OVERVIEW OF LABOUR LAWS AND AUTHORITIES

UNDER INDUSTRIAL DISPUTES ACT, 1947 & IRC

2020

1
INTRODUCTION

 The main object of the Industrial Disputes Act is the investigation and settlement of industrial disputes. For this
particular purpose, various authorities have been created under the Act.
 The adjudication of the industrial dispute has at the first instance been kept out of the jurisdiction of the civil
courts so that efforts may be made for the settlement of such dispute through some other agencies at the earliest.
 The industrial disputes are mainly settled through three different modes. They are – (i) conciliation (ii)
adjudication, and (iii) arbitration.
 Different authorities under the Act are works committee, conciliation officer, Board of conciliation, Court of
inquiry, Labour Court, Tribunals.

2
AUTHORITIES UNDER INDUSTRIAL DISPUTE ACT, 1947

 The Industrial Disputes Act, 1947 provides an elaborate and efficient machinery for the peaceful and amicable
settlement of the industrial disputes. They include:
1. Works Committees (Sec 3)  Bipartite body is comprised of employee and
2. Conciliation Officers (Sec 4) employer: WC
 Tripartite body is comprised of employee, employer
3. Board of Conciliation (Sec 5) and government.
4. Courts of Enquiry (Sec 6)  Adhoc: BOC, COI, NT and Permanent: WC, CO,
LC, IT
5. Labour Courts (Sec 7)
6. Tribunals (Sec 7A) 3 Tier system of adjudication
7. National Tribunals (Sec 7B)

3
WORKS COMMITTEE: SECTION 3, IDA, 1947 CONTINUED...
 Condition for Forming Works Committee:
 The industrial establishment in which one hundred or more workmen are employed or have been employed on any
day in the preceding twelve months should constitute the works committee.
 The appropriate Government by general or special order, order the employer to constitute a Works Committee in
the prescribed manner.
 Constitution of Works Committee:
 Works Committee must consist of representatives of employer and workmen engaged in the establishment. The
number of members in the committee should be fixed and not more than 20.
 The number of representatives of workmen on the committee shall not be less than the number of representatives
of the employer. The representatives of the workmen shall be chosen in the prescribed manner from among the
workmen engaged in the establishment and in consultation with their trade union, if any, registered under the
Indian Trade Unions Act, 1926 (16 of 1926).
 The Central Government or the equivalent authority holds the right to dissolve this committee if they feel it is not4
constituted as per the guidelines.
WORKS COMMITTEE: SECTION 3, IDA, 1947 CONTINUED...
 Duties of Works Committee:
 It shall be the duty of the works committee
• to take measures for securing and preserving amity and good relations between the employer and the workmen;
• to comment upon the matters of their common interest; and
• to endeavour, to compose any material difference of opinion in respect of such matter.

5
M/S NORTH BROOK JUTE CO. LTD. V. THEIR WORKMEN, AIR 1960
SC 879
 Background: A rationalisation scheme in the mills of the appellant companies was agreed to by the Works
Committee and a notice under S. 9A of the Industrial Disputes Act, 1947, was given to the Union of their
workmen. The workmen, however, objected to the introduction of the scheme and the dispute was referred by the
Government to the Tribunal on December 13, 1957. On December 16, the management of the companies put the
rationalisation scheme into operation, but the workmen refused to do the additional work placed on them by the
scheme. Later, the same day, the mills declared a lock-out. Work was, however, resumed a few days later as a
result of a settlement, and a dispute arose as to whether the workmen were entitled to the payment of wages for the
period during which the mills were closed.
 Held: It has to be noticed however that the workmen's representatives on the Works Committee do not represent
the workmen for all purposes, but only for the purpose of the functions of the Works Committee. Section 3(2) of
the Act sets out the functions of the Works Committee in these words:

“It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good
relations between the employer and workmen and, to that end to comment upon matters of their common interest
or concern and endeavor to compose any material difference of opinion in respect of such matters.” 6
SCOPE OF WORKS COMMITTEE: M/S NORTH BROOK JUTE CO.
LTD. V. THEIR WORKMEN, AIR 1960 SC 879

 The language used by the Legislature makes it clear that the Works Committee was not intended to supplant or
supersede the Unions for the purpose of collective bargaining ; they are not authorised to consider real or
substantial changes in the conditions of service; heir task is only to smooth away frictions that might rise between
the workmen and the management in day-to-day work. By no stretch of imagination can it be said that the duties
and functions of the Works Committee included the decision on such an important matter as the alteration in the
conditions of service by rationalisation. The fact that the 'workmen's representatives on the Works Committee
agreed to the introduction of the rationalisation scheme is therefore in no way binding on the workmen or their
Union.

