0  09 Apr, 1951
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The United Commercial Bank Ltd. Vs. Their Workmen

  Supreme Court Of India Civil Appeal/35/1951
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380 SUPREME COURT REPORTS [1951)

10

51

of the village, their rights under the custom should

Ram Doon LU r.ev~ve as soon as. the rive~ come~ .down within the

amt other. limits of mouza S1kha. This position certainly has

v. got to be admitted but as we are concerned with the

Radh' Sham state of affair£ existing at the date of the institution of

and Other•. the suit and there is no evidence on the record as to

the position of

the river at the present moment, the

J1.ukherjea J,

1951

AJ>Til 9.

plaintiff will be entitled to a decree in the form as it

was given by the trial judge, it being clearly under­

stood that the rights declared in this suit would be

subject to the custom of Dhrtr Dhura which the defend­

ants may invoke if and when the proper occasion arises.

Subject to this observation, we allow the appeal and

restore the judgment of the trial judge. The plaintiff

No. I wiJI be entitled to his costs.

Appeal allowed.

Agent for the appellants: R. S. Narula.

Agent for the respondents : Tarachand Brijmohan

Lal.

THE

UNITED COMMERCIAL BANK LTD.

v.

THEIR WORKMEN

(and other cases)

UNION OF INDIA-Intervener.

[SHRI HARILAL KANIA C.J ., SA!YID FAZL Au,

PATANJALI SASTRI, MEHR CHAND MAHAJAN,

MUKHERJEA: S.R. DAS and VIVIAN BOSE JJ.J

Industrial Disputes Act (XTV of 1947), ss. 7, 8, 12, 16-Rules

under the Act, R. 5-Constitution of Tribunal of three membcrs­

Absence of one of three members on other duty-Absent member

rejoining after

some time-Validity of awards made during

his

absence by the two remaining members, and by all of them after

he rejoined-Construction and effect of ss. 7, 8, 12 and Rule ~.

The Central Government constituted an Industrial Tribunal

under the Industrial Disputes Act,

1947, consisting of A, B, and

C

 

     



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386 SUPREME COURT REPORTS [195

1961 5. (1) "The appropriate Government may as

occasion arises by notification in the official Gazette

~=~~;:.~ constitute a Board of Conciliation for promoting the

Bank Ltd. settlement of an industrial dispute·.

v. • (2) A Board shall consist of a chairman and two or

Their Workmen. four other members, as the appropriate Government

thinks fit.

Kania 0. J. .

(3) The chairman shal~ be an independent . pers~n

and the other members shall be persons appomted m

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 :

* * *

(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 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.

(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.

(1)

"The appropriate Government may con­

stitute one or more Industrial Tribunals for the

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S.C.R. SUPREME COURT REPORTS 389

remaining members of the Board to act, when all of rn51

them are not acting together. The proviso thus makes

it clear that when the serviees of a chairman or member ~=:~;r~;~

have ceased to be available and that fact has been Bank Ltd.

notified to the Board by the appropriate Government, v.

the remaining members have no jurisdiction to act in Their Workmen.

the name of the Board. Thus all the contingencies of K ~

temporary or casual absence. as well as permanent ania · J.

vacancy, and the contingency of the chairman or a

member's services having ceased to be available

·are contemplated and provided for. In the same way

and in the same terms, provision is made in respect

of the Court of Inquiry in section 6

(3). The pro­v·isions as regards the Tribunal are found in sec­

tion 7. No other section deals with the establishment

of the Tribunal. The first clause empowers the

appropriate Government to constitute one or more

industrial tribunals having the functions allotted

to

it under the

Ad. Sub clause (2) provides that

a Tribunal shall consist of such number of members

as the appropriate Government thinks fit. This

clause therefore authorizes the appropriate Govern

ment to fix the number of members which will

constitute the Tribunal. Sub-clause

(3) and the proviso

deal with

the qualifications of individuals to be

members with which

we are not concerned. Although

in this section there is

no provision like sections 5 (I)

and 6 (1) requiring a notification of the constitution of

the Tribunal in the official Gazette, the deficiency is

made up by rule 5 of the Industrial Disputes Rules,

1949, framed by the Government under section 38 of

the Act. The rule provides

that the appointment of a

Board, Court or Tribunal

"together with the names of

the persons constituting the Board, Court or Tribunal"

shall be notified in the official Gazette. It is therefore

obligatory on the appropriate Government to notify

the composition

of the Tribunal and also the names

of the persons constituting the same. In respect of a

TriOunal which is entrusted with the work of adjudi­

cating upon disputes between employers and employees

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396 SUPREME COURT REPORTS [1951]

