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Heard. This petition has been filed against the orders Annexure P-1 dated 3.11.2011 and Annexure P-2 dated 23.09.2009 passed by the Labour Court.
The appropriate Government has referred the matter for adjudication to the Labour Court u/s 10 of the Industrial Dispute Act that whether the termination of service of the petitioner was valid or not. That reference was dismissed by the Labour Court vide order dated 23.09.2009 on the ground that no person was present on behalf of the petitioner.
Petitioner filed an application for setting-aside the dismissal of reference. That was also rejected vide order Annexure P-1 dated 3.11.2011.
This Court in the case of Satendra Singh Gujar Vs. Bank of India, Gwalior and others, 2010(4) MPLJ, 292 has held that the Tribunal has no power to dismiss the reference in default and held as under:-
Sections 14 and 15 of the industrial Disputes Act, 1947, which are as under, prescribes that the Labour Court to decide the dispute referred for adjudication:
Duties of Courts - A Court shall inquire into the matters referred to it and report thereon to the appropriate Government ordinarily within a period of six months from the commencement of its inquiry.
Duties of Labour Courts, Tribunals and National Tribunals - Where an industrial dispute has been referred to a Labour Court, Tribunal or National Tribunal for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such industrial dispute or the further period extended under the second proviso to sub-section (2A) of section 10, submit its award to the appropriate Government,
The Central Government in exercise of powers conferred by Section 38 of the Industrial Disputes Act, 1947 has framed the Rules, namely. The Industrial Disputes Act (Central) Rules, 1957. Rule 10B (9) of the aforesaid Rules, which is as under, prescribes that the Labour Court may proceed with the reference ex-parte in absence of any party and decide the reference:
10B. Proceeding before the Labour
Court, Tribunal or National Tribunal
(1).....
(9) In case any party defaults or fails to appear at any stage the Labour Court, Tribunal or National Tribunal, as the case may be, may proceed with the reference ex-parte and decide the reference application in the absence of the defaulting party:
Provided that the Labour Court, Tribunal or National Tribunal, as the case may be, shall submit its award to the Central Government within one month from the date of arguments oral hearing or within the period mentioned in the order of reference whichever is earlier.
From the aforesaid Rule it is clear that it is obligatory on the part of the Labour Court to answer the reference after considering merits of the case. However, the Labour Court has no power to pass an award as ''no dispute award'' on the ground that one party did not appear before the Labour Court..
A Division Bench of this Court in the case of Sital Sukhiram Vs. Central Government Industrial Tribunal Cum Labour Court, Jabalpur and Others, has held that the Labour Court has no power to dismiss the reference in defaults. The relevant findings of the Division Bench are as under:
The main question for consideration is whether the Tribunal could, as it did in this case, accept an amicable settlement between the parties which "did not specify the manner in which the dispute have been settled" and make an award in terms of that settlement because "there now remains nothing for adjudication" by the tribunal so far as these five specific demands are concerned. We are clearly of opinion that the Tribunal could not act in that way without disregarding the provisions of the Act. The word "award" as defined in clause (b) of section 2 of the Act means "an interim or final determination of any industrial dispute or of any question relating thereto by any" Labour Court, Industrial Tribunal or National Industrial Tribunal and includes an arbitration award made u/s 10A". We think that the word "determination" used in the definition implies adjudication upon relevant material by the Labour Court or the Tribunal. So, it has been held that, once a reference has been made u/s 10 (1) of the Act, it cannot be rescinded or cancelled: State of Bihar v. Ganguli (1958) II JLJ 834 (SC). It cannot also be dismissed for default because that would amount to putting an end to the proceedings, otherwise than by adjudicating upon the dispute.
In this view of the matter, the orders passed by the Tribunal are contrary to law, however, because the petitioner was not present before the Labour Court on mentioned dates, hence, the petitioner is liable to pay cost. This petition is disposed of with the following directions:
The impugned orders Annexure P-1 dated 3.11.2011 and Annexure P-2 dated 23.09.2009 are hereby quashed, subject to payment of costs of Rs.1,000/-(Rupees One Thousand Only).
The matter is remanded back to the Tribunal to pass an award, on merit.
With the aforesaid directions, the writ petition stands disposed of.