November 7, 2024
DU LLBLabour LawSemester 4

J.H. Jadhav v. Forbes Gokak Ltd (2005) 3 SCC 202

Case Summary

Citation
Keywords
Facts
Issues
Contentions
Law Points
Judgement
Ratio Decidendi & Case Authority

Full Case Details


RUMA PAL, J. – 2. The appellant was employed by the respondent. He claimed promotion
as a clerk. When this was not granted, the appellant raised an industrial dispute. The question
whether the appellant was justified in his prayer for promotion with effect from the date that
his juniors were promoted was referred to the Industrial Tribunal by the State Government. In
their written statement before the Tribunal the respondent denied the appellant’s claim for
promotion on merits. In addition, it was contended by the respondent that the individual
dispute raised by the appellant was not an industrial dispute within the meaning of Section
2(k) of the Industrial Disputes Act, 1947, as the workman was neither supported by a
substantial number of workmen nor by a majority union. The appellant claims that his cause
was espoused by the Gokak Mills Staff Union.

  1. Before the Tribunal, apart from examining himself, the General Secretary of the Union
    was examined as a witness in support of the appellant’s claim. The General Secretary
    affirmed that the appellant was a member of the Union and that his cause has been espoused
    by the Union. Documents including letters written by the Union to the Deputy Labour
    Commissioner as well as the objection filed by the Union before the Conciliation Officer were
    adduced in evidence. The Tribunal came to the conclusion that in view of the evidence given
    by the General Secretary and the documents produced, it was clear that the appellant’s cause
    had been espoused by the Union which was one of the unions of the respondent employer. On
    the merits, the Tribunal accepted the appellant’s contentions that employees who were junior
    to him had been promoted as clerks. It noted that no record had been produced by the
    respondent to show that the management had taken into account the appellant’s production
    records, efficiency, attendance or behaviour while denying him promotion. The Tribunal
    concluded that the act of the respondent in denying promotion to the appellant amounted to
    unfair labour practice. An award was passed in favour of the appellant and the respondent was
    directed to promote the appellant as a clerk from the date his juniors were promoted and to
    give him all consequential benefits.
  2. The award of the Industrial Tribunal was challenged by the respondent by way of a writ
    petition. A Single Judge dismissed the writ petition. The respondent being aggrieved filed a
    writ appeal before the appellate court. The appellate court construed Section 2(k) of the
    Industrial Disputes Act, 1947 and came to the conclusion that an individual dispute is not an
    industrial dispute unless it directly and substantially affects the interest of other workmen.
    Secondly, it was held that an individual dispute should be taken up by a union which had
    representative character or by a substantial number of employees, before it would be
    converted into an industrial dispute neither of which according to the appellate court, had
    happened in the present case. It was held that there was nothing on record to show that the
    appellant was a member of the Union or that the dispute had been espoused by the Union by
    passing any resolution in that regard.
  3. The definition of “industrial dispute” in Section 2(k) of the Act shows that an industrial
    dispute means any dispute or difference between employers and employers, or between
    employers and workmen, or between workmen and workmen, which is connected with the
    113
    employment or non-employment or the terms of the employment or with the conditions of
    labour, of any person. The definition has been the subject-matter of several decisions of this
    Court and the law is well settled. The locus classicus is the decision in Workmen v.
    Dharampal Premchand (Saughandhi) [AIR 1966 SC 182] where it was held that for the
    purposes of Section 2(k) it must be shown that: (1) The dispute is connected with the
    employment or non-employment of a workman. (2) The dispute between a single workman
    and his employer was sponsored or espoused by the union of workmen or by a number of
    workmen. The phrase “the union” merely indicates the union to which the employee belongs
    even though it may be a union of a minority of the workmen. (3) The establishment had no
    union of its own and some of the employees had joined the union of another establishment
    belonging to the same industry. In such a case it would be open to that union to take up the
    cause of the workmen if it is sufficiently representative of those workmen, despite the fact
    that such union was not exclusively of the workmen working in the establishment concerned.
    An illustration of what had been anticipated in Dharampal case is to be found in Workmen v.
    Indian Express (P) Ltd. [(1969) 1 SCC 228] where an “outside” union was held to be
    sufficiently representative to espouse the cause.
  4. In the present case, it was not questioned that the appellant was a member of the Gokak
    Mills Staff Union. Nor was any issue raised that the Union was not of the respondent
    establishment. The objection as noted in the issues framed by the Industrial Tribunal was that
    the Union was not the majority union. Given the decision in Dharampal case the objection
    was rightly rejected by the Tribunal and wrongly accepted by the High Court.
  5. As far as espousal is concerned there is no particular form prescribed to effect such
    espousal. Doubtless, the union must normally express itself in the form of a resolution which
    should be proved if it is in issue. However, proof of support by the union may also be
    available aliunde. It would depend upon the facts of each case. The Tribunal had addressed its
    mind to the question, appreciated the evidence both oral and documentary and found that the
    Union had espoused the appellant’s cause.
  6. The Division Bench misapplied the principles of judicial review under Article 226 in
    interfering with the decision. It was not a question of there being no evidence of espousal
    before the Industrial Tribunal. There was evidence which was considered by the Tribunal in
    coming to the conclusion that the appellant’s cause had been espoused by the Union. The
    High Court should not have upset this finding without holding that the conclusion was
    irrational or perverse. The conclusion reached by the High Court is therefore unsustainable.
  7. For all these reasons the decision of the High Court cannot stand and must be set aside.
  8. Learned counsel appearing for the respondent then submitted that the matter may be
    remanded back to the Division Bench of the High Court as the Court had not considered the
    other arguments raised by the respondent while impugning the award of the Industrial
    Tribunal. It appears from the impugned decision that the only other ground raised by the
    respondent in the writ appeal was that the grievance of the appellant had been belatedly
    raised. We have found from the decision of the Industrial Tribunal that no such contention
    had been raised by the respondent before the Tribunal at all. We are not prepared to allow the
    respondent to raise the issue before the High Court.
    114
  9. The respondent finally submitted that pursuant to disciplinary proceedings initiated
    against the appellant in the meanwhile, the appellant had been dismissed from service and that
    the order of dismissal was the subject-matter of a separate industrial dispute. We are not
    concerned with the propriety of the order of dismissal except to the extent that the appellant
    cannot obviously be granted actual promotion today. Nevertheless, he would be entitled to the
    monetary benefits of promotion pursuant to the award of the Industrial Tribunal which is the
    subject-matter of these proceedings up to the date of his dismissal. Any further relief that the
    appellant may be entitled to must of necessity abide by the final disposal of the industrial
    dispute relating to the order of dismissal which is said to be pending.
  10. We therefore allow the appeal and set aside the decision of the High Court. The award
    of the Industrial Tribunal is confirmed subject to the modification that the promotion granted
    by the award will be given effect to notionally for the period as indicated by the award up to
    the date of the appellant’s dismissal from service. Reliefs in respect of the period subsequent
    to the order of dismissal shall be subject to the outcome of the pending industrial dispute
    relating to the termination of the appellant’s services. If the termination is ultimately upheld,
    the appellant will be entitled only to the reliefs granted by us today. If on the other hand the
    termination is set aside, the appellant will be entitled to promotion as granted by the award.

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