# [1965] 3 S.C.R. 394

- **Citation:** [1965] 3 S.C.R. 394
- **Court:** Supreme Court of India
- **Decided:** 1965-03-16
- **Bench:** P. B. Gajendragadkar, K. N. Wanchoo, M. Hidayatullah, V. Ramaswami
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1965-3-s-c-r-394-3498
- **Pages:** 8

## Headnote

fodustria! Disputes Act 1947 (14 of 1947), ss." 2(k), 10 and 36-
"lndustrial dispute"-Meaning-D'smissed Employees only members
of Union-Union raises dispute-Maintainability.
Out of 45 employees of the respondent, 18 had become members
of a Trade Union. Later, these 18 employees were dismissed by an
order passed on the same day. The Union took up the cause and
ultimately the dispute was referred to the Tll'.bunal, where the respondent raised the ·preliminary objection that the reference was
invalid inasmuch as the dispute referred to the Tribunal was not
an industrial dispute but was merely an individua:l dispute, and besides these d'smissed employees no other employees of the respondent was a member of the Union, and so the Union could not raise
the dispute. This was upheld by the Tribunal. In appeal by speCial
lea:ve;
HELD: The appeal must be allowed.
The definition of "industrial dispute" in s. 2(k) shows that
before rny d;spute raised by any person can be said to be an industrial dispute, it must be shown that it 's connected with the employment or non-employment of that person. This condition is satisfied
in the present case. [396 DJ
Having regard to the broad policy underlying the Act, th's Court
and indeed a majc·rity of Industrial Tribunals are inclined to take
the view that notwithstand''ng the width of the words used by the
Act in. defining an "industrial dispute" it would be expedient to require that a dispute raised by a dism'ssed employee cannot becolne
an industrial dispute, uμless it is supported either by his Union -or,
in the absence of a Union by a number of workmen. [397 B-CJ
Considerations which would be relevant in dealing with a dispute relating to an individual employee's dism'ssal, would not be
material in dealing with a case where a largie number of employees
have been dismissed on the same day.
c399 G-HJ
A Union of workmen may validly ra'se a dispute as to dismissal
even though it may be a union of minority of the workmen empl-Oy-
·ed in rny establishment. Similarly if there 's no union of workmen
in any establishment, a group of employees can raise the dispute
and the dispute then hecomes an industr'al dispute. though it may
relate to the dismissal of an individual employee. [399 HJ
In a given case it is conceivable that the wcrkmen of an establishment have no union of their own and some or· all of them jo:in
the uni··n. of another establishment belong'ng to the same industry.
In sue'. a cas·e, if the said union take up the cause of the workmen
working in an establ'shment which hrn no union of its cwn, it would
be unreasonable to bold that the dispute does not become an industrial dispute because the Union which has sponsored it is
n<ib
the union exclus'vely of the workmen working in the establ:shment
concerned. In every case where industrial adjudication has to decide
B
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A
B
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D
E
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WORKMEN v. Mjs DHARAMPAL (Gajendragadkar, C.J.)
395
whether a reference in regard to the d·ismissal of an industrial employee ls validly made or not it would be necessary to inquire
whether the Union which has sponsored the case can fa'.rly claim a
representative character, in such a way that its support to the case
would make the dispute an industrial dispute. [400 F-H]
Bes'.des, 18 workmen, dismissed by an order passed on the same
day, themselves form a group of workmen which would be just'.fied
in supporting the cause of one another. [ 401 C]
Central Provinces Transport Service v. Raghunath Gopal Patwardhan, [1956] S.C.R. 956 and The Newspapers Ltd. v. The State Industrial Tribunal, U.P., [1957] S.C.R. 754, relied on.
Bombay Union of Journalists v. The H:ndu, Bombay, [1961] II
L.L.J. 436, explained and a:stinguished.
0.VIL APPELLATE JURISDICTION: Civil Appeal No. 532 of 1963.
Appeal by special leave from the Award dated February 9,
1962, of the Industrial Tribunal, Delhi in l.D. No. 294 of 1961.