1

9~1 cannot be seriously disputed that in the event of the

The United Government deciding to fill up the vacancy, a notifica­

Oommercial tion had to be issued. The question is, why and under

Bank Ltd. what rule? The answer clearly is that they had to do

v. it because of rule 5. The reason why intimation of a

Their Workmen. new man forming a member of the Tribunal has to be

- publicly given, in our opinion, applies with equal force

Kania a. J. 'b 1 ..

when a tn una m1tially constituted of three persons,

viz., Mr. Sen, Mr. Mazumdar and Mr. Chandrasekhara

Aiyar, is,

by the Government decision,as from a certain

date, to be a tribunal of Mr.Sen

and Mr. Mazumdaronly.

The word

" reconstituted " is properly used in section 8

because when a new member is introduced in

the panel

so far performing

its duties,

it is a reconstitution, but

the words of section 8 do not exclude the obligation on

the Government to issue a notification

under rule 5

when there is not a reconstitution,

but a new

consti­

tution of the Tribunai. The Government, however, did

not give effect to its intention by issuing a fresh

notification under section

7. Therefore, when the

services of Mr. Chandrasekhara Aiyar ceased to be

available and they decided

that another independent

person was not

to be appointed to fill the vacancy,

there arose

the situation when only two members

constituted the Tribunal.and for the constitution of such

Tribunal no notification under section 7 of the Act was

issued. To enable such a

Tribunal of two persons to

function, under the provisions of the Act, a notification

under section 7 of the Act, in our opinion, was

absolu­

tely essential. The work of the two members in the

absence of such a notification cannot be treated as the

work of a Tribunal established under the Act and all

their actions are without jurisdiction.

It was argued on behalf of the respondents that

when Mr. Chandrasekhara Aiyar left for the Boundary

Tribunal, there arose a temporary abs('lnce which it was

not necessary

to fill up and the remaining two members

had jurisdiction under the Act to proceed with the

adjudication.

In our opinion, this contention cannot

be

acc~pted. In the first place, in the agreed statement

of facts, it is not stated that there was any temporary

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400 SUPREME COURT REPORTS [1951]

1951 well as the final awards made by the three must all be

held to have been made without 1"urisdiction. It seems

The United

Commercial to us that the only way in which the Government

Bank Led. could have put matters right was by a notification

"· issued in February, 1950, constituting the tribunal

Their Workmen. as a fresh Tribunal of three members (and not by pro-

-.-ceeding as if a vacancy had been filled up on 20th

Kania

0

· J. February, 1950, undersection8) and the three members

proceeding with the adjudication

de novo. Even if the

contention of the respondents

that Mr.

Chandrasekhara

Aiyar continued throughout a member of the tribunal

were accepted, in our opinion, the appellants' objection

to the jurisdiction of the three persons to sign the

award

must be upheld.

Section 16 which authorizes

them to sign is preceded

by section 15.

Unless they

have complied

with the provisions of section 15, i.e ,

unless all the three have heard the matter together,

they have

no jurisdiction to make the award in terms

of section

15 and have therefore also no jurisdiction

to sign the award under section

16. In any view of

the

matter the awards are therefore without

jurisdic­

tion:

It was suggested that .his signature on the award

could be treated as surplus. In our opinion, this argu­

ment requires only to be stated to be rejected. It is

not

and cannot be disputed that Mr.

Chandrasekhara

Aiyar took active part in the deliberations and in the

proceedings after 20th February, 1950, and naturally

discussed

and influenced the decision of the other two

members of the Tribunal

by

such discussions. This is

not a case where

an outsider was consulted by the

members of a Tribunal and thereafter the members

came to their own independent decision.

It is

ob~i­

ous that> for making the award all the three persons

worked together

and were jointly responsible for the

resultant award. The argument of surplusage

there­

fore must fail. In this view of the matter, the . final

award

put before the Court is clearly without

jurisdic­

tion and the appellants' contention must be upheld.

