 11$ wOl'kiAg t'o rulo, SQ slow. rdwil tO work
overtime wh en it is compulsory and a pan of the
conL.-.act 0£ ·employmt.Dt, "'irritation strike• or
staying-at ·work but dclibcntdy doiilg everything
-o,rong; "ru.nping•sorc strike" i.e. disobeying the
lawful o ~ .\it~n, stay-in aod lie down $trike,
=
(2} Wbethu du, stnke;, i,g;II aad justw,cl arequ,stioas
oC facu to be. decided oo the bisis of evi(Ul\ce
on r«:Ord.. A ~trike may be illep1 if U c:ontnVt:nes
th'e provisioru: of the Act or of any other law or
of the tCrms of employment depending upon the
 ;;ta t• :,x ,·
Zl8 La,bou·r Law • I
.
l
I . $,trikes
~ -
,.

and ~Lo,ck-oUl.$
~
;,g,. I
~·
,, -
·. ,;239
a
foct; of each =e. Similiuly, ,uik, ma~ be jusiliied
, ,i.:t.f I,,.
. jusql~:.s or odt~~ -~ -o\the action<;[' · _ ~ pl,o)'Cr1
or unj~tifiod ~ . o ~ upon ~ 'eril lteto~ sticlf Dr cinployttS has, theiefore. to be'cxamuied 9:Q
:lS thJ 'Servtce conditions °8fHi~ workmeJ . \he the ·g.nviJ.of ~>~iatc"tflt-i of the sociely·\vhteh such .,
nnure of ·demands Of the ·Workincn, the ¢a~ •• ,, '
act~n tend, t9,'~~'Jt. ts for this ,rnsqn that, tlte' ...
whi.cb. fed to c.he' strilce, the W"gem;y of the c-~~ ·, Ac, place, addi~o·ni) restrictioru ·o.n strikes arul
or the demand$ of the workmen, the reason for • ~--out in p ~ uuJ:ty services. ;r{
not moitlng to the <fupute' m<>tving nueh.indii
(5). ~itb the emergence •of the org.1.nUCd 'la bour..
0,,
provv:led by d,e ~ or the coouuof <niploym,ni
'·ortb.e~ rules aDd rcgulations;«e. AD en<pryj ~ y m.publ.i,;f<.._.__.,
L___,_,,_, _ arul " blJc ,,..:,:..: '
_ . .,........-.. pu - ,,
Q
jervioes, rhe ,old, &,lin.ce of eco0:omi2' powe~
mto thc..issucs.;, prin,arilt uivcmd with mdu,ufil
;,Jjudiation {and not ihe~ Court), it bein[i ~
' u,du,tri>l di,putc. . r
~erw«n the· m3JUgC~eb.t and the workmen hu ' ·
µ,,dc,gonc • qu;,lit,.\i.., c;h,ngc in sucli - ~ ,
. '
0
ll'od.y, the org,.nile!I J•bour in the,;, in&titbtlonl,
(3) The.strike or Jock-out must not. be resorted col . l,.a...quin-d ~ ~ ~ ·cr of holqirig t h e ~•
b~we the •concerned party b2s i tuperior · ~t brge to ransom.;- Oy Withholdi.ng ,l:i.~01.1,t and l-
1
bargainlog power or hiu die requisite «QnOniict' jbeteby COl:'llpcDfug ili6 managcmt:nts ro give iJ?i to
muscle to compel the other p~ny to accept 4h. h
dlcir deinandi •lietbe'b iaionable O r ~ .. ,
demand. , Such indiK~ r e we o! pOwCr is ~tis '!orgon~ ziwty tlnle$ js tbatu,apinst the ' t
.noWfOg but ~ '1-i:..'t.wu ~! the r\llc ·of f m.ilht I., ' ~ploymen~t ind~be. tttvicc cond:kiom availabt~ 0,
righl!'. In consequence, are lawlcssne$S, aa.arcliX ,o the org,uwcd !.i.ouda,these uodeitiking,i; ihm -
and eha:os i.a the economic .a.ctivitiC$ which are are mHUons, 'o/,,,h q ,# ~ eitbu unemployed,
tncist viw :a.nd fundamental to the survival' oldie . ondoremploycdoc~on i..tthao ,_.,orily I
so~itt>:· It is for this r~n. tha~ the in~tr~ r minimum remunentio'A. The i!mploy~t tlt11t t
kgisb.tt.00. while no( denying the right of strike.to : workmen get .t4(j the profits that the ~ ~,Yer~ : ~
workmen h a.s tried to regu~ate it along with the 1 earn. ue both gc.achted by the utili;satlon ol me·
(/) right of ~mployer to lock-out a.od has alSO 1 rdourccs of the:.~~~ in one form Ot th~ othe-r
provided ,a nu.:hiiie,:y '£or J>CaceAA inve$tipuon;' ':
~
:, ~ ttJemttit, arbiuation and adjudic~t,ion ol the t
w ~ it island, watef'; electridty« ~~ i
:, . ~ t e between du:m. t £lows either as ;Share capiw, l02rufro~ fiauaci;J,
(1)
C.
~
(4) Whe,uhere ~ macbioery for5Cttlemem <itwspt11<$,
tt$0rt to 4trike or lode-out witliout having recourse •
I irutitutioris or ~ :u ·d exempiiom: from the"
Goverrune.nts. The resources are;~o;be uted for.
the well•beirtg; !)£ aU by ge0:erat:ing more
;:;: t!) the prescribed mca.D.$ iu~njutt.j.fied and when , ""'P,....
'-'-'--t'i/ia-".:C...'..t.:-.-1 - w :'w,I,
:::T 7-UP,:U. . ,t"~W.V ~eq .
there is breach o( rules it would be illegal. ~ distrib~pon~]hey~u7 ~(!t meant ~ct be us~ (or,
()
Q) Tb.ettfore. the strike or ~~t-.as a we-apon 1w J provipir:ig cmDlovme1u, bectu $t!l'Vl~ cood.it1onJ
I ' I> r'r •~
3 to be us!'!d .spari•gfy fut ttdr!.ss~ of · u.rgent and 1 and profiq Oa!°Y;•~~ S(lmc. ,j; .,,
(/)
(')
available or the available'me:uu: have failed: The 1
, p rcssia.g griev.1.nce• .Wh~.o ~idler oo meant :a.re .II (6) In th.is task, both tho
copital u ..:! the )>'b oo, ,te "'
,1ct as the trustOCS o!.ihe said resource.9 on beb.alf
Q)
:,
:, ·'( ..
(1)
~
•
't: ~
 .. -- ~
(I)
0
C
'2-40 labour L.-.w • 1 Strikes · a n d · Lo ck- o u U 241 C

ofthe sociery ,Wd use the-m as such. They ;1re not an d a.iscing conflict o f ;udid:U opinion on the:.que$tiOn of "'
<)
(/)
co be wasted or frittered aw.1y by strikes and wagCJ for the period of st.rike.•J
'
E
lockouu. Evc:ry dispute berwttn the employd" :u,d 1n .4NZ Gri11d."9:1 &,,AV S.N. Khatri (1995) 2 LLJ sn, the Bombay
; the employee has, the-re-fore, to take into High C oun following the decision i.n s.,>·11dimu &,,11,U case. held tb:at "'
(.)
considcraUon the third dimension. viz., the ktcrem ouce the strike is held to be ilk~ die question of justi.ftability doe$ nOl ~

o f the societ.y .lS a whole, puticularly the interest .<::::

o f those who are depri"cd of their letit.imate
basic economic: right;, and a.re. mo!"e unfortunate
than those in employment .and management. 1111$
is t.rue of the action in b<>lh p\1-blic and priv.m:
se«or. Bui more impcntively so in cbc public
geaor. 'The m::i.nagemrot in the public seetor is not
the capitalist and tlte Jabour an exploited lot. Both
:arc paid employees -.uid owe thefr ~tcnc,e, to d~
direct investment of public fukd$. Both :are.
elCpectcd to represent public inter~ts dir«tly and
h2ve to promote them. j ·( b} liis,nissal of u:o·rltmen - N orl'nilly 12ki.ng part in illegal
In the P!esenr eue, tbe Bank employees resbrted
to sr.rik.e
dw:ing ooncili:11.ion procttdings despite t:he Ba*'·s Circubt for
ded1.1ctlon of w:1.ges t No work, No pay'). T he strike was
resorted on Bank's failure to implemei;i.t ~di::uely the
serdement arrived .at between the p:mie$ w nf¢fria,g addn:i.onal
bmefic:s to the employees. The High C-oun ~ ded that the
strike ~·as lt~l and justified and thus g;ive dcOSion in favour
of the employees.. But the Supreme Cou.n hdd diai.. the sinution
wa.s not such th:n the diSpute could not a't!l~i~ resolution by
kg,l u,eclwlism. The Ai-Court refcrm! t he dispu,e , eg;uding
deduction of w.1ges fo~ adjudication to ~ppropr~te ;1utho·ri1,y.
In. this case. the Supr"em¢ Co1.1n has also heli th;a,t. there
is no conruct between the deciS:i.011 in ~ h t case and carl.ier
<::af.e.s. bec-.aus.e in Kr/nY1/.2tease. the Supreme <::Ourt wuonly
commencing o n leg.1,J and illegal strikes, ~d the question of
w :iges £Or justifiable ~nd legal n.rike wa.s not involved or
conunented 1.1pon, Thus, the decision in ~ } Ca,e has been
exp1ainc~; harmonised :ind reJ£rmcd and there l$ nc, present
'·
u ise -:and the <=:mployees: in public. utility services -:are trMcntitlcd to seek ;::
wages for the strike period unkss they prove tha~ the strike wu leglll
'O
and junuoed. Similarly, held LIi H.M.T. I..Jd V H.M.T. H.,JQffe,~' (I)
Ano:. (Al'R 1997 SC 58S), that a.n i.Degal strike., even if justified., dots C
C
not cri.tjde the -wor~ to wages.
A lock-out in <:On$equence of illegal nrike [although. declared
~
(/)
wjthout following the procedure prescribed by See. 22{)} of I.0. Act
or Sec. 6(2} 0£ U .~. 1.0. Act] is both {·eg2l ~nd justified. Hence the
workmen were n ot entitled to wages fo r. the period o! .such lock-out
[1-lA.L E.mp/0.)WJ' u.;,.,,,
v P~.ddm4 Ojfiar (1996} 4 223). sec
$trike amounts to misconduct o n the part of work.men for
which t hey tnvite the punishment of di$mis$11. Whee.her the
employer ~ free to imp0$C the p u ~ n t of dumisu.l irom
service i.n such cases bu been subject. of judicial cq,ntroveny.
IA M,,d,J Mll/s l.,d. v 1)1,,,,,,.,,J,,, (1958) I UJ 539 (SC), the Sopn,me
Court upheld the right of the em.pl9yer to dis.miss from $etvice the
wo r kmtn puticip.a.nng: in illegal strike u.odcr the provisions of the
Standing Orders o f t he comp.any. But in l111U## Ct11"11I NtJJY§lfi.o# C'
&,/IC• v Thdr W.,..tm,n (All\ 1960 SC 219), the Apex Court held •th,,
mere t.aking pan in an illesa} Strike without anything f\11"\her would not
necessarily justify the dismiss-al of all the workmen uking part in the
ruike and ,ha, it was nccessuy 10 hold a regular enquiry after furnishing
o. t.n ChlKakur.m TN l:$r.t.,• nd ~ Orf•VH, 111• v1e..- i..,. It tflet tne
strike mus-t be bQth legal •nd JU"1m.cl Ii> .nm:. tr,• wo11r;m•n to tne W"eO'ff ror
the period ot strike. ...,.._.., Che 1,t1tir <lecltion i'I r.s. xera-,.u, l'lh i.k•n tne
vew that wh.ihtf tM _,,_. la t.;al or lltOfll. a,. ~ployff• .,.. not el'ltltled ti>
- ~ for ll'.lo,~riod or s.tftte, llt T.S. K,fr.,...,., \M q.,.._,,. ~ th♦
W#S jut,\iHed or not, WU not r,1..d .,,d, lho,.,o,., the t1,,1rtll♦f CI U♦SUOl'I
•tttl•
'MlotheJ the emplO)'-♦I ~ r• ♦RlllJ" &o Wllgel • tt,e terlk• (S jlntifl.C,. WU
neither disCIUHeCS nor answ.,.ct
 ~tq I ICU Ulfl""

f
I
212 LabO ll f La\~ :~ I
F
~
,
,Strikes a nd.1 f ~ t -outs
'
I ;' <

243 ·
-f.
1q
chargf 1htt~ t·o ~ch of tl;lc workmen:SOugbi ~·o be <k?}t ~-iih {Or. bis tu~ dlitijilirlary ~ion ;.g1lirut lhc':_:i~Bur th, ~ : g=<n!
conif.l}' \tfit!i• the terms o°f the s~ctlnld}c:!en.
.:.U.f' J
pan~p;at~oh 1n the strike. There r;rµYbe reasC>m fOr Jistin~h1~ the
cl(sl?·5-(tlfos~ ;Vho ~y b~wie :M:ted a? mer~~ 4f.iV~n. cattle from !
,. • • I .. ._
"~ .
•,+-~ •
lo 'G'!"""' Sud T•bu ,. G.S.T. · M.#:,l,1r Sabba (1980) I 1,.1..J !al I
'
.i
et
tlii'Me~-wh'O J;.3ve-'taken an acth:C ·p;ut' it1'·fometiting the trou~J&;c;1..t1d
~n..,r:~ttlf"g ~orkru.'!n co jdin $.\tch a. !trike, or havf' taken j-ecc)Jr""'e
- .,.,. ' •
- {O • f
1
(SC); the: work~ ~•eat.on:) tqt:al. s~-and in consequence the ~
man'igCmc,m te~tcd thcir scrvicC$.t,T1ic,Supreme Co\1l'.t :ordaea t~e . e~
violmce.•
· • -.,Ir.'~
· ·
further obs~•cd by th.e cOUrt in_~~ abo~•C .c ~ ~ ~~e
ol an illt!g:il Suike thC only question· ~f pr.-iqic:tl impomnoe w ~ be
rWl$ta,tcm.ent of ~ho$C workmcn.,,,i-bd• were not fodnq ~ilty of • :
misconduct, after 11 J>ropcr enquiry being held. :rhe 0>un ()~scr(~ "A t:
mere p,articipaW.on {a-Strike without more is oot enough (or MpcnsiOn
01 ~

the'qU31ltum 0£ punishment. and to ~idc it' a dcard.i:stincti.oa hat to or dismissil. PuOfilime.nt of dumiual· from service· for p-.1.J1ivC @"
f,e~ c ~twJCn vi6let1t and pea~}',.;1 strikers. 'Violent still; ije puiidpitioo in thejil~I and JUSW:~ sirike'by not f'epo11jng for di.iry· •
t~~ 'W o/~ ~bo'ob.ttru~ the 10)'21 wO~I: ~~~~~~~e is~proper. Mere ~ure to ~rt.f~l cb.ity!~Wben. ~~i!5 ?"' d~_,ooki Q"
work Of\ who tile pan in viol~l'.lt demotutt:lnoni ahd a« m dC,W:~cc ncccna,ily mean i!i.soonduct. T here must be a.ct1vc 111div1dual cxc.css
oE i¥ ~~ ~~i:: Pe~ful $trik_eN a.re\h~ ~ Workmen o/bO ifa, i~!1n such anna.st~g the Wljtistificd a s ~ of the strike e,g. violt-ncc;,_ ~
·t
o'., ·
part1opitof$JA the nrike. The V10lcnt striltc.rs ~ «>be c:blr W,ilf
~~y ifud 1thIC purushmenc of diainis~ <i4eh.J.ge or tern'Ul1at.wti' isas' ·
mre $2bot?ge_or other tepre~e.nsilile cole."jTJi~Court thul,held ilia, th.t. 1
9;
, llCUon ~a.ken ul\ae,Jhe ge~ law ~anding or~kt~ ll!i!g.1~in •
t1b~.~~~ ori them. It would ncidit~.6e in, t~e i~~r.':st'~(~<lp~µj,9 4
the absence of u,ruv;llu,J,chorge,<h...,, ~ r hearing wt 1"'!9.,.J~od ·O
to effect wh!)les:ale ~nuss:U of all striking w·o rk.tneo. ~ . if!ouod guilcy. None of lh..,,"<teps haviag 1,.,.. -.km th, ,,
.., the
tlor ...."'orkmtn
" .... • ' • -r, ,._ h ' I orae:r
.L • ~ l! - ~.J ' "" ~·L•,,. !.ll'J;I. ... "
r,·· t!' ~c of ;t r ikt-, the (!mploy•r ~y b:1r the,._CJ'.!U'Y o( th~ S!{'a(e-.r; w.sc .~ were not Just~lC<1 lrl.Lne prgeat oat(!o. .;
0~
Wi.\lµo tile p ~ ~·by adopting legitizmte nJth-US in tlu.t b?lial£. _fie .f'li.; position of law, cl:ere:fore; M!ems ro be thai, if the~ att , ., _.,
imy ~ill upon the cmployce,; to V2C2.te. i nd, on tbCir refusal to41{ s9. · Standing Orders prov;di.ng for <iimu,,il, dfe striking wo~ may' t,;;
fakC '<.lul ste.ps to suspend them from cmp!by"men.t. Thds'he.,may dis°?15sed ~ 2ccordan~ thettWith.,_Bl1{ in .th.e ab.sellce ~f such ordeis:
0
,
p~~ t9hold prop« inquiril:~ ~~tot~~ .s f ~ 0r~f@~ lo~ 1mpo,~g -~' punuhment oi ~~,s~,,~n would be .a.tteuary to·
pas_s· prbpu orders aga.lO$t tbeni (PMrµ iJati._Mil ll.-tn! VThrir ~f.)f;M"tM ""'• ihe uidividu,I workmen w1tl\, i:h~•btet •9d th<Jl to hotd Q•
~ii 19.60 ~~ 160}. The workmen liy ~i~dy tgbing on $tl!k;-ag ~at regular; e~~iry to .~terrnine Ytbet.bec '-L.cy 1Ve1'e peace4al ot v,i.okn~• t.
(/)
~wircmploymcm. 11,,s, t h • ~ t c =, b y ~ g
i riew u:ri:n OfCmployµitne, unibter.illY conver:t the ab,eoce frOtf\ duty
~ . ~rdore, a ~orkman ioua.a°~cy oi misconi:h.icrafte-r proprf
1
8~. :;-
b~
~
:, o f ~ .lotkcrieo into abandonment of their tltiploymem. How~,
enquiry can bedumisstd . -~f"
Ir may.be noted th.at on ill~gal strike~ management calc;.rry. on ·;
..::,
41
:, u'.hder'tbi. Swtdittg Orders, the
. .ma.ruag:cnltn.t' c2.n,~i.f. the rt:rilce'is"JkgaJ,
t. the work: o f the foLCt¢!Y. by e-mployi~ other wQrk~n (OM'.hd1t.,·dJi -
(1)
C.
r
Aw11 " u,,,.. c,.,,, <i!i11) ) sec 646i. u'i!lf ' @
~ •-,d The wo,.k.tncn in the Stt;t; BJ~, .......
c$uppty Bo«rdl r
t•
•· es :
;:;: ,SV _.."A~Wllte. 11nlff, ai oontrawnes arry e1al\l10iy PfOYIIIOM, WQU1d oe !figllt Bi..1.
Q..l.. _ ,• publiavtili.,;•~
·t • •.
:::,-
()
.,fi;J. •¥tn • Wike m1y.beoome u,..&tlfied unotf' otttaln drcumstlnCH:'"ihei¼lt'I
II! l!iegol strite can neve r beCOC'l"!ft, J'IJ•tif!ed, J'~ Qh!y; e_1,1estjOft:,O( pt-ctieel
sorv~. d~~aod &om tb\~!f'!e~nt chat tho/.s~iouJd ~PIQd·. 4"
more WUC$, Th ctr denum.d l\'&S foe doublo-tbe _,.,,.,J.c·1bcn
0.
Q) , ~oiJonoe thot may•- ill t11• cue or.,.,.u~sl11k• WOUkJ.bo,IM~~ or ., - o, ~ - • l,i
.'· t;
'."Ju'-f they,were Mi~g piild.&! ,~f"'!'"'"ase:ment '?Jd not ~~pt
3
(/)
(")
quentu,mof Pl/fffah(rl'IMt wtllctl h. . .JO bt' "'°dulate d ~ aC:oordl nct w~ll tht
tads anQ. clrciJIMUIIIICff Of etcfl ct.M• (~ G~ Navg. .S ,~ fl:?'• L.t.d.'
v,7116.if,~ f ' ! (11i160) I U...J, 13i pet $fhn.a•J.J: CJtticaay ~IM N !ei:10\0o
their demand. Thcreui,tn. the \X~rkcr's Union gave d)c notf._,c. ,
10 tM tnan3-&ement on l•IO~S th.at the)' will go on mlk~ from
~· r
fC,Ll -i~
$1iltemcnl.
•
Q)
:,
:,
(1)
j
. ~
~
~

'
 ~
(I)
C
244 Labour Law - I

AM IT~B-6040003 50
C

• l8•10-9S. Butthcywcntonsuike rrom IS..10-9.S. Tilcscrike went "'

<)
(/)
· on for III month and u.ldmately a settlement wi1.~ ~ached beotwteR
lhe union and the mon:i&cment. Afier tile .seuJemeot "''Ork.mCo E
dcml)n<l m.,igcs for 1h-c s trike period, \>ut the mMagcmeot "'
(.)
~
rt fused. 9 .<::::
(a) D~si whe1her I.he strike was mega! or un,h1sdficd. Lay-Off Retrenchment ;::
and Closure 'O
(I)
(b) Are the workets e111hled to the cl;iim of waa,es f<>t the strike
C
· period? Di~uss, (l.C//- 9J/9.SJ C
A.2. In •the present c.i..sc, the $t,nke is iU,iftl under Sec. 21 ~$ it ~
(/)
cont.r,1..-e~ the provisions of Sec. 22{l}(c:), acccutli.ng to whiob
a ,tfik!! in~ public utility $etVice $h~U nOt be resort.Cd to before °Lay•Off1
the Pate of nrike specified i.n the notice of srrike given b)' the L;a.y-off ordinaray meuis t~mponry dismissal of a workman (on
workmert. account of 1emporary closure of business due 10 economic reasons or
An illeg~l st..ike i.s p,imttfa.'1$ unjustified. Th.is is 1nore so in the pre.sent otbcr:ivise). The employer-employee relation~ not come 10 :a.n e:nd
~te, as the· ~•ork\!r's demand for double w;1.ges if unreasooa.ble. but is merely iuspe.nckd duriagthe pe-riod of eme.rg:ency. Under the
'the worke rs are ,w.t enti-tJ~d to the cl:i.i.m o(~wagcs for the ttrike CQmmon law. the employer had the r-i&ht t0 tcrmilu.tc the 6¢t"ica or
period, as the m·il(e is illegal or unjustified [J)#~t .8,:mk v JC Um/Sb a worktm.n in «ruin $ituations. but lud no ~ t u right to lay-<>ff b.is-
N ,!)a.t). j workmen. The Industrial Disp\ita Ac:t, 1947, has modified the oommon

l l:i.w right of termination of service \O one of the temponry wspens.ion

of the conuact of employment.,
Sec. 2(kkk) ... As per Sec. 2(kkk), the following att salient fcatur~ of
b.y~ff (with its gr-amm.a.ti~l variations- and cognate exprusions):
(1) A:'t employer, who is willing to em.ploy, fails or refuses or ii
un-ablc to provide. cmploymendor cusons beyond his control,
=,
• (i) shortage of coal, power, Or r,1w nuterials, or
(ii) 1hc accumulation of stock, or

I. O~N ltle del'inlliof\ and law ;ela.tinO 10 (..;iy-otf. ID, U•.Z010J[LC.M41'9-S1961

'The power to t;ty-otf a wcrt'rnal\ 1$ !'lot olnheteril In tt1, def.nltlon of tty~ • nd• r
Soc, 2{'1(kk): lO, Ac1,.19'7. • co.u.-.2011no123
wu1e a •hort "°'' on 'Loy-oft". · tLC..fl-4~

•
 .'
~
Labou r Law • I
[ Lay:~Off Retrencti1rteJ-~ and Cl o&u re. 247 •
. . ,;• ': "1 ~ ~

~ the brc:tkdo-w-n,o~ machinery, or I·, . m~·~c on ~ t ' of .-. siru,nion, ~!~F ~ e<>ncrol,,oftlte emp~oy,1 j
(A1'11f4UJ1t(11I #Ktiirbtlla Er.111, v f&i~Manibm AlR 1~6:0: SC 893,J, TI;it
{iv) mruraJ cawnity, or
{v). any other connected rcison.
~
1
worcr-s·'the£~~. refusal or in~iljty ~fan employe~rkn it de-.u-
th:it th.e uner:np(o),ment h:as to .bC' ol\ account of 2 awe whidi U'
o:
(2) A wor~ who is sode#rived bt~mpfciymcnt mUSt &- such . indePeb.den.l of 4ny action or in.a.cilOd on ihe p-.u·t' of~e '\\'orkb~.fl E)'
whose name is borne on ibC~~~tc.r rol.l.s 0 £ htsJiilitffi>.fiaL theffl.$~ v~. F~cr, in tbc ~~ti9$ o{ Lly,-off tbcrj ls ~o ~d~•;atii'>n ~ ·
establishn=t. · l wkateyer that n ~ot1lcl cootLM1C_-f~ a p~cubr po11,m~of tune, fl .
·• ()) The ~orkm.n mun no, h..., ~ !«renci,cd (ic. the J !ITT"ct :,~an~al 1{ri.o'gcocy o.r ~oPP.a~"~f fuuncl';tl ~ c e eannof I 13
of employment must coa.ti..o.uc co subsist). ·
; _ conruwr.e • gro\jndfor lay-<>(! f.1:IIIJ!!c1I'""1k1 /.JJ. v S,:,1! tj.1t.P. (1?93) .#
M~~11tl()Jt..: The e:xp1anation attacb·cd co the aub-s«.tion bys!<iow:C. 1 LLJ 60JJ.. Ho~r, when \h~ ~~sudden sh1m:-f in the prioc-1of, .r. I 01
~hatc;:W, ":'or:k~ whest" n.une ~-~ornc,!=,n the muster roJlsfofthc
- an4_,u, :stnal. cst:a,bl1.$lunent and who presc.nm him.self for wOr~•ia~tlic:
c.su~!~shintnt at the time appointed fo'r i:h.c 'p~.rpose during n;orr!U.I
. ..
the tea itt the Wbrld Market wb~ coii\lnued for cw!lrly 18 months;
• : ' ,.. ,. "•"
tl\e/1. ~ wa, held to be a rel.SoO lje}•ond the marui.gi.mettt•s control
[ Ct1f,.-bar ChaJJ $,_bm111iJ: U ,rw,,, Silllfllr,%,}/IJJf v Ma11P-,z,t~?( Ta E,Jp.'r ~
'

-~
"'~rlciii(liow-, on an)ld;y uul ~ ""l ~•"! ~loymcm by d i e ~
~ithin ~o ho:t" of _h u so prcsenung ~ .sha.l.l be deemoJ~tO.fuive
C..'l,f,, /;m 1966 SC 987).
~. . ;
;0.t ••
f~ '1f
i, ~ ~'

ticen l:t.td-off fpr tha~ day within ~ me:tning of tht' cl.\use I'- ' · Pr•l'"~UlfH!s f6r- layfng off • w~ ~ 2 / lay-ott •~ei,satlon
4

