1973 (3) TMI 134 - SC - Indian Laws

Applicability of s.11A to industrial dispute referrals: limited to disputes referred on or after 15-12-1971

Whether s.11A of the Industrial Disputes Act applies to disputes already referred for adjudication as on 15-12-1971: SC holds that s.11A confers on the ... Interpretation of section 11A of the Industrial Disputes Act - Tribunal's power to reappraise evidence and determine justification of discharge or dismissal - Tribunal's power to order reinstatement or impose lesser punishment - Proviso: reliance only on materials on record and prohibition on taking fresh evidence - Right of an employer to adduce evidence for the first time before the Tribunal - Effect of a proper, defective or absent domestic enquiry on tribunal jurisdiction - Retrospective application of procedural provisions to pending proceedings - Construction of the phrase 'has been referred' in determining temporal operation of a statutory provisionInterpretation of section 11A of the Industrial Disputes Act - Tribunal's power to reappraise evidence and determine justification of discharge or dismissal - Tribunal's power to order reinstatement or impose lesser punishment - Proviso: reliance only on materials on record and prohibition on taking fresh evidence - Right of an employer to adduce evidence for the first time before the Tribunal - Effect of a proper, defective or absent domestic enquiry on tribunal jurisdiction - Scope and effect of section 11A on the powers of Labour Courts/Tribunals when adjudicating disputes relating to discharge or dismissal - HELD THAT: - Section 11A confers on a Labour Court or Tribunal the power in the course of adjudication to be satisfied that an order of discharge or dismissal was not justified and, if so satisfied, to set aside the order and direct reinstatement or grant other relief including any lesser punishment. This enlarges the Tribunal's power to reappraise the evidence even where an employer has held a proper domestic enquiry and recorded a finding of misconduct: the Tribunal's own satisfaction about misconduct and punishment is now determinative and the limitations arising from earlier decisions (where the Tribunal could not substitute its judgment for a bona fide domestic enquiry except in limited circumstances) no longer preclude reappraisal. The proviso confines the Tribunal to decide the matter on the 'materials on record' and prohibits taking 'fresh evidence'; 'materials on record' must be read to mean the materials before the Tribunal and therefore include (a) evidence taken at the domestic enquiry and the enquiry proceedings, (b) that evidence plus any further evidence led before the Tribunal, and (c) evidence placed before the Tribunal for the first time in support of the employer's action and evidence adduced by the workman contra. Consequently, the long-recognised right of an employer to adduce evidence for the first time before the Tribunal where no enquiry was held or where the enquiry is defective is not abrogated by section 11A; the Tribunal must consider such evidence (and any evidence contra) as part of the 'materials on record' and decide the issues of misconduct and appropriate punishment on that basis. The section also expressly empowers the Tribunal, if satisfied that dismissal is not justified, to substitute a lesser punishment instead of acting merely as an appellate body on quantum of punishment. While the legislature thereby altered the pre-existing law and abridged certain managerial privileges, the provision must be read in its plain words and in the context of the proviso so as not to bar consideration of evidence legitimately before the Tribunal. [Paras 58, 59, 60, 61, 62]Section 11A empowers Tribunals to reappraise evidence (including findings of a domestic enquiry), to decide whether dismissal was justified, and to order reinstatement or lesser punishment, while the proviso confines adjudication to materials on record before the Tribunal; the employer's right to adduce evidence for the first time where no enquiry was held or the enquiry is defective remains intact.Retrospective application of procedural provisions to pending proceedings - Construction of the phrase 'has been referred' in determining temporal operation of a statutory provision - Whether section 11A applies to industrial disputes already referred and pending adjudication on 15-12-1971 - HELD THAT: - Although procedural provisions often operate in pending proceedings, the court examined the language, scheme and context of section 11A and the Amendment Act's commencement. The proviso's reference to 'any proceeding under this section' indicates proceedings that arise after the section came into force; section 11A itself was brought into force by notification effective 15-12-1971. Given that section 11A effects a substantive change-by abridging managerial rights and conferring new powers on Tribunals to reappraise findings and alter punishment-such a change cannot properly be applied to disputes referred before the section came into force in the absence of a clear manifestation of retrospective intention. The expression 'has