# CHRISTIAN MEDlCAL COLLEGE HOSPITAL EMPLOYEES' UNION & ANR v. CHRISTIAN MEDICAL COLLEGE VELLORE ASSOCIATION & ORS

- **Citation:** [1988] 1 S.C.R. 546
- **Court:** Supreme Court of India
- **Decided:** 1987-10-20
- **Case number:** Civil Appeal No. 8818 of 1983
- **Bench:** E.S. Venkataramiah, K.N. Singh
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/christian-medlcal-college-hospital-employees-union-anr-v-christian-medical-9655
- **Pages:** 31

## Headnote

i
Constitution of India-Art. 30(1) read with Arts. 41, 42, & 43Right to establish and administer educational institutions of their choice
c
conferred on religious and linguistic minorities-The right has to be
exercised subject to the general laws enacted by the State to give protec-
~
tion to the recognised rights of workers.
Industrial Disputes Act, 1947-ss. 9A, 10, 11-A, 12 and 33-In
their application to educational institutions established and adminisD
tered by religious and linguistic minorities, the provisions do not
abridge the right conferred on them by Art. 30( 1) of the Constitution.
Sometime during the period 1975-78, the first respondent-Association managing the affairs of the Christian Medical College and
Hospital at Vellore dismissed three of its employees from service and
~
E
terminated the services of another employee who was on probation.
When industrial disputes were raised in this behalf, the State Government made two separate references to the Labour Court for adjudication: one in respect of the three employees who had been dismissed and
the other in respect of the employee whose services had been terminated. Questioning the validity of the reference the first respondent
F
filed two Writ Petitions for quashing them and a third Writ Petition
praying for a declaration that the provisions of the Industrial Disputes
'
Act, 1947 were unconstitutional and ultra vires and were inapplicable in f-·
entirety to the minority educational institutions protected by Art. 30(1)
of the Constitution. The first Respondent pleaded that the hospital
attached to the Christian Medical College formed an integral part of the
G
college which was an educational institution established and administered by a minority and thus was also entitled to the protection of Art.
30(1); that the college and the hospital being minority institutions en-
~
titled to the protection of Art. 30(1), any industrial dispute arising
between the management and employees of the college and the hospital
could not be adjudicated upon under the provisions of the Act as such
H adjudication amounted to interference with the right of the minority to
546
EMPLOYEES UNION v. C.M. COLLEGE
547
)--
administer the college and the hospital; and that the Act was not appliA
cable to educational institutions generally irrespective of their being
minority institutions or not.
The High Court held that the Christian Medical CoJlege Hospital
which was attached to the Christian Medical College was an educational
institution; that even so, it was an industry within the meaning of the
B
,.l
expression 'industry' given in the Act, and that even though the College
and the hospital constituted an industry, they together constituting an
educational institution established and administered by a minority,
ss. 9-A, 10, 11-A, 12 and 33 of the Act would not be applicable to them
by virtue of Art. 30(1) of the Constitution, and, accordingly, quashed
the reference made under s. lO(l)(c) of the Act to the Labour Court.
c
'
~·
It was argued on behalf of the first respondent that the application
of the provisions of the Act would result in the abridgment of the right
of the management of minority educational institutions guaranteed
under Art. 30(1) of the Constitution to administer such institutions
inasmuch as the Labour Court or Tribunal might set aside an order of
D
dismissal or removal of a workman passed by the manageme'lt aud
reinstate him in service or make an order altering his conditions of
service contrary to the agreement entered into with him and the minority educational institution would be exposed to constant and endless
...
litigation. Reliance was placed in support of the above propositions on
the decision of this Court'in Ahmedabad St. Xavier's College Society &
E
Anr. e!c. v. State of Gujarat & Anr., [1975] 1 S.C.R. 173 wherein this
Court held that certain provisions of the Gujarat University Act, 1949
were violative of Art. 30(1) of the Constitution.
Allowing the appeal,
--\
F

## Text

_Characters 0–39,703 of 82,692. This is a partial read: ask again with offset=39703 for what follows._

A
CHRISTIAN MEDlCAL COLLEGE HOSPITAL
EMPLOYEES' UNION & ANR.
v.
CHRISTIAN MEDICAL COLLEGE VELLORE
ASSOCIATION & ORS.
B.
OCTOBER 20, 1987
[E.S. VENKATARAMIAH AND K.N. SINGH, JJ]
i
Constitution of India-Art. 30(1) read with Arts. 41, 42, & 43Right to establish and administer educational institutions of their choice
c
conferred on religious and linguistic minorities-The right has to be
exercised subject to the general laws enacted by the State to give protec-
~
tion to the recognised rights of workers.
