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Thursday, September 6, 2012

THE INDUSTRIAL DISPUTES ACT, 1947


THE INDUSTRIAL DISPUTES ACT, 1947
INTRODUCTION
Prior to the year 1947, industrial disputes were being settled under the provisions of the
Trade Disputes Act, 1929. Experience of the working of the 1929 Act revealed various defects
which needed to be overcome by a fresh legislation. Accordingly the Industrial Disputes Bill
was introduced in the Legislature. The Bill was referred to the select committee. On the
recommendations of the Select Committee amendments were made in the original Bill.
STATEMENT OF OBJECTS AND REASONS
Experience of the working of the Trade Disputes Act, 1929, has revealed that its main defect
is that, while restraints have been imposed on the rights of strike and lock-out in public
utility services, no provision has been made to render the proceedings institutable under the
Act for the settlement of an industrial dispute, either by reference to a Board of Conciliation
or to a Court of Inquiry, conclusive and binding on the parties to the dispute. This defect
was overcome during the war by empowering under Rule 81A of the Defence of India,
Rules, the Central Government to refer industrial disputes to adjudicators and to enforce
their awards. Rule 81A, which was to lapse on the 1st October, 1946, is being kept in force
by the Emergency Powers (Continuance).
Ordinance, 1946, for a further period of six months; and as industrial unrest in checking
which this rule has proved useful, is gaining momentum due to the stress of post industrial
re-adjustment, the need of permanent legislation in replacement of this rule is self-evident.
This Bill embodies the essential principles of Rule 81A, which have proved generally
acceptable to both employers and workmen, retaining intact, for the most part, the provisions
of the Trade Disputes Act, 1929.
The two institutions for the prevention and settlement of industrial disputes provided for in
the Bill are the Works Committees consisting of representatives of employers and workmen,
Industrial Tribunal consisting of one or more members possessing qualifications ordinarily
required for appointment as Judge of a High Court. Power has been given to appropriate
Government to require Works Committees to be constituted in every industrial establishment
employing 100 workmen, or more and their duties will be to remove causes of friction
between the employer and workmen in the day-to-day working of the establishment and to
promote measures for securing amity and good relations between them. Industrial peace
will be most enduring where it is founded on voluntary settlement, and it is hoped that the
Works Committees will render recourse to the remaining machinery provided for in the Bill
for the settlements of disputes infrequent. A reference to an Industrial Tribunal will lie
where both the parties to an industrial dispute apply for such reference and also where the
appropriate Government considers it expedient so to do. An award of a Tribunal may be
enforced either wholly or in part by the appropriate Government for a period not exceeding
one year. The power to refer disputes to Industrial Tribunals and enforce their awards is an
essential corollary to the obligation that lies on the Government to secure conclusive
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determination of the disputes with a view to redressing the legitimate grievances of the
parties thereto, such obligation arising from the imposition of restraints on the rights of
strike and lock-out, which must remain inviolate, except where considerations of public
interest override such rights.
The Bill also seeks to re-orient the administration of the conciliation machinery provided in
the Trade Disputes Act. Conciliation will be compulsory in all disputes in public utility
services and optional in the case of other industrial establishments. With a view to expedite
conciliation proceedings time limits have been prescribed for conclusion thereof14 days in
the case of conciliation officers and two months in the case of Board of Conciliation from the
date of notice of strike. A settlement arrived at in the course of conciliation proceedings will
be binding for such period as may be agreed upon by the parties and where no period has
been agreed upon, for a period of one year, and will continue to be binding until revoked
by a 3 month’s notice by either party to the dispute.
Another important new feature of the Bill relates to the prohibition of strikes and lock-outs
during the pendency of conciliation and adjudication proceedings of settlements reached in
the course of conciliation proceedings and of awards of Industrial Tribunals declared binding
by the appropriate Government. The underlying argument is that where a dispute has been
referred to conciliation for adjudication a strike or lock-out, in furtherance thereof, is both
unnecessary and inexpedient. Where, on the date of reference to conciliation or adjudication
a strike or lock-out is already in existence, power is given to the appropriate Government
to prohibit its continuance lest the chances of settlement or speedy determination of the
dispute should be jeopardized.
The Bill also empowers the appropriate Government to declare, if public interest or emergency
so requires, by notification in the Official Gazette, any industry to be a public utility service,
for such period, if any, as may be specified in the notification.
ACT 14 OF 1847
The Industrial Disputes Bill having been passed by the Legislature received its
assent on 11th March, 1947. It came into force on first day of April, 1947 as THE INDUSTRIAL
DISPUTES ACT, 1947 (14 of 1947).
PRELIMINARY
1. EXTENT
(1) This Act may be called the Industrial Disputes Act, 1947.
(2) It extends to the whole of India.
(3) It shall come into force on the first day of April, 1947.