been referred' must be read in context and does not, on the wording and scheme of the section (and the timing of its commencement), plainly import retrospective application to references made prior to 15-12-1971. Therefore disputes referred before that date remain governed by the pre-existing law as expounded in prior decisions. [Paras 71, 72, 73, 75, 76]Section 11A does not apply to industrial disputes which were referred for adjudication prior to 15-12-1971; it applies only to disputes referred on or after 15-12-1971, and disputes pending before that date must be adjudicated under the previous law.Final Conclusion: Section 11A enlarges Tribunal powers by permitting reappraisal of evidence (including findings of a domestic enquiry), and by enabling Tribunals to set aside unjustified dismissals and order reinstatement or lesser punishment, subject to the proviso that the Tribunal decide only on the materials on record (which include evidence led before the Tribunal for the first time). The employer's right to adduce evidence for the first time where no enquiry was held or the enquiry is defective is preserved. Section 11A, however, does not apply to disputes referred before 15-12-1971 and those disputes remain governed by the pre existing jurisprudence. Issues: (i) Proper interpretation of Section 11A of the Industrial Disputes Act, 1947, particularly the scope of the proviso restricting the Tribunal to 'materials on record' and its effect on the employer's right to adduce evidence; (ii) Whether Section 11A applies to industrial dispute references that were made prior to, and pending adjudication on, 15-12-1971.Issue (i): Proper interpretation of Section 11A of the Industrial Disputes Act, 1947.Analysis: Section 11A empowers a Tribunal, in adjudication of disputes relating to discharge or dismissal, to set aside such orders if it is satisfied they were not justified and to direct reinstatement or award other relief including lesser punishment; the proviso confines the Tribunal to rely on 'materials on record' and prohibits taking 'any fresh evidence in relation to the matter.' 'Materials on record' must be read as materials before the Tribunal, which include (a) evidence taken at the domestic enquiry and enquiry proceedings, (b) those materials plus any further evidence led before the Tribunal, and (c) evidence placed before the Tribunal for the first time. Prior jurisprudence recognizing the employer's right to adduce evidence for the first time where no enquiry was held or the enquiry was defective remains intact, because the section contains no express or necessary implication abrogating that right. Section 11A widens Tribunal powers by permitting reappraisal of evidence (even from a proper domestic enquiry) and by authorising modification of punishment, but limits the Tribunal to decide on the basis of the materials on record and not by taking fresh evidence outside that record.Conclusion: Section 11A authorises Tribunals to reappraise evidence (including findings of a domestic enquiry) and to alter punishment, but does not eliminate the employer's established right to place evidence before the Tribunal for the first time when no enquiry was held or the enquiry is defective; the proviso restricts the Tribunal to materials on record before it and bars calling fresh evidence beyond those materials.Issue (ii): Applicability of Section 11A to references pending adjudication on 15-12-1971.Analysis: The words 'has been referred' must be read in context and the scheme of the enactment. Section 11A was brought into force on 15-12-1971 by notification; the proviso speaks of 'any proceeding under this section,' which presupposes proceedings arising after the section came into force. Section 11A effects substantive change by abridging certain managerial prerogatives recognised by prior decisions (i.e., empowering Tribunals to reappraise enquiries and alter punishments). Absent a clear express indication or necessary intendment that the legislature intended retrospective application to references already pending, the general rule against retrospectivity applies. Considering the language, the timing of commencement and the scheme, Section 11A does not apply to disputes referred before 15-12-1971.Conclusion: Section 11A does not apply to industrial dispute references made prior to 15-12-1971; disputes referred on or after 15-12-1971 alone fall under Section 11A.Final Conclusion: Section 11A expands Tribunal powers to reappraise domestic enquiries and to modify punishment but must be applied only to references made on or after 15-12-1971; earlier pending references remain governed by pre-existing principles.Ratio Decidendi: Section 11A confers upon Tribunals the power to reappraise enquiry evidence and to alter punishment but, because it effects substantive change in recognised managerial rights, it applies prospectively to references made on or after its commencement (15-12-1971) and does not govern references already pending on that date; 'materials on record' under the proviso mean materials before the Tribunal, including evidence led for the first time where permitted.