1973 (3) TMI 134 - SC - Indian Laws

Interpretation of section 11A of the Industrial Disputes Act - whether section 11A applies to industrial disputes which have already been referred to for adjudication and were, pending as on 15-12-1971? Held that - Both in respect of cases where a domestic enquiry has been held as also in cases where the Tribunal considers the matter on the evidence adduced before it for the first time, the satisfaction under section 11 A, about the guilt or otherwise of the workman concerned, is that of the Tribunal. It has to consider the evidence and come to a conclusion one way or other. Even in cases where an enquiry has been held by an employer and a finding of misconduct arrived at, the Tribunal can now differ from that finding in a proper case and hold that no misconduct is proved. In order to make the section applicable even to disputes, which had been referred prior to the coming into force of the section, there should be such a clear, express and manifest indication in the section. There is no such express indication. An inference that the section applies to proceedings, which are already pending, can also be gathered by necessary, intendment. In the case on hand, no such inference can be drawn as the indications are to the contrary. We have already referred to the, proviso to section 11A which states in any proceeding under this section . A proceeding under the section can only be after the section has come into force. Further the section itself was brought into force some time after the Amendment Act was passed. These circumstances as well as the scheme of the section and particularly the wording of the Proviso indicate that section 11A does not apply to disputes which had been referred prior to 15-12- 1971. The section applies only to disputes which are referred for adjudication on or after 15-121971. To conclude, in our opinion, section 11A has-no application to disputes referred prior to 15-12-1971. Such disputes have to be dealt with according to the decisions of this Court already referred to. In Civil Appeal No. 1461 of 1972, the Industrial Tribunal had considered only the question regarding- the applicability of the section to disputes which had been referred before the section came into force. The Tribunal has held that the section does not apply to such disputes. This view is in accordance with our decision and as such is correct. This appeal is hence dismissed. In the three other orders, which are the subject of consideration in Civil Appeals Nos. 1995 of 1972, 1996 of 1972 and 2386 of 1972, the Labour Court, Bombay has held that section 11A applies even to disputes which had been referred prior to 15-121971 This view, according to our judgment, is erroneous. The Labour Court has also-expressed some views on the construction to be placed on section 11 A. Part of the views expressed therein is correct; but the rest are wrong. To the extent that the decision of the Labour Court in the three orders are contrary to our decision on both the points, they are set aside add the appeals allowed to that extent. The Tribunal and the Labour Courts concerned in all these appeals, will proceed with the adjudication of the disputes in accordance with the views expressed in this judgment.

Summary

Issues Involved:
1. Proper interpretation of section 11A of the Industrial Disputes Act.
2. Applicability of section 11A to industrial disputes referred for adjudication and pending as of 15-12-1971.

Detailed Analysis:

1. Proper Interpretation of Section 11A of the Industrial Disputes Act:

Section 11A was incorporated into the Industrial Disputes Act, 1947, by the Industrial Disputes (Amendment) Act, 1971, which came into force on December 15, 1971. The new section 11A empowers Labour Courts, Tribunals, and National Tribunals to give appropriate relief in cases of discharge or dismissal of workmen. It allows them to set aside such orders if found unjustified and to direct reinstatement or award lesser punishment.

Key Points:
- The Tribunal is now empowered to reappraise the evidence from domestic enquiries conducted by employers.
- The Tribunal can now substitute its satisfaction for that of the employer regarding the finding of misconduct.
- The Tribunal has the authority to alter the punishment imposed by the employer, including awarding lesser punishment if deemed appropriate.
- The right of the employer to adduce evidence for the first time before the Tribunal, if no enquiry was held or if the enquiry was found defective, remains intact.
- The Proviso to section 11A restricts the Tribunal to rely only on materials on record and prohibits taking fresh evidence.

Judgment Analysis:
- The Tribunal can now differ from the employer's findings of misconduct and has the power to reassess the evidence.
- The Tribunal's jurisdiction to interfere with the punishment imposed by the employer is now recognized.
- The Proviso to section 11A does not eliminate the employer's right to adduce evidence before the Tribunal for the first time; it merely confines the Tribunal to the materials on record before it.

2. Applicability of Section 11A to Industrial Disputes Pending as of 15-12-1971:

The issue was whether section 11A applies to disputes that were already referred for adjudication and were pending as of December 15, 1971.

Key Points:
- The section 11A is argued to apply to all references made before and after 15-12-1971 based on the expressions "has been referred."
- The employers argued that the section should apply only to disputes referred after 15-12-1971, emphasizing that retrospective operation should not impair existing rights unless clearly intended by the legislature.
- The Proviso to section 11A, stating "in any proceeding under this section," indicates that the section applies prospectively.

Judgment Analysis:
- The section 11A does not apply to disputes referred before 15-12-1971.
- The section applies only to disputes referred for adjudication on or after 15-12-1971.
- The Tribunal and Labour Courts should proceed with adjudication based on the law as it stood before section 11A came into force for disputes referred before 15-12-1971.

Conclusion:
- The interpretation of section 11A allows Tribunals to reappraise evidence and alter punishments imposed by employers, but it does not remove the employer's right to adduce evidence for the first time before the Tribunal.
- Section 11A applies prospectively to disputes referred for adjudication on or after 15-12-1971 and does not affect disputes referred before that date.

Final Orders:
- Civil Appeal No. 1461 of 1972: Dismissed.
- Civil Appeals Nos. 1995, 1996, and 2386 of 1972: Allowed in part, with the Labour Court's erroneous views set aside.