2. BASIC CONCEPTS
In this Act, unless there is anything repugnant in the subject or context,




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(a) “appropriate Government” means
(i) in relation to any industrial dispute concerning any industry carried on by or
under the authority of the Central Government,
(ii) or, by a railway company or concerning any such controlled industry as may be
specified in this behalf by the Central Government;
(iii) or, in relation to an industrial dispute concerning 1a Dock Labour Board
established under section 5A of the Dock Workers (Regulation of Employment)
Act,(9 of 1948),
(iv) or, 1the Industrial Finance Corporation of India Limited formed and registered
under the Companies Act, 1956 (1 of 1956),
(v) or, the Employees’ State Insurance Corporation established under section 3 of
the Employees’ State Insurance Act, 1948 (34 of 1948);
(vi) or, the Board of Trustees constituted under section 3A of the Coal Mines Provident
Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or the Central Board
of Trustees and the State Boards of Trustees constituted under section 5A and
section 5B, respectively, of the Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952 (19 of 1952),
(vii) or, the Life Insurance Corporation of India established under section 3 of the
Life Insurance Corporation Act, 1956 (31 of 1956),
(viii) or, the Oil and Natural Gas Corporation Limited registered under the Companies
Act, 1956 (1 of 1956);
(ix) or, the Deposit Insurance and Credit Guarantee Corporation established under
section 3 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961
(47 of 1961), or the Central Warehousing Corporation established under section
3 of the Warehousing Corporations Act, 1962 (58 of 1962);
(x) or, the Unit Trust of India established under section 3 of the Unit Trust of India
Act, 1963 (52 of 1963);
(xi) or the Food Corporation of India established under section 3;
(xii) or a Board of Management established for two or more contiguous States under
section 16, of the Food Corporations Act, 1964 (37 of 1964);
(xiii) or the Airports Authority of India constituted under section 3 of the Airports
Authority of India Act, 1994 (55 of 1994);
(xiv) or a Regional Rural Bank established under section 3 of the Regional Rural
Banks Act, 1976 (21 of 1976);
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(xv) or the Export Credit and Guarantee Corporation Limited or the Industrial
Reconstruction Bank of India Limited, the National Housing Bank established
under section 3 of the National Housing Bank Act, 1987 (53 of 1987);
(xvi) or an air transport service, or a banking or an insurance company, a mine, an oil
field, a Cantonment Board, or a major port, the Central Government, and
(ii) in relation to any other industrial dispute, the State Government :
(aa) “arbitrator” includes an umpire;
(aaa) “average pay” means the average of the wages payable to a workman :
(i) in the case of monthly paid workman, in the three complete calendar months,
(ii) in the case of weekly paid workman, in the four complete weeks,
(iii) in the case of daily paid workman, in the twelve full working days, preceding the
date on which the average pay becomes payable if the workman had worked for
three complete calendar months or four complete weeks or twelve full working
days, as the case may be, and where such calculation cannot be made, the average
pay shall be calculated as the average of the wages payable to a workman during
the period he actually worked;
(b) “award” means an interim or a final determination of any industrial dispute or of any
question relating thereto by any Labour Court, Industrial Tribunal or National Industrial
Tribunal and includes an arbitration award made under section 10A;
(bb) “banking company” means a banking company as defined in section 5 of the 3Banking
Companies Act, 1949 (10 of 1949), having branches or other establishments in more than
one State, and includes the Export - Import Bank of India the Industrial Reconstruction
Bank of India, the Industrial Development Bank of India, the Small Industries
Development Bank of India established under section 3 of the Small Industries
Development Bank of India Act, 1989, the Reserve Bank of India, the State Bank of
India, a corresponding new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) a corresponding new
bank constituted under section 3 of the Banking Companies (Acquisition and Transfer
of Undertakings) Act, 1980 (40 of 1980), and any subsidiary bank, as defined in the State
Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(c) “Board” means a Board of Conciliation constituted under this Act;
(cc) “closure” means the permanent closing down of a place of employment or part thereof;
(d) “conciliation officer” means a conciliation officer appointed under this Act;
(e) “conciliation proceeding” means any proceeding held by a conciliation officer or Board
under this Act;




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(ee) “controlled industry” means any industry the control of which by the Union has been
declared by any Central Act to be expedient in the public interest;
(f) “Court” means a Court of Inquiry constituted under this Act;
(g) “employer” means:
(i) in relation to any industry carried on by or under the Authority of any department
of the Central Government or a State Government, the Authority prescribed in this
behalf, or where no Authority is prescribed, the head of the department;
(ii) in relation to an industry carried on by or on behalf of a local Authority, the Chief
Executive Officer of that Authority;
(h) “executive”, in relation to a trade union, means the body, by whatever name called, to
which the management of the affairs of the trade union is entrusted;
(i) a person shall be deemed to be “independent” for the purpose of his appointment
as the Chairman or other member of a Board, Court or Tribunal, if he is unconnected
with the industrial dispute referred to such Board, Court or Tribunal or with any
industry directly affected by such dispute:
Provided that no person shall cease to be independent by reason only of the fact
that he is a shareholder of an incorporated company which is connected with, or
likely to be affected by, such industrial dispute; but in such a case, he shall disclose
to the appropriate Government the nature and extent of the shares held by him in
such company;
(j) “industry” means any business, trade, undertaking, manufacture or calling of employers
and includes any calling, service, employment, handicraft, or industrial occupation or
avocation of workmen;
(k) “industrial dispute” means any dispute or difference between employers and employers,
or between employers and workmen, or between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or
with the conditions of labour, of any persons;
(ka) “Industrial establishment or undertaking” means an establishment or undertaking in
which any industry is carried on :
Provided that where several activities are carried on in an establishment or undertaking and
only one or some of such activities is or are an industry or industries, then (a) if any unit
of such establishment or undertaking carrying on any activity, being an industry, is
severable from the other unit or units of such establishment or undertaking, such unit shall
be deemed to be a separate industrial establishment or undertaking. (b) If the predominant
activity or each of the predominant activities carried on in such establishment or undertaking
or any unit thereof in an industry and the other activity or each of the other activities carried
CIA-11
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on in such establishment or undertaking or unit thereof is not severable from and is, for the
purpose of carrying on, or aiding the carrying on of, such predominant activity or activities,
the entire establishment or undertaking or, as the case may be, unit thereof shall be deemed
to be an industrial establishment or undertaking.