7
CONCILIATION OFFICERS: SECTION 4, IDA, 1947

 Conciliation is a process by which discussion between the employers and the employees is kept going through the
participation of a conciliator. Conciliator plays a pivotal role in bringing round the parties involved in the disputes
and held in resolving difference by making the parties understand and appreciate the difficulties of each party
involved in the dispute in the Industrial field. As a mediator, his tactful handling of the situation sometimes saves
the situation from taking a serious turn.
 Section 4 of the Industrial Disputes Act, provides for Conciliation Officers. This Section corresponds to Section
43 of the IRC, 2020.
 According to this section, the appropriate Government is empowered to appoint, by notification in the Official
Gazette, such number of persons as it thinks fit, to be Conciliation Officers, charged with the duty of mediating in
and promoting the settlement of industrial disputes.
 According the sub-section (2), a Conciliation Officer may be appointed for a specified area or for specified
industries in a specified area or for one or more specified industries either permanently or for a limited period.
8
BOARD OF CONCILIATION: SECTION 5, IDA, 1947
 Where conciliation fails, board of conciliation takes over. The functions of the Board of Conciliation are the same as
those of the conciliation officers. The purpose of constituting boards of Conciliation is to bring about settlement of
individual disputes.
 Section 5 of the Act provides for the constitution of a Board of Conciliation and its powers and duties.
 A Board of Conciliation is a body of persons, which the appropriate Government may constitute by notification in the
Official Gazette for the purpose of promoting the settlement of an industrial dispute.
 It shall consist of a Chairman and two or four other members, as the appropriate Government may think fit. The
Chairman shall be an independent person and the other members shall be persons appointed in equal numbers to
represent the parties to the dispute and any person appointed to represent shall be appointed on the recommendation
of that party.
 But if any party fails to make recommendation aforesaid within the prescribed time, the appropriate Government
shall appoint such persons as it thinks fit to represent that party.
 Whether settlement reached or not, the Board must submit the report within two months of the date on which the
dispute was proposed to it. 9

 If no settlement has arrived, the Government may refer the dispute to the labour court, Industrial Tribunal or National
Tribunal.
COURT OF INQUIRY: SECTION 6, IDA, 1947

 Provisions for Court of Inquiry have been made in Section 6 of the Industrial Disputes Act, which lays down that:
 The Central Government or the State Government, as the case may be, can appoint a Court of Inquiry. Such
appointment is to be notified in the Official Gazette. After notification in Official Gazette, it attains a valid status.
Such Court of inquiry is meant to inquire into any matter appearing to be connected with or to an industrial
dispute.
 A Court may consist of one independent person or such number of independent person as the appropriate
Government may think fit.

10
LABOUR COURT: SECTION 7, IDA, 1947
 The appropriate Government may, by notification in the Official Gazette constitute one or more Labour Courts for
the adjudication of industrial disputes relating to any matter specified in the second schedule and for performing
such other functions as may be assigned to them under this Act. A Labour Court shall consist of one person only to
be appointed by the appropriate Government.
 The Labour Courts adjudicate the following disputes relating to matters specified in the second schedule:

1. The propriety or legality of an order passed by an employer under the standing order.
2. The application and interpretation of standing orders.
3. Discharge or dismissal of workmen including reinstatement of or grant of relief to workmen wrongfully
dismissed.
4. Withdrawal of any customary concession or privilege.
5. Illegality or otherwise of strike or lock-out. And
6. All matters other than those specified in the Third schedule. 11
TRIBUNALS: SECTION 7A, IDA, 1947