The final contention

that the sittings in the interval

constituted only

an

irre~larity in the proceedings

        

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S.C.R. SUPREME COURT REPORTS 403

On the admitted principle that the work of ~he Tri-

19

5

1

bunal, which is of a quasi-judicial nature, is one of 7-'ke United

joint resp~nsibility of all its members, section 8 pro-aomrnercial

vides exceptions .. The Legislature having thus fixed Bank Ltd.

in that section the limits of the exceptions, the limits v.

have .to be strictly observed and it is not within the Their Workmon.

competence either of the Tribunal or the Government -

to extend the limits of those exceptions. In our opinion, Kania

0

· J.

the incidents in respect of the sittings and work of this

Banking Tribunal,

as mentioned above, do not fall

within the limits of the exceptions and therefore the

awards

must be considered as made without jurisdic-

tion.

In our opinion, therefore, the awards made and

signed by Messrs.

Sen and Mazumdar and by all the

three persons are without jurisdiction and the

con­

tention of the

appellaJ.lts on this issue must be ac­

cepted.

FAZL Au J.-The questions which this Bench is FazlAZiJ.

called upon to decide arise upon the following facts.

By a Notification dated-the 13th June, 1949, the

Government of India constituted a Tribunal for the

adjudication of industrial disputes in Banking Com­

panies, consisting of Mr. K. C. Sen (Chairman), Mr.

S. P. Varma and Mr. Majumdar (Members). Subse­

quently, Mr. Chandrasekhara Aiyar was appointed a

member of the Tribunal in the place· of Mr. Varma,

whose services

had ceased to be available.

On the 13th

June, 1949, the Government referred to the Tribunal

the disputes between a number of Banking Companies

and their employees, and the Tribunal consisting of

the chairman and 2 members commenced hearing

them on the 12th September, 1949. In November,

1949, the services of Mr. Aiyar were placed

at the

disposal of the Department of

External-Affairs of the

Government of India, and he was appointed a member

of the Indo-Pakistan Boundary Disputes Tribunal,

with the result

that

during his absence which covered

a period of nearly 3 moJ!ths beginning from the 23rd

404 SUPREME COURT REPORTS [1951]

1951 November, 1949, and ending on the 20th February,

1950, the proceedings were continued before the chair­

~:;;;:;;.": man and theremaining member, and certain interim

Bank Ltd. awards were also made during this period. · Mr. Aiyar

v. rejoined the Tribunal on the 20th February, 1950, and

1'/wir Work•nen. ultimately all the 3 members made and signed an

-. award on the 31st July, 1950, which was published in

Faz! Al•

1

• the Gazette of India on the 12th August, 1950. The

main point raised

in these appeals is that this award is

without jurisdiction.

In some of the appeals, it is also

contended

that some of the interim awards, namely

those given

by the chairman of the Tribunal and Mr.

Majumdar on

the 5th January, 25th January,

20th

February and.22nd February, 1950, in the case of the

Imperial Bank of India, the Lloyds Bank and the

Punjab National Bank, were also without jurisdiction.

Briefly, the argument advanced on behalf

of the

appel­

lants is that the Industrial Disputes Act, 1947, did

not permit either of the following courses, firstly,

that

2 members of the Tribunal, which originally consisted

of 3 members, should deal with

any of the

controver­

sies between the parties in connection with the dis­

putes referred to the Tribunal, and secondly, that a

member

who had left the Tribunal in the midst of the

hearing should rejoin and influence the decision of the

other members in regard to the matters which he

~ad

not heard.

