ll56 SUPRE;\'lE COURT REPORTS
[HJJSj
WORKMEN OF DIMAKUC!-Jl TEA ESTATE
_Fcbntarz.1_ _4._
~
..
THE MANAGEMENT OF DIMAKUCHI
TEA ESTATE
IS. R. DAs C. J.. S. K. DAS and A. K. SARKAR JJ.1
_IndustriaL_ _Dispute-Defi,-nition,_ _Interpretation_ _of-Test-_
_'tl1111_ pe·rs07t.'. _JVleaning_ _of-Industrial_ _Disputes_ _Act,_ lfl-17 _(Act_
_XIV_ _of_ 1947, _s._ 2(k). .
The question for decision in this appeal was whether a dispute raised by the workmen relating to a person who was not a
workman could be an industrial dispute as defined i:y s. 2{kj
of .the Industrial Disputes Act, 1947, as it stood before the amE:ndments of 1956. The appellants, v. [1] ho were the workmen of
Dimakuchi Tea Estate, espoused the cause of one Dr. K. P.
Banerjee, Assistant Medical Officer. \Vho had been dismissed unheard with a month's salary in lieu of notice but v.rho had accepted such payment and left the garden and the dispute raised
was ultimately referred by the Government for adjudication
under s. 10 of the Act. Both the Tribunal and the Appellate Industrial Tribunal took the vie\\' that as Dr. Banerjee was not
a \Vorkman v.rithin the meaning of the Act, the dispute _v:as_
not an industrial dispute as defined by s. 2(k).
_Held,_ (per Das, C.J., and S.K. Das, J., Sarkar J, dissenting)
that the expression 'any person' occurring in s. 2 {k) of the Industrial Disputes Act, 1947, cannot be given its ordinary mean·
ing and must be rr:ad and 1Jnderstood in the context of the Act
and the object the Legislature had in viev.·. Nor can it be equated either with the \?Ord 'v,'orkn1an' or 'employee'.
The two tests of an industrial dispute as defined by the section must, therefore, be-(1) the dispute n1ust be a real dispute,
capable of being settled by relief given by one party to the
other, and (2) the person in re~pect of whom the dispute is raised must be one in Vihose employment. non-employment, terms
uf employment, or conditions of labo.ur (as the case may be).
the parties to the dispute have a direct or substantial interest,
and this must depend on the facts and circumstances of each
particular case.
Applying these tests, the dispute in the present case which
\Vas in respect of a person \Vho \Vas not a workman and belonged to a different category altogether, could not be said to be a
dispute within the meaning of s. 2(k) of the Act and the appeal
must fail. ...
_Narendra_ _Kuniar_ _Sen_ v. _A.U_ _India_ h1(lvstrial _Disputes_
_(Labour_ _Appellate)_ _Tribunal,_ 11~53) 55 Born. L.R. 125 approved.
_Western_ _India Auto·mobile Association_ v. _The_ _Industrial_
_Tribunal,_ _Bombay,_ [1949.J 'F.C.R. 321, distinguished.
S.C.R. SUPREME · COURT REPORTS 1157
Case-law discussed.
Per Sarkar, J.-There is no reason why the words 'any person in s. 2(k) of the Act should not be given their natural meaning so as to include an employee who is not a workman within
the meaning of the Act. Consequently, a dispute concerning a
person who is not a workman may be an industrial dispute
within that section.
The primary object which the Act has in view is the preservation of the industrial peace.
The Act does not make the interest of the workmen in the
dispute a condition of the existence of an industrial dispute.
Such interest is incapable of definition and ·to make it a condition of an industrial dispute would d.efeat the object of the Act.
Western _India Automobile_ _Associ'<ition_ v. _The Industrial_
_Tribunal_ _of_ _Bombay,_ [1949] F.C.R. 321; _Narendra Kumar _Sen_ v.
_The_ _All_ _India Industrial Disputes (Labour Appellate) Tribunal,_
(1953) 55 Bom. L.R. 125 _and United_ CommerCial _Bank_ Ltd. v.
_Kedar Nath Gupta,_ (1952) 1 L.L.J., 782, referred _to._
Even assuming that the workmen must be interested in
order that there can be an industrial dispute, the present case
satisfies that test and falls within the purview of s. 2(k) of the
Act.
CIVIL APPELLATE JurusmcrION: Civil Appeal No. 297 of
1956. .
_1958_
_·workmen_ _vj_
_of Dimakuchi_
_**Tea**_ _**E8!ate**_
v.
_T!te Manago,,•nt_
_·"f_ _Dimaku.;hi_
_Tea_ _E•fatt_
·Appeal by special leave from the judgment and order
dated August 30, 1955, of the Labour Appellate Tribunal of
India, Calcutta in Appeal No. Cal. 220 of 1954.
C. _B. Aggarwala_ and _K._ _P._ _Gupta,_ for the appellants.
_Purslzottam Tricumdas_ _for_ _N._ C. _Chatterjee,_ _P._ _K._
_Goswami,_ _S._ _N. Mukherjee_ and _B. N. Ghosh,_ for the respondent.
1958. Fabruary 4. The Judgment of Das, C. J., and S. K.
Das, J., was delivered by S. K. Das, **J.** Sarkar, **J.,** delivered a
·separate Judgment.
S. K. DAs J.-This appeal by special leave raises a ques- _s._ _K._ _Daa_ _**1.**_
tion of some nicety and of considerable importance in the
matter of industrial relatioos in this country. The question is
the true scope and effect of the definition clause in s. 2(k) of
the Industrial Disputes Act, 1947 (hereinafter referred to as
the Act). The question has arisen in the following circumstan_ces._
1158 SUPREME COURT REPORTS (1958]
_1968_ The appellants before us are the workmen of the Dima_Wor-_ _oJ_ kuchi tea estate represented by the Assam Chah Karmachari
_TUI_ Dima~ _11,,,,,._ Sangha, Dibrugarh. The respondent is the management of
T• the Dimakuchi tea estate, district Darrang in Assam. One Dr.
##### TM :J,=:;:" of K. P. Banerjee was appointed assistant medical Officer of the
2'11J _B-_ Dimakuchi tea estate with effect from November l, 1950. He
_s._ _K.DaaJ._ was appointed subject to a satisfactory medical report and on
probation for three months. It was stated in his letter of appointment: "While you are on probation or trial, your suitability for permanent employment will be considered. If during the period of probation you are considered unsuitable for
employment, you will receive seven days' notice in writing
terminating your appointment. If you are guilty of misconduct, You are liable to instant dismissal. At the end of the·
period of probation, if you are considered suitable, you will
be confirmed in the garden's service." In February 1951 Dr.
Banerjee was given an increment of Rs. _5_ per mensum, but
on April 21. Dr. Banerjee received a letter from one Mr. Boroth.
manager of the tea estate, in which it was stated : "It has been
found necessary to terminate your services with effect from
the 22nd instant. You will of course receive one month's salary
in lieu of notice." As no reas()llS were given in the notice of
termination, Dr. Banerjee wrote to the manager to find out
why his services were being terminated. To this Dr. Banerjee
received a reply to this effect: "The reasons for your discharge
are on the medical side, which are outside my jurisdiction,
best kn~ to Dr. Cox but a main.reason is because of the
deceitful manner in which you added figures to the require
ments of the last medical indent· after it bad been signed by
Dr. Cox, evidence of which is in my hands."
The cause of Dr. Banerjee was then espoused by the
Mangaldai Circle of the Assam Chah Karmachari Sangha and
the secretary of that Sangha \vrote to the manager of the Dima
kuchi tea estate, enquiring about the reasons for Dr. Banerjee's discharge. The manager wrote back to say that Dr. K. P.
Banerjee was discharged on the ground of incompetence in
The cause of Dr. Banerjee was then espoused by the
Mangaldai Circle of the Assam Chah Karmachari Sangha and
the secretary of that Sangha \vrote to the manager of the Dima
S.C.R. SUPREME COUHT REPOR'rS 1159
his medical duties and the chief medical officer <Dr. Cox) had _19_ _&&_
found that Dr. Baner1'ee was incompetent and did not have _Wmkm<11_ _of_
Dimakwt.4i
sufficient "knowledge of simple everyday microscopical and _Tea Eetcl4_
laboratory work which befalls the lot of every assistant medi- •·
., _The_ MGnagtn~nl _of_
cal offi.cer 111 tea garden practice." lt was further stated that Dimat..,oM Dr. Banerjee gave a faulty. inexpert and clumsy quinine in- _Tea_ _Eetot•_
jection to one Mr. Peacock. an assistant in the Dimakuchi _s._ _K._ _D114_ _J._
te<l estate, which produced an extremely acute and severe illness very nearly causing a paralysis of the patient's leg. The
reasons given by the manager for the termination of the services of Dr. K. P. Banerjee did not satisfy the appellants herein
and certain conciliation proceedings, details whereof are not
necessary for our purpose. were unsuccessfully held over the
question of the termination of the service of Dr. Banerjee.
The matter was then referred to a Board known as the tripartite Appellate Board consisting of the Labour Commissioner,
Assam, and two representatives of the Assam branch of the
Indian Tea Association and the Assam Chah Kannachari
Sangha respectively. This Board recommended that Dr. Banerjee should be reinstated with effect from the date of his discharge. After the recommendation of the Board, the respondent he.rein appears to Ii.ave offered a sum equal to 28 month's
salary and° allowances in lieu of re-instatement; to this, however. the appellants did not agree. In the meantime, Dr. K. P.
Banerjee received' a sum of Rs. 306-1-0 on May 22, 1951 and
left the tea garden in question. Then, on December 23, 1953.
the G•wernment of Assam published a notification in which
it was staled that whereas an industrial dispute had arisen between the appellants and the respondent herein and whereas.
it was expedient that the dispute should be referred for ad-'
judic:11ion to a Tribunal constituted under s. 7 of the Act, the
Governor of Assam was pleased to refer the dispute to Shri
U. K. Gohain. Additional District and Sessions Judge. under
d. k) _of_ sub-s. (I) of s. IO of the Act. The dispute which was
thus referred to the Tribunal was described in these terms:
?'1'c;rkr11t;'1~ _**of**_
Dim [1] ik.~telii
_**Te"**_ !:_Ns~te
v. _TJ1e_ __,\la11r19.;mcnt_
Di1m~/.,'11.chi
_'J'ui_ _FhtaW_
1160 SUPREME COURT REPOHTS trn5s]
"(i) Whether the management of Dimakuchi Tea Estate
was justified in dismissing Dr. K. P. Banerjee. A. M. O.?
(ii) If not. is he entitled to re-instatement or any other
relief in lieu thereof?"
_of_
Both parties filed written statements before Mr. Gohain
and ihe respondent took the pica that Dr. K.P. Banerjee was
not a "workman·· within the meaning of the Act; therefore.
there was no industrial dispute in the sense in which that exprc.<Sion was defined in the Act and the Tribunal had no jurisdiction to make an adjudication on merits. Mr. Gohain took
up as a preliminary point the question if Dr. Banerjee was a
"workman" within the meaning of the Act and came to a
conclusion which may be best expressed in his own words:
"Dr. rlauerjee being not a 'workman', his case is not one
of an "industrial dispute" under the Industrial Disputes Act
and his case is therefore beyond the jurisdiction of this Tribunal and the Tribunal has therefore _no_ jurisdiction to give any
relief to him."
There was then an appeal to the Labour Appellate Tribunal of India, Calcutta. That Tribunal affirmed the finding
of Mr. Gohain to the effect that Dr. Banerjee was not a workman within the meaning of the Act, The Appellate Tribunal
then said:
"A dispute between the employers and employees to be
an industrial dispute within the meaning of section 2(k) of the
Industrial Disputes Act, must be between the employers and
the workmen. There cannot be any industrial dispute between the employers and the employees who are not work**men."**
The appeal was accordingly dismissed by the Labour Appellate Tribunal. The appellants herein then moved this Court
for special leave and by an order dated March 14, 1956. special
leave was granted, but was "limited to the question whether
a dispute in relation to a person who is not a workman falls
within the scope of the definition of industrial dispute contain
ed ins. 2 (k) of the Industrial Disputes Act, 1947."
It is clear from what has been stated above that the
S.C.R. SUPREME COURT REPORTS 1161
question whether Dr. K. P. Banerjee is or is not a workman _1958_
within the meaning of the Act is no longer open to the parties _Workmen_ _of_
and we must proceed on the footing that Dr. K. P. Banerjee Dlmakuelii
###### was not a workman within the meaning o.f the Act and then Toa :itaU
decide the question if the dispute in relation to the termination _Tlit_ Ma...;,gen~;11 _of_
of his service still fell within the scope of the definition of the _D;maktl/e!,_
expression "industrial dispute" in the Act. "" - •
We proceed now to read the definition clause the inter- _s._ _K. Da•J._
pretation of which is the only question before us. That definition clause is in these terms:
"S. 2 (k): "Industrial dispute" means any dispute or
difference between employers and employers, or between em
ployers and workmen, or between workmen and workmen.
which is connected with the employment or non-employment
or the terms of employment or with the conditions of labour.
of any person;"
It must be stated here that the expression "workman" is also
defined in the Act, and the definition which is relevant fon
our purpose is the one previous to the amendments of t 956;
therefore, in reading the various sections or' the Act, we shall
read them as they stood prior to the amendments of 1956 and
refer to the amendments only when they have a bearing on
the question before us. The definition of 'workman' as it
stood at the relevant time stated:
"S. 2(s): "Workman" means any person employed (including an apprentice) in any industry to do any skilled or
unskilled manual or clerical work for hire or reward and
includes, for the purposes of any proceedings under this Act in
relation to an industrial dispute, a workman discharged during
that dispute, but does not include any person employed in
the naval, military or air service of the Government."
Now, the question is whether a dispute in relation to a
person who is not a workman within the meaning of the Act
still falls within the scope of the definition clause in s. 2(k).
If we analyse the definition clause it falls easily
and naturally into three parts: first, there must be a dispute
or difference; second, the dispute or difference must be between employers and employers. or between employers and
J,·l'(D)3SCT--9
"S. 2(s): "Workman" means any person employed (including an apprentice) in any industry to do any skilled or
unskilled manual or clerical work for hire or reward and
includes, for the purposes of any proceedings under this Act in
relation to an industrial dispute, a workman discharged during
that dispute, but does not include any person employed in
the naval, military or air service of the Government."
