# [1978] 3 S.C.R. 370

- **Citation:** [1978] 3 S.C.R. 370
- **Court:** Supreme Court of India
- **Decided:** 1978-02-21
- **Bench:** M. H. Beg, P. N. Bhagwati, D. A. Desai
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1978-3-s-c-r-370-7327
- **Pages:** 17

## Headnote

Industrlal Disputes Act, 1947-Section 33(c)(2)-Mainttdnability of an
application under s.33 c (2)-Nature of Proceedings under Section 33(c)(2).
Industrial Disputes Act, (No. XIV of 1947), 1947 Section 33-0bject ofScope of the inquiry before the Tribunal exercising jurisdiction under Section
33.
Co~truction of a. statute-Construction should be with reference to the
context and other provisions of statute-Construction of S. 33 of the Industrial
Disputes Act, 1947.
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Industrial Disputes Act, 1947, Section 33A-Scope of the inquiry effect of
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S. 33 on the interpretation of S. 33.
Industrial Disputes Act. (No. XIV of 1947), 1947-Sections 31, 33(2) (b),
33A, 33C(2), Scope of-Effect of contravention of Section 33 (2)(b) on an
order of dismissal passed by an ernployer in breach of it-Whether it renders
the order of lfismissal void and inoperative.
Respondent No. I in (C.A. 1375 of 1977) was a workman employed as an
operator in the Undertaking of the appellant from Ist March, 1970 and was in
receipt of Rs. 1001- per month as salary, which would have been raised to
Rs. il5/- per month from Ist October, 1972, if he had continued in service
\Vith the appellant.
But on 21st December, 1971 the 1st Respondent was suspended by the appellant and a Charge-sheet was served upon him and before
any inquiry on the basis of this Charge-sheet could be held another Chargesheet was given to him on 17th April, 1973. This was followed by a regular
in9uiry and ultimately the appellant, finding the 1st Respondent
guilty,
dismissed him from service by an order dated 23rd December, 1974. Since, an
Industrial Dispute was pending at the time when the Jst Respondent \\'as dismissed from service in view of the provisions contained in S.
33(2)(b)
of
tho Industrial Disputes Act, the appellant immediately approached Industrial
Tribunal at Chandigarh before which the Industrial dispute was pending for
approval of the action taken by it. The appellant, however, withdrew that
application and the Industrial Tribunal, thereupon, made an order on 4th
September 1976 dismissing the application as withdrawa The 1st Respondent
then demanded from the appeUant full wages from the date of his suspension
till the date of demand, contending that as the action of the appellant dismissing
him was not approved by the Industrial Tribunal, he continued to be in service and was entitled to all the emoluments. The appellant did not respond to this demand of the Ist Respondent. whereupon, the latter made an
application to the Labour Court under S. 33-C(2) for dctefmiitation aod
payment of the amount of wages due to him from the date of suspension on
the gronnd that the appellant not having obtained the approval of the Industrial Tribunal to the dismissal under s. 33(2)(b) the Order of dismissal was
void and the 1st Respondent continued to be in service and was entitled to
receive his wages from the appellant. The appellant resisted this application
under S. 33-C(2) inter alia on the ground that the application under S. 33(2)
(b) having been withdrawn the position was as if no application had been
made at all, with the result that there was contravention of S. 3312)(b) but
such contravention did not render the order of dismissal void ab inltio and it
was nterely illegal and unl.ess it was set aside in an appropriate proceeding
1aken by the 1st Respdt. under S. 33-A or a reference unJer S. 10, the Labour
T
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,PUNJAB BEVERAGES V. SURESH CHAND
371
Court had no jurisdiction under S. 33-C(2) to direct payn1en~· of 'vage:; :to ~he
lst Respondent on the basis that he continued in service and the apphcauon
.made by the Ist Respondent accordingly was incompetent.
A
The Labour Court rejected the contention of the appellant and held that
since refcrer.ce in regard to non industrial dispute between the appell;int_ and
the workman was pending before the Industrial Tribunal, it \Vas not competent
to the appellant to pass an order of dismissal against the lst Respondent, unless

## Text

_Characters 0–39,694 of 59,554. This is a partial read: ask again with offset=39694 for what follows._

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370
PUNJAB BEVERAGES PVT. LTD., CHANDIGARH
v. '
SURESH CHAND AND ANR.
February 21, 1978
[M. H. BEG, C.J., P. N. BHAGWATI & D. A. DESAI, JJ.J
Industrlal Disputes Act, 1947-Section 33(c)(2)-Mainttdnability of an
application under s.33 c (2)-Nature of Proceedings under Section 33(c)(2).
Industrial Disputes Act, (No. XIV of 1947), 1947 Section 33-0bject ofScope of the inquiry before the Tribunal exercising jurisdiction under Section
33.
Co~truction of a. statute-Construction should be with reference to the
context and other provisions of statute-Construction of S. 33 of the Industrial
Disputes Act, 1947.