 The appropriate Government may be notification in the Official Gazette, constitute one or more tribunals for the
adjudication of industrial disputes relating to any matter, whether specified in the Second schedule or the Third
schedule.
 A Tribunal shall consist of one person only to be appointed by the appropriate Government. It shall discharge
judicial functions, though it is not a court.
 It is the duty of the Tribunal to adjudicate upon any industrial dispute. These Tribunals shall perform such other
functions as may be assigned to them under this Act.
 It is provided by Section 7-A (4) that the Appropriate Government, if it thinks fit, may appoint two persons as
assessors to advise the Tribunal in the proceedings before it. The Government is empowered under Section 7-A of
the Act of constitute a Tribunal for a limited time or for any particular case as the case may be.
 This Section corresponds to Section 44 of the IRC, 2020.

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JURISDICTION OF INDUSTRIAL TRIBUNALS:
 Section 7 (A)(l) of the Act deals with the jurisdiction of the industrial tribunal. Industrial tribunals have a wider
jurisdiction than a Labour Court. It has jurisdiction over any matter specified in Second or Third Schedule. The
following matters are specified under the Third schedule:
1. Wages, including the period and mode of payment.
2. Compensatory and other allowances.
3. Hours of work and rest intervals.
4. Leave with wages and holidays.
5. Bonus, Profit sharing. Provident Fund and gratuity.
6. Shift working otherwise than in accordance with standing orders.
7. Classification by grades.
8. Rules of discipline.
9. Nationalization. 13

10. Retrenchment of workmen and closure of establishment, and

NATIONAL TRIBUNALS: SECTION 7B, IDA, 1947

 The Central Government may by notification in the Official Gazette, constitute one or more National Tribunals for
the adjudication of industrial disputes which in the opinion of the Central Government, involve questions of
national importance or are of such a nature that industrial establishments situated in more than one state are likely
to be interested in, or affected by such disputes.
 A national tribunal shall consist of one person only to be appointed by the Central Government.
 This Section corresponds to Section 46 of the IRC, 2020: A National Industrial Tribunal shall consist of two
members to be appointed by the Central Government out of whom one shall be a Judicial Member and the other,
an Administrative Member.

14
DISQUALIFICATIONS FOR THE PRESIDING OFFICERS

 7C. Disqualifications for the presiding officers of Labour Courts, Tribunals and National Tribunals. —No person
shall be appointed to, or continue in, the office of the presiding officer of a Labour Court, Tribunal or National
Tribunal, if—
 (a) he is not an independent person; or
 (b) he has attained the age of sixty-five years.
 This Section corresponds to Section 46 of the IRC, 2020: Disqualifications for members of Tribunal and National
Industrial Tribunal.

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NOTICE OF CHANGE
 9A. Notice of change.—No employer, who proposes to effect any change in the conditions of service applicable
to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change,—
 (a) without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the
nature of the change proposed to be effected; or
 (b) within twenty-one days of giving such notice:
 There is a proviso to Section 9A which provides exceptions to the rule of giving 21 days’ notice in the following
situations:
i. Where the change is affected in pursuance of any settlement or award or
ii. Workmen governed under Civil Services Rules
 Corresponding provision in IRC 2020: Section 40

16
SCHEDULE IV: CONDITIONS OF SERVICE FOR CHANGE OF
WHICH NOTICE IS TO BE GIVEN
 1. Wages, including the period and mode of payment;
 2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen
under any law for the time being in force;
 3. Compensatory and other allowances;
 4. Hours of work and rest intervals;
 5. Leave with wages and holidays;
 6. Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders;
 7. Classification by grades;
 8. Withdrawal of any customary concession or privilege or change in usage;
 9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing
orders;
 10. Rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of
workmen; 17

 11. Any increases or reduction (other than casual) in the number of persons employed or to be employed in any
occupation or process or department or shift, [not occasioned by circumstances over which the employer has no control].
GRIEVANCE REDRESSAL MACHINERY
 9C. Setting up of Grievance Redressal Machinery.—(1) Every industrial establishment employing twenty or
more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of
individual grievances.
 (2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the
workmen.
 (3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among
the workmen alternatively on rotation basis every year.
 (4) The total number of members of the Grievance Redressal Committee shall not exceed more than six:
 Provided that there shall be, as far as practicable, one woman member if the Grievance Redressal Committee has
two members and in case the number of members are more than two, the number of women members may be
increased proportionately.
 (6) The Grievance Redressal Committee may complete its proceedings within thirty days on receipt of a written
application by or on behalf of the aggrieved party. 18