Industrial Disputes Act, 1947-ss. 9A, 10, 11-A, 12 and 33-In
their application to educational institutions established and adminisD
tered by religious and linguistic minorities, the provisions do not
abridge the right conferred on them by Art. 30( 1) of the Constitution.
Sometime during the period 1975-78, the first respondent-Association managing the affairs of the Christian Medical College and
Hospital at Vellore dismissed three of its employees from service and
~
E
terminated the services of another employee who was on probation.
When industrial disputes were raised in this behalf, the State Government made two separate references to the Labour Court for adjudication: one in respect of the three employees who had been dismissed and
the other in respect of the employee whose services had been terminated. Questioning the validity of the reference the first respondent
F
filed two Writ Petitions for quashing them and a third Writ Petition
praying for a declaration that the provisions of the Industrial Disputes
'
Act, 1947 were unconstitutional and ultra vires and were inapplicable in f-·
entirety to the minority educational institutions protected by Art. 30(1)
of the Constitution. The first Respondent pleaded that the hospital
attached to the Christian Medical College formed an integral part of the
G
college which was an educational institution established and administered by a minority and thus was also entitled to the protection of Art.
30(1); that the college and the hospital being minority institutions en-
~
titled to the protection of Art. 30(1), any industrial dispute arising
between the management and employees of the college and the hospital
could not be adjudicated upon under the provisions of the Act as such
H adjudication amounted to interference with the right of the minority to
546
EMPLOYEES UNION v. C.M. COLLEGE
547
)--
administer the college and the hospital; and that the Act was not appliA
cable to educational institutions generally irrespective of their being
minority institutions or not.
The High Court held that the Christian Medical CoJlege Hospital
which was attached to the Christian Medical College was an educational
institution; that even so, it was an industry within the meaning of the
B
,.l
expression 'industry' given in the Act, and that even though the College
and the hospital constituted an industry, they together constituting an
educational institution established and administered by a minority,
ss. 9-A, 10, 11-A, 12 and 33 of the Act would not be applicable to them
by virtue of Art. 30(1) of the Constitution, and, accordingly, quashed
the reference made under s. lO(l)(c) of the Act to the Labour Court.
c
'
~·
It was argued on behalf of the first respondent that the application
of the provisions of the Act would result in the abridgment of the right
of the management of minority educational institutions guaranteed
under Art. 30(1) of the Constitution to administer such institutions
inasmuch as the Labour Court or Tribunal might set aside an order of
D
dismissal or removal of a workman passed by the manageme'lt aud
reinstate him in service or make an order altering his conditions of
service contrary to the agreement entered into with him and the minority educational institution would be exposed to constant and endless
...
litigation. Reliance was placed in support of the above propositions on
the decision of this Court'in Ahmedabad St. Xavier's College Society &
E
Anr. e!c. v. State of Gujarat & Anr., [1975] 1 S.C.R. 173 wherein this
Court held that certain provisions of the Gujarat University Act, 1949
were violative of Art. 30(1) of the Constitution.
Allowing the appeal,
--\
F
HELD: The Industrial Disputes Act, 1947 has been conceived and
enacted with the object of bringing into existence a machinery for
investigation and settlement of industrial disputes between employers
and workmen in accordance with the principles accepted hy the International Labour Organisation and the United Nations Economic, Social
and Cultural Organisation. The Act is meant to be a counter-vailing
force to counteract the inequalities of bargaining power which is inG
~ herent in the employment relationship. The International Covenant on
Economic, Social and Cultural Rights, 1966 which is a basic document
d.eclaring certain specific human rights in addition to proclaiming the
right to work as a human right treats equitable conditions of work
prohibition of forced labour, provision for adequate remuneration, th; H
548
SUPREME COUR1 REPORTS
[1988] 1 S.C.R.