2A. DISMISSAL, ETC., OF AN INDIVIDUAL WORKMAN TO BE DEEMED TO BE AN
INDUSTRIAL DISPUTE
Where any employer discharges, dismisses, retrenches or otherwise terminates the services
of an individual workman, any dispute or difference between that workman and his employer
connected with, or arising out of, such discharge, dismissal, retrenchment or termination
shall be deemed to be an industrial dispute notwithstanding that no other workman nor any
union of workmen is a party to the dispute.
AUTHORITIES UNDER THIS ACT
3. WORKS COMMITTEE
(1) In the case of any industrial establishment in which one hundred or more workmen are
employed or have been employed on any day in the preceding twelve months, the
appropriate Government may by general or special order require the employer to
constitute in the prescribed manner a Works Committee consisting of representatives of
employers and workmen engaged in the establishment so however that the number of
representatives of workmen on the Committee shall not be less than the number of
representatives of the employer. The representatives of the workmen shall be chosen in
the prescribed manner from among the workmen engaged in the establishment and in
consultation with their trade union, if any, registered under the Indian Trade Unions
Act, 1926 (16 of 1926).
(2) It shall be the duty of the Works Committee to promote measures for securing
and preserving amity and good relations between the employer and workmen
and, to that end, to comment upon matters of their common interest or concern and
endeavour to compose any material difference of opinion in respect of such matters.
4. CONCILIATION OFFICERS
(1) The appropriate Government may, by notification in the Official Gazette, appoint such
number of persons as it thinks fit, to be conciliation officers, charged with the duty of
mediating in and promoting the settlement of industrial disputes.
(2) A conciliation officer may be appointed for a specified area or for specified industries
in a specified area or for one or more specified industries and either permanently or for
a limited period.
5. BOARDS OF CONCILIATION
(1) The appropriate Government may as occasion arises, by notification in the Official




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Gazette, constitute a Board of Conciliation for promoting the settlement of an industrial
dispute.
(2) A Board shall consist of a chairman and two or four other members, as the appropriate
Government thinks fit.
(3) The chairman shall be an independent person and the other members shall be persons
appointed in equal numbers to represent the parties to the dispute and any person
appointed to represent a party shall be appointed on the recommendation of that party:
Provided that, if any party fails to make a recommendation as aforesaid within the
prescribed time, the appropriate Government shall appoint such persons as it thinks fit
to represent that party.
(4) A Board, having the prescribed quorum, may act notwithstanding the absence of the
chairman or any of its members or any vacancy in its number:
Provided that if the appropriate Government notifies the Board that the services of the
chairman or of any other member have ceased to be available, the Board shall not act
until a new chairman or member, as the case may be, has been appointed.
6. COURTS OF INQUIRY
(1) The appropriate Government may as occasion arises by notification in the Official Gazette
constitute a Court of Inquiry for inquiring into any matter appearing to be connected
with or relevant to an industrial dispute.
(2) A court may consist of one independent person or of such number of independent
persons as the appropriate Government may think fit and where a court consists of two
or more members, one of them shall be appointed as the chairman.
(3) A court, having the prescribed quorum, may act notwithstanding the absence of the
chairman or any of its members or any vacancy in its number:
Provided that, if the appropriate Government notifies the court that the services of the
chairman have ceased to be available, the court shall not act until a new chairman has
been appointed.
7. LABOUR COURTS
(1) The appropriate Government may, by notification in the Official Gazette, constitute one
or more Labour Courts for the adjudication of industrial disputes relating to any matter
specified in the Second Schedule and for performing such other functions as may be
assigned to them under this Act.
