POWER OF EMPLOYEE'S COMPENSATION COMMISSIONER IN CONTEST OF RECALL OF EX PARTE AWARD (EMPLOYEE'S COMPENSATION ACT 1923
POWER OF
EMPLOYEE'S COMPENSATION COMMISSIONER IN CONTEST OF RECALL OF EX PARTE AWARD
(EMPLOYEE'S COMPENSATION ACT 1923
A
DISSERTATION TO BE SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF DEGREE OF MASTER OF LAWS
SUBMITTED
BY
SAJJAD HUSAIN
ROLL NO - 1220990024
WhatsApp and Mobile No.7080909786
School
of Legal Studies
UNDER THE GUIDANCE
OF
DR NITESH
KUMAR SRIVASTAVA
ASSISTANT PROFESSOR
School
of Legal Studies
Session 2022-2023
CERTIFICATE
This is to certify that the dissertation
titled, "POWER OF EMPLOYEE'S COMPENSATION
COMMISSIONER IN CONTEST OF RECALL OF EX-PARTE AWARD (EMPLOYEE'S COMPENSATION
ACT 1923"is the work done by SAJJAD HUSAIN under
my guidance and supervision for the partial fulfilment of the requirement for
the degree of MASTER OF LAWS in the
School of Legal Studies, Babu Banarasi Das University, Lucknow, Uttar Pradesh.
I wish her success in life.
Date:
_____________ DR.
NITESH KUMAR SRIVASTAVA
Place
– Lucknow
PROFESSOR
DECLARATION
Title of Dissertation “POWER OF EMPLOYEE'S COMPENSATION COMMISSIONER
IN CONTEST OF RECALL OF EX-PARTE AWARD (EMPLOYEE'S COMPENSATION ACT 1923"
I understand what plagiarism is and am aware of the University’s policy
in this regard.
SAJJAD HUSAIN
I declare that
a)
This
dissertation is submitted for assessment in partial fulfillment of the
requirement for the award of Degree of Master of Laws.
b)
I declare
that this DISSERTATION is my original work. Wherever work from other
source has been used i.e., words, data, arguments and ideas have been
appropriately acknowledged.
c)
I have
not permitted, and will not permit, anybody to copy my work with the purpose of
passing it off as his or her own work.
d)
The work conforms to the guidelines for
layout, content and style as set out in the regulations and guidelines.
Date: _____________
Place – Lucknow SAJJAD HUSAIN
Roll No.
1220990024
LLM Corporate and Commercial Law
(2022-23)
SoLS, BBDU
ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to my
supervisor Hon’ble Dr. Nitesh Srivastava for his effort and
encouragement until the accomplishment of my dissertation study and related research.
I would like to thank to our Dean
Prof. (Dr.) Sudhir Awasthi Head SoLS for
their insightful comments and encouragement, to my dissertation from various
perspective.
I am thankful to Dr.Sanskriti
Srivastav , Ms. Trisla Singh, Assistant Professor BBD university and Ms. Mudita
Tripathi Assistant professor BBD
university for being prodding me to successful completion of the project of dissertation.
There is no diction to express my love
to parents, my wife and children for being supportive in all respects in my
life and they are the driving force behind me.
My appreciation also goes to Babu Banarasi Das University for permitting
me to pursue my study.
Last but not least, I am also indebted to
extend my appreciation to my wife Smt. Kulsoom Firoz, my mother Noor Bibi, and
my friends Sri Ram Chandra Singh, Dilshad Husain, Arman Husain for their effort
that led me to the accomplishment of this study.
My
sincere and heartfelt go to all who in one way or another have helped me
through this study.
SAJJAD HUSAIN
Roll No.
1220990024
LLM Corporate and
Commercial Law
(2022-23)
SoLS, BBDU
LIST OF CASES
Case Laws which’s finding and conclusion are empowering the
Commissioner of Employee’s
Srl No. |
Name of the Case |
PageNo. |
1 |
27-30 |
|
2 |
Grindlays Bank LTD Vs Central Government
Industrial Tribunal & Ors |
30-35 |
3 |
United India Insurance Co. Ltd. Vs. Workmen’s
Compensation |
36-42 |
4 |
Syndet (India) Private Ltd Vs. Presiding
Officer |
42-43 |
5 |
Raj Bahadur Vs. Presiding Officer |
43-45 |
6 |
M/s Universal Cylinders Limited Vs. The
Presiding Officer |
45-57 |
7 |
Kolandhayee Vs. The Commissioner Labor
(Commissioner Workmen’s Compensation Act) |
57-63 |
8 |
A.V. Varghese Vs. N.K. Kumaran |
63-65 |
Case Laws which’s finding and conclusion are not empowering the
Commissioner of Employee’s Compensation to recall its own ex parte order and
award
SrlNo. |
Name of the Case |
PageNo. |
1 |
Marshal Securities Vs. The
Presiding Officer Labour Court (2) UP Kanpur and 2 others |
66-75 |
2 |
Mohd. Ikram & Another Vs. Dy. Labour
Commissioner, U.P. Saharanpur and others |
75-78 |
3 |
Balaji Stone Crusher Throu, Partner Kiran Saini
and other connected matter Vs. State of UP throu Geology and Mines and Ors |
78-86 |
4 |
Raman Agnihotri Vs. Commissioner, Workmen’s
Compensation, Kanpur and others |
86-89 |
5 |
Mayan Vs. Mustafa and another |
89-90 |
6 |
Sangam Tape Co.Vs. Hans Raj |
90-92 |
7 |
Nirmla and Another Vs. State of Uttar Pradesh and
others |
-93- |
8 |
Nimla and Another Vs. State of UP & Others |
-94- |
LIST OF ABBREVIATIONS
EC Act |
Employee’s Compensation Act, 1923 |
WC Rule |
Workmen’s Compensation Rules, 1924 |
CPC |
Code of Civil Procedure, 1908 |
AIR |
All India Reporter |
SCC |
Supreme Court Case (Law Journal) |
SCConline |
Supreme Court Cases Online |
All LJ |
Allahabad Law Journal |
ACJ |
Accidents Claims Journal |
SCR |
Supreme Court Reports |
SCCsup |
Supreme Court Case supplementary |
ILLJ |
Indian Legal Journal |
FLR |
Indian Factories & Labour Reports |
ANR |
Another |
ORS |
Others |
Vs. |
Versus |
Supra |
Above, as stated above mention |
IBID |
in the same place. |
Dt |
Date |
Dtd |
Dated |
SCI |
Supreme Court of India |
HC |
High Court |
DC |
District Court |
WCA |
Workmen’s Compensation Act |
ECR |
Employee’s Compensation Rule |
All |
Allahabad |
Lko |
Lucknow |
EBC |
Eastern Book Company |
SoLS |
School of Legal Studies |
BBDU |
Babu Banarsi Das University |
TABLE OF
CONTENTS
S.No. |
TOPIC |
P
No. |
I
|
CERTIFICATE
|
-i- |
II |
DECLARATION
|
-ii- |
III |
ACKNOWLEDGEMENT
|
-iii- |
IV |
LIST OF CASES |
-iv- |
V |
LIST
OF ABBREVIATIONS |
-v- |
IV |
TABLE OF
CONTENTS |
vi-ix |
IIV |
CHAPTERISATION |
I-VI |
1 |
CHAPTER- 1 Synopsis 1.1
Introduction
1.2
Objective
1.3
Hypothesis
1.4
Research
Methodology 1.5
Research
Question 1.6 Review of Literature |
1-7 |
2. |
CHAPTER-2 Historical Development of the Employee’s
Compensation Act 2.1.
Introduction
2.2.
History of Workmen Compensation Act
1923 2.3.
History of Workmen Compensation
Rule,s 1924 2.4.
Law Commission of India Report No. 61 of Report 1974 of
Workmen’s Compensation Act, 1923 and Workmen’s Compensation Rules, 1924 2.4.1
Law Commission of India Report No.
62nd of Report 1974 of Workmen’s Compensation Act, 1923 and Workmen’s
Compensation Rules, 1924 2.4.2
Workmen’s Compensation Act, 1923
amended as Employees Compensation Commissioner Act, 1923 2.5.
Delay in Legislation for Workmen’s
Compensation 2.6.
Compensation for Employees in Ancient India 2.7.
Compensation for Employees in Mugal
period (Medieval) India 2.8.1
Compensation and Wages under the A’in-I Akbari 2.8.2 Compensation
and Wages under the Abu’l-Fazl, Akbarnama |
8-12 |
3 |
CHAPTER – 3 Historical
Development of Employee’s Compensation
Act 3.1
Introduction 3.2
Meaning and Definition History of Rule 1924 3.3
Legislation Published in Official
Gazette and become Act and Rules 3.4
Objective of Legislation of The Workmen’s Compensation Act of 1923 and Workmen’s Compensation
Rules, 1924 3.5
Features of The Workmen’s Compensation Act of
1923 and Workmen’s Compensation Rules, 1924 3.6
Workmen’s
Compensation Act Policy Scope 3.7
Calculation of
compensation under the Workmen’s
Compensation Act |
13-17 |
4 |
Chapter – 4 Procedure of
filing of Cases under the Act 4.1
Introduction 4.2
Form
of Application 4.3
Claim
4.4
Notice 4.5
Evidence
4.6
Ex
– Parte (order in violation of natural justice) 4.7
Award
4.8
Ex-Parte
Award (without giving opportunity of hearing) 4.9
Recall
of Ex – Parte Award – Compensation 4.9.1
Recall
Application under Workmen’s Compensation Rules, 1924 4.9.2
Setting aside decrees ex parte
under the Code of Civil Procedure, 1908 4.10
Provision of Appeal against the
Judgement and Award passed by Commissioner Empolyee’s Compensation Act, 1923 4.10.1Maintainability
of Appeal under section 30 against the Judgement and Award passed by
Commissioner Empolyee’s Compensation Act, 1923 |
18-24 |
5 |
CHAPTER–5 Case Laws 5.1
Introduction 5.2
Table
of Cases on the point of Employee’s Compensation Act, 1923, the Commissioner
has power to recall Ex- Parte Order 5.3
Table
of Cases, which are not giving power to Commissioner of Employee’s
Compensation Act, 1923, with regard to
recall of ex-parte order 5.4
Satnam
Verma Vs. Union of India (UoI) decided on 19 October 1984 Supreme Court
finding recall of ex parte order and award with regard to power of Employee’s
Compensation of Commissioner 5.4.1
Satnam
Verma Vs. Union of India (UoI) para 6, 7, 8, 9 and 10 reproduced 5.5
Judgement
of Apex Court (Supreme Court of India) In Case of Grindlays Bank LTD Vs. Central
Government Industrial Tribunal &Ors 5.6
Judgement
of Hon’ble High Court Allahabad In Case of United India
Insurance Co. Ltd Vs. Workmen’S Compensation date of Judgement 17.01.1996
1997 (ACJ 1028 5.7
Judgement
of Hon’ble High Court Allahabad In Case of Syndent (India)
Private Limited Vs. Presiding Officer, Industrial Dt of Judgement 25.02.2005
2205 (2) ESC 1239 5.8
Judgement
of Hon’ble High Court Allahabad In Case In Case of Raj
Bahadur Vs. Presiding Officer, Labour
Dt of Judgement 08.01.2010 Writ C No. 575 of 2010 5.9
Judgement
of Hon’ble High Court Allahabad In Case of M/S
Universal Cylinders Limited Vs. The Presiding Officer, Labour Dt of Judgement
13.01.2020 Writ C No. 15333 of 2019 5.10
Judgement
of Hon’ble High Court Madras In Case of Kolandhayee Vs. The Deputy
Commissioner of Labour Dt of Judgement 19.04.2010 W.A. No. 2505 of 2001 5.11
Judgement
of Hon’ble High Court Madras In Case of A.V. Varghese Vs. N.K. Kumaran Dt of Judgement 10.08.2011
Writ C No. 14248 of 2009 (A) 5.12
Judgment of Hon’ble High Court in Civil Misc
Writ Petiton No. 33855 of 2006 in case of Marshal Securities vs. State of UP
and others judgement and order dt. 13.09.2006 5.13
Judgement of Hon’ble High Court of Allahabad
in Case of Mohd Ikram Vs. Dy. Labour Commissioner UP decided on 07.05.2013 5.14
Judgement of Hon’ble High Court of Allahabad
in case of Balaji Stone Cruhser thru. Partner Smt. Kiran Saini Vs. State of
UP & Others decided on 02.08.2022 5.15
Judgement of Hon’ble High Court of Allahabad
in Case of Raman Agnihotri Vs. Commissioner, Workmen’s Compensation, Kanpur
and others Civil Misc. Writ Petition 61531 of 2008 decided on November 28,
2008 5.16
Judgement of Hon’ble Supreme Court of India
in Case No. Civil Appeal No. 6614 of 2021 Mayan Vs. Mustafa and another
decided on 08.11.2021 5.17
Judgement of Hon’ble Supreme Court of India
in Case No. Civil Appeal No. 2064 of 2002 Sangham Tape Co. Vs. Hans Raj decided
on 27.09.2004 5.18
Judgement of Hon’ble High Court in Case of
Nirmla and anther Vs. State of UP and others Writ-C No. 2793 of 2022 order
dt. 25.05.2022 5.19
Judgement of Hon’ble High Court in Case of
Nirmla and anther Vs. State of UP and others Writ-C No. 9224 of 2022 order
dt. 22.12.2022 and 10.01.2023 5.20
Per
incuriam of Judgements 5.21
Incuriam of Judgments |
25-95 |
6 |
CHAPTER – 6 6.1
Conclusion
6.2 Suggestion |
96-102 |
7 |
Bibliography |
103-104 |
CHAPTER -1
1.1
Introduction
That the Commissioner of Employee’s
Compensation Act, 1923, has power to recall its own order ex – parte order, in
support of said statement I would like to refer the section 23 power of
Commissioner under the Employee’s Compensation Act, 1923 is quoted below “23. Powers and procedure of Commissioners.
The Commissioner shall have all the powers of a Civil Court under the Code of
Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on oath
(which such Commissioner is hereby empowered to impose) and of enforcing the
attendance of witnesses and compelling the production of documents and material
objects, [and the Commissioner shall be deemed to be a
Civil Court for all the purposes of [section 195 and of
Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)]].[1]”
section 23 is provided that the Commissioner of Employee’s Compensation, Act,
1923 shall be deemed to be a Civil Court for all the purposes, that is why
power of recall of ex parte order is also vested in his power, and also
Workmen’s Compensation Rules 1924’s proviso of Rule 41 is provided that the
Court of Employee’s Compensation Commissioner is having power of Code of Civil
Procedure Order 9 Rule 13 and 15 to 30, Rule 41 of Workmen’s Compensation
Rules, 1924 is quoted below, “41. Certain provisions of Code of Civil
Procedure, 1908, to apply.—Save as otherwise expressly provided in the Act or
these Rules the following provisions of the First Schedule to the Code of Civil
Procedure, 1908, namely, those contained in Order V, Rules 9 to 13 and 15 to
30: Order IX; Order XIII, Rules 3 to 10; Order XVI, Rules 2 to 21; Order XVII;
and Order XXIII, Rules 1 and 2, shall apply to proceedings before
Commissioners, in so far as they may be applicable thereto: Provided that- (a) for
the purpose of facilitating the application of the said provisions the
Commissioner may construe them with such alterations not affecting the
substance as may be necessary or proper to adapt them to the matter before him;(b) the
Commissioner may, for sufficient reasons, proceed otherwise than in accordance
with the said provisions if he is satisfied that the interests of the parties
will not thereby be prejudiced.[2]” the Workmen’s Compensation Rules, 1924, Rule 41 is
providing the power of Code of Civil Procedure, 1908, Order 9 Rule 13 and 15 to
30, same is reproduce here as under “Order 9 Rule 13, Setting aside decree ex
parte against defendants. — In any case in which a decree is passed ex parte
against a defendant, he may apply to the Court by which the decree was passed
for an order to set it aside; and if he satisfies the Court that the summons
was not duly served, or that he was prevented by any sufficient cause from
appearing when the suit was called on for hearing, the Court shall make an
order setting aside the decree as against him upon such terms as to costs,
payment into Court or otherwise as it thinks fit, and shall appoint a day for
proceeding with the suit: Provided that where the decree is of such a nature
that it cannot be set aside as against such defendant only it may be set aside
as against all or any of the other defendants also:[Provided further that no
Court shall set aside a decree passed ex parte merely on the ground that there
has been an irregularity in the service of summons, if it is satisfied that the
defendant had notice of the date of hearing and had sufficient time to appear
and answer the plaintiff's claim.]2[Explanation. Where there has been an appeal
against a decree passed ex parte under this rule, and the appeal has been
disposed of on any ground other than the ground that the appellant has
withdrawn the appeal, no application shall lie under this rule for setting
aside that ex parte decree.[3]]” as per section 23 of Employee’s Compensation Act, 1923 and
Rule 41 of Workmen’s Compensation Rules, 1924 and from the plain reading of the
Order 9 and Rule 13 of Code of Civil Procedure, 1908, it is crystal clear that
the Commissioner of Employee’s / Workmen’s Compensation is having to recall its
ex-parte order, the Hon’ble Apex Court as well as various Hon’ble High Courts
has given finding that the Commissioner of Employee’s / Workmen’s Compensation
is having to recall its ex-parte order list of the cases, petition number, date
of order and relevant paragraphs are as under
Srl |
Party Names |
Dt of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case
No. |
1 |
Satnam Verma Vs. Union of
India |
09.12.1984 |
Supreme
Court |
Para 7, 8, 9,
and 10 |
AIR 1985 SC 294
& 1984 Supp (1)SCC 712 |
2 |
Grindlays Bank
LTD Vs Central
Government Industrial Tribunal &Ors |
12.12.1980 |
Supreme Court |
Para Second Third Fourth And five |
1981 AIR 606,
1981 SCR (2) 341 |
3 |
United India
Insurance Co. Ltd. Vs. Workmen’s
Compensation |
17.01.1996 |
Allahabad |
14 |
1997 ACJ 1028 |
4 |
Syndet (India)
Private Ltd Vs. Presiding
Officer |
25.01.2005 |
Allahabad |
3 |
2005 (2) ESC
1239 |
5 |
Raj Bahadur Vs. Presiding
Officer |
08.01.2010 |
Allahabad |
first , Second
and third |
Wrt - No. 575 of
2010 |
6 |
M/s Universal
Cylinders Limited Vs. The Presiding
Officer |
31.01.2020 |
Allahabad |
Last page |
Writ C No. 15333
of 2019 |
7 |
Kolandhayee Vs. The Commissioner
Labor (Commissioner Workmen’s Compensation Act) |
19.04.2010 |
Madras |
Last page |
W.A. No. 2505 of
2001 |
8 |
A.V.
Varghese Vs. N.K. Kumaran |
10.08.2011 |
Kerala |
4 and 5 |
WP (C) No. 14248
of 2009 |
That the various Hon’ble Courts has given finding that the (Workmen’s /
Employee’s Compensation Commissioner has no power to recall its own ex parte
order, they have refer the section 6 of Employee’s Compensation Act, 1923 in
the said section there no power of review has been given by the Act and in Rule
32 (2) of Workmen’s Compensation Rules, 1924 is providing that the Commissioner
has no power to alter the judgement after its pronouncement only clerical or
arithmetical mistake is allowed, Rule 32
(2) of Workmen’s Compensation Rules, 1924 is reproduced here as under , “32 (2) The
Commissioner, at the time of signing and dating his judgment, shall pronounce,
his decision, and thereafter no addition or alteration shall be made to the
judgment other than the correction of a clerical or arithmetical mistake
arising from any accidental slip or omission.[4]” on the
basis of the Rule 32 (2) of Workmen’s Compensation Rules,
1924 the various Hon’ble Court has given finding in the flowing judgements that
the Commissioner has no power to recall its own ex-parte order, the table of
the judgment is as under
Srl |
Party Names |
Dt of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case
No. |
1 |
Marshal Securities Vs. The Presiding
Officer Labour Court (2) UP Kanpur & 2 Ors |
13.09.2006 |
Allahabad High Court |
31 & 34 |
Writ – C No. 33855 of 2006 |
2 |
Mohd. Ikram
& Another Vs. Dy. Labour
Commissioner, U.P. Saharanpur and others |
07.05.2013 |
Allahabad High
Court |
6 |
Civil Misc Writ
Petition No. 15504 of 2011 |
3 |
Balaji Stone
Crusher, Partner Kiran Saini and other connected matter Vs. State of UP
Geology & Mines & Ors |
02.08.2022 |
Allahabad High
Court, Lucknow |
11 |
Writ – C No.
7606 of 2019 |
4 |
Raman Agnihotri
Vs. Commissioner, Workmen’s Compensation, Kanpur & Ors |
28.11.2008 |
Allahabad High
Court |
21,
25 |
Civil Misc. Writ
Petition No. 61531 of 2008 |
5 |
Mayan Vs.
Mustafa and another |
08.11.2021 |
Supreme Court of
India |
2 |
Civil Appeal No.
6614 of 2021 |
6 |
Sangam Tape
Co.Vs. Hans Raj |
27.09.2004 |
Supreme Court of
India |
6,
7, 8, 12 |
Civil Appeal No.
2064 of 2002 |
7 |
Nirmla and
Another Vs. State of Uttar Pradesh and others |
25.05.2022 |
High Court
Lucknow |
1,
2, 3 and 4 |
Writ-C No. 2793
of 2022 |
8 |
Nimla and
Another Vs. State of UP
& Others |
22.12.2022 & 10.01.2023 |
Allahabad High
Court Lucknow bench Lucknow |
1
and 2 |
Writ – C No.
9224 of 2022 |
Judgement of Hon’ble High of Allahabad in Case of Mohd.
Ikram & Another vs Dy. Labour Commissioner U.P. decided on 7 May, 2013 is per incuriam (Per
incuriam word come in English From Latin meaning is “through lack of case”)
meaning thereby the Hon’ble Judge oversight and without considering all the
relevant facts and precedent of law which were earlier decided in the
proceeding of law, the Hon’ble Judge in case of Mohd. Ikram & Another Vs.
Dy. Labour Commissioner U.P., Marshal Securities Vs. The Presiding
Officer Labour Court (2) UP Kanpur and 2 others, Balaji Stone Crusher Throu,
Partner Kiran Saini and other connected matter Vs. State of UP throu Geology
and Mines and Ors, Raman Agnihotri Vs. Commissioner, Workmen’s Compensation,
Kanpur and others, Mayan Vs. Mustafa and another, Sangam Tape Co. Vs. Hans Raj,
Nirmla and Another Vs. State of Uttar Pradesh and others most of the
judgement (supra) is recent judgement of
2021 and 22 and of old up to 2000, has committed a manifest
of error not considering the law of precedent in Case of Grindlays Bank LTD Vs.Central Government Industrial Tribunal
&OrsJudgement Dt. 12.12.1980 reported1981 AIR 606, 1981 SCR (2) 341 and In
Case of Satnam Verma Vs. Union of India and various other judgements of the
Hon’ble Apex have not been considered and other judgements of the Hon’ble
Allahabad High Court have not been considered therefore the judgement (supra) are
per incuriam as per As per Legal Service India[5]Through
carelessness, through inadvertence. 'Per Incuriam' means 'through want of care'. A
decision of the Court which are mistaken. A decision of the Court is not a
binding precedent if given Per Incuriam, i.e. without the Court's attention
having been drawn to the relevant authorities, or statutes, in view of the
above the Employee’s / Workmen Compensation Commissioner has power to recall
its own ex parte order, accordingly I am of the view that the Employee’s /
Workmen Compensation Commissioner has power to recall its own ex parte order /
award.
1.2
Objective
Ø To identify the power of Commissioner under the
Employee’s Compensation Act 1923, and Wrokmen’s Compensation Rule 1924
Ø A Study of relevant provision of Act and Rule and case
Laws.
Ø Study on Power of Employee’s Compensation Act 1923
& Rule 1924 Commissioner for recalling the ex-parte awardThat the Employee’s
Compensation Act 1923 is very much silent on the point of review and recall,
Rule 32(2) is providing that the Commissioner has no power to recall his own ex
parte order, only Commissioner can do clerical and arithmetical error no power
of actual review and recall is vested in the power of Commissioner but
Workmen’s Compensation Rule 1924, Rule 41 is providing that the Commissioner of
Employee’s Compensation Act, 1923, having power of Civil Court and Order 9 Rule
13 of Code of Civil Procedure, 1908 applied, therefore rule 41 is providing
them for recalling of ex parte order/award passed by the Commissioner of
Employees Compensation Act 1923, the provision of Recall and Actual Review as
provided in Code of Civil Procedure, 1908, the legislature has not inducted or
introduced in Employee’s Compensation Act 1923 therefore in deciding / in
proceeding of the case of claim learned judges are very much differing opinion
that the Employee’s Compensation Commissioner has no power to recall its own
order either on merit or on ex parte and some of learned judges are delivering
judgement on the basis of the Rule, holding that that the Employee’s
Compensation Commissioner has the power to recall its own order, and some of
the Hon’ble Court are in opinion that the Commissioner of Employee’s
Compensation Act, 1923 has no power to recall its own order either on merit or
on ex-parte, Hon’ble Court has given different – different judgements / orders,
most of the orders of the learned judges are per incuriam, finding are bad in
the eye of law, and also against the precedent which are earlier pronounced by
the other Hon’ble Court, finding of orders are deferring to one other,
therefore is liable to discuss here in detail and find the problem and solution
to the same.
1.3 Hypothesis
Power of Employee’s Compensation of Commissioner to
recall of Ex-Parte Award under the Employee’s Compensation Act 1923 and
Workmen’s Compensation Rule 1924
1.4 Research Methodology
In the research under the doctorial research and
source of collection of data mainly through secondary data.
1.5 Research Question
1.
Whether
Employee’s Compensation of Commissioner having power to Recall Ex-Parte Order
under Employee’s Compensation Act 1923 and
Workmen’s Compensation Rule 1924 ?
2.
Whether
review and recall is permissible under the (Employee's Compensation Act 1923)
3.
Whether
review and recall is permissible under the (Workmen’s Compensation Rule 1924)
1.6
Review of Literature
Books.
1.
Labour and Industrial
Law, Pillai, 14th Edition, 2012, ALJ publication. This book is very useful for
me to do research work it contain some case law in this book they explain in a
detail way with explanation, section 23.
Powers and procedure of Commissioners. The Commissioner shall have all the
powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908),
for the purpose of taking evidence on oath (which such Commissioner is hereby
empowered to impose) and of enforcing the attendance of witnesses and
compelling the production of documents and material objects, [and
the Commissioner shall be deemed to be a Civil Court for all the purposes of [section
195 and of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)]].[6]” and Rule “41. Certain provisions of
Code of Civil Procedure, 1908, to apply.—Save as otherwise expressly provided
in the Act or these Rules the following provisions of the First Schedule to the
Code of Civil Procedure, 1908, namely, those contained in Order V, Rules 9 to
13 and 15 to 30: Order IX; Order XIII, Rules 3 to 10; Order XVI, Rules 2 to 21;
Order XVII; and Order XXIII, Rules 1 and 2, shall apply to proceedings before
Commissioners, in so far as they may be applicable thereto: Provided that- (a) for the purpose of facilitating the
application of the said provisions the Commissioner may construe them with such
alterations not affecting the substance as may be necessary or proper to adapt
them to the matter before him;(b) the Commissioner may, for sufficient
reasons, proceed otherwise than in accordance with the said provisions if he is
satisfied that the interests of the parties will not thereby be prejudiced.[7]” and Workmen’s Compensation Rules, 1924 is
reproduce here under “32 (2) The
Commissioner, at the time of signing and dating his judgment, shall pronounce,
his decision, and thereafter no addition or alteration shall be made to the
judgment other than the correction of a clerical or arithmetical mistake
arising from any accidental slip or omission.[8]”are taken from the book, for the purpose to explaining the power of
Commissioner of Employee’s Compensation Act, 1923 and Workmen’s Compensation
Rules, 1924, also for the purpose of testing the rule 32(2) of Workmen’s
Compensation Rules, 1924, which are contradictory to the Rule 41 of the
Employee’s Compensation Act, 1923 and also contrary to section 23 of the
Employee’s Compensation Act, 1923, in one section 32(2) of the Workmen’s
Compensation Rules 1924 is providing that the Commissioner of Employee’s Compensation
Act have no power after pronouncing of the judgement, may add and correct for
clerical and arithmetical word except these have no power to review and recall
its own order, in fact section 23 of Employee’s Compensation Commissioner has
all the powers of civil court in exercising of power of the Act and also the
Rule 41 of Workmen’s Compensation Rules 1924 is proving that the Commissioner
has all the power of Code of Civil Procedure, 1908, specially the power of
order 9 rule 13 of CPC, therefore 32(2) of Rule Workmen’s Compensation Rules,
1924 is liable to be tested in accordance with law.
