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HIMACHAL PRADESH NATIONAL LAW UNIVERSITY

SESSION 2024-2025

LABOUR LAW

CRITICAL EVALUATION OF THE POWER AND FUNCTIONS OF THE

NATIONAL INDUSTRIAL TRIBUNAL UNDER THE INDUSTRIAL DISPUTES
ACT,1947

SUBMITTED BY: SUBMITED TO:

AVANISH KUMAR DR RUCHI GUPTA

BBA LLB (HONS.) (ASSISTANT PROFESSOR OF LAW)

10TH SEMESTER

1120202133

16 Miles, Shimla-Mandi National Highway Ghandal,

District Shimla, HP-171014
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ACKNOWLEDGEMENT

I wish to express my deepest gratitude to DR Ruchi Gupta (Assistant professor of law) for
providing me the chance to work on this assignment and for having faith in me. Thanks to their
invaluable feedback and unwavering encouragement, I was able to stay motivated and produce
my best work. I would also like to thank Mr. Shubham for their supervision and direction,
which helped me obtain many of the resources needed to finish my project. Lastly, I appreciate
the support from my friends and family members; the project would not have been successful
without their help and ideas.
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Declaration for Academic Assignment by Student

I, the undersigned, [Avanish Kumar], hereby declare that the work presented in this assignment
titled “[CRITICAL EVALUATION OF THE POWER AND FUNCTIONS OF THE NATIONAL
INDUSTRIAL TRIBUNAL UNDER THE INDUSTRIAL DISPUTES ACT,1947 AND TYPES OF
DISPUTES THAT CAN BE REFFERED TO THE NATIONAL TRIBUNAL AND PROCEDURE FOR
FILING AND HEARING CASES]” is entirely my own effort. I affirm the following:

1. The content of this assignment is original and has not been copied from any other
source.

2. Any references to external works, including books, articles, websites, or other

materials, have been appropriately cited and acknowledged.

3. I have not submitted this assignment for assessment in any other course or academic
institution.

4. The research, analysis, and conclusions presented herein are based on my independent
efforts.

I understand that any violation of academic integrity may result in disciplinary action. By
signing this declaration, I affirm my commitment to honesty and ethical conduct.

AVANISH KUMAR

1120202133
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TABLE OF CONTENT

ABSTRACT…………………………………………………………………………….5

INTRODUCTION………………………………………………………………………5

NATIONAL INDUSTRIAL TRIBUNAL (7-B) …………………………………….….6

SEC 11 OF INDUSTRIAL DISPUTE ACT………………………………………….….7

POWER OF NATIONAL INDUSTRIAL TRIBUNAL…………………………………8

SEC 11 A OF INDUTRIAL DISPUTE ACT………………………………...…………..9

FUNTIONS OF NATIONAL INDUSTRIAL TRIBUNAL…………………..…………9

CRITICAL EVALUATION…………………………………………………………….10

SEC 10 OF INDUSTRIAL DISPUTE ACT……………………………………………12

FILING AND HEARING OF CASES IN NATIONAL INDUSTRIAL TRIBUNAL….13

CASE LAW………………………………………………………………………………13

CONCLUSION……………………………………………………………………..….....15

REFRENCES……………………………………………………………………………..16
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ABSTRACT

The National Industrial Tribunal (NIT) is established under the Industrial Disputes Act, 1947.
A National Industrial Tribunal is a specialized judicial body that handles labor and
employment disputes at a national level. These tribunals serve as forums for resolving
conflicts between employers, employees, trade unions, and other industrial stakeholders. It
functions under the Ministry of Labour & Employment, Government of India.1

INTRODUCTION

The National Industrial Tribunal (NIT) is a quasi-judicial body established under the
Industrial Disputes Act, 1947 to adjudicate industrial disputes that are of national importance
or involve industrial establishments situated in more than one state. Constituted by the
Central Government under Section 7B of the Act, the tribunal ensures effective resolution of
complex and large-scale industrial conflicts that surpass state boundaries.

