2009 (4) TMI 998 - HC - Indian Laws

Government Order Valid During Tribunal Adjudication: Clarification on Industrial Disputes Act

The court clarified that the Government's order under Section 25-O(2) of the Industrial Disputes Act, 1947 remains valid until altered by a competent ... - Issues Involved:1. Interpretation of Section 25-O of the Industrial Disputes Act, 1947.2. Status of the Government's order under Section 25-O(2) pending adjudication.3. Scope of the phrase 'refer the matter' in Section 25-O(5).4. Jurisdiction of the Industrial Tribunal under Section 25-O(5).Issue-Wise Detailed Analysis:1. Interpretation of Section 25-O of the Industrial Disputes Act, 1947:The judgment thoroughly examines the provisions of Section 25-O, emphasizing that it is a self-contained code. It outlines the procedure for an employer seeking to close an industrial establishment, including the requirement to apply for prior permission from the appropriate Government, the conduct of an inquiry, and the necessity to provide a reasonable opportunity of being heard to all parties involved. The section mandates that the Government's order, whether granting or refusing permission, is final and binding for one year, subject to review or reference to the Industrial Tribunal.2. Status of the Government's Order under Section 25-O(2) Pending Adjudication:The court held that an order passed by the appropriate Government under Section 25-O(2) does not cease to exist or become ineffective pending adjudication by the Industrial Tribunal. The order remains in force unless specifically stayed or altered by a competent forum. The doctrine of eclipse or abeyance does not apply automatically upon invoking the review or reference provisions under Section 25-O(5).3. Scope of the Phrase 'Refer the Matter' in Section 25-O(5):The phrase 'refer the matter' encompasses the application for closure, the proceedings conducted by the Government, and the order passed under Section 25-O(2). It does not empower the Government to refer the legality or validity of its order to the Tribunal. The Tribunal must independently assess the application for closure, considering the entire record and the statutory parameters outlined in Section 25-O(2).4. Jurisdiction of the Industrial Tribunal under Section 25-O(5):The Industrial Tribunal does not act as an appellate body over the Government's order. Instead, it conducts a de novo inquiry, allowing parties to present their claims and evidence. The Tribunal must adjudicate the matter afresh, ensuring compliance with the principles of natural justice and the statutory requirements. The Tribunal's award must be based on its independent assessment of the application for closure.Conclusion:The judgment clarifies that the Government's order under Section 25-O(2) remains effective pending adjudication by the Industrial Tribunal. The Tribunal's jurisdiction is to conduct a fresh inquiry into the application for closure, not to review the legality of the Government's order. The phrase 'refer the matter' includes the entire proceedings before the Government, and the Tribunal must independently determine the merits of the closure application. The court's decision aims to balance the interests of employers and workmen while ensuring adherence to statutory procedures and principles of natural justice.