(2) A Labour Court shall consist of one person only to be appointed by the appropriate
Government.
(3) A person shall not be qualified for appointment as the presiding officer of a Labour
Court, unless -
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(a) he is, or has been, a Judge of a High Court; or
(b) he has, for a period of not less than three years, been a District Judge or an Additional
District Judge; or
(d) he has held any judicial office in India for not less than seven years; or
(e) he has been the presiding officer of a Labour Court constituted under any Provincial
Act or State Act for not less than five years.
COMMENTS
This section relates to the constitution of the Labour Court for adjudication of industrial
disputes relating to any matter specified in the Second Schedule; Jagdish Narain Sharma v.
Rajasthan Patrika Ltd., 1994 LLR 265 (Raj).
7A. TRIBUNALS
(1) The appropriate Government may, by notification in the Official Gazette, constitute one
or more Industrial Tribunals for the adjudication of industrial disputes relating to any
matter, whether specified in the Second Schedule or the Third Schedule and for
performing such other functions as may be assigned to them under this Act.
(2) A Tribunal shall consist of one person only to be appointed by the appropriate
Government.
(3) A person shall not be qualified for appointment as the presiding officer of a Tribunal
unless:
(a) he is, or has been, a Judge of a High Court; or
(aa) he has, for a period of not less than three-years, been a District Judge or an Additional
District Judge;
(4) The appropriate Government may, if it so thinks fit, appoint two persons as assessors
to advise the Tribunal in the proceeding before it.
COMMENTS
Section 7A empowers the appropriate Government to constitute one or more Industrial
Tribunals for adjudication of the disputes relating to any matter specified in the Schedules.
The Second Schedule enumerates the matters which fall within the jurisdiction of the Labour
Court. The Third Schedule enumerates the matters which fall within the jurisdiction of the
Industrial Tribunal; Jagdish Narain Sharma v. Rajasthan Patrika Ltd., 1994 LLR 265 (Raj).
7B. NATIONAL TRIBUNALS
(1) The Central Government may, by notification in the Official Gazette, constitute one or
more National Industrial Tribunals for the adjudication of industrial disputes which, in
the opinion of the Central Government, involve questions of national importance or are




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of such a nature that industrial establishments situated in more than one State are likely
to be interested in, or affected by, such disputes.
(2) A National Tribunal shall consist of one person only to be appointed by the Central
Government.
(3) A person shall not be qualified for appointment as the presiding officer of a National
Tribunal unless he is, or has been, a judge of a High Court.
(4) The Central Government may, if it so thinks fit, appoint two persons as assessors to
advise the National Tribunal in the proceeding before it.
7C. DISQUALIFICATIONS FOR THE PRESIDING OFFICERS OF LABOUR COURTS,
TRIBUNALS AND NATIONAL TRIBUNALS
No person shall be appointed to, or continue in, the office of the presiding officer of a Labour
Court, Tribunal or National Tribunal, if—
(a) he is not an independent person; or
(b) he has attained the age of sixty-five years.
If, for any reason a vacancy (other than a temporary absence) occurs in the office of the
presiding officer of a Labour Court, Tribunal or National Tribunal or in the office of the
Chairman or any other member of a Board or court, then, in the case of a National Tribunal,
the Central Government and in any other case, the appropriate Government, shall appoint
another person in accordance with the provisions of this Act to fill the vacancy, and the
proceeding may be continued before the Labour Court, Tribunal, National Tribunal, Board
or Court, as the case may be, from the stage at which the vacancy is filled.
9. FINALITY OF ORDERS CONSTITUTING BOARDS, ETC
(1) No order of the appropriate Government or of the Central Government appointing any
person as the Chairman or any other member of a Board or Court or as the presiding
officer of a Labour Court, Tribunal or National Tribunal shall be called in question in
any manner; and no act or proceeding before any Board or Court shall be called in
question in any manner on the ground merely of the existence of any vacancy in, or
defect in the constitution of, such Board or Court.
(2) No settlement arrived at in the course of a conciliation proceeding shall be invalid by
reason only of the fact that such settlement was arrived at after the expiry of the period
referred to in sub-section (6) of section 12 or sub-section (5) of section 13, as the case
may be.
(3) Where the report of any settlement arrived at in the course of conciliation proceeding
before a Board is signed by the chairman and all the other members of the Board, no
such settlement shall be invalid by reason only of the casual or unforeseen absence of
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any of the members (including the Chairman) of the Board during any stage of the
proceeding.