2.
Employee’s Compensation
Act 1923 and Workmen’s Compensation Rule 1924 (Bare Act) 42 Edition, 2022
Amended up to Act 11 of 2017 and as of 30.12.2021 Published by Eastern Book
Company, 34-A, Lalbagh Lucknow
from this Book, section 6 of review, and power of Commissioner under the Act,
section 23 all the power Commissioner is having as exercising of power of civil
Court, Rule 32 (2) of the rule is conflicting to the rule 41 and in fact Rules
41 is providing the power of employee’s Compensation Commissioner to recall its
ex parte order as power vested in Commissioner under order 9 rule 13 Code of
Civil Procedure, 1908, contradiction is required to be tested and various aspect
and prospect has been discussed several judgements are per incuriam which are
liable to be tested with the Act and Rules, and to obtain correct finding for
fulfilling the values correctness after doing due process of law, in accordance
with law as established by law of natural justice in the interest of justice.
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HISTORICAL
DEVELOPMENT OF EMPLOYEE'S COMPENSATION ACT
2.1 Introduction
According
to the “The Fatal Accident Act, 1855[9], the employer must take
responsibility for its workmen, before the enactment of the Act, workmen are
facing several types of trouble and working in the unsafe zone, the employers
are not paying attention to the workmen, and workmen were working under the
hazardous zone, and the incident has been taken places in the entire country as
well as across the world, therefore in India “The Fatal Accident Act, 1855” has
been enacted, the Act cover to major accident or fatal road accident, therefore
requires for a new law for compensation for the workmen and complete code in
the name and style “The Workmen Compensation Act, 1923” vide Act No. 8 of 1923
on 5th March 1923 has been come into force and cover the workmen
needs including safety, social and economic as well as life security.
2.2 History of Workmen Compensation Act
1923
That
British-India made the Act “Workmen’s Compensation Act 1923” and delayed framed
its rule as Workmen’s Compensation Rules, 1924, in Act 1923 no wide scope and
Rule, The earlier Act i.e. “The Fatal Accident Act, 1855” has been introduced
and in The Fatal Accident Act, 1855 having very limited scope and on very
limited point i.e. fatal injuries identified therefore Workmen’s Compensation
Act 1923 and it’s Rule 1924 has been framed and vide scope has been described,
Act has been framed but no power of actual review and recall has been assigned
in the hand of Workmen’s Compensation Commissioner, but in the Rule Power has
been assigned but in very short, that is why learned judges have given
interpretation of Act and Rule as well, before the Workmen’s Compensation Act,
1923 no act framed which may fulfil the grievances of the aggrieved persons,
that is British – India has framed the law known as Workmen’s Compensation Act
1923.
2.3 History of Workmen Compensation Rules
1924
That
India has no good Act and Rule with
regard to compensation for workmen and employees to cover and give benefit to
all aggrieved persons equally, either to claimants or defendants pre Work
Compensation Act 1923 and Rule 1924 Only India has “The Fatal Accident Act
1855” from the “The Fatal Accident Act 1855” no substantial justice meet out
therefore in pre-independent Workmen Compensation Act 1923 and Rule 1924 has
been framed “in the exercise of the power conferred by section 32 of the
Workmen’s Act, 1923 (VII of 1923), “the Governor-General-in-Council is pleased
to make the following rules: Government of India, Department of Industries and
Labour, notification No. L-1182, dt. 26.06.1024[10]”
2.4 Law Commission of
India Report No. 61 of Report 1974 of Workmen’s Compensation Act, 1923 and Workmen’s
Compensation Rules, 1924
Regarding
the smooth and easy functioning of the Employees Commissioner Government of
India has handed over the matter to Law Commission of India and due to lapse of
time and the development of the nature of work and sustained injuries by the
workers therefore entire Act has been taken into consideration by the Law
Commission of India, and law Commission of India has prepared the report but
due to lacks of less reformation report not become final as letter of minister
is quoted below
'A' Wing, 7th Floor,
Shastri Bhawan,
New Delhi-1.
October 15, 1974
Hon’ble Shri H.R. Gokhale Minister of Law, Justice and Company
Affairs, Government of India New Delhi
I
have great pleasure in forwarding herewith the 62nd Report of the Commission on
the Workmen's Compensation Act, 1923. The circumstances in which the subject
was undertaken for study are dealt with in the opening paragraph of the Report.
Having
regard to the nature of the subject and its importance, the Commission first
made a preliminary study of the subject, and framed a Questionnaire in order to
elicit views. This Questionnaire was sent to the Ministries concerned, the
State Governments, the High Courts, Bar Associations, and other interested
persons and bodies, including associations of employers and workmen. The
replies received in response to this Questionnaire were then duly considered by
the Commission, and a draft Report on the subject was prepared by the
Member-Secretary, Shri Bakshi, and discussed by the Commission at length. After
discussion, the Report was finalised.
However,
the final draft, as approved, was being typed and the typing work could not be
completed before the 1st of October, 1974, when the Commission was
re-constituted with the addition of Mr. B.C. Mitra. That is why, Mr. Mitra has
not signed the Report.
Incidentally,
I may mention that this Report is the first Report of the present Commission
since its reconstitution.
With
warm personal regards,[11]
Due
to the failure of the first report regarding the reformation and rectification
of the Workmen’s Compensation Act 1923 and Rules, 1924, the Government of India
has initiated and recommended its second report, and approved by the majority
members for its second law commission report, in pursuance of Law Commission of
India Report amendment proceeding has been adopted to the same.
2.4.1 Law Commission of
India Report No. 62nd of Report 1974 of Workmen’s Compensation Act,
1923 and Workmen’s Compensation Rules, 1924
That
of 62nd Law Commission Report 1974 and Law Commission Report No.134
1989 amendment has been made, due to lapse of time several provisions become
inactive and required for reformed and amended as the Law Commission of India
has given in its report and recommendation, Law Commission of 1.4. paragraphs
is quoted below “1.4. Need for revision of the Act. It is hardly
necessary to emphasise the need for revision of the Act. There have been
far-reaching developments in the field of social security and industrial
relations in India since the Act was passed, and it is obviously desirable that
this beneficial piece of social legislation should be reviewed in the context
of those developments. The Directive Principles in the Constitution1,
to which we have briefly referred2, also lay emphasis, in
particular, on the need to protect the health and strength of workers, the need
to make effective provision for public assistance in cases of unemployment,
sickness and disablement, and oil endeavours to secure to all workers decent
conditions of work and on ensuring a decent standard of life. It is not often
realised that the provision for dependants in the Workmen's Compensation Act is
specially intended to avoid want and penury, and is of direct relevance with
reference to these directive principles. The concept of equality, which is one
of the basic principles of the Constitution, has also provided inspiration for
a revision of provisions resting on discrimination.”[12]
That the 134th Report of 1989 1A.14 has reproduced here us under “1A.14. Gist of
the operative provisions.We shall now have a look at the operative provisions
of the Workmen's Compensation Act. Under the Act, if personal injury is caused
to a workman by an accident arising out of, and, in the course of his
employment, his employer shall be liable to pay compensation irrespective of
fault, in accordance with the provisions of Chapter 2 of the Act.1 This
expression "workman" is defined so as to include not all employees,
but only a limited class. The liability of the employer to pay compensation is,
under this provision, excluded in the case of certain minor injuries; and
there is no liability for an injury caused by an accident directly attributable
to the workman being under the influence of drink or drugs or to the wilful
disobedience of orders and rules by the workman, or to the wilful removal or
disregard by the workman of safety devices. Certain diseases contracted in
an employment are also regarded as "injuries caused by
accident", for the purpose of the Act. The liability arising under
the Act cannot be excluded by contract.”[13]
2.5 Workmen’s Compensation Act, 1923
amended as Employees Compensation Commissioner Act, 1923
That
the Bill has been introduce by the Ministry of Law and Justice (Legislative
Department) New Delhi, the 23rd December of 2009, the following Act
f Parliament received the assent of President on the 22nd December,
2009 and is hereby published for general information “THE WORKMEN’S
COMPENSATION (AMENDMENT) ACT, 2009 NO. 45 OF 2009 dated 22nd
December, 2009, in the amendment 10 amendment has made in first section 1 (1)
This Act may be call the Workmen’s Compensation (Amendment) Act, 2009 (2) It
shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint 2. In the long title to the
Workmen’s Compensation Act, 1923 (hereinafter referred to as the principal Act)
for the word “Workmen”, the word “Employees” shall be substituted. 3. In the
principal Act, in the preamble, for the word “workmen” the word “employees”
shall be substituted. 4. In section 1 of the principal Act, in sub-section (1),
for the word “Workmen’s” the Word “employee’s” shall be substituted.[14]
2.6 Delay in Legislation for Workmen’s
Compensation
That
the labour work is always in our nation even in past, present and also in
future are very painful, the, the most of the nation have made the law with
regard to the compensation to labour class, but India is more in delayed, and
law, there many reasons one of them that the India is the under control of
British that is why most of the labour are not protected, but due to huge
demand of Indian Workmen’s Compensation Act 1923 has been framed, in very
delayed before this Act there is not act for compensation for the employee’s
how the law with regard to compensation is delayed and framed only in 1923.
2.7 Compensation for Employees in Ancient
India
That
before the independence of India, in India mainly decisions were made under Ved
and Pooran and local laws were made by the present ruler, there were no
specific law to run and govern by the society except the law of religion, most
of the Administrators were administering their State and region by the
religious laws, there not specified any laws except to natural and spot justice
looking to the incident.
2.8 Compensation for Employees in Mugal
period (Medieval) India
A notable representative of Brahmanical
orthodoxy, Tulsidas (fl.1570), author of a very popular version of the
religious epic Ram Charitmanas, noted as an
astonishing phenomenon of his day that “low-caste people such as oilmen,
potters, untouchables (svapachas),
fishermen, watchmen, and distillers simply shave their heads and turn into
mendicants, at the loss of their wife or household goods”. Their one act of
defiance led to others. They tended to form part of a religious movement, now
often called Popular Monotheism, which, rejecting both Hinduism and Islam,
India's two major religions, preached an unalloyed faith in one God, abjuring
all ritual and the constraints of the caste system. Apart from the cloth
printer, Namdev (c.1400) of Maharashtra, a major figure in this movement was
Kabir, a weaver from the city of Banaras (Varanasi) in Uttar Pradesh, who lived
around 1500.[15]
2.8.1 Compensation and Wages under the A'in-i Akbari
These workshops are described in detail in
the A'in-i Akbari and by Francois Bernier (in India,
1658–1668). The A'in-i Akbari furnishes
us with details of wage rates for different kinds of work, invariably in terms
of money, and on a daily basis. But in construction work carried out under
imperial aegis, piece rates are also specified.[16]
2.8.2
Compensation and Wages under the Abu'l-Fazl, Akbarnama
The compensation and wages has also been
describe in the Akbarnama, in such a period every aspect and prospect has been
decided by Akbarnama, as per Akbarnama no caste discrimination during the
period of Akbarnama, and that time of period the India has four major religion,
Sanatan that is called Hindu, Islam, Jain and Budhzam and in some parts of
State Esai, and no religious ban in any manner, and labour were to free to work
any where and no discrimination for labour also, and concept of education were
less and less and development were in little position as per comparison of now
days, that is why most of them were come in labour category.[17]
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LEGISLATION
APPROACH OF EMPLOYEES’ COMPENSATION IN INDIA
3.1 Introduction
The
growing complexity of industry in this country, with the increasing use of
machinery and consequent danger to workmen, along with the comparative poverty
of the workmen themselves, rendered it advisable that they should be protected,
as far as possible from hardship arising from accidents. After a detailed
examination of the question by the Government of India, Local Governments were
addressed in July 1921, and provisional views of the Government of India were
published for general information. The advisability of legislation had been
accepted by the great majority of Local Governments and of employers’ and
workers’ associations and the Government of India believed that public opinion
generally is in favour of legislation. In June 1922 a committee was convened to
consider the question. After considering the numerous replies and opinions
received by the Government of India, the committee was unanimously in favour of
the legislation and drew up detailed recommendations. On the recommendations of
the committee, the Workmen’s Compensation Bill was introduced in the
Legislature.[18]
As Workmen’s Compensation Act, 1923 and Workmen’s Compensation Rules, 1924.
3.2
Meaning and Definition:
The
general principles of workmen’s compensation command almost universal
acceptance and India is now nearly alone among civilised countries in being
without legislation embodying those principles. For several years, the more
generous employers have been in the habit of giving compensation voluntarily,
but this practice is by no means general. The growing complexity of industry in
India with the increasing use of machinery and consequent danger to workmen,
employees along with the comparative poverty of the workmen themselves, renders
it advisable that they should be protected for that, as far as possible from
hardship arising from accidents, incidents. An additional advantage of
legislation of this type is that by increasing the importance for the employer of
adequate safety devices with other tools, it reduces the number of accidents to
workmen in a manner that cannot be achieved by official inspection. Further,
the encouragement given to employers to provide adequate medical treatment for
their workmen should mitigate the effects of such accidents as do occur. The
benefits so conferred on the workman added to the increased sense of security
which he will enjoy, should render industrial life more attractive, and thus
increase the available supply of labour. At the same time, a corresponding
increase in the efficiency of the average workmen may be expected. A system of
insurance would prevent the time burden from pressing too heavily on any employer. After a detailed
examination of the question by the Government of India, Local Governments were
addressed in July 1921, and provisional views of the Government of India were
published for general information. The advisability of legislation has been
accepted by the great majority of Local Governments and ‘at employers’ and
workers’ association and the Government of India believe that public opinion
generally is in favour of the Legislation. In June 1922, a committee was
convened to consider the question. This committee was composed, for the most
part of members of the Imperial Legislature. After considering the numerous
replies and opinions received by the Government of India, the committee was
unanimously in favour of the legislation and drew up detailed recommendations
regarding the lines which in its opinion such legislation should follow. The
Bill now presented follows these recommendations closely. Several supplementary
provisions have been added where necessary, but practically no variations of
importance have been made. The Bill contains two distinct proposals. In Chapter
II modifications are made in the ordinary civil law affecting the liability of
employers for the damages in respect of injuries sustained by their workmen;
these clauses will operate only in actions before the ordinary civil courts.
The main part of the Bill makes provisions for workmen’s compensation and sets
up special machinery to deal with claims falling under this category. Both
parts of the Bill, however, apply to the same classes of workmen. If the scope
of the employers’ liability clauses was made wider than the scope of the
workmen’s compensation provisions, there would be considerable danger of a
great increase in litigation. The classes included are those whose inclusion
was recommended by the committee and are specified in Schedule II. Two criteria
have been followed in the determination of the classes to be included— (1) that
the Bill should be confined to industries which are organised; (2) that only
workmen whose occupation is hazardous should be included. The general principle
is that compensation should ordinarily be given to workmen who sustained
personal injuries in accidents. Compensation will also be given in certain
limited circumstances for disease. The actual rates of compensation payable are
based on the unanimous recommendation of the committee. They are in every case
subject to fixed maxima, in accordance with the committee’s recommendations. It
should be remembered, however, that the more highly paid workmen will be
enabled in cases to which the employers’ liability clauses will apply, to
obtain damages on a scale considerably in excess of the maximum fixed for
workmen’s compensation. A consistent endeavour has been made to give as little
opportunity for disputes as possible. Throughout the Bill in the definitions
adopted the scales selected, and the exceptions permitted the great aim has
been precision in order that in as few cases as possible should the validity of
a claim for compensation or the amount of that claim be open to doubt. At the
same time, on the unanimous recommendation of the committee provision has been
made for a special Tribunal to deal cheaply and expeditiously with any disputes
that may arise, and generally to assist the parties in a manner which is not
possible for the ordinary civil courts.
3.3
Legislation Published in Official Gazette and become Act and Rules
The
Workmen’s Compensation Bill having been passed by the Legislature received its
assent on the 5th March 1923. It came into force on the 1st day of July 1924 as
THE WORKMEN’S COMPENSATION ACT, 1923 (8 of 1923).[19], prior to the aforesaid
Act, no Act independent Act were framed to protect the workmen’s or employees
for the compensation.
3.4
Objective of Legislation of The
Workmen's Compensation Act of 1923 and Workmen’s Compensation Rules, 1924
A law passed by the
Indian Parliament in 1923 called the Workmen's Compensation Act establishes the
provision of compensation to employees for injuries sustained while working.
All factories, mines, oil fields, plantations, railroads, retail stores, and other
establishments must comply with the Act.In the event of injury or death brought
on by employment, the Act offers some sort of social protection to employees
and stipulates quick resolution of disputes. The main objective of the
Workmen's Compensation Act is to provide compensation to employees, or their
dependents, in case of injury, illness, or death caused due to employment, and
to provide a system of speedy settlement of disputes. Moreover, the Act ensures
the payment of compensation to workers in case of occupational accidents,
illness, or death, and helps them to get back to work with minimum disruption.
By encouraging employers to give their employees a secure and safe working
environment, the Act also aims to improve workplace occupational safety. Furthermore, it also encourages employers to take
care of their employees by providing medical facilities and other benefits. The
Act also seeks to provide a uniform system of compensation across India, by
setting up a Central Government and State Government-appointed tribunal to hear
claims and disputes. The Act also seeks to ensure that employers take
responsibility for the safety.[20]
3.4
Applicability of The Workmen's
Compensation Act of 1923 and Workmen’s Compensation Rules, 1924
The Workmen's Compensation Act of 1923 is
an Indian law that offers benefits to workmen’semployee’s in the event that they
sustain physical harm or pass away while performing their job-related duties.It
also applies to specific hazardous jobs and all factories and establishments
with ten or more employees. All employees, including those who work part-time,
temporarily, or casually, are subject to it.The Act mandates the payment of
compensation in cases of harm, incapacity, or death brought on by an accident
or work-related illness.In case of death, the Act provides for the payment of
a lump sum as well as a monthly pension to the survivors. The type of disease
or injury, the degree of disability or demise, and the worker's earnings all
affect how much compensation is awarded.[21]
3.5
Features of The Workmen's
Compensation Act of 1923 and Workmen’s Compensation Rules, 1924
As per section 3 of Employees Compensation
Act, any employee’s and workmen’s suffers personal injury as a result of
accident
I.
Injury in partial in nature
or partial disablement
II.
Injury for periodic more
than 3 days
III.
Injury not resulting
death or permanent disablement
IV.
Injury cause by influence
of drink of drug
V.
Wilful Disobedience of
the employee’s to an order expressly given
VI.
Wilful of removal or
disregard by employee of any safety
VII.
Any disease occupational
peculiar to that employment
In
aforementioned the condition are satisfied and verified then employer are
liable to pay compensation under the Employee’s Compensation Act, The Workmen’s
Compensation Act also mandating to employer to provide benefit of workers who
become permanently or temporarily disabled due to job accidents.
3.6
Workmen's Compensation Act
Policy Scope
The scope of workmen’s compensation
policy is varied and broad and covers a wide range of benefits for employees
who sustain an injury or contract a disease in the course of their
employment.In general, the insurance covers medical costs, lost wages reimbursement, and
other benefits. In the event of death, the policy may also provide for a lump
sum payment to the deceased’s family.In addition, the policy may provide for
rehabilitation expenses, and certain other miscellaneous benefits such as
funeral costs and legal expenses. The scope of the policy depends on the
employer, state, and type of injury or illness.
The following front-line employees
are protected under workers' compensation in India:
- Personnel employed by the establishments listed in
Schedule II of the Act, including factories, mines, docks, building sites,
and specific businesses.
- Employees who were hired internationally in
accordance with Schedule II of the Act.
- It applies to any job involving work linked with
vehicles, members of an aircraft crew, captains, helpers, drivers, or
mechanics.
- Not employed permanently railroad personnel that
work in administrative, district, or subdivisional offices.
Armed
services members are not eligible for Workmen's Compensation coverage since
they are covered by the Employee State Insurance (ESI) Act.
According to
the 2017 amendment to the Act, employers are required to advise employees of
their rights to receive compensation. This can be done in a language that the
employee can comprehend, on paper, or online.[22]
It is important to mention here that the Employee’s Compensation amended Act is
provided that the employees / workmen are liable to insured mandatorily, for
the propose of giving benefit to employer as well as to the employees
3.7
Calculation of compensation under the Workmen's Compensation Act
That section 5 of the Employee’s Compensation Act is
providing the method of calculation of wages “monthly wages” assume to payable
for a moth’s service, employees work continue not less than 12 month
immediately to the incident / accident being in service of the employer, who is
liable to pay compensation, the monthly wages of the employees shall be one
twelfth of the total wages which have fallen due for payment to him by the
employer in the last, even the work may also be provide in the same locality of
the employee, and as per section 7 of the Employees Compensation Act any right
to receive half monthly payments, by agreement between the parties or if the
parties cannot agree the payment may not less than six moth, the propose of act
to provide efficacious remedy to immediate needy persons / employees – workmen.
3.8
Intention of Legislature for Workmen's
Compensation Act
That the main intention of the Legislature to provide
safety and security of the employees and dependents if any partial or permanent
injury or disabilities, to provide compensation to inured for proper medical andalso
for maintaining inured, families, in case of death, the dependants are entitle
for compensation resulted from the financial crush, for the purpose restore the
financial collapse and further for reformation of families, economic stability for
sudden faced problem due to accident, the Act is made in 1923 and till date is
in operation and in force, all over covering the most of the aspect and
prospect of the employees – workmen.
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PROCEDURE
OF FILING OF CASES UNDER THE ACT
4.1 Introduction
Compensation
means any person who got injured or accident any way who is the workmen of the
employer, the injured person(s) or family members of the injured, partly, or
(died) can seek compensation from the employer, as per the plain reading of the
Employees’ Compensation Act 1923, and the procedure has been defined under the
Workmen’s Compensation Rules, 1924, it is further clarified that the even minor
dependent can file an application for seeking compensation under the Act[23]
4.2 Form of Application
Under
the Act, section 3 is providing that Employer’s liability for compensation, if
any person caused, or received injuries during the work, the employer is duty
bound by law to provide adequate compensation, there is no matter under which
circumstances injury is received, the Act provides that compensation to the
workmen for the purpose of rehabilitating to the injured and dependent,
application under section 22 of the Act.
4.3 Claim
As
per the Act section 2-D injured or dependent can sue for compensation and
section 10 of the Act define Notice and Claim, no claim application can be
entertained after the expiry of two years of the incident, and the application
is required to move before the Commissioner with the detail of incident and
name of dependent, no claim can be entertained after the expiry of two years
and Limitation Act not applied, on the point of delay the Act is silent totally
4.4
Notice
That
the Commissioner is required to issue noticesto the affected parties, the
opportunity of hearing is mandatory, no order can be passed without giving the
opportunity of hearing to the affected parties, and the opportunity of natural
justice for hearing must be given to all the affected parties, As per natural
justice opportunity of hearing must be given each and every case.
4.5
Evidence
That
the Commissioner is required to issue notices to the affected parties, the
opportunity of hearing is mandatory, no order can be passed without giving the
opportunity of hearing to the affected parties, and the opportunity of natural
justice for hearing must be given to all the affected parties.
4.6
Ex-Parte (Order in violation of natural justice.
The
Empolyees’ Compensation Commissioner power is defined under section 23 of the
Act “Power and Procedure of Commissioners” The Commissioner is required to send
the notice of claim to the opposite – respondent, by fixing the proper date and
time to seek proper reply on a claim filed against him within time bound manner
or commissioner may choice in accordance with the law, without proper service
no final order can be passed under the Act, as per natural justice opportunity
of hearing must be given to the affected parties, no claim can be accepted
ex-parte without hearing of the affected parties.
4.7
Award
Application under
section 22 of Employees’ Compensation Act, the Commissioner may issued notice
to the effected parties and after notice defendants – respondents may file
reply the claim filed by the applicant, the Commissioner may required to framed
issue in context of claim whether application of claim is maintainable or not,
or demanded compensation is justified or not, applicant’s claim is justified
under the proper jurisdiction or not, evidences filed in support or dis support
is liable for justifying claim or not and other various aspect are liable to be
check for proper adjudication of the case, then passed the Award if evidence
and oral submission is supported so, called as Award under the Act.
4.8
Ex- Parte Award (Without Giving Opportunity of Hearing)
That the Employees’ Compensation Commissioner has
jurisdiction to decide the claim under the Employees’ Compensation Act 1923 and
Rule 19124, Application for claim
entertain under section 22 of the Act, and Section 10 has been defining Notice
and Claim, in case of claim has been, the commissioner has required to issue
notice to the respondent / (respondents) i.e. opposite party (ies), as per
nature justice provide the opportunity of hearing if the notice has been served
upon the respondent(s), even after service of notice parties did not appear in
the proceeding or after appearance disappear again, Commissioner has ample to
proceed in the matter ex-parte and in the situation of non-appearance of the
parties claim has been approved and passed the order which calls ex-parte
Award.
4.9
Recall of Ex-Parte Award – Compensation
As per section 6 of the Employees Compensation Act 1923,
the Commissioner has no power to review his own order regarding an order passed
allowing the claim partly or fully or rejected partly or fully, the Act is very
much silent on review of Award or rejection of Award, as per section only part
of the payment may allow and disallow power has been assigned and monthly
payment can be ordered under the section 6 in the provision of Review, Recall
is not provided under the Act 1923.
4.9.1
Recall Application under the Workmen’s Compensation Rules, 1924
Any order passed by the Employees’ Compensation
Commissioner under the Employees’ Compensation Act 1923, its rule i.e.
Workmen’s Compensation Rule 1924, Rule 41 is provided that the Employee’s
Compensation Commissioner is having the power of CPC[24]
i.e. first schedule Order 5 Rule 9 to 13 and 15 to 30 and other relevant order
and rules of CPC Rule 41 of Workmen’s Compensation Rule 1923 is reproduced
here, “Rule 41of the Workmen’s Compensation Rule 1924
“Certain provisions of Code of Civil
Procedure, 1908, to apply.—Save as otherwise expressly provided in the Act or
these Rules the following provisions of the First Schedule to the Code of Civil
Procedure, 1908, namely, those contained in Order V, Rules 9 to 13 and 15 to
30: Order IX; Order XIII, Rules 3 to 10; Order XVI, Rules 2 to 21; Order XVII;
and Order XXIII, Rules 1 and 2, shall apply to proceedings before
Commissioners, in so far as they may be applicable thereto: Provided that—
(a) for the purpose of facilitating the
application of the said provisions the Commissioner may construe them with such
alterations not affecting the substance as may be necessary or proper to adapt
them to the matter before him;
(b) the Commissioner may, for sufficient reasons, proceed otherwise
than in accordance with the said provisions if he is satisfied that the
interests of the parties will not thereby be prejudiced.”[25]
4.9.2
Setting aside decrees ex parte under the Code of Civil Procedure, 1908
That the Employee’s Compensation Rule 1924, Rule 41 is
providing that the recall of ex parte award / order the provision of CPC Order
9 Rule 13 and 15 to 30 is applicable Employee’s Compensation Rule 1924, for
setting aside decrees ex parte, relevant provision are reproduced here, “The Code of Civil Procedure, 1908Order 9
Rule 13 (setting aside decree ex parte)Order 9 Rule 13 is quoted below“ In any case in which a decree is passed ex-parte against a defendant, he
may apply to the Court by which the decree was passed for an order to set it
aside; and if he satisfies the Court that the summons was not duly served, or
that he was prevented by any sufficient cause from appearing when the suit was
called on for hearing, the Court shall make an order setting aside the
decree as against him upon such terms as to costs, payment into Court or
otherwise as it thinks fit, and shall appoint a day for proceeding with the
suit;
Provided that where the decree is of such a nature that it cannot be set
aside as against such defendant only it may be set aside as against all or any
of the other defendants also
Provided further that no Court shall
set aside a decree passed ex-parte merely on the ground that there has been an
irregularity in the service of summons, if it is satisfied that the defendant
had notice of the date of hearing and had sufficient time to appear and answer
the plaintiff's claim.