A
right to a limitation of work hours, to rest and leisure, the right to form
~
and join trade unions of ones' choice, the right to strike etc. also as
human rights. The Preamble of our Constitution says that our country
is a socialist republic. Articles 41 and 42 provide that the State shall
make effective provision for securing right to work, just and humane
conditions of work and for maternity relief. Article 43 states that the
B
State shall endeavour to secure by suitable legislation or economic
organisation or in any other way to all workers agricultural, industrial
or otherwise work, a living wage, conditions of work ensuring a decent
standard of life and full enjoyment of leisure and social and cultural
opportunities. These rights which are enforced through the several
pieces of labour legislation in India have got to be applied to every
c workman irrespective of the character of the management. Even the
management of a minority educational institution has got to respect
these rights and implement them. Due obedience to these laws would
assist in the smooth working of the educational institutiops and would
facilitate their proper administration. If such laws are made inapplicable to minority educational institutions, there is every likelihood of
D such institutions being subjected to maladministration. Merely because
an impartial tribunal is entrusted with the duty of resolving disputes
relating to employment, unemployment, security of work and other conditions of workmen it cannot be said that the right guaranteed under
Art. 30(1) of the Constitution is violated. If a dispute Is raised by an
employee against the management of a minority educational institution
_.,_
E
such dispute will have necessarily to be resolved by providing appropriate machinery for tltat purpose. Laws are now passed by all the
civilised countries providing for such a machinery. The Act with which
we are concerned in this case is an Act which has been brought into
force for resolving such industrial disputes. Sections 9A, 10, ll·A, 12
F
and 33 of the Act cannot, therefore, be construed as htterfering with the right
guaranteed under Art. 30(1) of the Constitution. [S70D-H; 571A·C, E-Fl
2. The Act is a social security measure intended to ensure welfare
of labour and it falls within one or the other of the following entries in
List III of the Seventh Schedule to the Constitution: Entry 22-Trade
Unions, htdustrial and labour disputes; Entry 23-Social security and
G
social insurance, employment and unemployment; and Entry 24Welfare of labour including conditions of work, provident funds, employer's liability, workmen's compensation, invalidity and old age pen-
~
sions and maternity benefits. T,he Act generally applies to all industries
·
irrespective of the religion or caste to which the parties belong. It applies to industries owned by the Central and the State Governments too.
H
Any decision given by the Industrial Tribunal or a Labour Court under
..
~·
,
•
EMPLOYEES UNION v. C.M. COLLEGE
549
the Act is subject to judicial review by the ffigh Court under Art. 226
and an appeal to this Court under Art. 136 of the Constitution. The
A
Labour Court, the Industrial Tribunal, the High Court and this Court
while dealing with matters arising out of the Act have to deal with them
objectively. The smooth running of an educational institution depends
upon the employment of workmen who are not subjected to victimisation or any other kind of maltreatment. The conditions of service of ' B
workmen in all institutions including minority educational Institutions
have to be protected in the interest of the entire society and any unfair
labour practice, such as 'hiring and firing', termination or retrenchment of the service of a workmen on irrational grounds wlll have to be
checked. The Act makes provisions in respect of these matters. The Act .
being a general law for prevention and settlement of industrial disputes
cannot be construed as a law which directly interferes with the right of C
adminisiration of a minority educational institution guaranteed under
Art. 30(1) of the Constitution; The law is not enacted with the object of
interfering with any such right. It clearly falls within the observation of
Mathew,J. in Ahmedabad St. Xavier's College Society & Anr. v. State
of Gujarat & Anr. that "regular tax measures, economic regulations,
D
social welfare legislation, wage and hour legislation and similar
measures may, of course have some effect upon the right under
Art. 30(1). But where the burden is the same as that borne by others
engaged in different forms of activity, the similar impact on the right
seems clearly insufficient to constitute an abridgement". [S82A-G I
Observations of Mathew, J. in Ahmedabad St. Xavier's College
Society & Anr. v. State of Gujarat & Anr., [1975] 1S.C.R.173, relied
on.
3. The decision in Ahmedabad St. Xavier's College Society &
E
Anr. v. State of Gujarat & Anr. is distinguishable from the present one.
F ·
Clause (b) of the two sub-sections of s. Sl·A qf .the Gujarat University
Act, 1949 conferred a blanket power on the Vice-Chancellor or other
officer authorised by him to approve or not any recomlllendation made
by the management regarding the dismissal, removal, reduction in rank
or termination of service of a workman. The said Act did not furnish
any guidelines regarding the exercise of that power which was In the
G
nature of a 'veto' power. Secondly, s. 52-A of the said Act which re·
quired the disputes between the governing body and any member of the
teaching staff, other academic and non-teaching staff of an affiliated
college or recognized or approved institution connected with the condi·
tions of service of such member to be referred to a Tribunal of Arbitration, consisting of one nominated by the governing body of the college
H
550
SUPREME COURT REPORTS
[1988] 1 S.C.R.
A or, as the case may be, of the recognised or approved institution, one
~
member· nominated by the member of the staff involved in the dispute
and an Umpire approved by the Vice-Chancellor was held to he an
unconstitutional interference with the right guaranteed under
Art. 30(1) of the Constitntion as it was likely to involve the minority
educational institutions in a series of arbitration proceedings and the
B power vested in the Vice-Chancellor to nominate an Umpire to decide
all disputes between the governing body and the members of the staff
. ..:l
connected with the letter's conditions of service would make virtnally
the Vice-Chancellor the person who would have the nltimate voice in
the decision of the Tribunal of Arbitration. There was also no check on
the question whether the dispute was one which deserved to be collc
sidered by the Tribnnal of Arbitration. In the instant case there is no
-~
room for such contingency to arise. A reference nnder the Act has to be
made by the Government either when both parties request the Government to refer an industrial dispute for adjudication or only when it is
satisfied that there exists an industrial dispute. When an industrial
dispute exists or is apprehended, the conciliation officer should first
D consider whether it can be settled after hearing both the parties and it is
only when his efforts to bring about a settlement fail and he makes a
report accordingly to the appropriate Government, the Government is
called upon to take a decision on the question whether the case is a fit
one for reference to the Industrial Tribunal or the Labour Court. It is
only when a reference is made by the Government the Industrial ,.
