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Issues involved:
The issues involved in this legal judgment include the validity of a reference made by the Central Government under Section 10 of the Industrial Disputes Act, the rationality of exercising powers after a significant lapse of time, and the interpretation of what constitutes a stale dispute for the purpose of making a reference. Validity of Reference by Central Government: The Nedungadi Bank Ltd. challenged the reference made by the Central Government under Section 10 of the Act, which was allowed by the learned single Judge but upheld on appeal by the Division Bench. The Central Government made the reference after a significant delay of about seven years from the date of dismissal of the employee in question. The Court found that there was no rational basis for the Central Government to exercise its powers in this case as no industrial dispute existed or was apprehended at the time of the reference. Definition of Stale Dispute: The Court deliberated on the concept of a stale dispute and emphasized that a dispute which is stale cannot be the subject of a reference under Section 10 of the Act. The determination of whether a dispute is stale depends on the specific facts and circumstances of each case. In this instance, the Court found it incongruous to make a reference when the matter had become final and no dispute was pending at the time of the reference. Judicial Review and Industrial Disputes: The Court clarified that High Courts have the jurisdiction to entertain writ petitions challenging the existence or apprehension of an industrial dispute, which could be subject to reference for adjudication. The appropriate government lacks the power to make a reference if there is no industrial dispute in existence or apprehended. The purpose of a reference is to maintain industrial peace, and any reference that disrupts this peace defeats the objective of the Act. Conclusion: The appeal was allowed, the impugned judgment of the Division Bench was set aside, and the judgment of the learned single Judge was restored. The Court emphasized that the Central Government lacked the power to make the reference due to the delay in invoking Section 10 of the Act and the absence of an existing or apprehended industrial dispute. No costs were awarded in this matter.
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