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Industrial Disputes Act, 1947, Section 33A-Scope of the inquiry effect of
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S. 33 on the interpretation of S. 33.
Industrial Disputes Act. (No. XIV of 1947), 1947-Sections 31, 33(2) (b),
33A, 33C(2), Scope of-Effect of contravention of Section 33 (2)(b) on an
order of dismissal passed by an ernployer in breach of it-Whether it renders
the order of lfismissal void and inoperative.
Respondent No. I in (C.A. 1375 of 1977) was a workman employed as an
operator in the Undertaking of the appellant from Ist March, 1970 and was in
receipt of Rs. 1001- per month as salary, which would have been raised to
Rs. il5/- per month from Ist October, 1972, if he had continued in service
\Vith the appellant.
But on 21st December, 1971 the 1st Respondent was suspended by the appellant and a Charge-sheet was served upon him and before
any inquiry on the basis of this Charge-sheet could be held another Chargesheet was given to him on 17th April, 1973. This was followed by a regular
in9uiry and ultimately the appellant, finding the 1st Respondent
guilty,
dismissed him from service by an order dated 23rd December, 1974. Since, an
Industrial Dispute was pending at the time when the Jst Respondent \\'as dismissed from service in view of the provisions contained in S.
33(2)(b)
of
tho Industrial Disputes Act, the appellant immediately approached Industrial
Tribunal at Chandigarh before which the Industrial dispute was pending for
approval of the action taken by it. The appellant, however, withdrew that
application and the Industrial Tribunal, thereupon, made an order on 4th
September 1976 dismissing the application as withdrawa The 1st Respondent
then demanded from the appeUant full wages from the date of his suspension
till the date of demand, contending that as the action of the appellant dismissing
him was not approved by the Industrial Tribunal, he continued to be in service and was entitled to all the emoluments. The appellant did not respond to this demand of the Ist Respondent. whereupon, the latter made an
application to the Labour Court under S. 33-C(2) for dctefmiitation aod
payment of the amount of wages due to him from the date of suspension on
the gronnd that the appellant not having obtained the approval of the Industrial Tribunal to the dismissal under s. 33(2)(b) the Order of dismissal was
void and the 1st Respondent continued to be in service and was entitled to
receive his wages from the appellant. The appellant resisted this application
under S. 33-C(2) inter alia on the ground that the application under S. 33(2)
(b) having been withdrawn the position was as if no application had been
made at all, with the result that there was contravention of S. 3312)(b) but
such contravention did not render the order of dismissal void ab inltio and it
was nterely illegal and unl.ess it was set aside in an appropriate proceeding
1aken by the 1st Respdt. under S. 33-A or a reference unJer S. 10, the Labour
T
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,PUNJAB BEVERAGES V. SURESH CHAND
371
Court had no jurisdiction under S. 33-C(2) to direct payn1en~· of 'vage:; :to ~he
lst Respondent on the basis that he continued in service and the apphcauon
.made by the Ist Respondent accordingly was incompetent.
A
The Labour Court rejected the contention of the appellant and held that
since refcrer.ce in regard to non industrial dispute between the appell;int_ and
the workman was pending before the Industrial Tribunal, it \Vas not competent
to the appellant to pass an order of dismissal against the lst Respondent, unless the action so taken was approved by the Industrial Tribunal· under s. 33
B
(2)(b) and consequently the appellant having withdrawn the application for
approval under S. 33(2) (b) antl the approval of the Industrial .Tribunal to
the order of dismissal not having been obtained the order. of d1smiss~l '_Vas
ineffective and the Labour Court had jurisdiction to entertain the apphcat1on
of the 1st Respondent under S. 33-C(2) and to direct the appellant to pay tbe
arrears of wages to the Ist Respondent. The Labour Court accordingly, allowed the application of the Ist Respondent and directed the appellant to pay
an aggregate sum of Rs. 6485.48 to the 1st Respondent on ac.count of arrears
of wages upto 30th September 1966.
Similarly, on identical facts the Labour
C
Court also allowed the application of another workman Shti Jagdish Singh
(Ist Respondent in Civil Appeal No. 1384 of 1977) and directed the appellant
to pay him a sum of Rs. 6286.80 in respect of arrears of wage,s upto the same
date. The appellant thereupon preferred Civil Appeals Nos. 1375 and 1384
of 1977 after obtaining special leave from this Court.
Allowing tbe appeals, by special leave and converting the arrears of wages
into compensation, the· Court.
D
HELD : 1.(a) It is only if an order of dismissal passed in contravention
of section 33 (2)(b) is null and void that the aggrieved workman would be
entitled to maintain an application under section 33C(2) for determination
and payment of the amount of wages due to him on the basis of that be
continues in service despite· the order of dismissal.