These contentions, however plausible they may-ap­

pear at the first sight, especially when ·we consider

them in the light of our notions of judicial procedure

to be followed in courts

of law, will, in my opinion, be

found to be without much substance, on close

exami­

nation, once we realize that the Industrial Tribunal,

though

it has all the trappings of a court of law, is not

such a court

and has to follow its own procedure which

has to be

determined by the provisions of the Indus­

rial Disputes Act and the rules framed by the Govern­

ment thereunder. The determination of the questions

raised before us will depend mainly upon the proper

construction of section 8 ( 1) of the Act, which runs as

follows:-

      

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408 SUPREME COURT REPORTS (1951)

1951

which we have to deal. A reference to the correspond-

The unma ing Acts in England and America will show that sus­

Oommercial pension of work is generally ruled out in cases of

Bank Ltd. industrial disputes since they need expeditious settle-

v. ment. (See section 3 (b)' of the National Labour Rela-

Thei" Workmen. tions Act of America and section 3 of the Industrial

Fazl Ali J. Courts Act, 1919, of England). The scheme of our In­

dustrial Disputes Act appears to me to be the same,

and I think

that it will be entirely foreign to that

scheme to suggest that the proceedings of the

Tribu­

nal should remain suspended indefinitely. The princi­

ple

that the proceedings may continue in spite of there

being a

vacani;y in number, is expressly laid down in

sections 5 and 6 of

the Act which govern Boards of

Con­

ciliation and Courts of Enquiry, and is in my opinion

recognized by necessary implication in section 8 with

reference

to proceedings before an Industrial

Tribu­

nal. It was strenuously argued before us that if the

intention of the Legislature had been that the proceed­

ings before the Tribunal should continue in spite of a

vacancy, an express provision would have been made

in section 8 in

the same terms as it has been made in

sections 5 and

6. This argument however will not bear

close examination. Sections 5

and 6 have been

repro­

duced from the Trade Disputes Act, 1929, without

any verbal change whatsoever, and

it is quite

under­

standable that a provision dealing with the subject of

a prescribed quorum should expressly

state what

would be the effect of the absence of the chairman or

a member

when the quorum is complete. Section 8,

on the other hand,

has not been borrowed from the

old Act, but is a completely new section in which its

draftsman has used his own language and proceeded

on

the footing that if it was possible to convey the

meaning intended to be conveyed in fewer words, there

was

no necessity for reproducing the entire

phraseo­

logy used in sections 5 and 6. Besides, in the context

in which the provision occurs, there is

no room for

surmising

that the intention of the framer of the

sec­

tion might have been to suspend the work of the Tri­

bunal. The words "the proceedings shall be continued



 

     

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S.C.R. SUPREME COURT REPORTS 417

'

Banks is that the awards were not made by a Tribunal 19111

properly constituted and competent to adjudicate upon The United

industrial disputes under the terms of the Industrial oommercial

Disputes Act. To appreciate the arguments that have Bank Ltd.

been raised by the respective parties on this point, it v.

would be necessary to state a few facts. Their Workmen.

By a notification dated the 13th of June, 1949, the Mukherjoo J.

Central Government in exercise of the powers conferred

upon

it by section 7 of the Industrial Disputes Act,

1947, constituted

an Industrial Tribunal consisting

of three members

to wit: (1) Mr. K.

C. Sen, (who was

appointed chairman of the Tribunal),

(2) Mr. S.

P.

Verma and (3) Mr. J. N. Mazumdar. By a further

Notification dated August 24, 1949,

Mr.

N .. Chandra­

sekhara Aiyar was appointed a member of the Tribunal

in place of Mr.

S.

P. Verma whose services ceased to

he available

and the Tribunal so reconstituted was

designated

"The All India Industrial Tribunal (Bank

Disputes)." The Tribunal consisting of the chairman

and the two members mentioned aforesaid commenced

their sittings

at

Bombay on September 12, 1949, and

continued to sit as so constituted at Bombay and

various other places since then. From the afternoon

of 23rd September, 1949, the services of Mr.

N.

Chandra­

sekhara Aiyar were placed temporarily at the disposal

of

the Ministry of External Affairs, he being appointed

a member of the

lndo-Pakistali Boundary Tribunal.