Now, the question is whether a dispute in relation to a
person who is not a workman within the meaning of the Act
still falls within the scope of the definition clause in s. 2(k).
If we analyse the definition clause it falls easily
and naturally into three parts: first, there must be a dispute
or difference; second, the dispute or difference must be between employers and employers. or between employers and
ll62 SUPREME COURT REPORTS Ll958
_1968_ workmen or between workmen and workmen; third, the dis_w_ .,.hoeio _af_ pute or difference must be connected with the employment or
m ... h<Ai
##### T"' •- non-employment or the terms of employment or with the
., "· _of_ conditions l>f labour, _of_ _any person._ The first part obviously
#### 2'Ao m::::::" refers to the factum of a real or substantial dispute; the second
##### 2'• •- part to the parties to the dispute; and the third to the subject
_8._ _x._ _Dru_ _J._ matter of that dispute. That subject matter may relate to any
of two matters-(i) employment or non-employment, and (ii)
terms of empll>yment or conditions of labour, of any person.
On behalf of the appellants it is contended that the conditions referred to in the first and second parts of the definition
clause are clearly fulfilled in the present case, because there
is a dispute or difference over the termination of service of
Dr. K. P. Banerjee and the dispute or difference is between
the employer, namely, the management of the Dimakucbl
tea estate on one side. and its workmen on the other. even
taking the expression "workmen" in the restricted sense in
which that expression is defined in the Act. The real diffi.
culty arises when we come to the third part of the definition
clause. Leai:ned counsel for the appellants has submitted
that the expression "of any person" occurring in the third
part of the definition clause is an expression of very wide
impl)rt and there are no reasons why the words "any person"
should be equated with "any workman", as the Tribunals
below have done. The argument is that inasmuch as the dispute or difference between the employer and the workmen
is connected with the non-employment of a person called
Dr. K. P. Banerjee (even though he was not a workman). the
dispute is an industrial dispute within the meaning of the de
finition clause. At first sight, it does appear that there is Cl>nsiderable force in the argument advanced on behalf of the
appellants. It is rightly pointed out that the definition clause
does not contain any words of qualification or restriction in
respect of the expression "any person" occurring in the third
part, and if any limitations as to its scope are to be imposed.
they must be such as can be reasonably inferred from the
definition clause itself or other provision of the Act.
::>CR SUPREME COURT REPORTS 1163
A little careful consideration will show, however, that _1968_
the expression "any person" occurring in the third part of the _Wore.en_ _of_
_Dimafcuclt_ i
definition clause cannot mean anybody and everybody in this _'l'fa_ _Eatau_
wide world. First of all, the subject matter of dispute must . l ("") f _T' 11e_ _ma....,....U_ 11 ["· ] _o_ _[1 ]_ _,_ _1_
relate to (1) employment or non-emp oyment or n terms o _Di1na"1<CM_ .
employment or conditions of labour of any person~ these ne- _Tea Ealalt_
cessarily import a limitation in the sense that a person in _:;._ _K. Du•_ _J._
respect of whom the employer-employee relation _never_
_existed_ or _can never possibly exist_ cannot be the subject mat·
ter of a dispute between employers and workmen. Secondly,
the definition clause must be read in the contex of the subject matter and scheme of the Act, and consistently with the
objects and other provisions of the Act. It is well settled
that " the words of a statute. when there is a doubt about
their meaning are to be understood in the sense in
which they best harmonise with the subject of the enactment and the object which the Legislature has in view. Their
meaning is found not so much in a strictly grammatical or
etymological propriety of language, nor even in its popular
use, as in the subject or in the occasion on which they are
used, and the object to be attained." (Maxwell, Interpretation of Statutes, 9th Edition, p. 55).
It is necessary, therefore, to take the Act as a whole
and examine its salient provisions. The long title shows that
the obje.ct of the Act is "to make provision ·for the investigation and settlement of industrial disputes, and for certain
other purposes." The preamble states the same object and
s. 2 of the Act which contains definitions states that unkm
there is anything repugnant _in_ the subject or context, certain expressions will have certain meanings. Chapter 11 refers to the authorities set up under the Act, such as, Works
Comm;ttees, Conciliation Officers. Boards of Conciliation.
Courts of Enquiry, and Industrial Tribunals. The primary
duty of a Works Committee is to promote measures for
securing and preserving amity and good relations between
the employer and his workmen and. to that end, to comment
L,'P(D)it''WT-H( a)
1164 SUPREME COURT REPOUTS [1958]
_1968_ upon matters of their common interest or concern and en·
##### w.,...,_ of deavour to compose any material difference of opinion in
_Di...kuMi_
_Tea_ _E..,,._ respect of such matters, Conciliation Officers are charged
v. with the duty of mediating in and promoting the settlement
_'1'111_ _MBMgem••• of_ . . - C ·1· - 1 be
_Di""'kuc/>i_ of mdustnal disputes. A Board of onc1 iat10n may a so
_Tto_ _E.,,,.._ constituted for the same purpose, namely, for promoting the
_s._ _K._ _IJa•_ _J._ settlement of an industrial dispute. A Court of Enquiry may
be appointed for enquiring into any matter which appears
to be connected with or relevant to an industrial dispute.
Section 7 of the Act empowers the appropriate Government
to constitute one or more Tribunals for the adjudication of
industrial disputes in accordance with the provisions of the
Act. Chapter III ~ontains provisions relating to the reference
of industrial disputes to Boards of Conciliation. Courts of
Enquiry or Industrial Tribunals, and the reference in the
present case was made under s. 10 of that Chapter. Under
s. IO(c) of the Act where an appropriate Government is of
opinion that any industrial disputes exist or are apprehend·
ed, it may. at any time, by order in writing, refer the dispute
or any matter appearing to be connected with or relevant 1tl
the dispute to a Tribunal for adjudication. Chapter IV of
the Act deals with procedure. powers and duties of the au·
thorities set up under the Act. Where an industrial dispute
has heen referred to a Tribunal for adjudication, s. 15 re·
quires that the Tribunal shall bold its proceedings expeditiously and shall as soon as practicable on the conclusion
thereof submit its award to the appropriate Government. Section 17 lays down _inter alia_ that the award of a Tribunal shall
within a period of one month from the date of its receipt by
the appropriate Government be published in such manner
as it thinks fit. Section 17-A lays down that the award of a
Tribunal shall become enforceable on the expiry of thirty
days from the date of its publication under s. 17; it also
contains certain other provisions which empower the appro·
priate Government to modify or reject the award. Section 18
is important for our purpose, and in so far as it relates
ta awards it states that an award which has become enforce·
able shall be binding on
S.C.R. SUPREME COURT REPCRTS 1165
(a) all parties to the industrial dispute; _J9S3_
. _Wo•hlM_ _of_
(b) all other parties summoned to appear in the pro- _Di111aheAO_
ceedings as parties to the dispute, unless the Tribuna 1 re- _T«i_ .,. B~
cords the opinion that they were so summoned withoitt pro· The~ _el_
per cause; _T111_ _Biia#_
(c) where a party referred to under clause (a) or Clause _8· K_ _Dtu_ _J._
(b) is an employer, his heirs, successors or assigns in respect
of the establishment to which the dispute relates; and
(d) where a party referred to in clause (a) or clause (b)
is composed of workmen, all persons who are employed in
the establishment or part of establishment as the case may
be, to which the dispute relates on the date of the dispute
and all persons who subsequently beoome employed in that
establishment or part.
Section 19 lays down the period of operation of settlements
and awards and states _inter_ _alia_ that aiI1 award shall, subject
_to the provisions of the section, remain in operation for a
period of one year. Chapter V of the Act deals with strikes
and lock-outs, Chapter V-A with lay-off and retrenchment,
Chapter VI with penalties and Chapter VII with miscellaneous ma.tters. It is important to note that tpough in the defi
nition of "lock-out", s. 2 (1) of the Act, and "strike", s. 2(q).
of the Act, the expression 'any person' has been used, in
ss. 22(2) and 23 of the Act which deal with 'look-out" and
"strike", only the word 'workmen' has been used. Section 33
provides that during the pendency of any conciliation proceedings or any proceedings before a tribunal of any industrial
dispute, no employer shall (a) alter to the prejudice of the
_workmen_ concerned, the conditions of their service etc. or
(b) discharge or punish by dismissal or otherwise any _work-_
###### man concerned in the dispute. Section 33 A, however, uses
the word 'employee', but read with s. 33, the word employee
must mean there a w,orkman. Section 36 which deals with
representation of parties ha:s some bearing on the question
beft>re us. It lays down that a workman who is a party to a
dispute shall be entitled to be represented in any proceeding under the Act by
1166 SUPREME COURT REPORTS (1958]
_1968_ (a) an officer of a registered trade union of which he is
##### w..- •! a member;
# ~ (b) an officer of a federation of trade unions to which
fl< _Ma;;,__ the trade union referred to in clause (a) is affiliated; and
_01_
_D;...ahM._
_Tw_ _E..;._ (c) where the worker is not a member of any trade
union, by an officer of any trade union connected with, or
_&.K.Da•J._ th . . hi
by any o er workman employed m the industry m w ch
the worker is employed and authorised in such manner as
may be prescribed.
An employer who is a party to a dispute shall be entitled
to be represented in any proceedings under the Act by
(a) an officer of an association of employers of which
he is a member;
(b) an officer of a federation of associations of employers to which the association referred to in clause (a) is
affiliated; and
(c) where the employer is not a member of any association of employers, by an officer of any association of em
ployers connected with, or by any other employer engaged
in, the industry in which the employer is engaged and authorised in sudh manner as may be prescribed.
Sub-section (3) of s. 36 states that no party to a dispute
shall be entitled to be represented by a legal practitioner in
any conciliation proceedings under the Act or in any proceedings before a court. Sub-section (4) states thirt in any pro
ceeding before a Tribunal a party to a dispute may be represented by a legal practitioner with the consent of the other
parties to the proceeding and with the leave of the Tribunal
The point to note is that there is no particular provision for
the representation of a party other than a workman or an
employer, presumably because under the second part of the
definition clause the parties to an industrial dispute can only
be employers and employers, employers and workmen or
workmen and workmen.
Thus, an examination of the salient provisions ·of the Act
shows that the principal objects of the Act are
s.c.R. SUPR.EME COURT REPORTS U67
(1) the promotil:>n of measures for securing and preserv- _196&_
ing amity and good relations between the employer and Worhaca o/
workmen; ~-=
(2) an investigation and settlement of industrial disputes, The .If~ _of_
between employers and employers, employers and workmen, Di~
###### or workmen and wl:>rkmen, with a right of representation by Tea "'*
a registered trade union or federation of trade unions or as- _s._ _K._ _Dae_ _J._
sociation of employers or a federation of ass1:>ciatio!l8 of emloyers;
(3) prevention of illegal strikes and lock-outs;
(4) relief to workmen in the matter of lay-off and retrenchment; and
(5) collective bargaining.
The Act is primarily meant for regulating the relations of em
ployers and workmen-past, present and future. It draws a
distinction between 'workmen' as such and the managerial
or supervisory staff, and confers benefit on. the former only.
It is in the context of all these provisions of the Act that
the definition clause in s. 2(k) has to be interpreted. It seems
fairly obvious to us that if the expression "any person" is
given its ordinary mea!ning, then the definition clause will
be so wide as to become inconsistent not merely with the ob
jects and other provisions 1:>f the Aot, but also with the other
parts of that very clause. Let us see how the definition clause
works if the expression "any person" occurring therein is
given its ordinary meaning. The workmen may then raise a
dispute about a person with whom they have no possible
Cl:>mmunity of interest; they may raise a dispute about the
employment of a person in another industry or a different establishment..;....a dispute in which their own employer is not
in a position to give any relief, in the matter of employment
or non-employment or the terms 1:>f employment or conditions of labour of such a person. In order to make our meaning clear we may take a more obvious example. Let WI assume that for s1:>me reason or other the workmen of a particular industry raise a dispute with their employer about the
employment or terms of employment of the District Map
trate or District Judge of the district in which the industry
1168 SUPREME COURT REPORTS [1958]
_1958_ is situate. It seems clear to us that though the District Mugis-·
_Work...,._ _of_ trate br District Judge undoubtedly comes within the ex
~;:;.z: pression "any persbn" occurring in the definition clause, a
v. dispute a!bout his employment or tenns of employment is not
## Ta. :i::z:;.f of an industrial dispute; firstly, because such a dispute does not
_Tea_ _EJ...,,_ come within the scope of the Act, having regard to the defi_s. K. Da•_ _J._ nition of the words "emplllyer", "industry", and ·'workman"
and also to other p~ovisions of the Act; secondly, there is no
possible community of interest between the District Magistrate or District Judge on the bne hand and the disputants,
employer and workmen, on the other. The absurd results
that will follow such an interpretation have been forcefully
expressed by Chagla C. J., in his decision in _Narendra Kumar_
_Sen_ v. _All_ _India Industrial Disputes (Labour Appellate) Tri-_
_bunal('):_
"If "any person" were to be read as an expression without any limitation and qualification whatsoever, then we
must not put even. any territorial restriction on that expression. In other words, it would be open to the workmen not
only to raise a dispute with regard to the tenns of employment
of persons employed in the same industry as themselves, not
only to raise a dispute with regard to the tenns of employment in corresponding or similar industries, not only a dispute with regard to the tenns of employment of people em
ployed in our country, but the terms of employment of any
workman or any labourer anywhere in the world. The proposition has only to be stated in order to make one realise how
entirely untenable it is."
"If "any person" were to be read as an expression without any limitation and qualification whatsoever, then we
must not put even. any territorial restriction on that expression. In other words, it would be open to the workmen not
only to raise a dispute with regard to the tenns of employment
of persons employed in the same industry as themselves, not
only to raise a dispute with regard to the tenns of employment in corresponding or similar industries, not only a dispute with regard to the tenns of employment of people em
Take, for example, anbther case where the workmen raise
an objection to the salary or remuneration paid to a Manager or Chief Medical Officer by the employer but without
claiming any benefit fur themselves, and let us assume that a
dispute or difference arises between the workmen on one side
and the employer on the other over such an objection. If
such a dispute comes within the definition clause and is referred to an industria 1 tribunal for adjudication, the parties
(r) [1953] 55 Born. L.R. 125, 129, 130.
