Appropriate Govt Cannot Refuse To Make Reference U/S 10 Industrial Disputes Act On Ground Of Delay: Rajasthan High Court

The Rajasthan High Court at Jaipur has held that appropriate Government cannot refuse to make a Reference under Section 10 of the Industrial Disputes Act, 1947 on the ground of delay and latches.

It therefore quashed and set aside an order by which the appropriate Government had refused to make Reference to the Labour Court on the ground that the petitioner-workman raised the dispute after 24 years of his termination.

The single judge bench comprising Justice Anoop Kumar Dhand observed:

“…it is clear that the delay and latches itself cannot be a ground for refusing to make a Reference. If a person is guilty of delay and latches, it may be a ground for the Labour Court, either to refuse to grant any relief or refuse to grant relief of back wages. The Government cannot take up the role of an Adjudicating Authority while deciding the question as to whether a Reference should be made or not.”

The petitioner said he was engaged as a ‘Beldar’ in 1985 and continued to work on that post until he was terminated from service on December 28, 1986 orally, without any notice or payment of one month’s wages. After reconciliation proceedings failed, the matter was referred to the appropriate Government in July 2011. However, the appropriate Government refused to refer this dispute to the Labour Court/ Industrial Tribunal on the ground of delay and latches saying the dispute was referred after a delay of 24 years and no reasonable explanation was given by the workman for this inordinate delay. The appropriate Government treated the claim as ‘Stale Claim’ vide its order dated December 19, 2011.

Aggrieved, the petitioner approached the High Court.

The Counsel appearing for the petitioner submitted that no limitation has been prescribed under the ID Act for raising an industrial dispute and seeking reference under the Act. It was further submitted that the provision under Article 137 of the Limitation Act, 1963 are not applicable to applications submitted under the ID Act.

The legal issues before the Court were as follows:

1. Whether appropriate Government can refuse to make a Reference under Section 10 of the Industrial Disputes Act, 1947 on the ground of delay and latches?
2. Whether the Government can take up the role of Adjudicating Authority while deciding the question as to whether a Reference be made or not?

The Court noted that as per Section 10 of the ID Act, no limitation has been prescribed for raising demand by the workman and seeking Reference.

While placing reliance on various judgements of the Supreme Court on the issue, the Court observed that it is not open for the appropriate Government to travel beyond the intention of the legislature and it could not be presumed that the legislature has committed mistake in not providing limitation period while interpreting the statutory provision.

The Court further noted that it would not be open for the appropriate Government, while exercising the powers under Section 10 (1) of the Act to decide the question whether the claim of the workman is stale or not.

The Court opined, “While referring the dispute, the appropriate Government can formulate the question of ‘Delay & Latches’ to be decided by the Labour Court as a preliminary issue while simultaneously also making a reference on the industrial dispute to be decided on secondary issue.”

Thus, the Court quashed and set aside the impugned order and directed the Government to make a Reference of the dispute.

Case Title: Gopiram Yadav v. State of Rajasthan & Ors.

Citation: 2023 LiveLaw (Raj) 80

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