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        Case ID :

        1958 (8) TMI 53 - SC - Indian Laws

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        Industrial dispute reference cannot be withdrawn by Government once validly made under the Industrial Disputes Act. Under the Industrial Disputes Act, 1947, once the appropriate Government validly makes a reference under section 10(1)(d), control of the dispute passes ...
                      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.

                          Industrial dispute reference cannot be withdrawn by Government once validly made under the Industrial Disputes Act.

                          Under the Industrial Disputes Act, 1947, once the appropriate Government validly makes a reference under section 10(1)(d), control of the dispute passes to the tribunal and the reference cannot be cancelled, superseded, or withdrawn by the Government before adjudication concludes. The statutory scheme governing commencement, pendency, awards, and expeditious disposal was treated as inconsistent with any implied executive power to terminate a pending reference. Section 21 of the General Clauses Act, 1897 was held inapplicable because the context of the Act excluded such implication. Alleged bona fides could not cure the absence of statutory authority.




                          Issues: Whether the appropriate Government, after making a reference of an industrial dispute for adjudication under the Industrial Disputes Act, 1947, could cancel, supersede, or withdraw that reference before the tribunal concluded the proceedings.

                          Analysis: The power to make a reference under section 10(1)(d) is conditioned on the Government's satisfaction that an industrial dispute exists or is apprehended, but once the reference is made the proceedings pass to the tribunal and remain under its control. The scheme of the Act, including the provisions governing commencement and conclusion of proceedings, publication and finality of awards, restrictions during pendency, and the duty to decide expeditiously, was treated as inconsistent with any implied power in the Government to terminate a pending reference. Section 21 of the General Clauses Act, 1897 was held inapplicable because the context and effect of the Industrial Disputes Act repelled such implication. The Court also held that alleged bona fides could not validate an act for which no statutory authority existed.

                          Conclusion: The appropriate Government had no power to cancel or supersede a reference already made under section 10(1)(d); the impugned cancellation notification was invalid and ultra vires, and the challenge failed against the respondents.

                          Final Conclusion: A reference for industrial adjudication, once validly made, remains with the tribunal and cannot be withdrawn by the Government merely on the basis of implied power.

                          Ratio Decidendi: Section 21 of the General Clauses Act, 1897 does not imply a power to cancel or supersede a reference made under section 10(1)(d) of the Industrial Disputes Act, 1947, because the Act places pending reference proceedings within the exclusive jurisdiction of the tribunal.


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                          ActsIncome Tax
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