Mr. Aiyar's work in connection withthelndo-Pakistan

Boundary Tribunal ended on 27thof January, 1950, and

a Government Notification shows that he was absent

on leave from 28th January, 1950, uptil the 19th of

February following

and it is on the 20th February,

1950

that he actually resumed his duties as a member

of the Industrial Tribunal. During the entire period

of his absence there were various sittings of the Indus­

trial Tribunal in which the two remaining members

took

part and a number of a wards were

also made and

signed by these two members adjudicating upon

several items of dispute concerning certain Banks. It

may be mentioned here that in exercise of the powers

r,4

418 SUPREME COURT REPORTS [1951]

1951 conferred by section 38 of the Industrial Disputes Act,

certain rules were framed by the C.entral Government

The United

Commercial which came into force on 3rd December, 1949, and under

Bank Ltd. which the Tribunal, as constituted by the Notification

v. of 13th June, 1949, was authorised to entrust such

Their Workmen. cases or matters referred to it, as it deemed fit, to one

or more members for enquiry and report. In case of

Mukherjea J.

such entrustment, the report of the enquiring member

was to be placed before the chairman of

the Tribunal

and the Tribunal after considering the report and

making such further enquiry as it deemed proper

could deliver the award. Purporting to act in pursu­

ance of these rules, a large number of matters pending

before the 1'ribunal were divided amongst the mem­

bers for enquiry and report and the members of the

Tribunal did sit separately

at different places from the

3rd of December, 1949.

After Mr. Aiyar joined the Tribunal, the proceedings

continued as before. The hearing of

the general issues,

which began

at Bombay, was concluded on 3rd April,

1950. The Tribunal made and signed the, main award

on 31st July, 1950, which was published in the Gazette

of

India (Extraordinary) on August 12,

1950.

The point that has been pressed for our considera­

tion on behalf of

the appellants Banks is that on the

services of Mr. Aiyar having ceased to be available by

reason of his being appointed a member of the

Indo­

Pakistan Boundary Tribunal, the remaining two mem­

bers could not, in law, constitute an Industrial Tribu­

nal without its being reconstituted as such in the

manner contemplated

by the provisions of the Indus­

trial Disputes

Act, The proceedings after the 23rd

of November, 1949, became, therefore, void and inopera­

tive and the subsequent rejoining of the Tribunal by

Mr. Aiyar was of no avail, as a vacancy having once

occurred, a fresh appointment of a

member and a fresh

constitution of

the Tribunal were imperative in law.

We have been asked to declare the award made on

31st of

July,

1950, as well as the earlier awards void

and inoperative on these grounds.

S.C.R. SUPREME COURT REPORTS 419

These contentions have been sought to be repelled 1951

on behalf of the respondents employees as well as by TM-Unilel

the learned Attorney-General who appeared for the oommerotai

Central Government as intervener, on a variety of Bank Ltil.

grounds and though the grounds are not quite uniform v.

or consistent, they have all been invoked in support of Their Workmen.

the position that even in the absence of Mr. Aiyar it Mukherjea J.

was quite competent to the two other members to con-

tinue to function legally as a Tribunal under

the provi-

sions and

the general scheme of the Industrial Disputes

Act, 1947. There was nothing irregular,

it is said, in

Mr. Aiyar's subsequently taking part in the Tribunal

and signing the award on 31st July, 1949. I will notice

these arguments in detail as I proceed with

my judg-

ment.

It will be convenient first of all to advert to such of

the provisions of the Industrial Disputes Act, 1947, as

have a bearing on the questions raised in this case.

The object

of the Industrial Disputes Act, as set out

in

the preamble is

" to make provisions for investiga­

tion and settlement

of industrial disputes and for

certain other purposes hereinafter

appearing." There

are three classes

of authorities provided for by the Act

which are entrusted with the powers and duties

of

investigation and settlement of industrial disputes.

First

of all, there are

Conciliation Officers or Boards

of Conciliation, whose duties mainly are to induce the

parties to come to a fair and amicable settlement of

the disputes amongst themselves. Secondly, there are

Courts of Enquiry and though they are described as

courts, their duties end with investigation into tl}.e

matters referred to them and submitting reports there­

on to the appropriate Government. Lastly, there are

Industrial Tribunals composed

of independent persons

who either are or had been Judges of the High

Court

or District Judges, or are qualified for appointment as

High Court Judges.