. . ., I The i,iil/mrw D lspures A«, lliiT,l i , j ' ~ - p/.;fu;,,n, r.gudlng

i PtfMdi.dcbat if the wor~a.n••iostead of being given employ.,nc..nt
a~ the eommc.nceme1;1t of any shift for any WI)· .Lt ll$ked to prese.nt lay'-offin Ch11iptcn VA (Secs. 2SA to.'E )'and VB. ~1 .
h~lf.for the purpose dur,ing the Stt01td half of the shih for the da)' R,.uiing Sec. 2(kkk) ,og,thtt, withSte. 25A. the f o ~ - f u l .
~l'" ~ - ~,
,and JS g,.vcn employment chen, he shall be deemed co ha,;e bei laid· prO-requisitts emerges for Jaying•ou a "'=ork.rn2n:- :, .
off only for one-Mlf of that day; PrrJPidtdf1M.bfr.rlu.t if he is n~t given (a) The number ·of workfflen employed h\ a.n industrial
any s~ ernploymc.nt ~•en alter ~o.presen.ting h.ims:cif, he shall dOt.be est:ablis.hmen:: .should not> b~ k$$ tl,.M 50 on.an ave.rage~fr,
(/)
de~ ed to have been laid-off for tbC sicond hilf Of the sfiift fOt'""t.h e
day and. $hall~ entitltd 10 full basic wAgd a.nd'&:arne$$ allow~ for
working clay in the prteeding:hili-ndar moot.ti;
• • '<"t'I • '
-
' • a.
~ that p:1.n. o! the d:ay. (b) The u>dusuhl cmblishmeot,liotfd noc be of ...,oiial clumi.r
:,
· ., F~om the above definition it is tj~a; th.it •fay,-o!P is oc~L$i,o.nCd
or. should 0:oc be one in wliich work is p\:rforffltd o.ti'l£ 0
:,
(1)
W ~loycr's failure or inability·~it '3.CCOUOt 9f~cono.mic rCuOns to
imenninently (Sec, 25A); . ._; • l ~
I
C. (c) The uncmplo~nt shoula be due to the f.iilU'tt, rcfuWror E)
~'Y~ employment to a workman whose name is borm: On die. niuucr
~ ioa.bility ()f :i.1n employer' on \lccount o( rcas:bJt.' ~yonJ'.h:is
~oil, I~ would, therefore, follow chi, i{Jay-off.j$ ooea.tio.nc'ct on ao¥oU:Ot
;:;: control (rl?,cre sh ould not ,ti! mdo ft.It on tfie part .o f-~~ •
::T Qf $trike, g~low o r -1bsenteci:sm of ..,orker:s in oJhe.r $Cctions o'! the
employe,j; 1
, • I • Q
oQ) csta~~roent, on which t h e ~ s:eaioo in Which ~ ~'t'Jrkers
'f{_,ere ]aid off wa.s dep qnde.nt. the n thei.r laying off.do 11'ct f-aU'.1I~hiii {d) T he name of the w-orkm~· sli~ d ~ born~ on tbe:n1~sr1 _ @
3 th~ Rbove dcfinilio:,. + roll ol the indwtrial escab,l.isb:me.o;; f ..
(/) ' . .·1
()
Q)
:,
:,
. t The. expttSS.iOil •for any other connected t'UiOo' has cb.b~·.
ce_ns~l'UN ~jit.rdmt tp,rrfr "Nith the ptectd.uzg. ex'picssioru. The rc~sbh 2.
.
Wh.8t .,. (ho •n•ntlai pr••requi• llUifOr tlylng
OOtnl)enaation? 1
¢11 a ~•r\/ l•Y•.~.f
(0 U:r,OOJIL;C:~it.1
...
a
(1)
~

..
. '~ ~
~
'·
_;;;.:ll'.__ _......_ '>!'Ii-...
.I 0

248 Labou r L,aw • I
{e) The workn\l\n ihould h;i.vc: pre$Cnted hi.m.sdf for work on 1b,e
es.ubltShme.nt :at the t.tm(\ app<>inted for the purpO$C duri.ag
ri.orm.il working hours;
(f) The workmao. shott1d n ot have: been given employment within
tw.o houn of his so preseniin,g him.self,
T he: c:11$cnti2J pl'e-•reqUUitcs for lay-off a;m,pcMation are a.s foJJows:
(a) EstabJishmenu exempted trom paying lay-off compe,nsatton
Tbe p rovisions of$«$. 2SC to 25E ol the Act de:il with 1.he lay-off
r.ompcnuU.on payab!-e to work~n by the employer. Under die 5Cheine
of the Act, l2y-off compc--nsnio.u ls p:ia)7llble only t<> ccn:a.in categories
o f workmen working in an industrial cst:iblishme.m. Uodtr Sec. 25A.
.1n indusuin.l establishment wh.ich employs /111 Ulm 50 workmen on ;'.IJ'I
:tt'l'r~ per working, C.Uy·in the pr.-ccding calettd3r month is not li:ibk
to pay compen.s,uion, Simllarly esubli,b ments which are 1n101:a/ in
ch~cr or in \Vhich work VI performed }nkn,r,~tmtfy are abo cXt:mptcd
to pay fay-off compenu.iion under Sec. 2~A.
C lu;')-ter VB m.1kes provisions reguding by-off in c~ses of
i ud\~trial establishments in which uot less c.haQ 100 workmen we.re
emp.loy«l 9n ~n -a.vcra.ge per working d~y for die preceding calendar
monlh. The distil?gu.isbing feature of Chapter VB is that prior permission
of the government is req~aired before lay-ofl. ~
(b) Rf9:ht.~f workmen for lay-off compensauin
Sec. 2.5C of the Act entitles a work.nun to get cJnvenution from d1e
employe.r for the period he is laid,off as lay-o!f is ~n action of the
employer :.1nd deprives the worker s of the qpp(frt1,.1oity to 'illOrk and
e;irn w:tges. Lay-or( is not a right confert.ed bu~an 1Jb/ig:;liM impo~d
on the etnploycr for tbe benefit of '°he workm~. T he ,·cry essence of
;a Jay-off is that it is-a tempor;,I')' stopp{lge and tb:l:t "Q,•ithin ~ te:1.SOmabk
period of tlme t.hc employer expects th,1it. t.he b'usiness o, indumi•
would cor.til:iue and I.us employees "Q.•ho h-3.ve been Uic:1-off be restored
to their full r-ight-s at cmp!oyces. .
Sefc;,,~e a workman mAy claim b y-off COm?('nsa.tiOn he must
fulfil the following condl1..ions::- ··
~
(I)
C
C
La)'•OH Retrenchment and Closure 249 "'
<)
(/)
(i) his name ~ ' t be borne on the ml.l$ter roll a.nd he ihould not E
', have bttn tttrenclttd~ ·
('u) be mu" have comp·~ ied qot les, than one y~ of continuous
"'
(.)
~
$etvice (as defined in Sec.25B)~ 'a.nd ,<::::
(iiy the wodunan. must not be~ tw4!,'(a workman employed in the ;::
place of anothei- wodunu1) or a cuuti worker. 'O
(I)
If the above .requirerr.enu a.re fulfiUed a workman whether laid-.off C
wuti.ouOu.sly or i.'"1tt'fflUnently, shal be J)Qid compei,$atiO~ for <lil d1ys C
d"urLng which he is lald~ff. except for suc.:h weekly holidays- as may ~
(/)
tnte.rVcne. The amo-.1nt of compensation pa)'llble co such workman
sh.ill be Rf'fthe tot~ of basic wages and deamcu aUowanee.
is
The above: nJc subject to rM limiu.tion that muimum period
for 'W'hi.cb. b.y-off compensation is ~yable ls 45 days during .my period
o f iz months, if iberi:: is an :i;gttemcnt co that effect (fint p,wilr, io S~c-
25C). FUJ'l"..b.er, if the employer retrenches a workman uteJ' the u:piry
of 4S days o( lay-off. any compensation p~id to the workman for
having }aid-off may be ,c:t ?ff against the compenution pay..ble for
rctre.n.;hment (1,eCQnd prwiro to~c-. 25C).
The lay--off a$ eontefflpl:ued by the. &«tion should be due to
gcouint rea$OtU. U howeVer. th.e la~~ff is 1JNtlafauin the sense ~ a.t ~e
employer ha& deliberately -mcl malicloua:ly brought about a ntuauon
when lay-off becomes necessary, such lay~££ 'Q.•ould not be justifi.ed
under See. 2(kkk) and tb\1$ Sec. 2->C cannot be bdd applicable to it so
a.:s t0 confme the workmcn'-s right to compensation onl)•. Similuly, lay-
off decl:ared to victimise the workers or for some ulterior purposes,
wouJd •oot chwge the p0$ition 2t all [Tota.II'~.,. fu.lf:/i;i Cll v T/Jtir
u,,,,..,,. (1962) I LLJ }82 (SC)i '
T herefore, to claim lay-off compensation under Sec. 25C, two
condicions must be fu)fJ.led: (1} the worknun must have been la.id-off
for reasons contemplated by sec. 2(kkk}. and (2) requirements as
provxkd ~)' Sec.. 25C mtUt be fulfJlcd. It may be noted th.at provis.ions
!or- p1ymen~of by-off compensation does not mean th.at the employer
~ ~Y comperuacion and declare lay-off. Payment of co~pe.o.sation
is not a condition prcccdein.to lay-off. Further, compemauon UJ:lnOt
 ' ~ L abour Law • I t.ariof! Rctrenc~1·:~~f and ·c 1os~re
' ,. .r . •
" be.award«! iu
iustico
(14,,.,,,llft o! actual lay-off.-.-ind on: groucd$ o f ~
rK.f. R,/Hwt MNJ, v •Af.R M,w (1.962) 2 LL] 667 (Bom.)li'
and,(b) have aJa.Uy worked for~t o~less th::in 95 d:i'Y. {in ate- Qf ~
, -~ 1. ~e). or 120 ~s ui any other C~~t -- I .~ \ ,
&du Wotkmcn i. · · Exf>l<J11,1N,11 - Fof the purp(>$d Of~i.u.1~~(2), the ub~r 0£.da}'! o~~
,\~ • l''
•B~ Ui'_workman• means- a worknun who is en:iployi:d in lt.D indu~triil which 2 work~ has acrually workc_" oh~r an cm,Plo}'~ sh.all t8'~
cst:i~i.4b.OJ~ t in the place of another v.•orknian W~Ode namt is ~J.ilC the-mys o n whi<}h: .,.,• t I .I t: . •
on ~c,mu.stet rolls of the esta~fuh~n..t, _but di~ ~ c to he ,reg~~
as ~ucn1or the purposes of du, Sttt10~1 tf he h~ ,~ompJ('t~ one f~
(i) he h:u ~en laid-off ~dh- i n agttemc-nt o/ l:pernihted ~Y:.
nandi.ng ord~ matle uaae;.,,he Iud~t~. Erpploym~r~t
oC.~onunuous secvic:e in the establi.shp1enc [B,iphwafM.ir to Sec. 2~C], (St::andi~ Order-$) Aet, 1946> OI!' under tlhs.,i\.et.or uadtr :.t.nY- j
other la\\> applicable ·co ~ mdiisiti:i.J. est2blishment;
~T hU$; a NM Workman is o ne v.•hose name is not borne On the
mu~·tu roilf~f c.he e$f~fuhme.nt. Hd°wcvcr, if h.is name is foumf on .,. . . .. .,
Gi) he b.u been o.o. leiive wn.h f~twages, earnect, 1.n che prevto~~,
.
,t-...;Lf

.•.
the mu~te:- ?'OU,; he i$ entitled to 1.a~ft.com~A$ation [ Vfi-!J' /4-"r
,\f;hs.' v Labim,
,·
c;,.,,
(1,60) 2 LIJ (Mad)].

O.flnltlon of ~ontinuou.s Service . ••

.
.
''

..
'tjf -~ ' 7 1 (; .
(,ii) he bu been absenr due to temporary dis,b~~• cau,ed !?Y.
l
' ~ t a.ri,sing out of ~uid fa U\t; ~ourse o f ;i employmc,,nti
-and
...
I •
• ...
lt:
,;, '
~·
"l\

Q.v) in the case of a !cDWc, .she' has' bet:o (?O mat«nity lea.ve: .so,
In orderw d:u.m !ay-off oompcn.s:tt.10n, :fworlttrun._1$ required to iia':e
0

~ccfOCCyo:i.e ofcx,oi.ltu.•O\l•Uf'\'i«, Sec, l.5"S dct"ines "ooatu\\lo!,l,

se:r'V~'e• for the purpose of this Cha.pier. • L ho~ever. that the tou.l ~ .t i¥ of $ueh m~te;:ni.D' leav< d~
not cxcccd TWc-lvc w«ks. r ~• . .·
· Afcordin5'to $ub--$C:<;.. (1), 11 wor kman ,hall,be s;iid tO 6~ in
oontinuOus sCrvioe fot 2 period, if1for tha.t , period. bis ter"Vice is Th~ two oonditio.n.s viz.(a) and (b) muse be simultal!eo"'1y fulfi~cd.
;tfitfl11n1p:d, Tbe iruem.zpt-ion ofi account of sickfieSS, 'aurhori$ed Uilvc. Non~ful6l rnent of C\'Cft one of th~M will not entitle the workmen co
be treated in co ntinuous scrvicc.-Tliat..mcam Cor·a c:onl1h.uout service
~n ·iccideo.~·, Jepl sr.rib-, Jock-out, or CCS$~tion 0£ wO'rk "A;"bJC-h llPot
due<t O·any•fault on the pan of th..- "'ork.m:ui. is ROI ihfenuption Withiii of one yair ~ workman 1%1\1$1. have ft~ed. for 12 e:tle~ rnq,.oJ&.t ~~l
~$0 b:ave workt:d for 240 or- 190' d:ly,. In CMJ§dr.:-LJJ v P.:m.Wfj;"'fi
(/) the- nic-.iulng of t:he se·ccion. · ... ~ ·
0 . Sam/ti (199-0) Lab IC 1◄6.l (Raj), it Was held chat Sulldiy, and o~if'
Q) · .T wrig pan in an ill,g,.l stril« .,,;.,.;.;" to mi.scondua o,i ti.e}.an ~ bolidaYJ have co be t-akcn· ioto•a~ci1,1,nt fo r ~e.<.PUJ'J)Ot~ -~f
:, otihe employee, fo, which be wvit<:o the older ol c!ismls,4' Bt,, Uh.Jes, ,..kooing the t0t"1,number of da)• or. .,,!,;en the wor~ can be ..,a
:,
(1) h•~ ·actWJly dismissed. there would St,oon,"!uiry'un<!c, w ¼ .2~(1) to~cactuallywork.cd. }.,, ~ ~- .
C. [f." 'f,). J,,,. v N.., /,.;;, ½,. Mills C• (1958)•1 LLJ 28 (Bom,)l[
-l 1n Mohan Liiv BhoNJ E/d!fNJtiil;,LJd. (AIR 19$1 SC 1.25)), tt ~ t
~
;:;:
, Under· s.ub-sec. (2), a continuous Service for one year Or!$1X held that Soc. 25B(~ compn-he.nds ~-sitv.ttion where oi~\VprlutlA11 is ~
:::,- montli,~~as· betn ddtncd, A workman. sliall be ~ tef ~ in in empJoymeo.l for~-period of 12 cilendar mon1hii bfit lw rendered
() <0oti.ri\10Us $Crvice for an;'ttfTif {.i) he has b«n. i..o. ~mployWeni fo~;"t2 service for 2 period of 240 d:iys.wi~in the period 'of 12 c.a.Jci:i-t iui
Q)
'. caJ~ft~~~onihs, and (b) ha~c :ict~ally worked for nOt less 't hju'J'90 mouth s comm,mcing and cou~cing. b;i,<ikyr.vds from _t~ id~i J.1te~
3 days ltn case of employinent in a mmc), o~ 240 days 1o any otb:er'~ • i.c~the (hce o! retttnehment. He _?-'"Ou.(dybe tkrmt,! ~..blin conunuou5i
(/)
0 A wo1·ktna.n sball' be deemed to be. in corninUOU$ service !or ti>i~J.bt ie-tvice for a period: o! one yc.u·fo~ µie purpose:,..<if Sec. '25-B ~d-
Q) ii.£ ("Y lie his btea in emploYmcnt for a period o f 6 aJeodar .months, Chaptcr VA of ,the LO. M... As prc<oriattion for~ val3 retrenchment .
:, • I
:,
(1)
~
. r Q'
I

252 Labour Law . J'
h:as n ot. bcC"n s.adsfied hi, ten:nin:ation of service w111$ void al, i!UJi, md
inoperative.
. T he b~1r,.le.n of p roo! that workma n work«! for 240 days in:.
g)v~n yc.u- 1,n on the workman. lo mos.t c-.ues, 1..b e clai.rn:un workma.o
can (all upota the e mployer to pro&1.1c.e before Ulc c:oun notnitul
mus~r :oll for the given period, the lener of :ippointment or
tcrmmauo n., the wage n:gi$toi.lr, ,he ~ucndan« rc-gister. etc. (IlM. ¾Uat/
v A.ISII, Exttttliw EJ1b111-tf' (2006) 1 sec 106).
!he cmploym4?nt o f daily w:ag.ers or c:uu:tl employ«$ in dufcrem
est:ablisbmen~ (evCJl umkr lhe same employer o r corurol.l.ing .i;urhorit)'J
would nl>I amount 10 hi$ being in 'continuous servi«' (Hury:tl!l:I Urban
o,,,, ANlwil)' v Om P,,/ (2007) 5 sec 742l
(c) Employ~r '$ duty to m<lintain Muster Rolls of workmen
Nocw·itJm:ioding: tbat workmen in any industrial establishment have
b~n ).ljd. of-f, it shaJJ be the duty of every employer to m;aint:aU) for
die p \11;p0$C$ of this C hapter ,1 mu,ter rc;,11 iancl to provide for the
m.lki:ns o f enr'ries lherei.u by woMUnen who may present themselves
for work al I.he t.$ublishmem at the appoim:ed til'ne during norm.a)
"-'Orking hours (Sec. 25-0].
'!bis duty is nund:uory m d die non-wmpli,nce of it will debar
the e mployer to u.ke advantag.c o f Sec. 25-E(iQ ~! the t.r!) . Aca.
. I
(d) Woril.men not entitled to compensation tnk e rtaln cases)
Th~ugh lar,off is tlle .rqult ?r ~ c ~on on the p4rt of the employer,
he Ji _,..~+olvcd from the obhg.a.uon to pay compepsation, should the
prov.iS:Oll$ of Se~. 25E apply. ·niw~ Sec. 25.E. ~ an ,xaptiq11 to the
general rule. A ~f~ workm.in sh.all no t be e.nriclfd to cornpeiu:atioD
under the foUowmg c1«1.1m~ta.n«-.s: i off of Other workmen disqualiiics tic. workmen l&aoff &om claiming
(1) Jf he refuses to ~cc_pt :tltermcive employ~('nt provided that
such 2.hern:itive C11'.lpJoyment is:: • l off is: 001 r~}' involuttury (AIJ'M'.a:d Cm,,!fJ Co. L:d. v TINir WqrAWrt,r
J. Unefer v.hat &!lu&tions is a klid.Qff workmai, 11.01 enc~led for qompen~mion?
IL,C.~IISJ
~
(I)
C
Lay- Off Retrenchment 3nd Closure 253 C
(a.} U1 the s-a.mc.cst:1bli.shment or in any othe-r esu.bli.$hmedt "'
<)
(/)
belonging to the tame ci:nployer situate in same town/
village or sit-~te within a radius of S miles frorn the E
establishment. ill which be belongs; u.d "'
(.)
~
(b) if in the opinM?o of the employer, the alternative .<::::
employment~ not call £or anfspecial $kill O. previous ;::
C"Xpt'rienoe itfUl can be done by the wd-off workmaD; and 'O
(c) it carries the same wages. (I)
(2) If b e doe$ not prcscin bimself for work at the establishmen t
C
C
at the appointed time during normal working hours at least ~
(/)
o noeaday.
(J) If the Jay-off is due t o nrike or $lowing down of production
o~ the part of workmen in a.a.other part of tbe 1am,
establishmeoc
•Any .a.ltcroative employmc,nt' ,means similar or like or equi...Jcnt
employment. The cxpn:#ion •can be done' MMS1$ 'i be workman mun
not olUy be aP2ble of doing it but it should also be .tCOePtable to him.
Where skilled workmen. were offertdjobsof AHJ.Wa.nd~which
they r¢~d. wu hdd not to forfeit tbei.r c:lu.,m to lay-off com~tion
[TMMl1n.'al E,,,,pnfJt,s' U11io~, lvltdpllr v J.J(. SpiKnin.& C' Wmd.11',t MIJII Co.
(1956) 1 LLJ J25i
Clause (2) requitts a workffl21l to present himself for work a.t the
eniablish.me:nt daily. The o nly deer. of h~ not so presenting or wving
· anoUler ernploytt durin&the period of tay-off would be that be will
not be entitled to by-off oompe.a.u.tioo for that period. but he will uill
have a right to be reinstaud a.RU the lay-off l$ over.
Clawc (3} u-e.u.s all the workme.a. in one enab~t as one di#
a.a.d a ,trike or slow down by sorr.e workmto tC:$Uking in the 1:1.ying
lay-off c.ompcruaciott. The reuo= for this obviov.dy if that the bying
AIR 1960 SC ~l In this cas,, ~ .Apex Court ob=ved that if in their
true n:btioo t h e ~ parts/brancbes/uniu ~astirut~ one incegntod
 f ( I j ..... ,, . • cJ::f+;...i,e
• • - ~-:· ,.., .., • i
r -F

Lay-lff Retrench.men: 'and CJosu~e · ~

jpecial Provfs!Js r~atin_g to ~Y;off,tn,, Certaf~ £s~blishmen~ '
(Chapt•r VB) i ,.
~';_J.ndusuial D~putes (Amc.nd~clitJ.A6t, 19(6 /..u~"cliapic:r 'WB·
dealing·witb •s~ Provisions Rda~.to Lay-off, Retrtnc:h~ni- -and
Glosu,e w c.rt.;p En•bl~hmenttlJS.C.,25-K to ;iec. 2-:S:SJ. •
' ' . .
The provis~ns 0£ this Cha~ shall A.pply t~a.n jnch.1$t~~J .
'

euabli-shmcnt (not being 1 an esu.blls!iineocof a Se:\$onalcb~ or mt•·.

wj\jd work ls per(ormed only in'"t~mir?cntly) in wli1ili not'le:SS than one
-li~dttd workmen ..yere ef?lployed Ofl-:i.n aVengc-. pc_ttjv.•b rkiag daydtt
the pro:cding twclve months.. If~ ~dtion arises wbediet an iodustrlz":
~ blimmca~ is o! a sea.$Onal d:iu~cr or 'fl'hcther 'IVOrk it--perfo,mttl "'
the*Ul.c>rtlf iotertnirtently, the decision ~fthe "PPtOPf~ Government
<he~n ,hill be final [Sec. 2;.KJ. ,.,,_ • • ·;h, - ,a
Prohlbi'i;~·ot Uly:Cff (Sec. 25.M)..;., . ~
~ ·, ~
I . .. ,

• ·•worktn:U'\) wb,QS,e name

• ~l'Jl I
{1) No workman (other dian· a IMJJi workman or a fll!u~1
ii bbrne·1 on the Jnitner r oU, of an
. e.
•, nnn~,i:::i
_, .· , """""c:a
' hl"L , ·••r
ti:;nm,-nt tn'W. h"1cn 1 ·ch .,
·L" tnlll • '11.~z:app1·ieto11h,.llh
laid~'o.f( by h~ e"m.ployes:·gX~.Ptwith the· priorrnni-niorro£
m.e··: tppiopriatc gove~nt' oJ '\ Ueh authcf.r it,· a,s may..pe
uc
t ©!
$peci{ied by" th.at govcrnt'lie~t bf.: notifiearion ~ thC Officjal'1
Gu.ea:e; ot>~ o n an applicatihn:, made in ~ behalf. unlc:ts.-1:' 0J
such lay-off is due to shorlage of pov.•er o r ti~ 10"n.1tut1t Q
c:alamity, o1od in the case of ( min~ such lay-of£ is lf~a.Jso to ,
fir~· flood, udss of in.flatru:na'bfe gls or C:Xp1l>sioo. ·.
(/) .,.,
0 (2) An •pp1":•cion-for per,niw.ontin<kr sub-sec, {i) shall be ma.d8
Q) • by the employer in the pitscriliOO manner stttip.g clearly" be-,
:,
:,
(1)
muons fOf' the int.ended Jar-off Md a copy of
shill also be served $i,tnul~1y 013 the w<Mcn:iffl concemtd.
,uch ~~liL¼.tiOn ·
... '
C.
in the prescribed manner.: •-..."'
~
;:;: (6) An order of·the appropiiate government or the ,pccifitd
:::,-
authority gn.nting or ~ \ _ O grant penni.s:ti~O ~~ubject:-
()
Q) to the provisions of sub-Je~ (7). ~ final ~,od'bl~~ing on,aH
3 t he p.i.rtie$ cor:1ctrned and sh:ill icmain in fo!}c for: one ye?,r;
(/) from the date of such ofdcr.t.. _,;
0 ~ . J:.
Q)
:,
:,
(1)
~