S.C.-R SUPR.EMB COURT REPORTc 116!1
to the dispute will be the employer on one side and his work- _1958_
men ·on the other. The Manager or the Chief Medical Officer _ll'<wlomen of_
cannot obviously be a party tb the dispute, ecause e b h is [· ] not _Tea Vimakuchi Elllat•_
a 'workman' within the meaning of the Act and there • 1 is no • _Th_ e: _111_ - _"·_ _**anagement o;**_,,
dispute between him and his employer. That bemg tlie pos1- _Dimak.ichi_
tion, the award, if any, given by the Tribunal will be bind- _Tea Eatatt_
ing, under cl. (a) of s. 18, on the parties to the dispute and,9, _K._ _Das_ _J._
not on the Manager or the Chief Medidal Officer. It is extremely doubtful if in the circumstances stated. the Tribunal
can summon the Manager or the Chief Medical Officer as a
party to the dispute, because there is no dispute between the
Manager or Chief Medical Officer on one side and his emloyer on the other. Furthermore, s. 36 of the Act does not provide for representation of a person who is ·not a party to the
dispute. If, therefore, an award is made by the Tribunal in
the case which we have taken by way of illustration, that
award, though binding on the employer, will not be binding on the Manager or Chief Medicat Officer. It should be
obvious that the Act could not have contemplated an eventuality of this kind, which does not promote any of the objects of the Act, but rather goes against them.
When these difficulties were pointed out to learned counsel for the appellants, he conceded that some limitations
must be put on the width of the expression "any person" oc•
curring in the definition clause. He formulated four such
limitations :
(1) The dispute must be a real and substantial one in
respect of which one of the parties to the dispute can give relief to the other; e.g., when the dispute is between workmen
and employer, the employer must be in a position to give
relief to the workmen. This, according to learned counsel for
the appellants, will exclude those cases in which the workmen ask for something which their employer is not in a position to give. It would also exclude mere ideological differences or controversies.
(2) The industrial dispute if raised by workmen must
relate to the particular establishment or part of establishment
1170 SUPREME COURT REPORTS [19118]
_19SB_ in which the workmen are employed so that the definition
###### w.,.,,,,,. .. •/ clause may be consistent with s·. 18 of the Act.
_Dimaku<lu_ _Tea E1tate_ (3) The dISpute must relate to the employment, non-em
_'l'he Man;g.,..nt of_ ployment or the terms of employment or with the conditions
Dimal:troAi of labour of any person, but such person must be an em
_Tea E8tate_ ployee discharged or in service or a candidate for employ_s._ _K. D .. J._ ment. Aocording to learned counsel for the appellants, the
person about whom the dispute has arisen need not be a
workman within the meaning of the Act, but he must answer
to the description of an employee, discharged or in service,
or a candidate for employment.
(4) The workmen raising the dispute must have a nexus
with the dispute, either because they are personally interested or because they have taken up the cause of another per,;on in the general interest of labour welfare. The further argument of learned counsel for the appellants is that even imposing the aforesaid four limitations on the width of the
expression "any person" occurring in the definition clause, the
dispute in the present case is an industrial dispute within the
meaning of s. 2 (le) of the _Aot,_ because (1) the employer
could give relief in the matter of the termination bf service
of, Dr. K.P. Banerjee, (2) Dr. K.P. Banerjee belonged to the
same establishment, namely, the same tea garden, (3) the
dispute related to a discharged employee (though not a workman) and (4) the workmen raising the dispute were vitally
interested in it by reason of the fact that Dr. Banerjee (it is
stated) belonged to their trade union and the dismissal of an
employee without the formulation of a charge and without
giving him an opportunity to meet any charge was a matter
of general interest to all workmen in the same establishment.
We now propose to examine the question whether the
limitations formulated by learned counsel for the appellants
are the only true limitations to be imposed with regard to
the definition clause. In doing so we shall also consider what
is the true scope and effect bf the definition clause and what
are the correct tests to be applied with regard to it. We
think that there is no real difficulty with regard to the first
S.C.R.. SUPR~ME COURT REPORTS 1171
two Jimitations. They are, we think, implicit in the definition _1958_
clause itself. It is obvious that a dispute between employers _Workmen of_
_JJimak'UCki_
and employers, employers and workmen, or between work- _Tea Eslale_
men and workmen must be a real dispute capable of set- _The_ ;~nagement _of_
tlement or adjudication by directing one of the parties to the ~!~i
dispute to give necessary relief to th'e other. It is also obvi. b dir tl L. _8. K. Das_ _J._
ous that the parties to the dispute must e ec y or suustantially interested therein, so that if workmen raise a dispute, it must relate to the establishment or pa:rt of establish.men in which they are employed. With regard to limitation
(3), while we agree that the expression 'any person' cannot
be completely equated with 'any workman' as defined in the
·Act, we think that the limitation formulated by learned counsel for the appellants is much too widely stated and is not
quite correct. We recognise that if the expression 'any person'
means 'any workman' ·within the meaning of the Act, then it
is difficult to understa11d why the Legislature instead of using
the expression 'any workman' used the much wider expression 'any person' in the third part of the definition clause.
The very circumstance that in the second part of the defini·
tion clause the expression used is "between emyloyers and
workmen or between workmen and workmen" while in the
third part the expression used is "any person" indicates that
the expression "any person" cannot be completely equated
with 'any workman'. The reason for the use of the expression "any person" in the definition clause is, however, not far
to seek. The word 'workman' as defined in the Act (before
the amendments of 1956) included, for the purposes of any
proceedings under the Act in relation to an industrial dispute, a workman _discharged during the dispute._ This definition corresponded to s. 2 (j) of the old Trade Disputes Act,
1929 except that the words "including an apprentice" were
inserted and the words "industrial dispute" were substituted
for the words "trade dispute". It is worthy of note that in the
Trade Disputes Act, 1929, the word 'workman' meant any
person employed in any trade or industry to do any skilled
117:! SUPREME COUR1' REPORTS [1948)
_1958_ or unskilled manual or clerical work for hire or reward. It is
_iv_ orkm•~ _of_ clear enough that prior to I 956 when the definition of 'work·
_Dimakuchi_
_Tea_ _E•tate_ man' in the Act was further widened to include a person dis.
_The_ .Ma~·,,,..nt _•!_ missed, discharged or retrenched in connection with, or as a
_Dimai11chi_ consequence of the dispute or whose dismissal, discharge or
_Tt.aEWite_ - retrenchment led to the dispute, a workman who had been du;.
_8• K. Das_ J. charged earlier and not during the dispute was not a work
man within the meaning of the Act. If the expression. "any
person" in the third part of the definition ctause were to be
strictly equated with 'any workman'. then there could be
no industrial dispute, prior to 1956, with regard to a workman who had been discharged earlier than the dispute, even
though the discharge itself had led to the dispute. That
seems to be the reason why the Legislature used the expression 'any person' in the third part of the definition clause
so as to put it beyond any doubt that the non-employment
of such a dismissed workman was also within the ambit of
an industrial dispute. There Wll'S a wide gap between a 'work
man' and an 'employee' under the definition of the word
'workman' in s. 2(s) as it stood prior to 1956; all existins
workmen were no doubt employees; but all employees were
not workmen. The supervisory staff did not come within the
definition. The gap has been reduced to some extent by the
amendments of 1956; part of the supervisory staff (who draw
wages not exceeding five hundred rupees per mensem) and
those who were otherwise workmen but were discharged or
dismissed earlier have also come within the definition. If and
when the gap is completely bridged. 'workmen' will be synonymous with 'employees', whether engaged in any skilled or
unskilled manual, supervisory, technical or clerical work, etc.
But till the gap is completely obliterated, there is a distinotion between workmen and non-workmen and that distino
tion has an important bearing on the question before us.
Limitation no. (3) as formulated by learned counsel for the
appellants ignores the distinction altogether and equates 'any
person' with 'any employee'-past, present or future: this
S.C.R. SUPREME COURT REPORTS 1173
we do not think is quite correct or consistent with the other _1958_
provisions of the Act. The Act avowedly gives a restricted _work""" of_
meaning to the word 'workman' and almost all the provi- f.~':'1.":};;
sions of the Act are intended to confer benefits on that class v.
. . f - k 7' _It;;_ _llfonagenumt of_
of persons who genera ly answer l to the escr1pt1on o d wor - _n;,,,,,/,1tclii_ men. The expression 'any person' in the definition clause · _'fea 8-'_ _[10]_ _''_
means, in our opinion, a person in whose employment, or _8._ K. .Tia.~ .1.
non-employment, or terms of employment, or conditions of
labour the workmen as a class have a direct or substantial
interest-with whom they have, under the scheme of the
Act, a community of interest. Our reason for so holding is
not merely that the Act makes a distinction between workmen and non-workmen, but because a dispute to be a real
dispute must be one in which the parties to the dispute have
a direct or substantial interest. Can it be said that workmen
as a class are directly or substanti~lly interested in the employment, non-employment, terms of employment or conditions of labour of persons who belong to the supervisory staff
and are, under the provisions of the Act, non-workmen on
whom the Act has conferred no benefit, who cannot by themselves be parties to an industrial dispute and for whose representation the Act makes no particular provision? We venture to think that the answer must be in the negative. Limitation (4) formulated by learned counsel for the appellants
is also too generally stated. We recognise that solidarity of
labour or general interest of labour welfare may furnish, in
some cases, the necessary nexus of direct or substantial interest in a dispute between employers and workmen, but the
principle· of solidarity of the labour movement or general
welfare of labour must be based on or correlated to the principle of community of interest; the workmen can raise a dispute in respect of those persons only in the employment or
non-employment or the tenns of employment or the conditions of labour of whom they have a direct or substantial interest. We think that Chagla CJ .. correctly put the crucial
test when he said in _Narendra Kumar Sen_ v. _All India Indus-_
_trial Disputes (Labour Appellate) Tribunal(')._
( ') [195~] 55 Born. "L.R. 125. 129, 130.
1174 SUPRE~IE COURT REPORTS [1958]
_1968_ "Therefore, when s. 2 (kJ speaks of the employment or
_Wor'lom.n of_ non-employment or the terms of employment or the condi
Dimaku~Tii _Tea E""'"_ hons o ·fib a our o any person, It can o y mean t e emp oy- f - nJ h I
v. ment or non-employment or the terms of employment or the
_Tiu!_ _**.Management**_ _of_ . . _Dimal .. chi_ cond1hons of labour of only those persons m the employment
_Tea E&ate_ or non-employment or the terms of employment or with the
_s._ _K._ _n .._ _J._ conditions of Jabour of whom the workmen themselves are
directly and substantially interested. If the workmen have no
direct or substantial interest in the employment or non-employment of a person or in his terms of ·emplt>yrnent or his
conditions of labollr, then an industrial dispute cannot arise
with regard to such person."
We reach the same conclusion by approaching the question from a somewhat different standpoint. Ordinarily, it is
only the aggrieved party who can raise a dispute; but an
'industrial dispute' is put on a _collective basis,_ because it is
now settled that an individual dispute, not espoused by
others of the class to which the aggrieved party may belong,
is not an industrial dispute within the meaning of s. 2 (k),
As Isaacs J. observed in the Australian case of _George Hud-_
_son Ltd._ v. _Australian Timber Workers' Union('):_
"The very nature of an 'industrial dispute' as distinguished from an individual dispute, is to obtain new industrW
conditions, not merely for the specific individuals then working from the specific individuals then employing them, and
not for the moment only, but for the _class of employees_ from
the _class_ _of employers ......................._ . It is a battle by the
claimants, not for themselves alone."
Section 18 of the Act supports the aforesaid observations, in
so far as it makes the award binding not merely on the parties to the dispute, but where the party is an employer, on
his heirs, successors or assigns and where the party is composed of workmen, on all persons employed in the establishment and all persons who subsequently become employed
therein. If, therefore, the dispute is a _collective dispute,_ the
party raising the dispute must have either a direct interest in
the subject matter of dispute or a substantial interest therein
in the sense that the class to which the aggrieved party be
(') 32. C.L.R. 413, 441.
S.C.R. SUPRElVIE COURT REPORTS 1175
longs is substantially affected thereby. It is the _community of_
_interest_ of the class as a whole-class of employers or class Jr°'"'""" _of_
of workmen-which furnishes the real nexus between the dis- _Dimak1tclli TeaEstaie_
pute and the parties to the dispute. We see no insuperable v.
, b ., . f h' _The_ _M11nage111t11t_ _-Of_
diffi c ul ty m t e practica I application o t 1s test. In a case _r1im.a.kwlii_
where the party to the dispute is composed of aggrieved work- _l'ea Estak_
men themselves and the subject matter of dispute relates to _S.K. Da$_ _J._
them or any of them, they clearly· have a direct interest in
the dispute. Where, h'owever, the party to the dispute also
composed of workmen, espouse the cause of another person
whose employment, or non-employment, etc., may prejudicially affect their interest, the workmen have a substantial in·
terest in the subject matter of dispute. In both such cases, the
dispute is an industrial dispute.
Learned counsel for the appellants has also drawn our
attention to the definition of a 'trade dispute' in the Indian
Trade Unions Act, 1926. That definition is also in the same
terms, but with this vital difference that the word 'workmen'
means there "all persons- employed in trade or industry whether or not in the employment of the employer with whom
the trade dispute arises." It is obvious that the very wide
definition of the word 'workmen' determines the ambit of the
definition of a 'trade dispute' in the Trade Unions Act, 1926.