 Corresponding provision IRC: Section 4, clause (4) provides that the total number of members of the Grievance
Redressal Committee shall not exceed ten.
CONCLUSION

 The Industrial Disputes Act ensures peace and harmony among all the industrial establishments, and if any conflict
arises, the provisions in the Industrial Disputes Act helps in solving the issue in a systematic manner in which all
the parties are satisfied and every decision made is fair and just.
 Different authorities under the Act are works committee, conciliation officer, Board of conciliation, Court of
inquiry, Labour Court, Tribunals.

19
PROCEDURE, POWERS, AND DUTIES OF THE
AUTHORITIES
(SS.11-21 IDA 1947) (SS. 49- 61 IRC )

20
PROCEDURE AND POWER OF CONCILIATION OFFICERS,
BOARDS, COURTS AND TRIBUNALS: CHAPTER IV
11. Procedure and powers of conciliation officers, Boards, Courts and Tribunals.
11A. Powers of Labour Courts, Tribunals and National Tribunals to give appropriate relief in case of discharge or dismissal of
workmen. (Section 50, IRC)
12. Duties of conciliation officers.
13. Duties of Board.
14. Duties of Courts.
15. Duties of Labour Courts, Tribunals and National Tribunals.
16. Form of report or award.
17. Publication of reports and awards.
17A. Commencement of the award. (Section 55, IRC: Form and Commencement of Award)
17B. Payment of full wages to workman pending proceedings in higher courts. (Section 56, IRC)
18. Persons on whom settlements and awards are binding. (Section 57, IRC)
19. Period of operation of settlements and awards. 21

20. Commencement and conclusion of proceedings.

POWERS OF LABOUR COURTS, TRIBUNALS AND NATIONAL TRIBUNALS TO
GIVE APPROPRIATE RELIEF IN CASE OF DISCHARGE OR DISMISSAL OF
WORKMEN

 11A: Where an industrial dispute relating to the discharge or dismissal of a workman has been referred to a
Labour Court, Tribunal or National Tribunal for adjudication and, in the course of the adjudication proceedings,
the Labour Court, Tribunal or National Tribunal, as the case may be, is satisfied that the order of discharge or
dismissal was not justified, it may, by its award, set aside the order of discharge or dismissal and direct
reinstatement of the workman on such terms and conditions, if any, as it thinks fit, or give such other relief to the
workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of
the case may require:
 Provided that in any proceeding under this section the Labour Court, Tribunal or National Tribunal, as the case
may be, shall rely only on the materials on record and shall not take any fresh evidence in relation to the matter.
 Section 11A was added in 1971 through an amendment to incorporate the recommendation 119 of the
International Labour Organisation which provided that a worker aggrieved by the termination of his employment
should be entitled to appeal against the termination to a neutral empowered to examine the reasons given.
 Section 11A makes it obligatory for an employer to hold a proper domestic enquiry in which all material
22

evidence will have to be adduced.

THE WORKMEN OF M/S. FIRESTONE TYRE & RUBBER CO. OF
INDIA P. LTD. V. THE MANAGEMENT, AIR 1973 SC 1227

 Purpose of the Act (welfare legislation): The Act is a beneficial piece of legislation enacted in the interest of
employees. it is well settled that in construing the provisions of a welfare legislation, courts should adopt, what is
described as a beneficent rule of construction. If two constructions are reasonably possible to be placed on the
section, it follows that the construction which furthers the policy and object of the Act and is more, beneficial to
the employees has to be preferred. The interpretation must be liberal enough to achieve the legislative purpose.
 The expression ‘materials on record’ occurring in the proviso to s. 11A cannot be confined only to the materials
which were available at the domestic enquiry. On the other hand, the ‘materials on record’ in the proviso must be
held to refer to materials on record before the Tribunal. They take in:
1) the evidence taken by the management at the enquiry and the proceedings of the enquiry, or
2) the above evidence and in addition any further evidence led before the Tribunal, or
3) evidence placed before the Tribunal for the first time in support of the action taken by the employer as well as the
evidence adduced by the workmen contra.
23
CONTINUED...

