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        2018 (5) TMI 2153 - SC - Indian Laws

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        Labour tribunal power to set aside ex parte awards survives enforceability when sufficient cause for non-appearance is shown The Industrial Disputes Act, 1947 does not make a Labour Court or Industrial Tribunal functus officio merely because an award has become enforceable. The ...
                      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.

                            Labour tribunal power to set aside ex parte awards survives enforceability when sufficient cause for non-appearance is shown

                            The Industrial Disputes Act, 1947 does not make a Labour Court or Industrial Tribunal functus officio merely because an award has become enforceable. The statutory scheme, including the power to regulate procedure under Section 11(1) and the rules on ex parte proceedings, preserves ancillary authority to set aside an ex parte award where a party was denied a fair hearing and sufficient cause is shown for non-appearance. Sections 17, 17A and 20(3) govern publication, enforceability and conclusion of proceedings, but do not exclude this corrective power. The tribunal may therefore entertain an application to recall an ex parte award within a reasonable time, on principles analogous to Order IX Rule 13 CPC.




                            Issues: Whether the Industrial Tribunal or Labour Court becomes functus officio after the award becomes enforceable and is thereby barred from entertaining an application to set aside an ex parte award.

                            Analysis: The statutory scheme of the Industrial Disputes Act, 1947 permits the Labour Court or Tribunal to regulate its own procedure under Section 11(1), and the Central Rules permit ex parte proceedings only where a party defaults without sufficient cause. Sections 17, 17A and 20(3) deal with publication, enforceability and conclusion of proceedings, but they do not expressly take away the power to correct an ex parte award passed without a fair opportunity of hearing. An ex parte award obtained without sufficient cause for non-appearance is treated as a procedural defect affecting the validity of the proceeding, and the Tribunal can exercise its ancillary or incidental powers, guided by principles analogous to Order IX Rule 13 of the Code of Civil Procedure, 1908, to set it aside ex debito justitiae. The earlier authorities relied upon were read as recognising this procedural power, and the view that the Tribunal loses jurisdiction merely because the award has become enforceable was rejected.

                            Conclusion: The Labour Court or Tribunal is not functus officio for the purpose of setting aside an ex parte award after enforceability, and it may entertain such an application if sufficient cause is shown within a reasonable time.


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                            ActsIncome Tax
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