[376 E·fJ
(b) A proceeding under section 33C(2) is a proceeding in the nature of
executive proceeding in 'Nhich the Labour Court calculates the amount of
money due to a workman from his employer. or, if the workman is entitled
to any benefit v;hich is capable of being computed in terms of money, proceeds to compute the benefit in terms of money. But the right to the money
which is sought to be calculated or to the benefit which is sought to be computed must be an existing one, that is to say, already adjudicated upon or
provided for and must arise in the course of and in relation to the relationship bet\vccn the industrial workmen, and his employer. [376 F-ll]
Chief Mining Engineer, East India Coal Co. Ltd. v. Ra1nesh1var and Ors.
[1968] I SCR 140, referred to .
(c) It is not competent to the Labour Court exercising jurisdiction under
section 33(C) (2) to arrogate to itself the functions of an industrial tribunal
and entertain a claim which is not based on an existing right but which may
appropriately be made the subject-matter of an industrial dispute in a reference
under section JO of the Act. [376 H, 377 A]
Gopal v. Union of India .. [1968]1 LL.J. 589: Central Bank of India Ltd.
v. :S. Rajagorytfan, etc. [1964] 3 S.C.R. 140, applied .
2. (a) The object of the legislature in enacting section 33 clearly appears
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to be to protect the \\'Ork.man concerned in the dispute which forms the sub~
je~t-ll!atter of pending conciliation or adjudication proceedings, against victim1sat1on by the employer on account of his having raised the industrial dispute
or his continuing the pending proceedings and to ensure that the pending proceedings are brought to an expeditious termination in a peaceful
atmosphere,
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undisturbed by any .subsequent cause tending to fl,11iher exacerbate the already strained relations betv.'een the employer and the workmen..
But at the .
same .time it recognises that occasions may arise when the employer may be
372
SUPREME COURT REPORTS
(1978] 3 S.C.R.
A
justified in discharging or punishing by disn1issal his employee and so it allows
the employer to take such action, subject to the condition that in the one
case before doing so, he must obtain the express permission in V.Titing of the
Tribunal before which the proceeding is pending and in the other, he must
immediately apply to the Tribunal for approval of the action taken by him.
[378 F-H]
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( b) The only scop~ of the inquicy before the Tribunal exercising jurisdiction under section 33 is to decide whether the ban imposed on the employer by
this section should be lifted or maintained by granting or refusing the permission or approval asked for by the employer. If the pcnnission or approval is refused by the Tribunal, the employer -..vould be precluded from discharging or punishing the \VOrkman by way of dismissal and the action of discharge or disn1issal alrendy taken \vould be void.
But the reverse is not true
for even if the permission or approval is to be granted that would not validate
the action of discharge or punishment by way of dismissal taken by the employer. The permission or approval would merely remove the ban so as to.
enable the employer to make an order of discharge or dismissal and thus
avoid incurring the penalty under section 31(1), but the validity of the order
of discharge or dismissal- would still be liable to be tested in a reference at
the instance of the workmen under section 10. The workman would be entitled
to raise an industrial dispute in regard to the order of discharge or ·dismissal
and have it referred for adjudication under s. 10 and the Tribunal in such·
reference would be entitled to interfere with the order of discharge or dismissal'
within the limits held down by this Court in several decisions commencing
from l11dia11 /1011 & Steel Co. Ltd. v. Their Workmen, 1958 S.C.R. 667. Thra
is the position which arises when the employer makes an application for permission or approval under section 33 and such permission or approval is
granted or refused. [379 D·H, 380 A]
The Punjab National Bank Ltd. v. Its Workmen, (1960) I S.C.R.
80&
@ 826., Atherton West & Co. Ltd. v. Suti Mills Mazdoor Union and Ors.
[1953) S.C.R. 780, Lakshmi Devi Sugar Mills Ltd. v. Pt. Ram Sarup, [1956!
S.C.R. 916, applied.
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3. (a) The exposition of the statute has to be ex visceribus Actus. NoF
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one section of a statute should be read in isolation, but it should be construed
with reference to the context and other provisions of the statute, so as, as far
as possible, to rnake a consistent enactmel\t of the whole status. [377 F-G.
& 380 CJ
Cokuhoun v. Brooks, (1889) 14 A.C. 493 at 506 referred to.
Lincoln College Case [1595) 3 Co. Rep.b
referred to.
(b) Section 33 in both its limbs undoubtedly uses language which is mandatory in terms and section 31(1) makes it penal for the employer to commit
a breach of the provisions of Section 33 and therefore, if section 33 stood'
alone, it might lend itself to the construction that any action by way of dis·
charge or dismissal taken against the workman would be void if it is in contravention of Section 33.
But Section 33 cannot be read in isolation.
Section 33 must be constmed not as if it were standing alone and apart from the--
rest of tJ:ie Act. but in the light of the next following section 33A and if these
two sections are read together, it is clear that the legislative intent was not
to invalidate an order of discharge or dismissal passed in contravention of·
section 33, despite the mandatory language employed in the section and the·
penal provision enacted in section 31(1) (380 B-C, D-E]
· 4. (a) Section 33A ~ives to a workman aggrieved by an order of dischargeor dismissal passed against him in contravention of section 33, the right to
move the Tribunal for redress of his grievance without having to take recourseto section !(). [380 H. 381 Al
(b) Th~ first issue which is required to be decided in a complaint filed
by an aggneved workman under section 33A is whether order of ct.ischarge or
dismissal made by the employer is in contravention of Section 33.
