37  Procedure, Power and Duties of Authorities

ImportantLearning Objectives

By the end of this chapter, the reader will be able to:

  1. Identify the procedural framework that governs the conduct of conciliation, inquiry, and adjudication proceedings under the Industrial Disputes Act, 1947.
  2. Apply the powers of the various authorities under Section 11, including the powers of a civil court, the procedural rules, and the timelines for proceedings.
  3. Identify the duties of the Conciliation Officer, the Board of Conciliation, the Court of Inquiry, and the adjudication authorities under specific provisions of the Act.
  4. Apply the principles of natural justice and procedural fairness to the conduct of proceedings under the Act.
  5. Locate the procedural framework within the broader Indian framework of labour adjudication and the consolidation effected by the Code on Industrial Relations, 2020.

37.1 Introduction

This concluding chapter of Module 4 takes up the procedural framework that governs the conduct of proceedings under the Industrial Disputes Act, 1947. The chapter examines Section 11 (powers of authorities), the duties of the various authorities under specific provisions, the procedural framework for conciliation, inquiry, and adjudication, and the principles of natural justice that apply to all proceedings.

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    A --> C[Conciliation Procedure]
    A --> D[Inquiry Procedure]
    A --> E[Adjudication Procedure]
    A --> F[Natural Justice]
    A --> G[Timelines]

    B --> B1[Civil Court Powers]
    B --> B2[Witness Examination]
    B --> B3[Document Production]
    B --> B4[Site Inspection]

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37.2 Section 11: Powers of Authorities

NoteSection 11(1): Procedure and Powers

“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.”

The provision confers on each authority the power to determine its own procedure, subject to the rules made under the Act and to the principles of natural justice.

37.2.1 Section 11(3): Powers of a Civil Court

NoteSection 11(3): Powers of a Civil Court

“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, when trying a suit, in respect of the following matters, namely:

  1. enforcing the attendance of any person and examining him on oath;

  2. compelling the production of documents and material objects;

  3. issuing commissions for the examination of witnesses;

  4. in respect of such other matters as may be prescribed.”

The conferral of civil court powers gives the authorities substantive enforcement capability for the conduct of proceedings, including the power to issue summons, to enforce attendance, to require document production, and to issue commissions for witness examination outside the immediate jurisdiction.

37.2.2 Section 11(4): Powers of Inspection

The Conciliation Officer is conferred specific powers under Section 11(4) to enter the premises occupied by an establishment to which the dispute relates, after reasonable notice, for the purpose of inquiring into any matter affecting the dispute.

37.2.3 Section 11(6): Persons Bound by the Award

NoteSection 11(6): Persons Bound by the Award

“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, 1860 (45 of 1860).”

The deeming provision applies the substantive protections of public servant status to authorities under the Act, including immunity from suit for acts done in the discharge of official duty and the obligation to act in good faith.

37.3 Procedural Framework for Conciliation

37.3.1 Section 12: Duties of Conciliation Officer

NoteSection 12: Duties of Conciliation Officer

“(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.

  1. 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 the 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.

  2. If a settlement 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.

  3. 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.

  4. 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.

  5. 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.”

37.3.2 Section 22: Notice in Public Utility Services

In public utility services (as defined under Section 2(n)), strikes and lockouts cannot proceed without notice. Section 22 requires:

  1. Six weeks’ notice to the employer of intention to strike (or vice versa);

  2. The notice can be given only within six weeks before striking;

  3. The strike must commence within fourteen days of the notice;

  4. The strike cannot proceed during the pendency of conciliation proceedings.

The notice provisions ensure an opportunity for conciliation before industrial action affecting public utilities.

37.4 Procedural Framework for Court of Inquiry

37.4.1 Section 14: Duties of Board

The Board of Conciliation, when conducting proceedings, has duties similar to those of the Conciliation Officer. The Board investigates the dispute, attempts to bring about a settlement, and submits a report to the appropriate government within two months (extendable by the appropriate government).

37.4.2 Section 15: Duties of Court of Inquiry

NoteSection 15: Duties of Court of Inquiry

“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.”

The Court of Inquiry’s role is investigative. It does not propose or impose settlements. Its report informs the appropriate government’s policy decisions and may inform subsequent referral of the dispute to adjudication.