Sukumar Ghose, for the appellant.
S. V. Gupte, Solicitor-General, S. Murthy and B. P. Maheshwari, for the

## Text

WORKMEN OF MIS DHARAMPAL PREMCHAND
A
(SAUGHANDID)
v.
MIS. DHARAMPAL PREMCHAND (SAUGHANDfil)
March 16, 1965
[P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, M. HIDAYATULLAH
AND V. RAMASWAMI, JJ.]
fodustria! Disputes Act 1947 (14 of 1947), ss." 2(k), 10 and 36-
"lndustrial dispute"-Meaning-D'smissed Employees only members
of Union-Union raises dispute-Maintainability.
Out of 45 employees of the respondent, 18 had become members
of a Trade Union. Later, these 18 employees were dismissed by an
order passed on the same day. The Union took up the cause and
ultimately the dispute was referred to the Tll'.bunal, where the respondent raised the ·preliminary objection that the reference was
invalid inasmuch as the dispute referred to the Tribunal was not
an industrial dispute but was merely an individua:l dispute, and besides these d'smissed employees no other employees of the respondent was a member of the Union, and so the Union could not raise
the dispute. This was upheld by the Tribunal. In appeal by speCial
lea:ve;
HELD: The appeal must be allowed.
The definition of "industrial dispute" in s. 2(k) shows that
before rny d;spute raised by any person can be said to be an industrial dispute, it must be shown that it 's connected with the employment or non-employment of that person. This condition is satisfied
in the present case. [396 DJ
Having regard to the broad policy underlying the Act, th's Court
and indeed a majc·rity of Industrial Tribunals are inclined to take
the view that notwithstand''ng the width of the words used by the
Act in. defining an "industrial dispute" it would be expedient to require that a dispute raised by a dism'ssed employee cannot becolne
an industrial dispute, uμless it is supported either by his Union -or,
in the absence of a Union by a number of workmen. [397 B-CJ
Considerations which would be relevant in dealing with a dispute relating to an individual employee's dism'ssal, would not be
material in dealing with a case where a largie number of employees
have been dismissed on the same day.
c399 G-HJ
A Union of workmen may validly ra'se a dispute as to dismissal
even though it may be a union of minority of the workmen empl-Oy-
·ed in rny establishment. Similarly if there 's no union of workmen
in any establishment, a group of employees can raise the dispute
and the dispute then hecomes an industr'al dispute. though it may
relate to the dismissal of an individual employee. [399 HJ
In a given case it is conceivable that the wcrkmen of an establishment have no union of their own and some or· all of them jo:in
the uni··n. of another establishment belong'ng to the same industry.
In sue'. a cas·e, if the said union take up the cause of the workmen
working in an establ'shment which hrn no union of its cwn, it would
be unreasonable to bold that the dispute does not become an industrial dispute because the Union which has sponsored it is
n<ib
the union exclus'vely of the workmen working in the establ:shment
concerned. In every case where industrial adjudication has to decide
B
c
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p
G
:a:
A
B
c
I
D
E
F
G
B
WORKMEN v. Mjs DHARAMPAL (Gajendragadkar, C.J.)
395
whether a reference in regard to the d·ismissal of an industrial employee ls validly made or not it would be necessary to inquire
whether the Union which has sponsored the case can fa'.rly claim a
representative character, in such a way that its support to the case
would make the dispute an industrial dispute. [400 F-H]
Bes'.des, 18 workmen, dismissed by an order passed on the same
day, themselves form a group of workmen which would be just'.fied
in supporting the cause of one another. [ 401 C]
Central Provinces Transport Service v. Raghunath Gopal Patwardhan, [1956] S.C.R. 956 and The Newspapers Ltd. v. The State Industrial Tribunal, U.P., [1957] S.C.R. 754, relied on.
Bombay Union of Journalists v. The H:ndu, Bombay, [1961] II
L.L.J. 436, explained and a:stinguished.