2.56 L.tbour Law • 1
(7} The appropri:ite govcmmc.nt er the spe<:i.fied authority l'na y,
ei(her on its ovm rootion or on the ;1.pplica1ioo made by the
employer or any workman, review ~ order granting or refus;U)g
to' grnnt pe!'mi$tion uod.cr sub-sec. (4) or ufer clie matter or,
as the case may be. aufe h to be referred, to a 'f ribunal fo r
adjudic.l.tion.
RETRENCH.'lfllNT
0efini t-lc:,n4
'Rarenchme.ur' means 'to end. cooclt1dc, ceasc'. l.n con:unon p.rlance,
rctrcnchMent me;ins discharge o f surplU$ Jabour frotu ;ui i.nd~tri-1
e$t:.abfohmcnt. ln the cue of retrenchment, the employcr-rmployee
rehltionship ii terminated. Th.e order of termination mun be actuated
w;th ..,. mptivc of e-conomy.
The dcfini-t;iou of the U rm 'retren~hmcnt' ;u gi.vcn in $,e,;.. 2(00)
i$ eKlt;i,usth·:c and comprehensi,.· c. According to the definirion,
·re1:renchtn¢nt" me.ms the iermi.nnioo by the employer of thcsrrvices
of a workman for any n!:a.t(>Q whatsooVer, ot.hCTWisc than as purush.ment
i.u.flicted by·w;ay of disciplinary aetion, but doei l'iol include:..
{a) \'Olum uy reii.remem of the workma.u, or
(b) reri rement of the workman on re~chiog the :age of
rupcrannuillit;>n if the contnct o( f:mp.(oymc nt cont:aW a
stipulation in tlur: bel:wf, or J the d\lciet of ihe post which would be attracted t?Y che sub-clause.
(bb) tc-rmin:ttio.n of the sc.rvioe of the wofkman a s a result of
',t-he non-rene-«r.tl of contract of er:npld,rmt.nt bcrween t h~
~rup-loycr utd We workman on its!expiry or of such
contmet ~ t<Tminatecl under a stip'}lation in d i.11; behalf
<»nta.ined therein, or l ,- R.Pph.1w S.R. T.C, 1991 UC 4945 (SC)), A workmu $U£fering from
~ n tho •u•lltltl il'l(l•edi~t$ ol Ao1t•,nChme,t1t . , lfined undo, SK, 2{oo)
Of\he l O. A.et..10-47, ! IL.Cl'.-~~~
'M'l&t il 'RetreI1d'lm.l'I( l.ll'lder th.a 1.0. Ad, 19<171 ~lain lh• ,~..... 01'1 I.he • vb}Kt
hlghllehl'r1~ I.hit judicl&ldeciskins in lhla ~I'd. i (0,U,·20rOJ
'
~
(I)
C
C
l.nr-Otr Retrenchment and Closure 257
"'
<)
(/)
(c) termi.nition of thf: ;ervice of a worknu.n on the ground of
continued ill-health. E
le may be noted that clause (bb) wu in.setted by the 1982 amendment "'
(.)
1nd biought into effect in 1984. T he cl2use is noi retrospective in ~
,1.,,._ .<::::
;::
Tb~ definition of 'retrenchment' :ai given in See. 2(00) is: wide ,::,
tnough to ·incll.Kle all typet' o f ·,~rmlnation of service unless the (I)
C
termination falls with.in the cxoeptod c..iegoM mtnt~ therein. T he C
1mte.rial words in the definiti~n 'are 'tirrnination • by the employer of
the .service of workman for •ffly ~oa whatsoever.'
~
(/)
As t-he main part of Sec. 2(00) treats a tenlliru,tion ' for an y
rcil.Wn wh•isoever' a, retrenchment, the e>«IN!ill"41)' ,"111,u have to be
ACCffi;i_rily corucru.ed JJrid/) Mving regard to the benefit, given ·b y the
Al:t in Sec~ 2SF £or those sougi',t tO be reuenched. For ~ l e, sub-
d. (bb) ml.lSt be ip.{erpretccl rwrowly. Tm:te is nothing in the sub-cla\l.$CI
whjch enabled .in u.nscrupulot.1$ employer u:, tumituu: the &tt'Vices of
I.be workers on the r.round of non-renew.al of tbc::ir c.ont~c::i even
wbe.n the work for which they were employed subsis-u. Cl:ause (bb)
,bould be nude app)iab)e on))• to such cases where the work ceases
..-ith the employmem o r tbe po5t itidf <:c:i.ses to exist (K Jv,fa11droR Y
T.6, Dindffl', Profat & .IE'fPI, Co,p11. ef lttdt# l,Jd., \992 UC 909].
The. expression "ill•h~th,. ust!d in Nh<laU,$,e (c) of Sec. 2(00)
mun have a bearing: on t he normal discharge of dutie$. It is: not any
illnt-ss but that whic:b i.n.tcrferc;1,with the wual orderly functioning of
Hence, placing realistic and no't a tcclutlca.l or pedantic ~ning on the
u id phrase, the phr,ne •iiJ.•health" 'O.'Ould i,0,dude cases of driv,;?rs who
have r.le-"eloped a d.efeet.ive or sub-normal vi.s:ion or eye-sight which ls
bound to interftt~ -.vith their normU working as drivers (A,u,,nd BiMri
fus of inrennittcnt oarurc annot be u.id to be Mfer-irtg &om continued
ill•he.al,h [Ma,:12,ummt, lJJtm StOKt Umt .Cct. v Tbtir -:,,,qriut,er, 1992 LIC
<St~
'retmi.nation of the $Q'Vice for •any rea.,on whatsoever' i:1 ttne.ral
means the discharge of surplU$ $tiff by the employer for a.ny reason,
 ~ • Labour ·Law - 1. re J
I
Lay. l ff
" ~
Retronchut ~~~" a nd
. Closure . ~ ...
atltt!'Hlt than, as punishment in.£1)!.tM h)' way of disciplinary ~ n ~ •
;3n_.r o ft.he rt;uons cni.uncratcd. in exclusionary dnttes, T e~iqn d.
(c) Termina~n of emp!oy_ce~~On abcount of 1b~_H.,,,,,. o;/Jw.Jin41r "' 0;
an\oun~ 1¢' retrcnchmcni a$'Jt-itriotcovettd b,:~1ny ex~tions
7.~ rvlcc. (or re-;4ons .over which cbc cmpio}ler ~ D.o conu()l ~O~d~Olf
be rttienC'h.mem ~ i:he dc!i.n.it.ion impHe, llut ~at.ion iliouJ.4 be fii'
[UP.- c1,,,/ii.;,,,, NiJ,tl# lJd. • ,f1a.~ ,ef U.P, 199.t UC• !277 d
Ttu-on. Jt }.s bee..u.s-e of this reason. thnt aU ntr,1JrW,l(f is .un,,:tifc11~11' ?~ I
(All,)! .. , . ·; .
However, the Supreme Court hasuk~ tbe view tha.t retrenchtne,At
.Nrt/(¥ bJJt «II lmtti.KatlM ef im:ia iJ ,:~/, r'rtrtMMfe.iJJ. •
connotes in its ordinary accept.~ on ~ t th~ business iueJf is DC'ing
t. \ ,.._Rct:.rcnchment nuy be-due to,.~ of r e;asons ruch ~.~ ·,i tq11iflljilJ but thllt a portion of st:iff"Qf-thc· kbour forcc-U J.iuh..µ-g&I
ptlonall$:at.ion. installation of new bboU{,~avin~J:?18-c:Jii?c.ry,Ero..~~~~ as ~ s\lrplus~g-e and the terminatiOii of SUfice of all tbti "?Orkmen as (!)
fu~renc~trlen1 Of surplus labour in~ ~~ ~ ½'~~~~as ~ ~loM a result of clos-urt of bU$iness cannot" be properJn):lekribed ls
. bas a nght to org\tnist and arrange 61$ buunm 1n the n'lallll-er f e, rotrenchn,eo1, Rctrcncbmem muit oc o.Jy in•~ indu,tty II:J.+"'!l
"«>tui.ders besL So long as c.his is done bYJ1111ji.de~. the TribUrlait,la.mi'ot: v A.D, pi~ki,r AIR 1957 SC J2t]. ·B4t the uid deci$ion has been
queiri6n its propriety. 1f $UCh a scheme for l''eorg-:i.n.is:uiOfl 're&Jis: Ult overridden by amendment to See.; 25p;,Tc.rmination of $UVice' oh"
s.'u.rpl:_us:;igc of cmployel!$) no employer~ expecteij to arry•tfu: ~ . @'·
'acc:Qhnt 0£ a 1mnrftr or · c/Nit" ·ot~:dl-rt.tM.1"'- v.•o"uia ·-amouiu ,o.., ! ,
:fc>f iucb economic dead weight. In such taseS/ ret.rertcbniai't fill)d!fi~ rcUCllchment. (Sc,es. 25PF and 2.5Ffl?; ·~r '<\
!;C_eJnid.i.rieviu._blc, h.owever~ u!'f?~nat~,., it is,~ Ion~1; ~t~,~~t..
vma1:cd'&y·cort$idC:r.itton o{ vtcttnusatton and "UU(~Jr tabour ~ncucc , (d) Smk.it,g off the mm, of th, ;,,orkrnan <ont=);~ti,. ~ d
• r.i:,-, '>' '1 of the """'6,g"""7 atnOUntf\o~, [n"l:M. • St,.;,,_Mit
' -I''< ,. • • ' c'.
"
Cf=·,C'C• LJ;, v P.C 1,,1, A~ .t~~~s.c IJJ◄i, '-·~" .... Nutb (197?) 1 LLJ 1 (SC)], , .. : 0~
,;,.. .1.~~AS\U of iw:ficW.opllll~IJ."~!J&~i<Jucst~on ,:ivh~e'i,~~ µ., . ; .u
te"B"1atso~ ~f,i.~e .k!:rv1ce o! a J:!11fl!¥.ar~~or~nu.o.. o~.wfJ,xi¥,f!.,
a ~-~ t<?'.,retrf nchmcnt mu.n be ~ m cac4 ?SCon m;e l'":1f
l.:cAo1NG C..ur: UPTRON _
[!'(pt~ LTD-1 v SHAMMJ &HAN
(AlR l?l&' sc J 68l)
• ,<; · ~ ·
~ ,.;
-~
.. Q
a•~ n d~ of Wt ca.se; cvcj- tttminnioo, l!)reept th05Cgcludtd In t.hi.s c.uc-, the respondent, a permanent einploytc oftJpuon
.:, >,, ,•.
,W/ ec·'2(':';') m,ount to rettencfui,<;rlt, , 1•
. -~•ll,
•. [•,-. • ~dia Ltd., was o.o. outefflil)' lt~ve;~ tffect fl"O~"Z._dt Nov., a
' ' 198-4 tci 29th Jan., 19S5 and ~><ftn~f
-~t';f /~-~
alltgodl~ ~r"'"'Yed,
(/) m~{fr~a~!~"f ' .caM-:1.aw . .· . . .. ~ The SWJ.d.ing Orders provided.1 ~t'if a.a empldmo,·em::ay, •.
the Jea,•e wit . h out perttus$1on
• ' ' ,or r ''da~ b'is
•-t' i.,,t h4n $eve-a
a
~
" "".;.:-more
,(1) ~/my rt1irtt?H11J 1S retrenpmen~:,!ezpun~uon !;rY1~
:,
:,
for
; .
very.long unauthorised ~ncefromdut)'
, ...., ' '
does
•
not.,,.
hnt ·
i't <f
seMCe$ would be iiaplc to aut◊WtiC tcrmin.atio1,1. H irlkrviccs' ,0
to r~t ttn~nt [Ma,.,,u,·~ Dir. v 'lfuUdlahiJ, Ot1•1f11tdf W, · \ t9o/ .Jere. terminated by.mere issuing·a letfi:r'as per abdfe_cenifie.d
(1)
C. Lab IC 288 (Bom)! • I.., f
_:__ £ _
~o~.
- ..I ~~ : · .:z,-~ ,.
. . .·.G)j
.. The Suf>reme Court held tlJc~~.JtCW ofaon-compliartoc:
~
;:;:
:::,-
()
(b) Termination of se-rvi~ on tht &tOund tb.:u ;,,,:.Jal "Pf)fll,1:11,1,xj
was btMDd amounts ro retrenchment..as it is not covered .-b)" ~Y
of the cxecpc:ions contained in tlle «f'mii:i.on o{. ' retrcil·~11n¢ot'
with otherfeg,al requirements (viz. Of>Pl\"1"'4Y o f ~ bnort,
termination), the rerininatioo.,.ofJi~r seivice:s afnOWlu to 0 •
cM1,1,;1,,h iv,,,,,, s;,w, , s,,,,,,; JJJ1>or (1995) 1 LLJ 97J W•<)l -:1 ~ment. The services of :t~P,_erinancnt' employ:~ CIAnot ,~,·.<
Q)

3
(/)
Howc-.:e.r, in ~rnn/i Stni~ "!:~ :.Bm,ji y .M-A.~· .l..u-,D•.~ ?f~)
2' LlJ ~, held thin the tcr~Unatiou ?( !c-rvi~c o.f ~ peNOti
bb_ tcrmin11:ed 11.bn.iptly.and arb!(rar.i(l• ootwiths.t,Jl5Wlg th.ar
th~i-e·wy be a stipulation to tha.t'"d!cc:t either in die oon~ •·
·o)
'
(")
Q)
:,
a~imed
)'}:'" 14- hon- the rules' cannot & romidered
. as rctrenctimell.t.
I' , of $Cl'YiC"e or in the ~rti.fied f tan,dffg ]rdcn. l ·
:, '· '
I •
. -~
"'---""--·
(1)
~

'' -~"

260 L abour L.iw • I
Th~ court obsier'•OO: ;'1Uc tcncr.\l principle$ of tbe 0:mtr:IC't
Act applicable to a.n agrecmem ben,,,ce:n two pe-rsons having
c-.apacity to OOntr.1cr, ue also applic;ililc to a wotr.u=t of indU¥1l"W
employment, but the rdations-hip so cr~ted is panly #<1ff(J!flt.•J.
in the sense thal agreement of service may give r ise to muu1.1l
obligaiions (e.g. obligation 0£ thc c.mployer to pay wage$ ~nd
thu of the worknu.n to reader i;ervicc:$), 2nd, p:u-dy »M,tofttr.t,r,d,
as the Stat« ba,•e already , by Jeg:is!ation, prescribed positive
oblig;iti~1u fo: t.he employer tow.ar<h his ...-orkmen, as, for
example. t-erms, w n.d.i1io ns iand oblisations prescribed by tbe
Pa}'IM)t o{W,&<!$ Aet, lodus,ri,J Emplo)'lll<nl {Standu,gO,de,$)
Ac:t, Mini.mum Wages Act, ete,"'
"la order to achieve indwt.rial harmony and peace, the
Indunri:i.l E mployment (Su.nding Order$) Act, l?◄-6 W:i.$
enacted. T11e A.~ aimed :it ~chieving a transition from mere
rontr.l~t brtWcen une(J\1-,ls (Em.ployer :and Employee) to the
conferment o f ..Status" on workmen thro ugh eondition.s
statutorily imposed upon th e e mploycN by requiring every
indus~rw wab1i$h.ment to fr;une "Standing Orders.. in ~ I
o f m;1uers e numerated in the Schedule appended to the- Act,
Th.c Staqding O rd.en; m i:tqu.ired tO be certified by a Ccrtilying
Offi.Ot?,.. Upol:\ eemfic•;U.ion. the o rd<:l"J be«,~ binding u pon
both die p.a.n.ie$. Thus, the \.lnderlying object 'lt"U C() introdw:c
\lnifonµity i.n condition s of employment of workmen
discharging timibr funetiot:s iti the s:a.mc industrial establishment
v.1idet the $:\me man11gemem .tnd to make those terms and
couditidos wiclcly lwo"'rn L<) -.ill the WOt"kmeu l?efatt they oould
bt" ;1.s~ed to e:xpreu t heir willingness 1to accept the
ernployrnem."] j held th:i.t such terminat ion o f servi~ would amo\1.0t t()
{e) D iscontinuance o f service of employoet C'Illployed as t'1tNal
lobcNr on daily w11.ges is n ot govemc<f by See. 2{oo)(bb)
exception, b ut it aruowus to rctrcneb~ t (R.. $ rttAi:NLw Rao v
I..li1x»1r0Nt11. T·!)vhmb<Jd, 1990 UC 17i {~)).However.when:
wo,rkmeJl were emp!oyed in -sug.u- mills firin.g cruShing.1taio"
on}y and consequent to closure of seuou.,;they ceased to ""'ork,
it w.u held t.h.i.t. such «n;i;liOn o f work 'Would not .1mouot. to
I
- ·---- --
~
(I)
C
La y• Off R etrenchment a nd Cl osure 261 C
retrenchment since it is only a seasonal work (Mqrlxda Co-op-. "'
<)
(/)
S•§'' Af;// /Jd v R,n, Jv,h,,,, (1996) I LL) 870 (SC)l
E
(Q Term.i.nat.ion of serviot. due 10 Jou ef ~ nftdll#I i n -a.n cmplortt
i& not retrenclune.nt as it w ould be :a. miittke ,to hold th.at l0$$ "'
(.)
of confidence could be incl uded in the u.pr~sion •for a ny ~
.<::::
~ wharsoo..,.Cf" ffld ttrt'l'WUtion on that score would a.mount ;::
to retrenchment [Kam.'i•sh KNmar v Pmidb,l Qffear. lll.dltrtria/
'O
Tribw""' ( I990) 1 LL) 356 (Bom)J. (I)
C
In l<am!U J(jrffl LJ,):J/n,ro1J v TiH l11dnagtmt11J of Mls Pan Anrm(1111 !~rid C
Air»v!)'.,._(t 98n t LLJ 107., it·•!"U hdd th:u: where tbc urvices o f a ~
wo,.k.m-u is terminated due io 'loss of confidence' sut:h termination (/)
amoun" to punishn.\e.nt. inB:'ktcd by way of d.isciplina.ry act-i.on {an
cxcr.:ption recognised in definition of 'mninchment'}. Si.nee tumination
is grounded upon conduct attaching stigma t0 the appellant, disclplin~ry
proceeding$ are necessary a.s a condition precedent to infi.iction o f
1ermin:1.cion ~s a measure of punish~nt. If no disciplinary proceeditJp
are, held the o rder of termination would be vitia.ted in law. In sl.lCh "3
siluation he ca.n either be re.Uutated in scrvit;e or be «leq_uucly
compensated. ~noe, termination on tbe'grou.n.d of loss of confidence
w ould ~ amount to retrenchment.
(g) Similarly, tcrmin.ation o f services of workman on tbe ground
of iMjfkitlr:J o r mlno11dru1 wou.ld ,;.ot 11mount to retttnchmentj
(Mw,ki.!XJI C~r;m, v La~Nr Appt.&11 Tn1J#Ml l S F.J.R. lt◄).
(h:) UnJNMJ,j;,,I #!l#pkti.on efprsbati1>11 j,l.riod - In Salf/41h Glllj>lo V Suu
&,,r,t ef l.mli a (AIR 1980 SC 1219) , an employee of the b,1,nk
wu discharged on the ground thn she failed to pus the
prescribed tes.t prQvidcd for confirmation in service. The
Supreme Coun ~ g her reinstatement with full back wages
m=duncnt.
T ermin2tion of Sff'Vlcc of an employee either during the initial pe:iod
of pr<>buion o r during the extended period. of probatlon on the
5. I• 1he ~11t1-i1on ol eervtoe or • wotkMMI ,o, mlaoonduct 'retreric::l'l~l'lt' wttl'llri
tM d~n,t)Qn ot rotteric:hmellt '-'Oder tlM 1.0. Ad? Discuss. IL.C../1-$6(S'\PP)I
 •

262 Labo u r Law • 1~

~ound tli.;1.i the.f w~e not fou.nd $\ut3ble 'amoub.!s co retrt.nc~e.ot

D\f'oh,1.i, Lil v Tl>I 1\!.vra.!,ll}tt!lt ef Bhal'lll. ~l«trd"~ l.Ji '{ l 981} 1 ~IC ~~06
(S'C)); f>l•#"J<"''"• Km,,,1a1,, S.Jt1:C vs;,;,;, A M,IP,,J,r (19ll4) ILLJ
1
0
G
.
110,(SC)J. ,,
But th.is view has bet-n overruled by the--Supreme COu..rt in M.
V."-'1£'p,,I ,· U C 'If /,di., ,tJ.P. (1994) 'l:LLJ 597 '(SC), wherein it
hdd tho.t the: ccrrni.narion of service o f the pt"Obitioruer c.umot be .said
was
~ 1~,.
()

to be a retrtni;hmeru within the meaning.Of Sec: 2(00) bCCaUS{ !iis

confirmation was depe4c6nc on fulfilment of aiininium business
guarantee and che employee failed to fulGfth ~ norm prescribeit ,He,
wn asked to impt()Vc his performance before the expiry of o c t ~.
~odof probation. Sinoe he failed.co.fulfil th.e minim1,m prcsc:ri~
i
l')~

th:e L I.C. was j\1$1:ilied in terminaciog his suvk:e w:.ithout complykg

'Q,•ith the provWOns o(the Act rebting cO rctrcachtr~ (.6 This.~ ·• as-... 0.
followed ln Arvbtd K.N,ur v D,p,t!J Dir;, &j)vz,Kri.Jhr Ulpd(UII/.JA/anJi.
R,,;,1,oJ (199S) I LlJ 750 (All.), . \/~ 6'
In Mf r &!)u,rf Sliurp l 11dla Lid v /...ahJlf' Court, G11•rlh:'h' (A~
.?002 SC 300). "'rhc rc,J)011d¢11t .wai ;al'poinfod -u ·.a trainee,sett'~
tt,c.lfuician and his servic:c~ wett teTmi.nat&i•l:,efore ex-piry·of -the
p rob:1tionary period. The Supreme, C01jrt: held that iheo1der jof
~loyinent itself dearly sets out the tttms thc~fter whlc.h t:1:tlct:$ it
ij
. if
cle;ic that foci.lit>· of p roviding tr2ining-to ,him could be put to an eod
at :my time without 8.$$ign.i.ag any rnson wh~~-cir and his SCl"Vi~ 0·
could be iegufanud oJJ.ly on ,atisfact.0ry ~omple~on ~f his trai.niiig;
(/) Thus, it i.$ clear that he "-"as under probation during the rdevui.t tui>c Oi
0
Q) and:if his "seMOes .tr-e n ot.sa:cisf..ctory, the saa:te C:o'!:ilif be put to .an end..
:,
:, ,
It does lr()f amount to ret·renchmene. , ,:; 0
(1) Sim.iJ~rly. if the l&"Vioes of a trainee i11e.rminated becawe oflJii ,,
C.
~
;:;:
:::,-
failure, to pau c.he prescribed te5t, it r.rMNbe·s:aid to be ~ c b ~ t . -,
It w:uld b< aw,• of non•r•ne.....t of con<ra_ct ~f employment i" 0,
e
()
• Soh.fn was •~olnled- as ty?',t~enograpner in a b9.tlk wi:h • ~ liOn...
Q)

3
(/)
th•t ~ ,- one Y•N he would improw' fiiti tw,ind sp0,1,1 to' 80 word$M'.l." !u\,
.and~•• a Stenog,-pn•r-Gr;id1 i)c.fminll!lon COl'Kluaed ey ltle tlantt. Upon~
fli:l!I,.. lO do sc, t\11 1el\tiees '-'ll,. termlnai.d e t ,tt111.• n(f (If Ol'le )lur:,SOhan
e~
0 "ft11t,t to ehao,;.g, 1hjs 11rml ntllon •• tie was not paid re.ttocnmttlr
Q)
:,
comptt1••tkin. DIIOU... (C:.t.C.-!MJ
• I
4
\

G:f
:,
(1)
~ 0'
I 1..... l

264 Labour l.-:iw • I
SUnibrly, in H trrya,w S tiilt ECC lr< Stl)rt Lid v R.-T.m l\ 'iJJW (2002)
S SCC 65-4, the Supreme Court bdd that terminatiou o f se tv.ice of
w orkn,.m appointed for 11peeific pur polle ,;1nd p<riod. Q I'.\ purp0$e
being o \.'cr and expiry of period, w:i:s ,r# retrenchment 'V.'ithin the
mc.1;n io-g of S«. 2(00), I.D. Ar;r.,
Lil<cw~e, a person m.iy bt- employed oo .i $poci!icd condit.ion
Lh:1t hi h:ii to :achieve a pmic,uhu target in 2 specified li!J'M: iind in~
of fail ure to do so, his appointment sh2!1. SClnd .i.utonutic:illy teroti.n:1.ted
In suc!i case, also, the t'"rmioa.rio u may not :unount co re-trenchrnem.
H,ot\•CVcr. in the prncnt ase, the respondent bad not bttn appointed
for executing a project nor were his services terminated at the ex.pity
of initi:J period of employn'\e.nt. In f:1ct he had C<'.mlinue<l in scrvi«
on accoUnt of a scrits of extension orden. The post held by him wu
110< aboliihed. In view o f ~ e (~c~ t.he workman Wa.$ ordered to Ix
i'einnai-ed with continuity o f service and full b.ack wages [H"?una S/41,
r.c.c.w. J..,1d. V P" miilt,g Offi«r. l•dtwrial Trib1w,ll, Hiu{IT (1995) II LLJ
lOH(P~l
l n Man.::,pM I ef M .C D. v f>f'tlll CJ;a11d CHp!tl (AIR 2000 SC 45,,1),
culicr appointment· o f worker w:i.s for o ne year 1nd he .»:.s 110!
oon{irmed after one year. But. after short b reak. workman wu
reappointed ag~inst vae,,m post e:re:ued by tei-rubation uf services or
another employee. Reappointmt.nt wai; n ot for fix«i period but the
workm:an continu.ed tO work. oo v:ac:ant penn.,:ment JX)$t for further J!
months. He c ompleted not Jess than 240 days of concinuow servlce
for one Calendar year immediately preceding impugned tcrmi.o-acio~
order. Th.is tttrmin::ttioo ~ u 10 retrend'l.me'J'l.t, Thus, he was mtitkd
tb be reinsL";Jted. In Ranjt n ,..11 Offia,. v s .r. J-l.,1JiA,A11i (AIR 2002 SC
1147). it was held that onus lies upon workman t() s.how that ht h.id
in r, c1. worked for 240 days in• year.
lo Dt/J,·i J>rin:ixJ & P1tb./iJfiiAI C,1 U d.. "i .LJJ/<J#r C'°11r1 VI/th .11:rJ
A11othlr(2003) I LLJ 102S (Del), t.he r-e;pond~nt workman bad bttn
in coru.inuous servi.ce since 1974 with period~l letten o( appointmc:ot
issued by the petitioner to him. T h e service$ of the workm:u\ were
terinin:i.t:cd. The l..aboor Court hdd tbat the chminacion of workm~
wu in .bre2ch of Sec. 25F, 1.0. Ac;t which!was challenged by the
pcdti oner comp~nr o o t11e ground thaL tl)e. ~ rvi~ ended because-o(
I
j
~
~
(I)
C
LQ}'•0£f Ret reneh 1nent and Cl o sure 265 C
norH·enewal o f cootr.te.t of service under Sec.2(oo)(bb}. T he H igh "'
<)
(/)
Co un did nOt accept thi.s <:ontention and be.Id that tbe leucr o f E
app0Umnent at the e.nd of which the work ~•s .servicei stood
terminat«l wai not the fint .i.nd only letter of appounment. There.f◊1'C, "'
(.)
th e petitioner company was not entidcd to avail the benefit o f Se-c. ~
.<::::
2(00) {bb). ;::
Kdlk:,-..,
1n CP.11?.D. v Ma,'.J,,t,,,, P,,,.J,ouam (2002) 9 sec 622, ,::,
the respondent workman ~•as temporarily appointed on daily wages. (I)
C
i he appointment o rder o f respondent mentioned his ~erminatiort :tt C
any time without no,ice. J'n the :1bsence of fixed term m the order of
appointment, it was held that provisions under Sec. 2(00) (bb) would "'
<)
(/)
nor be au:ractecl. Thus, the respondent's tenninatioo v.•ould a.'110l.1nt to
~L . . •
Howc:ve.r, in S1Wt11Mr,L.mar SJx,r,,r11 v Vlltd/ AdhiUri {2003) !I
UJ 10-94 (SC), the appella'nt woi'"kma.n was a daily w~er in_a Wd~,ue
Sc.be.~ Oawaha.r Ro:,gu Yojua.} o n temporary basis. His services
were terminated as the p05t w.is abolished for want of fund. I t was
h eld that~ the employinent of the appellant was oo-ce.rm.i.nus with the
scheme, the appcµaru could not be said to have been reuencbed within
Seo. 2(00) of the LD. Aet.
In Mniapal CIJllttdl Sanm:ia v B.Gj 'K.Nnt'11' (2006) 3 sec Sl. the
Apex C ourt explained the nature aod scope of Sec. 2(oo)(bb), LD,
Act, It w.as held thu Sec. 2(oo}(bb) contains an ~ o n . The f'mt part
of Sec. 2(oo)(bb) contempl:ares termination of $Cl'Vlc.e on non-renewal
o f the contraC\ o f employment o r lt:J expiry. The second put. of Sec.,
2(<X>)(bb) po!,tulat« tcrminnion of such contnct or emplo~ent in
temu of stipulation contained in that behalf. Tbe co\.ltt cla.rif:a.ed that
S.M, N.iltjf.arazu (2003)-4 SCC 27, i.$ not an authority for the proposition
tha.t apan from -a p r<>j~ t o r a scheme of temporary duration. S_cc.
2(oo)(bb) will have no application. The Supreme Coun had no oocwon
to COll$ider t.he sccond,put of Sec. 2(oo)(bb) in, th.at c:i.se.
In.the. prne.nt casd, the offer of appointment elc.rly contained a
term th.at -t he comract wa$ 2 short•lived and would be liable to
termioation as aod when the employer tb Ought it fit and propt:r or
necessary to d o so, which term the respondent workma.n had
· unclcrnood. The cue O:..,ly fdl under the second p~ of Sec. 2(oo)(ob).
 -G U00 3 ff W
'll''
!l
§

266" LabOur Law -• t .

