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        Companies Law

        1964 (3) TMI 83 - SC - Companies Law

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        Statutory interpretation of strike illegality permits immediate discipline and incidental legality findings in labour relief proceedings Different statutory phrases were treated as deliberate, so 'rendered illegal' in section 42(1)(g) was read as distinct from 'held illegal' elsewhere in ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Statutory interpretation of strike illegality permits immediate discipline and incidental legality findings in labour relief proceedings

                              Different statutory phrases were treated as deliberate, so "rendered illegal" in section 42(1)(g) was read as distinct from "held illegal" elsewhere in the Act. On that construction, an employer did not have to wait for a prior declaration under section 41 before taking disciplinary action against a workman for participating in a strike that appeared to fall within section 40. The Labour Commissioner, when deciding an application under section 16(3), could also determine the legality of the strike incidentally because section 41 did not confer exclusive jurisdiction on the industrial courts and the statutory scheme required an effective forum for relief.




                              Issues: (i) Whether section 42(1)(g) prohibited an employer from taking disciplinary action against a workman for participation in a strike before the strike had been declared illegal under section 41; and (ii) whether, on an application under section 16(3), the Labour Commissioner had jurisdiction to decide the legality or illegality of the strike.

                              Issue (i): Whether section 42(1)(g) prohibited an employer from taking disciplinary action against a workman for participation in a strike before the strike had been declared illegal under section 41.

                              Analysis: The expression "rendered illegal" in section 42(1)(g) was construed in contrast with the words "held illegal" used elsewhere in the Act. The scheme of sections 40, 41, 43, 44 and 45 showed that the legislature deliberately used different phraseology. Section 41 empowered the industrial court to decide legality on a reference by the State Government and, in other cases, only permissively. If the employer were compelled to wait for a formal declaration, the disciplinary provisions would be defeated and the statutory scheme would become unworkable.

                              Conclusion: Section 42(1)(g) did not require a prior declaration under section 41, and the employer was free to act when the strike appeared to fall within section 40.

                              Issue (ii): Whether, on an application under section 16(3), the Labour Commissioner had jurisdiction to decide the legality or illegality of the strike.

                              Analysis: Section 41 did not confer exclusive jurisdiction on the State Industrial Court or the District Industrial Court, because those authorities were not bound to decide every application by private parties. Since the machinery under section 41 could decline to act, it was necessary that the Labour Commissioner, while deciding whether dismissal or suspension was in contravention of the Act or standing orders, should be able to determine the legality of the strike incidentally for the purpose of section 16(3).

                              Conclusion: The Labour Commissioner had jurisdiction to decide the question of legality or illegality of the strike in proceedings under section 16(3).

                              Final Conclusion: The employer's challenge failed because the statutory scheme permitted immediate disciplinary action for participation in an illegal strike and also allowed the Labour Commissioner to examine the legality question when adjudicating relief under section 16(3). The appeal was dismissed.

                              Ratio Decidendi: Where a statute uses different expressions for the same subject matter, the variation is presumed deliberate, and a permissive adjudicatory mechanism does not exclude incidental determination of the same issue by another authority when necessary to exercise its own statutory jurisdiction.


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                              ActsIncome Tax
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