0.VIL APPELLATE JURISDICTION: Civil Appeal No. 532 of 1963.
Appeal by special leave from the Award dated February 9,
1962, of the Industrial Tribunal, Delhi in l.D. No. 294 of 1961.
Sukumar Ghose, for the appellant.
S. V. Gupte, Solicitor-General, S. Murthy and B. P. Maheshwari, for the respondent.
The Judgment ·of the Court was delivered by
Gajendragadkar, C. J. The short question of law which
arises for our decision in this appeal is whether the order passed
by the Delhi A-dministration referring the dispute between the
appellants, the workmen of Mis Dharampal Premchand, Saughandhi and the respondent, the employer, M/s Dharampal Premchand Saughandhi, Delhi was valid. The brder of reference has
been passed by the Delhi Administration under ss. lO(l)(d) and
12(5) of the Industrial Disputes Act, 1947 (No. 14 of 1947) (hereinafter called the Act). When the Industrial Tribunal, Delhi took
up this matter for hearing, the respondent raised a preliminary
objection that the reference was invalid inasmuch as the dispute
referred to the Tribunal by the impugned order of reference is not
an industrial dispute, but is merely an individual dispute which
cannot be the subject-matter of a valid reference under s. 10(1)
of the Act. This contention has been upheld by the Tribunal, with
the result that the Tribunal has held that it has no jurisdiction to
adjudicate upon the merits of the dispute referred to it. It is against
this order that the appellants have. come to this Court by special
leave. On behalf of the appellants, Mr. Sukumar Ghose contends
that the view taken by the Tribunal is not sound, and that raises
the question as to whether the dispute referred to the Tribunal for
its adjudication in the present case can be said to be an industrial
dispute within the meaning of s. 2(k) of the Act.
The facts which it is necessary to state for the purpose of
dealing with this point are very few and they are not in dispute.
The respondent is a firm which carries on business as perfumers
and tobacconists in Chandni Chowk, Delhi. On the 28th July,
1961, the respondent passed the impugned order dismissing the
services of its 18 employees. On that date, the respondent had in
its employment 45 employees. It appears that on the 16th July,
896
SUPREME COUBT REPORTS
[19611) 3 8,0,R.
1961, the 18 employees who were dismissed by the respondent had
become members of the Mercantile Employees' Association which
is a registered Trade Union in Delhi. On the 29th July, 1961, the
said Association took up the cause of the dismissed employees
and carried the dispute before the Conciliation Officer, Delhi. The
conciliation proceedings, .however, failed, and at the instance of
the Association the present reference was made on the 6th September, 1961. It is in the light of these facts that .we have to
decide whether the dispute referred to the Tribunal for its adjudication is an industrial dispute within the meaning of s. 2(k) of the
Act or not.
Section 2(k) defines an "industrial dispute" as meaning any·
dispute or difference between employers and employees, 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 condition of labour, of any
person. This definition shows that before any dispute raised by
any person can be said to be an industrial dispute, it must be
shown that it is connected with the employment or non-employment of that person. This condition is satisfied in the present case,
because the dispute is in relation to the dismissal of 18 workmen,
and in that sense, it does .relate either to their employment or none.mployment. The question, however, still remains whether it is a
dispute be.tween employers and workmen.
Literally construed,
this definition may take within its sweep a dispute between a
single workman and his employer, because the plural, in the context. ·will include the singular.
Besides, in the present case, the
dispute is in fact between 18 workmen on the one hand, and their
employer on the other, and that satisfies the requirement imposed
by the fact that the word "workmen" in the context is used in
the plural. But the decisions of this Court have consistently taken
the view that in order that dispute between a single employee and
his employer should be validly referred under s. 10 of the Act, it
is necessary that it should have been taken up by the Union to
which the employee belongs or by a number of employees. On
this view, a dispute between an employer and a single employee
· cannot, by itself, be treated as an industrial dispute, unless it is
sponsored or espoused by the Union of workmen or by a number
of workmen. In other words, if a workman is dismissed by his
employer and the dismissed workman's case is that his dismissal is
wrongful, he can legitimately have the said dispute referred for
adjudication before an Industrial Tribunal under s. 10(1) of the
Act, provided a claim for such a reference is supported· either by
the Union to which he belongs or by a number of workmen, vide
Central Provinces -Transport Services v. Raghunath Gopal Patwardhan(') and The Newspapers Ltd. v. The State Industrial Tribunal,
U.P.(').