9A. NOTICE OF CHANGE
No, employer, who proposes to effect any change in the conditions of service applicable to
any workman in respect of any matter specified in the Fourth Schedule, shall effect such
change,
(a) without giving to the workmen likely to be affected by such change a notice in the
prescribed manner of the nature of the change proposed to be effected; or
(b) within twenty-one days of giving such notice:
Provided that no notice shall be required for effecting any such change—
(a) where the change is effected in pursuance of any settlement or award; or
(b) where the workmen likely to be affected by the change are persons to whom the
Fundamentals and Supplementary Rules, Civil Services (Classification, Control and
Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave rules, Civil
Service Regulations, Civilians in Defence Services (Classification, Control and Appeal)
Rules or the Indian Railway Establishment Code or any other rules or regulations
that may be notified in this behalf by the appropriate Government in the official
Gazette, apply.
9B. POWER OF GOVERNMENT TO EXEMPT
Where the appropriate Government is of opinion that the application of the provisions of
section 9A to any class of industrial establishments or to any class of workmen employed
in any industrial establishment affect the employers in relation thereto so prejudicially that
such application may cause serious repercussion on the industry concerned and that public
interest so requires, the appropriate Government may, by notification in the Official Gazette,
direct that the provisions of the said section shall not apply or shall apply, subject to such
conditions as may be specified in the notification, to that class of industrial establishments
or to that class of workmen employed in any industrial establishment.*
10. REFERENCE OF DISPUTES TO BOARDS, COURTS OR TRIBUNALS
(1) Where the appropriate Government is of opinion that any industrial dispute exists or
is apprehended, it may at any time, by order in writing :
(a) Refer the dispute to a Board for promoting a settlement thereof; or
(b) Refer any matter appearing to be connected with or relevant to the dispute to a
court for inquiry; or
(c) Refer the dispute or any matter appearing to be connected with, or relevant to, the




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dispute, if it relates to any matter specified in the Second Schedule, to a Labour
court for adjudication; or
(d) Refer the dispute or any matter appearing to be connected with, or relevant to, the
dispute, whether it relates to any matter specified in the Second Schedule or the
Third Schedule, to a Tribunal for adjudication :
Provided that where the dispute relates to any matter specified in the Third Schedule and
is not likely to affect more than one hundred workmen, the appropriate Government may,
if it so thinks fit, make the reference to a Labour Court under clause (c):
Provided further that where the dispute relates to a public utility service and a notice under
section 22 has been given, the appropriate Government shall, unless it considers that the
notice has been frivolously or vexatiously given or that it would be inexpedient so to do,
make a reference under this sub-section notwithstanding that any other proceedings under
this Act in respect of the dispute may have commenced:
Provided also that where the dispute in the relation to which the Central Government is the
appropriate Government, it shall be competent for the Government to refer the dispute to
a Labour Court or an Industrial Tribunal, as the case may be, constituted by the State
Government.
(1A)Where the Central Government is of opinion that any industrial dispute exists or is
apprehended and the dispute involves any question of national importance or is of such
a nature that industrial establishments situated in more than one State are likely to be
interested in, or affected by, such dispute and that the dispute should be adjudicated
by a National Tribunal, then, the Central Government may, whether or not it is the
appropriate Government in relation to that dispute, at any time, by order in writing,
refer the dispute or any matter appearing to be connected with, or relevant to, the
dispute, whether it relates to any matter specified in the Second Schedule or the Third
Schedule, to a National Tribunal for adjudication.
(2) Where the parties to an industrial dispute apply in the prescribed manner, whether
jointly or separately, for a reference of the dispute to a Board, Court, Labour Court,
Tribunal or National Tribunal, the appropriate Government, if satisfied that the persons
applying represent the majority of each party, shall make the reference accordingly.
(2A)An order referring an industrial dispute to a Labour Court, Tribunal or National Tribunal
under this section shall specify the period within which such Labour Court, Tribunal or
National Tribunal shall submit its award on such dispute to the appropriate Government:
Provided that where such industrial dispute is connected with an individual workman, no
such period shall exceed three months:
Provided further that where the parties to an industrial dispute apply in the person entitled,
be recovered by that Government in the same manner as an arrear of land revenue.
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(8) Every Labour Court, Tribunal or National Tribunal shall be deemed to be Civil Court
for the purposes of sections 345, 346 and 348 of the Code of Criminal Procedure, 1973
(2 of 1974).
10A. VOLUNTARY REFERENCE OF DISPUTES TO
ARBITRATION
(1) Where any industrial dispute exists or is apprehended and the employer and the
workmen agree to refer the dispute to arbitration, they may, at any time before the
dispute has been referred under section 10 to a Labour Court or Tribunal or National
Tribunal, by a written agreement, refer the dispute to arbitration and the reference shall
be to such person or persons (including the presiding officer of a Labour Court or
Tribunal or National Tribunal) as an arbitrator or arbitrators as may be specified in the
arbitration agreement.
(1A)Where an arbitration agreement provides for a reference of the dispute to an even
number of arbitrators, the agreement shall provide for the appointment of another
person as umpire who shall enter upon the reference, if the arbitrators are equally
divided in their opinion, and the award of the umpire shall prevail and shall be deemed
to be the arbitration award for the purpose of this Act.