Explanation:- Where there has been an
appeal against a decree passed ex parte under this rule, and the appeal has
been disposed of on any ground other than the ground that the appellant has
withdrawn the appeal, no application shall lie under this rule for setting a side
that ex parte decree”[26]
That the act is totally silent on the position of
ex-parte proceedings, and if the proceedings initiated and proceeded as
ex-parte then what procedure may be adopted for the respondent / respondents
appearance, Legislation has not discuss on the point of appearance and non
appearance of the respondent what process may be adopted if the Court is
proceeded non appearance of the opposite parties – defendants, only Workmen’s
Compensation Rule 1924 of Rule 41 is provided that the provision of Code of
Civil Procedure will be applicable that order 9 rule 13, 15 to 30 will apply,
that the Legislation has left the provision of Recall and Actual Review in
Employee’s Compensation Act, therefore providing in Rule is not sufficient
therefore Act with regard to extent of Recall and Actual Review is required for
adequate and equal justice of litigant and also to the defendant – respondent,
for equal treatment either wise effected party may loss and injury which cannot
be compensated in any manner.
4.10
Provision of Appeal against the Judgement and Award passed by Commissioner Employee’s
Compensation Act, 1923
That claim application has been filed under section 22 before
Commissioner of the Employees Compensation Act 1923, after notice to the all
proper parties, and giving opportunity of hearing to the effected parties
required under the law, the opportunity of hearing has not been given by any
reasons then order become ex-parte, and order and award is questionable, on the
application of Review and Recall of respondent same is required again
consideration by the Commissioner, Section 30 is providing for Appeal against
any order passed by the Commissioner of Employee’s Compensation Act 1923, the
provision of section 30 of Employees Compensation Act, 1023 is produce here
with,
“ 30 Appeals.
(1) An appeal shall lie to the High
Court from the following orders of a Commissioner, namely:—
(a) an order awarding as compensation a
lump sum whether by way of redemption of a half-monthly payment or otherwise or
disallowing a claim in full or in part for a lump sum;
[(aa) an order awarding interest or
penalty under section 4A;]
(b) an order refusing to allow
redemption of a half-monthly payment;
(c) an order providing for the
distribution of compensation among the dependants of a deceased 153 [employee],
or disallowing any claim of a person alleging himself to be such dependant;
(d) an order allowing or disallowing
any claim for the amount of an indemnity under the provisions of sub-section
(2) of section 12; or
(e) an order refusing to register a
memorandum of agreement or registering the same or providing for the
registration of the same subject to conditions:
Provided
that no appeal shall lie against any order unless a substantial question of law
is involved in the appeal, and in the case of an order other than an order such
as is referred to in clause (b), unless the amount in dispute in the appeal is
not less than three hundred rupees: Provided further that no appeal shall lie
in any case in which the parties have agreed to abide by the decision of the
Commissioner, or in which the order of the Commissioner gives effect to an
agreement come to by the parties: [Provided further that no
appeal by an employer under clause (a) shall lie unless the memorandum of
appeal is accompanied by a certificate by the Commissioner to the effect that
the appellant has deposited with him the amount payable under the order
appealed against.]
(2) The period of limitation for an
appeal under this section shall be sixty days.
(3) The provisions of section 5 of [the
Limitation Act, 1963 (36 of 1963)], shall be applicable to appeals under this
section.[27],”
There is several other
question which are liable to deal and discuss here, in Case of New India
Assurance Co. Versus M. Jayarama Naik, (1984 ) 1 LLJ 171 (Ker) (DB) whether
limitation Act is applied or not the Hon’ble Kerala High Court has held in the
Case of New India Assurance Co. (supra) limitation Act is applied and
distinguishing Central Engineering Corpn. Dorai Raj AIR 1960 Ori 39
4.10.1
Maintainability of Appeal under section 30 against the Judgement and Award
passed by Commissioner Empolyee’s Compensation Act, 1923
That on the position of maintainability there are several
judgement of the various Hon’ble Courts which are discuss here
Maintainability of appeal. An
appeal filed by the insurer is not maintainable in the absence of depositing
the amount of compensation. United India Insurance Co. Ltd. v. Gulam Qadir
Dhar, (1993) 2 Cur LR 308: (1993) 2 LL 9:1993 ACJ 288(J&K). See also
KoiliBewa v. V. Akshaya K. Mishra, (1994) 2 LUJ71:(1994) 2 Cur LR 477: (1944) 2
LLN 651. See also United India Insurance Co. Ltd. v. Kashimsab, 1993 Lab IC
2241: (1993) 2 Cur LR 328: (1994) 1 LL 500(Karn.) (DB); National Insurance Co.
Ltd. v. Narendra Sarnal, 1993 ACI 1095 (Ori); New India Assurance Co. Ltd. v.
Mohinder Singh, 1986 AC 1101 (MP); New India Assurance Co. Ltd. v. M. Jayarama
Naik, 1982 ACJ 3: (1981) 43 FLR 62: (1984) 1 LLI 171 (Ker)(DB); Oriental
Insurance Co. Ltd. v. Renu Devi, (1997) 2 TAC 418: (1997) 2 LLN 1171: (1997) 2
LL 10 (Pat). But see 5.D. Sharma v. Ramesh Mahakud, 1993 ACI 385 (Ori);
National Insurance Co. Ltd. v. Saifuddin, 1992 AC 763; United India Insurance
Co. Ltd. v. Sk. Alimuddin, (1995) 1 LUI 488: (1995) 1 Cur LR 22: 1995 ACI 1227
(AP); New India Assurance Co. Ltd. v. Sankar Behera, (1988) 2 Cur LR 279: 65
Cut LJ 47 (Ori); New India Assurance Co. Ltd. v. Manorama Sahu,1994) 1 LLN
819:(1993) 2LIN 332: (1993) 2 ACI 930 (Ori); Oriental Insurance Co. v. Lalita
Bai, (1997) 75 459 (MP): Oriental Insurance Co., Ltd. v. VasanthaPramberHandre,
1997 Lab IC-2561 (Kam).
Chapter XI, MV Act, 1988
(containing Section 149) is inapplicable to proceedings under the 1923 Act
Hence defences available to insurer in appeal under Section 30, 1923 Act are
not limited to defences available to insurer under Section 149, MV Act, 1988.
Subject to limitations contained in Section 30, 1923 Act, an appeal would be
maintainable before High Court under the 1923 Act, National Insurance Co. Ltd.
v. Maston, (2006) 2 SCC 641:2006 SCC (185) 401
Scope of right of appeal is
the same for the employer as it is for the workman, Om Parkash BotishRanjit,
(2008) 12 SCC 212. No appeal is maintainable under Section 30 against an order
rejecting an application for recall of ex parte order, Shravan Pal Singh v.
Pooran Nath Goswami, (1996) 2 Cur LR 865: (1996) 2 LLN 980 (1996) 74 FLR
1853.An application under Order 9 of the CPC, 1908, for setting aside an ex
parte order can be filed before the Workmen's Compensation Authority by virtue
of Rule 41. But, his order dismissing such application is not appealable under
Rule 1 of Order 43 of the Code or even u/s 30 of the Act. Praveen Industries v.
Bandwar Singh, (1990) 1 LLN 915: (1990) 2 LL 412 (Karn) (08).Where the remedy
of appeal was available but relief was sought instead by means of a writ
petition it was held that such a writ petition could be rejected on the ground
of alternative remedy. C.S. Azad University of Agriculture and Technology v.
Court of Workmen Compensation Commr., 2003 Lab IC 140 (All).No appeal lies
against a finding of Commissioner that claimant is workman which is based on
evidence as it is essentially finding of fact. New India Assurance Co. Ltd. v.
Karunakar Bhal, 1998 Lab IC 3254 (Ori). The question whether a workman has or
has not retired after obtaining full wages and pensionarybenefits is a question
of fact on which no appeal lies. Chandametto Colliery, Western Coalfields Ltd.
v. Mangloo,1997 ACI 544 (MP).Whether the claimant was working under the
appellant on the date of occurrence of the accident is a question of fact
decided by the Commissioner and same cannot be interfered within appeal. State
of J&K v Amar Chand, 1997 Lab IC 817 (J&K). Second appeal. The
dismissal of appeal for non-observance of the requirements of deposit
andcertificate would in all cases operate as res judicata against the appellant
for filing a second appeal againstthe same award. J&K State Forest
Corporation v. Robail Singh, (1993) 2 LLI 502: (1993) 2 Cur LR 765: (1993)67
FLR 1060(J&K).Substantial question of law. The first proviso to Section
30(1) states that no appeal shall lie against any order unless a substantial
question of law is involved. The said proviso has been incorporated into the
section with the object that the workers shall not be dragged into unending
litigation in the highest forums, Raveendran v. Somavally, (1996) 1 LU 325:
1995 Lab IC 2765: 1995 LLR 903 (Ker)(DB).An appeal under Section 30 lies to the
High Court only a substantial question of law. Rajiyabiv.. Mackinnon Mackenzie
& Co. (P) Ltd., AIR 1970 Bom 278: 1970 AC 350: (1970) 2 LLJ 320; Boys Town
Society, Tirumangalam v. V. Palani, (1997) 77 FLR 229 (Mad); Dwarka Arm Factory
v. R. Khaja Hussain, (1997) 2 Cur LR 741 (Kam). So where the appellant has not
been able to formulate any substantial question of law involved, appeal
deserves to be dismissed. Shipra Bhowmick v. Presiding Officer, (1996) 2 TAC
248 (MP).The phrase 'substantial question of law must be given a wider
construction than Section 110 of the Civil Procedure Code. It should cover even
cases in which the Commissioner has clearly misdirected him self on a question
of law such as awarding compensation without giving notice to employer, AIR
1958 All 564. This section does not exclude application of Section 12 of the
Indian Limitation Act. Where the order is not pronounced in the presence of the
parties and the information is given only on a subsequent date then limitation
will start from such a date. Brahuman v. Balu, AIR 1955 NUC 1603 (Punj). A
substantial question of law exists where there is some doubt or difference of
opinion. Bhagwandasv.Pyarelal, AIR 1954 MB 59. An appeal lies against the order
directing payment of lump sum compensation. A memorandum of appeal without a
certificate from the Commissioner cannot amount in law to a formal presentation
of an appeal. Bhurangya Coal Co. Ltd. v. Sahebajan, AIR 1956 Pat 299. An appeal
without a certificate of deposit within time is barred by limitation. Sadaram
v. Chhotu Ram, AIR 1957 MP 26. Mere admission of a belated appeal does not mean
implied condonation of delay. Managing Director, Orissa SRTC v. Surendra Kumar,
1986 Lab IC 1977 (Ori): (1987) 1 LLN 358. Proviso to Section 30 mandates that
no appeal shall lie unless substantial question of law is involved in it,
Oriental Insurance Co. Ltd. v. Nagaraj, (2008) 2 CTC 407.Finding of fact cannot
be a foundation for framing the substantial questions of law, Jamila Begam v.
The Scheme of Section 30 of the Workmen's Compensation Act itself is very clear
and said section contemplates appeal against the order awarding compensation
and against order awarding interest on penalty. The appeal is to be entertained
only if substantial question of law is involved and in case of any appeal filed
by the employer, the appeal is required to be accompanied by certificate of
Commissioner that the employer has deposited with him amount payable under
order, appealed against, Nanda v. Bhikaji Ghanshyam Shingane, (2009) 1 Mah LJ
422.Appeal to High Court against award of
Commissioner. When neither any substantial question of law nor any question of
law arose, High Court interfering with award and reducing compensation by
merely mentioning that it is in "interest of justice", held,
unwarranted and unsustainable, Jaya Biswal v. IFFCO Tokio General Insurance Co.
Ltd., (2016) 11 SCC 201: (2016) 3 SCC (Civ) 775.Workmen Compensation
Commissioner is last authority on facts. Parliament restricted scope of appeals
under Section 30 only to substantial questions of law, being welfare
legislation. Interference with findings of facts by High Court is not
permissible when no perversity was found in findings of fact of authorities
below. Interference with findings of fact, held, impermissible in such
circumstances, Golla Rajanna v. Divi. Manager, (2017) 1 SCC 45: (2017) 1 SCC
(Civ) 320.Denial of compensation awarded by Commissioner for death of deceased
driver merely on submission of Insurance Company before High Court that
deceased was owner of vehicle, without any basis, is unsustainable, Palwinder
Kaur v. Oriental Insurance Co. Ltd., (2016) 13 SCC 317. Improper disposal of
appeal.-Judgment of High Court setting aside order of Employee's Compensation
Commissioner awarding Rs 8,70,576 compensation for injuries sustained by appellant
claimant without hearing him, not sustainable. Matter remitted to High Court to
decide appeal filed by Insurance Company afresh, after granting opportunity of
hearing to appellant claimant, Mohd. Anwar v. Oriental Insurance Co. Ltd.,
(2018) 3 SCC 300.[28]
-------
CASE AALYSIS
5.1 Introduction
That the Employee’s Compensation Act 1923 is very
much silent on the point of review and recall, but Workmen’s Compensation Rule
1924, Rule 41 is providing that the Commissioner of Employee’s Compensation
Act, 1923, having power of Civil Court and Order 9 Rule 13 of Code of Civil
Procedure, 1908 applied, therefore rule 41 is providing them for recalling of
ex parte order/award passed by the Commissioner of Employees Compensation Act
1923, the provision of Recall and Actual Review as provided in CPC, the
legislature has not inducted or introduced in Employee’s Compensation Act 1923 therefore
in deciding / in proceeding of the case of claim learned judges are very much differing
opinion that the Employee’s Compensation Commissioner has no power to recall
his own order either on merit or on ex parte and some of learned judges are
delivering judgement on the basis of the Rule, holding that that the Employee’s
Compensation Commissioner has the power to recall its own order, and some of
the Hon’ble Court are in opinion that the Commissioner of Employee’s
Compensation Act, 1923 has no power to recall its own order either on merit or
on ex-parte, Hon’ble Court has given different – different judgements/ orders,
most of the orders of the learned judges are per incuriam, finding are bad in
the eye of law, and also against the precedent which are earlier pronounced by
the other Hon’ble Court, finding of orders are deferring to one other,
therefore is liable to discuss here in detail and find the problem and solution
to the same, important judgement are quoted and discuss here;
5.2 Table of case on the point of Employee’s
Compensation Act, 1923, the Commissioner has power to recall Ex-Parte Order
Srl |
Party Names |
Dt of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case No. |
1 |
Satnam Verma Vs. Union of India |
09.12.1984 |
SCI |
7, 8, 9, 10 |
AIR1985SC 294 |
2 |
Grindlays Bank LTD Vs Central Govt.
Industrial Tribunal & Ors |
12.12.1980 |
Supreme Court |
Para 2nd, 3rd, 4th, 5th
|
1981 AIR 606 1981SCR (2) 341 |
3 |
United India Insurance Co. Ltd. Vs. Workmen’s
Compensation |
17.01.1996 |
Allahabad |
14 |
1997 ACJ 1028 |
4 |
Syndet (India) Private Ltd Vs. Presiding
Officer |
25.01.2005 |
Allahabad |
3 |
2005 (2) ESC 1239 |
5 |
Raj Bahadur Vs. Presiding Officer |
08.01.2010 |
Allahabad |
1st & 2nd para |
Wrt - No. 575 of 2010 |
6 |
M/s Universal Cylinders Limited Vs. The
Presiding Officer |
31.01.2020 |
Allahabad |
Last page |
Writ C No. 15333 of 2019 |
7 |
Kolandhayee Vs. The Commissioner Labor
(Commissioner Workmen’s Compensation Act) |
19.04.2010 |
Madras |
Last page |
W.A. No. 2505 of 2001 |
8 |
A.V. Varghese Vs. N.K. Kumaran |
10.08.2011 |
Kerala |
4 and 5 |
WP (C) No. 14248 of 2009 |
5.3 Table of cases, which are not giving power to
Commissioner of Employee’s Compensation, Act, 1923 with regard to recall of
Ex-Parte Order
Srl |
Party Names |
Date of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case No. |
1 |
Marshal Securities Vs. The
Presiding Officer Labour Court (2) UP Kanpur and 2 others |
13.09.2006 |
Allahabad High Court |
31 and 34 |
Writ – C No. 33855 of 2006 |
2 |
Mohd. Ikram & Another Vs. Dy. Labour
Commissioner, U.P. Saharanpur and others |
07.05.2013 |
Allahabad High Court |
6 |
Civil Misc Writ Petition No. 15504 of 2011 |
3 |
Balaji Stone Crusher Throu, Partner Kiran Saini
and other connected matter Vs. State of UP throu Geology and Mines and Ors |
02.08.2022 |
Allahabad High Court, Lucknow |
11 |
Writ – C No. 7606 of 2019 |
4 |
Raman AgnihotriVs. Commissioner, Workmen’s
Compensation, Kanpur & Ors |
28.11.2008 |
Allahabad High Court |
21, 25 |
Civil Misc. Writ Petition No. 61531/2008 |
5 |
Mayan Vs. Mustafa and another |
08.11.2021 |
SCI |
2 |
Civil Appeal No. 6614 of 2021 |
6 |
Sangam Tape Co. Vs. Hans Raj |
27.09.2004 |
SCI India |
6, 7, 8, 12 |
Civil Appeal No. 2064 of 2002 |
7 |
Nirmla and Another Vs. State of Uttar Pradesh and
others |
25.05.2022 |
High Court Lucknow |
1, 2, 3 and 4 |
Writ-C No. 2793 of 2022 |
8 |
Nimla and Another Vs. State of UP & Others |
22.12.2022 10.01.2023 |
High Court, Lucknow |
1 and 2 |
Writ – C No. 9224 of 2022 |
5.4 Satnam Verma Vs. Union of India (UoI) decided on 19
October 1984 Supreme Court finding recall of ex parte order and award with
regard to power of Employee’s Compensation of Commissioner Judgement Dt. 09.12.198 Reported in AIR 1985 SC 294 & 1984 Supp (1) SCC
712
That the Hon’ble Apex Court in Case of Satnam
Verma Vs. Union of India[29]
has decided the issue, that the Commissioner of Employee’s Compensation Act,
1923 is having power to recall his own order if passed is in nature of ex
parte, without giving the opportunity of hearing, providing natural justice to
the effected parties is necessary, brief of the case of Satnam Verma Case is
reproduce here as under, “ Art industrial dispute arising out of the
termination of service of the appellant who was employed as a conductor, by the
Chandigarh Transport Undertaking was referred to the Labour Court for
adjudication and it was numbered as Reference No. 55 of 1981. On receipt of the
notice of the reference, the workman and the employer both filed, their
respective statements. The reference came up for hearing on February 23, 1982
and when it was called out neither the appellant nor his representative one
Shri M.L. Gupta was present. The Labour Court directed the matter to be heard
ex parte. After making that Order, the Labour Court proceeded to observe that
as no evidence has been led by the appellant, there is nothing to show that the
termination of service was illegal or invalid, and concluded that the appellant
was therefore, not entitled to any relief. Soon thereafter an application was
moved by the appellant for recalling the Order disposing of the reference ex
parte. It was stated in the application that the date given to the appellant to
appear before the Court was February 26, 1982 and not February 23, 1982 when
the reference was disposed of ex parte. The employer contended that as the
award has already been published in the Gazette there is no provision for recalling
the award made ex parte nor restoring the case to file. In the meantime the
presiding officer of the Labour Court was transferred arid some other presiding
officer was appointed and before him the application came up for hearing. The
Labour Court held that once the award was published in the Gazette, the Labour
Court has no jurisdiction to recall the award or to set aside the ex parte
award and to restore the case to file. The appellant moved the High Court
under Article 226 of the Constitution,[30]” from the perusal para 3 of the Satnam (supra)
case which decided by the Hon’ble Apex it is made clear that the Hon’ble Apex
Court has decided that the issue pertaining to exparte order is liable to be
quashed if the approaching – aggrieved persons has shown sufficient cause for
non – appearance.
5.4.1 Satnam Verma Vs. Union of India (UoI) para 6, 7, 8, 9
and 10 is quoted below
“7.
In the case of Grindlays Bank Ltd., the specific contention canvassed was
whether where an ex parte award is made and published in the Official Gazette,
the Industrial Tribunal has the jurisdiction to entertain the application for
setting it aside if sufficient cause is shown for absence of appearance on the
date on which an ex parte award was made and it was answered in the
affirmative. this Court referred to Rule 22 and Rule 24(b) of the Industrial
Disputes (Central) Rules, 1957 and held that the Industrial Tribunal had the power
to pass an Order setting aside the ex parte Order. In reaching this conclusion,
the Court observed that if the Tribunal has the power to proceed ex parte as
provided by Rule 22, it should be considered to be endowed with such ancillary
or incidental powers as are necessary to discharge its functions effectively
for the purpose of doing justice between the parties. The. Court then proceeded
to examine the scheme of the relevant rules and observed that Rule 22
unequivocally confers jurisdiction on the Tribunal to proceed ex parte. The
Tribunal can proceed ex parte if no sufficient cause for absence of a party is
shown. This power was interpreted to comprehend that if sufficient cause was
shown which prevented a party from appearing, then in the terms of Rule 22, the
Tribunal will have had no jurisdiction to proceed ex parte and consequently, it
must necessarily have power. to set aside the ex parte award. The Court in
terms observed that the power to proceed ex parte is subject to the fulfillment
of the condition laid down in Rule 22 and therefore it carried with it the
power to enquire whether or not there was sufficient cause for the absence of a
party at the hearing. The Court then referred to Rule 24(b) and held that where
the Tribunal or other body makes an ex parte award, the provisions of Order IX,
Rule 13 of the CPC are clearly attracted and it logically follows that the
Tribunal was competent to entertain an application to set aside an ex parte
award. The Court then proceeded to examine the Contention that once an award is
published in the Official Gazette, be it an ex parte one, does the Tribunal
become functus officio and therefore, will have no jurisdiction to set aside
the ex parte award and that as contended before us the appropriate Government alone
could set it aside and rejected it holding that no finality is attached to an
ex parte award because it is always subject to its being set aside on
sufficient cause being shown. The Court held that the Tribunal had the power to
deal with an application properly made before it for setting aside the ex parte
award and pass suitable Orders. We have extensively referred to this decision
because it effectively answers all the limbs of the contention canvassed before
us and which unfortunately, found favour with the Labour Court and the High
Court :
8. It needs hardly to be pointed out that Rule 22 and Rule
24(b) of Industrial Disputes (Central) Rules, 1957 are in parimateria with
Rules 22 and 24 of the Industrial Disputes (Punjab) Rules, 1958 which are
applicable to the facts of the present case. Therefore, the decision of this
Court would mutatis mutandis apply in the matter pf interpretation of the
Punjab Rules. It must follow as a necessary corollary that the Labour Court as
well the High Court denied to itself the jurisdiction vested in it to entertain
an application for setting aside an ex parte award and reached an erroneous
conclusion.
9. A feeble attempt was made to urge before us that the
High Court accepted the view of the Tribunal that on merit no case was made out
for setting aside an ex parte Order. We remain unconvinced. In fact the Labour
Court was overwhelmed by its erroneous approach that it had no jurisdiction to
entertain an application for setting aside an ex parte Order and that appears
to have influenced its decision in rejecting the application for setting aside
the ex parte award.
10. Turning to the facts of the case, the first date of the
hearing of the reference was, according to the Labour Court, February 23, 1982
and the date was fixed for framing issues, leading evidence and disposal of the
reference, a sort of an omnibus stage. That apart according to the appellant,
he was given the date February 26, 1982. He appeared on Feb. 26, 1982, when he
found that the matter was disposed of ex parte on February 23,1982. On the same
day, he moved an application pointing out that his information about the date
was incorrect. This seems to be a bona fide assertion not seriously
controverted. The Labour Court was therefore in error in rejecting this request
promptly made. We are therefore, satisfied that both the Labour Court and the
High Court were in error in rejecting the application even on merits.”
The Hon’ble Apex Court in para 11 of the supra
judgement and allowed the special leave petition and set aside the order of the
Hon’ble High Court rejecting the writ petition as well as order passed by the
labor court and further direction issued that the authority shall decide the
case afresh after giving opportunity of hearing to the parties effected in the
case with the time bound direction to decide the case in priority basis and
dispose the case within four month from the date of the pronouncement by the
Hon’ble Apex Court, it is very much clear from the supra judgement that the ex
parte order having no weight if parties file bona fide application for recall
and recall application is maintainable in view of the above discussion of the
order of the apex Court.
As the judgement of the
Hon’ble Apex delivered in case of Satnam Verma (Supra) the Hon’ble Apex Court
has held that the judgement and order passed by the authority without giving
the adequate hearing and natural justice has not been provided that the order
having no value if the bonafide and effected person has filed application for
recall and requested for providing hearing and putting the evidence, the
authority can not denied the same, the scope of natural justice has widely
discuss in the judgement of the apex court, in fact the provision in act of
Employee’s Compensation Act, 1923 has not given power to recall and review the
ex parte order, in fact the Legislature has error the making the law, and
required for consideration and required for amendment and liable to be added,
if the Legislature may not intent to do the same, the Hon’ble Courts may can
consider and by way of judicial pronouncement can add the power, I can assume
that the Hon’ble Apex Court by way of judicial pronouncement has given the
judgement, in case there is no power in the Act of Employee’s Compensation Act,
1923, even though Commissioner of Employee’s Compensation Commissioner has
power to recall the ex- parte order in terms of natural justice.
Finding of judgement is
as under
A. Ex-Parte passed
B. Recall filed.
C. Presiding Officer Transferred
D. Next Join PO’s of Tribunal has stated that,
Tribunal / Court having no jurisdiction and rejected the same.
E. Writ Petition has been filed in the High Court,
same has been rejected without any relief
F. Matter come in to Appeal, in Supreme Court of
India, The Hon’ble Apex made observation that the Tribunal has power to recall
the ex- parte order / award if the cause is sufficient.
5.5 Judgement of Apex Court (Supreme Court of
India) In Case of Grindlays Bank LTD Vs. Central Government Industrial Tribunal
& Ors
That the issues has been discussed by the Hon’ble
Apex, with regard to power of recalling ex-parte order passed by the Labor
Tribunal, even though the order passed ex -parte on merit same is also liable
to recall and after recalling to the same, opportunity of hearing to the
effected party shall be provided, and further settled that the matter may
decided on marriage after hearing the effected parties, similar situation in
case of Employee’s Compensation Act, 1923, the Commissioner has power to recall
of Ex- Parte Award / orderpassed in exercising the jurisdiction of the Employee’s
Compensation , Act 1923 the Commissioner is fully competent and all the power
under order 9 rule 13 of Code of Civil Procedure, 1908, is vested in his power, the power of Code of
Civil Procedure 1908, will be support and Order 9 rule 13 of Code of Civil
Procedure 1908 will be apply, judgment of Grindlays Bank (supra) is quoted
below,
“CIVIL APPELLATE
JURISDICTION: Civil Appeal No. 2355 of 1979.
Appeal by
Special Leave from the Judgment and Order dated 25-7-1979 of the Calcutta High
Court in Appeal No. 3/1978.
G.B. Pai, Mrs.
Rashmi Dhariwal, Miss Bina Gupta, Mr. Praveen Kumar and J.R. Das for the
Appellant.
Amlan Ghosh for
Respondents 3-4.
The Judgment of
the Court was delivered by SEN, J. This is an appeal by special leave from a
judgment of the Calcutta High Court, by which it refrained from interfering
with an order of the Central Government Industrial Tribunal, Calcutta,
constituted under s. 7A of
the Industrial Disputes Act, 1947, setting aside an ex parte award made by it.
The facts
giving rise to the appeal are these: The Government of India, Ministry of
Labour by an order dated July 26, 1975 referred an industrial dispute existing
between the employers in relation to the Grindlays Bank Ltd., Calcutta and
their workmen, to the Central Government Industrial Tribunal in exercise of its
powers under s. 10 of
the Industrial Disputes Act, 1947 for adjudication. By a notice dated
March 6, 1976 the Tribunal fixed peremptory hearing of the reference for May
28, 1976, but the hearing was adjourned from time to time on one ground or
other. Eventually, the hearing of the reference was fixed for December 9, 1976.