.,i~
tay~O(f Ret r ench men and tJos'urr ·
. -?~
F
267,
• . -·~!,,, . ··•·.
Th: l:ilfjoisf'C~ iuid rile High C ~ er,:One~w}y pr«eedcd on ;J~ , I
Industrial Dispute$ (AnlC'n dmCot) Act. 1984 ~•1th effect U'Qm
d.
ba~}s ~.,!t ~ ~~sc foll ~ r fi rn pa'"': o~ Sec. 2(~!~b): ,f rl8•8 · 1984. ~ \;i:'.St . •••' ~
>~ • l..uo1tto CA.sc: S.'M. NIU J ~ '!! f'El-;E9)t' qtsTT.
· M.t.HAG.ER, KA~MATA.KA
[(2003> " sec 27J
1
•

~
~
.ij
Labour L.aws being bcricf.CW.l pie~s o!Iegisl!t'i~n are t.o
be interpreted i.n favour o f chid,ea~eliries in Ol$C!-Of dpubl
or wher~ i.t is possible to take i:wowkws of a ~rovision:
lw.
{

In .fhis c4;k. the tetrnin.atioo o f se~s oE'C:2.suaL workers

"R.etr e-nehmcnt,. in its ordinary-co~Otation is dlschargc -Qi "
Wx,ur" rurplunhough dJ<e ~ or work it..U is~nrinu.d.
a.;
cmp1oyUi ·in. Goverom eat· project/seliein.t on ~.e
e2pity of
Parliament ha's employed the expressiotl ..the ce.m~apion by
't

t:l:ie i,Efj~/fchtmc v.,s in quettioo..It ~ held diat 1to avail (!)

th, bcheficof Sec. 2(oo)(hb), the burde,, to ptove ing,ed;,nu
of sUb-d.. (bb)'i., on the employer. T hus, the ciitpfoymen't ~ t
beT,!Jl<?~fi.to b·e ~dee a contna which ~ ~ C $ tba[ it would
co~e 1~ an end with the expiry of the projea/scheme :uu;I the
~~rket? mu.st b~, Sbo"n to h ave bee~, ~ ~~\\-are of -~~ch
ttipulacion·::tt ,the 6o.mmel1(.Cmc.o.t of th~cmployment. A mc;c .-1·
proof o!'eff:1Ployfflent· Of casual work~t,t{diily•wagtn ui p.' · (
p •ttttxbcmc and termmation of their ~-on the projecf/' . '
~&imlngcoanendisn«enO\.~.Ktt i ~.ib:ecxoepUnn .
suo-d.: ~b). ~ll;t, .ili~ termination affl.oun~ to ~ .n~. :-1- ,
· Tb~ Ai;P' Cowt ob<erv,d: The <;:o,=>incn\", welf..:e
stati·iu,.u; SC'1¢ti] t<:heme$ and proj«ts' ~in,g~loyn:knt •.. !
oppbi'runitiei, though ibey u-e sh0rt•lived,; The ~jeaivc is io '
~et the need·of the mom,nc. Tbe.b;ene.6.t Of sua
.teh.ea1ts
~a projccu i:s that. for the duratiotl th"ey OcUt, they pt"ovidc
cmp!oYfflenc :t.nO Hvdibood to J"U.cb peOOm " woi.Jd not ha"Ye
(/)
bc-ei:~tC to .secure the .same bu, for ruch sehe.ni.ei or projecu.
~ U ilie~"·Orkmtn employed fot fulfilling the 11ecd of such
:,
:, R.a~ibg"j>hase projecu or schemes were to be.come a tiabilic'y
(1)
o.n the e~loyCC State by i:oo liber.tl.ly int~recing ilie Jabour
C.
In,; ~ lav.Jilr 0£ the workmen. then cbe N;.a;c msy well act
~
;:;: as :1 ~fui\•e· to the Su.te for floating s\lCh ,d::11:nk, and the
:::,- Sdtc- ~r~OPt to keep ·~way from ifljtjating such' schemes and
() pro~ ~ tr.) ti.mo o f dire nc:cd, becawe it may feet that by
Q)
the employer of c.be &ervicc, of a• workman far .<Zl'fY• ,:a.1~,r
""6,,:l.fOt#tr"whlle defining the ttnn ...iectt.ncbmenc'"• ~ hu:b u
suggenive of tl,e: legiJbtive intent '/Oassign dfc ttrm
•'
"rrtn':D.cbmen t'" a meaning wider tlfan;•p.1.t it is \l.ll~?t<!od to 01
h a,•e in common parbnoe. TI1ere~ fi. four e:it¢tpliobS <:arved ~ ({§'
i out of tbc anificially ex tendcdt me.tning of rhe .c.e.tm
. •retrendunent", uHi thereforivt"trm.iDation of s.,crt!Ce of a ' '
,;,rorkmao so long as it is attribmab.Je i:o the act 0£ the employt--t
f would £:all within the mtom.ing ot'*rc;frenchmcnt'"'.A't.btm' the
1 ~ 0 fo, ll."lJ,ui.1.1:,n ivu. Tu lM:! ciut:ptiJ Cn»n within d1nn~:wtg
-~
•· of '"re~ehmenr'" the tennio~cion o!sccvic:,e mu.1t·f.ill within'
I one·ot the lour: excepted categories.~Aµ:rmi.nition ~f $'erv~ice'
wJ,icl! does not fall within cat~6r.ie,. (a), (h), (hq) 2nd ,(c}
'~II ·-L· h . f • .. •.J.:- ~L ___ .... ,.P-
WOuldfau wu..u.lil I e me:1.n.mg O 1 ~t...il\.Um.Qn • · ·-:•~
p
'
The termin.aclon of $Cl'Vke-of"ii workman c.rigageCUn ~
,..,
0.
; scheme <>1'. project tMY NN arhc,4nc:co,te~ch.menf i-'ithin.~he_
0
• =<llliiigof .uh-cl.use (hb) rubjeet',\o'thefollo_wmg fo."4410•
being·,aruficd, • ·.• i l
@ tha'! the workman w.is t ~ lbycd in alp fuj¢ct ot 0.
scheme of tetnpoa:_ar'l duration; f"
@_
(u) tbe e01pJ0Ym.ent~ a~ n~•c.ontract, arulnot as1:
dilly.wager .tiJnpliciwi, 'o/hich pro:_,;,ad, fntcr alia
that the" cmplo~nt"slwl coine t0 :ui ~don qle 0~
f dpiry 0£ d)esehi!ii¥} r; Pt:oject; · •~ ~
I ~ ...1.,..~ '.• ~ ~ ,. .

=~
,, ope.aing the gates of •dlare- it w<)1,1Jd be' le1,1ing in onerou11 rr (iii) the ~ployuw:u c~me lO ~ tnd fUil~l!aneou,ly
3 obliP,t.iOd.t entailed upon fr by ex~nded a.pplicaB:oo of the I
(/) with the term.in.at½m ~f th~$Che~ or Pr;>iea ~
(") • •.f fabdur✓li~t. Sub-'ci11.U$C {bb) itt the defuutlon o f r't:trcnthmet\l i coo.ri.s.tently wit.h ,th~ 15rms of the eontr.actt an.?
Q) wal i.ntr'odueed. to take care of sueh like situ.ufons by the

.6]
:, . .
:,
(1)
~
 - , . . ., . 4

~
(I)
C
268 Labou r t.a w • I C
Lay.off Re tre n c h ment i,nd Closure 269
(tv) the "O;'Orkman <>ught to h ave bee.u apprised or "'
<)
(/)
m.11.de 11.ware of the abov~;r,id terms by lhc la S),1111tlrPr PrwadTiiivsriv $1att of UP. 1992 l.IC 324, the $CJ'ViCes
empk>yer- ;it I.he coru.mtncement of empfoymcnt..J of the "-'Ol'kman. a driver in the U.P. ~dw-ays Corp0ration who had E
c(nnpleted more than 1 year o f service, w .u tern:ullated w ithO\lt givirig "'
(.)
Conditions Precedent to Rqtrenchment! the notice in the prtscri:be-d manner to t h e State Government and ~
without paying the reu cn chmeot competl.$,lti on, it was held th;i.t the .<::::
S«, 25F l, l)'S'. down lhecondit.iollS prcccdcnt to retrertduncnt qf workmen.
or
order d i$missal wOlUd be void M i11ith and the employee would be ;::
Provisions· <::ontainc:d in Sec. 25F u e a mandatory pre-con,fo ion -a.n d 'O
must l'X': strictly oompli...--d with, it being a bene:Gc:i.J JegW.a.Uoo, 'The negative ~ntidcd to re.instatement: with full back wages, (I)
The iurure of ~ ;i.ecivities ofISRO, :1. rcsearc:b organisation., have C
form .-d-optecl'by the P"•w"ion coupled with the U$e of the word 'until" C
which Utttoduces the oolldition, shows that the cond1ti¢n$ m tt.St be fi.m a bearing on the sovereign function$ of State aud thC!efore it cannot
~~»lied before i•e-m:nc!troent c::.m be validly cffttte:d. Noo-<::otnpliance be held 10 be 'ind.\lSll'Y within the meaning of Sec. 20,), 3.Jld therefore ~
(/)
o f See. 2SF tenders th e order o f i:ctrcnchmcnr void al, ilfflio [S~ the protec.tion o f Sec. 2SF of the Ac~ would not be awilable to the
.f.;n,/,r R,,,1 v Ori11a S.R 7:C, 1990 LIC NOC (28)J, employcc:o of !SRO [Hanhjit T..,,.Aiar v UOI, 1990 UC 154 (CAT)i
Accord.ins; to Sec. 2SF, .. r.to workman employed i..u any industry 'to claim protection of Sec. 25•F, the fac:u to be proved by
who h.u been in cont.inuow service for not less dun o ne year under workDloln ~e: (i) the.re ex.isu rdationship o! employer -and employee~
an employer s hall be retrenched by that employer H.ttlil - (ii) be is a' '!-'o r-lc.m:i.n under Sec. 2(s); (LU) eS;tabli.shmem in which be 4
employed is. an "'i.11.dUM!)'" wilhi.p. the me-.ming o f the M,i a.nd {lv} he
{;a) ~ c. w~rkman has been give n o ne month' s MM in writi.ng
hn put in not less than one y~r o f continuous iervice u defined in
mdtc:atmg the t ~On$ fo r the retrenchment -;U1.d the period of
Sec. 2S-B undu the employ~r. These conditio.n.s are <::utnulative. ff
t1otice ha$ expired. or the workman h;;t.$ been paid in liC'u of
anyone is mUsU1g tbe.n SeC. 25-F will oQt be a.nracud. T o get relief
s,1.d , notice, ~ses for the period o( the noti.Of;
front the court:., the workman has to establ ish that he has right t o
(b} the work.man has been paid, at th e ~ime o( rctrench.rnc.nt, continue in service aod that his service bas been terminated w ithout
~peRr.:tiqn wb.ich shall be equh•alent tO 15 d.iy's aver.age pay 1;.0mplyini;. witb the proVUions of Sec. 25-P (S.1irtndm,'0U Dittritl
for every completed }'e.tr of continuous service or any pAn t>a""'1Ya'. o"o/dbh,i A ,.,,..;.,h (2005) s sec 1soi
thereof in cxcest of ~ix month;; and If reucricbment l$ effected unde r the LO. Act, the question o!
(c) notice in t he prescribed m2nner is'$«Vcd on the ~pprqpri:i.te compl ying wiU\ the principle:. of n.arural justioe would n ot arise. Such
Govemmc:nt ... principle$ would be attr2eted o nly when tht ser,.·ioes of some persons
tn S,mndrri' K:t11111r 1/4'!'.mo v Ctntrul GOl't.mmmt T,ubmni.1/ "J"ribk..-i/ (AIR -:..re terminated by w ay of pun itive measure or thereby ~ nigma is
1?81 SC 4122)., Chiim~p!)Q Reddy] , has observed th:u it is not. noccssary attaehed [Stau if U.P. v, N«r'!j AJW11lbi (2006) 1 SCC 6671. A workman
th:u he sboulrl h~vc been io tho service o f the employer for on e. ,r.,hok e:mployed on a part-time basis but under the control and supervision
year. 2"f0 days' w ork in:, period of 12 months is. enough to .sa1isfv o f an ,:mployer is a workman i.n te.rms or
Sec. 2(s) and is entitled co
requir\?rn~tu. ()( Sec. 25,,F [C.lW. Hurya1ta 8,;.,1d94!J1 v R.IIJ&,11 SiNilt c-Jaim the protection o f Ste. 25-F "[N,w lndia AtMtlldte U . !Jd. v A
(200;) s sec s91J. $411Jetirali1'.§IIII (2008) 10 SCC. 698}.

In Su,l(Jr .S1tfl'ri1'klUUnt.Tr!gropb (1niffit),. 8bopal v San!nh & mar

(2010) 6 SCC 773, the Suprem, Cou" held, In the !,.st few y.an it bu
• been «imimntly bckl by t his Coun. that relief by way of reinstatement
with b:i.ck wages is It()! #!Uto:natic e"en if tc.nnina.ting of..in employee
 Lab ou r Law • 1
. '".
Lay • Off Ret rcnc'h'.t11-cnt a n d Clo:c!e
"

--~ '
~ \, .. .. ,_
.is (Qu~ to be illegal or .is in OC:>r:ltnvcoticn ot the prescribed PfOCeduie th,. Suprctrn! C~rt.dir ~•\h£ ~n4enin,o. ttnew the<
T • ~L -I, ~
a~d th~t monetary cotnpensadon in liC'U__of r-e~i:e~nt a-n<i\back cheques in p;iymcnt of rctr<:n\:.U~nt compens:mon,
wage~ 1.0 cases o f such muun· ouy be ,appr,opnatc.Jn view of th¢
~Jotts.tid J~ posi~ion and the fac;c that :d ie ;workmen wcr:p e.o!.aied
The coun observed: A bl.re.ref.ding of slG1
,25,P, aho-w,$ '
' as daily wagers about,2? years back a.nd t..h'ey, worked ha.roly:: fo~:?)or
Lhat retrenchme nt. withip tht~ning of ~ (~ (00) mu!t
$.\1W'y the. follo..,.ing reql.Ureqitn~~ . }f .
3 Y.ean, reliel of ttinsi;.ateme.nc and back ~age, tQ them Cffl.ttOt be'said
(i) "llut the wOa:km~r:1 has been give&: onl moniht$ ..- -
to be jusrifted and i.nstead monetuy.compens'acion wou.ld~.sub;lcrve ~
notice in writing aAC:Lind.i.c.,tiag~the.ttaJOns,fol'. ,..
the end$ of jwtice. The compenution of RsAOtOOGI: to each o~ i):ic.
w~r ~fi $h,iill m~et the end$ o[ juitice. · f ;;. '
retri:ru:hmeot; .' """ -
, ,. . "t;
., n::•...
-(ii) that-the 'r ctrtnebm t 'must take.effect after the"
>
.
•• 1 ClauJe {c) of S«., 2S•P is· dirnto,y. in natuf'C.;l"ht rcqlliremfflt of

.n~tiCC under dtis scc:tion is~ condition subseqUCJlt. If ls onlr irnebdro . expiry of the pefiod of notiO!: i.e~'dn.e mQJi~ or .•,
tor. keepU)g the appropriate government info~ and thei-dorc ,uilurc • . e15e the wOrk.m'rd shofild be paid.ill. liN 0£ such,
to compfy:":ith it prior to effrttiog~renchmen~cf()ts not'ib~ re notice, wao.:... fof tli~ rioticc: pcriod!l . :
t,,'"'Y ' < fi' ·•
rctreolchm\,n/ (.&,,;t.:... u,,;= 'IfJ,,,nuJ;,/,'vskir,,j 1i..!..1,g AIR 196:l"sc. -Oiv that•at the time,Of ~efrt-.nc.hment'.tlie worker h11s
1617). -,- . . ~' "..:T , " been p-aid comP~sJ'tion equ.inM11t ~o 15 clli,y'.$'
' .. 'l-, ' ' • average.pay; and~.. •'/J :r ,
Lt.lJ)ING C,uc: PRAMOD JtlA v·ST.AT[•OF &JHA.R .

~ j •
.' (AIR .200) SC 1872)
i=•.•
' ~4-
.. (tv) that l_he n:otioe.~in ·t~ pmcribed. m.aJUliU is'""~~e8
· on the approeriate Government/spec1£1ed' ,..
~
Cltfs,not manditory for the n:treochment com~n.s:U.i,on~ - ~.L - .
~ruy. •
,_J -4
t .
:-
to .itX,o filp2oy· the notice o1 Teticnch,ment. Sec. "'25Ft
now~erc ~pea.Ju of,rctr'tllcluncot'co.iapcnsation beinl
p:iidf. '°
IM 6bjec1 of on..month's !\0ti& is elUble tlienpmcb~.,
~ · e e to search for alt~~ ~loyment uia/o, to aust.1in
·ot ttn.clcred to th~ worktr aU>ng with one ~ntb 1s tU)tid.}~ , hi.nuell· during that peric;,d:.: Similarly, t.li~ ;1'1ld:hod J~
Cotnpcn$ation i$ to be paid .ii-It.he ti.oie of retrenchmentf
disburseme.nl of compemaiioA t •t s evolved ill tli¢ interest QI
~ ';.~iq.~ • '·,
(/)
i':and ~ot before rett-cn~hment.J ,.."I . ,
1n tbis ""', ihe worl<u,an (dwy-w.g,rs) bad scn-.d c:onunw,,.,iy ;_
~oyee•s oonverueftoe. o:
~ 'for hoc Jess ~ one year. They c:h;ul~ t(nlµDalJoJ) O!,the'uJ
The coun funher o~(!ed_: ! tis ,rot nutidi tor-y f?r the,
:,
:, -Ser:vjees on-the ground o f non•complt:tnce with Sec. 2SF ,:>I f
retrenchment compensation t'gfacco mpany the nouce of •
rctrcncluncnt. Sec. 25F' noW~ie-i-spe.tks of ~ trmchmcnt,;.,;
0
(1)
C.
the! ~: Acr. The rcsponde.ots pfeaded th:n afit'r givi:ng' one ~ eompcnntion bei.ng ~id ori-~ rcd to the w~".rkc!~ ~):J W h •
;t,:ont!_i'$ notice of tcrmin:uion rhe \vorken -we.re served witli ~
1

~ fM l'lll),".tM •o.trn.·on the COQtT~!'Yr Cl: (b) ex-press!y pl'Qvi.des for, -,

a.r,Otbl':1'." notice informing them that the pa.ynients due to them ,.
;:;:
:::,- . unaer Sec. 25F have been calcula!<d and banker', ch,que,.wcr, . :,
me. piiyment of ~omre~Jt.i?~ Deing made ,~,. tbt tlmt ~
n M,1thM,11ton.d by unp!Kau on .1t. would be per~bl~ i:o JXl}
re.idy '-rhich they ;Were requited to coliea OJl a. Specified due. r
()
Q) ..
The ernployeet failed tQ do so i.n ~icw of 1he fact that
' W:eumeJAjwi'tetreoebme.nt. · \. .,.A

3 th ey had secured an iatcrim order !rom, the High: Court •

P:1.yment or tettde>rOfc;:om~tUation after~ e time w ~ OJ
(/)
(") protecting theirc.mploymeru.. Holdih_gihe ~chmcnt Valid, . r the reumclunent b'utakcn dfec:i would v:icia~ t h : : ~ r i t . ,a
Q) uid no~-complWlce "'h!-i th~ ~~tory P".°v~r~n J"upohos~ ~(!)~
:,
:, a benetocia! pu,p'."° and a pu~lic policy b<hiod •lr pold ";"'le •.
(1)
~ '
i • I ... ' '
,., Ii. ~.
I'
....,J,.-.,.,,,AJ.(,}y; f
·.
i1i,._"'_
;, ,,t,J...:&
©
 ~
(I)
C
La y- Off Re t renc h ment a nd C los ure 273 C
L ll bou r Law • l
in nullif;-iog the rcttenclrn-..enL O>mpli.tnoe wiUl cls. {a) and (b)
to
(1993) I LLN 809 (All)]. Sec. 25-F is •ppliruk also b,dk'..,orkm,n "'
<)
(/)
continuing i.n service for onc year [S",wbhai Cl:Mrhalr v S,.bJxJ.Jh N .
of Sec. 25F strictly .1$ per the uquiremtnt of the provision is
A,"4,u (1984) I LLN 601 (G ui) (D.B.) J. Sec. 25-l' ;, applic.ble even to
E
mtJ»dnt110·• H o we ve r, compliance with cl. {c) is dirm"IJ :and
sub.rt:.uuial compliance •:s:ould be co.ough.) 1 d:iily rated 11.•orkrnan. [ ~r.(wmf v M,,,ridpalOrp,r., Delhi(198n 2 t.LJ "'
(.)
85 (DenJ. ~
.<::::
Consequences o! ~nvattd Retrenchment1' llktali~ of, or irrtg'.llarity in, the making of appoi.Atmrnt canniX. ;::
be 2 ground to refuse to follow the provision$ of Sec. 2S•P [Px¢h ,:,
11te defuUtion of 'retrenchment' in s«. Z{oo) is dc-.r :md un:unbjgvOll$.
TcrmiJ1:.tion·o{ $Crvice n ot covc.ted withi.n the: ~ ccptc:d or cxduded LmuJ Dn( & RNh1111JtiM Corp,r, Lid. v PrttldJ11J Ojfi«r, ~ C,111r1 (I)
C
C.Hq;ories mc'ncioned in Sec. 2(00) amoums to recrencl,me,1L T herefore-. (1990) J sec 6S2J. C
non·co1:npli.ance with Sec. 25-F would vitiate such ter minacion. Compemotton fn cose of Transftr/Ctosur~ of Undertaldn, (Sta. ~
(/)
Retrencb1l1ent without complyi.ns with Sec. 2S.F would be void ah . 25-Ff/Sec. 25-FFF)
1111110. Such .iction wouJd entitle the workrn:ln to :1 decl.:i.ratiott for S«tioo, 2SFP and 2SFFF deal with ~ompen~ tion !or worknun in
~ominw tion ¥1 service '\\•ith full back wages [MW " J..p!\• Bttmi: ~ c2se o f tr2nsfer or closure of under:uking. Thcse two sections were
,..,,, (198 1) ~ sec 22si intrOduoed by 1957 Amendment to ~ Act. N o w under the: Amended
In c.ises where there is need for rctrenchmcnt uud the management Act ~ompen.suion it 5>2yable to workcn on the tnrufer of undertaking
luv(' acted IH;1rr1,firk, non-co~npli:mce with Sec . 25F(b} will gave the from one employer to another employer alro.
LJbom Court discretion either to o rder reirlMa~t or payment o f W her~ the ownership o~ m.a.nagement of an undertaking t$
compensation in lieu of reinstatement dep,en.diug upon tbc facts and tra111firrtd, Whether b y agrecme~t or by open.t.ion of l.a:w, from the
ci,cunHl'2noei o( each case:. employer in relation to that undertaking to a tlew eroployer, every
In th0$e ases wh en the retrenchmeni if proved unlawful, the workm:in who b.as been in. cominuous sen'l.c.e for not len tb:lll one
w ork n1;,1n has a rjg.ht to reinstatem ent with continuity of $ervice and year in .i..t w>deruking immediatdy bdore sucl, uaasfcr'.ball be encitlod
rit:,ht to wages for such ~nod. A workman who is improperly rcurochtd. to notice and compensu ioa. in accordance with the provisions of Sec.
h:is: :t dg.ht to ~fins.tatcmcnt eve.it if ¥Om::<>n-e h a.s been eng:ige<l lo bis 2~!'. a.s ;f the workn1>n had betn remnched {Sec. 25,FF), The liabifay
pla-cc. Th.i.s lS not t◊ ~y that there is no discretion in the Labour Coun/ (0 pay arises ,¢,i,the tnmsfer of an un.derukingand not. before provided
T riln.m.:il i.n case of manife-u lmpo$Sibility or inequity in ordt!ring the ase does n Ot fall under the proviso. Thep~ to Sec. 25-FF reads:
re insc-.ne-ment: !.n sucli exceptional cases Wher~ the retrenchment being PROVIDEO tb.ttnothingin tru$seaion shall app1yto2wo~
bm, j Ur, Lhough inYalid d ue to non•c:omplianoe with th~ r«Juirc:mem.s in :i.ny case where there hM been a change o! employers by reason of
of Sec 2.SF. the Tribunal nuy perh:ip$ d:irca p~ymcm o! compe:rui:it.ion. d1e transfer, if. '
'Bui that rule applies onl)' lO a ,·ery fe-w and m Uy exceptional c:1.ses {:t) the service o f the workman bas not bcc:n interrupted by such
{.\.111.r~ m ef Ot1.-is Srh,,J, H.>Ylbd.. v UFAAtr Corrr., 1991 U C 42-8 (A.P.)].
tl'AAdes:; •
Sei;. 25-F is oppJie3bJe 10 "d I», tcmporA:-) ' ernvloyen also, U they
(b) the tcrtn$ an.cl cooditions of &C"rvi<:e applicable to the workman
h.we workt!d for moro than 240day~ in a yel:l.r continuously i.m.medi:nely
aher 'such transfer are no-. in any way less favounble to the
p rcc.edint the o:·der of tenulnation [V»uth S11X11t11 v Ulbv11r Co11r1
workm.ul thui th~e applicable to bun i.nunediauly before the
tnrufer; and
9. V/11,:il cc,n~quenc.,,, follow in law II • PUll)Ol'led K ' ~ ~ t I$ h ~ ll'lo'•liO?
i (f.. C,ll-931

I
 ~;;/,
~,. ~
Labour Law • '1 Lay-Of£ Retrench ment a n d , Closure
f • ' ( ·
Tribun1l to give appropriate relief 1n Case of duc.parge o r ,
0
' ' ~ (t) the new employer· i.s u..ndcr the- rerms of ,1.1eh rransler or .
.odi..,....,,;-kg,illy liable to p•y to the ~o~ iri <he"W'' of dittrti.ss:U of wor:krneo. ~., ' -i~
ti
ln$ rettt11chm.en1, c::ompens:atio~ on the baw that his'suvi« Tb.e IndU<triol Di,puu,, Ad wu princil"'UY ..,.blished loo
hos !><en con:inuous md b., uoc been intcmJp<;ed by thetrk/,,,. the purpose of pre-empting indust-iw tensions, proviiing the
mocb;uiiC$ of dispute rcsolucio".ls:' a.n4' setting up the ~~ 0
•
Under. th'.epl"Qvui.oru' ofSec. 25FfF though tcrniliui.-i.o.o of services on
dof~ pl. t:iu.sine.ss may' not be r etr cnclune.nt, ):be workmen con~rned infr.1.SU'Ucru.re so that the energ;es of ~ in ~ i o n_may ;;.~
~ .~ tided t0oompcmatioo :u ,if. t:b,e said ccmw.ution Wti rctfencl:ment not be dissipated in oounttrproductivCba«lC$ 2nd :w~e o{ ©
~na tlie compensnion pa}'·able under Sec. 2SP. 1 i.Dd\l$trial ju.stice may create a c~u: of goodwill. T h ~ ~ 't

~,
:
Courts while 2djudiating o:i d~es ·betwl'CO the' ~ge,nent
l l.':'OI"°' CAS.t: V.P. STAT£ BRASSW~R.£. ' CORPN. l TP. ,, UCAY I• 2nd the workmen. therefore, inust a1liC such decision$ " 'hich
0

HARA.It,! PANDEYi ¢ k wduld be in coosonanoe with the,purP,OSe the l~,... s ~ ,to~

_ · [ (2006) t.~tc UU.79]
. .
i"
,J
1n this ease, the ~ relate to the direction to .Par b1ck·w~~
(by t h e ~ Tribun.l .ffimied by the !iigh Coun) ~
UP-on-.1 decl:1.ntion th:tt a wor-kman hits been retrenche<I tJi.
t iol:itio:o o f the proVUio~ of Sec. 6-N (corresponatng to~- · 11
1.J?.
2:J-'-f... Act), The service$ of the rcsponde.nt.worlunan, .-
wage labouter, <(t.tcre term.in1t~ oo. lhe expi.-y o f Im t(!nW"e. ..
~• f\n.~ dispure wa, raised by_lilin ~~n,epduig dw be w'I¼ · ·
, <'~~d.to b:a.,ck ~ges not be:cir~ the tindcrtak,i.ng w-.u clqsecf'
_ achiove. Whenjusria! ;,th, buzzword in the....,,., of ~tjon
un1ier the tndustrhtl Dispuces Act, it !"cit¥ be wh~llY.~~-"
- oh 1.h e pan of the superio:- ooum 16;make them applyffe cola
lettc.r ol the statu~ co 2ct mech:10ieall,?;•-Reoditicin of i'=1stice
would bring within its pu.rv.iew ~yfug ~ "p.wotl wb.a~;,di.ie- to
hll!''and not wht el.~ be gi\'en i? ~in bw. A Pl:!~gn is not-
'
so. If dt:1.t principle"" applied. i.hlhiiiafons of an
C.Outt .shall lose much of theit sigitifu:;~.
l "'tri>l
<niitled to gee s o ~ g only beca~.!.'.1'/ould be !ii~ to do
l
0
'

t
~ down but becawe ht was w ro?&fully terminated from uic ,
--;> t '

Although dittccion to p,y full \iocl\;w.S" on a d,cl,mion ,(:;).