The NIT is empowered to investigate and settle disputes relating to wages, employment
conditions, retrenchment, closures, and other matters listed in the Second and Third
Schedules of the Act. Headed by a person qualified to be a judge of a High Court, the tribunal
operates with powers similar to those of a civil court. The process begins with a formal
reference of the dispute by the Central Government, followed by pleadings, evidence,
hearings, and issuance of an award that is legally binding upon publication in the Official
Gazette.

The NIT plays a crucial role in maintaining industrial peace, ensuring uniformity in labor
adjudication, and promoting equitable industrial relations at the national level. However, its
effectiveness depends on timely reference by the government and efficient execution of its
awards. With evolving labor reforms under the Industrial Relations Code, 2020, the role and
structure of such tribunals are expected to be further streamlined to enhance dispute
resolution mechanisms in India’s industrial sector.2

1
Industrial Dispute Act, 1947

2
Shabir, S., Gupta, S., Nair, V., Jain, V., & Agarwal, V. (2014). Industrial Disputes Act, 1947.
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NATIONAL INDUSTRIAL TRIBUNAL

Sec 7-B of Industrial dispute act, 19473

Constitution of National Tribunals

The Central Government, through a notification in the Official Gazette, can establish
one or more National Industrial Tribunals.

These tribunals handle disputes that have national significance or impact industries
across multiple states.

Composition

Each National Tribunal consists of one Presiding Officer, appointed by the Central
Government.

The Presiding Officer must be a serving or former Judge of a High Court.

Advisory Assessors

The Central Government may appoint two assessors to assist the tribunal in its
proceedings.

These assessors provide expert advice to the tribunal during hearings.

Significance

Ensures uniform resolution of disputes affecting industries across states.

Provides binding decisions that help maintain industrial harmony.

Strengthens legal oversight by appointing experienced judges as Presiding Officers.

3
Sec- 7B Industrial Dispute Act,1947
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Sec – 11

Procedure and Powers of Conciliation Officers, Boards, Courts, and Tribunals4

Procedure for Handling Disputes

Arbitrators, Boards, Courts, Labour Courts, Tribunals, and National Tribunals can decide
their own procedure for resolving disputes, following any rules set by the government.

Authority to Inspect Establishments

Conciliation officers, Board members, and presiding officers of Courts and Tribunals
can visit workplaces related to a dispute after giving reasonable notice.

Legal Powers Similar to Civil Courts

❖ These authorities have the same powers as Civil Courts under the Code of Civil
Procedure, 1908, including:
❖ Summoning people and questioning them under oath.
❖ Demanding documents and evidence.
❖ Appointing experts to examine witnesses.
❖ Handling other legal matters as prescribed.
❖ Any investigation or inquiry by these bodies is considered a judicial proceeding,
meaning false statements or obstruction can lead to legal consequences under
the Indian Penal Code.

Appointment of Experts (Assessors)

Courts, Labour Courts, Tribunals, and National Tribunals can appoint experts to help
them understand complex issues in a dispute.

4
Sec – 11 Industrial Dispute Act,1947
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Status as Public Servants

All conciliation officers, Board members, and presiding officers of Courts and
Tribunals are considered public servants under the Indian Penal Code, meaning they
must act fairly and responsibly in their duties.

Decision on Costs

Labour Courts, Tribunals, and National Tribunals have the power to decide who will
pay the costs of a case and under what conditions.

They can also give instructions on how costs should be paid.

If someone is entitled to receive costs, they can ask the government to recover the
amount like unpaid land revenue.

Legal Status as Civil Courts

Labour Courts, Tribunals, and National Tribunals are considered Civil Courts for
certain legal matters under the Code of Criminal Procedure, 1973.

Powers of the National Industrial Tribunal (NIT)

1. Adjudicatory Powers – Functions like a civil court, with authority to summon

witnesses, demand documents, and examine testimony under oath.

