MIS RAHMAN INDUSTRIES PVT. LTDversusSTATE OF LJ.P. AND OTHERS

                              [2016] 1S.C.R.112



A                    MIS RAHMAN INDUSTRIES PVT. LTD.
                                       v.
                       STATE OF lJ.P. AND OTHERS
                             (Civil Appeal No. 286 of 2016)
B                            JANUARY 18, 2016
             [KURIAN JOSEPH AND R. F. NARIMAN, JJ.]
           Industrial Disputes Act, 1947 - Power of Government - To
    refer the industrial dispute for adjudication - Judicial interference
C   - Permissibility - Held: In the scheme of the Act it is well within
    jurisdiction of the Government to examine a case for the purpose
    of satisfying itself as to existence of dispute for reference - Judicial
    order may interfere with such power of Government, only when it
    finds thar the reference of the dispute was unjustified and on
    irrelevant factors - Jn the present case, the High court, by directing
D   the Government to refer the dispute for adjudication, has denied
    the jurisdiction vested in the Government, and such direction is
    against the Scheme of the Act.
          Partly allowing the appeal, the Conrt
           HELD: 1. In the scheme of the Industrial Disputes Act,
E   1947, it is not as if the Government has to act as a post office by
    referring each and every petition received by them. The
    Government is well within its jurisdiction to see whether there
    exists a dispute worth referring for adjudication. Only in case,
    on judicial scrutiny, the court finds that the refusal of the
F   Government to make a reference of the dispute is unjustified on
    irrelevant factors, the court may issue a direction to the
    Government to make a reference. [Para 4] [114-F-G, H; 115-A]]
        2. The High Court has, in the impugned order, denied the
  jurisdiction vested in the Government in the scheme of the Act
G to examine a case for the purpose of satisfying itself as to whether
  there exists a dispute for referring to the Labour Court/lndustrial
  Tribunal for adjudication. The High Court has issued a mandatory
  direction in the very first instance to refer the dispute, if any,
  raised by the workmen for adjudication before the Labour Court.
  That is against the scheme of the Act. [Para 9] [115-G; 116-A]]
H
                                      112
   MIS RAHMAN INDUSTRIES PVT. LTD. v. STATE OF U.P.                      l 13



      3. The impugned order is set aside to the extent that there        A
is a mandatory direction for referring the issues raised by the
workman for adjudication. However, is clarified that the
Government must examine whether a dispute exists or not, and
in case it is so satisfied, it should refer the same for adjudication
before the Labour Court. [Para 10] [116-B-C]
                                                                         B
      Steel Authority of India v. Union of India (2006) 12
      SCC 233: 2006 (6) Suppl. SCR 663; Rashtriya
      Chemicals and Fertilizers Limited and Anr. v. General
      Employees 'Association and Ors. (2007) 5 SCC
      273: 2007 (5) SCR 457; Te/co Convoy Drivers
      Mazdoor Sangh and Anr. v. State of Bihar and Ors.                  c
      (1989) 3 SCC 271:1989 (2) SCR 802; Sarva Shramik
      Sangh v. Indian Oil Corporation Limited (2009) 11 SCC
      609: 2009 (6) SCR 39 - relied on.
                       Case Law Reference
                                                                         D
      2006 (6) Suppl. SCR 663           relied on.      Para 5
      2007 (5) SCR 457                  relied on.      Para6
      1989 (2) SCR 802                   relied on.     Para7
      2009 (6) SCR 39                    relied on.     Paras
                                                                         E
     CIVIL APPELLATE JURISDICTION : Civil Appeal No. 286
of2016
       From the Judgment and Order dated 09.02.2011 of the High Court
of Judicature at Allahabad, Lucknow Bench in Writ Petition 5753 (M/S)
of2010                                                                   F
      Pradeep Kant, Aditya Singh, Divyanshu Sahay for the Appellant.
     Viresh Kumar Yadav, Md. Farman, Bharti Tyagi, Ravi Prakash
Mehrotra for the Respondents.
      The Judgment of the Court was delivered by                         G
      KURIAN, J.: I. Leave granted.
      2. The appellant challenged the award dated 27.08.2010 passed
under the provisions of the Timely Payment of Wages Act, 1978 and the
recovery before the High Court leading to the impugned judgment dateci
09.02.2011. The High Court found that the order passed by the Labour     H
114                SUPREME COURT REPORTS                           [2016] l S.C.R.