Sub-section

(2) of section 5 provides for the consti­

tution of a Board

of Conciliation. A Board

of Conci­

liation shall consist of a chairman and two or four

other members as the appropriate Government thinks

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S.C.R. SUPREME COURT REPORTS 423

as a Tribunal in the absence of the third member and 111111

without the Government reconstituting the Tribunal as

The United

a Tribunal of two? The contention of the respondents Oommercial

is that as section 8 of the Industrial Disputes Act Bank Lid.

gives an option to the appropriate Government to fill v.

the vacancy or not, as it chooses, when the services of a Their Workmen.

member cease to be available and as it provides for re­

constitution only when a

new member is appointed by

Mukherjta J.

the Government, it is implicit in the provision of the

section itself

that in case the Government does not

decide to appoint a new member, the

rell}aining

members would automatically constitute the Tri-

hunal and would proceed as such.

It is said that the

Industrial Tribunals are really administrative bodies

and as the very object of establishing such Tribunals

is to settle industrial disputes as quickly and as expe-

ditiously

as possible with a view to secure industrial

. peace, certain amount of laxity m the procedure cannot

but be allowed to these Tribunals as appears from the

various provisions of the Act and it would defeat the

very object of the enactment if the normal rules of

law and procedure are made applicable to them.

It

is suggested further that what section 7 (I) contem­

plates

is the constitution of a Tribunal irrespective of its

members

for adjudication of industrial disputes. What

number of persons the Tribunal shall consist

of can be

determined

by the Government at different times and

in different manner and

no question of fresh constitu­

tion

of a Tribunal would arise in case the number is

subsequently altered.

So far as an Industrial Tribunal is concerned, sec­

tion 8

(1) of the Industrial Disputes Act comes into

operation when the services

of the chairman of the

Tribunal or of any member thereof cease to be avail­

. able at any time. This non-availability of services may

be permanent or temporary and may

be occasioned by

any cause or circumstance. When the services of a

member cease to be available, the appropriate Govern­

ment has got to make up its mind whether it would

fill the vacancy or not ; and in case it chooses to

appoint a new member, the Tribunal must be

~eemed



     









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426 SUPREME COURT REPORTS (1951]

!951 15 of the Act expressly lays down that the Tribunal

The United shall hold its proceedings expeditiously and shall, as

oom1ne1'Cial soon as practicable, on the conclusion thereof, submit

Bank Ltd. its award to the appropriate Government. This object,

"· it is said, would be frustrated if the strict rules of

Their Workmen. ordinary law are extended to the proceedings of an

Mu!:herjea ,J, Industrial Tribunal.

It is quite true that a quasi-judicial tribunal enjoys

greater flexibility and freedom from the strict rules of

law and procedure

than an ordinary court of law, but

however much informality and celerity might be con­

sidered to

be desirable in regard to the proceedings of

an Industrial Tribunal,

it is absolutely necessary that

the Tribunal must be properly constituted in accord­

ance with requirements of law before

it is allowed to

function at all. I fail to see further how the issuing of

a formal notification under section 7 of the Act could

delay the proceedings of the Tribunal

or hamper

expeditious settlement of

the disputes. Section 16 of

the Industrial Disputes Act makes the imperative

provision

that the a ward of a Tribunal shall be in

writing and shall be signed by all the members.

So

long as there is no change or alteration in the original

notification which constituted the Tribunal, the

expression " all the members" must mean and refer to

all the members whose names appear in this notifi­

cation and, unless all of them sign the award,

it

would

not be a valid or operative award in law.

Our attention was drawn in course of the argu­

ments. to rule

12 ofthe rules framed by the

C'entral

Government in exercise of its powers under section 38

of the Industrial Disputes Act. This rule,

it is to be

noted, was deleted with effect from

6th of December

1949. As it stood originally, it was worded as

follows:-

" Where a Tribunal consists of two or more mem­

bers the Tribunal may with the consent of the parties

act notwithstanding any casual vacancy in

its

number and no act, proceeding or determination of the

Tribunal shall be called in question or invalidated by

reason of any such vacancy."

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428 SUPREME COURT REPORTS (1951]

1961 when it thinks that the vacancy is only for a short

period

and is not likely to continue long. In such ~:=.~=~ circumstances, as I have already indicated, the true

Bank Ltd. position is that the remaining members cannot

v. function as a Tribunal and all the proceedings must be

'l'J..ir Warkm<11. held to remain in abeyance till the absent member

rejoins his duties.