The foun-
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PUNJAB BEVERAGES V. SURESH CHAND
373
dation pf the complaint under section 33A is contravention of section 33 and
A
if the workman is unable to show that the employer has contravened section
33
in
making
the
order
of
discharge
or
dismissal, the
complaint
would
be
liable
to be
rejected. But
if
the
contravention of section
33 is established, the next question would be \Vhether the order of discharge
or dismissal passed by the employer is justified on merits. The Tribunal would
have to go into this question and decide whether, on the merits, the order of
discharge or dismissal passed by the employer is justified and if it is. the
Tribunal would sustain the order, treating the breach of section 33 as a mere
B
tcchnica1 breach. Since, in such a case, the original order of discharge or
dismissal would stand justified, it would not be open to the Tribunal, unless
there are compelling circumstances, to make any substantial order of compensation in favour of the workman. The Tribunal y;·ould have to consider all
the aspects of the case and ultimately what order would meet the ends of
justice \\'Ould necessarily have to be determined in the light of the circumstances of the case. But mere contravention of section 33 by the employer will
not entitle the workman to an order of reinstatement, because inquiry under
section 33A is not confined only to the detern1ination of the
question as to
C
whether the employer is proved, the Tribunal has to go further and deal also
with the merits of the order of discharg~ or dism:ssal. [382 I-l. 383 1\-D]
The Auton1obile Products of India f_td. v. R11kn:aji Bala and Ors. [1955J
1 S.C.R. 1241; Equ:tablc Coaz·co. v. Algu Sing/I, A.LR. 1958 S.C. 761, Punjab
J\Tational !Jank Ltd. v. '!.ts Workn1cn, [1960] 1 S.C.R. 806 ([!) 826, applied.
(c) The very fact that even after the contravention of section 33 is proD
ved, the Tribunal is required to go into the further question whether the order
of discharge or dismissal passed by the employer is justified on the merits,
clearly indicates, that the order of discharge is not rendered void and inoperativi! hy such contn1vention. f383 E-Fl
(d) If the contravention of section 33 were construed as having an invalidating effect on the order of discharge or dismissal, section 33A would be
rendered meaningless and fultile because in that event, the \\'Orkman would
invariably prefer to make an application under section 33(C) (2) for determination and payment of the wages due to him on the basis that he continues
to be in 'service.
Jf the v.'orkmc:in filed a complaint under section 33A, he
would not be entitled to succeed merely by showing that there is contravention
of section 33 and the question whether the order of discharge or disn1issal is
justified on the merits ¥.'OU]d be gone into by the Tribunal and if, on merits,
it is found to be justified, it would be sustained as valid despite contravention
of section 33, but if, on the other hand, instead of proceeding under section
33A, he makes an application under section 33C(2), it would be ~nough for
him to show contravention of section 33 and he would then be entitled to
claim \Vages on the basis that he continues in service. Another
consequent
which \\'ould arise on this interpretation \vould be that if the workman files
a complaint under section 33A, the employer \\'Ould have an opportunity of
justifying the order of discharge or dismissal on merits, but if the \vorkman
proceeds under section 33C(2), the employer would have no such opportunity.
WJiether the e!llployer should be able to justify the order of discharge or dismissal on merits would depend upon what remedy is pursued by the
Workmen, whether under section 33A or under section 33C(2). Such a highly
ano~alous re~ult could never have been intended by the legislc:iture.
If such
an !nterpretatton \\'ere accepted, no workman would file a
cotltplaint
under
section 33A, but he would always proceed under section 33C(2) and section
33A would be reduced to fi:tility. It is_. therefore, in1possible to accept the
argu~e11:t that ~he con~ravenh~n of secto1n 33 renders the order of discharge
or d1sm1ssal void and 1noperat,tve and if that be so, the only remedy availablP
to the workman for challenging the order of discharge or disrnissal is that
provided under section 33A, apart of course from the remedy under section
l~, a?d he cannot maintain an application under section 33 C(2) for determination and payment of \\'ages on the basis that he continues to be in ser~
vice. The workn1an can proceed under section 33 C(2) only after the ·rribunat has adjm.Ikatell, on a complaint under section 33A or on a reference
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374
SUPREME COURT REPORTS
[1978] 3 S.C.R.