[Jfl.56] N.C.R.
{!.)
s.e.R. 7G4.
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WO]IKMEN lJ. M/s DHARAMPAL (Gajendra.gadkar, O.J.)
397
This view is based on a consideration of the general policy
underlying the provisions of the Act. As is well-known, the Act
has been passed for the investigation and settlement of industrial
disputes, and its material provisions have been enacted, because it
was thought expedient to make provision for such investigation
and settlement of disputes. keeping in min.d the importance of
the development of Trade Union Movement on proper lines in
this country. Having regard to this broad policy underlying the
Act, this Court and indeed a majority of Industrial Tribunals are
inclined to take the view that notwithstanding the width of the words
used by the Act in defining an "industrial dispute", it would be
expedient to require that a dispute raised by a dismissed employee
cannot become an industrial dispute, unless it is supported either
by his Un.ion or, in the absence of a Union, by a number of workmen. Unless such a limitation was introduced, claims for reference
may be made frivolously and unreasonably by dismissed employees,
and that would be undesirable.
Besides, in order to safeguard the interests of the working
class in this country, it was thought that the development of Trade
Union movement on healthy Trade Union lines was essential and
that requires that disputes between employers and employees
should be settled on a collective basis. A complaint against a wrongful dismissal should, therefore, be the subject-matter of reference,
provided the workmen acting collectively take up the case of the
dismissed employee and contend that the dismissal is unjustified
or wrongful. It is on these grounds that this Court has held that
an individual dispute arising from an alleged wrongful dismissal
of an employee can be validly referred under s. 10 only if it is supported by the Union of the workmen to which the dismissed employee belongs or by a group of his co-employees. There is no
dispute that the l\Iercantile Employees' Association has taken up
the dispute on behalf of the 18 dismissed employees. In fact, as
we .have already indicated. the said Association took up this dispute
before the Conciliation Officer and when the conciliation proceedings failed, it successful!v moved the Delhi Administration to make
a reference under s. 10(1) of the Act.
It was, however, urged before the Tribunal that besides the
18 dismissed employees, no other employee of the respondent is
a member of the said Association, and so. it was contended that
H
!he said Association was not authorised to raise the dispute, and
m the absence of proof of the fact that the dispute had been sponsored or espoused by the Union of the employees of the respondent, the reference should be held to be invalid. This contention
has been upheld by the Tribunal; and so, the questie>n which we
have to decide is whether the Tribunal was right in holding that
the Mercantile Employees' Association had no authority to raise
and support the present dispute.
398
SUPREME COURT BEPOBTS
[1965] 3 s.c.n.
In support of its conclusion, the Tribunal has relied upon the
A
decision of this Court in Bombay Union of Journalists and others
v. The "Hindu", [Jombay & Anr.('). In that case, the services of one
Salivateeswaran, who claimed that he was a full-time employee of
the "Hindu", a daily newspaper published in Madras, were terminated and an industrial dispute was raised in respect of the said
termination by the Bombay Union of Journalists. The contention
B
raised by the employer was that the reference was invalid inasmuch
as the dispute referred for adjudication was an individual dispute
and not an industrial dispute. This. contention was accepted by
the Tribμnal; and that brought the dispute before this Court.
In dealing with the effect of the decision pronounced by this o
Court in that case and particularly of certain observations maae
in the course of the judgment, it is necessary to bear in mind one
finding of facfwhich had been recorded by the Tribunal and confirmed by this Court. It appears that in that case, the appellants
strongly relied upon a resolution passed on April 17, 1948, by
which it .was alleged that the Bombay Union of Journalists had
D
taken up the dispute of Salivateeswaran against the "Hindu" and
had decided to demand reliefs for the "retrenched Journalist".
