High CourtSingle JudgeAppeals allowed

Nityananda M. Joshi & Others v Life Insurance Corporation of India & Others

Case / Petition Number:Civil Appeals Nos. 301 to 319 and 1105 of 1969
Neutral Citation:[1970] 1 S.C.R. 398

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Sikri, J.
Judgment Date
1970-01-01
Court Decision / Holding
Appeals allowed; Labour Court’s order set aside in so far as it held the applications barred by Art. 137; Labour Court to pass final order in accordance with law; appellants entitled to costs, one hearing fee.
Final Disposition
Appeals allowed

Parties to the Case

Appellants / Petitioners

  • Nityananda M. Joshi and others

Respondents

  • Life Insurance Corporation of India and others

Legal Representation & Advocates

Counsels for Petitioners

  • • Madan Mohan

Counsels for Respondents

  • • A. C. K. Daphtary
  • • O. P. Malhotra
  • • K. L. Hathi

Case Synopsis & Summary

This is an appeal by employees of the Life Insurance Corporation of India seeking computation in money terms of the monetary value of holidays under s. 33C(2) of the Industrial Disputes Act, 1947. The Labour Court had dismissed the applications on the ground that the claim was beyond three years and barred by Art. 137 of the Indian Limitation Act, 1963. The Bombay High Court’s Full Bench had previously held that Art. 137 applies to applications under s. 33C(2) of the Act (pre-amendment position), while Town Municipal Council Athani v. Presiding Officer, Labour Court, Hubli dissented, suggesting Art. 137 may not apply to such applications. The Supreme Court, in delivering the judgment, held that s. 33C(2) covers applications for computing money due or benefits capable of being computed in money terms, and that Rule 62(2) of the Industrial Disputes (Central) Rules, 1957 provides the form (K-3) for determining the amount. The Court clarified that the Indian Limitation Act governs applications to courts, and the Labour Court is not a court for purposes of Art. 137, thus the limitation issue was misapplied. The appeals are allowed, the Labour Court’s order is set aside to the extent of the limitation ruling, and the matter is remanded for passing a final order in accordance with law. The appellants are entitled to costs.

Provisions of Law Cited

Industrial Disputes Act, 1947, s. 33C(2)Limitation Act, 1963, Art. 137Industrial Disputes (Central) Rules, 1957, r. 62(2)Limitation Act, 1963, ss. 4, 5

Legal Doctrines & Maxims

  • Labour Court is not a 'court' under the Limitation Act, 1963 (doctrine)
  • Rule-making power under s. 33C(2) to provide method of computation
  • Art. 137 contemplates applications to Courts (doctrine)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that s. 33C(2) covers computing the money value of holidays and that Rule 62(2) enables Form K-3 to determine the amount due; no award or settlement is required under s. 33C(2); the Labour Court is not a 'court' under the Limitation Act and Art. 137 should not bar these applications; the act contemplates a rule-based method of computation and the period of limitation should be controlled by the rule framework rather than rigid Art. 137 timings.

Contentions of Respondents

The respondents argued that s. 33C(2) does not spell out the mode of computation; Art. 137 may apply if the Labour Court is treated as a court; they relied on the pre-1964 Bombay High Court position (Porwal) that limitation extends to such applications; they submitted that the Labour Court is bound to apply the limitation regime and that Rule 62(2) merely prescribes forms but does not alter the basic limitation framework.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Town Municipal Council, Athani v. The Presiding Officer, Labour Court, Hubli(1970) 1 S.C.R. SIPartly Overruled / LimitedCited and discussed; Supreme Court refines its position on Art. 137 applicability to Labour Court proceedings.
The Manager M/s. P.K. Porwal v. The Labour Court(Bombay High Court decision cited in judgment)OverruledBombay High Court’s view that Art. 137 applies to s. 33C(2) applications is overruled by the Supreme Court’s reasoning.
Bombay Gas Co. Ltd. v. Gopal Bhiva and Others(as cited in judgment)Mentioned OnlyReferenced in context of historical interpretation of Art. 137; not adopted in the instant reasoning.

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Extracted Judgment Text

Exact text extracted from official judgment records.