But I do not see any reason why MukherJea J. there should be a fresh notification and.a fresh con­

stitution

of the Tribunal when the absent member

returns. The original notification is still there unaltered

and unamended and not affected in any way by any

subsequent notification; and by virtue of this notifica­

tion alone, the three members would

be competent to sit

as a Tribunal and discharge its duties. The fact that

the services of one of them were not available at a time

would not make the original notification null and void.

The only effect of the absence of a member would be

that the remaining members would not be competent

to continue the proceedings ; but this disability would

cease as soon as

the services of the absent member

become available and a

Tribunal as constituted by the

notification is ready and able to function.

The appellant's contention seems to be

that once a

vacancy has. occurred, the Tribunal becomes imper­

fectly constituted and a fresh constitution is necessary.

I do not

think that this position is sound.

As I have

said already, the non-availability of the services of a

member

may be permanent or purely temporary and

may be due to various causes. The word

" vacancy "

has no technical meaning. As will appear

from a reference to the Oxford Dictionary, the

word ' vacancy " is ordinarily used in the sense

of a " temporary freedom or cessation from

a business

or

occupation" If the absence of a mem­

ber was merely temporary, the vacancy would mean

nothing else

but an interval or period during which a

particular office remained unoccupied. The question

of a fresh appointment

might arise if the vacancy

was actually filled up; but, as has happened in the

present case, if

the vacancy is not filled up but is

allow­

ed to remain, it would automatically come to an erd



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Description

When a Judge is Absent: Supreme Court on Tribunal Jurisdiction in United Commercial Bank v. Workmen

In the pivotal 1951 Supreme Court ruling of The United Commercial Bank Ltd. v. Their Workmen, the court meticulously examined the foundational principles of Tribunal Jurisdiction under the Industrial Disputes Act, 1947. This landmark judgment, available on CaseOn, addresses a critical question: what happens to the validity of legal proceedings when the composition of a multi-member tribunal is altered mid-course due to the absence and subsequent return of a member? The court's decision underscores the non-negotiable importance of a tribunal's proper legal constitution for its jurisdiction to be valid.

Factual Background: The Case of the Missing Member

The Central Government established a three-member Industrial Tribunal, comprising Mr. K. C. Sen (Chairman), Mr. Mazumdar, and Mr. Chandrasekhara Aiyar, to adjudicate disputes in the banking sector. The proceedings commenced in September 1949. However, in November 1949, Mr. Aiyar's services were temporarily deputed to the Indo-Pakistan Boundary Disputes Tribunal, making him unavailable for the banking tribunal's sittings until February 1950.

During Mr. Aiyar's nearly three-month absence, the remaining two members continued the proceedings and even passed several interim awards. Upon his return on February 20, 1950, Mr. Aiyar rejoined the other two members, and the Tribunal proceeded from where it had left off, ultimately issuing a final award signed by all three members. This unique sequence of events led to a legal challenge questioning the very authority of the Tribunal to pass any valid awards.

The Legal Conundrum: Issue Before the Supreme Court

The fundamental issue before the seven-judge bench of the Supreme Court was:

Were the awards delivered by the Industrial Tribunal, both during the temporary absence of one of its three members and after his subsequent return, valid and made with proper jurisdiction?

This question was dissected into two parts: a) the legality of awards made by the two-member body, and b) the legality of the final award made by the three-member body after the absent member had rejoined without hearing the initial parts of the proceedings he missed.

Governing Principles: Rule of Law

The Court's analysis hinged on a strict interpretation of key provisions of the Industrial Disputes Act, 1947, and the overarching principle of joint responsibility in quasi-judicial functions.

Industrial Disputes Act, 1947

  • Section 7: This section empowers the government to constitute an Industrial Tribunal. Crucially, it states that a Tribunal shall consist of "such number of members as the appropriate Government thinks fit." The composition, once notified, defines the legal identity of the Tribunal.
  • Section 8: Titled "Filling of vacancies," this section dictates that if a chairman's services cease to be available, the government shall appoint a replacement. However, in the case of any other member, the government may appoint another person to fill the vacancy. The Act was silent on what happens if the government chooses not to fill the vacancy.
  • Section 15 & 16: These sections establish that the Tribunal must hold its proceedings and submit its award, which must be in writing and signed by *all the members*.

