Section 4: Conciliation Officer

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1 SECTION 4: CONCILIATION

OFFICER
• The appropriate Government may by
notification in the Official Gazette, appoint
Conciliation Officers. These officers are charged
with the duty of mediating in and promoting the
settlement of industrial dispute.
• The appropriate govt. may appoint more than
one conciliation officer as it thinks fit.
2

• The appointment may be either permanently or


for a fixed period.
• A conciliation officer can be appointed for a
specified area or for one or more specified area.
3 SEC 5: BOARD OF
CONCILIATION
• It aims at bringing the two parties to sit together and
thrash out their differences and to find out ways and
means to settle them.
• The appropriate govt. May constitute a Board of
Conciliation.
• The object is promotion of settlement of an Industrial
Dispute.
• A Board of Conciliation consist of a Chairman and two or
four other members as appropriate government thinks fit.
4

• The chairman shall be an independent person


and other members shall be persons appointed
in equal numbers to represent the parties to
the dispute.
• If a party fails to appoint a person to represent
it, then the Central Govt. May appoint a person
to represent the party.
5

• A Board having the prescribed quorum may act


even though its Chairman or any of its
members is absent.
• The Chairman must be an “independent
person” which means a person unconnected
with the industrial dispute or with the industry
affected by such dispute.
6

• The notice to the employer shall be sent to him personally


or if the employer is an incorporated company, then to
the agent, manager or other principal officer.
• The notice to the workmen shall be sent-
• (1) in case of workmen who are members of Trade Union,
the President of Trade Union,
• (2) in case of workmen who are not members of Trade
Union, any one of the five representatives of workmen
who have attested the application made under Rule 3 of
Industrial Disputes (Central) Rules Act, 1957.
7

.
• In this case, a copy shall also be sent to the
employer who shall display copies of this notice
in a conspicuous manner at the entrance of
premises.
8 SEC 6: COURT OF INQUIRY

• If any matter is referred to a Court by the


Appropriate Govt., it shall inquire and make a
report ordinarily within a period of six months from
the commencement of inquiry.
• The Court of Inquiry shall not inquire into industrial
dispute itself.
• Sec 6(2) says that the Court shall consist of one
independent person or such number of persons as
appropriate govt. Thinks fit.
9

• Where the Court consists of two or more


members the appropriate govt. shall appoint
one to be a chairman.
• The Court may function if there is a quorum
even in the absence of chairman.
• During the pendency of any proceedings before
the Court of Inquiry the following acts remains
unaffected-
10

• (i) the right of a workman to go on strike,


• (ii) the right of an employer to lockout
• (iii) right of the employer to dismiss or to
punish the workmen.
11 SEC 7: LABOUR COURT

• Labour Courts.- (1) 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.
• The functions of Labour Court are-
• 1. adjudication of industrial dispute relating to matters
specified in the Second Schedule.
• Performing such other functions as may be assigned to them
under this Act.
12 MATTERS SPECIFIED IN
SECOND SCHEDULE
• The propriety or legality of any order passed by an
employer under the Standing Orders Act,
• The application and interpretation of Standing Orders,
• Discharge, dismissal of workmen including reinstatement
of, or grant of, or relied to, workmen wrongfully dismissed,
• Withdrawal of any customary concession or privilege,
• Illegality or otherwise strike or lockout,
• All matters other than those specified in Third Schedule.
13

• (2) A Labour Court shall consist of one person


only to be appointed by the appropriate
Government
• 3) A person shall not be qualified for
appointment as the presiding officer of a
Labour Court, unless–
• (a) he is, or has been, a Judge of a High Court;
or
14

• (b) he has, for a period of not less than three


years, been a District Judge or an Additional
District Judge; or
• (d) he has held any judicial office in India for
not less than seven years; or
• (e)] he has been the presiding officer of a
Labour Court constituted under any Provincial
Act or State Act for not less than five years
15 SECTION 7 A: TRIBUNALS