37.5 Procedural Framework for Adjudication

37.5.1 Section 16: Form of Report or Award

NoteSection 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:

  1. The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by its presiding officer.”

37.5.2 Conduct of Proceedings

The conduct of adjudication proceedings is governed by the procedure determined by the authority under Section 11(1), supplemented by the rules made under Section 38. The principal procedural elements include:

  1. Pleadings — the parties file written statements setting out their positions;

  2. Issues — the authority frames issues for determination;

  3. Evidence — the parties adduce evidence in support of their positions, with examination, cross-examination, and re-examination of witnesses;

  4. Documentary evidence — the parties produce documents in support of their positions;

  5. Arguments — the parties present oral and written arguments;

  6. Award — the authority issues a written and signed award containing findings, reasons, and operative directions.

37.5.3 Section 18: Persons Bound by the Award

NoteSection 18: Persons on Whom Settlements and Awards Are Binding

  1. A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceedings shall be binding on the parties to the agreement.

  2. Subject to the provisions of sub-section (3), an arbitration award shall be binding on the parties to the agreement who referred the dispute to arbitration.

  3. A settlement arrived at in the course of conciliation proceedings under this Act, or an arbitration award in a case where a notification has been issued under sub-section (3A) of section 10A, or an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on:

  1. all parties to the industrial dispute;
  2. all other parties summoned to appear in the proceedings as parties to the dispute;
  3. where a party referred to in clause (a) or (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates;
  4. where a party referred to in clause (a) or (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part.

The Section 18 framework gives broad binding force to settlements arrived at in conciliation proceedings and to awards of adjudicatory authorities, extending coverage to successor workers and successor employers in the relevant establishment.

37.6 Principles of Natural Justice

The conduct of all proceedings under the Act is governed by the principles of natural justice, which apply as a matter of administrative law to all quasi-judicial proceedings. The principal principles include:

NotePrinciples of Natural Justice in Industrial Adjudication

  1. Notice — All parties must receive adequate notice of the proceedings, of the issues to be determined, and of any specific allegations or evidence to be relied upon;

  2. Opportunity to be heard (audi alteram partem) — All parties must be given a fair opportunity to present their case, to adduce evidence, to cross-examine witnesses of the opposing party, and to make arguments;

  3. Impartial decision-maker (nemo iudex in causa sua) — The deciding authority must be impartial and free from bias or interest in the outcome;

  4. Reasoned decision — The decision must be supported by reasons, demonstrating the application of the mind of the authority to the issues, the evidence, and the law;

  5. Public hearing — Proceedings should generally be open, with limited exceptions for sensitive matters.

The principles are subject to specific statutory modifications, but provide the substantive baseline for procedural fairness in industrial adjudication.

WarningProcedural Defects Can Vitiate the Award

A practitioner observation worth emphasising is that procedural defects can vitiate the award of an industrial authority. Failure to give adequate notice, denial of opportunity to be heard, bias of the deciding authority, or absence of reasons in the award can all be grounds for setting aside the award on judicial review. The High Courts have set aside numerous awards on procedural grounds over the years.

37.7 Timelines for Proceedings

The Act prescribes specific timelines for various stages of proceedings:

NoteStatutory Timelines under the Act
Stage Timeline
Conciliation Officer’s report 14 days from commencement of conciliation
Board of Conciliation’s report 2 months from reference (extendable)
Court of Inquiry’s report Ordinarily 6 months from commencement of inquiry
Publication of award 30 days from receipt by appropriate government
Commencement of award 30 days from publication
Period of operation of award 1 year from commencement
Period of operation of settlement As agreed, default 6 months
Termination notice for settlement 2 months
Notice of strike in public utilities 6 weeks
Strike must commence within 14 days of notice

The timelines provide the procedural rhythm of dispute resolution under the Act. Compliance with the timelines is generally required, with extensions available in specified circumstances.

37.8 Judicial Review of Awards

The awards of Labour Courts, Industrial Tribunals, and National Tribunals are subject to judicial review by the High Courts under Article 226 of the Constitution and by the Supreme Court under Article 32. The grounds for judicial review include:

  1. Lack of jurisdiction — where the authority lacked jurisdiction to make the award;

  2. Excess of jurisdiction — where the authority exceeded its jurisdiction in making the award;

  3. Procedural impropriety — including violations of natural justice;

  4. Error of law apparent on the face of the record — including misinterpretation of statute or precedent;

  5. Irrationality — the award is so unreasonable that no reasonable authority could have arrived at it.

The judicial review framework provides the supervisory check on the substantive and procedural correctness of awards.