On December 9, 1976 counsel appearing on behalf of respondent No. 3, the
Commercial establishments Employees Association, representing respondents Nos.
5 to 17, sought an adjournment on the ground that the General Secretary of the
Association had suffered a bereavement as his father had died on November 25,
1976, and, therefore, he had to leave to perform the shradhha ceremony falling
on December 9, 1976. In support of his prayer for adjournment, the counsel produced
a telegram, but the Tribunal refused to grant any further adjournment and
proceeded to make an ex parte award. On the basis of the statement recorded by
the manager of the appellant, the Tribunal held that the respondents Nos. 5 to
17 were employed as drivers by the officers of the appellant and were not the
employees of the appellant and, therefore, they were not entitled to the
benefits enjoyed by the drivers employed by the appellant. On January 19, 1977,
respondent No. 3, acting for respondents Nos. 5 to 17 applied for setting aside
the ex parte award on the ground that they were prevented by sufficient cause
from appearing when the reference was called on for hearing on December 9,
1976. The Tribunal by its order dated April 12, 1977 set aside the ex parte
award on being satisfied that there was sufficient cause within the meaning of
O. IX, r. 13 of the Code of Civil procedure, 1908. The appellant challenged the
order passed by the Tribunal setting aside the ex parte award but the High
Court declined to interfere.
Two questions
arise in the appeal, namely (1) whether the Tribunal had any jurisdiction to
set aside the ex parte award, particularly when it was based on evidence, and
(2) whether the Tribunal became functus officio on the expiry of the 30 days
from the date of publication of the ex parte award under s. 17, by reason of sub-s. (3)
of s. 20 and,
therefore, had no jurisdiction to set aside the award and the Central
Government alone had the power under sub-s. (1) of s. 17-A to set it
aside.
It is contended
that neither the Act nor the rules framed there under confer any powers upon
the Tribunal to set aside an ex parte award. It is urged that the award
although ex parte, was an adjudication on merits as it was based on the
evidence led by the appellant, and, therefore, the application made by
respondent No. 3 was in reality an application for review and not a mere
application for setting aside an ex parte award. A distinction is sought to be
drawn between an application for review and an application for setting
aside an ex parte award based on evidence. The contention is that if there is
no evidence led before the Tribunal, there may be power to set aside an ex parte
award, but if the award is based on evidence, the setting aside of the award
cannot but virtually amount to a review. In dealing with these contentions, it
must be borne in mind that the Industrial Disputes Act, 1947
is a piece of legislation calculated to ensure social justice to both employers
and the employees and advance progress of industry by bringing harmony and
cordial relations between the parties. In other words, the purpose of the Act
is to settle disputes between workmen and employers which if not settled, would
result in strikes or lockouts and entail dislocation of work, essential to the
life of the community. The scheme of the Act shows that it aims at settlement
of all industrial disputes arising between the capital and labour by peaceful
methods and through the machinery of conciliation, arbitration and if
necessary, by approaching the Tribunal constituted under the Act. It,
therefore, endeavours to resolve the competing claims of employers and
employees by finding a solution which is just and fair to both the parties.
We are of the
opinion that the Tribunal had the power to pass the impugned order if it
thought fit in the interest of justice. It is true that there is no express
provision in the Act or the rules framed thereunder giving the Tribunal
jurisdiction to do so. But it is a well-known rule of statutory construction
that a Tribunal or body should be considered to be endowed with such ancillary
or incidental powers as are necessary to discharge its functions effectively
for the purpose of doing justice between the parties. In a case of this nature,
we are of the view that the Tribunal should be considered as invested with such
incidental or ancillary powers unless there is any indication in the statute to
the contrary. We do not find any such statutory prohibition. On the other hand,
there are indications to the contrary.
Sub-section (1)
of s. 11 of the
Act, as substituted by s. 9 of the Industrial Disputes (Amendment & Miscellaneous Provisions) Act,
1956 is in these terms:
"11.
(1) Subject to any rules that may be made in this behalf, an arbitrator, a
Board, Court, Labour Court, Tribunal or National Tribunal shall follow such
procedure as the arbitrator or other authority concerned may think fit."
The words
'shall follow such procedure as the arbitrator or other authority may think
fit' are of the widest amplitude and confer ample power upon the Tribunal and
other authorities to devise such proce-
dure as the
justice of the case demands. Under cls. (a) to
(c) of sub-s.
(3) of s. 11, the
Tribunal and other authorities have the same powers as are vested in civil
courts under the Code of Civil Procedure, 1908, of (a) enforcing the attendance
of any person and examining him on oath, (b) compelling the production of
documents and material objects, and (c) issuing commissions for the examination
of witnesses. Under cl. (d) thereof, the Tribunal or such other authorities
have also the same powers as are vested in civil courts under the Code of Civil
Procedure, 1908 in respect of such other matters as may be prescribed. Although
the Tribunal or other authorities specified in s. 11 are not courts but
they have the trappings of a court and they exercise quasi-judicial functions.
The object of
giving such wide powers is to mitigate the rigour of the technicalities of the
law, for achieving the object of effective investigation and settlement of
industrial disputes, and thus assuring industrial peace and harmony. The
discretion thus conferred on these authorities to determine the procedure as
they may think fit, however, is subject to the rules made by the 'appropriate
Government' in this behalf. Part III of the Industrial Disputes (Central)
Rules, 1957 makes rules in this behalf. Rules 9 to 30 are the relevant rules
regulating procedure. State Governments too have made their own corresponding
rules. Except to the extent specified in sub-s.(3) of s. 11 of the Act and
the rules framed thereunder, the provisions of the Code of Civil Procedure,
1908 are not applicable to proceedings before the authorities mentioned in
sub-s.(1). The provisions of the Evidence Act, in their strict
sense, likewise do not apply to proceedings before the authorities.
Nevertheless, all these authorities being quasi-judicial in nature objectively
determining matters referred to them, have to exercise their discretion in a
judicial manner, without caprice, and according to the general principles of
law and rules of natural justice.
Rule 22 of the
Industrial Disputes (Central Rules), 1957 framed by the Central Government in
exercise of its powers under s.
38 of the Act, provides:
"22.
If without sufficient cause being shown, any party to proceedings before a
Board, Court, Labour Court, Tribunal, National Tribunal or arbitrator fails to
attend or to be represented, the Board, Court, Labour Court, Tribunal, National
Tribunal or arbitrator may proceed, as if the party had duly attended or had
been represented."
Rule 24(b)
provides that the Tribunal or other body shall have the power of a civil court
under the Code of Civil Procedure, 1908 in the matter of grant of adjournments.
It runs thus:
"24.
In addition to the powers conferred by the Act, Boards, Courts, Labour Courts,
Tribunals and National Tribunals shall have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908, when trying a suit, in
respect of the following matters, namely;
(a)
......................
(b)
granting adjournment;"
When sub-s. (1)
of s. 11 expressly
and in clear terms confers power upon the Tribunal to regulate its own procedure,
it must necessarily be endowed with all powers which bring about an
adjudication of an existing industrial dispute, after affording all the parties
an opportunity of a hearing. We are inclined to the view that where a party is
prevented from appearing at the hearing due to a sufficient cause, and is faced
with an ex parte award, it is as if the party is visited with an award without
a notice of the proceedings. It is needless to stress that where the Tribunal
proceeds to make an award without notice to a party, the award is nothing but a
nullity. In such circumstances, the Tribunal has not only the power but also
the duty to set aside the ex parte award and to direct the matter to be heard
afresh.
The language of
r. 22 unequivocally makes the jurisdiction of the Tribunal to render an ex
parte award conditional upon the fulfilment of its requirements. If there is no
sufficient cause for the absence of a party, the Tribunal undoubtedly has
jurisdiction to proceed ex parte. But if there was sufficient cause shown which
prevented a party from appearing, then under the terms of r. 22, the Tribunal
will have had no jurisdiction to proceed and consequently, it must necessarily
have power to set aside the ex parte award. In other words, there is power to
proceed ex parte, but this power is subject to the fulfilment of the condition
laid down in r. 22. The power to proceed ex parte under r. 22 carries with it
the power to enquire whether or not there was sufficient cause for the absence
of a party at the hearing.
Under r. 24(b)
a Tribunal or other body has the powers of a civil court under O. XVII of the
Code of Civil Procedure, relating to the grant of adjournments. Under O. XVII,
r. 1, a civil court has the discretion to grant or refuse an adjournment. Where
it refuses to adjourn the hearing of a suit, it may proceed either under O.
XVII, r. 2 or r. 3. When it decides to proceed under O. XVII, r. 2, it may
proceed to dispose of the suit in one of the modes directed in that behalf by
O. IX, or to make such other order as it thinks fit. As a necessary corollary,
when the Tribunal or other body refuses to adjourn the hearing, it may proceed
ex parte. In a case in which the Tribunal or other body makes an ex parte
award, the provisions of O. IX, r. 13 of the Code are clearly attracted. It
logically follows that the Tribunal was competent to entertain an application
to set aside an ex parte award.
We are unable
to appreciate the contention that merely because the ex parte award was based
on the statement of the manager of the appellant, the order setting aside the
ex parte award, in fact, amounts to review. The decision in Narshi Thakershi v.
Pradyumansinghji is distinguishable. It is an authority for the
proposition that the power of review is not an inherent power, it must be
conferred either specifically or by necessary implication. Sub-sections (1) and
(3) of s. 11 of the
Act themselves make a distinction between procedure and powers of the Tribunal
under the Act. While the procedure is left to be devised by the Tribunal to
suit carrying out its functions under the Act, the powers of civil court
conferred upon it are clearly defined. The question whether a party must be
heard before it is proceeded against is one of procedure and not of power in
the sense in which the words are used in s. 11. The answer to the
question is, therefore, to be found in sub-s. (1) of s. 11 and not in sub-s.
(3) of s. 11.
Furthermore, different considerations arise on review. The expression 'review'
is used in two distinct senses, namely (1) a procedural review which is either
inherent or implied in a court or Tribunal to set aside a palpably erroneous
order passed under a misapprehension by it, and (2) a review on merits when the
error sought to be corrected is one of law and is apparent on the face of the
record. It is in the latter sense that the Court in NarshiThakershi's case held
that no review lies on merits unless a status specifically provides for it.
Obviously when a review is sought due to a procedural defect, the inadvertent
error committed by the Tribunal must be corrected ex debito justitiae to
prevent the abuse of its process, and such power inheres in every court or
Tribunal.
The contention
that the Tribunal had become functus officio and therefore, had no jurisdiction
to set aside the ex parte award and that the Central Government alone could set
it aside, does not commend to us. Sub-section (3) of s. 20 of the Act
provides that the proceedings before the Tribunal would be deemed to continue
till the date on which the award becomes enforceable under s. 17A. Under s. 17A of the Act,
an award becomes enforceable on the expiry of 30 days from the date of its
publication under s. 17.
The proceedings with regard to a reference under s. 10 of the Act
are, therefore, not deemed to be concluded until the expiry of 30 days from the
publication of the award. Till then the Tribunal retains jurisdiction over the
dispute referred to it for adjudication and upto that date it has the power to
entertain an application in connection with such dispute. That stage is not
reached till the award becomes enforceable under s. 17A. In the instant
case, the Tribunal made the ex parte award on December 9, 1976. That award was
published by the Central Government in the Gazette of India dated December 25,
1976. The application for setting aside the ex parte award was filed by
respondent No. 3, acting on behalf of respondents Nos. 5 to 17 on January 19,
1977 i.e., before the expiry of 30 days of its publication and was, therefore,
rightly entertained by the Tribunal. It had jurisdiction to entertain it and
decide it on merits. It was, however, urged that on April 12, 1977 the date on
which the impugned order was passed the Tribunal had in any event become
functus officio. We cannot accede to this argument. The jurisdiction of the
Tribunal had to be seen on the date of the application made to it and not the
date on which it passed the impugned order. There is no finality attached to an
ex parte award because it is always subject to its being set aside on
sufficient cause being shown. The Tribunal had the power to deal with an
application properly made before it for setting aside the ex parte award and
pass suitable orders.
The result,
therefore, is that the appeal must fail and is dismissed with costs throughout.”[31]
Gist of the Case
A. Ex-Parte order has been passed
B. Recall application has been filed for setting aside
of Ex-Parte Order
C. That the Tribunal has set aside
D. Challenge in High Court, same is dismissed without
any relief
E. Order of High Court has been challenged in Supreme
Court, same has been dismissed
5.6 Judgement of Hon’ble High Court Allahabad In
Case of United India Insurance Co. Ltd Vs. Workmen’s
Compensation date of Judgement17.01.19961997 (ACJ 1028
Allahabad High Court giving
finding that the Power of Recall of Ex-Parte Award / order vested in the
Commissioner vested in the Employees Compensation Commissioner, and several
aspect has been discuss by the Hon’ble Court in deciding the aforesaid case and
lastly giving finding that the Employees’s Compensation Commissioner has power
to recall the ex parte order, the order dt. 17.01.1996 is reproduce here as
under,
“United
India Insurance Co. Ltd. vs Workmen'S Compensation ... on 17 January, 1996
Equivalent citations: 1997 ACJ 1028, 1996
(73) FLR 1541, (1996) IILLJ 448 All
Author: D Seth
Bench: D Seth
JUDGMENT D.K. Seth, J.
1. These two writ petitions arise out
of two proceedings initiated under Section 17 of the Workmen's Compensation Act, 1923 arising out of the same accident, in which one
Safdar Miyan and Insar Ahmed had died. The case as made out in Writ Petition
No. 37551 of 1992 is as follows:
2. The respondents No. 3, 4 and 5 as
claimants have made an application under Section 17 of the Workmen's Compensation Act which was registered as Case No. 21/W.C.A./91
against Kafeel Ahmad and others claiming compensation of Rs. 85,428 together
with interest for the death of Safdar Miyan on March 1, 1991 while employed
under the said Kafeel Ahmad, owner of Mini Bus No. U.P. 25-5058.
3. While the case made out in Writ
Petition No. 37550/92 was that the respondents No. 3 and 4 had lodged a claim
under Section 17 of the Workmen's Compensation Act, which was registered as case No. 22/W.C.A./91 against
Kafeel Ahmad, claiming compensation of Rs. 1,06,257 on account of death of
Nihal Beg on March 7, 1991 while employed by the said Kafeel Ahmad, owner of
Mini Bus No. U.P.- 25-5058.
4. The said two cases were allowed by
an order dated May 3, 1992 awarding Rs. 85,428 as compensation in each case,
fixing the liability on the owner. On July 28, 1992 the claimants in both the
cases filed an application for review that though the Insurance Company was a
party, in spite of Section 147 of the Motor Vehicles Act, the authority under the
Workmen's Compensation Act has not fixed the liability of
the Insurer who is liable to pay the compensation. The Insurance company had
filed its objection on Au-
gust 19, 1992 in both the cases. By an
order dated September 21, 1992 the authority under the Workmen'3 Compensation Act had allowed both the application
in both the cases holding that the authority had jurisdiction to review and
that the liability of the Insurer was not taken into account though copy of the
insurance policy was on record and that prior to the application dated July 28,
1992 similar application was filed on June 30, 1992, on which no action having
been taken, second application was filed and, therefore the application was
treated as within time. It is these orders which have been challenged by means
of these two writ petitions.
5. Learned counsel for the petitioner
Insurance Company contends that the Code of Civil Procedure is applicable in a
proceeding under the Workmen's Compensation Act, 1923 (hereinafter referred to as the Act) only to the
extent as provided under Section 23 of the Act namely for the purpose of taking evidence enforcing
attendance of witnesses and compelling production of documents and material
object. By reason of Section 23 of the Act jurisdiction to
review has been clearly excluded inasmuch as though certain specified provision
of the Code of Civil Procedure was made applicable but the provision for review
was never intended to be included.
6. The second contention of the
learned counsel for the petitioner, inter alia, was that the Motor Vehicles Act and the Workmen's Compensation Act are two different enactments. Section 167 of the Motor Vehicles Act, 1988 makes it clear that
if a person is entitled to claim compensation under the Motor Vehicles Act as well as the Workmen's Compensation Act, in that event only one of the proceedings is to be
resorted to. Both cannot be pursued. Therefore, one excludes the other. The
Workmen's Compensation Act does not provide for any
liability of the Insurance Company except as provided under Section 14 of the said Act namely that if there is a contract of Insurance in
respect of any liability under the Compensation Act, then after the insured became insolvent the right of
the insured against the insurer would vest in the workman. Therefore the
provisions of the Motor Vehicles Act cannot be borrowed while deciding
the case under the Workmen's Compensation Act.
7. The third contention of the learned
counsel for the petitioner was that the application for review has not disclosed
any ground for review. Apart from the fact the policy of insurance was neither
proved nor any evidence was led fixing the liability of the insurer.
On the other hand learned counsel for
the respondents contends that when the Statute is silent about the power of
review by an authority exercising quasi judicial jurisdiction it is inherent
within such authority, particularly when such authority has all trappings of
our court. He further contends that the provisions of the Motor Vehicles Act and the Workmen's Compensation Act are not mutually exclusive. Section 167 of the Act bars the remedy from the two authorities
but not application of the provision of one of the other to other or the one.
The authority under the Workmen's Compensation Act while deciding the issue may also look into the
liability of the insurer under the provisions of Motor Vehicles Act and fix the liability upon the insurer.
8. These questions as to whether in a
proceeding under the Workmen's Compensation Act the liability of the insurer can be fixed arose in
many cases before different High Courts. There are contrary views of different
High Courts. One view precludes the authority from fixing the liability of the
insurer while the other view is just opposite. In the case of United India Fire
and General Insurance Company v. Joseph Marium, 1979 ACJ 349 Division Bench of
Kerala High Court had held that the liability of insurer is only confined to
those specified in Sub-section(1) of Section 14 of the Act and except those cases the Commissioner had no
jurisdiction to issue any direction to the insurer for payment. Whereas in the
case of United India Insurance Company Limited v. Roop Kamvar, 1991 ACJ 74 the
Rajasthan High Court had held that it is correct that Section 14 of the Compensation Act specified the liability of the Insurance
company but that does not mean that the insurance company is liable to pay
compensation only in case the employer becomes insolvent. The insurer is also
liable, by reason of the provisions contained in the Motor Vehicles Act and if the person chooses his remedy under the
Workmen's Compensation Act the insurer cannot avoid his
liability and the authority under the Workmen's Compensation Act may fix the liability of the insurer. Similar view
was taken by Orissa High Court in the case of Bhajan Lal Podia v. Baijnath,
(1986) 62 Cuttak Law Time, 13. In the case of New India Insurance Company Limited v. Darshani Devi, 1984 Lab I.C. 489 while dissenting
from the decision in the case of Oriental Fire and General Insurance Company v. Garim
Singh 1973 Lab.
I.C. 1066 this Court has held that the liability arising under the
Workmen's Compensation Act is necessarily included in the
statutory liability which is required by Section 95(1) of the Motor Vehicles Act, 1939 to be covered under
the policy of Insurance. Hence the insurer cannot shirk such liability by
contending that its liability under the policy was merely a liability under
the Motor Vehicles Act and cannot be extended to the
liability incurred under the provision of Workmen's Compensation Act. The same view has been expressed in the case of
Oriental Fire and General Insurance Company v. Matisburla 1986 ACJ 732 by the
Orissa High Court. The Madhya Pradesh High Court has also expressed that Section 14 of the Act is not the only provision imposing the liability on the
insurer in the case of New India Insurance Company v. Dujia Bai 1983 ACJ 601 MP; United India
Insurance Company Ltd. v. Alphonso, 1988 I LLN 1023; Oriental Fire and General Insurance Company v. Nonibala
Devi, 1987 2 TCT
107; National Insurance Company v. Narainan
Nair. 58 FIR 1973
Kerala supported the same view. In the case of United India Insurance Company v. GangadharanNarain, 1986 53 FLR 606 it was held
that Section 14 purports to mention the
circumstances that the right of the workman shall not be defeated even when
employer becomes insolvent and in such event the insurer can be substituted in
the place of employer. It does not operate as prohibition against proceeding
before the Commissioner involving the insurer, who is liable under the
Insurance to discharge the liability of employer to compensate the workman,
according to the provisions of the Act. Karnataka High Court in the case of United Fire and General Insurance Company v. Machinery
Manufacturer Corporation, 1987 (I) LLN 321 had held that Section 14 of the Act does not enable the Insurance company to avoid its
liability under the Policy issued specially, for covering the liability of the
workman under the Act on the ground that the insured employer has not become
insolvent or has made composition or scheme of arrangement or being a company
winding up proceeding has not commenced. However in the case of National
Insurance Company v. Jadumbi, (1985-I-LLJ-102) Mad-hya Pradesh High Court has
expressed the contrary view.
9. It appears that the Motor Vehicles Act Clearly lays down that the
person entitled to compensation on account of accident arising out of the use
of Motor Vehicle may pursue his claim either under the provisions of Motor Vehicles Act or under the Workmen's Compensation Act, but not entitled to have it from the authorities under
both the Acts. Therefore the person claiming compensation out of an accident
for use of Motor vehicles under the Compensation Act cannot be said to be precluded from claiming the
benefit which is available before the other authority. This mutual exclusion
clearly implies that the Legislature had never intended that when the claimant
in respect of an accident for the use of Motor Vehicles lodges his claim before
the authority under the Compensation Act negatives the liability of the insurer under Section 147 of the Motor Vehicles Act, the insurer cannot be
concerned under which provision the claim is lodged. The insurance policy does
not specify that it will pay compensation only when it is claimed under the
provision of Motor Vehicles Act. The liability of the insurance
arises out of a contract of insurance be-
tween the insurer and the insured. The
liability is the general liability. The same can be invoked even in a Civil
suit without the aid of any of the authorities under the said two Acts if it
can be invoked without aid of any of these authorities then it cannot be conceived
that the insurer will be liable only when a particular procedure is adopted.
The liability of the insurer continues to indemnify the insured on account of
liability arising out of the contract for insurance. The Insurance company
cannot defeat the claim of the claimant simply because the claimant has
preferred to espouse his cause under the Compensation Act. The Workmen's compensation Act also does not preclude in
specific terms that the insurance company cannot be liable even if the insured
is liable under the Motor Vehicles Act. In case compensation is asked for
from an employer who might be insolvent and take advantage of insolvency, Section 14 of the Act has been provided to protect the interest of the
claimant namely that on account of insolvency of the employer the claimant's
claim may not be defeated. This very provision indicates that the Act was
concerned with protection of the claim of the claimant. The Act was never concerned as to who would make payment. The Act was always concerned for securing payment of compensation to the
claimant if the employer is insured in that event insurer becomes also equally
liable to indemnify the employer to the extent of contract of the insurance
which can be taken note of. The authority deciding the claim has the
jurisdiction to apportion payment or direct as to what amount is to be paid by
the insurance and insurer respectively.
10. Furthermore the Motor Vehicles Act
1988 in Section 143 provides that the provisions of Chapter X of the
said Act which deals with "no fault liability" shall apply to a claim
under the Workmen's Compensation Act resulting from an accident of
the nature referred to in Section 140 to the said Act. The provisions of Chapter X
aforesaid has overriding effect on any other law by reason of Section 144 of the said Act. The right to claim compensation
under Section 140 is a right in addition to any
other right under the provision of the said Act or under any other law. Now
chapter X deals with the liability on the principle of fault. Incorporation
of Section 167 in the said chapter indicates
the intention of the legislature that the claim arising out of the Motor Vehicles Act can also be claimed under the Compensation Act. It is very difficult to conceive that the liability
under an insurance policy would be defeated if the claim is lodged under
the Compensation Act. Inasmuch as if such a proposition is
accepted then it would be very difficult to reconcile the savings provided
in Section 141(1) of the Motor Vehicles Act, 1988.
It is an established principle of interpretation that a statute has to be given
a harmonious construction which leads to a consistent effect. It cannot be
conceived that when the benefit is made available under Chapter X of the Motor
Vehicles Act even in a claim under the Compensation Act with over-riding effect as provided in Sections 143 and 144 of the said Act the benefit under Chapter XI which is saved
under Section 141(1) of the said Chapter would not be
available in a claim under the Compensation Act when Section 167 of the said Act provided in Chapter XI leaves the choice
or option to the claimant to make such claim in either of the two forums.
11. In order to appreciate the
situation we may refer to Section 167 of the Motor Vehicles Act which runs as follows:
"Notwithstanding anything
contained in the Workmen's Compensation Act 1923(8 of 1923) where the death of, or bodily
injury to, any person gives rise to a claim for compensation under this Act and
also under the Workmen's Compensation Act 1923 the person entitled to compensation may
without prejudice to the provisions of Chapter X claim such compensation under
either of those Acts but not under both".
The Section begins with a non-obstante
clause which indicates that a claim which arises under the Motor Vehicles Act and also under the Compensation Act, be espoused under either of the Acts meaning thereby an
overriding effect. Without prejudice to the provisions of Chapter X a person
entitled to compensation under the Motor Vehicles Act and also under the Compensation Act may claim such compensation under either of the
Acts. This clearly presupposes that even despite absence of any provision in
the Compensation Act the liability of the insurer as
provided in the Motor Vehicles Act can equally be enforced under
the Compensation Act.
12. Over and above the compensation is
payable on account of a liability arising out of use of a vehicle at a public
place. Such liability is covered under the insurance policy by the Insurer. The
provision under the Motor Vehicles Act makes it mandatory for owners of vechicles to cover
his vehicle under such insurance policy. The compensation is payble for the
liability arising out of the use of the vehicle on behalf of the insured who is
so indemnified by the insurer by reason of the contract or the policy. It
covers the class of person specified in the policy. It makes little difference
if the person affected is an employee of the insured if such class of person is
covered by the policy. Therefore the insured does not stand on any different
footing when the compensation is claimed under the Compensation Act.
13. Therefore the interpretation of
the said provision which ensures to the benefit of the claimant who stands on
the receiving end, a weaker side, who should not be allowed to suffer in the trap
between the insurer and insured, should be preferred than any other
interpretation. Insurance is made compulsory only to facilitate realisation of
the claim by the claimant through the insurer. In my view therefore the
interpretation given in the preceding paragraph apposite.
14. Now on the Question whether the
Workmen's Compensation authority had jurisdiction to review, it appears that
the Workmen's Compensation Commissioner exercises quasi judicial jurisdiction
having all the trapping of the Court procedure whereof has not been elaborately
laid down either under the Act or under the Rules. The absence of specific
provision does not debar such authority from dispensation of justice. The
authority who is passing the order which is enforceable otherwise cannot be
said to ' lack jurisdiction to recall or review its order if occasion so
demands in order to do justice. While dispensing justice or exercising quasi
judicial jurisdiction unless it has specifically prohibited or barred the power
to review its own order inheres in the Tribunal or the authority concerned.
15. Similar view has been expressed in
the judgment in the case of Oriental Insurance Company and Fida Ali and Ors.,
1995 (25) ALR 532 in which Hon'ble S.R. Singh J. referring to the judgment in
the case of P.L. Kakkar Singh v. Praduna Singh, AIR 1970 SC 1273 and S. Nagaraja v. State of Karnaiaka, (1994-I-LLJ-851)(SC) and various
other decisions of different High Courts had held that the Tribunal having
trappings of the court is empowered to review its own order.
16. In the result it appears that the
Commissioner while passing the impugned order cannot be said to have exceeded
his jurisdiction in allowing the review application and ordering fresh
consideration for ascertaining the liability of the insurer, whether there are
material or not for deciding the question namely that the policy was not proved
is to be gone into by the Commissioner in terms of the order which directed
re-ceptance of materials for the purpose.
17. In that view of the matter I am
not inclined to interfere with the order. The Commissioner shall be at liberty
to proceed afresh on the basis of material on record and on the basis of such
material as may be produced by either of the parties and to decide the question
with regard to the liability of the insurer. The Commissioner's jurisdiction is
limited to that extent only namely how far insurer is liable and what amount
should be paid by it if it finds the insurer liable on the basis of material
already on record or on the material that might be produced before the
Commissioner. The said decision should be decided as early as possible
preferably within a period of six months from the date a certified copy of this
order is produced before the Commissioner after giving appropriate opportunity
to either of the parties.