E Tribunal or the Labour Court gets jurisdiction to decide a case. It
cannot, therefore, be said that each and every dispute raised by a
workman wonld automatically end up in a reference to the Industrial
Tribunal or the Labour Court. Secondly, the circumstances in which
..
the Industrial Tribunal or the Labour Court may set aside the decision
arrived at by the management in the course of a domestic enquiry held
F by the management into an act of misconduct of a workman are evolved
/,.. ..
by a series of judicial decisions. The powers of an industrial tribunal to
interfere in cases of dismissal of a workman by the management are not
'
unlimited and the Tribunal does not act as a court of appeal and substitute its own judgment for that of the management. It will interfere
(a) where there is want of good faith; (b) when there is victimisation or
G unfair labour practice: (cl when the management has been guilty of the
basic error or violation of the principles of natural justice; and (d) when
on the materials before the Court the finding is completely baseless or
'.>-.
perverse. It cannot, therefore, he said that the Industrial Tribunal or
the Labour Court will function arbitrarily and interfere with every
decision of the management as regards dismissal or discharge of a
H workman arrived at in a disciplinary enquiry. The power exercisable by
EMPLOYEES UNION v. C.M. COLLEGE
551
the Industrial Tribunal or the Labour Court cannot, therefore, be A
equated with the power of 'veto' conferred on the Vice-Chancellor
under cl.(b) of either of the two sub-sections of s. 51-A of the Gujarat
University Act, 1949. As already stated the decision of the Industrial
Tribunal or the Labour Court is open to judicial review by the High
Court and by this Court on appeal. Section 11-A which confers the
power on the Industrial Tribunal or the Labour Court to substitute a
B
lesser punishment in lieu of the order of discharge or dismissal passed
by the 1118nagement cannot be considered as conferring an arbitrary
power on the Industrial Tribunal or the Labour Court .. The power
under s. 11 ·A has to be exercised judicially and the Industrial Tribunal
or the Labour Court is expected to interfere with the decision of a
management under s. UA only when it is satisfied that the punishment
imposed by the management is highly disproportionate to the degree of C
guilt of the workman concerned. The Industrial Tribunal or the Labour
Court has to give reasons for its decision which again, would be subject to
judicial review by the High Court and this Court. l565C-H; 566A-H; 567 Al
Ahmedabad St. Xavier's College Society & Anr. v. State of D
Gujarat & Anr., 11975} l S.C.R. 173, distinguished.
Indian Iron & Steel Co. Ltd. & Anr. v. Their Workmen, 11958}
S.C.R. 667; Lilly Kurian v. Sr. Lewina & Ors., 11979] 1 S.C.R. 820;
Mrs. Y. Thedamma v. Union of India & Ors., 119871 2 S.C.C. 516;
Frank Anthony Public School Employees Association v. Union of India
& Ors., 11986] 4 S.C.C. 707 and All Saints High School, Hyderabad,
etc. v. Government of Andhra Pradesh & Ors. etc., 11980} 2 S.C.R.
924; referred lo.
4. In this context it is interesting to note that the right to enter
E
F
into a contract flowing from the right to liberty guaranteed by the
Fourteenth Amendment to the Constitution of the United States of
America which was considered to be an absolute right at one stage is no
longer construed as a bar on the legislature making a law imposing
restrictions on the managements in order to advance the welfare of the
labour. It is now settled in the United States of America that neither the
'contract' clause not the 'due process' clause had the effect of overridG
ing the power of the state lo establish all regulations that are reasonably
necessary to secure the health, safety, good order, comfort, or general
welfare of the community and that this power can neither be abdicated
nor bargained away, and is inalienable even by express grant; and that
all contract and property or other vested rights are held subject to Its
fair exercise. In view of the change in the attitude of the Court laws
H
A
B
552
SUPREME COURT REPORTS
[ 1988] 1 S.C.R.
regulating hours of labour, labour in mines, employment of children in
"'
hazardous occupation, payment of wages, minimum wages laws, workmen's compensation laws and collective bargaining have been upheld in
recent years. Similarly, the right to religious freedom and the right to
free speech guaranteed hy the First Amendment to the Constitution of
the United States of America, though they appear to he absolute have
been construed to be subject to regulation by the State in exercise of its
legitimate police powers. [S72C; 573C-E; 577Cl
~
c
Allgeyer v. Louisiana, 165 U.S. 578; Coppage v. Kansas, 236
U.S.1; Lochner v. New York, 198 U.S. 45; Adair v. United States, 208
U.S. 161; Lincoln Federal Labour Union v. North Western Inn & Metal
Co., 335 U.S. 525; Reynolds v. United States, 98 U.S. 145; and Whitney
v. California, 274 U.S. 357; referred to.