NoteL.K. Verma v. HMT Ltd. (2006)

The Supreme Court of India in L.K. Verma v. HMT Ltd. (2006) clarified the scope of judicial review of Labour Court awards, holding that the High Courts should not act as appellate authorities reweighing evidence but should confine themselves to substantive jurisdictional and procedural questions. The decision has shaped the contemporary scope of judicial review of industrial adjudication.

37.9 The Code on Industrial Relations, 2020 and Procedure

The Code on Industrial Relations, 2020 substantially preserves the procedural framework of the Industrial Disputes Act, 1947, with refinements:

  1. Streamlining of the institutional architecture, with consolidation of some forums;

  2. Time-bound disposal requirements, with specific timelines for different stages;

  3. Integration of procedural rules with the broader code consolidation;

  4. Provision for online filing and hearings, supporting digitisation of the dispute resolution process;

  5. Enhanced role for negotiation through the negotiating union or negotiating council framework before disputes proceed to formal adjudication.

The Code preserves the substantive procedural protections while modernising the framework. Pending full implementation of the Code, the existing Industrial Disputes Act, 1947 procedural framework continues to apply.

37.10 Case Studies

37.10.1 Case Study 1: Conciliation Procedure in a Wage Dispute

A wage dispute between a workers’ union and an employer in the engineering sector reaches the Conciliation Officer following the breakdown of direct negotiations. The Officer commences conciliation proceedings.

The Officer follows the prescribed procedure: convening initial meetings to understand the issues, gathering data on the dispute (cost of living trends, comparable wage settlements, the company’s financial position), facilitating discussion between the parties, and identifying potential compromises.

The Officer is statutorily required to submit a report within 14 days of commencement, but the appropriate government routinely extends this in complex cases. After several rounds of discussion over six weeks, the parties agree to a settlement. The Officer prepares the memorandum of settlement, secures signatures from both parties, and submits the report and settlement to the appropriate government.

The settlement is binding under Section 18(3) on all parties and on workers subsequently employed in the establishment.

Discussion Questions

  1. To what extent should the 14-day timeline for the Conciliation Officer’s report be applied strictly, given the complexity of typical wage disputes?
  2. How should the Conciliation Officer balance the procedural rigour of the proceedings with the flexibility needed for effective mediation?
  3. What features of the conciliation report should support its acceptance and implementation by both parties?

37.10.2 Case Study 2: Adjudication Procedure in a Dismissal Dispute

A workman dismissed for misconduct files a claim challenging the dismissal. The matter is referred by the appropriate government to the Labour Court under Section 10(c).

The Labour Court follows the prescribed procedure: receiving pleadings from both parties, framing issues for determination, scheduling evidence, hearing witness testimony with cross-examination, receiving documentary evidence (including the disciplinary inquiry record), hearing oral arguments, and issuing a written award.

The Court applies the principles of natural justice throughout, ensuring adequate notice, opportunity to be heard, impartial decision-making, and reasoned award. The award addresses the propriety of the disciplinary inquiry, the substantive grounds of dismissal, and the appropriate remedy (reinstatement with or without back wages, or upholding of the dismissal, or modification of the punishment).

The award is published in the Official Gazette within 30 days, becomes enforceable 30 days thereafter, and is binding on the parties under Section 18(3) for at least one year.

Discussion Questions

  1. To what extent should the Labour Court inquire into the substantive merits of the disciplinary action, versus reviewing only the procedural compliance with the standing orders and natural justice?
  2. How should the Court balance the worker’s interest in reinstatement with the employer’s legitimate interest in maintaining workplace discipline?
  3. What features of the award should support its enforceability and the parties’ compliance?

37.10.3 Case Study 3: Judicial Review of an Industrial Tribunal Award

An employer aggrieved by an Industrial Tribunal award on a wage settlement files a writ petition in the High Court under Article 226 challenging the award. The grounds include alleged procedural impropriety, misinterpretation of the wages definition, and alleged excess of jurisdiction.

The High Court applies the L.K. Verma v. HMT Ltd. (2006) framework, declining to act as an appellate authority on the merits but examining the procedural and jurisdictional grounds. The Court examines the record of the Tribunal proceedings, the application of natural justice, the interpretation of the relevant statutory provisions, and the scope of the Tribunal’s jurisdiction. The Court partially allows the writ petition, setting aside one specific aspect of the award on procedural grounds but upholding the substantive award.