NITYANANDA M. JOSHI & ORS. ##### _v._ LIFE INSURANCE CORPORATION OF INDIA & ORS • #### ..,,. 251 11169 [S. M. S!Klll, R. S. BACHAWAT AND V. RAMASWAMI, IJ.] B _Industrial Disputes Ac:_ (14 _of_ 1947), _s._ _33C(2)-App/icatioru for_ _computing btne/il_ _of_ _holidays in terms_ _of_ _monty-MainJainabi/ily._ _Indlan,Limitalion_ _Act_ (36 _of_ 1963), _Ari. 131-Applications_ _to_ _Lobour_ _Court-If covered by Article._ The appellanll (employees of the respondent) filed applications C **apimt** the respondent, under s. 33C(2) of the Industrial Dispullet Act, l!M7, for computlna in tenns of money, the benefit of. holidays, and for recoverina the amount. 'The Labour Court dismissed the applications inlofar u the claim was for a period beyond three yean, on the ground that the applications were barred under Art. 137 of the Limitation Act, 1963. In appeal to this Court, the reopondent supported the order of dismioul also on the ground that the applications were not maintainable Wider s. 33C(2) because, the sub .. ection does not indicate tbe mode in which the question as to the amount at which the benefit should be computed, may be decided. HELD: (I) The applications fell squarely within s. 33C(2) of the lndu.mial Disputes Act. Under the sub-section,. the rule-making authority bu to make a suitable provision for indicating the mode in which the money-value of. the benefit should be computed. Such a provision Is made in r. 62(2) of the Industrial Displlles (Central) llules, 1957, which pr11t:ribes the form for the application for the determination of the amount. [398E-HJ (2) The scheme of the Indian Limitation Act, 1963 is that it ooly dea1a with applications to ordinary courts and. u the Labour Court is not lllCh a courr, it erred in holding that the applications were barred by Art. 137 of the Limitation Act. [397G·H; 398A-B] [The ground of decision in _Town Municipal Council, Athani_ v. _Tiu_ _Presiding Officer. Labour Court, Hubli,_ (1970] l S.C.R. _SI_ that applicationa to courts under provisions of law other than thooe _C1f_ the Civil Proeedure Code are not included within Art. 137 of the Limitation Act, 1963, doubted]. [398B-C] CIVIL APPELLATE JUll!SDICTION : Civil Appeals Nos. 301 to 319 and 1105 Of 1969. Appeals by special leave from the order dated April 16, 1968 of the Central Government Labour Court, Bombay in Applications Nos. LCB-28 of 1965 etc. _Madan Mohan,_ for the appellants (in all the appeals). D **E** **F** G ## .. ##### • NITYANANDA _V._ L.I.C. _(Sikri,_ /.) 397 A C. _K._ _Daphtary, O._ _P._ _Malhotra_ and _K._ _L. Hathi,_ for respon dents Nos. l and 2 (in all the appeals). The Judgment of the Court was delivered by B ### c D E F G H Sikri, J. These appeals by special leave are directed against . ##### the order ot the Central Government Labour Court, Bombay, holding that the applications filed by the appellants against the Life Insurance Corporation of India lljllder s. 33C(2) of the IndUS- . trial Disputes Act, 1947, were barred under art. 137 of the Limitation Act, 1963, insofar as the claim was for period beyond three years. In holding this the Labour Court followed the decision of the Full Bench of the Bombay High Court in _The Manager_ _M/s._ _P._ _K. Porwal_ v. _The Labour Court(')._ The Bombay High Court held that applications filed under s. 3 3C ( 2) of the Industrial Disputes Act prior to its ameindment by Central Act :XXXVI of 1964 were governed by the period o.f limitation laid down in art. 13 7 of the Limitation Act; 1963, and this article applied to applications under Jaws other than thos.e contained in the Civil Procedure Code, 1908. Thfa Court in _Town Municipal Council, Athani_ v. _The Presid-_ _ing Officer, Labour Court, Hubli(')_ has dissented from the deci· sion of the Bombay High Court and has held that art. 137 of the Limitation Act, 1963, does not apply to applications under s. 3 3C ( 2) of the Industrial Disputes Act. This Court gave two reasons for coming to this conclusion. The first ground was that in spite of the changes. made in the Indian Limitati~ Act, 1963, no drastic change was intended in the scope of ·art. 13 7 so as to include withiin it all applications irrespective of the fact whether ##### they had any reference to the Code ot Civil Procedure or not. This Court held that in spite of the chainges the interpretation of art. 181 of the Limitation Act. 1908, by this Court in _Bombay_ _Gas Co. Ltd._ v. _Gopal Bhiva and Others(")_ would apply to art. 137 of the Limitatiqn Act, 1963. The second ground .given by this Court was that it is only applications to Courts that are intended to be covered under art. 137 of the Limitation Act, 1963. · · In our view art. 137 only contemplates applicatiQDS to Courts. In the Third .Division of the Schedule to the Limitation Act, 1963, an the other applications mentioned in the various articles are applications filed in a court. Further s. 4 of the Limitation Act, 1963, provides for the .contingency when the prescribed period for a.ny application expires on a holiday and the . only contfugeney contemplated, is "wh¢n the court is closed". Again under s. _5_ it is. (I) ~~70~~ ~~Born.~~ ~~L. R.~~ ~~104.~~ (3) [1%4] 3 S.C.R. 700. (2) [1970J 1 s.c.R. _s1._ 398 SUPltBME COURT ltEPOltTS [1970] 1 S.C.R. only a court which is enabled to admit an application after the A prescribed period has expired if the court is satisfied that the applicant had sufficient cause for not preferring the application. ·It seems to us that the scheme of the Indian Limitation Act is that_ it only deals with applications to courts, and that the Labour ·Court is not a court within the Indian Limitation Act, 1963. # .. It is not lljlCCISary to· express our views on the first ground given by this Court in _Town Municipal Council, Athani_ v. _The_ _Pruiding Officer Labour Court, Hub_ Ii ( [1] ). It seems to us that it ## !:t, require serious consideration whether applications to courts r other provisions, apart from Civil Procedure Code, are included within art. 137 of the Limitation Act, 1963, or not. The learned counsel for the respondent cQillends that the ~ls should fail on another ground. He says that these appli·cations were filed under s. 33C(2) of the Industrial Disputes Act, while they should have been filed under s. 33C(l). He further says that, at any rate, no application can be filed under s. 33C(2) because the sub-sectioql does not mention how the question is to be decided. There is no force in these submissions. It is plain from the wording _oi_ sub-s. ( 1) and sub-s. (2) of s. 33C that the former sub-sectmn deals with cases where money B ### c D is due to a workman from an employer under a !l'ttlement or an award or under the provisions of Chapter VA, while the latter sulHection deals with cases where a workman is eidtitled to receive E from the employer any money or any benefit which _is_ capable of being computed in terms of money. Jn the present case applications were filed by the employees against the respondent for computing in terms of mqoey the benefit of holidays and for recoverin_g the amount This case falls squarely within sub-s. (2) of s. 33C. 1bere ia no award or settlement under which the benefit of holidays F had already been computed. It is true tltat sub-s. (2) of s. 33C does not indicate the mode in which the question as to the amount of money due or as to the amount at which the benefit should be computed, may be decided. But the sub-sectiQD had left it to the rule-making authQrity to make a suitable provision. This ·is indicated by the expression "subject G 10 any rules that may be made under this Act" in sub-s. (2) of ·t. 33C. Rules have been made and r. 62(2' of the Industrial Disputes (Central) Rules, 1957, provides : F It is true tltat sub-s. (2) of s. 33C does not indicate the mode in which the question as to the amount of money due or as to the amount at which the benefit should be computed, may be decided. But the sub-sectiQD had left it to the rule-making authQrity to make "Where any workman or a group of workmen is entitled to rccc1ve from the employer any monc:y or any #### 1-fit which is capable of being computed-in terms of H money, the workmen or the group of workmen, as the #### (I) [t970) I S.C.lt. 'I. NITYANANDA _v._ L.I.C. _(Sikri,_ /.) case may be, may apply to the specified Labour Court in Form K-3 lor the de11:mlination of the amount due #### or, as the aae may be. the 'amount at which such benefit should be computed." 399 B #### _c_ According to this rule an application in Form K-3 can clearly be made. In the result the appeals are allowed and the order of the Labour Court set aside insofar as the Labour Court held that the applicati<¥JS were barred by art. 13 7 of the Limitation Act. The Labour Court will now pass the final order in accordance with law. The appellants will be entitled to their costs, one hearing fee. V.P.S. _Appeals_ _allowed •_