, ~ scrvi,ces,, The appelb.nt corporation contended thn, chl ~
re~~~~t's •crv:i,xs were contnctyal (for a fixed ptiiod.):; -1,
~t,.d1e order of termination WU-Jn~Jf4 psed to ~~JJii.u.fya.l
tesult. but _now, with the passa~ ,or ti.mc, a pNgim.t1~vJe•· or
.. 9.
•
r-~ , • S«. 6-N b.as no a?~lication. Rel~g.~n or 9'l the princiP,~~ thj: matW;, being i.k<n by th,•~ ~ g ,bat an ind~,y
(/)
o( Jlq_ work no pay 1t wu urgtd that for the period the
' :' t~PCJndent did noit work, he w~ not cO.tidcd co any wages
m2y not he compell~ to pay to the _!fork.men for the pehod
du.ring which he apparently conuibutcd little or nothing')..t ill
' tl
~ . t lti~~uS .~~ gram of back wages; bj, diC ~p1:1r Court ~•~ to it and/or !or a period th~t was Spent uopToduct~\-ely as' a.
:,
:, · , WlfUlt.ima. Fun.bet, the respo~nt ~ -aho noc incertsted in~1 res-ult whereof the <'mploye.r would be.compelled ,Q'io back 0
(1) . th• job. to a sitt~tioo 9.•hich pr~'3iled many)~ llgo, namdy, ,:_hen
l'
. .. •, I
C.
~
T~e Apex Coun o b ~ Onlu 7 ~uL, 7 o f th• Code
· 9f Givi! Procedur~ confenrpower up0n me Coun to mOuJ.~
the '\\'orkm:ut was rcttdld:ied. The ~ e s brou.ght1p.1:iout by
the rubscqumt decisions of tho Sugffillo.Coo,:t, p,obablr ha,oing
o,
;:;:
:::,- -¥~Ji#f U.J a 'givcn s,it~c;ion. T he pro-vi$i6ns .of tlie Ccxie ol Citd _ r~ to the ch,u.tges in,the palicy ~ri~~ns of the go~ ~t,
() . ')Procedutt"" applicitbl, 10 the ~ i J . k iIn,.~ in tht: WaU of prevailing t.n~rket eoonomy, glob2hut1on, OL
Q)

3
(/)
Oiip~u tn ";A ~ Section l J-A of the Jiidii,rtri~f bt$"putes
cmpowu$ the Labour Cowt, the l"r ibuna.l.:uithli~ NabOn:il ~
Adt Priv-.uiution•
and ouuourci.ng,
I
at_: "¢.~3eot.
• .~ ·•~
:
T h e payment of e.ll.tirc bac.k 11/agt:$ depen ds u poI1,the ,
hiCU and ci.rc\unstUl.cb of~h C:ue:tt:i~ inCorr«t to.$ay that
oa
(')
Q)
:,
.. I f ' I 1, . o,
:,
(1)
~ 0

276 Labour Law -
it is :aurom;1tic or it is the tw'Ul"'.J'con,cq\lcnce. It should not be
gn.1.ned mech:anicaJly onlx because on technical grounds ot
0 1..h erwi.se m order of termination was found to be in
contnvention of the pro,.·isions of Sec. 6-N e>J the U.P.
Industrial Dispu1.es Acr. While granting r elief, appli~tion of
mi.i.id on the p-,ut of the Ind·u.su-i:af C<.i1,,1rt i.s imperative.
1n rhe present case, as the q.,mion as regards termination
of .services: of the r.?sponde.nt by the :ippcUMt is not in. is$:uc
it will be :!$$urned Lhat his -services, wtre 1erminated in violation
oCSec. 6-N of du: U.P. Indus.trial Disputu Act, furthermort-,
the es.t.lblishment of the appellant wht-rcio the respondent could
be directed to be rc.imtat«I has bctn sold on 26-3-1993. In
that view of th,: matt«, Sec. 6-0 of dle U.P. Indusrrial Disputes
Act would apply in lerms 'Q.•hc:reof compe~tion will be pay\lble
in tbc sune mann er ;as if he "'"H rem:nched under Sec. 6,N
chcn.X>f. •
The deci$ion to dose down the e$tablishmcnt by the
State of U.P. like olher ptablt-C w:tor org:u:iizatiC>n$ ha-l been
uken fu back as on 17• 11·1990 wherefor a GO h:ad been
<1$
issued. It h.ad f-urtbcr be.en averred that the $.Ud GO ha.<;
-luhst'antinlly been impkmcntai. ln this view of lhc nutter, the:
intcrcn of juscice would be sub-served if the back wages
pa)~ble to the re$pondcnt for the p:riod J•;f•1987 to 26-J•
1993 i.e. from the d:tte of h.is deemed illegal retrenchment , o
the ddte of cl0$ure o! the undett2kiog. i.s ooofined to 2~% of
the tot...J back wages p.ay~ble during the said period and
c'o mpensation payable in terms of Sec. 6·0 of the U.P.
lnd:ustrial Disputes AeL]
Pr-o<;,e-dur'e ror Retrenchment 10
See. 2><:i by$ down the prooedurc for retrenc.hruenL Where any
work.nut!. in :m imJu.strW establislu"Mm, who is a cix.izcn of Ind.i:a, is: to
10. 'Ordio.<I~. 1M'Jatri1I rufe c( rot/$11¢."tfflotl"I I~ '-•st c:omo. firt,t po·. Ho.,,..ve,r. lh•
ruto IJ; ~ imffill.ablo •rd for va.lltl alld •11fficii,11t re~i:on!;; .;,,, emptov-r mty
dopart fl'Qr'l'I il- c ~,"lt, (C,L,C.-$6?
~
(I)
C
C
LarO ff Retrenchm e nt and Closu r e
"'
<)
(/)
be ret;Jcnehed. and he bdon~ to a pani,culu category of workm;i.n in
1h,1,t esublishment, i.n the absence of any agreement betwc~n t~e-
E
cmployer and the work.man in this behalf, tb.e employer ;b.:i.ll ord.iru.rily "'
(.)
re.trench th-e work.man 'O...bo was the US! person to be employed in thit ~
citegory, unlt$$ for rc.uoo.s to be rttordtd lhc employer retrenches any .<::::
other workman.
;::
'O
Sec. 2~G gives !<gisi,tiv,, .-ecognjtion t o ~ well ,coogni,od ~ple (I)
retrepch.mmt in ioJusu·W law, namely°' frrst come la.st go or last C
0( C
come firs-t go•. Tbi5 principle is required co be adhered t0 br eve~
employer in an industrial unckrta.ki.ng. However, where the c,agcne&t$ ~
(/)
of ao. indus.try .$0 denu.nd, t.he procedure an ~e: dep~ned &o~. If an
~mployer departs from this rule, the bu.rd.en LS ~n him to utiuy the
COW'( as to the justi£i,1,bility of his action (W'4,nb,,.,,11,JqnhaU1 TM C11 Lid.
T TlN Mo11MJ_t111tNI of j1JTtiuw '(ta Co. Alil 1980 SC 1454].
T hus, uy deputure lrom U'le 2.bove principle it possible in two
cases, namely - (1) by an agreement_to the contrary •between the
v.•ork.mnl and employer, and (2) for ·iUly other reasons tc> be recorded
b>· the employer. Th.e provi,-ions of Sec. 25G are dmttot;y.
[t is noteworthy that the al,ove principle h~ t.O ~ ap~licd wi~h
respect to different catcgorid of·Workmcn employed m an 10dus.tr1al
tstablishment and not to the ~&ole ~f the eru.blishl"MDt, <?n!U'wise
dusi.fication of workmen WiJJ not create diHcrent e&tegor,es $0 :as tO
cxdude opention of See. 25.G in use of retrc1:.Cbment of some 0£
the worken f:alling under a different grade [W,rura~ ~ j¢f'M111T_14 ,Co.
(1980) J SCC 406). The principle of 'lut come first go u "°'applicable
tO tcrDllllation · of the ~rvices of a temponry emp!oyee on Ule
wc.ssnu:nt of his work and suitability in ~ceordance w ith terms and
conditions of his service [Stal, ef U.P. v Kmttlx:l Kislm-t {199l) sec
(L&S) 587).
1'hc well recognised priocip·ie of rcu-cnclunent i.s that rmnagemem
should start with the Jate,t recruit and progrfflively retrench employees
higher up in the seniority list. Howe,..er. the management can ~a.ftdl
rewn the employees possessing .$peci2l q~tioQS ~ose ~f'\'~$ are
nt0e$SU}" in the i.ruerC$U of business, irrespct;twe o f t-hc11 seruonty (Om
Oil & Oihttd1 Bx,Jw,w, Lid.~ TMir ~P'11r.tm!l'1 Alll 1966 SC 16$7). The
 H, 27s·._ Labour t.~~v • I 1 , J
~ ~
~ · may
triptY'/Cr •• tli'I-C
,. •w to accovnt co~J'denitions
. • l :1,}11,
o feffiietcq,r. 0
trus~ •o:'tti)i dt'a nekt of workmffl ,,:lld if 6.i .is .s;,ti,$-6:ed that~ R(~n
w.iti\'i JO!l&.~ ~is 'inefficiein. wu-di:abti Or hab!tuluy U°r~ ln the
ai.s~B:1.rg~ •6 tb:is0Utiet,.it would bt- opcio t~\Jil ,e'~plo'Yiiito.Jtr~.D'eh ·
a~
hfs;Servioes -(SmudillP!iltm11 Lid. v f[>"o,k_ey_,,, AIR. 1960 SC 762J;'Tht·
principlf i.s mtapf>licable in c:LSe 9ftl~ss of colllidenct. but ~fii~h a 0.
ca.ie .r:e_awos inµn be rtcordcil {.1l¥;~/v It.;( J'TRC, 1984 &.1:1 IC
i17'94~ i/ ~ ~. I • 'I! ' , ~ , ., i

• ~ tie f.1ilurc to cbmply with, ihe-"i,~irlcieie Of 'lan ci>me fii.sr'f.~'

1
0J
.'
or ~c:ul: M departure, the reasons' fdr·stlt:Ji~cfep·.uturc n-J rici~ ; 0
.,r~ t ~ould·r'e~dcr the ttlrcnclui:tcnr id.~.ilid. ;.. f I
g,.y~: -· t • ~ ..-. f
R~j",' ~i'¼t.1.nt ~~ R•tr♦neh·td workman ...
6 • t

r .
T.
e
\
Re:tttnchmenr 4>! surplus NH caust$ ,u ncl~ suffer!,OgS nor only1co die ·1 0·
~l
rct~tt"ch:e<fwOrk ~ but to all bU ?iPendlD.ts. i~elore, in ordd- ·to
~VOia hardsliip to the worker :and b·isj.unily~ -th~,'p·~ ion, 'h fiJb~
mil.~ m Sec. 25H tbic such worknu.n il:io·i:iid be given :an oPi>ofttui'rtY
t.~ join service "'henevcr an oec.ls.ion ari.$11!$ to eniploy aJ1oth'eriand.
This ~ t \ Casts :\ff obligation on t.be,employtr to gi:ve oppo~y, ~ • ' ®j
.n,~ •Tfnlt.ma" in ruclt a c.ue and p!"ek:ribcs cemin condir.iOru·which
showd,be nilfiUed by him in order to claim Ptcfiren~ in empldyknr 0
o,-er, the'
. o'rher
., workman seekiog
' cme''loyn'lerit' under the cmplor,cr.
L
'I ~~ ~ fL
(/) Sp•ltaf,) rOvtStoni: relatina to R•trenchment in Cer:tiJn 0
~ Ettab11Shfnents· [Chapter VB] - • t
:,
:, T6e·P~vlli~ns ofthis Ch.\pter shall apply to an industrial esubluhir.ctlc
C ; • • • • _.. . • •
0
(1) (J!ot bCing a.o. C$lablisltmenr of a se,isonal char:a~rrr or in which ~,?rk
C. ,0
is·per(Ormed only inten"l'Uttencly) in which not bs than one hun<fted
~ Workmen w~re cmpJoyed on an avt:r.-ge· per working d;iy foristh~
;:;:
:::,-
()
ptec~twch•e months.
tt·~ t ) ' '· ·1 ·
o·"
. ~~ i--or. m m:abl~~~~t ~mplo.ying tO~
~··?~ m9re :Vorke~,.1:hct,cq
Q)

3
(/)
'/\¢; uru:l_e:r chlptfl'
1
V-B, ~ prior pertnn$ion Crom the gOVCttU'nt'nt
~YJri film clorure or workers' re.t.rerichh'le.n t, The workers ii.;' t1:le$!
t!ilf
firms ;r~' ~rtticleid to t.!iree months nOt1ce of aoy' auth ·-1aion. ·
• rd
1
(")
Q)
:, • -
:,
(1)
~
01

2llO
Lab o u r L a w - r
(5) An o:d.er or the ~pproprlluc go\'~rnrnent/speeiried authority
gran~•~g or- refos1 ni tO gr.mt p~rmission .sh.-U, subject to the
PW;'l$10 ll S o f sub-sec. (6), be fin:1.I a nd binding o n all the
p,tn .•C$ eo.ncc.rncJ -.nd sb.:i.ll rem:i.in in force for one yc:u from
rbe d,ue o( such order.
(6) l'h! appr<ipriatc government/ specified authority nuy, <"'i ther
~n ns own m(>li<)n o r On the application nude by theem_ploycr
o r -any work.m.tn, r.evie~· iu order muk under sub-sec. {)) or
r~ er the matte r o r, .is the case ma)" be, cause it to be referred
to ::i T rjbun.11 for adjudication:
PRO VJOFD that where a refer ence has bee n made co a T ribuuaJ
under thi$$1,1b•.\CCtion, it shaU pa.ss an :iward within a period o f rhin:y
, b ys frot:1 th e date o f such refere nce.
(1) Where no 3.pplic:nion for p,ern,js.sion under $'u6-scc. (1} i.s
mt1de, or where the permission for a.ny retrenchment ha.1 been
rc:fo$ed, such ~ t:reucltme!1t $hall be deemed co be illwzi!rom
the d:ate On wh.ich the nouce of ret.r~nchmem w-;u given to ~
~orkmrui and the workman $hall be cncidcd to :ill the bcneJiu
under any law fo r ih c time bclng in force a.J iJ no notice had
- been &iven to hitn..
(SJ ~ ith~nding t nyd,i..og cont.lined in the foregol,llg provisions
(.)f thl$ ~ ruon, the :ipprop:~te go,.-erwncnt 1roy, if it t$ S;atl$fu:d
~ towing to such excepoon.il ciro.umunoes as accident i.n the
csubtisb.ment or <k.ath of the employer er die likt. fr is necessary
so to do, by ~tder, ~irect that the provl$ioos of sub•Sec. {l)
shall x~app}y Ul relmon to :rud., cmblishmem for such period
a.s tn.a}.. be specified in the o rdi:r.
(9) Where permmion for re trenchment hli been gn 11ted under
iuh-sec:. (.)) or- where permission for retre:.nchment is dee-med to
~ gr.uu ed ~ der rub•~ (4}. C\<ery worknu.n who U ffltployed
Ul d,~t es'.a~lishment 1.-runedi:..td y before the date of application
foi: ~ fllll$$10J~ under tJ1U $«lion .shall be en titled co rec."tive,, at
the un,e of r~":nchment, ~.llll1tior,.v;,hJch WU be t>qu.i\f;l]ern
to 6_ftce n m,'$.a\·er-.1ge pay for every co mpleted year of
co.ntu1uous serv1oe or om;-~ thereof i.u excm or $i.x months.
•
~
(I)
C
C
t.a y - O ff Relre nch m c nt an d C losure 281
CLOSURE
"'
<)
(/)
E
Aoool'Oing to See l{cc) , ..Closure" me.int the prrmanent cl~ing down "'
(.)
~
of a place of employment or .p.art thereof. .<::::
T hus., in d Mure, there ti severanc.c of employment- relationsh ip , ;::
The closurcunnot be.limited or restricted <>J11y to fmanci.at, economic "O
(I)
or other comidt:r.nioru of th.e liu natwe. The closure ha.s t0 be cenuine C
wd bona fide in the sense it wovld in fact and not a mere prete.nee C
for cl0$ure. The CJ1cire ut of c~unocs and facts have to be u.lcen ~
into aoeount ..,thc tribu.rutl or court is not con.fi.oe.d to any particular b et (/)
o r set of &.cu or circunuu.nCC$. The esseocc of the matter is not the
rca.$0n but the f~ o f closu.rc l:,y ,vhatever rC:a$0N mot~'ated [KJ~
T11~s JJJ. v TJNtr uv~,. . AIR 1969 SC 90].
T rue t« t to be :.pplied on the basis of eviden~ is whe ther the
c!orure w ·a.$ a dl:vicc or pretence to termi.nue s e ~ of the- workmen
or whether i&w.u hrma jirk and for rCa.$Ons beyond the control of the
erri.ployer. O untion of clOSUtt may be significant fact to dcu-nninc the
intentio n and b,nafidt1 of the e mployer a t 1he ti.me of clon,re bu t is
not decisive o f the m.,1tter [ C M1tt.1I L,::bt,.»r U,niott v B. V. Cba~Jt (1985)
1 LLJ 82 (SC)], The go-vemm.ent. may a:n.nt OT dtny permission for a
closing. even if the co ~ y is losing money on the opention.
. .
Sixty days' Notice to be .atven of Intention to Ctose down
Un<S.rt.tklng (Sec,, 25FFA)
(1) An employer wbo intends to close down an undienaking sh\1ll
serve, at lean uxty <bys before the date on whi.ch the intended
closure is to beoomeeffecrive, ii noDoe, in the prescribed manocr,
oo the appropriaie govcr11ment uati.ng cleuly the rtlUON for
the intended closure of the~ruki.ng:
PROVIDE~ that n othing in this: sections.hall apply t~
{a) an undcrtulng in ~hich• (i.) loss th'-D fifty workmen are
e.mployed, Or {i~ )es.s than' fif,y w ork.men were ,employed
on an a verage per working day in the prieading tweh•e
month$.
 r q
-262 Labo ur Law, .. I 0
• I
(b) an undertaking $et up for c.he construction Qf buildings, Q
bridge~, ro~, anals, d3ms or for other c:o.osb ~OO. 'f?Ik
or p n:>Jtct.
{2) Not"!ith$t~diug anythin& conr-a,ip.cd in , ub«x.. (1)/ JiC
I
a
appi'opria~ gov~nment ma)"; if ii i.s s~t:isfii?d. th.;it o w:i4g,to
.~uch ~,«piioff:U circumstari.~ as·accident in the uitdert-.uing- 0
..~r death of the employer.9r tht l~~)t.~ nec,:nary so rqdo,
by. o.rdt:r,,CW'ect that prov~io~of $ub-~. 0) t balJ' not ~ply 0;
i
,., iQ.. tt.\ation to $uch undcrUktng for•slleh period ..1s,may,l?e
specified in the !)rd.er,
0
The ID Act did not tt.tt.rict complctdy the right of the em.ploye.r;,to.
clo~e .an unprofitable bU$Uless. The •mt-ndmenfin 1957, ttqui.rcd' tlie.
•
~JOy« 10.~IJta# the workt:n affected ~ ,dOSW'e in the i:l.tX\,e ~ y Qi
~s ll~$)'·were rl!t~ndttd. ill_~ 6.~ §! &!ft ~<»~:.me go~~'
.. ~~-~~ es~blish,rnenc •sick 11.n~,J ~efir~-11 i:guired to QOntutue d'
lun~ti?nins ·o n the bas.is of govc~t ~~ ~ ~
. . • .,..... (S)'

. ,~. e~
l· ComPf"nsatton to Workmen In Cl(!Sina.down. of. U~d•rtak.fngs (S'.oc.
l _5 Ff;F,) t (,
(1) Where m ~ is doted do,vn for auy reason. ,-.ii,~f:r,
CVtry workman who has been in.conri.ituous se:rvi.oe for n ot
ltfl than orte year in thu uruk-mkin.g ~ J y bcfore.5\tC'.h;
Q
cl<»ure wll, oubj<et to the provwcini of SWM<c. (2), be.eq~,leci
(/) t0 notice and compensation in a.cc9rc!.iw;{ with the provi~ns ~
~ Of Sec. 2SF, as if the workman h.a.d been ntrudml: ' '
:,
:, PROVIDED thin where the undenaking i$ cl.a.std do'\\.'r,. on a~°'lnt 0
(1) oft~vOkbble'ci.rcwnst:u,iccs beyo~ the concl"Ol 0! the f:fflploycr~t'be
C.
contpens;itioll to be paid to the worknun un4et d.a\1$C (b) o f $«, 2Sr-, • 0
~ shall, not exceed his av~nge pay for th~~Onths:
;:;:
:::T
() f'.
Exp/a,,;,;;;,,.
of-,
Ao \Ultlcna.kiug which t, closed do~n by. reason ~c,,JJy
I
G,,l
Q)

3
Ii) fiiuneiaJ dilficuJ.t.its (including linanCW losses); or . ®,
(/) @ accumulation of undisputed ' .. '
off_stock-$; or t, j.
(")
Q)
:, ~ the. expiry of the period of the leue o r,Lioeruc gn.nted,to
►
o:
~
:, it;or ·,
(1)
~
. •
•
'
 • L abo ur L:iw • I
.L11rO ff Retreo~h men t a -n d C losure 285
~
(I)
C
C

for every completed ye2r of «>ntinuous scr'Vice o r ;my p;irt

e-;•ery completed yeu of continuous service o r any part thereof in
C'Xot$$ or six mo nths. .
"'
<)
(/)

thereof i.n exce$:> of $ i.X monrh.s. , · (Employers with 50-~9 workers need only to notify the government,
Procedure tor Closing Down an Uodeftbktng (Sec.· 25•0)
.Each of the three .amendments ot'the A'c tjn 1972, 1976 and in 1982
~crn.ingly gave g.rttter prqtCQ:ion l'? worktl'S 1h.1n t he pn:ceding one.
U ~d~r Chaptu VB, in the current amended venioo er.uployers
employrng 100 Qr more worken: mU.$t give 11eM of a dorure tO
workers or ~1~jr representatlvt'S and 10 the gove:rnment, 90 days p rior
to lh~ date~( Ultcnded do:sur~ The employer , iu his request-, h-as to
~ate .111 ~:1.i.l the 1'((1/().¢:t for clos,i.og <k,w-n the business. The gOVC7lllm'llt
inqu,rcs mro thern, hears both panjes a.nd eil'hcr grams or refuses lhe
J)<'nni.ssion m dose· ~ 7 the Jatter. Re!\1$al has io be commwiicated
10 th~ p:mies in writing ":ithin 60d.1ys o f th~ notic:e Irom the employer.
An o:<3~r of .the ippro_pnate government gr:tn\io.g-or refusing to gnnt
r~nUJtl,,..)OD .sb:ill be fuw and binding on all the p::t.nies and shall rcnui.n
lit fori;e for one year from the d:n.e of $\I.ch order.
The :.fp"?prilltC ;overtu·u e nt ~y, cit.her on its own m qtion or
o n the .:ipphc,mon nude by the employer or aJ1Y w()ritmui. r~'lcw its
order (;:"'Ant.fog or r efu.sing to grant permiWon or refer the niat~r w
a T ribtimd IOr adjudication: PROVIDED that where a ~erenee hu
bC:Cn _m3<k t~ a T ribu-?al under ~ht$ fUb-.scetion, it shill pau; an 11w,,ud
wuhm i1 period of•thu-ty d11y1 aom the d;ite o f nu;h rd'crence.
. ~~ere ~•.o ;application for per.mission is made within the period
specified theret.n, or where the pcnnissio11 for dorurc has been r&u~d
the clo:rn.rc 0£ the undert:.iki.ug shall be deemed co be ii.tgJ/lrom th;
<i.'ltC of cl0$ure and the workn'ICta sha.11 be entitled to aU the benc:fo:s
under any Jaw.for the time being in for~ as if the t1ndenakiog hul n0t
been cl~ down.
\Vhe-re. .w undiii-aking is permitted to be closed down under o r
whcr~ pcrmissicm for closure is clcemed t<> be gr-Mted.. ~cry work.man
w ho_ ,s ~mploycd in tb:at urukrt~king immoo..i.ately bcfo.n:: the date of
:ip-plic.ioon for pernlWiori under this s«tioo, sh~ be encitled to rec-e!'.'I!!
ccmpem:1lioi, which .sh.all be e,quiv:Jent to trt\«o d:tys' .,,,.-cr.:age pay for
E
while those with less than 50 employees need n0t even d o that ,o close "'
(.)
their business.. H o~c:ve,, i.n pn ctice workers lll such firms can app~I ~
to other l;aw.s, such a.~ the Indian Contracts Act. 1972. to resin: di:smiss:il]. .<::::
;::
L t1:DINli CASE: MIS OIUSSA, TElCTIU AND STEEL LTO, v ,::,
STATE OF ORISSA (I)
C
((20021 I LLJ 858 (SC)) C
[The amended Sec. 2.S-0 l:ays down guidelines which are ~
(/)
to be followed by the :appropriate government in granting
or rdusiag permission to cl0$C down. It h" to have
reg:ard to the genuin eness and adequ~ or the re:arons
suted by the employer. However. merely bccau,c the
reasons a rc genuine aod adequ.ate c:innot me2n that
pcnn.ission to el0$e mu$t neccss:arily be granted.
There could be cases where the i.ntere.st of the gcnc:ral
public may require th:it no closure takes place.
U11doubtcdly, where the rca.sons: Slre genutae·:111d alUquate
the inter$ of the general public must be of compdlin.g
or overriding nature.}
In M/~Ori1111 TIXfi/umd S/u/1.Jd. v S~11 ef Orina (1995) I LLJ
67> (Orin•}, the...cons-Ututional vilidity of Seiction 25-0 wa.s
dul.leD.g«i oo. the gr'ouod.,tlil\t the 'right to coatio.ue business'
V?ithin the meaning' of ~ 19(1)(£) ol the Con,s.titution o f
India includes .right w c.lo$e do~n the business a.nd the &ct
that. the ejtiun cannot Uercise this right inasmuch as the
permission of the State Govem.mcnt if required under S«tion
25•0 «fore cloiing down the buslD.t"Ss, infringes the right
gua.r,mteed under Article 19(1)(&). T his contention is based on
the decision of the Supreme Court in f.:x«/ IP',<1'1" v LJ,rio,. 4f
I.,.. (I 978) Il LLJ 527 (SC), but d,, iA!innitics pointed out in
this case were rectified by unendme.nt of the year 1982
{Amendment made by Act No. 46 o{ 1982 and enforced with
effect from 21•8•1984).
 V, •- j l!

