1984 (10) TMI 245 - SC - Companies Law

Summary

Issues:
1. Jurisdiction of the Labour Court to set aside an ex parte award published in the Official Gazette.
2. Interpretation of Industrial Disputes Rules.
3. Error in dismissing the application for setting aside the ex parte award.

Detailed Analysis:
1. The judgment deals with an industrial dispute regarding the termination of a conductor's service, referred to the Labour Court. The appellant failed to appear for the hearing, leading to an ex parte decision. The appellant later sought to recall the order, but the Labour Court, followed by the High Court, held that once an award is published in the Gazette, it cannot be set aside. However, the Supreme Court clarified that the Labour Court has jurisdiction to entertain such applications based on the precedent set by Grindlays Bank Ltd. v. Central Government Industrial Tribunal.

2. The Supreme Court highlighted the relevance of Rule 22 and Rule 24(b) of the Industrial Disputes Rules in allowing the Labour Court to set aside an ex parte award. The Court emphasized that the power to proceed ex parte includes the authority to inquire into the absence of a party and set aside the award if sufficient cause is shown. The judgment stressed that the rules applicable in this case were similar to those in the Grindlays Bank case, reinforcing the Labour Court's jurisdiction to address the appellant's application.

3. The Court criticized the erroneous approach of both the Labour Court and the High Court in denying jurisdiction to set aside the ex parte award. It noted that the rejection of the application was influenced by the incorrect belief that no merit existed for setting aside the order. The appellant's genuine mistake in the hearing date, promptly rectified by an application, was considered valid, leading to the decision to set aside the ex parte award and remit the matter back to the Labour Court for further proceedings.

In conclusion, the Supreme Court allowed the appeal, set aside the ex parte award, quashed the High Court's decision, and directed the Labour Court to prioritize the case and dispose of it within four months, emphasizing the importance of following legal procedures and upholding the parties' rights in industrial dispute cases.