Industrial Disputes Act, 1947 along with commentary
Industrial Disputes Act, 19471
[Act, No. 14 of 1947]
[17th March, 1947]
Preamble
An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.
WHEREAS it is expedient to make provision for the investigation and settlement of industrial disputes, and for certain other purposes hereinafter appearing:
It is hereby enacted as follows:--
Footnote:
1. For Statement of Objects and Reasons see Gazette of India, 1947, Pt, V, pp. 239-240, for Report of Select Committee, see Gazette of India 1947, Pt. V, pp. 33-35.
This Act has been extended to Goa, Daman and Diu by Reg. 12 of 1962, section 3 and Schedule, to Pondicherry by Regulation 7 of 1963, section 3 and Schedule I and to Laccadive, Minicoy and Amindivi Islands by Regulation 8 of 1965, section 3 and Schedule.
Chapter: I -- Preliminary
Section 1 - Short title, extent and commencement
(1) This Act may be called The Industrial Disputes Act, 1947.
1 [(2) It extends to the whole of India.]
2 [***]
(3) It shall come into force on the first day of April, 1947.
Commentary
The Industrial Disputes Act is a Central Act and the Central Government were empowered to legislate upon such a topic by reason of Item 29 of List III of Schedule VII to the Government of India Act which reads: "Trade union; industrial and labour disputes". Even If a dispute between the employees of a municipality and the municipality could not be regarded as an industrial dispute as that phrase is used in Item 29 of List III, it would clearly be a labour dispute which, ordinarily, means a dispute between the employers and employees and the Central Government could legislate concerning such a dispute.
The main object of the Industrial Disputes Act, 1947 is the settlement of disputes between an employer and his employees in the interest of industrial peace and it does not purport to be an Act dealing with the powers of the municipality. In dealing with industrial disputes it does trespass to some extent upon a provincial subject, namely, the powers of a municipality. But from this, it cannot be inferred that the Industrial Disputes Act, 1947 in so far as it empowers the Tribunal to interfere with the powers of the Chairman of a municipality to appoint or dismiss employees, is void and inoperative. The Industrial Disputes Act in pith and substance deals with industrial disputes included in Item 29 of the Concurrent Legislative List in the Seventh Schedule to the Government of India Act, 1935. Therefore even if it incidentally trenches upon a matter reserved for the Provincial Legislature, namely, powers of municipal corporation, it must e regarded as valid.
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Footnotes:
1. Substituted by Act 36 of 1956, section 2, for sub-section (2) (w.e.f. 29-8-1956).
2. Proviso omitted by Act 51 of 1970, section 2 and Schedule (w.e.f. 1-9-1971).
Section 2 - Definitions
In this Act, unless there is anything repugnant in the subject or context,--
(a) "appropriate Government" means--
(i) in relation to any industrial dispute concerning 1 [* * *] any industry carried on by or under the authority of the Central Government, 2 [* * *] or by a railway company 3 [or concerning any such controlled industry as may be specified in this behalf by the Central Government] 4 [* * *] or in relation to an industrial dispute concerning 5 [6 [7 [8 [a Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), or 9 [the Industrial Finance Corporation of India Limited formed and registered under the Companies Act, 1956 (1 of 1956)] or the Employees' State Insurance Corporation established under section 3 of the Employees' State Insurance Act, 1948 (34 of 1948), 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), 10 [***] or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or 11 [the Oil and Natural Gas Corporation Limited registered under the Companies Act, 1956 (1 of 1956)], 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), or the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963), or the Food Corporation of India established under section 3, or a Board of Management established for two or more contiguous States under section 16, of the Food Corporations Act, 1964 (37 of 1964), or 11 [the Airports Authority of India constituted under section 3 of the Airports Authority of India Act, 1994 (55 of 1994)], or a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976), or the Export Credit and Guarantee Corporation Limited or the Industrial Reconstruction Bank of India Limited], 12 [the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987)], or 13 [11 [an air transport service, or a banking or an insurance company,] a mine, an oil field,] 14 [a Cantonment Board,] or a 58[major port, any company in which not less than fifty-one per cent. of the paid-up share capital is held by the Central Government, or any corporation, not being a corporation referred to in this clause, established by or under any law made by Parliament, or the Central public sector undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the Central Government, the Central Government, and]]
59[(ii) in relation to any other industrial dispute, including the State public sector undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the State Government, the State Government:
Provided that in case of a dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment.]
Commentary
The Industrial Disputes Act, 1947 came into force with effect from 1st April, 1947. The term "appropriate Government" was defined in Section 2(a). However, sub-clause (i) of clause (a) came to be amended in the year 1949 by the amendment Act 54 of 1949, whereby in relation to any industrial dispute concerning a "Banking Company" or Insurance Company, the Central Government was declared to be the "appropriate Government". Simultaneously, Section 2(bb) was inserted by the same Act, defining the "Banking Company". Needless to say, it is only those banking companies which fall within the ambit of the definition in the said provision that the Central Government would be the appropriate government. With respect to other banking companies, the State Government, in which the bank is situated, would be the appropriate government in terms of sub-clause (ii) of clause (a) of Section 2 of the Act.
From a bare reading of the Section it is clear that in order to fall within the meaning of this definition, a "Banking Company" has to satisfy two requirements, viz:
(i) it should be a "Banking Company" as defined in Section 5 of the Banking Companies Act, 1949 and
(ii) it should have branches or other establishments in more than one State.
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14 [(aa) "arbitrator" includes an umpire;]
15 [16 [(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;]
State Amendment
17 Rajasthan
In section 2, after clause (aa), now re-lettered as clause (aaa), insert the following clauses, namely,--
"(aaa) 'arbitration proceeding' means--
(i) any proceeding under Chapter IIIA of this Act before an arbitrator, or (ii) any proceeding before an Industrial Tribunal in arbitration;
(aaaa) 'arbitrator' means an arbitrator to whom a dispute is referred for arbitration under the provisions of Chapter IIIA of this Act and includes an umpire."
18 [(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;]
State Amendment
19 Rajasthan
In section 2, in clause (b), for the words, figures and letter "under section 10A", substitute the words, figures and letter "under Chapter IIIA".
20 [(bb) "banking company" means a banking company as defined in section 5 of the 21 Banking Companies Act, 1949 (10 of 1949), having branches or other establishments in more than one State, and includes 22 [the Export-Import Bank of India] 23 [the Industrial Reconstruction Bank of India,] 24 [***], 25 [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, 26[a corresponding new bank constituted under section 3 of the...
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