18. The writ petitions therefore stand
disposed of to the above extent. There will be however, no order as to costs.”[32]
Gist of case is also pointing out to here, as plain reading of the
Hon’ble Court it is made clear that the Hon’ble Court has held that the recall
of ex parte order if not barred by law then any application for recall of the
order passed in ex-parte has been moved the learned Commissioner of Employee’s
Compensation Act, 1923 has ample power to recall his own ex parte order even
though the order in question on merit same shall be recalled and after
providing the opportunity of hearing final order must be passed for securing
the ends of justice and any order violating the natural justice same is bad in
the eye of law, if any contestant is
appeared and moved application the learned Commissioner has to look the
bonafide of the aggrieved and filing persons, the applicant of recall showing
sufficient cause and also showing bonafide for non appearance before the
learned Commissioner and reason is sufficient then it is bounded duty of the
Commissioner of the Employee’s Compensation Commissioner to entertain the
application for recall of his own order and after recalling the same, providing
opportunity of hearing to the effected parties, and after proving opportunity
of hearing to the effected parties passed the fresh order after considering the
version of the parties and also the evidences of the parties.
5.7 Judgement of Hon’ble High Court Allahabad In
Case of Syndent (India) Private Limited Vs.
Presiding Officer, Industrial Dt of Judgement 25.02.2005, 2205 (2) ESC 1239
Allahabad High Court gave finding with regard to Power of Recall of
Ex-ParteAward/order vested in Employees Compensation Commissioner law settled
by the Hon’ble Allahabad High Court and rectified the confusion with regard to
the applicability of 41 of Workmen’s Compensation Rule 1924, therefore Hon’ble
High Court has held that the ex parte order and award can be recalled by the
Commissioner of Empoloyee’s Compensation Act 1923, order of the Hon’ble Court
is quoted below,
“ Hon’ble Justice Rakesh Tiwari, J.
1. Heard Counsel for the parties and perused the record.
2. This writ petition has been filed against the ex parte
award dated 31.8.2000 which was published on the notice board on 15.11.2000.
3. An application for recalling the ex parte award was
moved on 14.1.2001 which was rejected on the ground that the Labour Court
become functus officio after 30 days of the publication of the award in terms
of Section 6-A of the U.P. Industrial Disputes Act, 1947.
4. It appears from the order rejecting the application for
setting aside the ex parte award that the Labour Court has held that the
summons sent by the Labour Court had been served on the petitioner on 8.5.2000.
However, this fact has been denied by the learned Counsel for the petitioner
and it is submitted that the summons were never served on the petitioner.
5. The Labour Court has not given any finding when and on
whom the summons were served. The Post Master has also not been examined. The
question as to who has received the summons has to be decided by the Labour
Court.
6. It is not clear from the impugned award that when and on
whom the summons were served and there is also no evidence in this regard. The
Labour Court without giving any finding as to when and on whom summons had been
served and who had served them, proceeded with the case ex parte mechanically concluding
that summonses had been served on the employer without verifying this fact
first.
7. For the reasons stated above, the writ petition is
allowed and the impugned award dated 31.8.2000 is quashed. As a consequence of
quashing of the impugned award the recovery certificate issued in pursuance of
the impugned ex parte award is also quashed. The matter is remanded back to the
Labour Court for decision afresh in the light of the observations made in the
body of the judgment. The Labour Court is directed to decide the matter afresh
in the light of the observations made in the body of the judgment within a
period of six months from the date of production of a certified copy of this
order. If necessary, the proceedings may be held on day-to-day basis under Rule
12(4) of the U.P. Industrial Disputes Rules, 1957 in view of the judgment
rendered in Writ Petition No. 17602 of 1990 (Basant Lal v. U.P. State Roadways
Transport Corporation and Ors.) reported in
(2003) 1 UPLBEC 154.”[33]
That the Hon’ble Justice Rakesh
Tiwari J, has given clearcut finding for recall of ex-parte order, and if the
ex parte order is on merit, there is no matter it can be recalled and there is
no prohibition for recalling the same, the order ex-parte can be recalled if
the affected parties has appeared and file application and requested for recall
the authorities are bonded duty to provide the natural justice and right to
heard is also fundamental right of the affected parties.
5.8 Judgement of Hon’ble High Court Allahabad In
Case In Case of Raj Bahadur Vs. Presiding Officer, Labour Dt of Judgement
08.01.2010 Writ C No. 575 of 2010
Allahabad High Court giving finding Power of Recall of Ex-Parte Award /
order vested in the Commissioner, in the supra case, the Hon’ble Court has
dismissed the writ petition filed by Raj Bahadur against the order of Labor
Court dt. 15.05.2009 against the recall of ex-parte order, main ground has been
taken in the writ petition, ground is that the Labour Court has no power to
recall the ex parte order, the Hon’ble Court has rejected the plea of
petitioner and dismissed the writ petition by holing that ex – parte order can
be recall, part of judgement is reproduced here as under,
“The
petitioner before this Court is aggrieved by the order of the Presiding
Officer, Labour Court dated 15.05.2009 passed in Adjudication Case No. 61 of
2006. By means of the said order, the Labour Court has recalled its earlier ex
parte award on an application made by the employers after recording that the
said application has been filed within time and the earlier order was ex parte.
Having heard learned counsel for the petitioner and having examined the records
of the present writ petition, I am of the considered opinion that the order has
the effect of permitting the employers to have their say in the matter. Such
orders are in the interest of substantial justice and have the effect of
matters being adjudicated on merits after contest between the parties instead
of being permitted to be adjudicated ex parte. Such orders do not warrant any
interference under Article 226 of the Constitution of India. Writ petition is
dismissed. However in the facts of the present case it is provided that the
Labour Court shall endeavour to decide the Adjudication Case No. 61 of 2006 at
the earliest possible, without granting any unnecessary adjournment to either
of the parties, in any case, within four months from the date a certified copy
of this order is filed before the Presiding Officer, Labour Court-I, Kanpur
Nagar, Kanpur.[34]”
The power
of recall of ex-parte order is fully vested in the hands of Employee’s
Compensation of Commissioner as discussed above (supra) by the Hon’ble Court.
5.9 Judgement of Hon’ble
High Court Allahabad In Case of M/S Universal Cylinders LimitedVs. The
Presiding Officer, Labour Dt of Judgement 13.01.2020 Writ C No. 15333 of 2019
Allahabad
High Court giving finding Power of Recall of Ex-Parte Award / order vested in
the passing authority, the Act of Employee’s Compensation Act, 1923 is not
provided but the rule it self providing that the recalling power is vested in
the authority, the present case ex parte order has been passed by the
authority, against the ex party order recall application has been filed same is
dismissed vide order dt. 11.06.2018 by the Labour Court, against rejection of
application of recall writ petition has
been filed the Hon’ble Writ Court in case of MS Universal (supra) allowed the
recall application dt. 11.6.2008 and quashed the exparte award dt. 20.12.20217
vide order dt. 13.01.2020, copy of the order is reproduced herewith as under,
“By
means of instant petition, the petitioner has called in question the order
dated 14.2.2019 passed by Presiding Officer, Labour Court II, U.P. Kanpur
rejecting the application of the petitioner praying for setting aside the
exparte award dated 20.12.2017 (published on the notice board on 19.5.2018) in
Adjudication Case No.33 of 2015.
The background facts
leading to the instant petition are that respondent no.2 raised an industrial
dispute alleging that he was appointed on the post of Mistri/Mechanic by
respondent no.3 in the month of February, 1991; that he worked till 31.10.2014;
that his service was illegally terminated without passing any order in writing
on 1.11.2014. The application filed in this regard by respondent no.2 dated
13.3.2015 was registered as C.P. Case No.47 of 2015. On 10.8.2015, respondent
no.2 sought impleadment of the petitioner in C.P. Case No.47 of 2015. Since the
conciliation proceedings did not yield any result, therefore, the dispute was
referred under Section 4-K for adjudication by the Labour Court and it came to
be registered as Adjudication Case No.33 of 2015. The petitioner was
represented by Sri Gyaneshwar Mishra. According to the petitioner, Sri
Gyaneshwar Mishra, due to his personal problems, could not attend the case on
regular basis and later, abstained from appearing in the case without any
information to the petitioner, resulting in an exparte award dated 20.12.2017
being passed against it. The Labour Court directed for reinstatement of
respondent no.2 with continuity of service and full back wages. According to
the petitioner, it came to know of the exparte award when copy of the same was
received by it on 26.5.2018. On 11.6.2018, it moved an application for setting
aside the exparte award along with affidavit of Manager (Operation). The
application was opposed by respondent no.2. The Labour Court by impugned order
rejected the said application holding that the explanation furnished for
non-appearance is not satisfactory and also on the ground that under Rule 16
(2) of the Rules framed under the Act, an application praying for setting aside
of exparte award could be filed only within ten days from the date of
publication of the award. In other words, the view taken is that after expiry
of the time prescribed under Rule 16 (2), the award had become enforceable
rendering the Labour Court functus officio to entertain or decide any
application.
Learned counsel for the
petitioner submitted that in the first place the Labour Court has committed a
manifest illegality in ignoring cogent explanation offered by the petitioner
entitling it to a hearing and case being decided on merits. In support of the
said submission, he has placed reliance on the judgement of the Apex Court in
M.K. Prasad Vs. R. Arumugam, 2001 (3) AWC 2395. In addition, it is urged that
the law that after publication of award and expiry of the prescribed period,
the award becomes enforceable rendering the Labour Court/Tribunal functus
officio is no longer good law in view of the recent decision of the Supreme
Court in Haryana Suraj Malting Ltd. vs. Phool Chand, (2018) (16) SCC 567.
On the other hand,
learned counsel for the respondent workman submitted that the Labour Court has
rightly discarded the explanation furnished by the petitioner for its
non-appearance when the matter was taken up for hearing. He further submitted
that the other reasoning given by the Labour Court that the application was not
entertainable in view of Rule 16 (2), as it was filed beyond ten days from the
date of passing of the award, is also perfectly legal and valid.
The judgement of the
Supreme Court in Haryana Suraj Malting Ltd. is by a Larger Bench of Three
Judges resolving divergent views in Sangham Tape Company Vs. Hans Raj, (2005) 9
SCC 331 and Radhakrishna Mani Tripathi Vs. L.H. Patel, (2009) 2 SCC 81. The
reference to the Larger Bench was made for answering the following question:-
“1. Whether the
Industrial Tribunal/Labour Court becomes functus officio after 30 days of the
pronouncement/publication of the award and loses all powers to recall an ex
parte award on an application made by the aggrieved party after 30 days from
the date of pronouncement/publication of the award is the question that once
again arises for consideration in these cases.”
It is pertinent to note
paras 2 and 3 of the referring order to have an insight into the background in
which two conflicting views were taken:-
“2. It may be noted
that on this question two Division Bench decisions have taken apparently
conflicting views. In Sangham Tape Co. v. Hans Raj a two-Judge Bench
held and observed that an application for recall of an ex parte award may be
entertained by the Industrial Tribunal/Labour Court only in case it is filed
before the expiry of 30 days from the date of pronouncement/ publication of the
award. A contrary view was taken in Radhakrishna Mani Tripathi v. L.H.
Patel to which one of us (Aftab Alam, J.) was a party.
3. In both cases, that
is to say, Sangham Tape Co. and Radhakrishna Mani Tripathi, the Court referred
to and relied upon the earlier decisions in Grindlays Bank Ltd. v. Central
Govt. Industrial Tribunal and Anil Sood v. Labour Court but read and
interpreted those two decisions completely differently.”
The Larger Bench of the
Supreme Court, while answering the reference, took into consideration virtually
all previous judgements on the point and thereafter observed as follows:-
“31. Therefore, all the
decisions hereinabove noted by us referred to Grindlays (supra). On a close
reading of paragraph-14 of Grindlays (supra), in the background of the analysis
of law under paragraphs-10 to 13, it is difficult for us to comprehend that the
power to set aside an ex parte award is not available to a Labour
Court/Industrial Tribunal. On the principles of natural justice, and on a
purposive interpretation of the scheme of the Act and Rules, we find it
difficult also to discern that the ratio of the decision in Grindlays (supra),
is what is stated in paragraph-14 to the extent that an application for setting
aside an ex parte award has to be filed within 30 days of publication of the
award. On the contrary, the ratio in Grindlays (supra) is that the
Tribunal can exercise its ancillary and incidental powers, on the broader
principles contained under Order IX Rule 13 of the CPC. No doubt,
the Limitation Act, 1963 is not applicable to the Labour Court/Tribunal.”
Thereafter, the Larger
Bench laid down its conclusions in paragraphs 34, 35 and 37 of the Law Report
as follows:-
“34. In case a party is
in a position to show sufficient cause for its absence before the Labour
Court/Tribunal when it was set ex parte, the Labour Court/Tribunal, in exercise
of its ancillary or incidental powers, is competent to entertain such an
application. That power cannot be circumscribed by limitation. What is the
sufficient cause and whether its jurisdiction is invoked within a reasonable
time should be left to the judicious discretion of the Labour Court/Tribunal.
35. It is a matter of
natural justice that any party to the judicial proceedings should get an
opportunity of being heard, and if such an opportunity has been denied for want
of sufficient reason, the Labour Court/Tribunal which denied such an
opportunity, being satisfied of the sufficient cause and within a reasonable
time, should be in a position to set right its own procedure. Otherwise, as
held in Grindlays [Grindlays Bank Ltd. v. Central Govt. Industrial Tribunal,
1980 Supp SCC 420 : 1981 SCC (L&S) 309] , an award which may be a nullity
will have to be technically enforced. It is difficult to comprehend such a
situation under law.
37. Merely because an
award has become enforceable, does not necessarily mean that it has become
binding. For an award to become binding, it should be passed in compliance with
the principles of natural justice. An award passed denying an opportunity of
hearing when there was a sufficient cause for non-appearance can be challenged
on the ground of it being nullity. An award which is a nullity cannot be and
shall not be a binding award. In case a party is able to show sufficient cause
within a reasonable time for its non-appearance in the Labour Court/Tribunal
when it was set ex parte, the Labour Court/Tribunal is bound to consider such
an application and the application cannot be rejected on the ground that it was
filed after the award had become enforceable. The Labour Court/Tribunal is not
functus officio after the award has become enforceable as far as setting aside
an ex parte award is concerned. It is within its powers to entertain an
application as per the scheme of the Act and in terms of the rules of natural
justice. It needs to be restated that the Industrial Disputes Act, 1947 is a
welfare legislation intended to maintain industrial peace. In that view of the
matter, certain powers to do justice have to be conceded to the Labour
Court/Tribunal, whether we call it ancillary, incidental or inherent.”
It is thus well settled
now that the Labour Court/Industrial Tribunal, in exercise of its ancillary and
incidental powers, is competent to entertain an application to set aside an
exparte order/ award and the said power cannot be circumscribed by any
limitation. The ratio in Grindlays Bank Ltd. Vs. Central Govt. Industrial
Tribunal, 1980 Supp SCC 420, as interpreted by the Larger Bench is that the
Tribunal can exercise the said power on the broader principles contained under
Order 9 Rule 13 CPC. The provisions of the Limitation Act, 1963 do not apply to
the Labour Court/ Tribunal. In case a party is in position to show sufficient
cause for its absence before the Labour Court/Tribunal, it is competent to
entertain such application and exercise its judicious discretion to find out
whether the party has approached within reasonable time and whether sufficient
cause has been shown or not. Merely because an award has become enforceable
upon expiry of 30 days from the date of its publication would not mean that it
has also become binding on the party seeking recall of the exparte order/award.
For an award to become binding, it should have been passed in compliance with
the principles of natural justice. An award passed denying an opportunity of
hearing when there was a sufficient cause for non-appearance can be challenged
on the ground of it being nullity. An award which is a nullity cannot be and
shall not be a binding award. In case a party is able to show sufficient cause
within a reasonable time for its non-appearance in the Labour Court/Tribunal
when it was set ex parte, the Labour Court/Tribunal is bound to consider such
an application and the application cannot be rejected on the ground that it was
filed after the award had
become enforceable. The
Labour Court/Tribunal is not functus officio after the award has become
enforceable as far as setting aside an ex parte award is concerned. It is
within its powers to entertain an application as per the scheme of the Act and
in terms of the rules of natural justice. The judgment in Suraj Malting was
rendered in context of the Central Act (Industrial Disputes Act, 1947). The
instant Act applicable in U.P. contains parimateria provisions, some of which
are relevant to note.
Section 5-C (3) invests
the Labour Court/Tribunal with the same powers as are vested in a Civil court
under the Code of Civil Procedure, 1908 when trying a suit in respect of
following matters, namely:-
“(a) enforcing the
attendance of any person and examining him on oath or affirmation or otherwise;
(b) requiring the
discovery and production of documents and material objects;
(c) issuing commissions
for the examination of witnesses;
(d) inspection of any
property or thing including machinery concerning any such dispute; and
(e) in respect of such
other matters as may be prescribed;”
Section 6 of the Act
lays down the manner in which award is to be given and published. Sub-section
(3) provides that every award shall within a period of 30 days of its receipt
by the State Government be published in such manner as the State Government thinks
fit. Under sub-section (4), the State Government has been invested with power
to a limited extent and upon factors mentioned thereunder, to remit the award
for reconsideration. An award published as per provisions of Section 6-A has
been given
finality subject to
clerical or arithmetical errors being corrected, in which case, again the
procedure relating to publication of award has to be followed. Section 6-A
provides for commencement of the award. The relevant part of Section 6-A is as
follows:-
“6-A. Commencement of
the award. – (1) An award (including an arbitration award) shall become
enforceable on the expiry of thirty days from the date of its publication under
Section 6:”
Section 6-D is also
worth noticing, which reads thus:-
“6-D. Commencement and
conclusion of proceeding. – Proceedings before a Labour Court or Tribunal
shall be deemed to have commenced on the date of reference of a dispute to
adjudication, and such proceedings shall be deemed to have concluded on the
date on which the award becomes enforceable under Section 6-A.”
The State Government
has framed Rules in exercise of power under Section 23 of the Act. Rule 16 of
the U.P. Industrial Disputes Rules, 1957 framed by the State Government, on
which reliance has been placed in the impugned order, reads thus:-
“16. Labour Court or
Tribunal or Arbitrator may proceed ex-parte. – (1) If, on the date
fixed or on any other date to which the hearing maybe adjourned, any party to
the proceedings before the Labour Court or Tribunal or an Arbitrator is absent,
though duly served with summons or having the notice of date of hearing, the
Labour Court or Tribunal or the Arbitrator may proceed with the case in his
absence and pass such order as it may deem fit and proper.
(2) The Labour Court,
Tribunal or an Arbitrator may set aside the order passed against the party in
his absence, if within ten days of such order, the party applies in writing for
setting aside such order and shows sufficient cause for his absence. The Labour
Court, Tribunal or an Arbitrator may require the party to file an affidavit,
setting the cause of absence. As many copies of the application and affidavit,
if any, shall be filed by the party concerned as there are persons on the
opposite side. Notice of the application shall be given to the opposite parties
before setting aside the order.”
Again, under Rule 21,
the Labour Courts/Tribunals have been invested with the power of a civil court
in respect of discovery and inspection; granting of adjournment; reception of
evidence taken on affidavit.
Rule 16 is the source
of power of the Labour Court/Tribunal to proceed with the case in absence of a
party duly served with summons or having notice of date of hearing. It has also
been conferred power to set aside the order passed against the party in his
absence provided sufficient cause is shown for absence. The Rule provides that
such application has to be filed within 10 days from the date of passing of the
order. The said time limit, in my opinion, is not an embargo placed upon the
Labour Court/Tribunal to entertain application even if the delay in filing such
application is sufficiently explained. If the application is filed within 10
days, the party will not be asked to explain why it had not approached earlier,
but it has only to show sufficient cause for its absence. However, after 10
days, the party seeking setting aside of an exparte order, apart from showing
sufficient cause for non-appearance, will also have to furnish explanation for
not filing application within 10 days. This is all that the provision means in
prescribing a time limit for filing the application. Any other interpretation
would be contrary to the broad principles laid down by the Supreme Court in
Suraj Malting and would render the provision illegal and ultra vires. The above
interpretation, while obviating the need to strike down the provision, would
offer a practical solution and also subserve the ends of justice. Take for
instance a case where a party is not duly served with summons and comes to know
of the exparte award or the order to proceed exparte after expiry of 10 days.
In such a case, if the time limit prescribed under Rule 16 (2) is held to be
sacrosanct, the Labour Court/Tribunal would stand denuded of its power to set
aside the exparte order/award. It would be against basic tenets of jurisprudence
that dispute between the parties should be decided after due service of notice
and opportunity of hearing to both the
sides. Rule 16 (2) was
thus not an impediment in the way of the Labour Court in entertaining the
application filed by the petitioner for setting aside the exparte award or
deciding the same on merits. The view taken to the contrary is manifestly
illegal.
In the instant matter,
it is worth noticing that the award was published on 19.5.2018 and as per
Section 6-A, the award becomes enforceable on the expiry of 30 days from the
date of its publication. The application was filed on 11.6.2018 i.e. before
expiry of 30 days from the date of publication of the award or its becoming
enforceable under law. In such view of the matter, even otherwise, the
application having been filed before the award became enforceable could not be
thrown out on the ground that it was filed beyond the period prescribed under
Rule 16 (2).
Coming to the second
aspect as to whether the Labour Court/Tribunal committed any error in declining
to accept the explanation offered by the petitioner for its non-appearance, it
is worthwhile to note the exact explanation offered by the petitioner for its
non-appearance. The case taken by the petitioner in this regard was that it
came to know of exparte award on 26.5.2018. Its Manager Mahendra Singh
Shekhawat (who filed affidavit in support of the application) met the
authorised representative Sri Gyaneshwar Mishra. At that stage, he informed the
Manager that since 5th July, 2017 he had to make frequent visits to his home
district Jaunpur on account of personal work and that he had deputed his junior
to do pairvi in the case, but who did not discharge the responsibility
properly. Thereafter, the Manager requested the authorised representative to
take appropriate steps so that the matter is decided on merits, but he
expressed his inability and said that he will not be able to take any step in
this regard till August, 2018 as he will remain busy with his personal work.
Thereafter, the petitioner Company approached another person to act as its
representative and got the application filed without any further delay on
11.6.2018. The Labour Court has observed that the petitioner has offered a
confusing explanation and in case it was having knowledge that its authorised
representative was visiting his home district on regular basis, it ought to
have authorised another person to act on its behalf. Evidently, the Tribunal
has completely misread the explanation offered by the petitioner. In M.K.
Prasad (supra) where also explanation offered was that the counsel did not
appear after a particular date to contest the case without any information to
the party, the Supreme Court has observed thus:-
“10. In the instant
case, the appellant tried to explain the delay in filing the application for
setting aside the ex-parte decree as is evident from his application filed
under Section 5 of the Limitation Act accompanied by his own
affidavit. Even though the appellant appears not to be as vigilant as he ought
to have been, yet his conduct does not, on the whole, warrant to castigate him
as an irresponsible litigant. He should have been more vigilant but on his
failure to adopt such extra vigilance should not have been made a ground for
ousting him from the litigation with respect to the property, concededly to be
valuable…”
In my opinion, it is a
fit case where the explanation offered has to be accepted in the interest of
justice. While at the same time, the inconvenience cause to the respondent
workman could be compensated in terms of cost.
Accordingly, the
application dated 11.6.2018 filed by the petitioner for setting aside exparte
award is allowed. The exparte award dated 20.12.2017 is set aside subject to
payment of a cost of Rs.5000/- to the respondent-workman within three weeks
from today. The Tribunal shall now decide the matter afresh, after providing
opportunity of hearing to both the sides.The writ petition stands allowed
accordingly.”[35]
5.9 M/s
Universal Cylinders Limited Vs. The Presiding Officer Writ C
No. 15333 of 2019 31.01.2020 Allahabad Court case study regarding power of
Commissioner Employee’s Compensation Act, 1923
That the Hon’ble Kerala High Court has given
finding with regard to the power of Employee’s Compensation, Act, 1923 of
Commissioner, the issues with regard to the power of Compensation Commissioner
is under debateable and several trail Court and various High Court has given
mis interpretation, with regard to the power of the Employee’s Compensation
Commissioner, whether having power to recall of his own ex parte order or not,
the issues has settled by Hon’ble Allahabad High Court in Case of Ms Universal
Cylinders Limited (supra) the Hon’ble Justice Manoj Kumar Gupta J, has giving
finding which is as under,
“ By means of instant
petition, the petitioner has called in question the order dated 14.2.2019
passed by Presiding Officer, Labour Court II, U.P. Kanpur rejecting the
application of the petitioner praying for setting aside the exparte award dated
20.12.2017 (published on the notice board on 19.5.2018) in Adjudication Case
No.33 of 2015.
The background facts
leading to the instant petition are that respondent no.2 raised an industrial
dispute alleging that he was appointed on the post of Mistri/Mechanic by respondent
no.3 in the month of February, 1991; that he worked till 31.10.2014; that his
service was illegally terminated without passing any order in writing on
1.11.2014. The application filed in this regard by respondent no.2 dated
13.3.2015 was registered as C.P. Case No.47 of 2015. On 10.8.2015, respondent
no.2 sought impleadment of the petitioner in C.P. Case No.47 of 2015. Since the
conciliation proceedings did not yield any result, therefore, the dispute was
referred under Section 4-K for adjudication by the Labour Court and it came to
be registered as Adjudication Case No.33 of 2015. The petitioner was
represented by Sri Gyaneshwar Mishra. According to the petitioner, Sri
Gyaneshwar Mishra, due to his personal problems, could not attend the case on
regular basis and later, abstained from appearing in the case without any
information to the petitioner, resulting in an exparte award dated 20.12.2017
being passed against it. The Labour Court directed for reinstatement of
respondent no.2 with continuity of service and full back wages. According to
the petitioner, it came to know of the exparte award when copy of the same was
received by it on 26.5.2018. On 11.6.2018, it moved an application for setting
aside the exparte award alongwith affidavit of Manager (Operation). The
application was opposed by respondent no.2. The Labour Court by impugned order
rejected the said application holding that the explanation furnished for
non-appearance is not satisfactory and also on the ground that under Rule 16
(2) of the Rules framed under the Act, an application praying for setting aside
of exparte award could be filed only within ten days from the date of
publication of the award. In other words, the view taken is that after expiry
of the time prescribed under Rule 16 (2), the award had become enforceable
rendering the Labour Court functus officio to entertain or decide any
application.
Learned counsel for the
petitioner submitted that in the first place the Labour Court has committed a
manifest illegality in ignoring cogent explanation offered by the petitioner
entitling it to a hearing and case being decided on merits. In support of the
said submission, he has placed reliance on the judgement of the Apex Court in
M.K. Prasad Vs. R. Arumugam, 2001 (3) AWC 2395. In addition, it is urged that
the law that after publication of award and expiry of the prescribed period,
the award becomes enforceable rendering the Labour Court/Tribunal functus
officio is no longer good law in view of the recent decision of the Supreme
Court in Haryana Suraj Malting Ltd. vs. Phool Chand, (2018) (16) SCC 567.
On the other hand, learned
counsel for the respondent workman submitted that the Labour Court has rightly
discarded the explanation furnished by the petitioner for its non-appearance
when the matter was taken up for hearing. He further submitted that the other
reasoning given by the Labour Court that the application was not entertainable
in view of Rule 16 (2), as it was filed beyond ten days from the date of
passing of the award, is also perfectly legal and valid.
The judgement of the
Supreme Court in Haryana Suraj Malting Ltd. is by a Larger Bench of Three
Judges resolving divergent views in Sangham Tape Company Vs. Hans Raj, (2005) 9
SCC 331 and Radhakrishna Mani Tripathi Vs. L.H. Patel, (2009) 2 SCC 81. The
reference to the Larger Bench was made for answering the following question:-
“1. Whether the Industrial
Tribunal/Labour Court becomes functus officio after 30 days of the
pronouncement/publication of the award and loses all powers to recall an ex
parte award on an application made by the aggrieved party after 30 days from
the date of pronouncement/publication of the award is the question that once
again arises for consideration in these cases.”