Lab'o u r Law .; J ~
1 t It wit held that the decition,ohhc Suptc:me' 9?'-'rt in ~
tl"',,r.4:mtfi: of 1\JU"ll.~hi. lWilk Lid. V Mm:#t)uhlM11/s LJJ. (1992) n ~
ll:J 2~4'('.59, would equally ~pply to the PJ"OV ~ of 5«~9'\,i°
:,
(iii) Eve.n after permi.s,'ion to d c»e bcihg,§_ive.n, tll.c
cniployer hw still to''gj.yc,notice llnd c:o)D~nsatlon
u specified in Sect.ion .:2$•N. <
B
0
~
25:0,al ~m~ded by the Act 46·p t t982,, Tfc ~iglu-.to dose t
~ '-l:i1.1$..Ulffl is'an integral pa.rt of t-hc fu.Cu:bunenia.l right to carry t (rv) The other°M ed tli;at nh\imc limit hu l>een fixed
'efn businie$$ U!d i~ guar,.anl"d oy ArtiClc i9(i)(g) ol the ii while refusing ~ srori';o d ose W':l.i n.o"• ~ur.«f;
Constitution. Tht dOSUrc-ofthe induuria.l undcru.king i.$1.ikdy by ,uo-,eetion (3); (◄). ,n<t'.(;J of untn~ S,ciion
to:ba.Ve a~vcrsc ir:np,1;ct on the in;ere5i of the working c l.a~ j., 25-0. . ."- t. • 0
and µlerdore the kgi.$lat~rc enacted the prov~on of Stajon' · {v) The rC$trictioru impose<! under the amendM
· j S:() to coo.sider the inurest of the workers employed in a sea.ion were rcasOm.bie\ u1.d in th,e ufr~rest of 0
l~ e.illdusi:rial undertaking. Tht intC'RSt oUa90ur has not t 0
1
gen=! public. j · .
!;ii ig,>oml and .i,;,.c.,,.• balano,h.. b«-'n:,,,J;k by p~ing 1 (vi) Thett~no substantive vice ias tbe ~on~ ttfus.al ti)
'fne. Wnner of seeking permi.$$ion for closu?e ; no by provi_di-,g I ' now sJtall be gtVt..o in wfiiing 2fter, iriquiry-ai;id
dc.a!ing with the satd appli~tion byvthe COh,pe1ent author:iiy t pving oppof!.uni~•, t?~h~in.g. ThU$] BP.wet o f
o.ftd providirtg- guiddilles for di~ •; x:~i!e Of l uch power.
.Amended provisions of Section is~O'of TiaJ 1J.Stnal Oisp'uic.s
Government wu:q~ui1,uaie~L '. :f.'
:Act do no, violate the fundamcµcil righ-ig\faraDtced un&r (vis) As far.refusal in~·ofa:c~sons bciqg ~nuirie i,
concerned tht' int~1,.St.;E~ the &eneptl'public- or-
Afflcle 19(t)(g) Of the Connitution. ~ ·' • • r,
other facto I'$ mWitstill ~ refu$al 0£;rnniu ion.,
•In die nuttC'r before the :.h1prfmc,__Cou.rt., µi the instad1 -i;._1 requiring that bWU1tU' ~~ntioued for ~ .time.
C3Sle, the constitutional ,'alidity of Sect~~~ atnended i.n i982 • ~-,., ·~ I ' ,, l•
-~'31' 000$idered, As noted ~hove, th.is'seaio~ wauuuclt down i- (viii) The:Phrase'"in .th.,e ~~~ of gcncnJ•ptiblic" -w.is.
no t vague but wis of~ definite cor:u:qt..
being uncortt:titvt.ion:i.l in ~ / w'°',.:v
um'/;,,, of i•
(1978) ,II •
UJ. 527 {SC). However, in IP ~ ef MN1mk.~ ,\{ii// LJ,./: v (1X) There Was no cxceSsi\•e-"&legatio'n of powe.r' to/-
M<f!IJMm.MiJI, /Jd (1992} n LLJ 2'J.I (SC), the rorutirutional the ~ti,·c as t ~ piidelinCS had t>&ni et. o~t h1 -i.
vilid:ty of Section 25·0 was upheld by tbC:·SuJ)re.me Coun. Section. 25-0, ' . ,..I 1 ' .. ".1:

T
. hlkloie, th.ere h~d been duferenee o f opinion ;amo ng the • ' t ' '
(/) {~) Section 25-0'v.i.s not ~ atoiy ~*ee:o. u.y,..
~ High C-owts oil the vt!Klir:y ofSeaion 2;-0. h was bcld by tbC a £inn of lawycn: and , •.factory or mine. -
:,
:,
S-upre.rne C<>urt io the pres:cm c.ilse that W ~ Sect.ion 25- • ··s•c•c•,>
(XJ) The ~ Mt thafilie icasons given ~ ffe.:,irt,/ l~ Q
0 we., not.Jt!hri°r/ru ~ e Constitution and it"was s2.ved by Amde t • r.oJt fof nriki.ng dow I:½S«tion 2S-Q baa bee.i,
(1)
C. t 9(6) ·o f che Coo.nit."Ui.lOn on me foUowJng ground.$: .considerM i.n ll,ftt11.th}J_ Aj;/Is nm, and .u S\lch it d:
~
;:;: "' (i) Section 2S-O bad been en~cted to ~ve ~ffffl'. to ~as not open to i.b; p~ ril: Bench tO-i;_!C«Ltider t
:::,- t:hc directive pri.nciplC', ~f !,l'te Cgru_titu~ion :and those rcison.s "f<'S. not:a~cept.1ble to cl:ie.Sl.fPtC:mf
() ·1, was in the interest o f gencnl public. Cou,;t. It observed du it~was lh e duty <Jf tbe
Q)
(ti) Under the amended ~K>n thb or<kr gr:intiag or Court to form its own·opinion about a given case
3
(/) rd'usiogpermission forcl~had~ be in writing intte.ad Of rdying' 1;P.on tbe gl0$:s placca o n that . •
o.i,d reason.$ ,a.re to be ~ rd¢. case by some 0thei: accision.J - ,;
(")
Q) . t
:,
:,
(1)
~

2B8
Labour Law -
FURTHER QUESTIONS
Q.J. -111 LI~ $knc:c of any 1erm 1n th~ C()ntr.)CC or se,vicc or i:n the.
s iatute or n:111dU1g order'$ on emplO)'tr hos no rigl,t to 11'y-off
a workman without P?Ylll&him wa.gc.s"'. Elucidate. (C. .(..C ....O})
The pou'l::r to lay-off work:m.in is not inhtteot in th t defini1ion
ufli1y..otl under Sec. 2(kkk} o'r th e r.o. A&I. I 94?. Analy$e wilh
ih e help or c3~ lilw, (C.L.C.-9J/94J
AS & Co. l.td. 8;anplorte is e,t1£ag~d in making ~rs. It b:u a
dbtriburion cenue In Delhi where it employs 60 ._.'Orli::el'$ at the
relecvllnt t ime. Due to s.lnk:c- in &he: manufacrurfr,g unit nl
Bang.afore, the-production of C3.ri WU stopped. As a result of
this. the .Delhi arnc.e has to lo.y-<>ff2G v,'OJ'ka,. Al\er the strike
• W2' ovc.r, those work«s ra ik d M i1\dustrlal di~pu.l4 repding
waees/l~y-off compensation. Oecide presuming:
( i) . !ht. mnn"3ement has power 10 lri:>·•otl; and
(ii) 1he tn3nazt1tnent has no power 10 lay-off.
WUI )'Our&n!lwu be diftCrent ii'the numbcrnr wor\.•crs employed
in Dtlhi office is 40 lMtead of 601 Qjve reasons.
(CL.C.-95 (Jan,y-96]
A,1. Employer's Right to Lay-off Workmen
· n l ('N i; no proYision in the Uldoruial Di.-.putQ Act;, 1~7, w hich give,
the power of Jay-off tQ .1n employer, The power co L1y-off workm.;m
is not. inher_ent in the definition of by-off under Sec. 2(kkk) o( the Act,
Thos► this right tllU$C be located either in the contr.lC't of employment
Or in the standint; ordets. In th:e absenct of right obuin,ing unckr either
of d1~ 1 the emp]oycr has n o right 10 hiy-off his workrr~'fl, aind if he
docs so, he mun p:ay them wages.
ln the under m¢Mioncd case, the chief iJNC was rcgudini; the
so urce o{ the employer-'s rig.ht. tO l<ly -o£f his wo.rkmen.
~
(I)
C
C
Lay-Off Ret~encbment u:.,d Closure 289
luD1MG U.St: WORKMEN, FIRESTOHE TYRES a RU88ER CO. v
"'
<)
(/)
f'.T. 8: R. CO. E
.(AIR 1976 SC 1ns) "'
(.)
[J11erc is no provision in tht 1.0. Act which gives the ~
power o( lay-o(! to an !M1ployer. Therefott, this right .<::::
;::
must be loc.aud either in the Scandiog Orders or in the
'O
contr:a.ct of employment. 1n the abscnc:c of this right lll (I)
the Sunding Order.sfcootrut, the employer murt pay C
C
wages t-o the laid•olf work.man.
Lay-off it merely a fact of temporary unemployment of
~
(/)
the workmen in the work of the indusb'W e:stablishm.i:nt.
The power to by-off a workman is not inherent in the
definition o f lay-off g:iven in Sec. 2(kkk).].
ht chi$ eue, the res.pondena were a tyre-manu&cruring complil)'
a, &mbay having its WS-t'ribution office at Delhi. Thirty
wo.rkmen were employed in Delhi office. As a result of rtrike
in the company there wa.s .short rupply of tyres to the De:hl
office. Oi.it o( J.O workmen, 17 were la.id-o f{ by the
muugemen.t. There were no certified standing ordt:n, nor was
the.re any term of contract of suvice conferring any right of
4 roff. The q\,IC$tion which f.alls for- determination is whether
rhe management has a right to lay-of£ their workmen and
whether the workmen are entitled to claim wagH o r
compe.nsation.'Stt. 25-C of the A« provides for the right o f
laid-off workmen for oompe.nsation (SO% o! the wqes).
However, Sec;, 2$-C (Chapter VA} i$ not applicable \0 cues
whe-re less th.ui. 50 wor~n .-au employed. The r-esponde.ot is
one such establishment because it employed only 30 ~·orkmcn
at if$ Delhi office. . '· .
The court observed.: The ticklish quest.On wbi<:h does not
admit of any easy amwer is as to the sou.rce of the power of
m.1.1u.geruent co by-off a wotknun.. The employer h:as a right
to termin.ate the 6C1"Vices ot a workman. But J.roff ~ the
fai lure:, refu$al o r inability of employ er on account of
contingencies mentioned in Sec. 2(kkk} to give.emplo~nt: to
 0
.
•Labour·L8w - l • ' .I
t.ay• Off Retrcu,cb'in:c•nt and Clo9Ure1:r
0'
• .' . . f· • 1.- l, ,
a workman. le h:is been callecrjl ~ruyditch11get~~n (2') Where ·thpre is nO right with the eroplo)•er-;and • 0,
of his eontn(:t or servi<::e. Stri~IY s ~ , it is not so. Ii-½ Chapter VA .d ~ .dot: apply, therc't'"5 ludic.hl
merely a fact of temporuy u.nemploym.etn of die w9rkmcn d:l$Cl'etioo fo thC-'q,.iGtum of com.pe'n.w.tion. G)
i.n the work o( the indostrW establish.mt'nt. '!he power to-~- (3) W'her-e chert: is rigf:it ~ tbc employ<:r wjdcr thi:) r:,
off :1 worknun is n<>t inhere.Qt in the definition of la.y:o£f
contt'~cc of tptl9~~·o r under "'1n#g ordtn.t..
'give~ ~ Stt. 2(k.kk). Hit fail.I.I": or 4ub,il.ity to give ~mploy~t· and Chipter·. 'VA ,applies, tbe ·qua,nuni of
by;tsetf militates again.st the theory <>f cooferment of POVojU-. compensation is-aocord.i.ng
No seeti'.oJJ; in the Ac;t -confcn dfu, power. Such 2 power, ,, tO Chaptct'VA.
.
ttic-.rclore, mun be fouiid o ut from the.terms of contr:1.c~ qr (◄) Wh=thctecrigm wwi ~cmploycr_and q..pw-
servi~ Or the sta.nding orders 'governfug the dtablishnicn~ " v a doe, not appJy, ili~qu>nrum o/ coa~nnnon,
is depezi&nt U]):C?n :what has been prcmdtd in theV
1n .K.w&a r,,, v Ai«' x.,_. o,. (1967) 2 LLJ 761 (AIQ; CODtract of .sel"!\cc o~ in the standirig~orden. 1£, r;
it·was righdy httd th~t in di~ ab$Cnce, of a.ay term i.n the howe-,.·er, the <Na~tum•iinot mcntiO.ocd in the1c
con~rnct of se.rvice or i.n the sut.~ie or so.nding orders, }.n uiwumen<t, then -s.,<ion will bcclmrmincd
, euiplo~r has no richt to lay-off a wor~an without patfg byjuclicia,y. .' . .
' Jii:i,.~age-5. Thus, if the terms of Cfflployn;ern d¢ 11ot: confer. • r ~

a 'righi'of b.y-off on tbe 1:n,a oAge~nf:, the employer,"!11J ;~ · Declsfon of the case In question ·
bOUlld to p:1.y compen~cion ~u~l 'to ful.1 w~~t. 1{, hOW~C'{· Jt cn.&y be noted that Sec. .250 ;'.{,.,hich pro~id,:,-• for lay-9f£-.
t.bf: tern)$ of ~mployment con!CT a right Ofliy-offthen, ~n a,c eo·m~ation) is appliC2~Je onlY esk.bluhmentS .!o ii.e19ring:SO
be:.
~ of ail inclUSCJ"W dtablishrnem which-is~ by C,p#r matt persons. , I'. -> l fl · ..~ O'
1
V X;~~peru:uion. will be p2)'2ble_in ~~ce with Sec.2{C
provu:aoas. ,
@ If the number of -o,,o.rk:ersja. AB&. Co. Lt4,11is 60, anJ the
rQ.\0t1 !orbroff is,s.trikc in'ih! nppu&cturing unit ai:Ban_Ott.
1 The cou.rt thus Mid that the wbtko:ito weTC. b.id.-off and the 111ffl.igenie.in QU · p6 wer to lay•ol\ then su:Cti ,
o"
with.out llnY 11.Ut"boriry of bw orrthc powtt in 1,he ~mcm corn,~n,otion is, to be given u provided in§cc. 25C. ~
(/) a
u nder the conuaet of se..rvioc.,Su.ch ca.sc is not cover~ by
U, in i'be above firuati~n, the- tiumb:er workmen 4"◄,;>, then suth
0£
~ Chapter VA of tb.1$ Act. Lay-off QOmpensation is payable only
coinP,tns<niot\_is to~ givt:n as providcii in"thc oonU'aii. of c;mploy~~
:, in those cases to which Cb,p1,er VA applies. Tbcrelote, the, or stahdiag orders. , · ,., "' -~ ' L-
:,
(1)
workmen would be e-mitled to theU'. full ~ ges. but in caSC'of . . ~
Gi) If the. n \i)mber of workmen lS 60, and the management has no
C. a rcfCCence under Sec. 10(1) th~ 1',:ibun~ r?Uy ll"'Ud a I~~
poWer. to ~ro£f, dieq ~ co~sarion would be _E!ay.ibU:
~ .rum depending upon. the ju,tifi.ability of the llly-oH. The
1U,tbejudi.e.u~ittit$~cti~detcrmiaes. _. , ,, . .
;:;:
:::,- .
Supreme Court awarded 75~ wages' . in the Present .case. If, in ~ above siruui.oa~ the number o( workmen it ◄O, thC.O su.~
() After this decision. rou.r $.l~tions ~ be visualised:
Q) cOmpe-nsatiOn i.s tc;. be given u; deter,mined by judid~:. ·t
(1) Wbe·re there i$ no tigbt'Witb the empl oyer and
3
(/)
~ptcr-VA applies, die qi.wirum of compdu~
is-dttermiMd by judici.ary. '·
Q:2.(a) DlstinJ;ulsl';~et\\'tt'n l,ty.o&·.Lock-out
,· ,.,~-
a.J ~IOIUR
'f'l .:t•
(")
Q)
:,
1 ' (b) D istinguish bdwecn ltflrcnc.bmcnt, Lock.out and tay'-off.
:, · · ro:u..201212~11i rc.t.cL§s, LC.JJ-91(
(1)
~
-, o·j
JI •

292 La b ou r
.
Law •
A,2.(a) L.iy•off v Lo.:k•oul v Clqsuic :
The l.i;·•off i.s S<tmi:wh;it .sim.ifar 10 lock•out, a.s both arc of temporary
nlmtrc and both arise out of 3.nd exis:t during an emergency t.ho\l&,h the
11.tu1re of .e-mergenciei differ and in both the .rd-atio.nship ofemployment
is only $US-pended. Bur t he two concepu ;m; eJnlre.ly different in iheir
leg;il cffect1, o n I.he r ights of workmen. • .
, The Supreme Court considered tbes:e rwo oo:;cept, in the c.i.tc of
K<1irh:!111 n
Est:,1/l V J'I..Pfa/JlilHif/wm (1960) LLJ 275, .and ob.served t hat
coocc.pt of l-:iy-off ill,: emirel)' dii!erent from lock-out and so w hen
closure· o f bu$iness amounts to JoCk,out under Sec. 20) it would be
impO$Sible to br-ing it wjthin the ·scope of lay-off under Sec. 2(kkk}.
Cosure means the perm.~nc dosi.ng down of .a pla.ce of employment
or pan thcrcoL
The main points o f difference btrwecn l~roff, Jock-,out, and
closure are as under:-
(1) I-'5·~/fgeocrally oc:cv.n in ;;:a coocinuing business w ht.rea.,;
!.t>tk.-out tS a closure (u:mpor.iry) o( busio.('$,S., C/~11rt is
pcimanem.
(2:) In (;·,uc.
o( L I)'~ t he employer is unllble tO t;ivt
~pl◊ymc'nl to w ork:,ers owing to rc-.uons like short:ige of
e<xtl, power or r:aw out;;.ri.ils, or brt-.tkdown of machinery,
etc. ~ ' here.as in case of Lo,:h,""'t, the employer ddibentcl)'
doses the bu.sines:~ and Jocks out the w hole bod:y of
workmen for reasons ,vhich h11ve no re.le...,mce 10 the
Q\1$Ci -a pplicable in the case: of lay -off. C~ i.s ge.r1enlly
for trade r~aSonJ.
{3) LmA.-OMI is resort«! to by the employc.r as a we3pon ol
co llective barg:tining, (to ooer« o r p_rc$s\1rise t he labour)
and 3,b~ ◊~i:t:a.:ily invol~ milicc or ill-will, while ~.ff/
CIM,m rs 1nvarubly occu:.ioned by economic ..1.nd trade
n:~os.
(4) ~ .,, i.i <hie to .m indu.stml dispute and contln\les dwing
the period of dispute. Lt!)'<fJ.fl ii n ot concerned with a
dispute wlth the wo rkmen. 001111• n~ not· hr. d1;.~ ~ an
in-dustriai dispute.
,.
~
(I)
Lay-Off• RetreJ)t hment and CJoJure. 293
C
C
(5) The Att unpo= i:c'!ai,, prolu'birions ,nd p-,;bes peoaki« "'
<)
(/)
o n I.JJtA:-1w/Ckn11rt, whereas it does not iropO$C any E
re-$t ric:tion or pre~g-ibc any pe.naltie& for ~fl.
(6) In the case of J-'!),eff/Clo-'"" the employer may be lU.ble to
"'
(.)
~
piy <:ompe.ns:uion as provided by Chapter VA/VB of the .<::::
A(;I. but liability can.not be invoked (or compensa.Uon i.n c::ak ;::
¢{ L11d:~• as dl,C li.1bilitj, of employer in such cues depends 'O
upon whether it was juHi!ied and legal or not. (I)
(7'.) In both LoM:-."and Lny4, the rel:n.ionship of employer
C
C
and employee is only suspended. 1n C/oJ1tn1 it comes t0 an ~
(/)
en.d pemu.nendy.
(b) Retrenchment v Lock-out,. La)'-off
(1) LJXJ;~1 is temporary; LJ9°-offalso is te.mpora.ry; fvt,.,,dm,t."t
is ptrmanent.
(2) ln both ~ t and IJ,g,.off+ the re1a!io,uhip of employer
and employee is: oni"y rospen.ded, it dou not come !O an
end; in RlmAdmre1tt su.ch a rclation1hip i.s s~er~ at the
ins.ta.nee o{ t he employer.
(3) ~ / i$ a weapon of c;ocrcion in the hands of employer;
LIJ'°Offi$ invar-i.ably occaiioned by economic and tr:,,de
rea.s<>ns; in Rtt"1Jrh111,n1 the intention l$ to dispense with
1w-plus labour with a morive of cecmomy in the busmen.
(◄) LJ,A:-0111 is due to and duri.og an .industrial- dilp\Jtt-i Ul,71)//
u well as Rl/t't1ulm,,11t ue not concerned with a dispute.
(5) In ca$C of U,A:-OMt, c.crtaio. prohibitions and pc.nalties ue
prescribed. by the .A.et; in L'!)-.ofas well as &frtft{htmltt, no
prohibitions or ~ nahies are pt'C$tti~, but ihe employer
L,5 li:i.blt' to J>a}'. compensation to the workmen.
Q.3. ·'The wb-doases (a). {b). (bb) and (e) oftM Sec. 2(00), whelher
inser1cd by way of abundant c.autJon or on account or exotoive
anxiety for cl~rity, merely exch1dc et-rtaln eattgorics of
tcnnination of service from the ambit of the definition of
rettendlment. They do not necessarily sho.w what b 10 be
inc.lud~d within lhe deflnition.'' Comment. [C.L.C.-92}
 ,•,
Lay~O {f ··tt..e t reochmefth
' . a;
a nd Clo.s\1.=.,.,,, -
,r
295
"~
'r,p,:
~ ' ·"~ion 'rtt'fflnebmau' mew tmnloollOO of the s~1ecs "re-t~tlt" means the Et-rminiitiOn. by the employer. of ibe·-sot.rvi<.'e
Qr tbe ~workmM for any r~.ison wiwsQc,•er, other th;uthbo,c. t.>f"2 wOl"km.ui for any ~a:t wha~rf~t than .J"-a-pun.isbment o·
exprcnty exc.Juded by t.lie. defuihion u!lder Soc. 2(ooior the infliacil by way.Of disciplinary action. 6ut -does nDt in.clucle- -
~ct. Th.e expreuw>n 'retrfflcluiitn1' 'dotS M t mean onh· the
tmnfus.tlon by rhe employt( Or 1~c klrvkes Of s-urptus fM>o~r
.
(#) vol~tary rctircmint of the ?'~!~an, or
·«'I!·
·, '*. .;) ' \
f -~' ... ~
~-(•
i.
. ,.: ot
{b) ret:i.re:mcnt o£ workman. on,mc,-t~Dg. the age~ .$.'UPeJ;"aRfflUtlOD
• • . .. 4

tor ony reason wtiatsoe~ :

· if the coniraet of e:rn.plo ~n ~·~ontaiu.s a. nip:~adon in.fh at
1
b,
- As per Saik.la J. in PunjO:b Land Dev. '& Rttlumarit,n Carpn. bebal!Or
• '
' 1- ·•" -
!I '
..>;,:
lrrl v /'residlttg Of]Jc~r, Lahrn1r "Cc'4N ( 1?9Q) ; · Sc'C6S1.i: (bb) ,ermination _of the ~~-C\1oo ~f.a wQrknu:a.i ll! .l rcruit of '
' the. non-rentwal of the con~et of emplo~unent qo i'C/
' .gc
"!While n2.turaJJy·ana ordi~arily 'retrco~nt' means di»char expiry or of sti.c:h ~Dt~cf being terminated unde, ~ ,
oOurplw '1bour. tlte defUfcd meanfm: •h8S !I mucti wider ilinSir>
(Pu11jab Ltmd Dev. & R.;clamarfOtf Corpn. Ltd. v Prq1Jilf8 ...,.;..,ub.cioa
,.. in that behalf coji.WOed
• ~µ."t .,._ !•or 1l
. thettin,.
{c) tctminatio.n of the sc.rvic~Of a wOrkmatt oft ihc'iro.und of
~Officu), Critically aoalys.e tRe'aboW st11kmem withkc
~~ of
Q)~tiAuedilhh~ ... ~ u.-'•>. .r·
i -
rcleyarn t:ase Jaw. • [C.LC.- .9.llP.$(96] '

''Und~ Sec. 2(00}, the words •te~foafion by the

tbe sctvit.cs of a workman for attf r«son
~ tsoev~1·
~ploaJ1 <>.f
tho
It is actt.lCd law that ic it t:be m.:uiagcriah :liscrction Of:1.n.,_employu to
1
~~ ~ be$t. Id~~~ co~etellf
. organise bis busi.nen in tbe. manner;.,~
for a workmu to dullengc the propr~ty ·o f the same:,So long"» r.l:ii"
l<,;;y -..:orcb. Ou 1.b ~ 4 u.c,1~ 11, Whtthet' !he cxpttnioo lany ~~n ~ r s ~ in a· Mffa-,/df-~ W l u k n:vs~ll~~\,;;; b\Aln~ 0 ,
~~t$oever' ls su:ic::cpti ~le tc;_,, il"1 Jirtiitation or 11d:miJ no· a ~Jus cmployeei a.re ~ ked·co quit~no ~mployer can.·~ bur~n~~
excc~tion, there Is oohsidcrable "4;,,,crg.ence ofj udicial Qp'inion.':'
o.Luoida1'. (CL.C-,9J(~)l
with eu.)'i.n-g on with an econofIUc •~ d weight and rci:rcnc,b.1n¢1,1l' fiiai
~• be ~cepted.~ inc-vita.bl~.• ' 1\"1;,...,
·· : 1· "/;-, .
o,•
qitlCaUy exsminc th~ I.aw rcl.itins ro retr.cnchmcnr under! tbc
At the- s~mc, titnc,:retrcnr;hm~t ol•s,urplus su.£/ ~~ undu1
1.0. A1.'t. Do yOu 1hink Cber thcr,c. ba, bceD chan,sc int t.lie ~ not,onlyto ~~n.ched:!'~~~ but to all b~~s; .
Tht:rcfurc, in orde-t to ayoid hardship. to ,i hc worker a:.'1d ht1 family. the.
(/) j udiclaJ app~ch towards rCU11:'Cs' fruit ca1 ti~ gran;ed in' the
provi.$iot1$ have bttn' ~de in th~,w~~ial Dispu..te-.s, Act;:, 1~?• a ~.
~
:, }
e,·ent of ilJi:JA) rctrcnc1>men1 and ls $0, wh)'? rD.U.-201~J
A.J, Co.ocept o f Retrenchment '
beneficial pm
of legislation. Th\J,$, prqvjions like Se<. 2SP-(coodiuaru
:, ~ ' !or ==duncot includingmre.nchm.nt < ~ ) ; ~.
(1) ~f~ch~Cn_t oo-?notes in it~ on:liJl!l')' ~Pbt't.ign that th e busuicss 2SFF and. Sec. 25~ (re,tttncluri&it .~~~tLOrt in case o f trao,{cr/ •,
C. !tte~ ,s bemg ~ nrmued. but th:tc-a portion of the staff oflabour t'otQ: clos-JJ'C of undert:Jlung) and Sec. '2SH'(~employmcn t ,of retrench~
~ ~ ~uch:i.~~ as- $urpJusagc. It m~aa.s ~ e-'d is~,-ge of surplus Jal>Qur i·Or~:Ln)? etc. w.C.r~ i.b.u~

---
· l )J." .~: •
;:;: ·· or .st3!f 6y the employer fo r ~n y reuon whatsoever.. The oT~ of Th'e word •retttnchment' as de~ iii Sec. 2(oo)"is ~n.t◊ tvlc,
:::,-
t t~ '"~ '. ~W.J? ~ulc be ~ red _with ~ fr!O'tivt: of ·«-Oz:,.omy, (Vit.: .. ' ' . ...
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n _~ u o n m iodusuy, iastallat10r1 oft ne,&' bbow savil'le- machiJi......,.
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lo. the Industrial D ispu~ Aet, 1947, •rttre~chtt-.en, is dd'~in
(a) 'Ordh,ary,
· ' •
t11Jd ~t,x(!fal "!!ll11i11.g - It I lS' ..2 1rt1rrt1!P't,..
lit1/11,w/
coostnx:tiOO, ._..........,. whidl ~ ,.w()td
.•--''••to . ihe· ,~ . . -""""'- '.
.:.F;;u
e
(") tcrminati.on 0£ che $C.rviees oJ,,, wp.rknuo '"oi,;ly by-way of
Q) Scc.,2(00) ia. the following ,erms:- · . ;
:, ,.
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~

'