~
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8818
of 1983.
D
From the Judgment and Order dated 23.12.1982 of the Madras
High Court in W.P. No. 220, 221and 222 of 1980.
C.S. Vaidyanathan, M.N. Krishnamani, Parbir Chowdhary,
S.R. Bhat and K.V. Mohan for the Appellants.
E
F.S. Nariman, Harbans Lal, Shanti Bhushan, Harish N. Salve,
F
H.K. Puri, S. Ramasubramaniam, Rajen Mahapatra, Miss Mridula
Ray, Mrs. Kitty Kumarmangalam, C.V. Subba Rao, R. Mohan, and
A. V. Rangam for the Respondents.
The Judgment of the Court was delivered by
VENKATARAMIAH, J. The important question which arises
for determination in this appeal by special leave is whether sections
9-A, 10, 11-A, 12 and 33 of the Industrial Disputes Act, 1947 (hereinafter referred to as 'the Act') are applicable to educational institutions
established and administered by minorities which are protected by
G clause (1) of Article 30 of the Constitution of India.
The first respondent-Christian Medical College Vellore Association, Vellore, is an association registered under the Societies Registration Act, 1860. The object of the association is "the establishment,
maintenance and development of Christian Medical Colleges and
H Hospitals in India where women and men shall receive an education of
..
-
A
'
EMPLOYEES UNION v. C.M. COLLEGE [VENKATARAMIAH, J.] 553
the highest grade in the art and science of Medicine and Nursing or in
A
one or other of the related professions to equip them, in the spirit of
Christ, for service in the relief of suffering and the promotion of
health." Dr. Ida Scudder, a daughter of an American Medical missionary in India, realising the need for more women doctors in India to
give relief of the suffering women, in particular, started a one-bed
clinic in 1900 at Vellore in the State of Tamil Nadu. Within two years
B
she set up a 40-bed hospital with the assistance of a group of medical
women. Since her main desire was to train women as nurses and
doctors who should go out to serve suffering women and children she
started the training courses for nurses in 1906 and a medical school for
women in 1918. The hospital and the medical school grew in their
stature in course of time. The medical school was converted into a
medical college with degree courses in 1942. In the year 1947 even men
C
were admitted to the medical college as students. The hospital has
since become an important medical institution in South India. The
hospital is being used for training the students of the medical college
by providing clinical facilities. The medical college and the college of
nursing in Vellore are affiliated to the University of Madras and they
D
both go by the name, the Christian Medical College. In the medical
college the post-graduate degree courses have also been started. In
addition thereto post-graduate diploma courses in different specialities
have also been started. In the year 1982, when the common judgment
of the High Court of Madras in the three writ petitions, out of which
this appeal arises, was delivered, there were about 500 students includE
ing post-graduate students in the medical college, 400 in college of
nursing and about 164 in para medical courses. The medical college
also conducts research into the fundamental causes of diseases, their
prevention and treatment. It is also claimed that the medical college is
a pioneer in the development of higher specialities like Cardiology,
Neuro Surgery, Psychiatry, Thoracic Surgery, Urology, GastroF
Enterology etc. The hospital in which the clinical facilities are provided to the students of the medical college is also a very big hospital
which attracts large number of patients, many of whom are treated as
in-patients. The college and the hospital are now being managed by
respondent No. 1 Association. In view of the heavy responsibilities
undertaken by the college and the hospital it has become necessary to
G
employ a large number of persons as teachers, doctors, nurses and
other staff for running the college and the hospital, and also administrative staff for the purpose of managing their affairs. The employees
of the college and the hospital are paid salaries and allowances and are
entitled to the usual conditions of service as are applicable to such
employees in other medical colleges and hospitals in India. It is natural
H
554
SUPREME COURT REPORTS
[1988] 1 S.C.R.
A that in a big establishment like the one under consideration between
~
the management and its employees there would be disputes with regard to the security of employment and other conditions of service.