A     Court was without jurisdiction, and hence, the impugned orders were
      quashed. However, it was clarified that the judgment of the High Court
      did not mean that the workmen was left without any remedy. The question
      was only on invocation of proper remedy before the appropriate forum.
      And thus, it was directed that in case, any such matter is brought before
      the Government, the Government will refer it for adjudication before the
B
      Labour Court. To quote:
             "However, quashing of the orders under the Timely
             Payment of Wages Act, 1978 by this Court will not mean
             that the claim of the workmen has been rejected in any
             manner. The Court has not given any finding on the rights
c            of the workmen or the amount of wages which had to be
             adjudicated by proper forum. The opposite party No. 6 and
             the workmen will be at liberty to approach the proper forum
             under the Payment of Wages Act, 1936 or any other forum
             under the Payment of Wages Act, 1936 or any other forum
D            which they deem fit in the facts and circnmstances of the
             case. It is also provided that in case matter is brought before
             the government it will refer it for adjudication at the earliest
             and the Labour Court will decide the whole matter within a
             maximum period of four months from the date of reference."
E             3. The grievance of the appellant is in a very narrow compass. It
      is pointed out that there is a peremptory direction by the High Court to
      refer the dispute raised by the workmen for adjudication, virtually taking
      away the discretion on the part of the Government to look into the issue
      as to whether there is a referable dispute at all.
F             4. We find force in the submission made by the learned Counsel.
      In the scheme of the Industrial Disputes Act, 1947 (hereinafter referred
      to as 'the Act'), it is not as if the Government has to act as a post office
      by referring each and every petition received by them. The Government
      is well within its jurisdiction to see whether there exists a dispute worth
      referring for adjudication. No doubt, the Government is not entitled to
G     enter a finding on the merits of the case and decline reference. The
      Government has to satisfy itself, after applying its mind to the relevant
      factors and satisfy itself to the existence of dispute before taking a decision
      to refer the same for adjudication. Only in case, on judicial scrutiny, the
      court finds that the refusal of the Government to make a reference of
H     the dispute is unjustified on irrelevant factors, the court may issue a
    MIS RAHMAN INDUSTRIES PVT. LTD. v. STATE OF U.P.                            115
                              [KURIAN, J.]

direction to the Government to make a reference.                                A
       5. The jurisdiction of the Government under the scheme of the
Act to satisfy itself as to the existence of the dispute has been the subject
matter of catena of judgments of this Court, some of which have been
referred to in Steel Authority of India v. Union oflndia 1, wherein it has
been held at paragraph-JS, which reads as follows:                              B
       " 18. Before adverting to the questions raised before us,
       we may at this juncture notice the contention of Mr V.N.
       Raghupathy that whereas in the reference only 26 workmen
       were made parties, more than 600 workmen were made
       parties in the writ petition and, thus, only because before              c
       the appropriate Government a demand was raised by some
       of the workmen contending that they were workmen of the
       contractors, an industrial dispute could be raised that the
       contract was a sham one and in truth and substance the
       workmen were employed by the management."
                                                                                D
       6. In Rashtriya Chemicals and Fertilizers Limited and another v.
General Employees' Association and others', following Steel Authority
of India (supra), it has been held at paragraph-8 that ... "It is for the
appropriate Government to apply its mind to relevant factors and
satisfy itself as to the existence of a dispute before deciding to refer
the dispute. . .. ".                                                            E

       7. In Telco Convoy Drivers Mazdoor Sangh and another v. ~
of Bihar and others', it has been held that on judicial review, if the court
finds that the appropriate Government was not justified in not making a
reference, the court may issue a positive direction to make a reference.
                                                                                F
      8. This Court, in Sarva Shramik Sangh v. Indian Oil Cm:poration
Limjted4, has cited almost all the previous decisions on this point with
approval.
       9. The High Court has, in the impugned order, denied the
jurisdiction vested in the Government in the scheme of the Act to examine
                                                                                G
a case for the purpose of satisfying itself as to whether there exists a
dispute for referring to the Labour Court/Industrial Tribunal for
1 (2006) 12 sec 233
        s
2(2001) sec 213
3(1989) 3 sec 211
4 (2009) 11 sec 609                                                             H
116                SUPREME COURT REPORTS                        [2016] 1 S.C.R.



A     adjudication. The High Court has issued a mandatory direction in the
      very first instance to refer the dispute, if any, raised by the workmen for
      adjudication before the Labour Court. That is against the scheme of the
      Act as we have seen from the legal position settled by this Court.
              10. We, hence, set aside the impugned order to the extent that
B     there is a mandatory direction for referring the issues raised by the
      workman for adjudication. However, we make it clear that the
      Government must examine whether a dispute exists or not, and in case
      it is so satisfied, it should refer the same for adjudication before the
      Labour Court. Needful should be done within a period of three months
      from the date on which the issue is raised by the workmen.
c
             The appeal is allowed to the above extent. There shall be no orders
      as to costs.
      Kalpana K. Tripathy                                   Appeal partly allowed.