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1952 (5) TMI 29 - HC - Indian Laws

Issues:
1. Jurisdiction of the Industrial Tribunal to award costs against a non-party.
2. Applicability of Article 226 of the Constitution for relief.
3. Principles governing the liability of a stranger to a proceeding for costs.
4. Violation of natural justice principles in passing the order for costs.

Detailed Analysis:
1. The petitioner sought relief under Article 226 to quash an order of an Industrial Tribunal directing payment of costs incurred by an employee in proceedings before the Tribunal. The Tribunal's jurisdiction to award costs against a non-party was challenged. The Tribunal's power to determine costs under Section 11(7) of the Industrial Disputes Act was examined. The Tribunal's discretion to make a non-party liable for costs was upheld, as the wording of the Act conferred wide discretion on the Tribunal in cost matters.

2. The respondent argued that the proper remedy for the petitioner was to appeal under the Industrial Disputes (Appellate Tribunal) Act, not by way of Article 226. However, it was clarified that the right of appeal under the Act was limited to aggrieved parties and did not extend to non-parties. The petitioner, not being a party to the proceedings, was not entitled to appeal. The Court held that the petitioner was entitled to seek relief under Article 226 of the Constitution.

3. The judgment discussed the principles governing the liability of a stranger to a proceeding for costs. It was highlighted that a person could be made liable for costs under special circumstances, such as when the proceeding was an abuse of the court's process. The Court emphasized that a proper exercise of discretion was required when making a non-party liable for costs. The order directing the petitioner to pay the expenses of the employee was deemed capricious and not a sound exercise of discretion.

4. The Court found that the order for costs was passed without affording the petitioner an opportunity to be heard, violating principles of natural justice. It was noted that before making an order for costs against a stranger to a suit, the individual should be made a party to the litigation and given a chance to present their case. The order passed without jurisdiction and in violation of natural justice was quashed by Certiorari, granting relief to the petitioner under Article 226 of the Constitution.

 

 

 

 

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