Sometime during tqe period 1975-1978, three employees,
namely, Mr. Gilbert Samuel, a clerk in the Microbiology Department
B of the Christian Medical College and Hospital, Mr. M. Devadoss, a
packer in the Central Sterile Supply Department of the Hospital and
~
Mrs. Yesudial, a cook in the Staff & Student Nurses' Hostel of the
Rural Health Centre attached to the hospital, were dismissed from
service by the management. On an industrial dispute being raised by
-
the Christian Medical College Hospital Employee's Union in respect
C of the dismissal of the above three persons, the Government of Madras
by its order dated 19.2.1979 referred the following question to the J
Labour Court for adjudication:-
\
D
E
"Whether the non-employment of Thiruvalargal Gilbert
Samuel, M. Devadoss and Tmt. Yesudial is justified, and if
not, to what relief each of them would be entitled; to compute the relief, if any awarded, it terms of money, if it
could be so computed."
This reference was numbered as I.D. No. 52 of 1979 on the file of the
Labour Court.
One R. Subramaniam, a probationer Stenographer of the above
institutions, whose services had been terminated in 1975 at the end of
the probationary period also raised an industrial dispute in 1978 and
that case was also referred to the Labour Court by the State Government on 11.4.1979. The question referred to the Labour Court read as
F
follows:-
G
"Whether the non-employment of Thim R. Subramaniam
is justified, if not to what relief he is entitled; to compute
the relief, if any awarded, in terms of money, if it could be
so computed."
This reference was numbered as I.D. No. 84 of 1979 on the file of the
Labour Court.
Questioning the validity of the above two references the first
respondent-Association filed Writ Petition Nos. 221 and 222 of 1980
H on the file of the High Court of Madras for quashing the said refe-
..
EMPLOYEES UNION v. C.M. COLLEGE [VENKATARAMIAH, J.] 555
rences. The first respondent-Association also filed Writ Petition A
No. 220 of 1980 on the file of the High Court of Madras praying for a
declaration that the provisions of the Act were unconstitutional and
ultra vires and were inapplicable in entirety to the minority educational
institutions protected by Article 30( 1) of the Constitution of India, like
the Christian Medical College and the hospital attached thereto at
Vellore.
B
The first respondent-Association pleaded that the hospital
attached to the Christian Medical College formed an integral part of
the college which was an educational institution established and
administered by a minority and thus was also entitled to the protection
of Article 30(1) of the Constitution of India. Secondly, it was urged C
that the college and the hospital being minority institutions entitled to
the protection of Article 30(1) of the Constitution of India any industrial dispute arising between the management and employees of the
college and the hospital could not be adjudicated upon under the
provisions of the Act as such adjudication amounted to interference
with the right of the minority to administer the college and the hospital D
which together constituted an educational institution. It was also contended that the Act was not applicable to educational institutions generally irrespective of their being minority institutions or not. The petitions were contested by the Union of India, the State of Tamil Nadu,
the Christian Medical College and Hospital Employees' Union and the
workmen concerned. The High Court after hearing the parties recorE
ded the following findings:-
1. The Christian Medical College Hospital which. was attached
to the Christian Medical College was an educational institution;
2. The Christian Medical College Hospital even though it was an
F
educational institution was an industry within the meaning of the expression 'industry' given in the Act; and
3. Even though the Christian Medical College and the hospital
attached thereto constituted an industry, they together constituting an
educational institution established and administered by a minority, G
sections 9-A, 10, 11-A, 12 and 33 of the Act would not be applicable to
them by virtue of Article 30( 1) of the Constitution of India.
Accordingly, the High Court quashed the references made under
section lO(l)(c) of the Act to the Labour Court. Aggrieved by the
judgment of the High Court the Christian Medical College Hospital
H
556
SUPREME COURT REPORTS
[1988] 1 S.C.R.
A Employees' Union and one of its workman have filed this appeal by
~
special leave.
The principal question which arises for determination in this case
is whether the Act which is passed with the twin object of preventing
B industrial disputes and the settlement of such disputes between employers and employees is applicable to educational institutions which
1
are protected by Article 30(1) of the Constitution of India. Article
,...__
30(1) of the Constitution oflndia provides as follows:-
"All minorities, whether based on religion or language,
shall have the right to establish and administer educational
C
institutions of their choice."