 In Cooper Engineering Ltd. v. P.P. Mundhe AIR (1975) SC 1900 in which M/S Firestone Tyre & Rubber Co. of
India Pvt. Ltd. v. The Management & Ors., was followed, the court observed:
“We are, therefore, clearly of opinion that when a case of dismissal or discharge of an employee is referred for
industrial adjudication, the Labour Court should first decide as preliminary issue: whether the domestic enquiry
has violated the principles of natural justice. When there is no domestic enquiry or defective enquiry is admitted
by the employer, there will be no difficulty. But when the matter is in controversy between the parties, that
question must be decided as a preliminary issue. On that decision being pronounced, it will be for the
management to decide whether it will adduce any evidence before that Labour Court. If it chooses not to
adduce any evidence, it will not be thereafter permissible, in any proceeding to raise the issue.”
 This decision makes it clear that the ‘stage’ at which the employer has to ask for an opportunity to adduce
evidence for justifying its action is the stage when the Tribunal finally conies to the conclusion that domestic
enquiry was invalid.
24
HOMBE GOWDA EDUCATIONAL TRUST V. STATE OF KARNATAKA
(2006) 1 SCC 430
 Venkappa Gowda (lecturer)- Assaulted principal with chappal- Found guilty after disciplinary proceedings and
dismissed from service.
 Whether punishment of dismissal is just and proportionate?
 Held: The jurisdiction to interfere with the quantum of punishment could be exercised only when, inter alia, it is
found to be grossly disproportionate. This Court repeatedly has laid down the law that such interference at the
hands of the Tribunal should be inter alia on arriving at a finding that no reasonable person could inflict such
punishment. The Tribunal may furthermore exercise its jurisdiction when relevant facts are not taken into
consideration by the Management which would have direct bearing on the question of quantum of punishment.
 Assaulting a superior at a workplace amounts to an act of gross indiscipline. The Respondent is a teacher. Even
under grave provocation a teacher is not expected to abuse the head of the institution in a filthy language and
assault him with a chappal. Punishment of dismissal from services, therefore, cannot be said to be wholly
disproportionate so as shock one's conscience.
 A person, when dismissed from services, is put to a great hardship but that would not mean that a grave
misconduct should go unpunished. Although the doctrine of proportionality may be applicable in such matters,25
but a punishment of dismissal from service for such a misconduct cannot be said to be unheard of. Maintenance of
discipline of an institution is equally important.
J.K. SYNTHETICS LTD. V. K.P. AGRAWAL (2007) 2 SCC 433:
REINSTATEMENT AND BACK WAGES

 Where the power under Article 226 or section 11A of the Industrial Disputes Act (or any other similar provision) is
exercised by any Court to interfere with the punishment on the ground that it is excessive and the employee
deserves a lesser punishment, and a consequential direction is issued for reinstatement, the court is not holding
that the employer was in the wrong or that the dismissal was illegal and invalid. The court is merely exercising its
discretion to award a lesser punishment. Till such power is exercised, the dismissal is valid and in force. When the
punishment is reduced by a court as being excessive, there can be either a direction for reinstatement or a direction
for a nominal lump sum compensation.
 And if reinstatement is directed, it can be effective either prospectively from the date of such substitution of
punishment (in which event, there is no continuity of service) or retrospectively, from the date on which the
penalty of termination was imposed (in which event, there can be a consequential direction relating to continuity
of service).
 What requires to be noted in cases where finding of misconduct is affirmed and only the punishment is interfered
with (as contrasted from cases where termination is held to be illegal or void) is that there is no automatic
reinstatement; and if reinstatement is directed, it is not automatically with retrospective effect from the date of26
termination.
CONTINUED...

 Therefore, where reinstatement is a consequence of imposition of a lesser punishment, neither back-wages nor
continuity of service nor consequential benefits, follow as a natural or necessary consequence of such
reinstatement.
 In cases where the misconduct is held to be proved, and reinstatement is itself a consequential benefit arising from
imposition of a lesser punishment, award of back wages for the period when the employee has not worked, may
amount to rewarding the delinquent employee and punishing the employer for taking action for the misconduct
committed by the employee.
 That should be avoided. Similarly, in such cases, even where continuity of service is directed, it should only be for
purposes of pensionary/retirement benefits, and not for other benefits like increments, promotions etc.