The Principle of Joint Responsibility

A quasi-judicial body like an Industrial Tribunal has a joint responsibility. This implies that all members who sign an award must have been present throughout the proceedings to collectively hear the evidence and arguments, deliberate on them, and arrive at a joint decision. An award made without this collective application of mind is fundamentally flawed.

Court's Deliberation: Analysis of the Arguments

The bench was divided, leading to a majority judgment, a dissenting opinion, and a separate concurring opinion that took a middle path.

The Majority View: A Question of Foundational Jurisdiction

The majority, led by Chief Justice Kania, held that all the awards were void for want of jurisdiction. Their reasoning was as follows:

  • A Change in Constitution: When Mr. Aiyar became unavailable, a "vacancy" under Section 8 arose. The original Tribunal, constituted with three members, ceased to exist.
  • Requirement of a New Notification: For the remaining two members to function as a valid tribunal, a new notification under Section 7 was essential to formally reconstitute the Tribunal with two members. Since the government did not issue such a notification, the two members acted without jurisdiction. Their proceedings were legally a nullity.
  • Invalid Rejoining: Mr. Aiyar's return and resumption of duties could not cure the defect. Since a vacancy had occurred, he could only rejoin through a formal appointment under Section 8. As he was not re-appointed, he was legally a stranger to the proceedings upon his return.
  • Lack of Joint Deliberation: The final award, though signed by three, was invalid because Mr. Aiyar had not heard a significant portion of the case. This violated the principle of joint responsibility enshrined in Sections 15 and 16.

The majority concluded that this was a fundamental defect in jurisdiction, not a mere procedural irregularity that could be waived or cured by the parties' acquiescence.

Analyzing the nuances between the majority, dissenting, and concurring opinions in a landmark case like this can be complex. For legal professionals pressed for time, CaseOn.in offers 2-minute audio briefs that distill the core arguments and rulings, making it easier to grasp the essence of such pivotal judgments.

The Dissenting Voice: A Pragmatic Interpretation

Justices Fazl Ali and Patanjali Sastri dissented, arguing for a more practical interpretation. They contended that Section 8 gave the government the discretion not to fill a member's vacancy. In their view, if the government chose not to act, the Tribunal could validly continue its proceedings with the remaining members. They argued that Mr. Aiyar had never ceased to be a member; he was merely on temporary deputation. Therefore, his return did not require a fresh appointment, and the final award was valid.

Justice Mukherjea's Middle Path

Justice Mukherjea offered a nuanced perspective. He agreed with the majority that the awards made by the two members during Mr. Aiyar's absence were void because the Tribunal was not constituted as per law without a fresh notification. However, he diverged on the final award, deeming it valid. He reasoned that the original notification for a three-member Tribunal was not permanently extinguished but merely held in abeyance. Once Mr. Aiyar returned, the Tribunal was restored to its original, legally notified composition and was competent to proceed and deliver an award.

The Final Verdict: Conclusion

The Supreme Court, by its majority decision, held that both the interim awards made by the two members and the final award made after the third member rejoined were void and without jurisdiction.

The ruling established that the constitution of a Tribunal is the bedrock of its jurisdiction. Any change in its notified composition, whether by reduction or addition, requires a formal and legal act by the constituting authority (the Government). Without this, the body of individuals hearing the case lacks the legal character of a Tribunal, and its decisions are a nullity.

Why This Judgment Matters: A Guide for Legal Professionals and Students

This case remains a cornerstone of administrative and industrial law for several reasons:

  • For Lawyers: It is a critical precedent on challenging the jurisdiction of quasi-judicial bodies. It reinforces the principle that a defect in constitution is a fatal jurisdictional error, not a curable procedural lapse. It highlights the importance of scrutinizing the composition and authority of any tribunal before which one appears.
  • For Law Students: It serves as an excellent case study on statutory interpretation, showcasing the tension between a strict, literal interpretation (majority view) and a more purposive, pragmatic one (dissenting view). It clearly illustrates the fundamental legal difference between an absence of jurisdiction and an irregular exercise of jurisdiction.

Disclaimer: This article is intended for informational and educational purposes only and does not constitute legal advice. The details of the case have been simplified for clarity. For a complete understanding, it is advisable to read the full judgment or consult with a qualified legal professional.

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