The provisions of that Act have different objects in view, one
of which is the expenditure of the funds of a registered Trade
Union 'on the conduct of trade disputes on behalf of the
Trade Union or any member thereof. We do not think that
that definition for the purposes of an Act like the Trade
Unions Act is of any assistance in construing the definition in
the Act with which we are now concerned, even though the
words employed are the same; for, one thing, the meaning of
the word 'workman' completely changes the ambit of the
definition clause, and for another, the objects, scheme and
purpose of the two Acts are not the same. For the same reasons, we do not think that with regard to the precise prob·
Iem before us much m;sistance can be obtained by a detailed
1176 SUPREME COURT REPORTS f19118]
_19ii8_ examination of English, American or Australian decisions
_Workm1m of_ given with regard to the terms of the statutes in force in
_Din•rtJ•uchi r,,,_ _Estate_ t ose countries. h - E h A ac . ct must be mterpret • ed on its own ·
,._ tenns-p~cularly when the definition of a 'workman' varies
_T!1s:_ _J.fa11ngcmrnt_ _(lf_ f - h - d' · fr
_Dimahchi_ rom statute to statute and, wit changmg ct>n ttJons, om
_Th<_ ~sta.te time to time. and country to country.
_S._ _K._ Da~ _J._
The interpretation of s. 2(k) of the Act has been the
subject of consideration in various Indian decisions frt>m
different points of view. Two recent decisions of this Court
considered the question if an individual dispute of a workman was within the definition of an industrial dispute. The
decisitm in C. _P._ _Transport Services Ltd._ v. _Raghunathl'),_ related to the C. P. and Berar Industrial Disputes Settlement
Act (No. XXIII of 1947) and the decision in _Newspapers Ltd._
v. _State_ _Jndu,-trial_ _Tribunal,_ _U._ P.('). to the U. P. Industrial Disputes Act (No. XXVIH of 1947). Both these decisions considered s. 2(k) of the Act. but with reference to a
different problem. The definition clause in s. 2(kl was considered at some length by the Federal Court in _Western India_
_Automobile Association_ v. _The Industrial Tribunal,_ _Bom·_
_bayC)._ and learned counsel for the appellants has placed
great reliance on some of the cbservations made therein. The
question which fell for dec.ision in that case was whether "industrial dispute" included within its ambit a dispute with regard to re-instatement of certain dismissed workmen. It was
held that re-instatement was connected with non-employment
and, therefore, fell within the words of the definition. It appears that the finding of the Court from which the appeal was
preferred to the Federal Court was that the workmen whose
re-instatement was in question were discharged during the
dispute and were. therefore, workmen within the meaning of
the Act. Therefore. the problem of interpretation with which
we are faced in this oase was not the problem before their
Lordships of the Federa:I Court. The observations on which
learned counsel for the appellants has relied are these:
"The question for determination is whether the defini( ') [1956] S.C.R. 956. (') A.LR. (1957) S.C. 532.
(') (1949] F.C.R 321. 329-330. 346~147.
S.C.R. SUPREME COURT REPORTS 1177
tion of the expression "industrial dispute" given in the Act _1968_
includes within its ambit, a dispute in regard to re-instate- _Wor.l:tmn of_
.ment of dismissed employees ......... The wor s o d f th e d e fin 1-. [. ] _Di'1114lc!Wii Te.a Estate_
tion may be paraphrazed thus: "any dispute which has con-, _ _M_ v _,,
nection with the workmen bemg m, or _ - out of service or emp-. _p,.., Dimalcucki anagemtnl o_ _1_
loyment". "Non-employment" is the negative of "employ· _Tea_ ~state
ment" and would mean that disputes of workmen out of ser· _s.K. Das J._
vice with their employers are within the ambit of the defini·
tion. It is the positive or the negative act of an employer that
leads to employment or to non-employment. It may relate to
an existing employment or to a contemplated employment, or
it may relate to an existing fact of non-employment or a contemplated non-employment. The following four illustrations
elucidate this point: (l) An employer has already employed
a person and a trade union says "Please do not employ him".
Such a dispute is a dispute as to employment or in connection
with employment. (2) An employer gives notice to a union
saying tha:t he wishes to employ two particular persons. The
union says "no". This is a dispute as to employment. It
arises out of the desire of the employer to employ certain persons. (3) An employer may dismiss a man, or decline to em·
loy him. This matter raises a dispute as to non-employment.
(4) An employer contemplates turning out a number of people who a!I'e already in his employment. It is a dispute as t~
contemplated non-employment. "Employment or non-em. ployment" constitutes the subject matter of one class of in·
dustrial disputes, the other two classes of disputes being those
connected with the terms of employment and the conditions
of labour. The failure to employ or the refusal to employ are
actions on the part of the employer which would be covered
by the terms "employment or non-employment". Re-instatement is connected with non-employment and is therefore
within the words of the definition."
##### ................................................... •- ........ ' ............... .
"It was contended that the re-instatement of the discharged workmen was not an industrial dispute because · if the
LJP(D)3SCl-10
ll78 Slil'RE:ME COUilT REl'ORT::; [J 958]
fr _o-rktrteu_ _uj_
union represented Lhe discharged employees, they were not
workmen within the definition of that word in the Industrial
1;;'.;"';~~~; Disputes Act. This argument is unsound. We see no difficulty
v. in the respondents (unionl taking up the cause of the dis_Tf,,· Jbuwocu•wl_ _of_ l km d th d' b · till - d "al
_fh"mahudii_ c 1arged Wbr en an e 1spute emg s an m ustrt
_2"•a Eetak_ dispute between the employer and the workmen. The non_s.K. D"' J._ employment "of any persott" can amount to an industrial
dispute between the employer and the workmen, falling imder the definition of thM word in the Industrial Disputes Act.
It was argued that if the respondents represented the undischarged employees, there was no dispute between them and
the employer. That again is fallacious, because under the
definition of industrial dispute. it is not necessary that the
parties to the proceedings can be the disoharged workmen
only. The last words in the definition of industrial dispute,
viz., "any person" are a complete answer to this argument
of the appellants." It is true that two of the illustrations~
Nos. (2) and (3)-given in the aforesaid observations seem
to indicate that there can be an industrial dispute relating to
persons who are not strictly speaking "workmen"; but whether those persons would answer to such description or what
community of interest the workmen had with them is not
stated and in any view we do not think that illustrations given
to elucidate a different problem can be taken as determinative of a problem which was not before the court in that
case.
A reference was also made to the decision of this Court
in _D._ _N. Banerjee_ v. _P._ _R._ _Mukherjee(')._ The question there
was whether the expression "industrial dispute" included disputes between municipalities and their employees in branches
of work analogous to the ca'Trying on of a tarde or business .
. More in point is the decision of the Full Bench of the
Labour Appellate Tribunal in a number of appeals reported
in 1952 Labour Appeal Cases. p. 198. where the question
now before us arose directly for decision. The same question
arose for decision before the All India Industrial Tribunal
<Bank Disputes) and the majPrity of members (Messrs. K. _C._
(') [1953] S.C.R. 302.
8.C.R. SUPREME COURT R.EPOHT8 1179
Sen and J. N. Majumdar) expressed the view that a dispute _w;s_
between employers and workmen might relate to employ- _WMkmw of_
ment or non-employment or the terms of emplt>yment or con- ¥';:E":f:.{~i
ditions of labour of 'persons who were not workmen, and the, v.
. . . . - I . _'I he_ _Man<J{feme11I_ _of_
words 'any person·· used m the defi111t1on clause were e, ast1c _Dimal:uchi_
enough to include an officer, that is, a member of the super- _Pea_ _E•talc_
visory staff. The majority view will be found in Chap. X of _s.K._ _Das_ _J._
the Report. The minority view was expressed by Mr~ N.
Chandrasekhara Aiyar, who said:
"It is fairly clear to my mind that "any person" in the
- Act means· any- one who belongs to the employer class or the
workmen class and the cases in whose favour or against
whom can be said to be adequately presented by the group
ot category of persons to which he belongs.
As stated already it should be remembered that the
cases relied upon for the view that 'any person' may mean
others also besides the workmen were all cases relating to
workmen. They were discharged or dismissed workmen and
when their cases were taken up by the Tribunal the point
was raised that they had ceased to be workmen and were
therefore outside the sebpe of tbe Act. This argument was
repelled.
In my opinion, there is no justification for treating such
cases as authorities for the wider proposition that a valid
industrial dispute can be raised by workmen about the employment or non-employment of somC4:)ne else who does not
belong and never belonged to their class or category.
My view therefore is that the Act does not apply to
cases of non-workmen, or officers, if they may be so ca>Iled."
Both these views as also other decisions of High Courts and
awards of Industrial Tribunals, were considered by the Full
Bench of the Labour Appellate Tribunal and the Chainnan
of the Tribunal (Mr. J. N. Majumdar) itcknowledged that his
earlier view was not correct and expressed bis opinion, con·
curred in by all the other members of the Tribunal, at p.
210
1180 SUPREME COURT REPORTS [1958]
_1968_ "l am, therefore, of opinion that the expression 'any
_Workmen of_ person' has to be interpreted in terms of 'workmen'. The
_Dimakm:hi_ words 'any person' cannot have, in my opinion, their widest
_Tea_ _E8'au_ amplitude, as that would create incongruity and repl!gnancy
_Th• .Jlan:;,,.., .. of_ in the provisions of the Act. They are to be interpreted in a
~~ima~i manner that persons, who would come within that expression,
_JwE8'ae_ can at some stage or other, answer the description of work·
_s.K. v .. J._ man as defined in the Act."
It is necessary to state here that earlier a rnntrary view
had been taken by the Calcutta High Court in _Bir/a Brothrrs,_
_Ltd._ v. _Modak('),_ by Banerjee J. in _The Dalhousie Jute_ _Co._
_Ltd._ v. _S._ _N._ _Modak('),_ and by the Industrial Tribunal, Madras, in _East India Industries_ _(Madras)_ _Ltd._ v. _Their Work·_
_men(')._ It is necessary to emphasise here two considerations
which have generally weighed with some of the learned
Judges in support of the view expressed by them; these two
- considerations are that (!) normally workmen will not raise
a dispute in which they are not directly or substantially in·
terested and (2) Government will not make a reference unless
the dispute is a real or substantial one. We think that these
two considerations instead of leading to a strictly grammatical or etymological interpretation of the expression "any
pers1>n" occurril)g in the definition clause should lead, on
the contrary, to an interpretation which, to use the words of
Maxwell, is to be found in the subject or in the occasion on
which the words aJre used lllld the object to be attained by
the statute.
We are aware that anybody may ·be a potential wt>rkman
and the concept of "a. potential workman" introduces an
element of indefiniteness and uncertainty. We also agree that
the expression "any person" is co-existensive with any
workman, potential or otherwise. We think, however, that
the crucial test is one of community of interest and the person regarding whom the dispute is raised must be one in
whose employment, non-anployment, terms of employment
or conditions of labour (as the case may be) the parties to the
(1) I.L.R. (1948) 2 Cal. 209. (") [19111) 1 IL.J. 145.
(') [1952] L.L . .J. 122.
S.C.R. SUPREME COURT REPORTS 1181
dispute have a direct or substantial interest. Whether such
direct or substantial interest has been established in a particular case will depend on its facts and circumstances.
_195S_
_Workmonof_
cular case will depend on its facts and circumstances. _'l'da DiMku.eM_ _J!Jstak_
Two other later decisions have also been brought to our _The_ M~~gemen~ _o_
notice: _Prahlad_ _Rai_ _Mills_ v. _State of Uttar Pradesh(')_ in _lj,imaEkuchi_
- ~ea _#al•_
which Bhargava J. expressed the view that the expression
'any person' in the definition clause did not mean a work- _B.K. Da•?J_
man and the decision in _Narendra Kumar Sen_ v. _All India_
_Industrial Disputes (Labour Appellate) Tribunai(2),_ rt'ing the
.decision of Chagla C. J. and Shah J: from which we have
already quoted some extracts.
An examination of the decision referred to above undoubtedly discloses a divergence of opinion: two views have
been expressed, one based on the ordinary meaning of the
expression 'any person' and the other based on the context,
with reference to the subject of the enactment and the objects
which the legislature has in view. For the reasons which we
have already given, we think that the latter view is correct.
To summarise. Having regard to the scheme and objects of
the Act, and its other provisions, the expression 'any person'
in s. 2(k) of the Act must be read subject to such limitations
and qualifications as· arise from the context; the two crucial
limitations are (1) the dispute must be a real dispute between the parties to the dispute (as indicated in the first two
parts Of the definition clause) so as to be capable of settlement or adjudication by one party to the dispute giving necessary relief to the other, and (2) the person regarding whom
the dispute is raised must be one in whose employment, nonemployment, terms of employment, or conditions of labour
(as the case may be) the parties to the dispute have a direct
or substantial interest. In the absence of such interest the dispute cannot be said to be a real dispute between the parties.
Where the workmen raise a dispute as against their employer,
the person regarding whose employment, non-employment,
terms of employment or conditions of labour the dispute is
raised need not be, strictly speaking, a 'workman' "thin the
(') A.I.R. (1955) N.U.C.
Allahabad 664.
( [2] ) (1953) 55 Born. 1 R. 125.
_J!lJS_
_JY orl'fneti of_
_DitMk1l-chi_
_T_ _e-1i._ _Elt<lte_
v.
_Tlie_ .Marutg [1] ~1r~nt _of_
_JJim,alatcl1i_
_Tv.i._ E~late
_S.K. /Jo,J._
1182 SU.PHE.ME COURT H.EPORTS [1958]
meaning of the Act but must be one in whose employment,
non-employment, terms of employment or conditions of labour the workmen as a class have a direct or substantial interest.
Jn the case before us, Dr. K. P. Banerjee was not a
'workman'. He belonged to the medical or t_echnical staffa different category altogether from workmen. The appellants
had no direct, nor substantial interest in his employment or
non-employment, and even assuming that he was a member
of the same Trade Union, it cannot be said, on the tests laid
down by us, that the dispute regarding his termination of service was an industrial dispute within the meaning of s. 2(k)
of the Act.
The result. therefore, is that the appeal fails and is dismissed. In the circumstances of this case there will be no
order for costs.
SARKAR J.--On November 1, 1950, Dr. K. P. Banerjee
was appointed the Assistant Medical Officer of the Dimakudhi Tea Estate, whose management is the respondent in
this appeal. On April 21, 1951, the respondeni .terminated
Dr. Banerjee's service with effect from the next day and he
was offered one month's salary in lieu of notice. He accepted
this salary and later left the Tea Estate. The workmen of
the Tea Estate raised a dispute concerning the dismissal of
Dr. Banerjee. On December 23, 1953, the Government of
Assam made an order of reference for adjudication of the
dispute by the Industrial Tribunal under the provisions of s.