27
SCOOTERS INDIA LIMITED V. LABOUR COURT, AIR 1989 SC 149
 The special leave petition is directed against the dismissal of Writ Petition filed by the petitioner in the High Court
of Allahabad against the award of the Labour Court in favour of the respondent employee.
 Substituting the order of termination of service of the respondent by an order of re-instatement together with 75%
back wages. The respondent too had filed a writ petition to challenge the Labour Court's award in so far as it
provided only for 75% back wages instead of full back wages. The High Court heard both the Writ Petitions
together and by a common order dismissed both the petitions.
 The Presiding Officer of the Labour Court held as follows :

Having regard to all these circumstances and the reasons given above I would hold that the order of termination
was not justified in the circumstances of this case. I would therefore set aside the order of termination of service
and direct that the workman shall be reinstated within one month of the award becoming enforceable. The
workman has unfortunately to blame himself for much of the bad blood which has developed between him and the
management and therefore his conduct, motivated by ideals which are not relevant has been far from satisfactory.
In so far as it was rough, bordering on rudeness and with highly exaggerated sense of his duties. In these
circumstances it will meet the ends of justice if back wages to the extent of 75% are allowed to the workman. 28I
would make my award accordingly but there shall be no order as costs.
CONTINUED...

 The High Court, while sustaining the award passed by the Labour Court, adverted to Section 11A of the Industrial
Disputes Act and pointed out that the section confers wide powers on the Labour Court to interfere with an order
of discharge or dismissal.
 Decision of the SC: It cannot therefore be said that the Labour Court had exercised its powers under Section
6(2A) of the Act in an arbitrary manner and not in a judicial manner.
 The Labour Court has taken the view that justice must be tempered with mercy and that the erring workman
should be given an opportunity to reform himself and prove to be a loyal and disciplined employee of the
petitioner Company. It cannot therefore be said that merely because the Labour Court had found the enquiry
to be fair and lawful and the findings not to be vitiated in any manner, it ought not to have interfered with
the order of termination of service passed against the respondent.
 For the aforesaid reasons, the Special Leave Petition fails and will stand dismissed. No order as to costs.

29
PUBLICATION AND COMMENCEMENT OF AWARDS
 17. Publication of reports and awards.—(1) Every report of a Board or Court together with any minute of
dissent recorded therewith, every arbitration award and every award of a Labour Court, Tribunal or National
Tribunal shall, within a period of thirty days from the date of its receipt by the appropriate Government, be
published in such manner as the appropriate Government thinks fit.
 17A. Commencement of the award.—(1) An award (including an arbitration award) shall become enforceable on
the expiry of thirty days from the date of its publication under section 17.