296 Labou r 1.a w J . Lay ~Off Retrenchment and C lo .sure
su1•pius 1:abour• for any l'e:l$0n wbatsOe"{e-t. T his view Uvou.r11
t h.e employer. ·· , be properly described as r~enchmc.n~ Tii.c: Cou.n o~crved. ~ha.t thi.6.
(b) U1m1/ IIH(rr.inJ - 1L is ;i b..u 'e d on the ilt.'1ual
,v1dtr constru<:tjo~
wo rds tlSC'd in the Act it$d f. Accori:iing t~ ir, the '\\.•ord
'ret renchment~ .cr.c-.,ms t~min:uion of Ute s~'K't$ of ,i ~·orknun
for any reason wh:itsoe'V('r, other l'h:m those $pCCifu:Jly excluded
by. Sec. 2(00) . This view f.:i.,·ours the employee fm view of
rctrendtm.cm co mpemat.ion, etc. provided in the Aet) ...For
:any re:ason wbat:SOe-1.•er.. ;are tbe kcy-.»o~$.,
l11 l-t11ri,'>lr,f111tl$hit1S/»1rhtr" A .O. D~ r(~IR. 1957 SC 12 1) die ooun
o b~rvcd: What after aU is the me,1ning of the exprn.sion 'for rmy
1'~':.lS◊n 't',~b,usoev~r•? \X1hcn a pon iou of the su.ff o r labour force is
d 1~ch_:i,g~d ,u surpl~s:i.g<: ~ 3 ru.n:iin'g or continuing business, the
tcrnun:u1on of serv1ce whlch follows m.1y be due to II v.ariety o f
~c,l'l$Q:1s e.g. for economy, r-.itioa alisa.tion in imluruy, etc. The !egirlature
musing the expression ' for 2ny reason ,vh-:itsoe,·cr' uys in eff~t.: "'It
d 0t$.n ot ~ U er' why you are di$ch arging the surplus; i! the otbe~
reqUlttmC lltS o f the ~fioiti<ln arc fuJfille<l. then it li retrenchment,"
In ~1e ~bove case, rhe Constitution Bench. speaking th.rough SJ<.
D.1$, J. S~ld tll~t rcl'r~ch;mcnt «,~notes in its ordina.ry acceptation tb~
t he bu~1.l'.less 1udf 1s being conunued but that a. portion of st,{( or
l;1bo_w force is discharged afl a surplus.lge ::i.t1d the t,erminatio n 0 {
s.e.rv1ce of .ill 1bc work.men :is :a result of d~rhn of busiu$ cannot be
prope.rly OOaibcd as retrenchment. LL
ln this case, tbe Supreme Co1.1rT <:it«! the c::ise o f Pip.,rndJ SPJ<U
Mill, I..d. cak: (AIR 1957 SC 95), in which Lb.is coun ~ve the onlinary,
accepted nou o.n of retrenchment in an industry. The Court t.1id: "But
~trc~h.ment.couootes in iu ordinary acccpration chat the buun.t$$ itsdl
:s b~mg co nn11ued but that ::i pon ion of the suff o.r tbc labour force
ts d~ ch:arg~ -as su.rplus.;agc and the termination of ser"ices o( all t he
~
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workmen ai a re1uh: o f the- dosun: o f the bUsinC$$ catutot therefore "'
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ordinary 2.CCCptation of reueochmcnT. fulfils the four essential reqwrement)
E
of tbe definition of retrenchment. When a portion o{ the suff or "'
(.)
fabour for« is discharged as surplusagc in a c:,o11tinuing business, th~e ~
.<::::
are: (~ cun:wlation of the- set'Yicc of a wont:man; {~ by the e-mployer; ;::
(a.ii) for any r.e~on whauoc:ver and (iv) otherwise than u a J)l>JWhmeni ,::,
infiicted by way of disciplinary action." (I)
C
The coun further s~id: ..It, Cannot be doubted that the entire C
.scl1cmc o! the Act asaumc5 T.bat the-re- U i.n einl-tence an industry. and
t.hen proceeds on to Provide for various steps being ti.ken, whe~ a
~
(/)
dis-putc arisef in tbat µldust.ry. Thus, the pro~~n_s of the A':" r~l.tt~g
to lock-out, suike-1 lay-off. rtt:teflchmcnt., conciliaaon and adJud.ic:ahon
procccdingt.,. tbe period dur ing which the award& ar e 10 be in force,
ha,·e meaning only if they refer to iUl industry whiclt is ntnlN11~ and not
one which is dosed."'
"Retttncluneot me~ disclu.rge. of surplus workmen in :in exm.ing
or ·coatinu.iag busi.ness; it had 2.equircd no speci21 meaning ¥0 u to
include discharge of w orkme-Jl o n bom 6dt closure 0£ business, though
a number of LaQour Appc-11:itc TribuJlals awarded compcnsatioa to
workmen on closure of bwi.n~ as ·a n equitable re-lief for a variety o(
reasons."'
"Sec. 25-F wa.s enacted in 1953 which st:u(W'd.i.sed the payme-nt
of compensation to workmen retttnchc<l in the n orm~ or orditury
$ense in an e:xhcing or co.ntinuing indusuy. If the intention o f the
iegislarurc was to give statutory effect to di0$C ~!,cm which a~.u-dcd
compen.$1-tion on Rat and bona fide dONre of bUSI.OC$$, the 1egis~ture
would h~ve iaid so in.stead of being content by merel y addmg a.
ckfmit.ion c:b.use The legislature deuly envisaged a distinction ben.•ten
•rciJ'cncbma:it u.d closure' and retttnchrnent did ""1 include closure of
busines.:s as Item 10 o f the Fourth Schedule of Sec. 29, Indus;Wl
DisputeS (Amendinent ~d MiKd.lueow- Prov1$lotU) Act, 19~ is:
"Ratiorialis:u.ion, nanchrdis:ation or improvm,cnt ~ plant or technique
which is' like:ly to lead to reuenchmcat of workmen."
Thus, a n4t"rf)JII interpreiation Wu adopted by the Supreme Court-
Wilhin three d.ys of the delivery of this ju<igem,nr, S«, 2SPF and Sec.
 Lay•Off Retrench.~ent and Clo•u~ ). ~
.,, · ·111 fl! .•
. lo P1111fab J..a.r.d One C' R.«!a,,,;li,M. O,p11. LtJ. ·'i '{)risidhi,t0Jlit4t;
r,,...,.o,,,,,(tm.) 3SCC682, thc'l'!f,pon was wh,theor==c~,
Wider thc.ACl m.e:uu 'tcrmia.ation ¢l i ierviet:!I of workmen tLJ'nl'flus
bibow-(ot :u.ty tc:lSOJl ~ha.revc- 11rit .~r.e.rmin:-1tiO!i'.~y; ~ tmpl(!~~
of ~oes of workmen for a.ny tcUon whauocve.r 9tHerwue thll_? .is
punisl>mcn, mllietcd by way of <ji,cipli.nuy ,c:tiod aru:l'thosc -,~I>',
excluded by the dd'in.icioo. Aher•r~';_ic:w-.ing.iu e:1.rli.~.dmslon;~th~,.
'
Ot
Coun held that the fatter view wa,s cortte.t ooe. .The: court obse..r;v~
.'
that had the Parlwneot ..e.nvi.sagcd Only,.the questio~ o,( tc"nni.nabO~OJ
SU!plw labour alont> Ul mind"•~:~ be no question of ~ Jdm'g ·
c;isb( Wling in ,,.li<Jauses (a)j'(bj. Md (c) of_the de!ptil;ion, In thi
opinion of the coun the Ul$ct\:.i.on of cxduuon dauR.1 (bb) b_iti,.e 0
~~,l.aisig Act of 198.( _is al$o ll1/ in'e1'itb this vie,J~1 , _ ,

T~ Supreme Coun, thui, ¥ ld;_ ,; .l

@ Rcercncb.mcnc means die ten:nla.acion by the 'empl&yer otth e-
' .
services of -a workm.atl 'fo r ·any ~wn wh~tsoc.vCr' cxefpt
those ,xpmsly e,cclucl,:d by,-th, definition. -.
' ..
,,
. " )
(a) Tb.is wide·litcral mea:nin'g" is more prefe~bl~ to the n~tur.-¥,
~ .
•con=muf .tn4Mm>w ~ningviz.. discharge of.surplus~·
r.iii)
\'
E~ea. i! the wide litC'ral iute'Jretacion
· !'~ >'-'. I
may.; r~iil~ ¥fecring
d,, emp!oyet'Sright, und,,' 5.,,na;ng Order or Ulliluthe conrr,ct
I • t •

.of employmt~t, in resP,ect<0£ tchninatiob!of,-seniCe, that Oi

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~·oµld be justified by'•rcaso0.f0£ SffUl/po!ity-lnvoiV'l:d in Sec.
2(oo} read ,.,;,h Sec. 25F /ml>osi)>g on them -¥1uonal ,&cial
-~1;_.;A
. -
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Crttlcat cOfflmen.ts on Retren chment provis,ons 1ri,. Indian Law

AfPJicatlon.s for rcue'n~u :i.nd layoffs with go~l:'mment .seldorn
1 Y.
.
.
O f'
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suecttd ana,.0 £couf$t~ knowing that in advance, itl-ins-do 11W make, 0,
~
;:;: roo·mao.y ~v.c~ apJ)licaci6ns. Despite laws, contin\l01;1t'dtttmpts"we~
:::,- made by:the.~mployers to c:ircwn,.1nt the l2w and esca~ penalt:itSJ..A.
() few case ~dies. bring to light the n,~~es used ~y ~n~gemt~t,; '
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(•) · ·U,,,/i..o,Jr.,r-~ a_,,, T➔ -
The MUlll,\>Y Elict~~nict
Compaaiy in'Jlo,n!»y f ~ t w Govcmmco! ,.OUJ<1 no,
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Labou r L uw - I L;:,y-OH 13,etr8nchme nt aud Closure 301 C

gr.int permission to close dow-n o ne of •itS: plants, which
p roduced 1elevi11ion a nd r,:,,dio cqu.ip1n.ei1t; decided to we
l('}Ckovl$ wd promoted irtter•u.l'li('}n rl".:ilrles as the pres:sure
t..ctie to get rid of worken. C>\lring ·the period of IOCkoc.ii, 1he
mapagcment made 2..rn.ngemc:nts to carry o n production o f
Mutphy products produced a,mpletel}· ~y small sub-contractors
by St:amping it$ owra label The result W3.'fl.h:at out of the 2,500
workt.'.tS only 497 remained utd l ~ stntegy helped the
management to get the plant to be declared a sick unit by the
Bo:ini o r Industrial and f inancial Reconstruction {Birk) in
1988. . 6 monlb?
'
(b) S,ilN»lltnKtill§ Sub-contr.acting out piod\lttion by bit; firms to
sm.1ill firms has become .'.I major technique by which the large
foms try to rccluoe their Co$.t$ .and pressure the u.nionlie<l
workerll LO lc.:i\'e ex .i00tpt volunt"ary tttlttm¢m .u:hemcs. The
rctrcnchme-m bw is siJe,u on .sul:i<ontnecing :1.00 management
can effcct.ivdy force a lock~t or f.ic.c a mike without 2 major
loss to them.
(c) Tmn.rftref0'»'xtrsbip: While Sec. 25(0) makes it obligat<>ry to
scck pe,rmiuion for: <:l0$UJ'c, it does not require any permission
in c-ases pf lffM!{tr of ownership from one comp2ny t0 a.not.her.
Jt is not incumbent 0.11 the t\C'W o wnc:'rs ro rtt.1.Ul :ill the worketV
employee$ of the old company. T his stnttgy w~ rucce.ssfully
used by Alembic G l~ Works in &a.galore :i.nd Baroda to
retre:r,ch workers,
(d) Told/ ~ r . The wor'kers of M.:&,tbl En&i,o«-ring ruwe Y.1ged
a Jong struggle ag.iinn the management. Recc-ncly Mafatla)
E~.ring ~ c<mvmed into an employee-owned corpor.,uioo
a.f,er .i long legal struggle.. The t.irlier nuruagcment W.\Oted
10taJ firm closure against the wi.s:bes qf the: workers.
These casts aJ·e j\lSt. a representation o f a b,rgC number o f w3y,s firm
matl.lgcm.em h:ive addrcs.scd the rig/d retrenclunem Jaws. What i$
intt-rt$ting is that the relevant point in all these enmpl~ i$ how little
contracts ph,y :J role in the Indian labour market. 11tc existence of
c.xogcno\l.S ~ cs governing cmployCl"-Cmploytt ttl~ion ha$ rc:Iegatcd
iodepc:tidcnt oontracl$ to a. relatively u.nimpoir".:ant position, robbing the "'
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bbour m,,rket of flexibility, 12
E
Q.-l(a) •Mr, A wu appooltcd by the rnat1agement of XV & Co. 1t.galnst "'
(.)
a l~v·c vacanf-)' for 6 mon.ths. However, he eonllnued in service ~
,<::::
aft.er the expiry of rhe stipulated period for 2 months mort ;::
when the tna.nag.emcnt terminated his scrvicu by aivlna h im a
'O
7 da)'$' notice. ~an he claim retTenelunmt compenudon \.W\der (I)
the $.0. Act, l 9477 wm your answer be different if his services C
C
• had boen wrminat«l ~ the expiry or the s.tfpulased period or
(C.LC.-PS (/=.)) ~
(/)
(b) B is cm;,loyed by XY & Co. ror 3 yea,$. CP he c laim
1'Cl:renchlnent compcnsadon~ ln the following cues:
(i) if his services arc tenninated on the expiry ot atores.aid period;
CU) i( his services arc terminated after 2 years on account or
m lscooduc.t rein.ting to du.ty:
(iii) If bi.s 5CJ'Vic;cs arc tcnnlnatcd after 6 monthsl•ftcr 1 mon1h5 iu
his work is ~Ot found 5a1.i$(act0t)'? Give reasons.
[C.LC.-9J (O•e)J
A,4,(a) Mr. A rendc.rcd 240 days of service {S months), a.nd can
be considered to be one year in continl.Jous urvice. 1nU$,
Sec. 2F -applies to b.is cue. As a 7 days• not.ice innead of
one month•$ notice [as required under Sec. 25F (a)] is gi.,-en
to A, chc retrenchment is i1rw5J, The T ribuna'l can either
orde-.r reinst:atement or p:1.ymcnt. of compensation.
· Il, bowe"o~. the se.rvices of M.r. A Jud been \'erm.inated after the e,tpiry
of ,t.ipul:ated ,reriod 0£ 6 m.ondu (180 days}, then Sec. 2SF would n0t
~P~Y to his cue. Further, due ,o di.use {bb) of Sec. 2(00) be would
n?t have been entitled to any compen.$aUon.
12:. ti~:ff.i&tffkll,m:.es.wofldbln~ OfgllNTCECSHRSMAJRuoUCCMlincb.pdf
 .- '
-- -30'2- • 1 - ~Obo ur I.aw• l : - r
~_'.i(b}(i) Bis employed for- 3··yean. If his sei-viccs ~ •te'nninatcd o~}.fit
,...,. , CJS:p.iry of the a!or~d period he tw11J«-daim compensation
.· ~ '·c1ue 10 clause (bb) of Sec. 2(0~). , _ fr
.iJI • -(~ 1£ B•s services are urm.i.natcd' culier on accowit of
-.j.: 7 1.r · nus('()ndua relating lo duty; he m,m,tclaim oornpcnsiuon
'a, b«.w, 'punishm,nt in!Ucted by w,,y of<fucip!i,wy ....bn•
is t)(cepted by Sec. 2(00): g_
(iii) rJ.f B'.s .s:crvices ue tc.rm.i.m.ted ,mlr 6 mQitt.hs (180-&yifa.s.
'his work is not found satisfaefol-yt~be ttil1 MAJJo/clab
, comptrUation because to brii\~ ~ 2;F ituo pPC:racion :he',.
~ . _ should ha,ve. rendered at' leas:t'!2f0 'days o! :iervice.
,
lf B's .se.rvict!s are termin1t.td after 8 mor:ttru (240 daJ$) 'oa u:count of '
-:f Wl~!~$(,1ciory work by h.iro,, 1hco also he td.,,ff(// claim t<lmpenutibn 0
· lrt
bccau.se ~Ch terni.ilnation. is n~t retren~~~n~~ u_n~r Ste. ~(??)• . . • t
T«m1.0:u:ion on acCQWlt of tnefficitnty e.ht:'aill di$ciplinai,y proccedidg:s , ~ . 0
- as~ Condition precedent to in.Oictlori oftc-rmiiiar:iOn 'ilS a meawrc f.£ INDUSTRIAL EMPLOYMEN.T
pun!sh.a:oc:ut. 'Pwikihrncm infllcttd by W")' o f ~ aa.ion • is ~
' u~r S~ ?-2(00). • r (STANDING O\U)~ ) ACT, 1?46
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AMIT~8604000350 "'
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, Industrial Emplyoment .<::::
(Standing Orders) Act, 1946 ;::
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Amq/f_g th, u,p;mt11l ~11/rddt llxtt "" np/4Jtd i» J,,di4, tbt rgt11111io11
bwok'ts 1i.gnifit:1111J §)tlrnt!lltllf imYNlltnmrt •·him i$ nm In dt.vtbJf/'d
"1tt1l1'Ut. Tbt lrulstsJmll E."'P")•111,,,, (S1411IN'1« Onkrs)Ad 1945 Nflm'tl
1ha1 Mlp/l>J'lrT iuVd ttmi i1td1ui:~,g JPOf'ltiJU hoNn, /.c,~, p,ods«liJ.i(Y
uall, dir,wi1111J proad.Mm "' #Ork.er da11!JiMtion1, tappra~d ~ "
;
§Jlll17111U1'I bol/)•,

Introduction
•The gen.eni pri.n<iplcs of the Contract Act applieable to an agreement
between two persons ha-ving capllciry to contnet, ;.re also applictble to
a contra-ct of industrial employment, b\ll the rcb.tiocship $0 created is
partly e.nrrodital. in the sense that 1lgreement of service may give ris.e
to mut\UU obligatious (e.g. obliptioa o f the employer to pay w-ages
and dut of the workman. to re.oder $ervic.es), and, partly f/()11,,i)tf/Ndlral.
u the St=ites have uready, by lqislation. prescribed p0$ltive obl.igitioni
for the employer towa.rds h~ workmen, as, for ex:i.mple, t<Ctffl$,
conditions .wd obltg.uiom ptti:cribed by the P1yment of Wages Act,

-·
lndus-~ri.al Employment (Standing Order$} Act, Mirum\lm Wap A<-t,

"'In order lO achieve indl»trial harmony and. pc~. t h e ~

Employment (Standing OrdeN) Aa, 1,9-46 was t:rw:t«l The Act. umcd
a t ~ a tn.mirinn frotn mt:reC()rl.U'aCt" between i,mequals (Employtt
:t.nd Employee) to the c::onfermcru o! '"Status'" on worlunt:n th.rough
13051
 - r
Labour .t:aw - I
Ih.. ,.
' . Jndustrial Employment cSt~~_ding Orders) ~ ct 0
~.c'·conditioru starutorily imposed upon th~ employers by r«tuiring~evccy . i ~
... i n ~ e$tablislunern to fuune "'Stmding Orders"' LI'! respcc~ of ~~rs or we~ employed on any cL.y of the;p,_rieeding 12 mon~\\" The- ~~
• tnumeratcd'i.n the Schedule ap~-nde4 to the Aet, The Standi.n-g O.iden doet not:a.pply to: ) ·· 0
· wC r~uirocl to be ccni:fied. by 2 Cc➔ing Officer. Upon ccrtiflC~ lon, Any i.itcfurtry to wh.iclt The BOmbly lndu.sirial Refatiortt Act,
the
the Q~et:t bcocirde binding upon both Parti.~ Thus, the uod~ 1946apply. I .. · ., . , ~;
(i)\
object w:u to i.ot.roduce 1111f,ft,rm.1'!, ;,, wi/ditiq,,reftmp/ttJ'ltltJtt ef w~nuJ,tt Any industry to wh..ich T h e "'Millihya Pr.adefJi f~du.stn:tl
.-• d4cbarging lmfrklrfu.nctions in the $ a ~ U'ldusttial esrab.fu.b.mertt 1.1ndcr EmpJoymeo.t (Standing Orders) Act, 19611,pplri! ••. 1
~the -sutt.c ·mauagemcnc and to make those terms -and conditions '9(.iddy
The Centre 11.nd State GoveJ'Otnents :ire empowered cO'e.xt.e.ntf diC.:
krioin to 2.ll the 't\/orkmen before they «>u.ld be :ukcd co elprns~th,eir
willingness to accept the c.mployrncnt"" [ lT~II' wGa LtJ. v Sh:mtm,B'l»11 provisioJ;U ol this Act (by noti6C:1ti?p ~ the Offici:al G~zcue) t~ ::iµt, I.
AIR 1998 sc 1681). • . embt'is.hmeo.1 employing less than 100 Workmen. No,.· gencrull:t ~!
cna.b lishmenu c-mploylllg ntore t.h:in 5-~0r kffien ue coVC'ret:fby ihiS
v ·,v, ~ijt- pn:ctfoe of not def~g..,coni:!itio.ns _o f $of-rvfoe ,bir
the Aet. BUt the 2pprop.ria~e G'o~cr-nmcnt!mU¥t give a noti:c{ o'f.~ot l~s/
emp~O):en) advent of tndc,union s ;uad t OUea.ivC bargaining ~ ,:a.ted th-an two mon~ of iu uttent10n to do.w. Mo'f~·~r, thc.,.p,ro"'1Sl()n$ o i
prcitilcms for-nu.i.nt:aini.ng industrial pe1.CC, kwu fdt nett$'$.&ry: to ~ lnd\"ttial Employme.o, (Standing O~ts).f,d; !946 shhll apply ,o ~ 0 -
:'.I.ti; Act to prbvide for framing o( •standing ~ s • in :ill in.dustrid
industrial est::llbfoJunent.s wider the cdntz-?l•o( the Cent~ 09vemmcnc:,
~ ..,ployu,g ooe hundrcd o r q,on:work.,._ Standlng old.rs 0
"'" f'C.lel'S i'o the rule$ and regulations relating td d>ndirioli·s of ~ts;i\e.nt, The Act.,.;,,. wo lo/<'< from /\pril~ 1~.r,
b~b&li~&!d
from time co time;. · ·• ". 1 ·
q.i,sc.b:ittc". ~ ~ a r y ~rrion,. holj.d:iyc. ~ • et¢. ' ~. i • 1 0
. Th• lndustri,.i Employmenr (S~ding On!en) A«, 1946, ~ - Object of the A<t
. -~ empi?r.ffl in Inmnr:ial.establish.tnenu to'define procisely ~e Cond:i4opi I •
The Prta,,;h/, oldie Act ~u;s:: ..A». Act to rcqwrc cmployen: in indilstrcl.
'.<>l cinployrne111 unciu diem {StancUrtg Ord.,./Servicc Rule,) and u'i.ke·
~ thcni Juiown to di~ workmen. ~~ oJl.Ce ce-tifi~ arc ~ g, enabli.shments form'ally to define cond.it.loas. of employ~enc under
lhcni.., . '•
.
o,;i;"lth"e' partle$' for a mmimum petiod:of'sl): ID.onths,;
. . . .
~!· tr, I ,_,

Tht .A« mns~o Pn:>tcct the workmiti &om WWwful ~J_

~
~ The. Seitnding Orders att to be th'Ji}id by Certi!fina: Officer
.appointea under th.is Act. Tbe dctaUed ~~ lor'Cenifu::tqoB 0{
S¥diag ord~r UC given. The co.oditioll;S for et~f}:ins of Sta&lJng
Or~crs :arc &i-ven in Sec. 4 of Act_. "'The l,.-i.$"t of Matters.. ior l>e-
Provi&d in Standing Ordus under.th.is Aa is giVen in Sch.~ 1of
rhb: Aa. ln ~ it ii DlUR for providing pr0vi.si.Ons iegtrding R.uJC$ Ul,11
• nu.tteu .,.;ven in this Schedule. · · I!"' •
o itcio~
• 1. Ob;c:ci of the Act is co ·l'«}uin the ·employers in l~dwtriij
establishmenu to defme1the conditions of eoiploYJP-efl~.
Wider.them and tm.ke the- C:ond;tions knowo co workmcJ)
empJoycd by'them IN.fan the}' a~t the c-mplotmmt. '.:.
2. To maintai.o · uni.Cormicy lb ie~s and conditi.oru of,.
.e m ~ nt in n;:sp«t of workmen belongi.rig JO tbe sa.m:2
0

p~~,
;:;: 'tlrt . r • . I. #"

:::,- c:u:ego.ry. The rule$ n»dc in ret""d to the,c- condi'tiom: .uc

() ~~ ppl~~b!lt~ ?~ th• Act .. .•. 1 • ', f:•+ called Sw,ding Order,. • ii"'
Q)
Thf Act ~ d s to the whole of ~ •· The A« applle, to ~vuy The ob~ of the A~ it: t0 have. ;mti~ Standing Orden for,
3
(/)
~~
,, tttii&llshmcm't wherein ·too Or ~Ott ~Or.km.en art ernplO~ ~ Matten eJ1umei-~ted in the_ Sched.uk tb,~e Act.. tha,\ it WA\ ~ot
J.ntcnded that chcre should be di!Ic.ttm: corlaib.om o f strvieelo.- tbose-
(")
Q) i , i '" '
::,
::,
f '' ,)-
.