10 of the Industrial Disputes Act, 1947. The order of reference was in the following terms
Whereas an industrial dispute has arisen in the matters
·specified in the schedule below between:
(!) The workmen of Dimakuchi Tea Estate. P.O. Dimakuchi, District Darrang, Assam represented by the Secretary,
Assam Chah Karmachari Sangha, I.N.T.U.C. Office, P.O.
Dibrugarh, Assam and,
(2) The management of Dimakuchi Tea Estate, P.O.
Dimakuchi, District Darrang, Assam whose agents are Messrs.
Williamson Magor and Company Limited, Calcutta.
RC.R. SUPREME COURT REPORTS 1183
And whereas it is considered expedient by the Govt. of _1958_
Assam to refer the said dispute for adjudication to a Tri.bunal _Worktnµi_ _of_
_IXmalDuchi_
-constituted under section 7 of the Industrial Disputes Act, _Tea Estate_
1947 (Act XIV of 1947) Th6Ma~emenlof
Now. therefore, in exercise of the powers conferred by ~':;;
-clause (c) of sub-section (1) of section 10, as amended, of _the
Industrial Disputes Act <XIV of 1947), the Governor of
Assam is pleased to refer the said dispute to Sri Uma Kanta
Gohain, Additional District and Sessions Judge (retired) who
has been appointed to constitute a Tribunal under the provisions of the said Act.
_Sarkar_ _J._
SCHEDULE
(i) Whether the management of Dimakuchi Tea Estate
was justified in dismissing Dr. K. P. Banerjee, A. M. O.?
·(ii) If not, is he entitled to re-instatement or any other
relief in lieu thereof?
The Tribunal held that Dr. Banerjee was not a workman
:as defined in the Act and, therefore, the dispute referred was ·
not an industrial dispute and consequently it had no jurisdiction to adjudicate upon such a dispute. Tb'e workmen pre·
ferred an appeal. to the Labour Appellate Tribunal. · That
Tribunal dismissed the appeal holding that Dr. Banerjee was
not a workman within the definition of that term in the Act
and as the dispute was connected with his employment or
non-employment, it was not an industrial dispute, and was
therefore beyond the jurisdiCtion of the Industrial Tribunal.
From that decision ·the present appeal by the workmen of
the Tea Estate arises with leave granted by this -Court under
Art. 136 of. the Constitution~ In granting the leave this Court
limited it to the question whether a dispute in relation to a
person who is not a workman, falls within the scope of the
definition of "Industrial Dispute" contained in s. 2(k) of the
Act. That, therefore, is the only question before us.
Section 2(k) is in these terms:
"Industrial dispute means any dispute or difference between employers and employers or between employers and
**Jf** _**orkmtn of**_
_**IJimakueki**_
**Pee** _**EMle**_
v.
###### _Tl" Jf•·••u- of_
_**J}r'm.nkuehi**_
1184 SUPREME COURT REPORTS 1958
workmen, or between workmen and workmen, which is
connected with the employment or. non-employment or **the**
terms of employment or with the conditions of labour, of
**any person."**
The. dispute that was raised was between an employer,
the respondent in this appeal and its workmen, the appellants
before _us_ and concerned the employment or non·employment
of Dr. Banerjee, a person employed by the same employer
but who was not a workman. The question that we have to
decide has arisen because of the use of the words "any person" in the definition. These words are quite general and
very wide and according to their ordinary meaning include
a person who is not a workman. If this meaning is given to
these words, then the dispute that arose concerning Dr.
Banerjee's dismissal would be an industrial dispute because
the dispute would then be clearly within s. 2(k). This indeed
is not disputed. Unless there are reasons to the contrary these
words have to be given their ordinary meaning. In _Bir/a_
_Brothers Ltd._ v. _Modak(')_ and in _Western India Automobile_
_Association_ v. _Industrial Trilnmal_ _of_ _Bombay(')_ it was held
**that** **the** **\vords** **Hany** **person"** **Y.'ere** **not meant to refer only**
to workmen as defined in the Act but were wide and general
and would include others who were not such workmen. In
_The Dalhousie_ _lute_ _Co. Ltd._ v. _S._ _N._ _Modak('),_ Banerjee **J.**
said, "Any person means whatever individual is chosen. I
see no reason to restrict the meaning of the word 'person'."
The same view was expressed in _East India Industries_
_(Madras) Ltd._ v. _Their Workmen('),_ which was the decision
of an Industrial Tribunal. There is then some support for
the view that the words 'any person' should have no restriction put upon them.
It is pointed out on behalf of the respondent that it is
not its contention that the words 'any person' should be
understood as referring only to a "workman" as defined in
the Act but that those words should include all persons of
(') I.L.R. (1948) 2 Cal. 209. (') [1949] F.C.R. 321.
(') [1951] 1 L.L.J. 154. (') [1952] 1 L.L.J. 122.
_**1-·ea**_ _**Edak**_
_**So-rkar**_ _**J.**_
S.C.R. SUPREME COURT REPORTS 1185
the workman class and so they would include discharged _1956_
workmen. It is then stated that the first two of the cases men• _w orlmim of_
#### tioned above were concerned with a dispute regarding dis· f.':E=i
charged workmen and did not therefore decide that the Y.
- - _'l'hs M anagemuit of_
words 'any person' included all. It is no doubt true that _IXmak<uchi_
these cases were concerned with a dispute regarding discharg· _Te" E•lal<_
cd workmen but I do not understand the decision to have _Sarkar_ _.1._
proceeded on that basis. Sen _1._ said in _Birla Brothers_ case(')
(p 213) that, "It cannot be argued that workmen dismissed
prior to the Act are not 'persons' ". Anfi in the _Western_
_India Automoble Association case('),_ it was said (p. 346-7).
"It was contended that the reinstatement of the dis·
charged workmen was not an industrial dispute because if
the union represented the discharged employees, they were
not workmen within the definition of that word in the Indus·
trial Disputes Act. This argument is unsound. We see no
difficulty in the respondents {union) taking up the cause of .
. the discharged workmen and the dispute being still an indus
trial dispute between the employer and the workmen. The
non-employment "of any person" can amount to an indus·
trial dispute between the employer and the workmen, falling
under the definition of that word in the Industrial Disputes
Act. It was argued that if the respondents represented the
undischarged employees, there was no dispute between them
and the employer. That again is fallacious, because under the
definition of industrial dispute, it is not necessary that the
parties to the proceedings can be the discharged workmen
only. The last words in the definition of industrial dispute,
viz., "any person", are a complete answer to this argument
of the appellants."
The last two of the cases mentioned earlier were not how·
ever concerned with any dispute regarding discharged work·
men. In _The Dalhousie Jute_ _Co._ case(') the dispute was with
regard to the employment of persons who sought employment
as workmen and in the _East India Industries (Madras) Ltd._
case('} the dispute concerned the dismissal of a member of
(') I.L.R. (1948) 2 Cal. 209. ("). [1949] F.C.R. 321,
(') [1951] 1 L.L.J. 145. (4) [1952] 1 L.L.J. 122.
1186 SUPREME COURT REPORTS [1958)
1~68 the supervisory staff, that is, another employee of the same
_wori,..,. of_ employer who was not a workman. It is however said that
Di~i in none of these cases the arguments that are now advanced
_Tea E.,,,,._ appear to have been advanced and they were not consider-ed
_Tlle .Ma,.:g.,..,., of_ in the judgments. This comment is justified. I shall there
_n;....-;_ fore lay these cases aside in deciding the question that has
_Tt11_ _E"°"_ arisen .
_**8irkar J.**_ - Are there then good reasons for not giving to the words
"any persons" their plain meaning? Several have been advanced and I shall examine them a little later. I wish now
. to discuss how it is· proposed to restrict the meaning of these
words,. I have already stated that the contention is that the
words are not confined to a workman but refer only to a
person of the workman class. This, I confess, I do not fol
- low. The word "workman" is a term defined in the Act.
Outside the definition it is impossible to say who is a workman and who is not. That being so, the words "workman
dass" would be meaningless unless they meant all persons
who were workmen 'as defined in ·the Act. So read the
words "any ·person" would niean only a workman. But it is
.conceded that this is not so. And, of course, it cannot be so,
for, if that was intended, there was no reason for the legisla
ture not to have used the words "any workman" instead of
the words "any person". Again if this was the intention,
then a dispute concerning the dismissal of a workman would
not be an industrial dispute for a dismissed workman was
not a workman within the definition of . that word in the Act
as it stood in 1953, that being the Act with which we life
concerned. Such a result is against all conceptions of industrial disputes laws. It is indeed not contended that a dispute concerning the dismissal of a workman would not be an
industrial dispute. It therefore seems to me that the words
"any person" cannot be said to refer only to persons of the
workman cl.ass. If they cannot be restricted as being understood to refer only to a person of the workman class, it is not
suggested that they can be restricted in any other manner.
It is then said that the words refer to "workmen". dis
S.O.R SUPRE~IK COURT H.EPOl-nS 1187
missed as well as in employment as also those, who in future, _1958_
become "workmen"'. Again I am in difficulty. So under- _ll'orl,mon of_
- l d h ks _JJimalmcl1i_
stood the words wou l d not me u e a person w o see em- . _7.'ea l!Jatat•_
ployment as a workman because he has not become a work- v.
- . - . _'Plw .illam.aae11ient_ _<U_
man tdl he is employed. That bemg so, it would have to be _Dimakucki_
said that a dispute raised by workmen in employment when _1'rnEstatc_
new workmen are to be appointed, that only those of the _Sirkar_ _J._
candidates as agree to join their union should be appointed
and others should not be, would not be an industrial dispute.
That again seems to me to be against all conceptions of industrial dispute laws. Furthermore, I am wholly unable to
appreciate what is meant by a dispute concerning a person,
who is not at the time the dispute arises, a workman but in
future becomes one. When is. such a person to become a
workman? I find no answer. Again, is it to be said that
whether a dispute is an industrial dispute or not may have
to depend on future circumstances for there is no knowing
whether the person concerning whom the dispute arises will
later become a workman or not? .If he becomes one, there
can be no dispute concerning him referable to a point of time
before he became one, and, if he does not, he cannot be one
who in future becomes a workman.
It is said that the words "any person" were used instead
of the word workffian because it was intended to include
within them persons who had been dismissed before the dispute arose and who were not within the definition of workmen in the Act as it stood in 1953. If that was the reason,
why could not the legislature use the words "workmen and
dismissed workmen?" There was nothing to prevent that
being done. In fact the definition of "workman" has been
amended in 1956 to include workmen discharged in consequence of an industrial dispute or whose discharge has led to
that dispute. So, as the definition now stands, it includes
persons dismissed before the dispute arose. Yet the words
"any person" have been !aft untouched in s. 2 (k) .and not
been replaced by the word workman. This, to my mind,
_1968_
_IVM/cmeno/_
_Dimak"""i_
1188 SUPREME COURT REPORT [1958]
shows that it was not the intention to confine the words "any
person" to workmen in employment or discharged.
_Tea E<taJ•_ But it is said that the words "any person" were left in
_p/,._ Ma~,.,...,.1 _of_ the Act because it was intended to include not only workmen
_Dimakuchi_ in employment and dismissed workmen but also persons
_Tea_ _E•tate_ who in future become workmen. It is said that, that this is
_BirkarJ._ so appears from s. 18 of the Act. I shali presently consider
this section but I desire to observe now that this argument
much weakens the argument noticed in the preceding paragraph, for if the words "any person" were used so that persons
who in future become workmen might be included in them,
they could not have been used to avoid such dismissed workmen as were not workmen as defined in the Act being excluded from them. It seems to me that if it is argued that
the words "any person" were used so that persons who in
future become workmen may be included in them, it cannot
be argued that those words were used instead of the word
"workman" because it was intended to include within them
certain dismissed workmen who were not workmen within
the definition of that term in the Act as it stood in 1953.
Coming now to s. 18 it is in these terms:
A settlemem arrived at in the course of conciliation proceedings under this Act or an a ward which has become enforceable sha II be binding on
( a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board or Tribunal, as the case may be, records the opinion that they were
so summoned without proper cause;
(c) where a party referred to in clause (a) or clause (b)
is an employer, his heirs, successors or assigns in respect of
the establishment to which the dispute relates;
(d) where a party roferred to in clause (a) or clause (b)
is composed of workmen, all persons who were employed in
the establishment or part of the establishment, as the case
may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in
that establishment or part.
S.C.R. SUPREME COURT REPORTS 1189
I entirely fail to see how that section assists at all in finding _1958_
out who were meant to be included in the words "any per- _Workmen_ _of_
son". Is it to be said that s. l8(d) by making the award -';;:.::;:
binding on those who become in future employed in the - v,
km - d' h h _The Management of_
estab lis [. h ] ment as wor en, 1n icates t at sue persons are _Dimakuchi_
treated in the same. way as workmen in actual employment _Tea Estate_
and therefore it must have been iq.tended to include them _Sirkar_ _J__
within the words "any person" along with present and dismissed workmen. I am wholly unable to agree. The object
of s. 18(d) is quite clear. The Act is intended to compose
a dispute between an employer and his workmen by a settlement or an award brought about by the machinery provided
in it and the period during which an award or a settlement
is to remain in. force is also provided. The idea behind s. 18
is that whoever takes up appointment as a workman in the
establishment to which the dispute relates · during the time
when the award or settlement is in force, would be bound
by it. If it were not so, the award or settlement would have
little effect in settling a dispute, for any newly recruited work·
men could again raise the dispute. Any one - having any
experience of industries knows that workmen are largely a
shifting population and that the need for replacement of the
workmen leaving and for addition to the strength of the
workmen employed, is not infrequent. To meet the exigency arising from this need and to make the award or settlement effective it was necessary to enact s. 18(d). Its object
was not to place workmen in em]11.oyment and, workmen
recruited in future in the same position for all purposes of
the Act. On the. same reasoning, in view of s. 18(a), it has
to be said that it was the intention of the Act to give the
heirs, successors or assignees of an employer the same position for all purposes of the Act as that of the employer. But
that would be absurd. Section 18(d) deals with a person
who in future becomes employed. The section does
not say employed as a workman but I will assume
that that is what is meant. I do not understand
what is meant by saying that such a person is within the
words "any person" in s. 2(k). What is the point of time that
1190 SUPREME COURT REPORTS [1958]
_1968_ has to be considered? If it is after he has become employed,
_Workma" of_ then he is a workman and admittedly within the words "any
_DiflllJh<hi_ person". Is it to be said that before such employment also
_TCJJvEBlate_ he is within the meaning of those words. But it is difficult to
_Th• Ma':fi:• of_ follow this. It is conceivable that any person whatsoever
~ima i may in future be employed as a workman for there is noth<• _EBla••_ ing in the quality of a human being that marks him out as a
_Birkar_ _J._ workman. In this way the words "any person" would include
all. That, however, is not meant, for it will defeat the very
argument based on s. 18(d). Is it to be said then, only such
future workmen are meant as apply for jobs as such? But
the section makes no reference to such people at all and can
not therafore be of any assistance in showing that it was
intended that such applicants would be included within the
words "any person". I am therefore wholly unable to accept
the argument that s. 18(d) shows that future workmen were
intended to be included within the words "any person". I
wish also to say this. Assume that s. 18(d) shows that it was
intended to include within the words "any person" one who
in future becomes a workman. But where is the reason for
saying that the words do not also include others? Section
18 provides none.