(2) An arbitration agreement referred to in sub-section (1) shall be in such form and shall
be signed by the parties thereto in such manner as may be prescribed.
(3) A copy of the arbitration agreement shall be forwarded to the appropriate Government
and the conciliation officer and the appropriate Government shall, within one month
from the date of the receipt of such copy, publish the same in the Official Gazette.
(3A)Where an industrial dispute has been referred to arbitration and the
appropriate Government is satisfied that the persons making the reference represent the
majority of each party, the appropriate Government may, within the time referred to in
sub-section (3), issue a notification in such manner as may be prescribed; and when any
such notification is issued, the employers and workmen who are not parties to the
arbitration agreement but are concerned in the dispute, shall be given an opportunity
of presenting their case before the arbitrator or arbitrators.
(4) The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate
Government the arbitration award signed by the arbitrator or all the arbitrators, as the
case may be.
(4A)Where an industrial dispute has been referred to arbitration and a
notification has been issued under sub-section (3A), the appropriate Government may,
by order, prohibit the continuance of any strike or lock-out in connection with such
dispute which may be in existence on the date of the reference.




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(5) Nothing in the Arbitration Act, 1940 (10 of 1940) shall apply to arbitrations under this
section.
PROCEDURE, POWERS AND DUTIES OF AUTHORITIES
11. PROCEDURE AND POWER OF CONCILIATION OFFICERS, BOARDS, COURTS
AND TRIBUNALS
(1) Subject to any rules that may be made in this behalf, an arbitrator, a Board, Court,
Labour Court, Tribunal or National Tribunal shall follow such procedure as the arbitrator
or other authority concerned may think fit.
(2) A conciliation officer or a member of a Board, or court or the presiding officer of a
Labour Court, Tribunal or National Tribunal may for the purpose of inquiry into any
existing or apprehended industrial dispute, after giving reasonable notice, enter the
premises occupied by any establishment to which the dispute relates.
(3) Every Board, Court, Labour Court, Tribunal and National Tribunal shall have the same
powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of
1908), when trying a suit, in respect of the following matters, namely :
(a) enforcing the attendance of any person and examining him on oath;
(b) compelling the production of documents and material objects;
(c) issuing commissions for the examination of witnesses;
(d) in respect of such other matters as may be prescribed, and every inquiry or
investigation by a Board, Court, Labour Court, Tribunal or National Tribunal shall
be deemed to be a judicial proceeding within the meaning of sections 193 and 228
of the Indian Penal Code (45 of 1860).
(4) A conciliation officer may enforce the attendance of any person for the purpose of
examination of such person or call for and inspect any document which he has ground
for considering to be relevant to the industrial dispute or to be necessary for the purpose
of verifying the implementation of any award or carrying out any other duty imposed
on him under this Act, and for the aforesaid purposes, the conciliation officer shall have
the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908
(5 of 1908), in respect of enforcing the attendance of any person and examining him or
of compelling the production of documents.
(5) A Court, Labour Court, Tribunal or National Tribunal may, if it so thinks fit, appoint
one or more persons having special knowledge of the matter under consideration as an
assessor or assessors to advise it in the proceeding before it.
(6) All conciliation officers, members of a Board or Court and the presiding officers of a
Labour Court, Tribunal or National Tribunal shall be deemed to be public servants
within the meaning of section 21 of the Indian Penal Code (45 of 1860).
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(7) Subject to any rules made under this Act, the costs of, and incidental to, any proceeding
before a Labour Court, Tribunal or National Tribunal shall be in the discretion of that
Labour Court, Tribunal or National Tribunal and the Labour Court, Tribunal or National
Tribunal, as the case may be, shall have full power to determine by and to whom and
to what extent and subject to what conditions, if any, such costs are to be paid, and to
give all necessary directions for the purposes aforesaid and such costs may, on application
made to the appropriate Government by the person entitled, be recovered by that
Government in the same manner as an arrear of land revenue.
(8) Every Labour Court, Tribunal or National Tribunal shall be deemed to be Civil Court
for the purposes of sections 345, 346 and 348 of the Code of Criminal Procedure, 1973
(2 of 1974).
11A. POWERS OF LABOUR COURTS, TRIBUNALS AND NATIONAL TRIBUNALS TO
GIVE APPROPRIATE RELIEF IN CASE OF DISCHARGE OR DISMISSAL OF
WORKMEN
Where an industrial dispute relating to the discharge or dismissal of a workman has been
referred to a Labour Court, Tribunal or National Tribunal for adjudication and, in the course
of the adjudication proceedings, the Labour Court, Tribunal or National Tribunal, as the case
may be, is satisfied that the order of discharge or dismissal was not justified, it may, by its
award, set aside the order of discharge or dismissal and direct re-instatement of the workman
on such terms and conditions, if any, as it thinks fit, or give such other relief to the workman
including the award of any lesser punishment in lieu of discharge or dismissal as the
circumstances of the case may require:
Provided that in any proceeding under this section the Labour Court, Tribunal or National
Tribunal, as the case may be, shall rely only on the materials on record and shall not take
any fresh evidence in relation to the matter.