Provided that—
(a) if the appropriate Government is of opinion, in any case where the award has been given by a Labour Court or
Tribunal in relation to an industrial dispute to which it is a party; or
(b) if the Central Government is of opinion, in any case where the award has been given by a National Tribunal,
that it will be inexpedient on public grounds affecting national economy or social justice to give effect to the
whole or any part of the award, the appropriate Government, or as the case may be, the Central Government may,30
by notification in the Official Gazette, declare that the award shall not become enforceable on the expiry of the
said period of thirty days.
PERSONS ON WHOM SETTLEMENTS AND AWARDS ARE BINDING
18. Persons on whom settlements and awards are binding.—(1) A settlement arrived at by agreement between the employer
and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement.
(2) Subject to the provisions of sub-section (3), an arbitration award which has become enforceable shall be binding on the
parties to the agreement who referred the dispute to arbitration.
(3) A settlement arrived at in the course of conciliation proceedings under this Act [or an arbitration award in a case where a
notification has been issued under sub-section (3A) of section 10A] or an award of a Labour Court, Tribunal or National Tribunal
which has become enforceable shall be binding on—
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, arbitrator, Labour
Court, Tribunal or National Tribunal, as the case may be, records the opinion that they were so summoned without proper
cause;
(c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the
establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the
31
establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and
all persons who subsequently become employed in that establishment or part.
SIRSILK LTD. V. GOVT. OF A.P., AIR 1964 SC 160
 [...The only way in our view to resolve the possible conflict which would arise between a settlement which is
binding under s. 18(1) and an award which may become binding under s. 18(3) on publication is to withhold the
publication of the award once the Government has been informed jointly by the parties that a settlement binding
under s. 18(1) has been arrived at. It is true that s. 17(1) is mandatory and ordinarily the Government has to
publish an award sent to it by the tribunal; but where a situation like the one in the present cases arises which may
lead to a conflict between a settlement under s. 18(1) and an award binding under s. 18(3) on publication, the only
solution is to withhold the award from publication. This would not in our opinion in any way affect the
mandatory nature of the provision in s. 17(1), for the Government would ordinarily have to publish the award.]
(para 6)
 Remington Rand of India Ltd. v. The Workmen, AIR 1968 SC: [...Section 17(1) makes it obligatory on the
Government to publish the award. The limit of time has been fixed as showing that the publication of the award
ought not to be held up. But the fixation of the period of 30 days mentioned therein does not mean that the
publication beyond that time will render the award invalid. What was said in the earlier passage from the
judgment in The Sirsilk Ltd. v. Government of Andhra Pradesh merely shows that it was not open to Government
to withhold publication but this Court never meant to lay down that the period of time fixed for publication was32
mandatory.] (para 6)
PAYMENT OF FULL WAGES TO WORKMAN PENDING
PROCEEDINGS IN HIGHER COURTS
 17B. Payment of full wages to workman pending proceedings in higher courts.—Where in any case, a Labour
Court, Tribunal or National Tribunal by its award directs reinstatement of any workman and the employer prefers
any proceedings against such award in a High Court or the Supreme Court, the employer shall be liable to pay
such workman, during the period of pendency of such proceedings in the High Court or the Supreme Court, full
wages last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if the
workman had not been employed in any establishment during such period and an affidavit by such workman had
been filed to that effect in such Court:
 Provided that where it is proved to the satisfaction of the High Court or the Supreme Court that such workman had
been employed and had been receiving adequate remuneration during any such period or part thereof, the Court
shall order that no wages shall be payable under this section for such period or part, as the case may be.
 Pre- requirements of invoking Section 17B:
i. The Labour Court should have directed reinstatement of the workman.
ii. The employer should have preferred proceedings against such award in the High Court or Supreme Court. 33

iii. That workman should not have been employed in any establishment during such period.
"FULL WAGES LAST DRAWN" CAN MEAN AS:
I. Wages only at the rate last drawn and not at the same rate at which the wages are being paid to the
workmen who are actually working. Daladdi Cooperative Agriculture Service Society Ltd. v. Gurcharan Singh,
(1993 (5) Serv LR 719 (P&H)).
II. Wages drawn on the date of termination of the services plus the yearly increment and the Dearness
Allowance to be worked out till the date of the award. Vishveswaraya Iron and Steel Ltd. v. M. Chandrappa,
(1994 (84) FJR 46) (Kant) and Kirtiben B. Amin v. Mafatlal Apparels, (1995 (2) Guj LR 804)).
III. Full wages which the workman was entitled to draw in pursuance of the award and the implementation of
which is suspended during the pendency of the proceedings, Carona Sahu Company Ltd. v. A.K. Munakhan,
(1995 (70) Fac LR 25 (Bom)), Macneil and Magor Ltd. v. 1st Additional Labour Court, (1995 (1) Lab LN 1014
(Mad)) and P. Channaiah v. Dy. Ex. Eng. 1996 (2) Lab L J 240) (AP).
 The first construction gives to the words "full wages last drawn" their plain and material meaning. The second as
well as the third constructions read something more than their plain and material meaning in those words. In
substance these constructions read the words "full wages last draw as "full wages which would have been drawn".
34
 Such an extended meaning to the words "full wages last drawn" does not find support in the language of Section
17B. Nor can this extended meaning be based on the object underlying the enactment of Section 17B.
DENA BANK V. KIRTIKUMAR T. PATEL, AIR 1998 SC 511: WAGES
LAST DRAWN