The matter may proceed further to the Supreme Court under Article 136 (special leave to appeal) on substantial questions of law.

Discussion Questions

  1. To what extent should the High Courts confine themselves to substantive jurisdictional and procedural review of Industrial Tribunal awards, and where should the line between review and appellate scrutiny be drawn?
  2. How does the L.K. Verma framework interact with the broader judicial review jurisprudence under Article 226?
  3. What lessons does the case offer for the design of awards by industrial tribunals to support sustainability on judicial review?

Summary

Concept Description
Section 11 Powers
Section 11(1) Procedure Authority may follow such procedure as it thinks fit, subject to rules and natural justice
Section 11(3) Civil Court Powers Boards, Courts, Labour Courts, Tribunals, and National Tribunal have civil court powers including witness attendance, examination on oath, document production, and commissions
Section 11(4) Powers of Inspection Conciliation Officer specifically empowered to enter premises occupied by establishment after reasonable notice for inquiry into matters affecting the dispute
Section 11(6) Public Servant Status All authorities deemed public servants under Section 21 IPC, with substantive immunity from suit for acts in discharge of official duty
Conciliation Procedure
Section 12 Duties of Conciliation Officer Duties include holding conciliation proceedings, investigating the dispute, attempting to bring about settlement, and submitting report within timeline
Section 12(1) Conciliation Proceedings Conciliation Officer may hold proceedings; must hold proceedings in public utility services where notice has been given under Section 22
Section 12(3) Settlement Memorandum Where settlement is arrived at, Officer sends report and signed memorandum of settlement to appropriate government
Section 12(4) Failure Report Where conciliation fails, Officer sends full report setting forth steps taken, facts and circumstances, and reasons settlement could not be arrived at
Section 12(6) 14-Day Timeline Report must be submitted within 14 days of commencement of conciliation proceedings, or shorter period fixed by appropriate government
Section 22 Notice in Public Utilities Strikes and lockouts in public utility services require 6 weeks' notice; strike must commence within 14 days of notice; cannot proceed during conciliation
Inquiry and Adjudication Procedure
Section 14 Duties of Board Board has duties similar to Conciliation Officer with 2-month report timeline (extendable by appropriate government)
Section 15 Duties of Court of Inquiry Court of Inquiry inquires into matters referred and reports to appropriate government within ordinary period of 6 months
Section 16 Form of Report or Award Reports of Board or Court must be in writing and signed by all members; awards of Labour Court, Tribunal, or National Tribunal in writing and signed by presiding officer
Conduct of Adjudication Proceedings Adjudication procedure includes pleadings, issue framing, evidence, oral and written arguments, and written award with findings, reasons, and operative directions
Pleadings, Issues, Evidence, Award Standard procedural stages of adjudication, ensuring orderly conduct of proceedings and informed determination
Binding Force of Awards
Section 18 Binding Force Specifies binding force of settlements and awards; settlements outside conciliation bind only parties; conciliation settlements and awards bind all parties and successors
Conciliation Settlement Binding Settlements arrived at in course of conciliation proceedings are binding on all parties to the dispute, all parties summoned, successors of employer party, and subsequent workers
Award Binding on Successors Awards of Labour Court, Tribunal, or National Tribunal that have become enforceable are binding on the same broad set of parties
Natural Justice and Timelines
Notice as Natural Justice Principle All parties must receive adequate notice of proceedings, issues, and any specific allegations or evidence
Audi Alteram Partem All parties must be given fair opportunity to present case, adduce evidence, cross-examine, and make arguments
Nemo Iudex in Causa Sua Deciding authority must be impartial and free from bias or interest in the outcome
Reasoned Decision Requirement Decision must be supported by reasons, demonstrating application of mind to issues, evidence, and law
Statutory Timelines Specific timelines for various stages: 14 days conciliation report, 2 months Board report, 6 months Court of Inquiry, 30 days publication, 30 days commencement, 1 year operation
Judicial Review
Judicial Review under Articles 226 and 32 Awards subject to judicial review by High Courts under Article 226 and Supreme Court under Article 32 for jurisdiction, procedural impropriety, error of law, irrationality
L.K. Verma v. HMT Ltd. (2006) Supreme Court decision clarifying scope of judicial review; High Courts not to act as appellate authorities reweighing evidence but to confine to jurisdictional and procedural questions