A
under section 10. that the order of discharge or dismissal passed by the em·
ployer was not justified and ha" set aside that order and reinstated the work·
man. [383 Ii, 384 A-F]
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5. In the employer contravenes the provisions of section 33 and discharges
or dismisses a 1-vorkman \Vithout obtaining permission or approval of the Tribunal, he \vould render hin1self liable to punishment under section 31 (1) and
this punishment can extend even to in1prisonment 11oreover, the aggrieved
\VOrkman vlould not only have the remedy of moving the appropriate Gove1nment for making a reference under section 10, but he \VOuld also be entitled
to make a complaint to the Tribunal under section 33A and on such reference Or
complaint, the order of discharge or dismissal would be liable to be subjected
to a much greater scrutiny than what would be available before a Tribunal
exercising the limited jurisdicti·on conferrrd under \Section 33. The \\'Orkman is thus not left \Vithout remedy, though according to the trade union
movement, the remedy provided under sections, 31, 10 and 33A may not be
as adeq11ate as the workman might \vish it to be. [384 G-H, 385 Al
6. \Vhere the Tribunal entertains nn application for approval under section
33 (2) (b) on merits, it applies its n1ind and considers whether the dismissal
of the workman amounts to victimisation or unfair labour practice and \Vhether
a prilna facie case has been 1nade out by the employer for the dismissal of
the workman. If the Tribunal finds that either no prirna facie case has been
n1ade out or there is victimisation or unfair Jabour practice, it
would re[use
to grant approval and reject the application on merits. Then of course,
the dismissal of the workman 'vould be void and inoperative, but that
'NOuld be because the Tribunal having held that no prilna facie case has
been n1ade out by the employer or there is victimisation or unfair labour
practice, it has refused to lift the ban. Where, however,
the application
for approval under
section
33(2) (b)
is
\Vithdrawn by
the employer and there is no decision on it on merits. it cannot oe said that
the approval bas been refused by the Tribunal. The Tribunal having had no
occasion to consider the application on merits, there can be no question of
the Tribunal refusing approval to the employer.
It cannot be said that where
the application for approval is withdrawn, there is a decision by the Tribunal
to refuse to lift the ban. The withdrawal of the application for approval
stands on the same footing as if no application under section 33 (2) (b) has
been
n1~1de nt :.JL f385 D-G1
(b) In the instant case the appellant contravened sectron 13(2)(h) in dis~
missing the workman in both the appeals but such contravention did not have
the effect of rendering the orders of dismissal void and inoperative and hence
the workmen were not entitled to maintain the applications for determination
and pavment of w~ges JJ.nder section 33 C(2). [385 G-Hl
Crv1L APPELLATE JURISDICTION : Civil Appeal Nos.
1375 and
1384 of 1977-
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Appea~s by Special Leave from the Judgment· and Order
dated
1
14-2-77 of the Addi. Labour Tribunal Chandigarh in l.D. Case No.
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66-67 /76 respectively.
AND
Civil Appeal No. 2820 of 1977.
Appeal bv Special Leave from the Judgment and Order dated 4th
November, 1977 of the Rajasthan Tribunal Court in C.A. No. LC-3
1976.
Soli Sorabjee. Addi. Sol. Genl. (for the intervener in CA 2820),
Anand Prakash, H. K. Puri & Lakshmi Anand Praka$h for the appellants in all the appeals and applicant intervener
M/s.
Hindustan
Copper Ltd.
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PUNJA!l BEVERAGES v. SURESH CHAND (Blzagwati, J.)
375
R. K. Garg, S. C. Agarwal, V. I. Francis & Aruneshwar Gupta for
A
the respondents : applicant in'.ervener/Shri N. K. Saxena.
The Judgment of t11e Court was delivered by
BHAGWATT, J., These two appeals by special leave raises a short
but interesting question of law relating to the interpretation of sections 33(21 (b) and 33(c) (2) of the Industrial Disputes Act, 1947
(hereinafter referred to as the Act) . The facts giving rise to the two
appeals are almost identical and it would, therefore, be sufficient if
we set out the facts of only one of the two ·appeals, namely Civil
Appeal No. 1375 of 1977.
B
The first respondent was a workman employed as an operator in
the undertaking of the appellant from 1st March, 1970 and he. was iri
C
receipt of Rs. I 00 /- per month as salary which would have been raised
to Rs. J 151- per month from Isl August, 1972 if he had continued
in service with the appellant.
But on 21st December, 1971 the !st
respondent was suspended by the appellant and a chargesheet was
served upon him and before any inquiry on the basis of this charge
sheet could be held, another charg~sheet was given to him on 17th
D
April, 1973.
This was followed by a regular inquiry and ultimately
the appeEant, findi'ng the 1st respondent guilty, dismissed him from
service by an order dated 23rd Deoornber, 1974.
Now, at the time
when the I st respondent was dismissed from service, an industrial
dispute was pending before the Industrial Tribunal at Chandigarh, and
therefor:, in view of the provisions contained in section 33(2) (b) ot
the Act, the appellant immediately approached the Industrial Tribunal,
E
before which the industrial dispute was pending, for approval of the
action taken by it. The application was resisted by th~ !st respondent,
but before it came up for hearing,_ the appellant applied to the Industrial Tribunal for withdrawing the application and the Industrial Tribunal thereupon made an order on 4th September, 1976 dismissing the
application as withdrawn.