It is pertinent to note
paras 2 and 3 of the referring order to have an insight into the background in
which two conflicting views were taken:-
“2. It may be noted that on
this question two Division Bench decisions have taken apparently conflicting
views. In Sangham Tape Co. v. Hans Raj a two-Judge Bench held and
observed that an application for recall of an ex parte award may be entertained
by the Industrial Tribunal/Labour Court only in case it is filed before the
expiry of 30 days from the date of pronouncement/ publication of the award. A
contrary view was taken in Radhakrishna Mani Tripathi v. L.H.
Patel to which one of us (Aftab Alam, J.) was a party.
3. In both cases, that is
to say, Sangham Tape Co. and Radhakrishna Mani Tripathi, the Court referred to
and relied upon the earlier decisions in Grindlays Bank Ltd. v. Central
Govt. Industrial Tribunal and Anil Sood v. Labour Court but read and
interpreted those two decisions completely differently.”
The Larger Bench of the
Supreme Court, while answering the reference, took into consideration virtually
all previous judgements on the point and thereafter observed as follows:-
“31. Therefore, all the
decisions hereinabove noted by us referred to Grindlays (supra). On a close
reading of paragraph-14 of Grindlays (supra), in the background of the analysis
of law under paragraphs-10 to 13, it is difficult for us to comprehend that the
power to set aside an ex parte award is not available to a Labour
Court/Industrial Tribunal. On the principles of natural justice, and on a
purposive interpretation of the scheme of the Act and Rules, we find it
difficult also to discern that the ratio of the decision in Grindlays (supra),
is what is stated in paragraph-14 to the extent that an application for setting
aside an ex parte award has to be filed within 30 days of publication of the
award. On the contrary, the ratio in Grindlays (supra) is that the
Tribunal can exercise its ancillary and incidental powers, on the broader
principles contained under Order IX Rule 13 of the CPC. No doubt,
the Limitation Act, 1963 is not applicable to the Labour Court/Tribunal.”
Thereafter, the Larger
Bench laid down its conclusions in paragraphs 34, 35 and 37 of the Law Report
as follows:-
“34. In case a party is in
a position to show sufficient cause for its absence before the Labour
Court/Tribunal when it was set ex parte, the Labour Court/Tribunal, in exercise
of its ancillary or incidental powers, is competent to entertain such an
application. That power cannot be circumscribed by limitation. What is the
sufficient cause and whether its jurisdiction is invoked within a reasonable
time should be left to the judicious discretion of the Labour Court/Tribunal.
35. It is a matter of
natural justice that any party to the judicial proceedings should get an
opportunity of being heard, and if such an opportunity has been denied for want
of sufficient reason, the Labour Court/Tribunal which denied such an
opportunity, being satisfied of the sufficient cause and within a reasonable
time, should be in a position to set right its own procedure. Otherwise, as
held in Grindlays [Grindlays Bank Ltd. v. Central Govt. Industrial Tribunal,
1980 Supp SCC 420 : 1981 SCC (L&S) 309] , an award which may be a nullity
will have to be technically enforced. It is difficult to comprehend such a
situation under law.
37. Merely because an award
has become enforceable, does not necessarily mean that it has become binding.
For an award to become binding, it should be passed in compliance with the
principles of natural justice. An award passed denying an opportunity of
hearing when there was a sufficient cause for non-appearance can be challenged
on the ground of it being nullity. An award which is a nullity cannot be and
shall not be a binding award. In case a party is able to show sufficient cause
within a reasonable time for its non-appearance in the Labour Court/Tribunal
when it was set ex parte, the Labour Court/Tribunal is bound to consider such
an application and the application cannot be rejected on the ground that it was
filed after the award had become enforceable. The Labour Court/Tribunal is not
functus officio after the award has become enforceable as far as setting aside
an ex parte award is concerned. It is within its powers to entertain an
application as per the scheme of the Act and in terms of the rules of natural
justice. It needs to be restated that the Industrial Disputes Act, 1947 is a
welfare legislation intended to maintain industrial peace. In that view of the
matter, certain powers to do justice have to be conceded to the Labour
Court/Tribunal, whether we call it ancillary, incidental or inherent.”
It is thus well settled now
that the Labour Court/Industrial Tribunal, in exercise of its ancillary and
incidental powers, is competent to entertain an application to set aside an
exparte order/ award and the said power cannot be circumscribed by any
limitation. The ratio in Grindlays Bank Ltd. Vs. Central Govt. Industrial
Tribunal, 1980 Supp SCC 420, as interpreted by the Larger Bench is that the
Tribunal can exercise the said power on the broader principles contained under
Order 9 Rule 13 CPC. The provisions of the Limitation Act, 1963 do not apply to
the Labour Court/ Tribunal. In case a party is in position to show sufficient
cause for its absence before the Labour Court/Tribunal, it is competent to
entertain such application and exercise its judicious discretion to find out
whether the party has approached within reasonable time and whether sufficient
cause has been shown or not. Merely because an award has become enforceable
upon expiry of 30 days from the date of its publication would not mean that it
has also become binding on the party seeking recall of the exparte order/award.
For an award to become binding, it should have been passed in compliance with the
principles of natural justice. An award passed denying an opportunity of
hearing when there was a sufficient cause for non-appearance can be challenged
on the ground of it being nullity. An award which is a nullity cannot be and
shall not be a binding award. In case a party is able to show sufficient cause
within a reasonable time for its non-appearance in the Labour Court/Tribunal
when it was set ex parte, the Labour Court/Tribunal is bound to consider such
an application and the application cannot be rejected on the ground that it was
filed after the award had become enforceable. The Labour Court/Tribunal is not
functus officio after the award has become enforceable as far as setting
aside an ex parte award is concerned. It is within its powers to entertain an
application as per the scheme of the Act and in terms of the rules of natural
justice. The judgment in Suraj Malting was rendered in context of the Central
Act (Industrial Disputes Act, 1947). The instant Act applicable in U.P.
contains parimateria provisions, some of which are relevant to note.
Section 5-C (3) invests the
Labour Court/Tribunal with the same powers as are vested in a Civil court under
the Code of Civil Procedure, 1908 when trying a suit in respect of following
matters, namely:-
“(a) enforcing the
attendance of any person and examining him on oath or affirmation or otherwise;
(b) requiring the discovery
and production of documents and material objects;
(c) issuing commissions for
the examination of witnesses;
(d) inspection of any property
or thing including machinery concerning any such dispute; and
(e) in respect of such
other matters as may be prescribed;”
Section 6 of the Act lays
down the manner in which award is to be given and published. Sub-section (3)
provides that every award shall within a period of 30 days of its receipt by
the State Government be published in such manner as the State Government thinks
fit. Under sub-section (4), the State Government has been invested with power
to a limited extent and upon factors mentioned thereunder, to remit the award
for reconsideration. An award published as per provisions of Section 6-A has
been given
finality subject to
clerical or arithmetical errors being corrected, in which case, again the
procedure relating to publication of award has to be followed. Section 6-A
provides for commencement of the award. The relevant part of Section 6-A is as
follows:-
“6-A. Commencement of the
award. – (1) An award (including an arbitration award) shall become
enforceable on the expiry of thirty days from the date of its publication under
Section 6:”
Section 6-D is also worth
noticing, which reads thus:-
“6-D. Commencement and
conclusion of proceeding. – Proceedings before a Labour Court or Tribunal
shall be deemed to have commenced on the date of reference of a dispute to
adjudication, and such proceedings shall be deemed to have concluded on the
date on which the award becomes enforceable under Section 6-A.”
The State Government has
framed Rules in exercise of power under Section 23 of the Act. Rule 16 of the
U.P. Industrial Disputes Rules, 1957 framed by the State Government, on which
reliance has been placed in the impugned order, reads thus:-
“16. Labour Court or
Tribunal or Arbitrator may proceed ex-parte. – (1) If, on the date
fixed or on any other date to which the hearing maybe adjourned, any party to
the proceedings before the Labour Court or Tribunal or an Arbitrator is absent,
though duly served with summons or having the notice of date of hearing, the
Labour Court or Tribunal or the Arbitrator, as the case may be, may proceed
with the case in his absence and pass such order as it may deem fit and proper.
(2) The Labour Court,
Tribunal or an Arbitrator may set aside the order passed against the party in
his absence, if within ten days of such order, the party applies in writing for
setting aside such order and shows sufficient cause for his absence. The Labour
Court, Tribunal or an Arbitrator may require the party to file an affidavit,
setting the cause of absence. As many copies of the application and affidavit,
if any, shall be filed by the party concerned as there are persons on the
opposite side. Notice of the application shall be given to the opposite parties
before setting aside the order.”
Again, under Rule 21, the
Labour Courts/Tribunals have been invested with the power of a civil court in
respect of discovery and inspection; granting of adjournment; reception of
evidence taken on affidavit.
Rule 16 is the source of
power of the Labour Court/Tribunal to proceed with the case in absence of a
party duly served with summons or having notice of date of hearing. It has also
been conferred power to set aside the order passed against the party in his
absence provided sufficient cause is shown for absence. The Rule provides that
such application has to be filed within 10 days from the date of passing of the
order. The said time limit, in my opinion, is not an embargo placed upon the
Labour Court/Tribunal to entertain application even if the delay in filing such
application is sufficiently explained. If the application is filed within 10
days, the party will not be asked to explain why it had not approached earlier,
but it has only to show sufficient cause for its absence. However, after 10
days, the party seeking setting aside of an exparte order, apart from showing
sufficient cause for non-appearance, will also have to furnish explanation for
not filing application within 10 days. This is all that the provision means in
prescribing a time limit for filing the application. Any other interpretation would
be contrary to the broad principles laid down by the Supreme Court in Suraj
Malting and would render the provision illegal and ultra vires. The above
interpretation, while obviating the need to strike down the provision, would
offer a practical solution and also subserve the ends of justice. Take for
instance a case where a party is not duly served with summons and comes to know
of the exparte award or the order to proceed exparte after expiry of 10 days.
In such a case, if the time limit prescribed under Rule 16 (2) is held to be
sacrosanct, the Labour Court/Tribunal would stand denuded of its power to set
aside the exparte order/award. It would be against basic tenets of
jurisprudence that dispute between the parties should be decided after due
service of notice and opportunity of hearing to both the sides. Rule 16 (2) was
thus not an impediment in the way of the Labour Court in entertaining the
application filed by the petitioner for setting aside the exparte award or
deciding the same on merits. The view taken to the contrary is manifestly
illegal.
In the instant matter, it
is worth noticing that the award was published on 19.5.2018 and as per Section
6-A, the award becomes enforceable on the expiry of 30 days from the date of
its publication. The application was filed on 11.6.2018 i.e. before expiry of
30 days from the date of publication of the award or its becoming enforceable
under law. In such view of the matter, even otherwise, the application having
been filed before the award became enforceable could not be thrown out on the
ground that it was filed beyond the period prescribed under Rule 16 (2).
Coming to the second aspect
as to whether the Labour Court/Tribunal committed any error in declining to
accept the explanation offered by the petitioner for its non-appearance, it is
worthwhile to note the exact explanation offered by the petitioner for its
non-appearance. The case taken by the petitioner in this regard was that it
came to know of exparte award on 26.5.2018. Its Manager Mahendra Singh
Shekhawat (who filed affidavit in support of the application) met the
authorised representative Sri Gyaneshwar Mishra. At that stage, he informed the
Manager that since 5th July, 2017 he had to make frequent visits to his home
district Jaunpur on account of personal work and that he had deputed his junior
to do pairvi in the case, but who did not discharge the responsibility
properly. Thereafter, the Manager requested the authorised representative to
take appropriate steps so that the matter is decided on merits, but he
expressed his inability and said that he will not be able to take any step in
this regard till August, 2018 as he will remain busy with his personal work.
Thereafter, the petitioner Company approached another person to act as its
representative and got the application filed without any further delay on
11.6.2018. The Labour Court has observed that the petitioner has offered a
confusing explanation and in case it was having knowledge that its authorised
representative was visiting his home district on regular basis, it ought to
have authorised another person to act on its behalf. Evidently, the Tribunal
has completely misread the explanation offered by the petitioner. In M.K.
Prasad (supra) where also explanation offered was that the counsel did not
appear after a particular date to contest the case without any information to
the party, the Supreme Court has observed thus:-
“10. In the instant case,
the appellant tried to explain the delay in filing the application for setting
aside the ex-parte decree as is evident from his application filed under Section
5 of the Limitation Act accompanied by his own affidavit. Even though the
appellant appears not to be as vigilant as he ought to have been, yet his
conduct does not, on the whole, warrant to castigate him as an irresponsible
litigant. He should have been more vigilant but on his failure to adopt such
extra vigilance should not have been made a ground for ousting him from the
litigation with respect to the property, concededly to be valuable…”
In my opinion, it is a fit
case where the explanation offered has to be accepted in the interest of
justice. While at the same time, the inconvenience cause to the respondent
workman could be compensated in terms of cost.
Accordingly, the
application dated 11.6.2018 filed by the petitioner for setting aside exparte
award is allowed. The exparte award dated 20.12.2017 is set aside subject to
payment of a cost of Rs.5000/- to the respondent-workman within three weeks
from today. The Tribunal shall now decide the matter afresh, after providing
opportunity of hearing to both the sides.
The writ petition stands
allowed accordingly.[36] ”
5.10 Judgement of Hon’ble High Court Madras In Case of Kolandhayee Vs. The Deputy Commissioner of Labour Dt of
Judgement 19.04.2010W.A. No. 2505 of 2001
That on the point of ex parte order not only
Allahabad – Lucknow High Court has given pronouncement but in Madras High Court
giving finding Power of Recall of Ex-Parte Award / order vested in the in the
authority, and order of ex parte having no value if the contesting parties have
appeared and file recall application before the competent authority, therefore
recalling of the order of ex parte is vested in the power of the authority
because providing opportunity of hearing is the fundamental right of the affected
parties in the case of Kolandhayee Vs. The Deputy Commissoner of Labour
(Commissioner for Workmen’s Compensation Act) and another) the Hon’ble Court
has given clear cut finding with regard to recall of ex parte order and
providing the opportunity of hearing, the order is reproduce here as under,
“ Judgment of the Court was delivered by M.Venugopal, J.
The
Appellant/2nd Respondent has filed this Writ Appeal as against the order of the
Learned Single Judge dated 18.02.2000 in W.P.No.19515 of 1992.
2.The
Learned Single Judge, while passing orders in the Writ Petition filed by the
Appellant/2nd Respondent has inter alia observed that 'there is no provision in
the Act to entertain such an application. The order of the Authority is far in
excess of its jurisdiction. The Authority having some quasi judicial functions
should exercise it judicially. The order passed by the 1st Respondent cannot be
sustained on any ground. There are errors apparent on the face of records, etc.
and resultantly, allowed the Writ petition without costs.'
3.According
to the Learned counsel for the Appellant/2nd Respondent, the Appellant's
husband died while at work and the Learned Single Judge wrongly assumed that
there was no application filed for condonation of delay, but the candid fact
was that the Appellant indeed filed a set aside application within 30 days on
19.08.1991, since I.A.No.6 of 1991 was dismissed for default only on
24.07.1991, there was no necessity for filing an application for condonation of
delay in filing the restoration petition W.C.I.A.No.25 of 1991.
4.It
is the further contention of the Learned counsel for the Appellant/2nd
Respondent that the Learned Single Judge had not appreciated the fact that the
1st Respondent/Authority had passed a valid and considered order in
W.C.I.A.No.25 of 1991 and there was no necessity to interfere with the same
inasmuch as the claim was to be decided on merits and therefore, prays for
allowing the Writ appeal in the interests of justice.
5.In
response, the Learned counsel for the 2nd Respondent/Petitioner/ Management
supports the order the Learned Single Judge in allowing the Writ petition by
setting aside the order passed by the 1st Respondent/Authority and prays that
the said order may not be interfered with at this stage of the appeal.
6.The
2nd Respondent/Writ Petitioner in the Writ petition had taken a specific stand
that the 1st Respondent/Authority had not assigned any reasons, much less
acceptable reasons for setting aside the order passed in W.C.I.A.No.6 of 1991 on
24.07.1991 and restoring the W.C.No.101 of 1989 and in fact, the 1st
Respondent/Authority had no jurisdiction to entertain I.A.No.25 of 1991 after
dismissing I.A.No.6 of 1991, which was filed by the Learned counsel for the
Appellant/2nd Respondent on 18.04.1991.
7.The
substance of the stand of the 2nd Respondent/Petitioner is that the 1st
Respondent/Authority had no jurisdiction to pass orders to set aide the
Ex-parte Order and also restoring the application which was dismissed for
default and the suit does not contemplate such a position and in fact, the
Appellant/ 2nd Respondent had not filed any application for condonation of
delay in projecting the application to set aide the Ex-parte Order and in the
absence of such an application, the 1st Respondent/Authority ought not to have
entertained the subsequent application.
8.Also,
it is the plea of the 2nd Respondent/Management that the accident took place in
the year 1977 and the application claiming compensation was filed in the year
1989, after a huge delay of 12 years and there was no acceptable reasons
furnished on the side of the Appellant/2nd Respondent to condone the same and
this would point out that the Appellant/2nd Respondent was never diligent and
pursuing the remedy of claiming the compensation.
9.It
is to be noted that the Appellant/2nd Respondent filed I.A.No.25 of 1991 before
the 1st Respondent/Authority only on 19.08.1991 (after the dismissal of
I.A.No.6 of 1991) filed for restoration of appeal viz., W.C.No.101 of 1989,
which was dismissed for default on 18.03.1991. In reality, the said application
was filed after a gap of 5 months.
10.That
apart, the order of the 1st Respondent/Authority dated 26.05.1992 in allowing
the I.A.No.25 of 1991 filed by the Appellant/2nd Respondent was a non-speaking
order and no satisfactory reasons were furnished to reject the contentions of
the 2nd Respondent/Writ Petitioner/Management and therefore, the same was
allowed to be set aside.
11.The
stand of the Appellant/2nd Respondent in the Writ petition was that her husband
was employed as a godown worker with the 2nd Respondent/Petitioner and in the
course of his employment, he died on 23.03.1987 and this aspect could not be
re-agitated since the same was earlier raised before this Court in W.P.No.3741
of 1990 and by an order dated 02.11.1990 in the aforesaid Writ petition, a
clear finding was given by this Court in favour of the Appellant/2nd
Respondent.
12.Continuing
further, it is the stand of the Appellant/2nd Respondent that the application,
oral evidence and the order of the 1st Respondent/Authority dated 26.05.1991
unerringly pointed out her non-appearance and her counsel's absence were
bonafide and therefore, she was entitled to contest the matter, since she being
an illiterate person, as per finding rendered by the 1st Respondent/Authority.
13.At
this juncture, it is useful for this Court to refer to the I.A.No.25 of 1991
filed by the Appellant/2nd Respondent wherein she had among other things stated
that she was suffering from illness and not able to move and appear before the
1st Respondent/Authority on the previous hearing dates on 11.12.1990,
08.01.1991 and finally, it was posted to 18.03.1991. Moreover, her counsel
suffered a heart-attack and he was admitted into the hospital for the last few
months and therefore, could not made other arrangements to represent the matter
before the 1st Respondent/Authority and also that she was ill and could not
appear on 18.03.1991 and as such I.A.No.25 of 1991 was dismissed for default on
18.03.1991.
14.As
a matter of fact, though the Appellant/2nd Respondent could not contact her
counsel, she informed about her illness and her inability to attend the Court
on 18.03.1991 and her counsel filed an application to set aside the Ex-parte
Order and prayed for restoration of the same and to decide the case on merits
on 18.04.1991 and the said application taken on filed as I.A.No.6 of 1991 and
was posted to 20.05.1991 and adjourned to 28.05.1991 and finally to 24.07.1991.
15.Because
of the fact that the Appellant/2nd Respondent was suffering from Jaundice and
her counsel again suffered an Heart Attack both of them could not be present on
24.07.1991 and as such the I.A.No.6 of 1991 was dismissed for default and
therefore, had prayed for restoration of I.A.No.6 of 1991 and W.C.No.101 of
1981 to file for deciding the same on merits.
16.The
2nd Respondent/Writ Petitioner in the counter had averred that numbering of the
application inter-locutory as well as the present application were not at all
maintainable and only option for the Appellant/2nd Respondent was to file an
appeal as also that reasons adduced by the Appellant/2nd Respondent were not
true and delay was not explained and indeed in the Writ petition filed by the
Management, direction was issued to the 1st Respondent/Authority to dispose of
W.C. application within four weeks and the time had already elapsed and
therefore, no relief could be granted to the Appellant/2nd Respondent. Added
further, in the absence of an application to set aside the dismissal of the
inter-locutory application, there was no justification for the Appellant/2nd
Respondent to file an application to set aside the Ex-parte Order passed on
18.03.1991.
17.On
going through the order of the 1st Respondent/Authority in I.A.No.25 of 1991
dated 26.05.1992, we find that the 1st Respondent/Authority had clearly opined
that the Appellant/2nd Respondent was an aged and illiterate person and
further, if her counsel had participated in the several hearings, then these
types of dismissal orders would not have been passed. But in the present case,
the Appellant/2nd Respondent had engaged another counsel who had conducted the
case and examined the witnesses and accordingly, she had performed her part. In
short, the 1st Respondent/Authority had found Appellant's illiteracy and her
ignorance, where two factors which went against her. Further, the 1st
Respondent/Authority had come to the conclusion that the Appellant/2nd
Respondent version that she was afflicted with Jaundice and she took medicine
and moreover, she had no adequate facility for medical treatment.
18.It
is not out of place for this Court to make a significant mention that Section 23 of the
Workmen's Compensation Act,
1923 invests the Commissioner with all the powers of the civil Court under the
Code of Civil Procedure for the purpose of taking evidence on oath and
enforcing the attendance of witnesses and compelling the production of
documents and material objects.
Relevant
provisions of the Code of Civil Procedure are
(a)Sections 27 to 32;
(b)Order
XI, Rules 12 to 18;
(c)Order
XVI;
(d)Order
XVIII, Rules 16, 17 and 19
(e)Further,
Rule 41 of the Workmen's Compensation Rules enables the following provisions of
First Schedule to the Code of Civil Procedure applicable to proceedings before
the Commissioners, viz., those specified in Order V, Rules 9 to 13 and 15 to
30;
(f)Order
IX and Order XIII, Rules 3 to 10;
(g)Order
XVI, Rules 2 to 21;
(h)Order
XVII and Order XXIII, Rules 1 and 2.
19.We
aptly point out that in Praveen
Industries v. Banawal Singh 1990 ACJ 980, the facts were that the
Workmen's Compensation Commissioner had allowed the workman's claim to
compensation and the employer filed an application under Order 9, Rule 13 of
the Civil Procedure Code to get the order of that Authority set aside on the
basis that it was passed ex-parte. However, the Authority rejected that
application and the employer preferred an appeal before the High Court under
Order 43, Rule 1 of the Civil Procedure Code. The issue before the High Court
was whether the appeal was maintainable. The contention was raised that since
Order 9, Rules 9 to 13 made applicable, the aforesaid application as well as
the appeal both were maintainable. But the said contention was partly rejected
and it was observed by the High Court as follows:
"As
could be seen from Rule 41, only certain specified provisions of the Code of
Civil Procedure are made applicable to the proceedings under Workmen's Compensation Act. Order 9 of
Civil Procedure Code is one of them. Therefore, certainly an application for
setting aside an ex parte order could be filed under Order 9, Civil Procedure
Code before the Workmen's Compensation Authority...
An
appeal under Order 43, Rule 1, Civil Procedure Code lies against an order made
under Rule 13 of Order 9 in view of clause (d) of Order 43, Rule 7, Civil
Procedure Code. But the said provision is not made applicable to the
proceedings under the Workmen's Compensation Act under
Rule 41 of the Workmen's Compensation Rules. Therefore, the appeal under Order
43, Rule 1, Civil Procedure Code is not maintainable."
20.Be
that as it may, in fact, no appeal is maintainable under Section 30 the
Workmen's Compensation Act,
1923 as against an order rejecting an application for recall of Ex parte Order
as per decision Shravan Pal
Singh v. Pooran Nath Goswami (1996) 2 LLN 980.
21.Admittedly,
the provisions of the Evidence
Act are not applicable before the Commissioner under the
Workmen's Compensation Act which
are summary in nature.
22.We
also recall the observations made in Vinlab Export Pvt. Ltd. Nainital v. Karan
Bahadur 2006 (110) FLR 416, 417 whereby and whereunder it is observed that
'under Section 5 of
the Limitation Act, condonation of delay application, the workmen cannot be
deprived of right to file claim petition on account of technicalities and there
should be a liberal approach in condoning the delay and that the Tribunal's
order in condoning the delay was not an erroneous one.'
23.In
fact, Section 5 of
the Limitation Act is applicable to the proceedings under Workmen's Compensation Act as per
decision Premchand v. Workmen Compensation Commissioner and others (2001) LLR
SUM 955 (ALLHC).
24.Though
as per the Workmen's Compensation
Act, the Commissioner does not possess the inherent powers of a civil Court
conferred by a Code of Civil Procedure, but the principles of the said Section
applies to quasi-judicial authorities like the Commissioner Workmen
Compensation as per decision K.K.Aboo v. The Workmen's
Compensation Commissioner 1977 ACJ 446 (Ker).
25.We
also point out another decision Koli Mansukh Rana v. Patel Natha
Ramji 1992 ACJ 772, 778 wherein at paragraph 17, it is observed thus:
"17.Before
parting with this judgment, it is difficult to resist the temptation of
mentioning about the approach of the Learned Commissioner. Needless to mention
that the proceedings before the Commissioner for Workmen's Compensation are
proceedings not like before a civil court and the strict principles of Civil
Procedure Code and Evidence
Act do not apply as they are applicable in civil proceedings before a
civil court. The proceedings under the Act are distinct and stand on a
different footing. Higher responsibility is cast on the Commissioner. For
example, even under Section
10-A of the Act, the Commissioner is empowered to initiate suo motu
inquiry about an employment accident or injury and to collect necessary
information on receipt of intimation about such an accident from any source.
Rules are also made under the Act. Therefore, the Commissioner is obliged to
see that the rightful claim arising out of unfortunate employment injuries is
not delayed or defeated on account of any such technicalities or procedures.
The Learned Commissioner could have resorted to the provisions of section 12 of he Act. But
unfortunately, though the Commissioner found that the applicant was a workman,
did not award compensation on hypertechnical ground that it was not proved as
to who was the employer. Could a workman who is legally entitled to
compensation on account of such calamities arising out of employment injuries
be left at the mercy of such technicalities? The Learned Commissioner,
unfortunately, failed to address himself to the underlying design and
desideratum of the provisions of the Act and the relevant rules. An illiterate
and unsophisticated village labourer remains unpaid and was deprived of his rightful
compensation for a long spell of nine years on the altar of technicalities. Be
as it may."
26.In Management of Venkateswara
Industries Chennai v. Deputy Commissioner Labour II, Chennai (2002)
LLR 67 (MAD), it is held that 'interference by a High Court in setting aside an
Ex-parte Order by the Compensation Commissioner will not be justified.
27.In Thangavel v. Saminathan and
others 2004 LLR 126, this Court has held 'refusal of the Commissioner
to set aside an Ex-parte Award on the ground that on an earlier occasion also
the permission to set aside an Ex-parte Order was allowed and again it could
not be allowed will not be tenable.'
28.In M.S.Grewal v. Deep Chand Sood 2001
(8) SCC 151, the Honourable Supreme Court has held hereunder:
"Law
Courts will lose their efficacy if they cannot possibly respond to the need of
approach ought not to be thwarted on the basis of such technicality since
technicality cannot and ought not to outweigh the course of justice."
29.In N.Balakrishnan v.
M.Krishnamurthy 1998 S.C.F.B. and Rent C 427, it is held that law of
limitation is founded in public policy on the 'maxim of interest reipublicae up
sit finislitium' i.e. for the general welfare, and observed thus:
"The
primary function of a Court is to adjudicate the dispute between the parties
and to advance substantial justice. Time limit fixed for approaching the Court
in different situations is not because on the expiry of such time a bade cause
would transform into a good cause."
30.In
the decision Sakina Bibi v.
Shipping Corporation of India 2006 (3) CLR 783 CAL : 2006(3) CHN417,
it is held that 'refusal to condone the delay was not proper and in the
interests of justice no justification to disbelieve the explanation of delay
that on the assurance of employer she could not file a claim petition within
limitation.'
