1952 (12) TMI 44 - SC - Indian Laws

Supreme Court affirms Magistrate's jurisdiction in Industrial Disputes Act case

State Of Madras Versus C.P. Sarathy And Another

The Supreme Court upheld the jurisdiction of the Magistrate to proceed with the enquiry, finding that the prosecution for an offence under the Industrial ... - Issues Involved:1. Jurisdiction of the Magistrate to proceed with the enquiry.2. Validity of the award by the Industrial Tribunal.3. Competence of the Government's notification referring the industrial dispute.4. Constitutionality of the Madras Amendment Act.Issue-Wise Detailed Analysis:1. Jurisdiction of the Magistrate to Proceed with the Enquiry:The first respondent raised a preliminary objection before the Magistrate, claiming that the award on which the prosecution was based was ultra vires and void. The High Court upheld this objection, leading to the quashing of the proceedings. The Supreme Court, however, found that the Magistrate had jurisdiction to proceed with the enquiry. The Court stated that the prosecution for an offence under section 29 of the Industrial Disputes Act, 1947 (the Act) could not be dismissed merely because it was instituted after the expiry of the award. The liability for prosecution arose when the breach of the award occurred while it was in force.2. Validity of the Award by the Industrial Tribunal:The first respondent contended that the award was ultra vires and void as there was no dispute between the management and workers of 'Prabhat Talkies.' The Supreme Court disagreed, stating that the demands set forth by the Labour Commissioner clearly constituted industrial disputes within the meaning of the Act. The Court noted that the Government had the authority to refer disputes that were apprehended, not just those that had already arisen. The Tribunal's decision to include all cinema companies in the reference was upheld, as the disputes affected the industry as a whole.3. Competence of the Government's Notification Referring the Industrial Dispute:The first respondent argued that the Government's notification was not competent as it did not specify the particular disputes or the parties involved. The Supreme Court found that the Government's reference was valid, emphasizing that the Government's act of making a reference under section 10(1) of the Act was administrative, not judicial. The Court held that the Government need not specify the exact nature of the disputes in the reference order, as long as it was clear that an industrial dispute existed or was apprehended.4. Constitutionality of the Madras Amendment Act:The first respondent challenged the constitutionality of the Madras Amendment Act, claiming it was repugnant to the Central Industrial Disputes Act, 1947, and discriminatory under Article 14 of the Constitution. The Supreme Court did not address this issue in detail, as it found that the other contentions of the first respondent were not sustainable.Separate Judgment:Vivian Bose J. concurred with the majority but emphasized that the Government should ideally indicate the nature of the dispute in the reference order or accompanying documents. He acknowledged that the point had been settled by the Federal Court in the India Paper Pulp Company case but reiterated the desirability of clarity in the Government's reference.Conclusion:The Supreme Court set aside the High Court's order and dismissed the first respondent's petition, allowing the appeal. The Court upheld the jurisdiction of the Magistrate, the validity of the award, and the competence of the Government's notification. The constitutional issue was not addressed in detail, as the other arguments were sufficient to decide the case.