I proceed now to discuss the reasons advanced for restricting the generality of the words "any person". They were·
put as follows :
l. In certain sections of the Act the words "any person"
have been used but there the rwerence is to worknien, and
therefore iri s. 2(k) the words "any person" should mean persons of the workman class.
2. The scheme anlt the purpose of the Act generally
and the object of .the Act specially being to benefit workmen, the words "any person" should be confined to people
of the workman class.
3. The word "dispute" in s. 2(k) itself indicates that the
person raising the dispute must be interested in the dispute
and therefore since the dispute must concern the employment, non-employment, terms of employment or the conditions of labour of a person, that person must be of the workman class.
S.C.R. SUPREME COURT REPORTS 1191
The first reason, then, is that in certain sections, the _19.;t_
Act uses the words "any person". I will assume that by the
use of these words only workmen are intended to be referred
to in these sections. But the question arises why is such
intention to be inferred? Clearly, because the context requires it. I will refer to some of these sections to make my
point clear. Section 2(1) defines a lock-out as "the closing
of a place of employment, or the suspension of work, or the
refusal by the employer to continue to employ any number
of persons employed by him". Section 2(q) defines a strike
as "a cessation of work by a body of persons employed in
any industry acting in combination, or a concerted refusal,
or a refusal under a common understanding, of any number ·
_Workmen_ _of_
_Dimakuch>_
_Pea Eslate_
v.
_7'1•e_ _Management of_
_Di11111kuc1'i_
_Pea Eslate_
_Sirlcar_ _j,_
of persons who are or have been so employed to continue to
work or to accept employment." Lock-outs and strikes are
dealt with in ss. 22. 23 and 24 of the Act. Section 22(2)
says that no employer carrying on any public utility service
shall lock-out any of his workmen except on certain condi~
tions mentioned in the section. Section 23 says that no employer of any workman employed in any industrial establish
ment shall declare a lock-out during the periods mentioned
##### in the section. Section 24 states that a strike or a lock-out
shall be illegal if commenced or declared in contravention of
s. 22 or s. 23. The definitions of lock-outs and strikes are
for the purposes of ss. 22, 23 and 24. There are other sections
in which lock-outs and strikes are mentioned but they make
no difference for our present purpose. The lock-outs and
strikes dealt with in ss. 22(2), 23 and 24 are lock-outs of and
strikes by. workmen. It may hence be said that in s. 2(1)
and (q1 by the word person a workman is meant. Therefore
it is these sections, viz., 22(2), 23 and 24, which show what the
meaning of the word 'person' in the definitions is. I would
like lo point out in passing that s. 22(1) says that no person
employed in a public utility service shall go on strike except on
certain conditions and there is nothing in the Act to show
that the word "person" in s. 22(1) means only a workman.
Proceedin~ however with the· point we are concerned with,
1192 SUPREME COURT REPORTS [1958]
_1958_ the question is, is there any provision in the Act which
_wo,kman of_ would show that the words "any person" in s. 2(k) were
1;.':::'l:!'~ meant only to refer to persons of the workman class. I have
v. not been able to find any and none has been pointed out.
_**Tli.e**_ _**Management**_ _of_, .
_Dimakuchi_ Therefore the fact that m s. 2, sub-ss. (]) and (q) the word
_Tw Estak_ ''persons" means workmen is no reason for concluding that
_Sarkar J._ the same word must be given the same restricted meaing in s.
2(k). The position with regard to s. 33A, in which the word
ernploye~ has to be read as meaning a workman because of
s. 33, is the same and does not require to be dealt with specially. I may add that if it has tq be said that because in
certain other sections the word "person" has to be understood as referring to a workman only, in s. 2(k) also the same
word must have the same meaning, then we have to read the
words "any person" in s. 2(k) as meaning only a workman
as defined in the Act. This however is not the contention
of the learned counsel for the respondent. I may further say
that it was not contended that the word "person" in s. 2,
sub-ss. (1) and (q) and the word employee in s. 33A has to
be read as including not only a workman in employment but
also a discharged workman and a person who in future becomes a workman, and it seems to me that such a contention
would not have been possible.
I proceed now to deal with the second group of reasons
based on the object and scheme of the Act. It is said that the
Act makes a distinction between employees who are workmen and all other employees, and that the focus of the Act
is on workmen and it was intended mainly for them. This
was the view taken in _United_ _Commercial Bank Ltd._ v.
_Kedar Nath Gupta(')._ I will assume all this. It may also be
true that the Act is not much concerned with employees
other than workmen. But I am unable to see that all this
is any reason for holding that the words "any person" must
mean a person of the workman class. The d(lfinition in s.
2(k) would be fully concerned with workmen however the
(') [1952] 1 L.L.J. 782.
S.C.R. SUPREME COURT REPORTS 1193
words "any person" in it may be understood because the dis- _1968_
pute will be one to which a workman is a party. Is it to be _Workmen of_
said that the Act would cease to be mten e · d d f or wor km en _Dimakuchi Tea E/JlaU_
or the focus of it displaced from workmen or that the distinc- v.
. . _The Management of_
t10n between workmen and other· employees would vamsh _Dimakuehi_
if a dispute relating to the dismissal of one who is not a _ea Estate_
workman is held to be an industrial dispute, even though _Sarkar_ _J._
the dispute is one to which workmen are parties? I am unable to subscribe to such art argument. But it is said that in
such a case the workmen would not be interested in the dispute, the dispute would not really be with them and they would
not be in any real sense of the word parties to it. So put
the argument comes under the last of the three reasons earlier stated, namely, that in order that there may be an indus
trial· dispute the workmen must be interested in that dispute.
This contention I will consider later. It is also said in the
_United Commercial Bank Case(')_ that the main purpose of
the Act is to adjust the relations between employers and
workmen by securing for the latter the benefit provided by
the Act. It is really another way of saying that the workmen must be interested in the dispute, for if they are not
interested no benefit .can accrue to them from an adjustment
o1 it. This, as I have said, I will discuss. later.
It is also said that the Act is for the benefit of workmen
and therefore if a dispute concerning a person who is not a
workman, is an industrial dispute capable of being resolved by
adjudication under the Act, then, if the award goes in favour
of the workmen raising it, a benefit would result to a person
whom the Act did not intend to .benefit. So it is said, an industrial dispute cannot be a dispute concerning one who is
not a workman. But the benefit resulting to the person in
such a case would only be incidental. The workmen themselves would also be benefited by it at the same time. To
adopt this argument would be to deprive the workmen of
this benefit and there is no justification for doing so. How
the workmen would be benefited would appear later when I
discuss the question of the workmen's interest in the dispute.
( [1] )[1952] 1 **L.L.J.** 782.·
L/P(fl)3SCI-ll
ll94 SUPREME COURT REPORTS (1958J
_1968_ I will show later that if the workmen were not interested in
_ll'Mkmeno/_ the dispute so that they could get no benefit under it, there
_Di....w.hi_ would be no. reference by the Government and there would
_'1'et(E81Dl<_
... be no benefit to a person who was not a workman. Further.
_'1'1"'_ _AfJt::::s::::M' of_ I am unable to agree that the Act is intended to confer
_'1'"' Estate_ benefit on workmen. Its object is admitted by all to pre
_Barkor_ _J._ serve industrial peace. It may confer some benefit on workmen but at the same time it takes away their power and
right to strike and puts them under a disadvantage.
We were referred' to the note of dissent to the award of
the majority of tbe _All India Industrial Tribunal (Bank Dis-_
_putes),_ dated July 31, 1950. This note was by Mr. Chandra
Sekhar Aiyer who later became a Judge of this Court. In
that note he expressed the view that "any person" in s. 2(k)
means any one who belongs to 'the employer class or the
workmen class and the cases in whose favour or against
whom, can be said to be adequately represented by the
group or category of persons to which he belongs. I have
already stated my difficulties in agreeing that the words "any
person" mean only persons of the workman class. I will
presently deal with the reasoning on which Mr. Aiyer bases
his view but I wish to say now that it seems to me that the
words "any person" cannot refer to anyone belonging to the
employer class becl'use the dispute must be in connection
with the employment, non-employment, or terms of employment or the conditions of labour of any person and it is not
possible to conceive of any such thing in connection with a
person in his capacity as an employer.
Mr. Aiyar first stated that a necessary limitation to be
put on the words "any person" is that the person should have
something to do with the particular establishment where the
dispute has cropped up. He said that it could not be that
the workmen in Bank A could raise a valid and legitimate
industrial dispute with their employer because some one in
Bank B had not been treated well by his employer. Assume
this is so. But it does not follow that an industrial dispute
must be one concerning a person of the workman class alone,
for a person having something to do with an establishment
S.C.R. SUPREME COURT REPORT 1195
need not necessarily belong to the workman class. An officer _1968_
in an establishment where the dispute crops up would be as _Wor'lerMnoJ_
much a person having something to do with that establish· ~!='11:'::
ment as a workman there and, therefore, even assuming that v.
the limitation suggested by Mr. Aiyar applies, there would _The ff.':::fueri;:.m_ _of_
be nothing in it to prevent an industrial dispute concerning _Pea Ealale_
him arising. The question is not whether the person con- _SarkarJ._
cerning whom an industrial dispute may arise. has to be
employed in the establishment where the dispute arises, but
whether he must belong to what has been called the workman class. The decis~on of the former question which has not
arisen in ttis case, is of no help in deciding the question that
has arisen and I do not therefore feel called upon to express
any opinion with regard to it.
Mr. Aiyar next referred to a case where workmen of a
Bank raise a dispute with that Bank about an employee of
the Bank who was not ai workman, for example an officer
who had been dismissed. He assumed that the Bank and
the officer had no dispute as between themselves. In his
view, if in such a case the dispute was an industrial dispute
and could be made the subject matter of an award by an
Industrial Tribunal, the award would not be binding on the
officer because he had no concern with the dispute. According to him, it would be absurd to suggest that the Bank was
under an obligation to give effect to the award. Therefore,
in his view, such a dispute would not be an industrial dispute. Now, whether the award would be binding on the
officer or not, would depend on whether he could be made
a party to the dispute under s. 18(b). It is not necessary to
discuss that question now. But assume that the award was
not binding on the officer. Why should not the Bank be
under an obligation to give effect to the award in so far as
it lay in its power to do so? If the dispute was an industrial
dispute; the award would be binding on the Bank and it
must give effect to it. Then the argument comes to this that
the dispute is not an industrial dispute because the award
1196 SUPREl\iE COURT REPORTS [1958]
_1968_ would not, as assumed, be binding on the officer concerning
_W""k""'••f_ whom the dispute arose. I cannot accept this view. Take
_**Dimaltui/ti**_ h" A 1 - _TG<t_ _Esia"'_ t is case. n emp oyer d1sm1sses five of his workmen. The
v. workmen dismissed make no grievance. Three months later
_**T/1e .1.,!ana(fement of**_ . . . .
_1Jimakuc1'i_ the employer d1sm1sses twenty five more and again neither
_Tea Esia"'_ the dismissed workmen nor the workmen in employment
_Sarkar_ _J._ raise any dispute. Two months after the second dismissal the
employer dismisses fifty workmen. These workmen make no
complaint and leave. The workmen in employment now
begin to take notice of the dismissals and think that the employer is acting on a set policy and raise a dispute about all
the dismissals. The dispute is then referred for adjudication
and an award is made in favour of the workmen. Assume
that all the dismissed workmen could be made parties to the
adjudication proceedings but for one reason or another, were
not made parties. This award would· not be binding on the
dismissed workmen and certainly not on those who had been
dismissed on the two earlier occasions. They would not be
covered by any of the provisions of s. 18. Is it to be said
that for that reason the dispute is not an industrial dispute?
I am wholly unable to agree. Such a dispute would be entirely within the definition even on the assumption that the
words "any person" mean only persons of the workman class.
It follows, therefore, that in order to decide whether a dispute is or is not an industrial dispute, the question whether
the award would be binding on tbe person concerning whose
employment the dispute was raised, is no test. I therefore
find nothing in the minute of dissent of Mr. Aiyar to justify
the putting of any restriction on the plain meaning of the
words "any person" in s. 2(k). As I shall show later, if certain disputes concerning foremen who are not workmen and
who I will assnme would not be bound by the award, are not
to be industrial disputes, the object of the Act would clearly
be defeated. I cannot therefore agree that the fact that an
award is not binding on one affords a reason for holding that
there cannot be an industrial dispute concerning him.
The matter was put from another point of view. It is
S.C.R. SUPREME COURT REPORTS 1197
~aid that if workmen could raise an industrial dispute with _1958_
their employer concerning the salary of a manager, who wa~ _Wurk"ie" of_
- h _Dimakucki_
not a workman, an d an awar was ma e 1rectmg t e d d d [. ] em- _Tea_ _Bstaie_
ployer to pay a smaller salary to the manager, the employer v.,,
_Tlie_ _Manageme1tt o_ _1_
would be bound by the award but not the manager. Then _Dimakuchi_
it is said, suppose the employer had made a contract with _Tea E•tat•_
the manager to employ him at the higher salary for a number _SarkarJ._
of years. It is pointed out that in such a case the awarr·
being binding on the employer, he would be compelled to
commit a breach of his contract and be liable to the manager
in damages. It is said that it could not have been the intention of the Act to produce a result whereby an employer
would become liable in damages and therefore such a dispute cannot be an industrial dispute. But I do not agree
that the employer would be liable in damages. The award
being binding on him under the Act, the performance of his
contract with the manager would become unlawful after the
award and therefore void under s. 56 of the Contract Act.