“The Supreme Court observed that the words “full wages last drawn” cannot be read as “full wages which would
have been drawn”.
The object underlying the provision is to relieve to a certain extent the hardship that is caused to the workman due to
delay in the implementation of the award. The payment which is required to be made by the employer to the
workman is in the nature of subsistence allowance which would not be refundable or recoverable from the workman
even if the award is set aside by the High Court or Supreme Court.
Since the payment is of such a character Parliament thought it proper to limit it to the extent of the wages which
were drawn by the workman when he was in service and when his services were terminated and therefore used the
words "full wages last drawn".
To read these words to mean wages which would have been drawn by the workman if he had continued in service if
the order terminating his services not been passed. The provision contained in 17B cannot be construed as casting
such a burden on the employer. The words “full wages last drawn” must be given their plain and material meaning
and not be given the extended meaning.” [Para 19] 35
REGIONAL AUTHORITY, DENA BANK VS GHANSHYAM AIR 2001
SC 2270

 Background: The respondent who was engaged as a personal driver by the Regional Manager of the Dena Bank
at Lucknow-the appellant, claimed to be a workman of the Dena Bank. At the end of the tenure of the incumbent
Regional Manager of Dena Bank at Lucknow, the services of the respondent were terminated with effect from
August 1990. He raised an industrial dispute under the Industrial Disputes Act, 1947 with regard to his
retrenchment.
 Eventually, on May 8, 1996, the Labour Court passed an award holding that the respondent was a driver of the
Dena Bank; termination of his service was bad in law and ordered his reinstatement with back wages.
 The High Court passed the following order:
"Sri Y.S.Lohit appearing on behalf of the apposite party no. 1 prays for and is allowed three weeks time for filing
counter affidavit. Issue notice to the opposite parties nos.2 and 3. In the meantime, Award of the Tribunal shall
remain stayed provided petitioner is reinstated in service and is paid his salary regularly in accordance with law"
 Issue: Whether the order of High Court directing payment of regular salary payable on reinstatement as on the
date of the order to the respondent, which is over and above full wages last drawn occurring in Section 17B of the36
Act, is sustainable?
ARGUMENTS BY BOTH THE PARTIES

 The learned senior counsel appearing for the appellant, has contended that under Section 17B of the Act the
respondent is entitled to the wages last drawn as interpreted by this Court in Dena Bank vs Kiritikumar T. Patel
and, therefore the High Court was in error in directing payment of regular wages to the respondent. He invited our
attention to the fact that pay last drawn by the respondent before termination of the services was Rs.900/- which
was being paid as per Section 17B of the Act pending further proceedings in the High Court and, therefore, the
order under challenge deserves to be set aside.
 The learned counsel appearing for the respondent, has submitted that Section 17B of the Act ensures that the
minimum amount mentioned therein is paid to the workman during pendency of the proceedings in the High Court
or the Supreme Court but it does not restrict the powers of the High Court in passing appropriate orders counsel,
the High Court stayed the award subject to the appellant reinstating the respondent and paying him salary
regularly in accordance with law and that order was modified on February 17, 1997 which entitles him to receive
full salary which is not contrary to Section 17B, as such he is entitled to full salary under the orders of the High
Court.
37
HELD

i. The import of Section 17B admits of no doubt that Parliament intended that the workman should get the last
drawn wages from, the date of the award till the challenge to the award is finally decided which is in accord with
the Statement of the objects and reasons of the Industrial Disputes (Amendment) Act, 1982 by which Section 17B
was inserted in the Act.
ii. Section 17B does not preclude the High Courts or this Court from granting better Benefits, more just and
equitable on the facts of a case than contemplated by the provision to a workman.
iii. It must, however, be pointed out that while passing an interlocutory order the interests of the employer should not
be lost sight of. Even though the amount paid by the employer under Section 17-B to the workman cannot be
directed to be refunded in the event he loses the case in the writ petition, any amount over and above the sum
payable under the said provision, has to be refunded by him. It will, therefore, be in the interests of justice to
ensure, if the facts of the case so justify, that payment of any amounts over and above the amount payable
under Section 17-B to him, is ordered to be paid on such terms and conditions as would enable the employer to
recover the same.
38