COMMENTS
(i) The power under section 11A is akin to appellate power. The competent adjudicating
Authority has jurisdiction to interfere with the quantum of punishment even in cases
where finding of guilt recorded by the employer is upheld or in the case of no enquiry
or defective enquiry; Vidya Dhar v. The Hindustan Copper Ltd., 1994 LLR 229 (Raj).
(ii) Once the misconduct is established, the maximum punishment stipulated therefor can
be awarded. However, the Labour Court has full discretion to award lesser punishment;
Hindalco Workers Union v. Labour Court, 1994 LLR 379 (All).
(iii) The order of termination of services of a workman operates prospectively from the date
on which it was passed; Kumaon Motor Owner’s Union Ltd. v. State of U.P., 1994 LLR 366
(All.).
(iv) Labour Court has powers under section 11A of the Act to evaluate the gravity of the




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misconduct for the imposition of punishment on workman (who was found sleeping
while on duty) and exercise its discretion; Management, Lakshmi Machine Works Ltd. v.
P.O. Labour Court, Coimbatore, 1948 LLR 368.
12. DUTIES OF CONCILIATION OFFICERS
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or
where the dispute relates to a public utility service and a notice under section 22 has
been given, shall, hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of
the dispute without delay, investigate the dispute and all matters affecting the merits
and right settlement thereof and may do all such things as he thinks fit, for the purpose
of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the
course of the conciliation proceedings, the conciliation officer shall send a report thereof
to the appropriate Government or an officer authorised in this behalf, by the appropriate
Government together with a memorandum of the settlement signed by the parties to the
dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable
after the close of the investigation, send to the appropriate Government a full report
setting forth the steps taken by him for ascertaining the facts and circumstances relating
to the dispute and for bringing about a settlement thereof, together with a full statement
of such facts and circumstances, and the reasons on account of which, in his opinion,
a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub-section (4), the appropriate
Government is satisfied that there is a case for reference to a Board, Labour Court,
Tribunal or National Tribunal, it may make such reference. Where the appropriate
Government does not make such a reference it shall record and communicate to the
parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement
of the conciliation proceedings or within such shorter period as may be fixed by the
appropriate Government:
Provided that, subject to the approval of the conciliation officer, the time for the
submission of the report may be extended by such period as may be agreed upon in
writing by all the parties to the dispute.
COMMENTS
(i) The appropriate Government acting under section 10 or section 12(5) of the Act has no
power to decide the merits of the controversy. It can only determine whether dispute
exists or not; Sukhbir Singh v. Union of India, 1994 LLR 375 (Del).
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(ii) According to section 12(5) of the Act, the appropriate Government, while rejecting the
request for reference of the dispute to the Industrial Tribunal, is obliged to give reasons;
Sukhbir Singh v. Union of India, 1994 LLR 375 (Del).
13. DUTIES OF BOARD
(1) Where a dispute has been referred to a Board under this Act, it shall be the duty of the
Board to endeavour to bring about a settlement of the same and for this purpose the
Board shall, in such manner as it thinks fit and without delay, investigate the dispute
and all matters affecting the merits and the right settlement thereof and may do all such
things as it thinks fit for the purpose of inducing the parties to come to a fair and
amicable settlement of the dispute.
(2) If a settlement of the dispute or of any of the matters in dispute is arrived at in the
course of the conciliation proceedings, the Board shall send a report thereof to the
appropriate Government together with a memorandum of the settlement signed by the
parties to the dispute.
(3) If no such settlement is arrived at, the Board shall, as soon as practicable after the close
of the investigation, send to the appropriate Government a full report setting for the
proceedings and steps taken by the Board for ascertaining the facts and circumstances
relating to the dispute and for bringing about a settlement thereof, together with a full
statement of such facts and circumstances, its findings thereon, the reasons on account
of which, in its opinion, a settlement could not be arrived at and its recommendations
for the determination of the dispute.
(4) If, on the receipt of a report under sub-section (3) in respect of a dispute relating to a
public utility service, the appropriate Government does not make a reference to a Labour
Court, Tribunal or National Tribunal under section 10, it shall record and communicate
to the parties concerned its reasons therefor.
(5) The Board shall submit its report under this section within two months of the date on
which the dispute was referred to it or within such shorter period as may be fixed by
the appropriate Government:
Provided that the appropriate Government may from time to time extend the time for
the submission of the report by such further periods not exceeding two months in the
aggregate:
Provided further that the time for the submission of the report may be extended by such
period as may be agreed on in writing by all the parties to the dispute.
14. DUTIES OF COURTS
A Court shall inquire into the matters referred to it and report thereon to the appropriate
Government ordinarily within a period of six months from the commencement of its inquiry.