The employer would not, by carrying out the award, be committing any breach of contract nor would he be liable in
damages. To hold that the dispute contemplated is an industrial dispute, would not produc.:: the absurd result suggestecl. The reason suggested for not holding that dispute to
be an industrial dispute, therefore, fails.
Take another case. Suppose there was a dispute between two employers A and B concerning the wage to be
paid by B to his workmen, A complaining that B was paying
too high wages, and the dispute was referred for adjudication by a Tribunal and an award was made that B should
reduce the wages of his workmen. Assume the workmen
were not parties to the dispute and were not made parties
even if it was possible to do so. The award would not be
binding on the workmen concerned under s. 18. None the
less it cannot be said that the dispute was not an industrial
dispute. It completely satisfies the definition of an industrial dispute even on the basis that the words 'any persons"
mean only workmen. So again it would appear that the
1198 SUPREME COURT REPORTS (1958]
_1968_
_1968_ words may include one on whom the award would not be
_**Workmen.of**_ binding.
_**Dim.akuchi**_
_**Tea**_ _**Es'416**_
v. I may add here, though I do not propose to decide the
_Th<_ .M~nagem•'!' _o/_ question it being wholly unnecessary for the case before us
_**D•makucln**_ . '
_Tea EBlaJ•_ that 1t seems to me that when a dispute concerns a person whe_80,,,,,,_ _J._ ther a workman or not, who is not a party to the dispute, he
can, under s. 18(b), be properly made a party to appear in the
proceedings arising out of that dispute. I find nothing in
that section to prevent such a course being adopted. If he
is made a party, there is no doubt that the decision, whichever way it went, would be most satisfactory to all concerned. If this is the right view, then all arguments based on the
fact that the words "any person" can only include one on
whom the award would be binding would disappear, for on
being made a party the award would be binding on that
person. It would on the contrary show that it was intended
that the words "any person" should include one who is not
a party to the dispute, and therefore not in the workman
class.
An argument based on s. 33 was also advanced. That
is this. The section provides that during the pendency of
conciliation proceedings or proceedings before a Tribunal in
respect of an industrial dispute the conditions of service of
workmen concerned in the dispute cannot be changed by the
employer, nor such workmen dismissed or otherwise punished
by him except with the permission of the Board or Tribunal.
It is said that this section shows that it was intended to protect only workmen and therefore the words "any person" in
s. 2(k) should be understood as meaning workmen only. I do
not follow this argument at all. Section 33 gives protection
to workmen concerned in the dispute which can only mean
workmen who are parties to the dispute. A workman concerning whom a dispute arises may or may n:ot be a party
to the dispute. The object of the section is clear. If workmen could be punished during the pendency of the proceedings, then no workman would raise a dispute or want to take
part in the proceedings under the Act concerned with its
adjudication. Further, such punishment would surely give
S.C.R. SUPREME COURT REPORTS 1199
rise to another dispute. AU this would defeat the entire
object of the Act which is to compose disputes by settlement
or adjudication. Section 33 gives protection to workmen who
are parties · to the dispute and does not purport to concern
itself with the person concerning whom the dispute arises.
Such being the position, the section can throw no light on
the meaning of the words "any person" in s. 2(k). Suppose a
workman was dismissed and thereupon a dispute arose between the employer and the other workmen in employment
concerning such dismissal. Such a dispute would be undoubtedly an industrial dispute. And it is none the less so,
though no protection can be given to the dismissed workman
under s. 33 for he is already dismissed.
_1968_
_Workmen of_
_.Dima!tucM_
_TtaEetau_
v.
_The Managemind_ _tf_
_Dima!tucM_
_P.aEatala_
_Sarkar J._
- Reference was also made to s. 36 which provides for the
representation of the parties to a dispute in a proceeding
arising under the Act out of such dispute. Sub-section (1) of
s. 36 provides how a workman, who is a party, shall be represented and sub-section (2) provides bow an employer who is
likewise a party, shall be represented. The section does not
provide for representation of any other person. It is said
that this shows that the words "any person" must mean only.
a workman, because they must mean an employee, past,
present or future and only such employees as are workmen
can be parties to the dispute under the definitibn. I am
unable to agree. Section 36 provides for the representation
of workmen besides employers and of no one else, because
no one but a party need be represented in the proceedings
and under the definition, a party to an industrial dispute
must either be an employer or a workman. This section has
nothing to do with the person concerning whom the dispute
arises. If, however, he is also a party to the dispute, then
the section makes a provision for his representation in the
proceedings arising out of that dispute as such a party and
not as one concerning whom the dispute has arisen. I have
. earlier said that there may be a case in which though the
person concerning whom the dispute arises is a workman,
still he may not be a party to it. The fact that besides an
1200 SUPREl\fE COURT REPORTS (1968}
_1958_ employer, the Act makes provision for the representation in
_Workmeno/_ the proceedings arising out of an industrial dispute of work
1i-~-;a;::;:;; men alone does not show that an industrial dispute can only
v. arise concerning a workman. In my view, therefore s. 36
_Ph<Managemtnto/_ . f . . fi d" h . f h d
_Dim•l:uchi_ 1s - no asst.stance m n mg out t e meamng o t e wor s
_**PeaE#alt**_ **"any** **person".**
_Sarkar J,_
I come now to the last of the reasons advanced for restricting the natural meaning of the words "any person". It
is said that the word dispute in the definition shows that the
person raising it must have an interest in it and therefore
since the dispute must concern the employment, non-employment, terms of employment or conditions of labour of a
person that person must be a workman. I confess I do not
follow the reasoning. It is said that this is the view expressed by a Bench of the Bombay High Court consisting of
Chagla C. J. and Shah J. in _Narendra Kumar Sen_ v. _The_
_All_ _India Industrial Disputes (Labour Appellate) Tribunal(')._
I have some difficulty in seeing that this is the view expressed
in that case. What happened there was that certain workmen raised a dispute against their employer which includ·ed
a demand for fixing scales of pay and for bonus not only
for themselves but also for the foremen and divisional heads
under the same employers who ·were not workmen and this
dispute had been referred by the Government for adjudication by the Industrial Tribunal. The Tribunal refused to adjudicate the dispute in so far as it concerned the pay and
bonus of persons who were not workmen as, according to it,
to this extent it was not an industrial dispute. The workmen then applied to the High Court for a writ directing the
Tribunal to decide the dispute relating to the claims made
for the pay and bonus of the persons who were not workmen.
The- High Court held that the dispute was not an industrial
dispute and refused the writ. Chagla C. J. expressed himself
in these words (p. 130):
"A controversy which is connected with the employment or non-employment or the terms of employment or
with the conditions of labour is an industrial controversy.
But it is not enough that it should be an industrial contro
(') (1953) 55 Born. L.R. 125.
S.C.R. SUPREME COURT REPORTS 1201
versy; it must be a dispute; and in my opinion it is not every _1958_
controversy or every difference of opinion between work- _Workmen of_
men and employers which is constituted a ispute or 1 · d' d' ff er- _Dima1'uchi Tea E8tate_
ence within the meaning of s. 2(k). A workman may have v.
t 'd l · l d'ff eo og1ca 1 erences wit · h h' is emp oyer; a wor man may l k _The Managcmenl Dimal-uchi_ _ot_
feel sympathetic consideration for an employee in his own in- _Tea Estate_
dustry gr in other industry; a workman may feel seriously _Sarkar_ _J._
agitated about the conditions of labour outside our own
country; but it is absurd to suggest that any of these factors
would entitle a workman to raise an industrial dispute within
the meaning of s. 2(k). The dispute contemplated by s.
2(k) is a controversy in which the workman is directly and
substantially interested. It must also be a grievance felt by
the workman which the employer is in a position to remedy.
Both the conditions must be present; it. must be a grievance
of the workman himself; it must be a grievance which the
employer as an employer is in a position to remedy or set
right."
Then he said \p. 131):
"It is only primarily in their own employment, in their
own terms of employment, in their own conditions of labour
that wcrkmen are interested and it is with regard these that
they are entitled to agitate by means of raising an industrial
dispute and getting it referred to a Tribunal by the Govern
ment under s. 10."
I find some difficulty in accepting all that the learned
Chief Justice said. But assume he is right. How does it
follow that because an industrial dispute is one in which
workmen must be interested it must be concerning themselves? I do not see that it does. Neither do I find Chagla
C. J. saying so. In the case before him the dispute concerned persons who were not workmen and he found on the
facts before him that the workmen were not interested in
that dispute and thereupon held that the dispute was not an
industrial dispute. But that is not saying that an industrial
dispute can only be a dispute concerning workmen. Even
the observations that I have read .from p. 131 of the report
would not support this view. It is not difficult to conceive
1202 SUPRE~IE COURT REPORTS [1958]
_1958_
_**Workmen**_ _**oJ**_
of a dispute concerning the employment of a person who is
not a workman which at the same time is one which affects
n;~:~~~ the conditions of labour or terms of employment of the
v. workmen themselves. I shall give examples of such disputes
1'Ae _Manag.,..nt of_ _DimaL.,,.,.i_ 1 ater. Wh at I WIS · h now to pomt out · IS · h t at even 1 "f an m · d us
_Ten Estai._ trial dispute has to be one in which workmen are interested,
_Sarkar_ _J._ that would be no reason for saying that it can only be a dispute concerning workmen and that therefore the words "any
person" in s. 2(k) must mean only workmen. I also think
it right to say now that this argument is not really open to
the respondent, for the contention of the learned counsel for
the respondent is, as I have earlier stated, that the words
"any person" do not mean a workman only but mean all
persons of the workman class, or past, present and future
workmen. Now I find nothing in the judgment of Chagla
C. J. to show that workmen can be interested in the workman class or in past or future workmen. On the contrary
he says that workmen are interested primarily-and by the
word "primarily" I think he means, directly and substantially
-only in their own employment, terms of employment or
conditions of labour. Reliance on the judgment of the
Bombay High Court will therefore land the respondent in
contradiction.
I find great difficulty in saying that it is a condition of
the existence of an industrial dispute that workmen must be
interested· in it. The Act does not say so. But it is .said
that the word dispute in the definition implies it. No doubt.
one does not raise a dispute unless he is interested in it, and
as the Act must be taken to have in contemplation normal
men it must have assumed that workmen will not raise a dis·pute unless they are interested in it. But that is not to my
mind saying that it i~ a condition of an industrial dispute as
contemplated by the Act that workmen must be interested in
it. So to hold would, in my opinion, lead to grave difficulties and might even result in defeating the object of the Act.
This I will endeavour to show presently. What I have to say
will also show that even assuming that an industrial dispute
S.C.R. SUPREME COURT REPORTS 1203
is one in which workmen have to be interested, the dispute _1968_
that we have in this case concerning Dr. Banerjee's dismissal _Workmenof_
is an industrial dispute for the appellant worlanen are ~~r;;:;;:;;
directly and substantially interested in it. v.
_The Managemenl of_
The question that first strikes me, is what is the interest _Dimakuehi_
km h ? I fi d . . 'bl d fi _TeaEstate_
w h1c [. h ] wor en must ave. n 1t 1mposs1 e to e ne
that interest. If it cannot be defined, it cannot of course be _Sarkar_ _J._
made a condition of the existence of an industrial dispute,
for we would then never know what an industrial dispute is.
Now, "interest", as we understand that word in courts of law,
means the well-known concepts of proprietary interest or
interest in other recognised civil rights. Outside these the
matter becomes completely at large and well nigh impossible
·Of definition. To say that the interest that the -workmen
must have is one of the well-known kinds of interest mentioned above is, to my mind, to make the Act largely infructuous. We cannot lose sight of the fact that the Act is not
dealing with interest as ordinarily understood. It cannot
be kept in mind too wel! that the Act is dealing with a new
concept, namely, that of the relation between employer and
·employed or to put it more significantly, between capital
.and labour, a concept which is undergoing a fast and elemental change from day to day. The numerous and radical
amendments made in tne Act since it came on the Statute
book not so long ago, testify to the fast changing nature of
the concept. Bearing all these things in inind, I find it almost impossible to define adequately or with any usefulness
.an interest which will serve the purposes of the Act. I feel
that an attempt to do so will introduce a rigidity which will
work harm and no good. Nor does it, to my mind, in any
manner help to define such interest by calling it direct and
:Substantial.
I will illustrate the difficulty that I feel by an example
or two. Suppose a workman was dismissed by the employer
and the other workmen raised a dispute about it. Such a
dispute comes completely within the definition even assuming that the words "any person" only refer to persons of the
1204 SUPREME COURT REPORTS [1958]
_1958_ workman class, as the respondent contends. There is there
_Workmen of_ fore no doubt that such a dispute is an industrial dispute.
1?~':";:;! The question then is what interest have the disputing work
v. men in the reinstatement of the dismissed workman if they
_'l'he_ _Management of_ h . ? . .