Evidence was led to prove that such.a resolution had been passed,
but that evidence was discarded both by the Tribunal and this
Court. and this Court definitely found that "the evidence tends to
establish the plea raised by respondent No. 1 that the record of
B
the alleged resolution was fabricated· with a view to support the
case of Salivateeswaran". In other words, in point of faOt, there
was no reliable evidence to show that the Bombay Union of Journalists had taken up the case of the .retrenched employee Salivateeswaran. In view of this finding, it follows that the observations
made by this Court in regard to the requirements of a valid referr
ence under s. 10(1) of the Act are in the nature of obiter observa<
tions.
It does appear that in dealing with the point of law as to the
requirements of a valid reference, this Court observed that "the
dispute, in the present case, being prima facie an individual disG
pute, in order that it may become an industrial dispute, it had to
be established that it had been taken up by the Uni6n of employees
of the "Hindu", Bombay, or by appreciable number of employees of the "Hindu", Bombay. Similarly; it was also observed
that the "principle that the persons who seek to support the cause
of a workman must themselves be directly and substantially interB
ested in the dispute, applied to the case before the Col!rt"; and so,
one of the tests which this Court applied was whether the persons
who supported· the cause, were employees of the same employer;
if they were not, it was thought that they could not be regarded
as interested in the dispute and as such, their support may not
(') [I962J 3 s.c.R. 893.
""'
'11·•
•
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E
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G
H
WORKMEN v. Mjs DHARAMPAL (Gajerulraga,dkar, C.J.)
399
convert an individual dispute into an industrial dispute. That is
why the support lent to the cause of Salivateeswaran by the Bombay Union of Journalists was found to be insufficient to convert
the cause into an industrial dispute.
These observations, no doubt, prima facie lend support to the
view which the Tribunal has accepted. It appears that the. Bombay
Union of Journalists had on its roll several working Journalists
in other journals; but out of the three working journalists working
with the "Hindu" at its Bombay office, two had become the members of the Bombay Union of Journalists, viz., Salivateeswaran and
Venkateswaran. Tiwari, the third working journalist working in
the office of the "Hindu", Bombay, had not become a member of
the said Union. In the Office of the "Hindu", there were seven
other workmen, but they were working on the administrative side.
In other words, out of the ten employees in the office of the
"Hindu", seven were on the administrative side, and three on the
journalism side; and out of these three, two were members of the
Union. It is in the light of these facts that this Court expressed
the opinion that the Bombay Union of Journalists was not competent to raise the dispute, and even if it had raised it, the dispute
could not have become an industrial dispute.
In our opinion, the observations on which the Tribunal has
relied in support of its conclusion in the present case, should not
be read as laying down any hard and fast rule in the matter. Take,
for instance, the case of an employer who employs 20 workmen,
and assume that these workmen have not formed any Union. If
the employer illegally dismisses all the workmen employed by him,
it cannot be suggested that the dispute about the dismissal of these
employees would not become an industrial dispute because there
is no Union to support them and the dismissed employees themselves Cinnot convert their individual dispute into an industrial
dispute. fn the present case, out of 45 employees 18 have been
dismissed, and there is no evidence to show that these employees
have a Union of their own. In such a case, it would be difficult
to hold that though the number of employees dismissed is 18, they
cannot raise a dispute by themselves in a formal manner. Considerations which would be relevant in dealing with a dispute relating
to an individual employee's dismissal, would not be material in
dealing with a case where a large number of employees have been
dismissed on the same day. It is not disputed that a union of workmen may validly raise a dispute as to dismissal even though it may
be a union of the minority of the workmen employed in any establishment. The majority union, of course, can raise a dispute, and
if a reference is made under s. 10(1) of the Act at its instance, the
reference, is valid. Similarly, if there is no union of workmen in
any establishment, a group of employees can raise the dispute and
the dispute then becomes an industrial dispute, though it may
400
SUPREME COURT REPORTS
[1965] 3 s.o.n.
