Delay and latches cannot justify refusal of industrial dispute reference when the Government has no adjudicatory power.

Under Section 10 of the Industrial Disputes Act, 1947, the appropriate Government acts administratively and may only examine whether a referable industrial dispute exists or is apprehended. It cannot decide disputed questions of fact or law, adjudicate the merits, or refuse reference by treating delay and latches as a final bar. Delay may be relevant before the Labour Court at the relief stage, including on back wages, but it is not by itself a ground to deny reference. The refusal to refer was therefore unsustainable and was quashed, with a direction to refer the matter for adjudication.

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Issues: (i) whether delay and latches can justify refusal to make a reference of an industrial dispute under Section 10 of the Industrial Disputes Act, 1947; (ii) whether the appropriate Government can decide the merits of the dispute and assume the role of an adjudicating authority while considering reference.

Issue (i): Whether delay and latches can justify refusal to make a reference of an industrial dispute under Section 10 of the Industrial Disputes Act, 1947.

Analysis: Section 10 confers power on the appropriate Government to refer an industrial dispute when it forms an opinion that a dispute exists or is apprehended. The Court noted that the statute prescribes no limitation period for raising a demand or seeking reference. Delay may be relevant to the existence or liveliness of the dispute, but it is not by itself a legal ground for the Government to refuse reference as if it were deciding limitation or stale claim issues finally. Questions of delay can instead be considered by the Labour Court while granting relief, including back wages.

Conclusion: Delay and latches alone do not justify refusal of reference; the answer is against the Government and in favour of the petitioner.

Issue (ii): Whether the appropriate Government can decide the merits of the dispute and assume the role of an adjudicating authority while considering reference.

Analysis: The Court held that the function of the appropriate Government under Section 10 is administrative. It may examine whether a referable dispute exists, but it cannot adjudicate disputed questions of fact or law or finally decide the claim on merits. Refusal on the basis that the claim is stale, without reference to adjudication, amounts to entering the domain of the Labour Court or Industrial Tribunal.

Conclusion: The appropriate Government cannot act as an adjudicating authority while deciding whether to make a reference; the answer is in favour of the petitioner.

Final Conclusion: The impugned refusal to make a reference was unsustainable, was quashed, and the matter was directed to be referred for adjudication.

Ratio Decidendi: While exercising power under Section 10 of the Industrial Disputes Act, 1947, the appropriate Government acts administratively, may consider whether a dispute exists or is apprehended, but cannot finally adjudicate the dispute or refuse reference solely on the ground of delay and latches; such issues may be addressed by the Labour Court at the stage of relief.

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