_Dimakuchi_ must ave an interest. The reinstatement would not in any
_Tea Esiate_ way improve their financial condition or otherwise enhance
_Sarl:ar_ _J._ any interest of theirs in any sense of the term, in common
use. The only interest that I can think of the workmen
having for themselves in such a dispute is the solidarity. of
labour. It is only this that if the same thing happens to any
one of them, the others would rally round and by taking up
his cause prevent the dismissal. Apart from the Act how
would the workmen have prevented the dismissal from taking
effect? They would have, if they wanted to prevent the
dismissal, gone on strike and thereby tried to force the employer's hands not to give effect to 'the dismissal. That
would have destroyed the industrial peace which the object
of the Act is to preserve. It is in order to achieve this object that the Act recognises this dispute as an industrial dispute and provides for its settlement by the methods of
conciliation or adjudication contained in it and preserves the
industrial peace by preventing the parties being left to their
own devices. If what I have described as solidarity of
labour is to be considered as direct and substantial interest
for the purposes of an industrial dispute, as I conceive is not
disputed by any one, then it wilt appear that we have embarked on a new concept of interest. I will now take another case which in regard to interest is the same as the previous one. Suppose the employer engages some workmen
at a low rate of wages and the other workmen raise a dispute demanding that the wages of these low paid workmen
be increased. This case would be completely within the
definition of an industrial dispute even according to the most
restricted meaning that may be put upon the words "any
person", namely that they refer only to workmen as defined
in the Act, because the dispute concerns the terms of employment of such a workman. So this has admittedly to be
S.C.R. SUPREME COURT REPORTS 1205
held to be an industrial dispute. What then is the interest _1958_
of the workmen in this dispute? The increase in the wages _Workmen of_
- l _DimakucM_
claimed would not in any manner improve the financia con- _Tea Estale_
dition of the disputing workmen, nor serve any of their _T'_ _M_ v.,,
. _tie_ _anagemenl o1_
interest as ordinarily understood. It would however help _Dimakucl!i_
- - h h · d _Tea Estate_
t e wor men m seemg t at t elf own wages h k were not re need by preventing the employer from being able to engage _Barkar_ _J._
any low paid workman at all. .Apart from this I can think
of no other interest that the disputing workmen may have
in the dispute. If therefore it is essential that the disputing
workmen must have an interest in the dispute, this must be
that interest, for, as already stated, the dispute is undoubtedly an 'industrial dispute.
If this is sufficient interest to constitute an industrial
dispute I fail to see why the workmen have no sufficient
interest in a dispute in which they claim that a foreman who
is particularly rude and brutal in his behaviour should be
removed and they should have a more human foreman. This
is surely a matter in which the workmen raising the dispute
have a personal and immediate interest and not, as in the
last case, an interest in the prevention of something happening in future, which conceivably may never happen at all.
Such an interest is plainly nearer to the ordinary kinds of
interest than the interest in solidarity of labour or in the
prevention of future harm which in the preceding paragraphs
have been found to be sufficient to sustain an industrial dispute. The dispute last imagined would undoubtedly be an
industrial dispute if the foreman was a workman for then
it would be entirely within the definition of an industrial
dispute. · Now suppose the foreman was not a workman.
Can it be said that then the dispute would not be an industrial dispute? Would the interest of the workmen in the dispute be any the less or in any way different because the
foreman whose dismissal was demanded was not a workman?
I conceive it impossible to say so. Therefore if interest is
the test, the dispute that I have imagined would have to be
_1958_
_**Workmen. of**_
1206 SUPREME COURT REPORTS [1958J
held to be an industrial dispute whether or not the foreman
concerned was a workman.
~;:"i Now assume that the dispute did not arise out of a
_Th<_ _Ma,.;;;..,,111_ _of_ demand for the dismissal of a foreman but against his dis
Dimakuchi missal on the ground that he was a particularly kind and
_TeaEatate_ h . d h km
sympat et1c man an t e wor en were happy to work
_**Sarkar**_ _**J.**_ under him. In such a case the interest of the workmen in
the dispute would be the same as their interest in the dispute
demanding the foreman's dismissal. They would be demanding his reinstatement in their own interest; they would be
demanding it to make sure that their work would be easy
and smooth and that they would be happy in the discharge
of it Such a dispute therefore also has to be held to be an
industrial dispute, and as in the last case, it would make no
difference for this purpose· that the foreman concerned was
not a workman.
If this is right, as I think it is, then similarly the dispute
concerning the dismissal of Dr. Banerjee would be an industrial dispute for the workmen have sufficient personal and
immediate interest in seeing that they have a doctor of their
liking to look after them. It is indeed the case of the workmen that by his devotion to duty and good behaviour Or.
Banerjee became very popular with the workmen. Whether
the contention of the workmen is justified or not and whether
it would be upheld by the Tribunal or not, are who!Jy different matters and do not affect the question whether in an
industrial dispute the workmen must l)e interested. It is
enough to say that I find no reason to think that the appel·
lant had no interest in the dispute concerning the dismissal
of Dr. Banerjee. Therefore, I would hold that even if it is
necessary to constitute an industrial dispute that workmen
must have an interest in it, the dispute before us is one in
which the appellants' have a direct and substantial interest
and it is an industrial dispute.
For myself however I would not make the interest of
the workmen in the dispute a condition of the existence of
an industrial dispute. The Act does not do so. I repeat that
S.C.R. SUPREME COURT REPORTS 1207
it would be impossible to define such interest. In my view,
such a condition would defeat the object of the Act. It is
said that otherwise the workmen would be able to raise disputes in which they were not interested. Supposing they did,
the Government is not bound ·to refer such disputes for ad
)~dication. Take a concrete case. Suppose the workmen
raise a dispute that the manager of the concern should have
a higher pay. It would be for the Government to decide
whether the dispute should be referred for adjudication or
not. The Government is not bound to refer. Now, how is
the Government to decide? That must depend on the
Government's evaluation of the situation. That this is the
intention is clear from the object that the Act has in view.
I will here read from the judgment of the Federal Court in
_Western India Automobile Association case(')_ what the object of the Act is. It was said at pp. 331-332.
_1968_
_Workmen of_
_DimaL'UChi_
_Tea_ _Estate_
v.
_Tke Managem•11t_ _of_
_Dimal,ucki_
_TeaEalale_
_SarkarJ._
"We shall next examine the Act to determine its scope.
The Act is stated in the preamble to be one providing for the
investigation and settlement of industrial disputes. Any
industrial dispute as defined by the Act may be reported to
Government who may take such· steps as seem to it expedient for promoting conciliation or settlement. It may refer
it to an Industrial Court for advice or it may refer it to an
Industrial Tribunal for adjudication. The legislation substitutes for free bargaining between the parties a binding
award by an impartial tribunal. Now, in many cases an
industrial dispute starts with the making of number of de.
mands by workmen. If the demands are not acceptable to
the employer-and that is what often happens-it results in
a dismissal of the leaders and eventually in a strike. No
machinery for reconciliation and settlement of such disputes
can be considered effective unless it provides within its scope
a solution for cases of employees who are dismissed in such
conditions and who are usually the first victims in an industrial dispute. If reinstatement of such persons cannot be
( [1] ) [1949] F.C.R. 321.
_1958_
_Workmen oj_
_Di11lllkuchi_
_Tea Estate_
1208 SUPREi\fE COURT REPORTS [1958]
brought about by conciliation or adjudication, it is difficult,
if not impossible, in many cases to restore industrial peace
which is the object of the legislation" ..
_Tl1'_ _Man!;'""'"' of_ This is the view of the object of the Act that is accepted
!j:,_'"'!;~'(.~;• by all including the decisions in _Narendra Kumar Sen's_
_case(')_ and _United Commercial Bank_ _case(')._ In _Narendra_
_Sarkar J,_
_Kumar_ _Sen's case(')_ Chagla C. J. said· at p. 130:
"The Industrial Disputes Act was enacted, as Mr. Desai
rightly says, to bring about industrial peace in the country,
to avoid conflicts between employers and labourers, to prevent strikes and lock-outs, to see that the production in our
country does not suffer by reason of constant and continuous
labour troubles".
Therefore in deciding whether to refer or not, the Government is to be guided by the question whether the dispute is
such as to disturb the industrial peace and hamper production. I find· no difficulty in thinking that the Government
would realise that there was no risk of the peace being disturbed or production being hampered by the dispute raised
by the workmen demanding a higher salary for the manager,
for being normal men the workmen were not likely to suffer
the privations of a strike to enforce their demand for a cause
of this nature. The Government must be left to decide this
primary question for itself, and therefore the Government
must be left to decide in each case whether the workmen
had sufficient interest in the dispute. If Government thought
that the workmen had no such interest as would lead them
to disturb industrial peace by strike or otherwise if the dispute was not ended, the Government might not in its discretion refer the dispute for adjudication by a tribunal. It
must be left free to decide as it thinks best in the interest of
the country. It is not for the Court to lay down rigid principles of interest which interfere with the Government's discretion, for that might defeat the object of the Act. If the
Government feels that the dispute is such that it might lead
to the disruption of industrial peace, it is the policy of the
Act that it should exercise its powers under it to prevent
(') (1953) 55 Born. L.R. 125. (') [1962] 1 L.L.J. 782.
S.C.R. SUPREME COURT REPORTS 1209
that. Assume a case in which the workmen raised a dispute _1958_
without having what the court considers sufficient interest to _Workmen of_
ma k e it an m ustna [· ] - d - 1 d' 1spute an d h t ere f ore, on t e matter h _lJimal:uchi Tea Estate_
c~min~ to the court the dispute was held not. to be an indus- _Tlie_ Jlla~~Y'T'•'"''
trial dispute. Upon that the Governments hands would JJim"''"c1,;
be tied and it would not be able to have that dispute resolv- ~!.'ea _E•tate_
ed by the processes contemplated in the Act. Suppose now _Sarkar_ _J._
that, the workmen then go on strike and industrial peace is
disturbed aad production hampered. The object of the Act
would then have been defeated. And why? Because it was
said that it was not a dispute in which the workmen were
interested and therefore not a dispute which was capable of
being adjusted under the provisions of the Act. It would be
no answer to say that the workmen would not go on strike
in such a case. If they would not, neither would the Government refer the dispute for adjudication under the Act and it
would not be necessary for the court to decide whether the
workmen were interested in the dispute or not or whether
the dispute was an industrial dispute or not. Therefore, I
think that it is not necessary to say that a dispute is an industrial dispute within the meaning of the Act only when workmen are interested in it. Such a test of an industrial dispute
would niake it justiciable by courts and also introduce a
rigidity in the application of the Act which is incompatible
With the fast changing concepts it has in view and so defeat
the object of the Act. It is enough to assume that as normal
men, workmen would not raise a dispute or threaten industrial peace on account of it unless they are interested in it.
I wish however to make it.clear, should any doubt exist
as to this, that I do not intend to be understood as saying·
that the question whether a dispute is an industrial dispute
or not is never justiciable by courts of law and that a dispute
is an industrial dispute only if the Government says so. Such
a larger question does not arise in this case. All that I say
is that it is not a condition of an industrial dispute that
workmen must be interested in it and 110 question of interest
1210 SUPREME COURT REPORTS [1958]
_JDss_ falls for decision by a court if it can be called upon to decide
_Workm'" of_ whether a dispute is an industrial dispute or not. The ques_I>i1n,tkuchi_ _r,,,,._ _E,101,_ t10n - - mterest can on y be o pract1ca value m that f · J f - J - it helps
###### 7 [,"·' ] [>l•n:g,wnt ] [of ] [the Governmen_t ] ['? ] ~ecide whether a dispute should be
_ni_ _[0]_ _nuk«chi_ referred for ad1ud1cahon or not.
_1',·t:_ J~'J;lrtle
Then it is said that if workmen were allowed to raise
a dispute concerning a person who was not a workman, then
it would be possible" for such a person to have his dispute
with the employer adjudicated through the workmen. This
case was put. Suppose the. manager wanted his salary to be
increased but could not make the employer agree to hi~ demand, he could then instigate the workmen and make them
raise a dispute that his salary should be increased and if such
a dispute is an industrial dispute and the award goes in
favour of the workmen then the result would be that the Act
could be used for settling disputes between the manager and
his employer, a dispute which the Act did not intend to concern itself with. So it is said that the words "any person"
in s. 2(k) cannot include an employee who is not a workman.
I am unable to agree. First, in interpreting an Act, the
Court is not entitled to assume that persons would use its
provisions dishonestly. The words in the Act cannot have
a different meaning than their natural meaning because
otherwise there would be a possibility of the Act being used
for a purpose for which it was not meant. The remedy
against this possibility is provided· in the Act, in that it has·
given complete freedom to the Government not to refer such
a dispute. It is .not necessary to meet a somewhat remote
apprehension that the Act may be used for purposes other
than those for which it was meant, to construe its language
in a manner different from that which it plainly bears. Lastly,
in doing this many cases like those earlier mentioned including the present, which are dearly cases of industrial disputes
would have to be excluded in the attempt to prevent by interpretation a remote app1ehension of a misuse of the Act.
This would do more harm than good.
S.C.R. SUPRKl\m COUHT H.EPOR'l'S 1211
I have therefore come to the conclusion that a dispute concerning a person who is not 1l workman may be an industrial
dispute within s. 2(k). As it has not been said that the dispute
with which we are concerned is for any other reason not an
industrial dispute, I hold that the Industrial Tribunal had full
jurisdiction to adjudicate that dispute and should have done
so.
I would therefore allow the appeal and send the case
back to the Industrial Tribunal for adjudication in accordance
with Jaw.
ORDER OF THE COURT
In view of the opinion of the majority, the appeal is
dismissed-: But there will be no order as to costs.
_Appeal dismissed._
SANTOSH KUMAR
_v._
BHAI MOOL SINGH
(S. R. DAIS C. J., VENKATARAMA AIYAR, A. K. SARKAR and
VIVIAN BOSE JJ.)
Negotiable _Instruments-Summary_ _Suit on_ _dishonoured_
_cheque-Application_ _for_ _leave to defend-Triable issue-Failui-e_
_to produce documentary_ _evidence-If_ _11enders_ _defence_ _va.gue_
_and not bona fide-Grant of conditional leave-Discretion of_
_Court, Interference_ _with-Code of Civil Procedure,_ 0. _XXXVII,_
_rr._ 2 _and_ 3.
The respondent filed a suit against the appellant under
0. XXXVII of the Code of Civil Procedur·e on the basis of a
cheque for Rs. 60,000 drawn by the appellant in favour of the
respondent which, on presentation to the Bank, had been dishonoured. The appellant applied under r. 3 of 0. XXXVII for
leave· to appear and defend the suit on the ground that the
cheque had been given only as a collateral security for the
price of goods supplied, that the goods had been paid for by
cash payments and by other cheques 11nd that therefore the
cheque in question had served its end and was without consiL/S4SCI-2(a)
_1958_
_JYorkmen_ _of_
_Dimakuelfi_
_Tea._ _Estate_
v.
_Tl1e .lla1wgem•.nt uf_
_JJimakuchi_
_2'ea_ _EstaJe_
_**Sutkar**_ ./.
_1958_
_Fr-bruury_ _5._