• In J.K. Iron and Steel Co., Kanpur v. Iron and Steel


Majdoor Union AIR 1956 SC 231, the supreme court
has commented on the status of tribunals as “they are
invested with many trappings of Courts but do not have
the same status of courts. These tribunals need not
follow the strict technicalities of law in adjudication of
Industrial Disputes.”
• The power to constitute Industrial Tribunal is conferred
upon Appropriate Government
• More than one tribunal may be constituted.
16

• The Tribunal shall consist of one person only, who shall be


appointed by the State Government.
• Any person having one of the following qualifications may be
appointed as the presiding officer of the Industrial Tribunal,
namely;
• (a) if he is, or has been, a judge of High Court,
• (b) if he has for a period of not less than three years, been a
District Judge or Additional District Judge.
• It is provided in 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.
17 POWERS OF INDUSTRIAL
TRIBUNALS
• The tribunal is a quasi judicial body. A tribunal
must serve notice upon parties of the reference
by name and any award made without serving
such notices in fundamentally wrong.
• It could make a suitable award
18 SECTION 7-B : NATIONAL
TRIBUNAL
• Unlike the other authorities under the Act, the
National Tribunal can only be constituted by the
Central Govt. The power is to be exercised by
issuing of notification in the Official Gazette.
• The Central Govt. May constitute one or more
tribunals.
19

• National Industrial Tribunals are constituted for


the adjudication of industrial dispute which in
the opinion of Central Govt.
• (a) Involves a question of national importance
• (b) or are of such nature that the industrial
establishments situated in more than one State
are likely to be interested in or affected by such
dispute.
20

• It is the sole discretion of the Central Govt. To


decide that the industrial dispute involves a
question of national importance or industrial
establishments situated in more than one state are
affected by such dispute.
• (2) National Tribunal consists of one person to be
appointed by the Central Govt.
• (3) A person shall be a judge of high court for being
appointed as a presiding officer of National Tribunal.
21

• (4) The Central Govt. If it thinks fit may appoint


two persons as advisors for the proceedings
before it.
7C. DISQUALIFICATIONS FOR THE
PRESIDING OFFICERS OF LABOUR COURTS,
TRIBUNALS AND NATIONAL TRIBUNALS.-
22

• 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.
23

• Bharat bank of India Ltd. v. their


employees, the SC held that the reconstitution
of the Tribunal after the occurrence of a
vacancy in the office of the Chairman or
member is necessary under the Act.
24 SECTION 8: FILLING OF
VACANCIES
• If, for any reason a vacancy (other than a temporary
absence) occurs in the office of the presiding officer of a
Labour Court, Tribunal or National Tribunal or in the office of
the Chairman or any other member of a Board or Court,
then, in the case of a National Tribunal, the Central
Government and in any other case
• the Appropriate Government, shall appoint another person in
accordance with the provisions of this Act to fill the vacancy,
and the proceeding may be continued before the Labour
Court, Tribunal, National Tribunal, Board or Court, as the case
may be, from the stage at which the vacancy is filled.
25 SECTION 9: FINALITY OF
ORDERS CONSTITUTING
BOARDS, ETC.-
• 1) No order of the Appropriate Government or
of the Central Government appointing any
person as the Chairman or any other member
of a Board or a Court or as the presiding officer
of a Labour Court, Tribunal or National Tribunal
shall be called in question in any manner; and
no act or proceeding before any Board or Court
shall be called in question in any manner on the
ground merely of the existence of any vacancy
in, or defect in the constitution of, such Board
or Court.
26 9A. NOTICE OF CHANGE

• No employer, who purposes 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 notice workman likely to be
affected by such change in the prescribed manner of
the nature of the change proposed to be effected; or
• (b) within twenty-one days of giving such notice:
9C. SETTING UP OF GRIEVANCE SETTLEMENT
AUTHORITIES AND REFERENCE OF CERTAIN
27 INDIVIDUAL DISPUTES TO SUCH AUTHORITIES