31.The
concept of 'every day's delay must be explained' does not mean that a pedantic
approach should be made. Really speaking, it must be applied in a rational
common sense and pragmatic manner. It is now a well accepted principle that
when substantial justice and technical considerations are pitted against each
other, cause of substantial justice deserves to be preferred. After all, the
end view is that an elastic approach of a Court of Law in a processual system
of jurisprudence is to deliver even handed justice on merits in preference to
the approach which stifles decision on merits.
32.On
a careful consideration of respective parties and bearing in mind of an
important fact that the Appellant/2nd Respondent is a illiterate and ignorant
person and also considering the facts and circumstances of the case in an
integral fashion on the basis of available materials on record, we are of the
considered view that rules of procedure and the rules of limitation are not
meant to destroy the right of parties and in the present case on hand, the 1st
Respondent/Authority while allowing I.A.No.25 of 1991 by his order dated
26.05.1992 had exercised his discretion in proper and sound manner that too
with a justice oriented approach and the said order does not suffer from any
vice, arbitrariness or capriciousness and in fact, he had applied the design
and desideratum of the provisions of the Workmen's Compensation Act, 1923 and the
rules in a proper perspective, but these vital aspects were not taken note of
by the Learned Single Judge while allowing the W.P.No.19515 of 1992 dated
18.02.2000 and in short, we are not in agreement with the observation made by
the Learned Single Judge that the 1st Respondent/Authority had not applied his
mind and there was wilful failure on his part to advert to the material
circumstances and therefore, we are perforced to interfere with the said order
of the Learned Single Judge and accordingly, allow this appeal by setting aside
the order in W.P.No.19515 of 1992 dated 18.02.2000 to prevent aberration of
justice.
33.In
the result, the Writ Appeal is allowed leaving the parties to bear their own
costs. Resultantly, the order passed by the Learned Single Judge in W.P.No.19515
of 1992 dated 18.02.2000 is set aside. Having regard to the facts and
circumstances of the case, there shall be no order as to costs.”[37]
The Hon’ble Court has clearly indicated and
given finding that the ex parte awarding authority are having power to decide
the matter on merit after recalling the first order which was passed without
giving opportunity of hearing passed in violation of natural justice, provide
opportunity of hearing, means ex parte awarding court having power to recall
its own order, and after recalling the same, may passed the order on merit
after hearing the affected parties in the interest of justice.
5.11 Judgement of Hon’ble High Court Madras In Case of A.V. Varghese Vs.N.K.
Kumaran Dt of Judgement 10.08.2011Writ C No. 14248 of 2009 (A)
Kerala High Court giving finding Power of Recall of Ex-Parte Award /
order vested in the Commissioner of Employee’s Compensation Act, 1923, the
Hon’ble Court has further pleased to clear the interpretation that the power of
recall is inherent power and power of review is not vested in Commissioner,
Employee’s Compensation Act, 1923, order of the Hon’ble Court is reproduce here
as under,
“Ext.P4 order passed
by the Court of the Commissioner for Workmen's Compensation, Kannur in W.C.Case
No. 127 of 1991 is under challenge in this writ petition. The brief facts of
the case are as follows:
2.
The first respondent herein filed an application before the Court of the
Commissioner for Workmen's Compensation, Kozhikkode seeking payment of
compensation for the injuries sustained by him in the course of employment as a
toddy tapper under opposite parties 1 to 11 in the said application. The said
application was later transferred to the Court of the Commissioner for
Workmen's Compensation, Kannur. By Ext.P1 order passed on 26.4.2008 the Court
of the Commissioner for Workmen's Compensation awarded the sum of Rs.47,940 as
compensation to the first respondent and directed the petitioner herein, who
was joined as opposite party No.4, to pay the said amount of compensation with
interest at 12% per annum from the date of the accident together with costs
Rs.2,000/-.
3.
The case set out by petitioner herein is that he hadnot WP (C) No. 14248 of
2009 received any notice in W.C.Case No. 127 of 1996 and that he became
aware of the proceedings instituted by the first respondent only when a copy of
Ext.P1 order was served on him in the address given in the writ petition after
it was redirected by the postal authorities. It is stated that after a copy of
Ext.P1 order was served on the petitioner on 6.10.2008, he immediately filed
Exts.P2 and P3 applications dated 13.10.2008, the former to set aside the
exparte order and the latter to condone the delay of five months and seventeen
days in filing the former application. By Ext.P4 order which is impugned in
this writ petition, the Court of the Commissioner for Workmen's Compensation
dismissed the applications on the ground that the Commissioner for Workmen's
Compensation is not empowered to review his own orders and can correct only
clerical or arithmetical mistakes arising from any accidental slip or omission.
Hence this writ petition, challenging Ext.P4 and seeking a direction to the
Court of the Commissioner for Workmen's Compensation to consider Exts.P2 and P3
applications and pass orders thereon on the merits. It is contended that the
Commissioner for Workmen's Compensation WP (C) No. 14248 of 2009 is
empowered under rule 41 of the Workmen's Compensation Rules, 1924 to exercise
the powers of the civil court under Order IX and therefore, the statement in
Ext.P4 order that the Commissioner for Workmen's Compensation does not have the
power to set aside an exparte order for the reason that he has no power of
review, cannot be sustained. The petitioner also relies on the decision of a
learned single Judge of this Court in O.P. No14159 of 1996 in support of his
contention that under rule 41 an application to set aside an order passed
exparte is maintainable.
4.
The first respondent, who is the principal contesting respondent has been
served. He has also sworn to a counter affidavit wherein it is contended that
the Commissioner for Workmen's Compensation did not commit any mistake, that
the address given by the petitioner to the Welfare Fund Inspector, Kozhikkode
was the address given in Ext.P1 order, that the petitioner purposefully gave a
false address to avoid being proceeded against for realization of compensation
by his employees, that steps were taken on a number of occasions to serve
notice on the petitioner by post, but such attempts were WP (C) No. 14248 of
2009 unsuccessful, that thereupon the notice was published in the
`Pradeepam' daily dated 16.11.2005 and 6.3.2008, that even thereafter the
petitioner did not enter appearance and therefore the Commissioner for
Workmen's Compensation set him exparte. The first respondent has also raised
various other contentions including the contention that the remedy of the
petitioner if he is aggrieved by Ext.P1 is to challenge the same in appeal and
therefore, as the petitioner has an alternate remedy, the writ petition is
liable to be dismissed.
5.
When this writ petition came up for hearing on 25.7.2011, after hearing the
learned counsel on both sides it was felt that the records leading to Ext.P4
should be called for. I accordingly directed the Court of the Commissioner for
Workmen's Compensation, Kannur to make available the files leading to Ext.P4
order through the learned Government Pleader. The files were accordingly
produced by him today. The learned Government Pleader after going through the
files submitted that the files do not contain an application for review and
that it contains the originals of Exts.P2 and P3 applications filed by the
petitioner to set aside Ext.P1 order passed exparte WP (C) No. 14248 of
2009 after condoning the delay in filing the said application. I have also
perused the files. The original of Ext.P3 application is at pages 311 to 315.
The prayer therein is to condone the delay of 517 days in filing the application
to set aside the exparte order passed on 26.4.2008. The original of Ext.P2 is
at pages 351 to 355 thereof. The prayer therein is to set aside the exparte
order passed on 26.4.2008. Apart from the said applications, no application
seeking a review of Ext.P1 order is available in the files. The Court of the
Commissioner for Workmen's Compensation however rejected the applications on
the ground that under rule 32(2) of the Workmen's Compensation Rules, 1924 he
is not empowered to review his own orders and can correct only clerical errors.
6.
In O.P.No. 14159 of 1996, after analyzing rules 32 and 40 (1) of the Workmen's
Compensation Rules 1924, Justice J.B.Koshy (as his lordship then was) held as
follows:
"1.....
In this case, Ext.P1 judgment was passed exparte and petition under rule 41
read with connected provisions under the Code of Civil Procedure was filed
before the Commissioner. This was rejected because of the provisions in rule
32.
WP
(C) No. 14248 of 2009
2.
It is argued by the learned counsel for the respondent that after passing the
judgment if the petitioner is aggrieved his remedy was to file an appeal
under Section
30 of
the Workmen's Compensation
Act.
To avoid deposits, he chosen this method and in view of rule 32 Commissioner
was right in not interfering with the matter.
3.
It is true that under rule 32 Commissioner cannot review the order already
passed. In view of rule 41, I am of opinion that if the judgment is passed as
exparte, Commissioner has got power to set aside the above if he is satisfied
that there are reasons for setting aside the exparte order. Learned counsel for
the respondent also emphasized the effect of the proviso to rule 41 and also
submitted that even if there are no grounds for setting aside the exparte order
in this case, under rule 41, Commissioner has got power to set aside exparte
order. In paragraph 5 of counter affidavit, he details the delay and latches on
the part of the petitioner in not prosecuting the case and delaying the matter.
Whether the petitioner has got sufficient grounds for setting aside the exparte
order is a matter for the Commissioner to look into. But, the Commissioner has
got power to set aside an exparte order if he is satisfied that the reasons
stated by the party are correct. Therefore, Ext.P2 application for setting
aside the exparte order has to be considered by the Commissioner on merit.
Therefore, I set aside Ext.P3 order and direct the Commissioner to consider
Ext.P2WP (C) No. 14248 of 2009 application on merit".
7.
I am in respectful agreement with the opinion of the learned single Judge in
O.P.No.14159 of 1996. It is evident from a reading of Ext.P4 order that the
Commissioner for Workmen's Compensation treated the applications filed by the
petitioner as applications to review his own order. The Commissioner for
Workmen's Compensation thereby misdirected himself when he passed the impugned
order. As held by this Court in O.P.No.14159 of 1996, rule 41 of the Workmen's
Compensation Rules, 1924 empowers the Commissioner for Workmen's Compensation
to set aside the order passed exparte if the person against whom the exparte
order has been passed makes out sufficient grounds for setting aside the
exparte order. It is evident from the materials on record and the files leading
to Ext.P4 that the Commissioner for Workmen's Compensation has not considered
the application submitted by the petitioner to set aside the exparte order by
treating it as an application filed under rule 41 of the Workmen's Compensation
Rules, 1924. Necessarily therefore, it has to be held that Ext.P4 order cannot
be sustained.
WP
(C) No. 14248 of 2009 In the result I allow the writ petition, set aside
Ext.P4 and direct the Court of the Commissioner for Workmen's Compensation,
Kannur to pass orders on Exts.P2 and P3 applications, expeditiously and in any
event within two months from the date on which either the petitioner or the
first respondent produces a certified copy of this judgment before him. Till
such time as orders are passed on Exts.P2 and P3 applications, recovery
proceedings pursuant to Ext.P1 order shall be kept in abeyance. I make it clear
that I have not expressed any opinion on the merits of the rival contentions
and that it is for the Commissioner for Workmen's Compensation to decide
whether having regard to the pleadings and the materials on record, Ext.P1
order is liable to be set aside as prayed for by the petitioner.”[38]
5.12 Judgement of Hon’ble High of Allahabad in Case of Writ – C NO. 33855 of 2006 (Marshal Securities Vs. State of
UP date of order 13.09.2006
That the Allahabad High Court has framed two questions with regard to
the power of Employee’s Compensation Commissioner under the Employee’s
Compensation Act, 1923, the question is quoted below as under
(1)
Whether the law laid down in
paragraph 16 of the judgment in the case of United India Insurance Co. Ltd. v.
Workmen's Compensation Commissioner 1996(73)
F.L.R, 1541 lays down the correct law ?
(2) Whether the Workmen's
Compensation Commissioner has the power to review his own award under the
Workmen's Compensation Act, 1923?
That the
Hon’ble Court has framed the aforesaid two questions and till date no proper
answer has been given in the context of the question as framed and finally
aforesaid writ petition has been decided in terms of compromise and till date
no answer has been given and writ petition is disposed of vide order dt. 13.10.2022
is reproduce herewith, “ 1. Vide order dated July 6, 2022, noticing the fact
stated in the affidavit filed by learned counsel for parties, we had pleaded
settlement of dispute amongst them, the matter was
referred to the
Civil Judge (Senior Division), Ghaziabad for verification of the settlement. In
the report received from the Civil Judge (Senior Division), Ghaziabad it has
been mentioned that the settlement between the appellant and respondent no. 3
was found to be genuine and they prayed before the Court for endorsing the
same. 2. Keeping in view the aforesaid fact, the present petition is disposed
of, as the dispute has been compromised between parties.” The question has been
framed and is still required for an answer but the matter aforesaid has already
been adjudicated without any answer, judgement is quoted below,
“Hon’ble
Justice Vineet Saran, J.
1.
The moot question for determination of this Court in this writ petition is as
to whether the Workmen's Compensation Commissioner (for short 'the Commissioner')
has power to review his own Award passed under the Workmen's Compensation Act, 1923 (for
short 'the Act').
2.
The brief facts of this case are that the petitioner-firm is engaged in the
business of supply of security guards. On request of Respondent No. 4 Vinod
Agarwal of M/s Agarwal Iron and Steel Company Ltd., the petitioner firm
supplied some security guards, including two gun-men, out of whom Raj Kumar Singh,
husband of Respondent No. 3 was one, who was shot dead while on duty. The case
of the petitioner, however, is that at the time of the incident the services of
the deceased gun-man were being utilized by the Respondent No. 4 for personal
use and as such he could not be treated to be on duty. The respondent No. 3
Kamlesh, wife of late Raj Kumar Singh, then filed a claim under the Act for
compensation of Rs. 4,15,960/- along with 12% interest and also 50% penalty.
Such claim was made against the petitioners and the Respondent No. 4. After
considering the case of the respective parties, the Commissioner passed an
Award on 31.3.2005, granting compensation of Rs. 3,79,563/- against the
Respondent No. 4. Then after a gap of nearly two months, on 25/30.5.2005 the
Respondent No. 4 filed an application under Section 23 of the Act;
Rule 41 of the Workmen's Compensation Rules, 1924 (for short 'the Rules') and
Section 151 of the Code of Civil Procedure (C.P.C.), with the following prayer:
It
is, therefore, prayed that the Judgment dated 31.3.2005 be set aside as against
the applicant
3.
The main ground for reviewing or setting aside the judgment (Award) dated
31.3.2005 was that the mandatory provision of framing issues as provided under
Rule 28 of the Rules had not been complied with, which is an error apparent on
the face of the record, resulting in miscarriage of justice. The petitioners
herein filed their objections to the review application stating that the
Commissioner does not have the power to review his judgment, and that even if
such an application was filed on the ground of the Award being erroneous in
law, then too the same would not be maintainable. It was also stated in the
objection that the copy of the said application dated 25/30.5.2005 had not been
supplied to the petitioners and that they would give a detailed reply on
receipt of such application.
4.
However, by order dated 7.12.2005, the Commissioner allowed the application of
the Respondent No. 4 and set aside the Award dated 31.3.2005 on the condition
that the Respondent No. 4 deposits a sum of Rs. 80,000/- within one week and
pays a sum of Rs. 10,000/- as cost to the claimant-Respondent No. 3. The
Commissioner thereafter proceeded to decide the matter on merits and passed a
fresh Award dated
20.4.2006,
whereby the entire claim of Respondent No. 3, amounting to Rs. 4,15,960/- along
with 12% interest, was awarded in favour of Respondent No. 3 and against the
petitioners. This writ petition has, thus, been filed by the petitioners
challenging the order dated 7.12.2005 and the subsequent Award dated 20.4.2006
passed after allowing the review application.
5. I
have heard Sri V.R. Agarwal, learned Senior counsel along with Sri C.B. Gupta,
learned Counsel appearing for the petitioners; Sri Anoop Trivedi for
claimant-Respondent No. 3 and Sri R.K. Awasthi for Respondent No. 4. Learned
Standing counsel appeared for Respondents No. 1 and 2. Learned Counsel for the
respondents had made a statement that they do not wish to file counter
affidavit and thus, with the consent of the learned Counsel for the parties,
this writ petition is being decided at the admission stage itself.
6.
Learned Counsel for the respondents raised a preliminary objection regarding
the maintainability of this writ petition. It has been stated that once the
Award dated 20.4.2006 had been passed, the same could not be challenged in writ
jurisdiction as the petitioners have an alternative remedy of filing an appeal
under Section 30 of
the Act. Such objection of the respondents is not tenable as, besides the
Award, the petitioners have also challenged the order dated 7.12.2005 whereby
the application for reviewing the earlier Award dated 31.3.2005 had been
allowed and the aforesaid Award had been set aside.
7.
The decision of the Apex Court in the case of Sadhana Lodh v. National Insurance
Co. Ltd. , as has been relied upon by the learned Counsel for the
respondents, would not apply to the facts of the present case. In the said case
the writ petition challenging the Award of the Motor Accident Claims Tribunal
passed under the Motor
Vehicles Act, was held to be not maintainable on the ground that mere wrong
decision, without anything more, would not be enough to attract the
jurisdiction of the High Court under Article 226 of the
Constitution of India. In the present case, besides the Award, the order dated
7.12.2005 setting aside the award, is also under challenge.
8.
The Apex Court in the case of Dr.
Smt. Kuntesh Gupta v. Management of Hindu Kanya Mahavidvalava, Sitapur ,
while dealing with a case where the Vice Chancellor disapproved the dismissal
of the Principal of the College and ordered for his reinstatement, had reviewed
his own order of dismissal and such order passed in review was thereafter
challenged in writ jurisdiction, which was held to be maintainable on the
ground that the Vice Chancellor had no power of review, and exercise of such
power by the Vice Chancellor was absolutely without jurisdiction and on such
facts, it was held that the same could surely be challenged before the High
Court by petition under Article
226 of the Constitution of India and alternative remedy of appeal
would not be a bar in such a case.
9.
Since the present case is not a simple case of challenging the Award but also
the order allowing the review application of the Respondent No. 4 by which the
earlier Award had been set aside, in my view, the question regarding the power
of the Commissioner to review his order would require to be first determined by
this Court and the preliminary objection regarding the maintainability of this
writ petition on account of alternative remedy of appeal under Section 30 of the Act,
would thus not be tenable and is liable to be rejected.
10.
Now before coming to the main question as to whether the Commissioner has the
power to review his own decision, certain provisions of the Act have to be first
noticed.
11. Section 6 of the Act
provides for review in certain cases which would be only limited to half
monthly payments payable under the Act. Section 6 of the Act is
quoted below:
6.
Review.- (1) Any half-monthly payment payable under this Act, either under an
agreement between the parties or under the order of a Commissioner, may be
reviewed by the Commissioner, on the application either of the employer or of
the workman accompanied by the certificate of a qualified medical practitioner
that there has been a change in the condition of the workman or, subject to
rules made under this Act, on application made without such certificate,
(emphasis supplied) (2) Any half-monthly payment may, on review under this
section, subject to the provisions of this Act, be continued, increased,
decreased or ended, or, if the accident is found to have resulted in permanent
disablement, be converted to the lump sum to which the workman is entitled less
any amount which he has already received by way of half-monthly payments.
12. Section 23 of the Act,
relating to the powers and procedure of the Commissioner, as well as Rule 41 of
the Rules, relating to applicability of certain provisions of C.P.C. 1908,
under which the application for review had been filed by the Respondent No. 4,
are also quoted below:
23.
Powers and procedure of Commissioners.- The Commissioner shall have all the
powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908),
for the purpose of taking evidence on oath (which such Commissioner is hereby
empowered to impose) and of enforcing the attendance of witnesses and
compelling the production of documents and material objects, and the
Commissioner shall be deemed to be a Civil Court for all the purposes of Section 195 and of
Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
X X
X X Rule 41. Certain provisions of Code of Civil Procedure, 1908 to apply.-
Save as otherwise expressly provided in the Act or these Rules the following
provisions of the First Schedule to the Code of Civil Procedure, 1908, namely,
those contained in Order V, Rules 9 to 13 and 15 to 30; Order IX; Order XIII,
Rules 3 to 10; Order XVI, Rules 2 to 21; Order XVII and Order XXIII, Rules 1
and 2 shall apply to proceedings before Commissioners, insofar as they may be
applicable thereto: Provided that -
(a)
for the purpose of facilitating the application of the said provisions the
Commissioner may construe them with such alterations not affecting the
substance as may be necessary or proper to adapt them to the matter before him;
(b)
the Commissioner may, for sufficient reasons, proceed otherwise than in
accordance with the said provisions if he is satisfied that the interests of
the parties will not thereby be prejudiced.
13.
Rule 32 of the Rules, which relates to judgment to be passed by the
Commissioner, is being quoted below:
32. Judgment.
- (1) The Commissioner, in passing order, shall record concisely a judgment,
his finding on each of the issues framed and his reasons for such finding.
(2)
The Commissioner, at the time of signing and dating his judgment, shall
pronounce, his decision, and thereafter no addition or alteration shall be made
to the judgment other than the correction of a clerical or arithmetical mistake
arising from any accidental slip or omission.
(emphasis
supplied)
14.
Rule 28 of the Rules relates to the framing of issues and since the application
for setting aside the Award dated 31.3.2005 had been filed mainly on such
ground, the said Rule is also required to be noticed and is quoted below:
28.
Framing of issues. -(1) After considering any written statement and the result
of any examination of the parties, the Commissioner shall ascertain upon what
material propositions of fact, or of law the parties are at variance and shall
thereupon proceed to frame and record the issues upon which the right decision
of the case appears to him to depend.
(2)
In recording the issues, the Commissioner shall distinguish between those
issues which in his opinion concern points of facts and those which concern
points of law.
15.
Having noticed the aforesaid provisions let me briefly note the submissions of
the learned Counsel for the parties.
16.
Sri V.R. Agarwal, learned Senior counsel for the petitioners, has submitted
that the power of review has to be specifically conferred by the Statute and in
the absence of there being any such power, the judgment (Award) passed by the
Commissioner cannot be reviewed. In support of such contention he has relied on
certain decisions, which shall be referred to later. He further contended that
except for Section 6 of
the Act providing for review (which is only for orders relating to half monthly
payments payable under the Act), there is no other provision of review under
the Act. Rule 32 relates to correction of clerical or arithmetical mistakes
arising from any accidental slip or omission. It has been urged that the
Commissioner becomes functus officio after the passing the Award and has no
power under the Act or the Rules to review or recall the same. It has further
been submitted that by the impugned order dated 7.12.2005 the Commissioner has
set aside the earlier Award dated 31.3.2005, as if sitting in appeal against
the said Award, which is not permissible in law. Lastly, it was contended that
the ground on which review was sought was also not tenable in law as the
framing of issues was not mandatory and an Award passed without the issues
being framed, could not be held to be illegal merely on such ground.
17.
Sri Anoop Trivedi, learned Counsel for the claimant-Respondent No. 3, contended
that in the dispute between the petitioners and the Respondent No. 4 as to who
would be liable to pay the compensation, the claimant is suffering irreparably
and he thus urged that either of the two parties may be directed to make the
payment, pending dispute as to who would be liable to pay. He has further
contended that review can be placed in two categories, namely, (i) review on
merits and (ii) procedural review; and as has been held by the Apex Court in
the case of Grindlays Bank
v. Central Government Industrial Tribunal , 'review on merits' would
be permissible only if the Statute provides for the same, whereas the
'procedural review' would be permissible under the inherent powers of all quasi
judicial authority. He has also relied on several decisions, which shall be dealt
with at the stage of discussion regarding this issue.
18.
Sri Awasthi, learned Counsel for the Respondent No. 4, supported the
submissions of Sri Trivedi and contended that in the facts of this case, the
Commissioner had the power to review its Award.
19.
A full Bench of this Court in the case of Shivraji v. Deputy Director of
Consolidation1997 A.W.C. (Suppl.) 454 has, while dealing with a case under the
U.P. Consolidation of Holdings Act, held that it would not be open for the
authorities to review/recall their final orders in exercise of inherent powers,
unless the Act confers such power on them.
20.
A Division Bench of this Court in the case of Suresh Chandra Sharma v. Presiding
Officer, Labour Court-IV, Kanpur 2003 L.L.R. 723 has, while
summarizing the law relating to review, held that "in absence of any
statute providing for review, entertaining an application for review or under
the garb of clarification/'modification/ correction is not permissible."
21.
A Division Bench of Gauhati High Court in the case of Mosstt. GoljanNesha v. M/s Gammon India
Ltd. 2006 Lab.I.C. 2135, while considering the question as to whether the
Commissioner under the Workmen's Compensation Act had the
jurisdiction either to revise or review its own order, held that since the
power of review was not expressly conferred by the Statute, the said power
would not be available to the Commissioner and that the only power provided
under the Statute was for correction of clerical or arithmetical mistakes,
which could be done under Rule 32 (2) of the Rules.
22.
The Rajasthan High Court in the case of Smt. Bimla v. Union of India 1980
(41) FLR 297, also while dealing with a case under the Workmen's Compensation Act, has held
that the decision on a question of law does not constitute a clerical or
arithmetical mistake, and thus cannot be corrected after the passing of the
judgment.
23.
Patna High Court in the case of Basudeo Rai v. Jagarnath Singh 1987 Lab. I.C.
565, also while dealing with a case under the Workmen's Compensation Act, has held
that the Commissioner cannot review his order even on the ground that it was
erroneous in law.
24.
While carving out a distinction regarding review on merits and procedural
review, Sri Trivedi has urged that the case in hand falls under category of
procedural review, as the Award dated 31.3.2005 had been passed without
following the procedure laid down under Rule 28 providing for framing of
issues, and as such even though there may be no specific provision for review,
it would be permissible for the Commissioner to recall or set aside his order
under inherent powers, as there was procedural irregularity. In support of his
submission he has relied on the decision of the Apex Court in the case of
Grindlays Bank Ltd. (supra). The said case before the Supreme Court was under
the Industrial Disputes Act.
It was held therein that it is true that there is no express provision under
the Industrial Disputes Act or
the Rules framed thereunder, giving the Tribunal power of review but it was a
well settled known rule of statutory construction that a Tribunal or body
should be considered to be endowed with such ancillary or incidental powers as
would be necessary to discharge its functions effectively for the purposes of
doing justice between the parties. The Supreme Court was of the view that the
Tribunal should be considered as invested with such incidental or ancillary
powers unless there is indication in the Statute to the contrary. The Apex
Court classified the expression 'review' in two distinct senses, namely,
"(1) a procedural review which is either inherent or implied in a court or
Tribunal to set aside a palpably erroneous order passed under a misapprehension
by it; and (2) a review on merits when the error sought to be corrected is one
of law and is apparent on the face of the record". It was held by the
Supreme Court that "when a review is sought due to procedural defect, the
inadvertent error committed by the Tribunal must be corrected ex debito
justitiae to prevent the abuse of its process, and such power inheres in every
Court or Tribunal". However, the review on merits would lie only when the
Statute specifically provides for the same.
25.
In the said case of Grindlays Bank (supra) the Supreme Court was considering a
case where the party seeking review or setting aside of the award of the
Industrial Tribunal was prevented from appearing at the hearing due to
sufficient cause and was thus faced with an ex parte award. As such, after
holding that the award was without notice to the party, the same was found to
be nothing but a nullity and it was in such circumstances that the Supreme
Court held that the Tribunal has not only the power, but also the duty to set
aside the ex parte award and to direct the matter to be heard afresh.
26.
Grindlays Bank's case was considered by the Apex Court in the case of Kapra Mazdoor Ekta Union v.
Management of Birla Cotton Spinning and Weaving Mills Ltd. 2005(2) A.W.C.
1075. In paragraphs No. 19 and 20 of the said judgment, the Supreme Court held
as follows:
19.