relate to the dismissal of an individual employee. This position
is not disputed. If that is so, it is difficult, we think, to apply or
extend the observations made in the case of the Bombay Union of
Journalists(') to the present case. In the present case, we are
dealing with a reference made by the Delhi Administration in relation to the appellants' contention that the dismissal of 18 employees
A
is invalid, and not with a case of the dismissal of a single employee. B
Therefore, we do not think that the Tribunal was right in relying
upon the decision in the case of the Bombay Union of Journalists(')
in support of its conclusion that the present reference was invalid.
It is well-known that in dealing. with industrial disputes, industrial adjudication is generally reluctant to lay down any hard and
fast rule or adopt any test of general or universal application. The
approach of industrial adjudication in dealing
with
industrial
disputes has necessarily to be pragmatic, and the tests which it
applies and the considerations on which it relies would vary
from case to case and would not admit of any rigid
or inflexible formula. There is no doubt that the limitations
introduced by the decisions of this Court in interpreting the effect
of the definition prescribed by s. 2(k) of the Act were based ·on
such pragmatic considerations. It may also be conceded that if
the dismissal of an individual employee working in an establishment in Delhi is taken up by the union of workmen in a place
away from Delhi, that would clearly not make the dispute an
industrial dispute.
Section 36 of the Act which deals with the
representation of parties, incidently suggests that the union which
can raise an individual dispute as to a dismissal validly, should be
a union of the same industry. Generally, it is the union of workmen working in the same establishment which has passed the impugned order of dismissal. But in a given case, it is conceivable
that the workmen of an establishment have no union of their own,
and some or all of them join the union of another establishment
belonging to the same industry. In such a case, if the said union
takes up the cause of the workmen working in an establishment
which has no union of its own, it would be unreasonable to hold
D
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that the dispute does not become an industrial dispute because the
union which has sponsored it is not the union exclusively of the
workmen working in the establishment concerned. In every case
where industrial adjudication has to decide whether a reference in
regard to the dismissal of an industrial employee is validly made
or not, it would always be necessary to enquire whether the union
which has sponsored the case can fairly claim a representative
J!
character in such a way that its support to the cause would make .
the
an industr!al dispute. "lndust;y'' Iias been defined by
s. 2(J) of the Act and 1t seems to us that m some cases, the union
of workmen working in one industry may be competent to raise a
dispute about the wrongful dismissal of an employee engaged in
an establishment belonging to the same industry where workmen
(') [1962) 3 S.C.R. 893.
WOllKMENV. M/S DllARAMPAL (Gajendragadlu1r, C.J.)
.[01
A
in such an establishment have no union of their own, and an appreciable number of such workmen had joined such other union
before their dismissal. In fact, the object of trade union movement
is to encourage the formation of larger and bigger unions on healthy and proper trade union lines, and this object would be frustrated if industrial adjudication were to adopt the rigid rule that
B
before any dispute about wrongful dismissal can be validly refer·
red under s. 10(1) of the Act, it should
the support of the
union consisting exclusively of the workmen working in the estab·
lishment concerned.
Besides, there is another way in which this question can be
o
considered. If 18 workmen are dismissed by an order passed on
the same day, it would be unreasonable to hold that they them·
selves do not form a group of workmen which would be justified in
supporting the cause of one another. In dealing with this
question, we ought not to forget the basic theory on which limita·
tion has been introduced by this Court on the denotation of the
D
words "industrial dispute" as defined by s. 2(k) of the Act. Therefore, we are satisfied that the Tribunal was in error in rejecting the
reference on the preliminary ground that the dispute referred to
it was an individual dispute and not an industrial dispute within
the meaning of s. 2(k:).
E
The result is, the appeal is allowed, the finding of the Tribu·
nal on the preliminary issue is reversed, and the matter is sent
back to the Tribnnal for disposal in accordance with law. There
would be no order as to costs.
Appeal allowed.