D
E
F
In Re. The Kera/a Educational Bill, 1957, [ 1959] S.C.R. 995. this
Court construed Article 30(1) of the Constitution of India and held
thus:-
"The first point to note is that the Article gives certain
rights not only to religious minorities but also to linguistic
minorities. In the next place, the right conferred on such
minorities is to establish educational institutions of their
choice. It does not say that minorities based on religion
should establish educational institutions for teaching religion only, or that linguistic minorities should have the right
to establish educational institutions for teaching their
language only. What the Article says and means is that the
religious and the linguistic minorities should have the right
to establish educational institutions of their choice. (Pages
1052-1053) ......... The next thing to note is that the
Article, in terms, gives all minorities, whether based on
religion or language, two rights, namely, the right to establish and the right to administer educational institutions of
their choice. (Page 1053) . . . . . . . . . . . . The right to
administer cannot obviously include the right to maladminister. (Page 1062) ...... "
\
·-1
\
The meaning of Article 30(1) of the Constitution of India was
~
again considered by a Constitution Bench of this Court in the
Ahmedabad St. Xavier's College Society & Anr. etc. v. State of Gujarat
& Anr., [1975) 1 S.C.R. 173. Ray, C.J. observed in the above decision
H thus:-
..
:
,.
EMPLOYEES UNION v. C.M. COLLEGE [VENKATARAMIAH, J.] 557
"The minority institutions have the right to adminisA
ter institutions. This right implies the obligation and duty
of the minority institutions to render the very best to the
students. In the right of administration, checks and
balances in the shape of regulatory measures are required
to ensure the appointment of good teachers and their
conditions of service. The right to administer is to be ternB
pered with regulatory measures to facilitate smooth
administration. The best administration will reveal no trace
or colour of minority. A minority institution should shine
in exemplary eclectism in the administration of the institution. The best compliment that can be paid to a minority
institution is that it does not rest on or proclaim its minority C
character.
Regulations which will serve the interest of the students, regulations which will serve the interest of the
teachers are of paramount importance in good administration. Regulations in the interest of efficiency of teachers,
D
discipline and fairness in administration are necessary for
preserving harmony among affiliated institutions. (Pages
196-197)
E
In the field of administration it is not reasonable to
claim that minority institutions will have complete autonomy. Checks on the administration may be necessary in
order to ensure that the administration is efficient and
sound and will serve the academic needs of the institution.
The right of a minority to administer its educational instituF
tion involves, as part of it, a correlative duty of good
administration. (Page 200)"
Mathew, J. discussing what type of action by the State would
amount to the abridgement of the right guaranteed under Article 30( 1)
of the Constitution of India observed at page 265-266 thus:-
G
"The application of the term 'abridge' may not be
difficult in many cases but the problem arises acutely in
certain types of situations. The important ones are where a
law is not a direct restriction of the right but is designed to
accomplish another objective and the impact upon the right H
558
SUPREME COURT REPORTS
[1988] 1 S.C.R.
A
is secondary or indirect. Measures which are directed at
~
other forms of activities but which have a secondary or
direct or incidental effect upon the right do not generally
abridge a right unless the content of the right is regulated.
As we have already said, such measures would include various types of taxes, economic regulations, laws regulating
B
the wages, measures to promote health and to preserve
hygiene and other laws of general application. By hpothe-
.-k
sis, the law, taken by itself, is a legitimate one, aimed
directly at the control of some other activity. The question
is about its secondary impact upon the admitted area of
~
administration of educational institutions. This is especially
c
a problem of determining when the regulation in issue has
_-{
an effect which constitutes an abridgement of the constitutional right within the meaning of Article 13(2). In other
words, in every case, the court must undertake to define
\
and give content to the word 'abridge' in Article 13(2)(1).
The question to be asked and answered is whether the
D
particular measure is regulatory or whether it crosses the
zone of permissible regulation and enters the forbidden
territory of restrictions or abridgement. So, even if an educational institution established by a religious or linguistic
minority does not seek recognition, affiliation or aid, its
activity can be regulated in various ways provided the regu-
~
E
lations do not take away or abridge the guaranteed right.
Regular tax measures, economic regulations, social welfare
legislation, wage and hour legislation and similar measures
may, of course have some effect upon the right under Article -
30( 1). But where the burden is the same as that borne by
others engaged in different forms of activity, the similar
F
impact on the right seems clearly insufficient to constitute an
'
abridgement. If an educational institution established by a
~--
religious minority seeks no recognition, affiliation or aid,
/
the state may have no right to prescribe the curriculum,
sllabi or the qualification of the teacters."
G
(Underlining by us)
The question now is whether the Act, if it is made applicable to ".
minority institutions protected by Article 30(1) of the Constitution of
India, would in any way abridge the right of the minority concerned to
establish or administer an educational institution. The Act came to be
H
passed in the year 1947 with the object of bringing into existence a
EMPLOYEES UNION v. C.M. COLLEGE [VENKATARAMIAH, J.] 559
~.
machinery for investigation and settlement of industrial disputes beA
tween employers and workmen in accordance with the decisions of the
International Labour Organisation. The Act provides for a machinery
for collective bargaining. The object of industrial adjudication has,
therefore, been to be a countervailing force to counteract the
inequalities of bargaining power which is inherent in the employment
relationship. In one of the commentaries Ol! the Act the need for and
B
,-l..