2. Binding Decisions – Its rulings (awards) are legally enforceable.

3. Interim Relief – Can provide temporary relief during disputes to maintain stability.

4. Jurisdiction – Handles disputes referred by the Central Government, especially those

affecting multiple states or of national importance (e.g., major strikes).
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Sec 11 A

Powers of Labour Courts, Tribunals and National Tribunals to give appropriate relief in case of
discharge or dismissal of workmen5

Review of Dismissal or Discharge

• If a dispute about a worker’s dismissal or discharge is sent to a Labour Court, Tribunal,

or National Tribunal, they will examine whether the dismissal was justified.

Authority to Reverse Dismissal

• If the tribunal finds the dismissal unjustified, it can:

o Cancel the dismissal and order the worker to be reinstated with suitable
conditions.

o Provide other relief, such as a lesser punishment instead of dismissal.

Use of Existing Evidence

• The tribunal can only rely on existing records and cannot consider new evidence during
the proceedings.

Functions of the National Industrial Tribunal

1. Settling Disputes – Resolves conflicts over wages, working conditions, layoffs, and
retrenchment.

2. Maintaining Industrial Peace – Ensures fair resolutions to prevent prolonged conflicts.

3. Interpreting Laws & Agreements – Clarifies legal provisions and agreements when
disputes arise.

4. Providing Recommendations – May suggest policies to improve industrial relations,

though this is not its main role.

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Sec – 11 A Industrial Dispute Act,1947
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CRITICAL EVALUATION

Strengths

• Ensures Fair Resolution: The NIT provides a structured legal framework for resolving
disputes that affect industries across states.

• Expert Adjudication: The Presiding Officer is a High Court Judge, ensuring judicial
expertise in decision-making.

• Binding Awards: The tribunal’s decisions are final and enforceable, reducing prolonged
conflicts.

Weaknesses

• Government Discretion in Referring Cases: The Central Government decides which

disputes are referred, leading to potential delays.

• Limited Jurisdiction: The tribunal only handles disputes of national importance, leaving
many industrial conflicts unresolved at lower levels.

• Implementation Challenges: Employers may resist enforcement, leading to difficulties

in executing tribunal awards
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TYPES OF DISPUTES THAT CAN BE REFFERED

Disputes of National Importance

These disputes have a major impact on the economy, industrial stability, or public interest. They
often involve key sectors like railways, banking, oil, or defense.

Key Features:

• Affect the nation’s economy or large-scale industrial peace.

• Involve strategic industries essential for public welfare.

• Influence the working class or industrial conditions across the country.

Examples:

• A nationwide strike in public sector banks.

• Wage disputes affecting all employees in a central public sector company.

Disputes Across Multiple States

These disputes occur in industries that operate in more than one state, affecting workers and
employers across state boundaries. They need centralized resolution for fairness and
consistency.

Examples:

• A conflict between an airline and its employees in different states.

• Disputes in a company with factories in multiple states.

Inter-State Industrial Disputes

If two or more states are involved in an industrial dispute, or the dispute cannot be resolved at
the state level due to jurisdictional issues, it can be referred to the National Tribunal.

Complex and High-Stakes Disputes

These include:

• Disputes requiring expert legal interpretation.

• Cases involving large-scale layoffs or restructuring in nationally significant industries.

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SEC 10

Procedure for Filing and Hearing Cases in the Industrial Tribunal6

The Industrial Tribunal follows a structured process to resolve disputes referred by the
government.

Filing the Case

• The Central or State Government refers disputes to the tribunal through a written order.

• Parties involved (workers, employers, or unions) submit a petition with details of the
dispute.

• Supporting documents and evidence must be provided.

Tribunal Proceedings

• The tribunal functions like a civil court and follows the Code of Civil Procedure.

• It can summon witnesses, examine evidence, and hear arguments from both sides.

• Lawyers or representatives may present cases for the parties.

Interim Relief (if needed)

• The tribunal may grant temporary relief to maintain stability during the case (e.g.,
preventing layoffs or wage cuts).

Final Decision (Award)

• After hearings, the tribunal issues a binding decision (award), which has the force of
law.

• The award must be implemented by the parties involved.

Appeal Process

• If a party is dissatisfied, they can challenge the tribunal’s decision in the High Court or
Supreme Court under judicial review.