• (1) The employer in relation to every industrial


establishment in which fifty or more workmen are
employed or have been employed on any day in the
preceding twelve months, shall provide for, in accordance
with the rules made in that behalf under this Act, a
Grievance Settlement Authority for the settlement of
industrial disputes connected with an individual workman
employed in the establishment.
• The Grievance Settlement Authority referred to in sub-
section (1) shall follow such procedure and complete its
proceedings within such period as may be prescribed.
28 10. REFERENCE OF DISPUTES
TO BOARDS, COURTS OR
TRIBUNALS
• 1) Where the appropriate Government is of opinion
that any industrial dispute exists or is
apprehended, it may at any time, by order in
writing,-
• (a) refer the dispute to a Board for promoting a
settlement thereof; or
• (b) refer any matter appearing to be connected
with or relevant to the dispute, to a Court for
inquiry; or
29

• (c) refer the dispute or any matter appearing to


be connected with, or relevant to, the dispute,
if it relates to any matter specified in the
Second Schedule, to a Labour Court for
adjudication; or (d) refer the dispute or any
matter appearing to be connected with, or
relevant to, the dispute, whether it relates to
any matter specified in the Second Schedule or
the Third Schedule, to a Tribunal for
adjudication
30

• Provided that where the dispute relates to any


matter specified in the Third Schedule and is
not likely to affect more than one hundred
workmen, the appropriate Government may, if
it so thinks fit, make the reference to a Labour
Court under Clause (c);
31

• The SC has held in Minerva Mills case AIR 1953


SC 505, that the power under s. 10(1) read with
section 7 of the Act includes power to modify
the notification and withdraw an industrial
dispute from a tribunal
32 EXCLUSION OF CIVIL COURT’S
JURISDICTION
• It is well settled position of law that the jurisdiction of the Civil
Court to try a suit of a civil nature is taken to be there unless
statutorily it has been taken away either expressly or by
necessary implication.
• The Industrial Disputes Act, 1947 is a self contained code
providing for settlement of industrial disputes by special
forums.
• When such special forums are provided in the Act itself for
adjudication of disputes arising under the Act, the jurisdiction
of civil court to try Industrial Disputes is impliedly taken away.
33 DELAY IN RAISING INDUSTRIAL
DISPUTE
• Legislature in its wisdom has not mentioned
any limitation about raising of industrial
disputes.
• Mere delay in raising an industrial dispute does
not disentitle a workmen from raising that
dispute.
• Sufficient cause needs to be proved by the
workmen.
34

• In Indian Iron & Steel Co. Ltd. v. Prahalad


Singh (2001) 1 SCC 424, where an industrial
dispute was raised after 13 long years of the
termination of service and no reasonable
explanation was given for delay, it was held
that the decision of the Industrial Tribunal to
provide no relief was proper
35

PROCEDURE, POWERS
AND DUTIES OF
AUTHORITIES
Section 11-20
SECTION 11: PROCEDURE AND POWERS OF
CONCILIATION OFFICERS, BOARDS,
36 COURTS AND TRIBUNALS

• Subject to any rules made in this behalf, an Arbitrator, a


Board, Court, Labour Court, Tribunal or National Tribunal has
to follow such procedure as the arbitrator or other
authority concerned may think fit.
• A conciliation officer or a member of the Board or Court or the
presiding officer of a Labour Court, Tribunal or National
Tribunal may for the purpose of inquiry into any dispute may
enter the premises occupied by any establishment to
which the dispute relates.
• He has to give a reasonable notice before exercising that
power.
37 POWERS (SECTION 11)

• Every Board, Court, Labour Court, Tribunal and National Tribunal]


shall have the same powers as are vested in a Civil Court under
the Code of Civil Procedure, 1908 (1908), when trying a suit, in
respect of the following matters, namely:--
• (a) enforcing the attendance of any person and examining
him on oath;
• (b) compelling the production of documents and material
objects;
• (c) issuing commissions for the examination of witnesses;
• (d) in respect of such other matters as may be prescribed;
38