15. DUTIES OF LABOUR COURTS, TRIBUNALS AND NATIONAL TRIBUNALS
Where an industrial dispute has been referred to a Labour Court, Tribunal or National




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Tribunal for adjudication, it shall hold its proceedings expeditiously and shall, within the
period specified in the order referring such industrial dispute or the further period extended
under the second proviso to sub-section (2A) of section 10, submit its award to the appropriate
Government.
16. FORM OF REPORT OR AWARD
(1) The report of a Board or Court shall be in writing and shall be signed by all the
members of the Board or Court, as the case may be :
Provided that nothing in this section shall be deemed to prevent any member of the
Board or Court from recording any minute of dissent from a report or from any
recommendation made therein.
(2) The award of a Labour Court or Tribunal or National Tribunal shall be in writing and
shall be signed by its presiding officer.
17. PUBLICATION OF REPORTS AND AWARDS
(1) Every report of a Board or Court together with any minute of dissent recorded therewith,
every arbitration award and every award of a Labour Court, Tribunal or National
Tribunal shall, within a period of thirty days from the date of its receipt by the appropriate
Government, be published in such manner as the appropriate Government thinks fit.
(2) Subject to the provisions of section 17A, the award published under sub-section (1) shall
be final and shall not be called in question by any court in any manner whatsoever.
17A. COMMENCEMENT OF THE AWARD
(1) An award (including an arbitration award) shall become enforceable on the expiry of
thirty days from the date of its publication under section 17:
Provided that
(a) if the appropriate Government is of opinion, in any case where the award has been
given by a Labour Court or Tribunal in relation to an industrial dispute to which
it is a party; or
(b) if the Central Government is of opinion, in any case where the award has been
given by a National Tribunal, that it will be inexpedient on public grounds affecting
national economy or social justice to give effect to the whole or any part of the
award, the appropriate Government, or as the case may be, the Central Government
may, by notification in the Official Gazette, declare that the award shall not become
enforceable on the expiry of the said period of thirty days.
(2) Where any declaration has been made in relation to an award under the proviso to subsection
(1), the appropriate Government or the Central Government may, within ninety
days from the date of publication of the award under section 17, make an order rejecting
or modifying the award, and shall, on the first available opportunity, lay the award
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together with a copy of the order before the Legislature of the State, if the order has
been made by a State Government, or before Parliament, if the order has been made by
the Central Government.
(3) Where any award as rejected or modified by an order made under sub-section (2) is laid
before the Legislature of a State or before Parliament, such award shall become
enforceable on the expiry of fifteen days from the date on which it is so laid; and where
no order under sub-section (2) is made in pursuance of a declaration under the proviso
to sub-section (1), the award shall become enforceable on the expiry of the period of
ninety days referred to in sub-section (2).
(4) Subject to the provisions of sub-section (1) and sub-section (3) regarding the enforceability
of an award, the award shall come into operation with effect from such date as may be
specified therein, but where no date is so specified, it shall come into operation on the
date when the award becomes enforceable under sub-section (1) or sub-section (3), as
the case may be.
COMMENTS
Held, Industrial Tribunal retains its jurisdiction to deal with an application for setting aside
an ex parte award only until the expiry of 30 days from publication of the award. Thereafter,
tribunal is relegated to the position of functus officio; Ranigunj Chemical Works v. Learned Judge,
Fourth Industrial Tribunal, 1998 LLR 475
17B. PAYMENT OF FULL WAGES TO WORKMAN PENDING PROCEEDINGS IN
HIGHER COURTS
Where in any case, a Labour Court, Tribunal or National Tribunal by its award directs
reinstatement of any workman and the employer prefers any proceedings against such
award in a High Court or the Supreme Court, the employer shall be liable to pay such
workman, during the period of pendency of such proceedings in the High Court or the
Supreme Court, full wages last drawn by him, inclusive of any maintenance allowance
admissible to him under any rule if the workman had not been employed in any establishment
during such period and an affidavit by such workman had been filed to that effect in such
court:
Provided that where it is proved to the satisfaction of the High Court or the
Supreme Court that such workman had been employed and had been receiving
adequate remuneration during any such period or part thereof, the court shall order that no
wages shall be payable under this section for such period or part, as the case may
be.
(i) it is commenced or declared in contravention of section 22 or section 23; or
(ii) it is continued in contravention of an order made under sub-section (3) of section
10 or sub-section (4A) of section 10A.




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(2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced
and is in existence at the time of the reference of the dispute to a Board, an arbitrator,
a Labour Court, Tribunal or National Tribunal, the continuance of such strike or lockout
shall not be deemed to be illegal, provided that such strike or lock-out was not at
its commencement in contravention of the provisions of this Act or the continuance
thereof was not prohibited under sub-section (3) of section 10 or sub-section (4A) of
section 10A
(3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence
of an illegal lock-out shall not be deemed to be illegal.

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