The !st respondent then demanded from the
appellant full wages from the date of his suspension till the date of
F
demand contending that as the action of the appellant dismissing the
1st respondent was not approved by the Industrial Tribunal, the !st
respondent continued to be in service and was entitled to all the emoluments.
The appellant did not respond to this demand of the 1st respondent, whereupon the 1st respondent made an application to the
labour Court under section 33C(2) for determination and payment of
the amount of wag~s due to the 1st respondent from the date of susG
pensio'n, on the ground that the appellant not having obtained the
approval of the Industrial Tribunal to the dismissal of the 1st respondent under section 33(2){b), the order of dismissal was void and the
!st respondent continw~d to be in service and was entitled to receive his
wages from the appellant.
The appellant resisted this application under
sectio'n 33C(2) inter alia on the ground that the application under section 33(2) (b) having been withdrawn the position was as if no applicaH
tion had !:>=en made at all with the' result that there was contravention
of section 33(2) (b), but such contravention did hot render the order
of dismissal void ab initio and it was merely illegal and unless it was
376
SUPREME COllRT REPORTS
[I 978J 3 S.C.R.
A set asi<te in an appropriate proceeding taken by the l st respondent
secton 33A or in a reference under section 10, the Labour Court had
no jurisdiction ooder section 33C(2) to direct payment of wages to the
1st respo'ndent on the basis that he continued in service and the application made by the 1st respondent was accordingly incompetent.
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The Labour Court rejec~~d the contention of the appellant and
held that since a reference in regard to an Industrial dispute between
the appellant and its workmen was pending before the Industrial Tribunal, it was not competent to the appellant to pass an order of dismissal
against the 1st respondent unless_ the action so taken was approved
by the Industrial Tribunal under &xtion 33(2) (b), and consequently,
the appellant having withdrawn the application for approval under section 33(2) (b) and the approval of the Industrial Tribunal to the order
of dismissal not having been obtained, the order of dismissal was ineffective and th~ Labour Court had jurisdiction to entertain the application of the 1st respondent under section 33C(2) and to direct the
appellant to pay the arrears of wages to the 1st respondent.
The
Labour Court accordingly allowed the application of the 1st respondent and directed the appellant to pay an aggregate sum of Rs. 6485.48
to the 1st respondent on accourit of arrears of wages up to 30th September, 1976. Similarly and on identical facts, the Labour Court also·
allowed the application of another workman and directed the appellant
to pay to him a sum of Rs. 6262.80 in respect of arrears of wages upto·
the same date. The appellant thereupon preferred Civil Appeals Nos.
1375 and 1384 of 1977 after obtaining special leave from this Court.
The principal question which arises for consideration in
these
appeals is as to what is the effect of contravention of section 33(2) (b)
on an order of dismissal passed by an employer in breach of it. Does
it render the order of dismissal void and inoperative so that the aggrieved workman can say that he continues to be in service and is entitled
to receive wages from the employer ? It is only if an order of dismissal passed in contravention of section 33 (2)(b) is null and void
that the aggrieved workman would be entitled to maintain an application
under section 33C(2) for determination and payment of the amount of
wages due to him ou the basis that he continues in service despite t~e
order of dismissal.
It is now well settled, as a result of several d·~c1sions of this Court, that a proceeding under section 33C(2) is a proceeding in the 'nature of executive proceeding in which the Labour
Court calculates the amooot of money due to a workman from
his
employer, or, if the workman is entitled to any benefit which is capable
of being computed in terms of money, proceeds to compute the benefit in terms of money.
But the right to the money which is sought to
be calculated or to the benefit which is sought to be computed must be
an existing o'ne, that is to say, already adjudicated upon or provided
for and must arise in the course of and in relation to the relationship
between the industrial workman, and his employer.
Vide Chief Mining En~ineer East India Coal Co. Ltd. v. Rameshwar & Ors.(')
It is0
not comoetent to the Labour Court ex>~rcisi'ng jurisdiction under section 33C(2) to arrogate to itself the functions of an industrial tribunal'
____ ,, _____ ... _ _._.
(I) (1968] I S.C.R. 140.
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PUNJAB BEVERAGES v. SURESH CHAND (Bhagwati, J.)
377
and entertain a claim which is not based on an existing right but which
may appropriately be made the subject-matter of an industrial dispute
in a reference u'nder section I 0 of the Act.
V ide Gopaul v. Union of
India(').