the character of industrial adjudication is described as follows:
"The law governing industrial relations is one of the
:
vitally important branches of the law-the legal system on
which depends the social and economic security of a very
large majority. "The parties to the industrial disputes pre- c
sent an infinite permutations of attitudes" on, economics,
politics and human relations. General consensus on the
methods of resolving them is beyond reach. The core of
modem industrial law, therefore, consists of the problems
dealing with the conflict arising between the industrial employers and their employees relating to employment and
D
social security. The study of industrial law, therefore,
necessarily concerns itself with the struggle of industrial
workmen for security. It is the security of job, the minimum standard of living, of his future and that of his
--.I-.
children and conversely the fear of insecurity which bedevil
the worker. In other words, security is the keystone in
E
dealing with the industrial relations between the industrial
employers and their workers. The industrial worker, therefore, is the 'focal point' of any legal enquiry in the industrial relations. In the words of Prof. Forkosch, "the
sociologist may see the worker as a human being caught in
congeries of frustrations, complexes and urges-a mind
F
J-\
that cannot cope with the baffling contradictions of the
modem society". "There is", therefore, as Prof. Otto
Kahn-Freund points out "everywhere a constant need for
finding a judicium finium regundorum between collective
bargaining and legislation of all kinds as instruments for the
regulation of conditions of employment-wages and hours,
holidays and pensions, health, safety and welfare, and
G
even, increasingly, social security." (See O.P. Malhotra:
The Law of Indush:ial Disputes, Fourth Edn., Vol. I,
( 1985)-Introduction-page XX)
Section 2(k) of the Act defines an 'industrial dispute' as any H
560
SUPREME COURT REPORTS
[ 1988] 1 S.C.R.
A
dispute or difference between employers and employers or between
~·
employers and workmen or between workmen and workmen which is
connected with the employment or non-employment on the terms of
employment or with the conditions of labour of any person. The Act
provides for the constitution of works committees in industrial establishments employing 100 workmen or more and they are charged with
B
the duty of removing causes of friction between the employer and
workmen in the day-to-day working of the establishment and prornot-
-1.
ing measures for securing amity and good relations between them.
Industrial peace is most enduring where it is founded on voluntary
settlement, and the works committees are entrusted with the duty of
:
providing a machinery for the settlement of disputes. Section 12 of the
c Act provides for the appointment of Conciliation Officers in order to 1
negotiate between the managements and their workmen and to bring
about settlement if possible. If the conciliation proceedings fail, the
Conciliation Officer has to make a report to the appropriate Government accordingly. A reference to an Industrial Tribunal of a dispute
under section 10 of the Act is made where both parties to an industrial
D
dispute apply for such reference or where the appropriate Government
considers it expedient so to do. An award of a Tribunal may be in
operation for a period of one year subject to the provisions of section
19 of the Act. The power to refer disputes to Industrial Tribunals and
enforce their awards is an essential corollary to the obligation that lies
~
on the Government to secure conclusive determination of the disputes
E
with a view to redressing the legitimate grievances of. the parties
thereto, such obligation arising from the imposition of restraints on the
rights of strike and lock-out, which must remain inviolate, except
where considerations of public interest override such rights. The
Industrial Tribunals or Labour Courts constituted under the Act are
presided over by persons having judicial experience such as a person
F
who is or has been a Judge of the High Court or who has been for a
1,
period not less than three years a District Judge or an Additional l-.
District Judge or a person who has not less than five years' service as
presiding officer of a Labour Court constituted under any law for the
time being in force or who holds a degree in law of a University
established·by law in any part of India and is holding or has held an
G
office not lower in rank than that of Assistant Commissioner of Labour
under the State Goverment for not less than ten years. The Presiding
~-"
Officer of a Labour Court should also possess substantially the same
qualifications and they are set out in section 7 of the Act. Section 9-A
of the Act, which is one of the sections the applicability of which to a
'~
minority educational institution is questioned, provides that no empH loyer, who proposes to effect any change in the conditions of service
EMPLOYEES UNION v. C.M. COLLEGE (VENKATARAMIAH, J.) 561
applicable to any workman in respect of any matter specified in the
A
Fourth Schedule to the Act shall effect such change without giving to
the workmen likely to be affected by such change a notice in the
prescribed manner of the nature of the change proposed to be
effected; or within twenty-one days of giving such notice, except in
certain cases which are mentioned in the proviso thereto. This section
was introduced since there was a persistent demand that notice should
B
be given whenever it was proposed to make any change in the conditions of service of the workmen. Section 11-A of the Act confers
powers on the Labour Courts, Tribunals and National Tribunals to
give appropriate relief in case of discharge or dismissal of workmen.