• A conciliation officer may enforce the attendance of any


person for the purpose of examination of such person or call
for and inspect any document which he has ground for
considering to be relevant to the industrial dispute or to be
necessary for the purpose of verifying the implementation of
any award or carrying out any other duty imposed on him
under this Act, and for the aforesaid purposes, the conciliation
officer shall have the same powers as are vested in a
Civil Court under the Code of Civil Procedure, 1908 in
respect of enforcing the attendance of any person and
examining him or of compelling the production of documents.
39

• A Court, Labour Court, Tribunal or National


Tribunal may, if it so thinks fit, appoint one or
more persons having special knowledge of the
matter under consideration as assessor or
assessors to advise it in the proceeding before
it.
• All conciliation officers, members of a Board or
Court and the presiding officers of a Labour
Court, Tribunal or National Tribunal shall be
deemed to be public servants within the
meaning of section 21 of the Indian Penal Code
40

• Subject to any rules made under this Act, the


costs of, and incidental to, any proceeding
before a Labour Court, Tribunal or National
Tribunal shall be in the discretion of that Labour
Court.
SECTION 11-A: POWERS OF LABOUR COURTS,
TRIBUNALS AND NATIONAL TRIBUNALS TO
41 GIVE APPROPRIATE RELIEF IN CASE OF
DISCHARGE OR DISMISSAL OF WORKMEN.
• 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,
• (a) 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,
• (b) 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:
42

• Rama Kant Mishra v. State of U.P., the SC converted


the punishment of dismissal into one of withholding of two
increments.
• The court said that the management has not shown that
there was any blameworthy conduct on the part of the
employee.
• Baldev Singh v. Presiding Officer, Labour Court, the
labour court found that the punishment for dismissal was
harsh, and directed reinstatement but without back wages.
• The SC upheld the conclusion.
43 12. DUTIES OF CONCILIATION
OFFICERS.-
• (1) Where any industrial dispute exists or is apprehended,
the conciliation officer may, or where the dispute relates to
a public utility service shall hold conciliation proceedings.
• (2) The conciliation officer shall, for the purpose of bringing
about a settlement of the dispute, without delay,
investigate the dispute and all matters affecting the
merits and the right settlement thereof and may do all
such things as he thinks fit for the purpose of inducing the
parties to come to a fair and amicable settlement of
the dispute.
44

• (3) the conciliation officer shall send a report thereof to


the appropriate Government or an officer authorized
together with a memorandum of the settlement
signed by the parties to the dispute.
• If no such settlement is arrived at, the conciliation
officer shall, as soon as practicable after the close of
the investigation, send to the appropriate Government
a full report setting forth the steps taken by him and
the reasons on account of which, in his opinion, a
settlement could not be arrived at.
45

• (5) If, on a consideration of the report referred


to in sub- section (4), the appropriate
Government is satisfied that there is a case for
reference to a Board, Labour Court, Tribunal or
National Tribunal, it may make such reference.
• Where the appropriate Government does not
make such a reference it shall record and
communicate to the parties concerned its
reasons therefor.
46

• (6) A report under this section shall be


submitted within fourteen days of the
commencement of the conciliation
proceedings or within such shorter period as
may be fixed by the appropriate Government:
47 13. DUTIES OF BOARD

• (1) It shall be the duty of the Board to endeavor to bring about


a settlement of the same and for this purpose the Board shall,
investigate the dispute and all matters affecting the merits and
the right settlement thereof and may do all such things as it
thinks fit for the purpose of inducing the parties to come to a
fair and amicable settlement of the dispute.
• (2) If a settlement of the is arrived at in the course of the
conciliation proceedings, the Board shall send a report
thereof to the appropriate Government together with a
memorandum of the settlement signed by the parties to the
dispute
48