That is why Gajendragadkar, J., pointed out in The Central
Bank of India Ltd. v. P. S. Rajagopalan etc.(2 ) that "if an employee
is dismissed or demoted and it is his case that the dismissal or .demotion is wrongful, it would not be open to him to make a claim for the
recovery of his salary or wages under section 33C(2). His demotion
or dismissal may give rise to an industrial dispute which may be
appropriately tried, but once it is shown· that the employer has dismissed or demoted him, a claim that the dismissal or demotion is unlawful and, therefore, the employee continues to be the workman of
the. emplover ancl is entitled to the benefits due to him under a preexisting contract, cannot be made under section 33C(2)". The workman, wbo nas been dismissed, would no longer be in the service of the
employer and though it is possible that on a reference to the Industrial
Tribunal under Section 10 the Industrial Tribunal may find, on the
material place.d before it, that the dismissal was unjustified, yet until
such adjudication is made, the workman cannot ask the Labour Court
in an application under section 33C(2) to disregard his dismissal as
wrongful and on that basis to compute his wages. The application under
section 33C(2) would be maintainable only if it can be shown by the
workman that the order of dismissal passed against him was
void
ab initio.
Hence it becomes necessary to consider whether the contravention of section 33(2)(b) introduces a fatal infirmity in
the
order of dismissal pasred in violation of it so as to rehder it wholly
without force or effect, or despite such contravention, the order of
dismissal may still be sustained as valid.
The determination of this question depends on the true interpretation of section 33(2)(b), but it is a well settled rule of construction
that no one section of a statute should be read ih isolation, but it Should
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be construed with reference to the context and other provisions of the
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statute, so as, as far as possible, to make a: consistent enactment of the
whole statute.
Lord Herschell stated the rule in the following words
in Colguhoun v. Brooks.(8)
"It is beyond dispute, too, that we arc
entitled, and ihdeed bound, when construing the terms of any provision
found in a statute, to consider any other parts of the Act which throw
light on the intention of the legislature, and which may serve to show
that the particular provision ought not to be construed as it would
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be alone and apart from the rest of the Act." We must therefore.
have regard not only to the language of sectioh 33(2) (b). but also to
the ol)ject and purpose of that provision, the context in which it occurs
and other provisions of the Act in order to determine what the legislature intended should be the effect of contravention
of scc'.ion
33 (2) (b) on the order of dismissal.
(I) [1968] I L.L.J. 589.
121' [1964] 3 S.C.R. 140.
(l) [1889] 14 A.C. 493 at oOF.
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SUPREME COURT REPORTS
[1978] 3 s.c.R.
W7 may first ~xamine the object and purpose for which section 33,
of which sub-section 2 (b) forms part, has been introduced in the Act.
This s~ction, as ori~nally enacted, was in a simple form, but over the
years 1t suffered various charges and in its present form it reads inter
alia as follows :
"33. (1) During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any
proceeding oofore an arbitrator or a Labour Court or Tribunal or National Tribunal in respect of an industrial dispute,
no employer shall, -
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(b) for any misconduct connected with the dispute, discharge or punish, whether by dismissal or otherwise any workmen concerned in such dispute, save with the express permission in writing of the authority before which the proceeding
is pending.
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(2) During the pendency of any such proceeding in respect of an industrial dispute the employer may ....... .
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(b) for any misconduct not connected with the dispute,
discharge or punish, whether by dismissal or otherwise, that
workman:
Provided that no such workman shall be discharged or
dismissed, unless he has been paid wages for one month and in
application has been made by the employer to the authority
before which the proceeding is pending for approval of the
action taken by the employer".
The object of the legislature in enacting this section clearly appears to
be to protect the workman concerned in the dispute which forms the
subject-matter of pending conciliation or adjudication proceedings,
against victimisation by the employer on account of his having raised
the industrial dispute or his continuing the pending proceedings and to
ensure that the pending proceedings are brought to an expeditious termination in a peaceful atmosphere, undisturbed by any subsequent
cause tending to further exacerbate the already strained relations between the employer and the workmen.
But at the same time it recognises that occasions may arise when the employer may be justified in
discharging or punishing by dismissal his employee and so it allows the
employer to take such action, subject to the condition that in the ene
case before doit1g so, he must obtain the express permission in writing
of the Tribunal before which the proceeding is pending and in the other,
he must immediately apply to the Tribunal for approval of the action
taken by him.
On what principles however is the Tribunal to act ill
granting or refusing permission or approval and what is the scope Of
the inquiry before it when it is moved under this section ? This ques-
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PUNJAB BEVERAGES v. SURESH CHA'.'ID (Bhagwati, J.)
379
tion came up for consideration and was decided by this Court i'n Atherton West & Co. Ltd. v. Suti Mill Mazdoor Union & Ors.(') and Lakshmi
Devi Sugar Mills Ltd. v. Pt. Ram SarupC') and Gajendragadkar, J,
summarised the effect of these two decisions in the following words in
The Punjab National Bank, Ltd. v. Its Workmen.(•)
"Where .an applicatio'n is made by the employer for the
reqnisite permission under S. 33 the jurisdiction of the tribunal
in dealing with snch an application is limited. It has to consider whether a prima facie case has been made out by the
employer for the dismissal of the employee in question. If
the employer has held a proper enquiry into the alleged
misconduct of the employee, and if it does not appear that
the proposed dismissal of the employee amounts to victimisation or an unfair labour practice, the tribunal has to limit its
enquiry only to the qucst10n as to whether a prima facie case
has been made out or not. In these proceedings it is not
open to the tribunal to consider whether the order proposed
to be passed by the employer is proper or adequate or whether
it errs on the side of excessive severity; nor can the tribunal
grant permission, subject to certain conditions, which it may
deem to be fair.