6
Sec – 10 Industrial Dispute Act,1947
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CASE LAWS

Indian Bank Ltd. v. The Industrial Tribunal and Ors. (1963)7

The case Indian Bank Ltd. v. The Industrial Tribunal and Ors. (1963) is a significant one
that came before the Madras High Court. Here's a summary of the key aspects based on the
provided search results:

Background:

• The dispute arose from the demand for bonus by the workmen of Indian Bank Ltd. for
the year 1957.
• When the management and employees couldn't agree, the Central Government, upon
their request, referred the question of the quantum of bonus payable to the Industrial
Tribunal at Madras for adjudication.
• Subsequently, the Central Government also constituted a National Tribunal to
adjudicate on the general principles and conditions of bonus payable to bank
employees across the country.

Issue:

• The main point of contention raised by the Indian Bank before the Industrial Tribunal
was that the Tribunal lacked jurisdiction to proceed with the adjudication regarding
the 1957 bonus because the issue of bonus principles was then before the National
Tribunal. The bank argued that deciding the quantum of bonus for one bank for a
specific year would encroach upon the National Tribunal's mandate to set general
principles.8

7
Indian Bank Ltd. v. The Industrial Tribunal and Ors. (1963)

8
[Link]
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Judgment of the Madras High Court (by Ramachandra Iyer, C.J. and Venkataraman,
J.):

• The High Court considered the preliminary objection raised by the Indian Bank.
• It examined Section 10(6) of the Industrial Disputes Act, which states that when a
reference is made to a National Tribunal, no Labour Court or Tribunal shall have
jurisdiction to adjudicate upon any matter which is under adjudication by the National
Tribunal.
• The High Court agreed with the Indian Bank's contention that the question before the
Industrial Tribunal (quantum of bonus for 1957 for Indian Bank employees) was
fundamentally linked to the broader principles of bonus being considered by the
National Tribunal.
• The Court noted that the Industrial Tribunal itself had conceded that deciding on the
payment of bonus in this specific case would touch upon what the National Tribunal
was required to decide on a nationwide level.
• Ultimately, the Madras High Court allowed the Writ Appeal against the single judge's
decision and issued a writ of prohibition, restraining the Industrial Tribunal at Madras
from proceeding with the reference concerning the bonus payable by the Indian Bank
for the year 1957. The court held that the Industrial Tribunal clearly erred in claiming
jurisdiction when it would inevitably have to decide the same question pending before
the National Tribunal.

In essence, the Madras High Court held that once the Central Government referred the
general principles of bonus for the banking industry to a National Tribunal, the Industrial
Tribunal dealing with a specific bank's bonus for a particular year lost jurisdiction on that
matter to avoid conflicting decisions on the underlying principles.
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CONCLUSION

The National Industrial Tribunal is an important part of how India solves big industrial
disputes, especially those that involve more than one state or are important to the whole
country. It was set up under Section 7B of the Industrial Disputes Act, 1947, and helps handle
complicated disputes in a fair and legal way. By acting as a central body to settle such issues,
the Tribunal helps maintain peace in industries, ensures consistent legal decisions, and supports
good relations between workers and employers across India. However, how well it works
depends on how quickly the Central Government sends cases to it, how smoothly the process
runs, and how well its decisions are followed. With new labour laws being introduced under
the Industrial Relations Code, 2020, there is a chance to make the Tribunal even better—by
giving it more freedom, speeding up its work, and clearly defining its role. If these
improvements are made, the National Industrial Tribunal will continue to be a key part of
ensuring fairness in the world of work.
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BIBLIOGRAPHY

Online sources

• [Link]
[Link]
• [Link]
• [Link]
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Act

• Industrial Dispute Act,1947

Books

• Kaul, B. T. (2007). DISCIPLINARY ACTION AND POWERS OF INDUSTRIAL ADJUDICATOR: A

CRITIQUE OF JUDICIAL INTERVENTION. Journal of the Indian Law Institute, 49(3), 309-364.

Case laws

• Indian Bank Ltd. v. The Industrial Tribunal and Ors. (1963)