<D
~
i
t

300
who arc employed before i nd those Cmplo)'~d .af t.e r the. Standing
Orders c;a,me into force finally. Once the Standing Or~rs come: into
the force, they bi.r.d all those presently in the emplormeot of the.
COJlCCtll.ed enllblishment as well as thost: whO-are 11ppoi.nr.ed t.hereafu:r
c-✓t~u ~l«trk SHppfy c(?, sec
Ltd. v Ala:fdi.1,1 (1969} -2 S98; UP. Ekc.'ffi
S11,1Jp!J C.-,. 1.Jd. v Tlxir Wi>r4r.rtm {1972) 2 SCC 54].
In .-1~ /»dlaLJd. v S u ondbulMJt.rnl/ Tn"bll:-_I, W.B, {AIR 1972 SC
1626), held that the prov-isions a$ to the o1gc of retirement in the
sta1iding order$ of an esublish.mc:nt would apply to all employees who
joi.ned. ~he service before or a.fur the comi.ug iz?to foroe of the ~and.iog
orders b ·en though there w..s no sud:& proyUion in the past.·
Fcuuros of the Act
The fo!Jowing are t.hc 111ai1t feat1.1rcs o f tbe Act:
l. S,J,mim()tt/m~:fimtitJlf ef Jrojt 1tit1tdf,,,t qr,krr. Tbc e.mpl<'.>)"CT of
C'VCry industri.al ~ blidu:n.ent 'i$ req·ulred to s-ubmh to tbt
Ccn:i!ying Officer draft s~and.in&·orckrs p roposed by him for
11.doptiOrt in his indutt.ri.11 crt.abl.i.J:ut)ent, for cen:ificaliou (Sec.
. 3). Certifying Officer is empowered. to modify or add to tht
draft ZJ ii n ~ I.() ~iu.k.- the dnft $t~.uding or-den <.-ertif~t
u.uder the Act..
The dn.ft st-J.nding o rders submit~oc:I d~all be accompaniocl by
-a $:t.atemeot giviug prescribed pa.rticcl.iirs of the workmen
e mployed in the UldustrW csublishment inducl.iJlg, the na.,.ne of
thr: uack union, if any, to which they btlong..
2 faV,1 ,1rvrdi11& 1mlm ~ grrn,p of emp/'!}Ynt: A group of em.ployert
in .s:im.ilar i.ndu.suiaJ establishments may submit afah:J draft of
.sta:idius orders for ceni6c,1lfon (Sec, ➔) .
3. G1Jt'fl'R11tt.rrJ mtg St/ q11/ 111"'11I na,uli,g orffl'. Tht' appropriatt
Government may set out model standing ordm for the purpose
of the A<:t. T he draft $CH1.ding ¢ rdel"$ framed br an employer
should as far as practicable be in conformity with modd
uanding orders• .Any e$tablisbment C.ln :i.ecept the Mod.el
Standing Ordcr.s al.so. T hese Model Standing Orders are
·- - .. ~
(I)
C
C
fodustrial Employment (Standing Orders) "ct '3m
"'
<)
(/)
temporari2y-appliC;1.ble tQ an enabllShmcnt ~h.ich COfflC$ ~de.r
the pr()Visions of this Act il1\d whose Standmg O~rs arc not E
fina.lly cenified, "'
(.)
4. urlfninJ, ~arT ,md ttpp,Jhit ,w11¼.riti,s lo &.n.powtn ~{ CiJ>il CoJ,,r. ~
.<::::
Every ~ i n g o(f,oers and appellate autboriry sh.ill ha~. all ;::
the powers of ;i S::ivi) Court for the _purpose of rcu,vmg 'O
evidence, adininistc:ri.ug oaths, enforong the anenda,pce of (I)
wimcss~~nd co~pelling the discovery md production of C
C
docom,nu (S<e 11).
No o ral evidence having the effect of adding t<> or o tbc.rwisc-
~
(/)
varyirii or c o n ~ing st&nding order as finally oerti£i«i under
this Act $hall be :1d.m.it.ted in any court (Sec. 12).
5. Pt~ An cmp1oycr Who ~ to &.ubtnit dri.h siutding orders
o r ~ employer who does any .act in conuaveruion ?f the
,...,dingo ~ !inally <eniJiod w,der the A<t $Mil be pw,i,h.bl,
with fine as .specified in Sec. 13 of the Aet.
6. PeMr 1q Extmpt: 'the ;appropri~t Covem.ment may by~ Gazette
notific:.i-t.iori exempt any t$Ublishmto t o r cb.ss of t$abli,hmem.s
from any o f the provisions of the Act.
7. Po111trr I# mah Jv;lt.r. ih.e appropriate Goveroment inay, after
previoUs publia.c.ion, by notiftc:ation in the Official Gu.ette,
make rul~• to carry out' tbt. purposes of cbe Act ( ~ 15).
lnterpr@t4tlon (Sec. 2)
tn this Act, unless there i.s anything repugnant in the subject o r context·
{a) "'appdlate aut.bori.ty'"' nie-u.s an ;iuthori~y aP;>Ointed by the
appropria.te government by notmcati~ in~ Offtcial.~
to ~ercise in si,ieh area as may be specified m ~c aotificauon
,he functions of an appcllatt- authority under th~ Act:
PROVIDED th-at in relation to an appeal pending before an Industrial
Court or other authority inunediatcly before the conunen<:eJ?lt-Dl o f
tne In®Jtri" Employment {Stand.i.D-g Orders) Amendment Aet, 1~6.3,
that cou.n or authori'ty $ball be deemed to be the o.ppcllate -au.thorny.
 Labour La,J - I
.
'
I.ridustrlal Emp loyment (Standlhg Or<lers) . ~l:::t1,
.,,:.;,.
t-< "> ' '-
! - " •
,;)
311 ·
·j
~appr?priare governmc-nt'" Jm:1n$ in, :respect o,f indWtrial
•~) I

1
n;~blish.menu under the OC>tlrrol of thf Central Go'-'~11tnr
o r \\ ~ilway ad.minisrracion or~in a major })On, mine_.,e?oil,
(0 'P',;""bed" """""~ by.rules made by 1 •ppropri= ,
govcm.cnent ~ this Act. . 1;,; • • !f
1 ~ :_ 01
p.ei~ ~e Central Governmc:m.. and i.n. ~ other C1$e$: the Sci!t
Govcrnmcm: l l J,
(g) "'sta.nd.i.rig orders'" tne'.UU rufe frda~g tO nuncr, set out ui tlu: ,~...
Schedule. , · . J ,
Q;
I.
~ ~
~) "tnde 1,ut,ion" means a trade unWn fat We time befng repler«! .,,
J •

(c) . ~Ce_riifyiog Officer• ~e~o! a.L:1.b~!1f C01?1ffiiss~"ef Of': :1

~, .~i,,;J Labour Co~OQer, ~J.OC:!udes anr, oiliei ~('r
undh' the Indian Trade U riiQtlS""Act, 1926. il; ,
f
·ot
~.
appoUl~ by the :1ppropm.te goyer~nt, by noriG_c-.atJOn ~ @ •·wages" a.nd "work.nu.n"' · h~~ ·tKl4:i:ne:tnin&S;.~~1.·e1y ·
, the Off~ Gazette, to ~rform alt or any of tb.e funCJions of ?-ssi&ped 10 the.ID •i.n. clau.sei: (rrt''4 d (s) of~e-e: 2 of ~hf.~
~ f~rtifying Officer under ~ilAa. ~- t · • II

~,
iitdUltn,I Disput<S Act, 1~1-:" >fl. •
(d5 "'ffi\Ployer'" ~ , ehc owner ot ali industrial enabils1u1~ n to : €?5
which th!$ A« for the t ~. being·· ~p-plies, artd ~dudes-, ~tandln1 Ordet:S . · _ ~- -~' '
@, P\ a ~ctory, llrty pe~so~ ~une;d Ullder,c4\lSC, {f). of s~f .tcc. ·lliesie ordets aim• to rc~e 8eEi.billty frol'D"thc emplO)'t'.r in terms of
(1) of ~ec. 7 of the .F.aijorit?s Act, i948 u m~nai'tr of job, hours., tibiing,. leave ~,t, producti~ ~ ;a.nd qtm
mancn.. ~
t
' t'
! ,, · , ~
the !acrory. 1 • .. ,

'.@ ~ anx industrial cnahlishmcn t under the con.ttol

-~ ~nt ·Ao f any Gowrhtnent iJ( India, the' 2\ltlj\9tify
ap-po~ocl by such Goveriunt.nc ln,this beh~f, ·or '°the.re
' Tbt stan~ Otder-$ m:.and:ite that the cm.-plo~r cb.ssif( its>empJo>:«s.·
state the::sbifts; pay~nt o( wagei.- rules.for vacation, ru,l~fot ii.ck
dranr !~·:. ; , b~Hr.H!~• nll~
Matters ,to ~
fn~ ~nrtu'l:t.~o~•anio~~~ 0thcn.
provided i n Standint O,d• t1 1-.
1
ti o!
0
no .1uc.b.ority is so appoint:ed. th;e be:ad of the ckp:utn:lcn~ ~cc:~rdi~ ti> ~ ~ult. the (ollo~.~ g~ ttcn sh~~ --provkled 0
•
(w) in""y other industtw~lislunin~ any'pcnon ~ ibl,
to the ow0tt for the supervision ahd con trol Of the
indumia! esabli,hm,m. • h''
~~~gOr~ : . ·. p. _
1. C:hssifia.r,rin of work:meti e.g.; whether permane.ru,. ~
api,rcnti~ probationtrs, ot '/,,tdii,/. . ,.{t
fi
' ,0i ·1
(/)
(e) .· ..indu.stiial mabJishment.. mnns. i 1
2. lwbnnc:r 0£ ioc:UMting t0 workmen periods and h ~ q! worlj.:;
-'I; •· • , 0
0
Q)
, @ .in ind~uUJ_ enabtish tn~in.a.s d~~ed hi Sec. 2{ii)tJoih:.!ie f- ho)½la~ piiy-days and w2sc...~ a, · ·~
:,
:, I
Pay,ne-nt of Wages.Act, 1936; Or · 1
J. Sluft working. • "f.tll '{© '
(1) '(ii), a f:lctory ~s .defined in See. 2{m) of 1M FaClorie$~, 4. '.A~nda= and la« coming;"•-". 1:i!t ••
··r
C.
~
I

~
19◄s;ur . ·
u il~:ay as def~d in S«. 2(4) of the Indian ~t~Y".
5., C0ddid~ns of, pr6codurt il):'ap'~1Yirig{or, aoci~~uth~rity .
h~rrs:· -Jt: ;t
Sff.
;:;:
:::,-
2
Act,J890;or . , ~ fc 1
''Wlikh may grant leavt and
6. ~ t to enter pr~ ~Y; certain &l~ and.1~ility ~
'
o.!
() ("? the cnablishmfflt (?f • person Who;: for th e pti.rpose ofl St.lfCb. i . •
Q)

3
fulfilling a cont.net with >die oWitc.r of an)·
dtilblishmem. Cmployee'$ workmM.
iha1"£ri~t :_
~ ... · ,1, ao,;,,g?-04 roporung of ,ecclon/ of¼industri.J ..;.i,\ishmcii;; vi
(/) tcmpon.ri,noppages of woik ao.d ihe righu and liabili'c~s of
0
Q)
:,
:,
(1)
the emplorer and wor~

i ,
a~i~g there from.:\

, lr •
~
.Oj
o·
.I •

~
j ._

312 Lab ou r l,aw - . I I lnd ~1i$trfal Emp1oymen.t (Standing Order~) A<:t
S. Tt:rntinad.on 0£ employment, :ind the' n otic.e to be gl\•en by
("mployer and '\\•orkmen. : -and even where the setvim of ·an employee a.re tcrmiaated by ;:a,p
9, ·s\1&pc1u.ion o r <lisiniss.U for misconduct, cmcl ::i;c:u or o m.iisioni
._,,·hic.b ronscitute misconduct..
10. M'e,.m" of redttSS !or workmen ~g,:llltit unfair treatment o r
"1rongful cx\lctlon.s by the employer or,his agents or sen ·:t.nt$.
11. .Any other m::itter whlth n-».y be prescrilxd;
1n C OO«> J1rdl(ltrm (P) LJd." l.J.tMitr Ctkrt ,\fr1.,n1t {1984) 1 llJ 16 (SC),
pm'.ish,ne.nt for an act which is not enumerated as mi"SCondiici in the
standing o rden: of the establishment is ..ybolly •illegal. fo Up1ro1r ln.,k.'ll
U,l. v Sfu,11mi Bh.111 AIR 1998 SC 1681, held, th-at , clause in the
oert,fied s~mding o rders provili~ for autonut.ic termination of $C:vice
of .1 pcrmment c:.mployee, not directly related to ..P roduet.iosi" in the
fa.crory o r ind;.istri..ii employtnent, woolcl be void iJ it does: rtot provide
a n opportunity of being bc.1rd to the employee.
ln CNp. Cr. &11it; v fnditstrial Triblf',,al.. HJdw!x11J AIR 1970 SC
24S. it w ;15 bdd that i!'I c:a.~e of corulict ~ween na.tutory conditions
of employ ment contained in S1andi.ng Orders .ind $pccial t<rms
contain ed i n tbc 4;(,ntr.,ct. the terms .of the former $h:a.U previll over
the l:me·r . 1'11e employe r :md ,:,;o rk.m.-u\ m,rM/ entu into 3 ooninet
overriding the St.'lrutOry condilions ~ em~cxlied in the ccrrifitd Standing
Orders. 'l'h.C" Standing Order is ~ho 11 conuact between the employer
;md the wor k.men [1Pu1m: !du Maid> U ·v We-rkmrn AIR 1973. SC
,6;oJ.
I n 8,•h:n-Jrumw/1 v Ali 1-lfWJt AIR \959 P:a.t 43 1, t he probatioo
period pro...;ded by the standing orde.rs w~ for 3 months only. But the
emplo)'mcnt letter of the respo ndent "C\'ork.man pro\•ided proba\ion
period of 6 month s. He.Id th.n the cenifu:d ,s,1 anding order$ hav~ st2ruoory
forc4! . Tiirre!ore, p ro~tiC:n \ period could 1141 be for :i period longer
, hao 3 month!L
"The rigbt to contr.ic:t in indusuiaJ nutters '5 r.o Jong~ an ;\bsoh.ite
r¼gln =ind .naruw de:iling with indUS'.rial m:&twl ~bound with restrictions
o:t the absolute righ1· to contract. The docuine of hi.re q.nd fire l$
~
(I)
C
313
C
"'
<)
(/)
completely ~brovted both by mwt.e¥ a.nd by i.ndusuiaJ adjl.Xiication,
E
order of diicbarr.e $.implicitcr die legality and propriety of ruch an "'
(.)
otde.r can be d,al.lenged in lndu..«ri;U T ribwuls. These rewictions on lhe ~
absoluu: right to contn.a ·~rt' imposed bcca\l&C: $tWrity of employment ,<::::
is m c>tt and more r eSlll'dcd u one of th~ neceuiric, for industrial ;::
pext: and hllmony. 1f reasollS for di:schugi,ng a.n miployee 3tt funushcd 'O
(I)
to tbe employee conc:esnod, h e not only has the sat.Ufaction ofknowini; C
v,,hy his services arc p.irpensed with but it becomes easy for him in C
appropriate 4;a.Ses to challenge the o rder on the grou.nd that it is either ~
not le~l '?;. proper,· which in th~ ab$eD<:e o f knowledge of the~ (/)
rca$0ns, it may be difficult if not impo~ ible for him to do" [S.S. U!)I
c.
lt,;""!)• LJd. v S.S. r,,,,;h,,g ~,..,., UNio, AIR: 1969 SC 513).
Certtfic-.atton
Conditions for certification qf standing orders (Sec. •>
Standing ordcrt $.h~ll be cenifiab)e unde.i- this Act if.
(2) provision i, nu.de therein for every m-atter set. out in the-
Scliedule ·whic.J,. is app\ic.blt to tht industri~ esuhlishm.ent,
and
(b) the Slanding orders ue othcra.•ise i.n conformity with the
provi$ionS of thi.s Act., and it $hall be the functi.on of ,he
~rcifying Ol'fu=cr or appdlate authority t¢ 1kljwlicate upon the
fairness or reasona~l~ness o( Ule provisions of any $Utlding
orden.
Certification of standing ord,rs (Sec. 5)
Copy of t..b.t dra.ft standing ordtr to M s.ent to trade un.ion or
workmen: On receipt of the draft, UlC Certifying Officer shall
forw-uda copy to the trade union, ii any, of the workmen,
or where there is no $UCh trade union, to the: workmen, in the
prcscr¾bed form requirinc ol,ft,dioN, if any, which the ~·ork.men
may desire to make to;the dnft na.oding o.n:krs to be subm.incd
to hlm within fi.ft.een days from t ht receipt of the notice.
 •"'R
It fl
- Labour Law-: 1
1
'l .
Industrial Ernploym·e nt -lSt:1ndiog Ordl?r:s') "Act
'
t3 15
J: Ar~ giving the employer and clie: ~ c Ulll<IJt Or ~prescn;~-es = ~•ii,~
or additions.; it tbinb
9t
0

the ~ g o<d;';l co~bl,

t

<?f the ,.,o,~o on oppoJturutY. of be½g beud, the C.rtif}'l"i

~-~ this Act. The ~ppclliue aµ0:01.;1',% tha.11,,wn:hip sev~ d?ayi. of:·1u
9fficcrsl1aU deci:k- whether or rux·any r:oodiGcation 01.ilddition '· G .
t,o, th,e draft submitted by the einploycr i's ~ r y ,o r~ 1
order, Stnd c¢pie$ o( die' Ccnify~gp(ficer, ·to tbe~mpl?~r' ::iQ.c:l to -
the draft' standing orckts ~ h i e under th.if ~ 1.Dd .shall the tnidc- union or Other prescribeif'repre.sent;1civcs of the wotk-rnell.
·' <., • •

·mllke ~ order in writing a«o~y.1 r ·~ · In &drap,lr P411itt' Jftn,efmr/'$ A"i~ v Dtpt1~ chit L,,:ii k;r Ci,{"~~
(1993) I U.J 991 (Dci), the cer~5f1 na,nd.iog 011dt!t'$ Were diipatc]'.ed
o·J
' . 11,e Ceruf)-ing Officrr sfuill mm-upon cenify the c!-.ft Itanding
·
1
->orc1m: Mtcr -..ru.kin.g any modjfa¢a.ti~ -and within se~eU. a~ys oa 7'h JanlUry.1991 and tbe ~peal wu filed o n 6~ Fq:bru.:iry, 1991.
~
~ ·Smet C:Qpies of the certified st~dibg ocdc~ tO the c,k,loy«

• i ihe ~..!Orkmtn.
. ~. , - .r r
r
T&e-~et d6~i n0t ,ay t~ut on $uch cen.ification, th~ Standing Orders
l
·· 'fl-incf:to rl1e trade unioo or ·o thd PJesci.ibcd repre,ent:ltiv~l of
&LhJ1at '!'e tppeal ~as fiJf!'d Wiiki:{ ~,e presc.ri~ } ~a~h;,n _ps!iod_
ofU,iny dar., b=.use)>llWty: 7 wuto be ""1,,,1,d '" V)O'/r of S.J 9(1)
of\>the• GeOenJ
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.• ~u.lte ~_!Utqrj, effect or bet?me part ,!he .statute. It can. ';j~Y
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~~! of 'Oj:,erat1on Of Standln~ pr~rs (Sec. 7) 1
' ~
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~ kc su~tcd that b~virrue ~f ~ ~adon;. ~ey get me~Ji¥ 4
Standing-•-mien sh:Jl. u.n1m an appf.i} ~ prefern:d. come ~toope!".aMo
into deleg_2t«t/tubordi.rtiatc lcgislat1Qn. :lq.o~ th«e Stan.d.ingprder$ ._--.• G p·
ue i{nd~_ bt<dly bindin~ ~pon both me,empl?I':'!' ~ the '7"!'1.<>l'!!<, .on the expiry ~f•thihy day, lrom\ iliC.date oo w-~~di authcnric:1-red
copies. -a:rc sem'o,: where :in appeal:f, prc(e.rred, ou die expiry Of seven
11.rAi const1rute the co4d.1t1nn~ nf ~ e of Ue ~ l or,oei, it 11.ppck.·$
ch.)'$. from the date .on which oopi~ of the order'~of die 11ppdfo.te
0
-.. diffi~~/Osar;~oo pfinciple, that they ~~ ~OfY,forCc[T&~ •
S41U R&J-~ n:~'1W'f C()rj)()ns:i411 V Xrirbt , 1<411( ~ 1995, SC 111sj. f, authority are seo.r..
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In RDhMk d~d lfinar Dirlrifl SIIJJNl Co. J..id. v Sl4tt ef U.I~ (A.rr,.
li'66SC!◄71), t~eSuprem< Court w ·J/aj thartheemployucad.not Ret(ster ,;, Si,1_ndfn• Orders (Sec. 8) h. , _

insist u_p<l:9 id¥i,.g a COnditton co the Siancluig Oi&r. wn.icb rd.ates t~ A.copy of oJl ..i.ndins ord,,s as t.rally 6:rtified ~ ~•this Aft shill be 0
the .maifit y,S,h·is/4,induded in theScll;a;jJe. It wfurth«.h,ld U.,,

.
fifc'd by the. Ce.nifyittg OfficerUl•a r~gister iLt t.h.c-prcscriped form
(/) P,roviSi~ra- ,:i;.ay,be n'Ude in the Standing o ~·ocin~min.g the ritbft ~ i; t:ained for 'the purp0$c, ~nd.th~ Cerijfying Offi~ ijull furnish, A 0
0
Q) " .,,a Jill>ili.ties'of ihe employer .,,d th.e employ,,, IU1d .meir <nforoenifut copy to 2.oy person on payment of t:J:ie praeribcd fee.
:, by t.n~ te;;na! .u;Nngemenc bctw~o th~ employer·~ his emplore,- ' . 0
:,
(1) - •f-1.
A!>Pffls (S.,:. 61 •
,·
l Po·stths of Sta.ndfn1 ·0rden (sec:;, 9) :h ~ _.
C. ,th .,,._1..,_ {_ J , - ~ I ~

~ Anycmpk#,1 ":<.I•~ tnd, wuop o.-°""'fpre,cribed~,.tfy,;, The t.exc of tbelc:cn.ified scanding-;Or~f $h.ill be prominffidy pot!~
;:;:
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" o~ r.he. wor~rn~p. a_,ggriev«i by the or.der of thci Cmifyicg Offtetf -~-':.~ ~mpl~~r in ~glish ~~. ~ .lfl~,P n.~.ag~..\l.l}d"rstood by.the
•wnhlr\fO daysjjj,.o, the date oa whJch copks...,. sent by. t h e ~ tmJonry of his ,,Ork.men OJl spocial ~ maw.tam&Lrror the-_p ~
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Q) • t olficer; :tPJ)t~ co; tlie 11ppell-:i.ce 11.uc.bority, a.a.a th'c_:,,~,e auth9rity1 . at or mu the eb.tni1ee throUgh w.6.ich the majority ·o f the Workmen.
3 wheisledecis.Ion shall be fm-½ shall by order fo. .•writing confirm thf C-DCtt the mcruJri:U eu1bliih.rncnt"and•in all dep,i-tm.fflts -.,h«e,J:he
(/)
0
•"-'ldi.og Ql<:k,. cliher in th• forn1 eertifu:d by the Cenuyioi 0£6= or
' mi, ~•nrung the sud s,anding o.-dcn br nuls~ such ,;,odificarioot
~rk.meo W! t ,~Oycd. I •• ;. ' ) ~ :1r: '!
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316 Labour- La\v - I
Dunulon (11\d Mo<ltncatlCM'I or Sta.ndina Orders (Sec. fO)
Certified $tanding orders s h.11J n o1, except o n agrec~uem between the
c:rnplorcr a nd the workmen or-a trade union or ot~r reprcscntacivC$
of the workme1t be li:able t◊ m od.ific:ufon until the expir1, ()f $ix
mon th ~ from the cbtc on which the standing orders or the htsl
utodificationS t.hue-of ca.me i.n10 opcnation.
An cmpltJyer Or workrn.vi or a trade W:UOO or o ~ rt:pJ"CSC'~tivc
bod y of the workmen m.ly 2pply co the Cenifying Officer for che
modiJjcation .lad su ch ::ipplic:1tio1t $h:lll be :a«ontpanjed by five oopies
of the modifications p ropou d co be nude, ;11ll4 where iuc.h
modific.:uions J.re proposed ro be fll:lde by :agreement between the
cmp}oycr ;u;,d.ihc workman or a rrade union 'or ot.hei- represcmaci:ve
of the workmen, a ceni.fiod copy of th-at agrocmc-nt shall be filed along
w ith the :ipplie2cio.o.
N o modification iu standing orden i$ permjssibJe w hen a
seule1ne nt ◊f $U.t1.ding orden ..Using lhe age o{ suj:,erao.ni:aricn from
58 yc:i.rs to 60 ~•ear$ w~s held to be in uiolatiOn of !.etde.mcnt :u this
ck·mand was not agreed upon in tbe COW"Se of the ·$1:tdcn~at and this
modific:ation wo\lld th row additional financial burden [Bar::r,vJ; l Refi»nic
P.S.P. v /,u/i,,, OH c,rpa /,.Id. ( 1991) I I.LJ 46 (SC)], '
An -,ppli~t-icm for modification Qf sundiog Orclen would
ordinarily be- made- in the follo~·ing cases: · such workman.
(,l) Wh~re ~ clt:inge of cir cumstance has occurred; o r
(b) Where 1he ~ order has' result~ in inconveniena, bardsh.ip,
Jnon~y. etc.; ot
(c) Where $◊me fact- ~'.1.$ lost &igb:t o f at tbe .time o f ccnific:nio1t;
(d) \'(/here the applic3.nt fttlt th::it modific:uion will be more
bcMfic::W; and
(e) Once;\ standing order is modified it can be ji,,.,MT modified
if new circµrustanGeS have uisen since the hut modification
(S.S. 4,ghl Raiii.i.vg- Ca. Ltd. v S.S. R.ailWt9 IV'orkm fJAi4Jt AlR
1969. SC Sll],
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(I)
Industrial Employment (Standing· Orders) Ac t 317 C
C
In G&izj4 1Md £ ,:g,iu~,. Ca. v CtTtffJT.lt& O.IJim- Affi 1978 SC 769. the "'
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workc:n demandod two Jays c ~ )e.i,vc: and applied for modifi~cion
of tl1e standing orders accordingly. The Ccnilying Off.iccr, Kanpur E
gram~ modification o f the standing orders providing for six da.ys "'
(.)
~:J li!aYe oo paid ~ is after taking i.nto 'aCCOWlt the prevalent pra.ctt~ ~
in the oci&}, bouring jndunries a.pd financial po$ition of c.he appellant•s .<::::
~dertak.i.ng. 1'hc: Supreme ,Court upheld the order of the Ctttifying ;::
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Olfooer. (I)
C
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Pa.vment of Subststen~ Allowance (S.C. 1OA)
(t) Where any w~rkmen is tNJfNndt" by the employer pending ~
I lD'\'estig:atioo or inquiry into complain.ts or charge of misconduet
(/)
I ,,piost him. th, cmpl(l)'""h.U pay to .,,ch workmm subsistence
I allo~
I
(ai) • at the rate of fifty per 1;,ent of ,he ,wagei which the
workrmn W;as entitled t0 immcdia.lely preceding the date
of such suspension. for the fint ninety days of $USpension;
and .
(b) .at the rate ohe:"enty•fivc per cent of the weh w.1ges for
the remaining pC!riod of suspension if tbe de1ay in the
completiol?, of disciplinary PfOceedi.ngs against i uch
wor-kman is not d.U'ecdy a«ributable to the eoocluct of
Tempor•l'Y Applfcatlon of Model Standing Orders (SK. 12A)
NotWitmw.uling a:nythi.og eotltaincd in Soctiom 3 to U, f~ the period
commencing on the dace on wbidi this Acr. becomes apphcablc co an
indU$tl'W establishment and ending with the date on ••hich the &W1ding
ordc:.r$ as fuully certified u.nde.r this Act come into ope:ruion un der
$e<;iion 7 LO that C$t2bli.ih.m,:.nt. the prescl!'ibed model standinc order
shall be deemed t0 be adopted iii that cseib!.idunent, and the provisioru
of See. 9(2), See. ¼3 wd Sec. 13A ,h,!l apply to woh mod<! nwdiJig
orde.rs n they apply to 6e standing orden so cenified.
 318 i.abo ur Law • I
O·
~n,ltles and Procedure (Sec. 1J) ~ 1

(I) An e:mploy tr who faih to subrni.t dnft 4t:tt\di.ng ordc~ as

required· by s~c. ). o r who fuodifies tu, S-Utldini orckn
od,uwi,c_dw, in- with Sec.-10, ,ball b, P " • ~
~
with rme
which may 4,ctenJ t"O ftvC thow.v,d ~ , 2nd in~~
0
' c~c o! 2. condnuin..1 offeoc:t wi:tb a fun.her UM wJiicb ni.ay
extend to l'WO bun.d.rcd ruptts for every day .a.fier the fim
during whicl, the oH~ntc contiaucs. . l 0
(2) An omployff who doo any"" in..,...,.....,....,.
of the ..-ling
ordcrt finally certified u.nde.r tl:ti• A~t '!r hit induot'tial 0
esnbli.shrncin s!ull be punlsbable withfint wh.ic.h rhay o:tmd •
to Dirk' huodrul rupett,. a.ad iA dx cue of• con.t:inuidg ot'ttnoe
with t. furtbtr fme which i:my extend to twtnty-6vo ntp«.t for
0
n•,y d>y alter th, 6.rn during '!hkh !Iv offuic, c,omin..._
(3) N"~ pr0tec:utiott fur in offence punishable under this $tttion
e
s.liill bl irutituttd except ,.,ith chc P'hevious uocdon of the
$
2PP"'Pri= ..,.-.n,mcm.
(4) No cowt i.nlcrio, 10 dun 0£ • M-poliun Mag;,,,-= or fudici.,J
M.g;,tratc o! the ...:,ood cba alull l,Y any oHe.... umlcr mh 0
..aioa. I
. , 0
lnterpretauon, etc. ot St.ndltll Orden (Sec. 1 l A)
If any q,uertion uj,u a.s to the ,pplicadon or interpret1ttioa o( & 0
Olaoding ordtt Jnffied w,d,r W Aa_ u,y m,pior< 0< """11um.a O<
(/) a trade union or ~ rcpresen~ bod7 of the w-orkmt11, may rc{cf ,.,.. -->
0
0)
:,
ihe qu,ruon ,o ••Y
of ,be Labow-C.OUra concirutod wldci the J:m!uww
Dispuw Aa, 19-47, one! specified lo, thi: d..poo.l ol A>dt proac,ding
:,
by the •ppiopriate govemmcnt. by notification i:n the Officia) Gu.c:tt:~~ -0
"'Q.
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o.nd th,e ~bO\lr, Cowt CO whkh the question ti so rc(~ttrcl aluJ.11fltt~
&mnC the pon;« an oppomutity of being hc>.rd, dtcido ~ qudllOa
and 1uch dccition 'ahall be final and binding o n the panici. t
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