It has merely to consider the prima facie
aspect of the matter and either grant the permission or refuse
it according as it holds that a prima facie case is or is not
made out by the employer."
It will be seen that the only scope of the inquiry before the Tribunal
exercising jurisdiction under section 33 is to decide whether the ban
imposed o'.n the employer by this section should be lifted or maintained
by granting or refusing the permission or approval asked for by the
employer. If the permission or approval is refused by the Tribunal,
the employer would be precluded from discharging or punishing the
workmun by way of dismissal and the action cf discharge 0r dismissal
a!readv taken would be void.
But the reverse is not true for even if
the permission or approval that would not validate the action of discharge or is granted pu'nishment by way of dismissal taken by the
employer.
The permission or approval would merely remove the ban
so as to enable the employer to make an order of discharge or dismissal and thus avoid incurring the penalty under section 31 (1), bnt the
validity of the order of discharge or dismissal would still be liable to
be tested in a referenee at the instance of the workmen under section
10. Vide Atherton West & Co.'s case and t11e Punjab National Bank
case.
The workman would be entitled to raise an industrial dispnte
in. regard to the order of discharge or dismissal and have it referred for
' adjudication under s. 10 and the Tribunal in such reference would be
entitled to interfere with the order of discharge or dismissal within the
limits laid down by this Court in several decisions comme'.ncing from
Indian Tron & Steel Co. Ltd. v. Their Workmen('').
This is the position which. arises when the employer makes an application for permission or approval under section 33 and such permission
I') [1953) S.C.R. 780.
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[195<i] SC.R. 916.
f3l [l9hOJ 1 s.r.R. R06 at 826 .
. (4) [!958] S.C.R. 667.
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SUPREME COURT REPORTS
[1978] 3 s.c.R.
or approval is granted or refused.
But what would be the position
where the employer does not make an application for permission or
approval and takes action by way of discharge or dismissal of the workman without complying with the requirement of section 33. If an
application for permission or approval is not made as required by Section 33 what would be its effect on the order of discharge or dismissal
made by the employer ? Section 33 in both its limbs undoubtedly uses
language which is mandatory in terms and section 31 ( 1) makes it
penal for the employer to commit a breach of the provisions of Section 33 and therefore, if section 33 stood alone, it might lend itself to
the construction that any action by way of discharge or dismissal taken
against workman would be void if it is in contravention of Section 33.
But section 33 carmot be read in isolation, for, as we have already
pointed out, the intention of the legislature has to be gathered not from
one provision of the Statute or another, but from the whole of the
Statute.
The exposition of the statute has to be ex Visceribus ActuJ
because, as pointed out by Coke in Lincoln College case (1595) 3 Co.
Rep. 5 8b) : "The office of a good expositor of an Act of Parliameht is
to make construction of all parts together, and not of one part only by
imelf'' and "it is the most natural and genuine exposition of a statute to
construe one part of a statute by another part of the same statute, for
that best expresseth the meaning of the makers".
We must, therefore, construe section 33 not as if it were standing alone and apart from
fue rest of the Act, but in the light of the next following section 33A
and if these two sections are read together, it is clear that the legislative intent was not to invalidate an order of discharge or dismissal passed in contravention of section 33, despite the mandatory language empE
Joyed i'n the section and the penal provision enacted in Section 31 (1 ) .
We may first examine the scope and meaning of section 33A and
then consider what is the effect of that section on the interpretation
of section 33.
Before section 33A was introduced in the Act by Act
48 of 1950, the only remedy available to the workman a~~inst the
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breach of section 33 was to raise an industrial dispute in that behalf
and to move the appropriate Government for its reference to the adjudication of a Tribunal under section 10. The Trade Unions ill the
country complained that the remedy of asking for a reference under
section 10 involved delay and left the redress of the grieva'nce of the
workman entirely in the discretion of the appropriate Government,
because even in cases of contravention of section 33, the appropriate
G Government was not bound to refer the dispute u'nder section 10.
That is why section 33A was enacted for making a special provision for
adjudication as to whether section 33 has been contravened. This
section enables a workman aggrieved by such contravention to make
a complaint in writing in the prescribed manner to the Tribunal and it
says that on receipt of such complaint, the Tribunal shall adjudicate
upon it as if it is a dispute referred to it in accordance with the proH
visions of the Act. It also requires the Tribunal to submit its award
to the appropriate Government and the provisions of the Act would
then apply to the said award.
Section 33A thus gives to a workman
aggrieved by an order of discharge or dismissal passed against him in
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PUNJAB BEVERAGES v.