• (3) If no such settlement is arrived at, the Board shall, after the
close of the investigation, send to the appropriate Government a
full report setting forth the proceedings and steps taken by the
Board for ascertaining the facts and circumstances relating to
the dispute and for bringing about a settlement thereof, together
with a full statement of such facts and circumstances, its
findings thereon.
• (4) If, on the receipt of a report under sub-section (3) in respect
of a dispute relating to a public utility service, the appropriate
Government does not make a reference to a Labour Court,
Tribunal or National Tribunal u/s10, it shall record and
communicate to the parties concerned its reasons therefor.
49

• (5) The Board shall submit its report under this


section within two months of the date, on which
the dispute was referred to it or within such
shorter period as may be fixed by the
appropriate Government.
50 14. 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
15. DUTIES OF LABOUR COURTS,
51 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.
52 16. FORM OF REPORT OR
AWARD.-
• (1) The report of a Board or Court shall be in writing
and shall be signed by all the members of the Board or
Court, as the case may be: Provided that nothing in
this section shall be deemed to prevent any member
of the Board or Court from recording any minute of
dissent from a report or from any recommendation
made therein.
• (2) The award of a Labour Court or Tribunal or National
Tribunal shall be in writing and shall be signed by its
presiding officer.
53 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.
• (2) Subject to the provisions of section 17A, the award
published under sub-section (1) shall be final and shall not
be called in question by any Court in any manner
whatsoever.
54 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.
• (2) the appropriate Government or the Central
55
Government may, within ninety days from the date
of publication of the award u/s 17, make an order
rejecting or modifying the award, and shall, on the first
available opportunity, lay the award together with a
copy of the order before the Legislature of the State, if
the order has been made by a State Government, or
before Parliament, if the order has been made by the
Central Government.
56

• (3) Where any award as rejected or modified by


an order made under sub-section (2) is laid
before the Legislature of a State or before
Parliament, such award shall become
enforceable on the expiry of fifteen days
from the date on which it is so laid; and where
no order under sub-section (2) is made in
pursuance of a declaration under the proviso to
sub-section (1), the award shall become
enforceable on the expiry of the period of
ninety days referred to in sub-section (2).
57

• (4) Subject to the provisions of sub-section (1)


and sub-section (3) regarding the enforceability
of an award, the award shall come into
operation with effect from such date as may be
specified therein, but where no date is so
specified, it shall come into operation on the
date when the award becomes enforceable
under sub-section (1) or sub- section (3), as the
case may be.
58 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.
59

• (3)A settlement arrived at in the course of conciliation


proceedings or arbitration award 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,
• (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;
60

• d) where a party referred to in clause (a) or


clause (b) is composed of workmen, all persons
who were employed in the 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.
61 19. PERIOD OF OPERATION OF
SETTLEMENTS AND AWARDS
• (1) A settlement shall come into operation on
such date as is agreed upon by the parties to
the dispute, and if no date is agreed upon, on
the date on which the memorandum of the
settlement is signed by the parties to the
dispute.
• (2) Such settlement shall be binding for such
period as is agreed upon by the parties, and if
no such period is agreed upon, for a period of
six months
62

• (3) An award shall, subject to the provisions of


this section, remain in operation for a period of
one year from the date on which the award
becomes enforceable under section 17A
63 20. COMMENCEMENT AND
CONCLUSION OF
PROCEEDINGS.
• (1) A conciliation proceeding shall be deemed
to have commenced on the date on which a
notice of strike or lock-out under section 22 is
received by the conciliation officer or on the
date of the order referring the dispute to a
Board, as the case may be.
• (2) A conciliation proceeding shall be deemed
to have concluded--
64

• (a) where a settlement is arrived at, when a


memorandum of the settlement is signed by the parties
to the dispute ;
• (b) where no settlement is arrived at, when the report of
the conciliation officer is received by the appropriate
Government or when the report of the Board is
published under section 17, as the case may be; or
• (c) when a reference is made to a Court, Labour Court,
Tribunal or National Tribunal u/s10 during the pendency
of conciliation proceedings.

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