Applying these principles, it is apparent that where a Court or quasi-judicial
authority, having jurisdiction to adjudicate on merit, proceeds to do so, its
judgment or order can be reviewed on merit only if the Court or the
quasi-judicial authority is vested with power of review by express provision or
by necessary implication. The procedural review belongs to a different
category. In such a review, the Court or quasi-judicial authority having
jurisdiction to adjudicate proceeds to do so, but in doing so, commits a
procedural illegality which goes to the root of the matter and invalidates the
proceeding itself, and consequently, the order passed therein. Cases where a
decision is rendered by the Court or quasi-judicial authority without notice to
the opposite party or under a mistaken impression that the notice had been
served upon the opposite parties, or where a matter is taken up for hearing and
decision on a date other than the date fixed for its hearing, are some
illustrative cases in which the power of procedural review may be invoked. In
such a case, the party seeking review or recall of the order does not have to
substantiate the ground that the order passed suffers from an error apparent on
the face of the record or any other ground which may justify a review. He has
to establish that the procedure followed by the Court or the quasi-judicial
authority suffered from such illegality that it vitiates the proceeding and
invalidated the order made therein, inasmuch as the opposite party concerned
was not heard for no fault of his, or that the matter was heard and decided on
a date other than the one fixed for hearing of the matter which he could not
attend for no fault of his. In such cases, therefore, the matter has to be
re-heard in accordance with law without going into the merit of the order
passed. The order passed is liable to be recalled and reviewed not because it
is found to be erroneous, but because it was passed in a proceeding which was
itself vitiated by an error of procedure or mistake which went to the root of
the matter and invalidated the entire proceedings. In Grindlays Bank Ltd. v. Central
Government Industrial Tribunal and Ors. (supra), it was held that once it
is established that the respondents were prevented from appearing at the hearing
due to sufficient cause, it followed that the matter must be re-heard and
decided again.
20.
The facts of the instant case are quite different. The recall of the award of
the Tribunal was sought not on the ground that in passing the award, the Tribunal
had committed any procedural illegality or mistake of the nature which vitiated
the proceeding itself and consequently the award, but on the ground that some
matters which ought to have been considered by the Tribunal were not duly
considered. Apparently, the recall or review sought was not a procedural
review, but a review on merits. Such a review was not permissible in the
absence of a provision in the Act conferring the power of review on the
Tribunal either expressly or by necessary implication.
27.
Sri Trivedi, learned Counsel for the claimant-respondent No. 3 has, however,
stated the error committed by the Tribunal was of passing the award without
framing of issues which were mandatorily required to be done under Rule 28 of
the Rules. In support thereof he has relied on the decision of Himachal Pradesh
High Court in the case of Leela
Devi v. Sh. Ram Lal Rahu 1989 Lab.I.C. 758 and that of the Patna High
Court in the case of Ramautar
Chowdhary v. Sone Valley Portland Cement Co. Ltd. A.I.R. 1958 Patna 540.
28.
On the other hand the Orissa High Court in the case of The New India Assurance Company
Ltd., v. Braja Kishore Sutar 1992 Lab, I.C.36, also while dealing with
a case under the Workmen's Compensation
Act, has held that the requirement of framing issues mentioned in Rule 28
of the Rules is not mandatory and an order of Commissioner would not be
rendered vitiated because of non-framing of issues, unless the same has caused
prejudice to the affected party.
29.
What is noteworthy is that in the aforesaid cases of Leela Devi and Ramautar
(supra) the matters before the High Courts were in appellate jurisdiction
meaning thereby that regular appeals under Section 30 of the Workman's Compensation Act had been
filed and after it was found that since the said cases were contested cases and
were decided without framing the issues, after setting aside the Award, the
matters were remanded back to the respective Workman's Compensation
Commissioner for fresh decision. Even if we ignore the opinion of the Orissa
High Court rendered in the ease of The New India Assurance Company Ltd.supra)
that the requirement of framing of issues is not mandatory and that an order of
the Commissioner would not be rendered vitiated because of non framing of
issues, then too the outcome of the said decision would not in any way mean
that in case if the issues were not framed before passing of the award, the
award could be reviewed.
30.
Reviewing the award on such ground of non framing of issues would, in my view,
amount to deciding the case afresh on merits and could not be classified as a
procedural review (which is either inherent or implied in a court of Tribunal)
to set aside a palpably erroneous order passed under a misapprehension. The
same would only be a review on merits, which would be permissible only if
Statute so provides. Review, in such cases, cannot be made an alternative to
statutory appeal. In the present case, the order dated 7.12.2005 (on the review
application) has been passed as if sitting in appeal against the award dated
31.3.2005, which is not permissible in law.
31.
In my considered view, in the facts of the present case, the award of the
Tribunal in question was thus not void or nullity, in the sense of the same
having been passed ex parte or without notice to a party, and accordingly the
same could not have been revised, reviewed or recalled on an application filed
by Respondent No. 4. The
Act, under section 6,
only permits limited review of any order relating to half-monthly payments and
the present case does not fall in that category. The present case would also
not be covered under Rule 32(2) of the Rules. Rule 32 of the Rules clearly
provides that after the pronouncement of the judgment, no addition or
alteration shall be made to the judgment except in the case where
"correction of a clerical or arithmetical mistake arises from any
accidental slip or omission". This case would also not fall under the said
rule, as there was no such correction required to be made. If the award has not
been passed in accordance with any procedure, then the same can be challenged
on merits only in accordance with law, which is by filing appeal under Section 30 of the Art. In
case if such a procedure of filing a review application on merits is permitted,
without there being any specific provision under the Statute, there would be no
finality attached to the award even after the proceedings before the
Commissioner have become final. Thus, in my opinion, in the present case the
only alternative for the aggrieved party was to file an appeal against the
Award initially passed, and not by way of filing an application before the
Commissioner for reviewing or setting aside the said award dated 31.3.2005.
32.
A single Judge of this Court in the case of United India Insurance Co. Ltd. v.
Workmen's Compensation Commissioner/Regional Assistant Labour Commissioner
1996 (73) F.L.R. 1541 has held as follows:
16.
Now on the question whether the Workmen's Compensation authority had
jurisdiction to review, it appears that the Workman's Compensation Commissioner
exercises quasi-judicial jurisdiction having all the trapping of the court
procedure whereof has not been elaborately laid down either under the Act or
under the rules. The absence of specific provision does not debar such
authority from dispensation of justice. The authority who is passing the order
which is enforceable otherwise can not be said to lack jurisdiction to recall
or review its order if occasion so demand in order to do justice. While
dispensing justice or exercising quasi-judicial jurisdiction unless it has
specifically prohibited or barred the power to review its own order inheres in
the Tribunal or the authority concerned.
33.
The said case was decided after relying on a judgment of this Court rendered in
the case of Oriental
Insurance Company v. Fida Ali 1995 (25) A.L.R. 532 which was a case
under the Motor Vehicles
Act and not under the Workman's Compensation Act.
34.
For the reasons given here-in-above, in my view, the law laid down in paragraph
16 of the judgment in the case of United India Insurance Co. Ltd. {supra) that
the Workmen's Compensation Commissioner would have the power to review its own
order even though the same may not be provided under the Act does not lay down
the correct law. As such, the following questions need to be referred to a
larger Bench for its opinion:
(1)
Whether the law laid down in paragraph 16 of the judgment in the case of United India Insurance Co. Ltd. v.
Workmen's Compensation Commissioner 1996(73) F.L.R, 1541 lays down the
correct law ?
(2)
Whether the Workmen's Compensation Commissioner has power to review his own
award under the Workmen's Compensation
Act, 1923 ?
35.
Let the papers of this case be placed before Hon'ble The Chief Justice for
appropriate orders.
36.
Before parting with this case, since the claimant is suffering because of the
dispute as to which of the parties (i.e. the petitioner or the respondent No.
4) is to pay the compensation, in the interest of justice it would be necessary
to meanwhile protect her interest, even though it may be to a limited extent.
While setting aside the Award dated 31.3.2005, the Workmen's Compensation
Commissioner had, vide his order dated 7.12.2005, imposed a condition that the
Award be set aside only on the condition of the respondent No. 4 depositing a
sum of Rs. 80,000/- and paying costs of Rs. 10,000/- to the claimant. Cost must
have been paid, and if not then the same should be paid to the claimant
immediately. However, the amount of Rs. 80,000/- deposited by the respondent
No. 4 in terms of the order dated 7.12.2005, and remaining with the Workmen's
Compensation Commissioner, shall be paid to the claimant-respondent No. 3,
without requiring her to furnish any security, within two weeks of her making
an application for withdrawal before the Commissioner. The said amount shall be
adjusted in the final award. In case if it is ultimately determined that the
respondent No. 4 is liable to pay the compensation, he shall then be required
to pay only the balance amount of the award to the claimant. However if the
liability is ultimately fastened on the petitioners, they shall then be,
required to pay/refund the sum of Rs. 80,000/- to the respondent No. 4 and pay
the balance of the amount awarded to the claimant. This order is being passed
in order to balance the equities between the parties and in the interest of
claimant, who is in any case entitled to payment of compensation, but is not
being paid the same for no fault of hers.[39]”
That
it is important to mention here that the Hon’ble Justice Vineet Saran, J. has
given finding that the Court of learned Commissioner of Employee’s Compensation
Act, 1923 has no power to recall his order passed in ex parte manner, and also
framed two question and matter refer to the larger bench, for answer whether
the Commissioner of Employee’s Compensation Act, 1923 has power to review his
own order and also farmed the question tha the judgment of United India
Insurance Co. Vs. Workmen’s Compensation Commissioner is the correct law, the
aforesaid answer is still undecided and petition disposed of in terms of
settlement between the parties vide order dt. 13.10.2022 order is reproduced
herewith,
“
Vide order dated July 6, 2022, noticing the fact stated in the affidavit filed
by learned counsel for parties, we had pleaded settlement of dispute amongst
them, the matter was referred to the Civil Judge (Senior Division), Ghaziabad
for verification of the settlement. In the report received from the Civil Judge
(Senior Division), Ghaziabad it has been mentioned that the settlement between
the appellant and respondent no. 3 was found to be genuine and they prayed
before the Court for endorsing the same. 2. Keeping in view the aforesaid fact,
the present petition is disposed of, as the dispute has been compromised
between parties.[40]”
5.13 Judgement of Hon’ble High of Allahabadin Case of Mohd.
Ikram & Another vs Dy. Labour Commissioner U.P. Civil Misc. Writ Petition No. 15505 of 2011 decided
on 7 May, 2013
The Allahabad High Court is the opinion
that the Tribunal has no jurisdiction to recall its own order that the
judgement is required consideration of the earlier judgement and without
observing and taking into consideration of judgement learned judge has passed
the order holding that the Employee’s Compensation Commissioner under the
Employee’s Compensation Act has no power to recall his own order, the order of
the Hon’ble Court is reproduces here as under,
“Hon’ble Justice Tarun Agarwala,J.Two sons of the petitioner died during the course of employment on 20th October, 2008. It is alleged that the death occurred on account of leakage of a gas in the factory. A first information report was also lodged and the incident was also reported in the newspapers. The petitioner filed a claim application before the Commissioner Workmen's Compensation for a sum of Rs.8,85,360/-. The Commissioner after considering the matter gave an award dated 7th December, 2010 allowing the claim and awarding a sum of Rs.4,42,740/-. The employer, being aggrieved, by the said award filed a recall application, which was allowed by an order dated 14th February, 2011 and, by the same order, the claim of the petitioner was also rejected. The claimants, being aggrieved, by the said order has filed the present writ petition.
Heard Sri A.K.S. Bais, the learned counsel for the petitioners and Sri Vivek Singh, the learned counsel for the respondent.
The learned counsel for the petitioner submitted that there is no provision under the Workmen's Compensation Act for review of an order passed by the Commissioner Workmen's Compensation and, consequently, the impugned order is patently without jurisdiction and is liable to be quashed.
On the other hand, it was contended
that the authority has the inherent power to recall its order and in any case,
where fraud is played, the authority can always review its order.
In order to appreciate the rival
contention of the parties, it is necessary to have a look into certain
provisions of the Workmen's Compensation Act. Section 23 of the Act read with Rule 41 of
the Workmen's Compensation Rules makes certain provisions of Code of Civil
Procedure applicable to proceedings before the Commissioner. For
facility, Section 23 of the Act and Rule 41 of the
Rules are extracted hereunder:-
"23. Powers and procedure of
Commissioners.- The Commissioner shall have all the powers of a Civil Court
under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking
evidence on oath (which such Commissioner is hereby empowered to impose) and of
enforcing the attendance of witnesses and compelling the production of
documents and material objects, [ and the Commissioner shall be deemed to be a
Civil Court for all the purposes of [section 195 and of Chapter XXVI of the Code
of Criminal Procedure, 1973 (2 of 1974)]].
41. Certain provisions of Code of
Civil Procedure, 1908, to apply.- Save as otherwise expressly provided in the
Act or these Rules the following provisions of the First Schedule to the Code
of Civil Procedure, 1908, namely, those contained in Order V, Rules 9 to 13 and
15 to 30; Order IX, Order XIII, Rules 3 to 10; Order XVI, Rules 2 to 21, Order
XVII; and Order XXIII, Rules 1 and 2, shall apply to proceedings before
Commissioners, in so far as they may be applicable.
Provided that--
(a) for the purpose of facilitating
the application of the said provisions the Commissioner may construe them with
such alterations not affecting the substance as may be necessary or proper to
adapt them to the matter before him;
(b) the Commissioner may, for
sufficient reasons, proceed otherwise than in accordance with the said
provisions if he is satisfied that the interests of the parties will not
thereby be prejudiced."
A perusal of the aforesaid provision
indicates that only certain provisions of the Code of Civil Procedure are
applicable to proceedings before the Commissioner Workmen's Compensation. Section 114 or Order XLVII of
the Code of Civil Procedure are not applicable, which relates to review. These
provisions have not been included and, consequently, the Court is of the
opinion that the power of review has been specifically excluded under Section 23 of the Act read with
Rule 41 of the Rules.
Rule 32(2) of the Rules provides that
the Commissioner after pronouncing the decision has no power to make any
addition or alteration in the judgment other than correction of a clerical or
arithmetical mistake arising from any accidental slip or omission. For
facility, the said provisions is extracted hereunder:-
"32(2). The Commissioner, at the
time of signing and dating his judgment, shall pronounce, his decision, and
thereafter no addition or alteration shall be made to the judgment other than
the correction of a clerical or arithmetical mistake arising from any
accidental slip or omission."
From the aforesaid provisions, the
Court is of the opinion that the Commissioner has the power to correct clerical
or arithmetical mistake arising from accidental slip or omission in his
judgment but has no power to review his judgment. Since there is no statutory
provision conferring any power of review on the Commissioner under the
Workmen's Compensation Act either specifically or by
necessary implication, the Commissioner has no power to review his own
decision.
In Raman Agnihotri Vs. Commissioner
Workmen's Compensation, Kanpur and others, 2009 (120) FLR 967 the Court held
that the Commissioner Workmen's Compensation has no power to review his
judgment.
The learned counsel for the
respondent has relied upon a decision in United India Insurance Com. Ltd. Vs.
Rajendra Singh, AIR 2000 SC 1165 wherein the Supreme Court held that the Motor
Accident Claims Tribunal had the power to review its own order where fraud was
played upon it.
There is no quarrel with the
aforesaid proposition. No Court or Tribunal can be regarded as powerless to
recall its own order, if it is convinced that the order was obtained by fraud
or misrepresentation. In the instant case, there is no plea of fraud being
played. The Court finds that the Commissioner while passing the first order
allowing the claim had considered all the evidence and the submission of the
claimants as well as the owner and thereafter gave an award. The recall
application was filed by the owners on the ground that certain facts and
evidence had not been considered. A plea of misappreciation of evidence was
raised. No plea of fraud was alleged by the owners. The Court is consequently,
of the view that in the absence of a plea of fraud being raised, it was not
possible for the Commissioner to reappreciate the entire arguments or
reconsider the matter de novo or review its own judgment.
In the light of the aforesaid, the
order of the Commissioner dated 14th November, 2011 allowing the recall
application and rejecting the claim of the petitioner is patently illegal and
without jurisdiction, which cannot be sustained and is quashed. The writ
petition is allowed.[41]”
5.14 Judgement of Allahabad High Court Lucknow
Bench Writ – C No. 7606 (Balaji Stone Crusher thru Partner Smt. Kiran Saini Vs
State of UP & Others judgement and order dt. 02.08.2022
The Hon’ble Allahabad High Court Lucknow Bench
has given finding that the in paragraph 11 that the passing authority has no
right to review his own order whether passed in ex parte and passed in ex parte
on merit, is only appealable to the higher court not in the same court, because
the labour court and employee’s compensation court is non judicial court and
power of review and recall is only vested in the court of judicial court, the
order passed by the Hon’ble Court is reproduce here as under,
“ Hon’ble Justice Manish Kumar,J.
1. Heard Ms.
Pushpila Bisht, Sri Dilip Pandey, Sri Akhilesh Kumar, Sri Anand Mani Tripathi,
Sri Gagan Katyaayan, Ms. Garima Dixit, Sri Himanshu, learned counsel for the
petitioners and learned Standing counsel for the State.
2. In all the
above-noted writ petitions common questions of law are involved, thus, they
have been heard in a bunch and are being disposed of by means of this common
judgment to be applicable to all the writ petitions.
3. Issues
involved in the aforesaid petitions are same except in Writ Petitions bearing
Nos. Writ C Nos. 10236 of 2019 and 14989 of 2019 wherein the petitioners are
lessee whereas in the rest of the petitions, petitioners are stone crushers.
4. The present
writ petitions have been preferred for quashing of the orders passed by the
respondent no. 1 whereby the orders allowing the revision on different dates
had been recalled fixing the date for hearing and thereafter the order passed
on different dates whereby the revisions have been dismissed by reviewing its
earlier orders of allowing the revisions.
5. Learned
counsel for the petitioners have submitted that the show cause notices were
issued against the petitioners by the District Magistrate, Saharanpur on
different dates with charge of illegal mining carried out during the period of
2011-7. The petitioners had duly replied to the show cause notices and
thereafter, the orders were passed by the District Magistrate, Saharanpur on
different dates against all the petitioners levying charges for illegal mining
upon the petitioners.
6. Feeling
aggrieved by the order of the District Magistrate, Saharanpur, petitioners had
preferred appeals under Section
77 of the Rules, 1963 before the Commissioner, Saharanpur Division,
Saharanpur i.e. respondent no. 2.
7. The appeals
preferred by the petitioners were also dismissed by orders passed on different
dates and feeling aggrieved by the same, the revisions were filed before the
State Government/ Revisional Authority-respondent no. 1.
8. The
Revisions preferred by the petitioners were allowed by the revisional authority
by detailed orders on different dates after calling the objections from the
District Magistrate, Saharanpur and the Mining Officer.
9. It is
further submitted that the revisional authority in revision of Pradhan Stone
Crushers, which is not the petitioner in this bunch of petitions, had sought
some information from the District Magistrate, Saharanpur vide its order dated
05.03.2019 and in reply thereto, District Magistrate, Saharanpur had submitted
its report stating therein that the persons who had preferred the revisions
indulged in the illegal mining and the orders passed in Revision in their
favour are liable to be recalled.
10. Thereafter,
the revisional authority without issuing any notice or providing any
opportunity of hearing to the petitioners had recalled its orders vide order
dated 07.03.2019 passed in revision later on after notice and hearing the parties,
dismissed the revisions by passing the orders on different dates.
11. The order
of recall passed by the revisional authority i.e. respondent no. 1 is without
jurisdiction as there is no power vested with the respondent no. 1 to recall
its earlier order under the Rules, 1963. The only exception to recall the order
in absence of any provision empowering the authority is if the order has been
passed ex-parte. In support of their submissions, they placed reliance on the
judgment passed in the case of Suresh Chandra Sharma Vs. Presiding Officer,
Labour Court, IV Kanpur and others reported in 2003 SCC Online All 399. The
relevant para i.e. para no. 14 is quoted hereunder for convenience:-
14. However,
the issue involved in this case has been dealt with by the Hon'ble Supreme
Court in Grindlay's Bank case, 1980 Supp SCC 420 : AIR 1981 SC 606, wherein the
distinction between a review and recalling an ex parte order has been explained
and that was a case wherein the Hon'ble Supreme Court was dealing with a matter
of recalling the ex parte Award by the labour court itself. The Hon'ble Apex
Court held that even in absence of any statutory provision if the labour court
is satisfied that ex parte order has to be recalled, there is no bar in law for
recalling the ex parte. Similar view has been reiterated in Satnam Singh Verma v. Union of
India, 1984 Supp SCC 712 : AIR 1985 SC 294.
12. It is
further submitted that there is no power vested with the respondent no. 1 to
review its earlier order under the Rules, 1963 and hence the order has been
passed without jurisdiction. In support of their submissions, they placed
reliance on the following judgments of Hon'ble Supreme Court.
1. Naresh Kumar
and others Vs. Government (NCT of Delhi) reported in (2019) 9 SCC 416. The
relevant paras on which reliance has been placed are 13 and 14, which are
quoted hereunder:-
"13. It is
settled law that the power of review can be exercised only when the statute
provides for the same. In the absence of any such provision in the statute
concerned, such power of review cannot be exercised by the authority concerned.
This Court in Kalabharati
Advertising v. Hemant VimalnathNarichania [Kalabharati Advertising v.
Hemant VimalnathNarichania, (2010) 9 SCC 437 : (2010) 3 SCC (Civ) 808] , has
held as under: (SCC pp. 445-46, paras 12-14) "... 12. It is settled legal
proposition that unless the statute/rules so permit, the review application is
not maintainable in case of judicial/quasi-judicial orders. In the absence of
any provision in the Act granting an express power of review, it is manifest
that a review could not be made and the order in review, if passed, is ultra
vires, illegal and without jurisdiction. (Vide Patel ChunibhaiDajibha v.
NarayanraoKhanderaoJambekar [Patel ChunibhaiDajibha v.
NarayanraoKhanderaoJambekar, AIR 1965 SC 1457] and Harbhajan Singh v. Karam Singh
[Harbhajan Singh v. Karam Singh, AIR 1966 SC 641] .)
13. In Patel
Narshi Thakershi v. Pradyuman Singhji Arjunsinghji [Patel NarshiThakershi v.
Pradyuman Singhji Arjunsinghji, (1971) 3 SCC 844] , Chandra Bhan Singh v. Latafat
Ullah Khan [Chandra Bhan Singh v. Latafat Ullah Khan, (1979) 1 SCC
321] , Kuntesh Gupta v.
Hindu Kanya Mahavidyalaya [Kuntesh Gupta v. Hindu Kanya Mahavidyalaya,
(1987) 4 SCC 525 : 1987 SCC (L&S) 491] , State of Orissa v. Commr. of Land
Records & Settlement [State of Orissa v. Commr. of Land Records
& Settlement, (1998) 7 SCC 162] and Sunita Jain v. Pawan Kumar Jain
[Sunita Jain v. Pawan Kumar Jain, (2008) 2 SCC 705 : (2008) 1 SCC
(Cri) 537] this Court held that the power to [Ed.: The matter between two
asterisks has been emphasised in original as well.] review is not an inherent
power. It must be conferred by law either expressly/specifically or by
necessary implication [Ed.: The matter between two asterisks has been
emphasised in original as well.] and in the absence of any provision in the
Act/Rules, review of an earlier order is impermissible as review is a creation
of statute. Jurisdiction of review can be derived only from the statute and
thus, any order of review in the absence of any statutory provision for the
same is a nullity, being without jurisdiction.
14. Therefore,
in view of the above, the law on the point can be summarised to the effect that
in the absence of any statutory provision providing for review, entertaining an
application for review or under the garb of
clarification/modification/correction is not permissible."
(emphasis
supplied)
14. In view of
the aforesaid, we hold that the award dated 1-10-2003 could not have been
reviewed by the Collector, and thus we allow these appeals and quash the order
dated 4-7-2004 passed by the Collector in Review Award No. 16/03-04 as well as
the order dated 4-3-2010 passed by the Delhi High Court in Naresh Kumar v. State (NCT of
Delhi) [Naresh Kumar v. State (NCT of Delhi), 2010 SCC OnLine Del 977
: (2010) 174 DLT 355] . The appellants shall thus be entitled to the
compensation as awarded in terms of the award of the Land Acquisition Collector
dated 1-10-2003, and the supplementary award dated 27-10-2004. No orders as to
costs."
2. Dr. (Smt)
Kuntesh Gupta Vs. Management of Hindu Kanya Mahavidyalaya Sitapur (U.P.) and
others reported in (1987) 4 SCC 525. The relevant para on which reliance has
been placed is 11, which is quoted hereunder for ready reference:-
"11. It is
now well established that a quasi-judicial authority cannot review its own
order, unless the power of review is expressly conferred on it by the statute
under which it derives its jurisdiction. The Vice-Chancellor in considering the
question of approval of an order of dismissal of the Principal, acts as a
quasi-judicial authority. It is not disputed that the provisions of the U.P.
State Universities Act, 1973 or of the Statutes of the University do not confer
any power of review on the Vice-Chancellor. In the circumstances, it must be
held that the Vice-Chancellor acted wholly without jurisdiction in reviewing
her order dated 24-1-1987 by her order dated 7-3-1987. The said order of the
Vice-Chancellor dated 7-3-1987 was a nullity."
3. Kalabharati
Advertising Vs. Hemant VimalnathNarichania and others reported in (2010) 9 SCC
437. The relevant paras on which reliance has been placed are 12 to 14, which
are quoted hereunder:-
12. It is
settled legal proposition that unless the statute/rules so permit, the review
application is not maintainable in case of judicial/quasi-judicial orders. In
the absence of any provision in the Act granting an express power of review, it
is manifest that a review could not be made and the order in review, if passed,
is ultra vires, illegal and without jurisdiction. (Vide Patel ChunibhaiDajibha v.
Narayanrao Khanderao Jambekar [AIR 1965 SC 1457] and Harbhajan Singh v. Karam Singh [AIR
1966 SC 641] .)
13. In Patel NarshiThakershi v.
Pradyuman Singhji Arjunsinghji [(1971) 3 SCC 844 : AIR 1970 SC 1273]
, Major Chandra Bhan Singh
v. Latafat Ullah Khan [(1979) 1 SCC 321] , Kuntesh Gupta (Dr.) v. Hindu Kanya
Mahavidyalaya [(1987) 4 SCC 525 : 1987 SCC (L&S) 491 : AIR 1987 SC
2186] , State of Orissa v.
Commr. of Land Records and Settlement [(1998) 7 SCC 162] and Sunita Jain v. Pawan Kumar Jain [(2008)
2 SCC 705 : (2008) 1 SCC (Cri) 537] this Court held that the power to review is
not an inherent power. It must be conferred by law either
expressly/specifically or by necessary implication and in the absence of any
provision in the Act/Rules, review of an earlier order is impermissible as
review is a creation of statute. Jurisdiction of review can be derived only
from the statute and thus, any order of review in the absence of any statutory
provision for the same is a nullity, being without jurisdiction.
14. Therefore,
in view of the above, the law on the point can be summarised to the effect that
in the absence of any statutory provision providing for review, entertaining an
application for review or under the garb of
clarification/modification/correction is not permissible."
4. Sunita Jain
Vs. Pawan Kumar Jain and others reported in (2008) 2 SCC 485. The relevant
paras on which reliance has been placed are 33 and 34, which are quoted
hereunder:-
33. It is also
well settled that power of review is not an inherent power and must be
conferred on a court by a specific or express provision to that effect. (Vide Patel NarshiThakershi v.
PradyumansinghjiArjunsinghji [(1971) 3 SCC 844] .) No power of review
has been conferred by the Code on a criminal court and it cannot review an
order passed or judgment pronounced.
34. In Hari Singh Mann v. Harbhajan
Singh Bajwa [(2001) 1 SCC 169 : 2001 SCC (Cri) 113] this Court held
that a High Court has no jurisdiction to alter or review its own judgment or
order except to the extent of correcting any clerical or arithmetical error. It
deprecated the practice of filing criminal miscellaneous petitions after
disposal of main matters and issuance of fresh directions in such petitions.
The Court said: (SCC p. 175, para 10) "10. Section 362 of the Code
mandates that no court, when it has signed its judgment or final order
disposing of a case shall alter or review the same except to correct a clerical
or an arithmetical error. The section is based on an acknowledged principle of
law that once a matter is finally disposed of by a court, the said court in the
absence of a specific statutory provision becomes functus officio and
disentitled to entertain a fresh prayer for the same relief unless the former
order of final disposal is set aside by a court of competent jurisdiction in a
manner prescribed by law. The court becomes functus officio the moment the
official order disposing of a case is signed. Such an order cannot be altered
except to the extent of correcting a clerical or an arithmetical error."
5. H.C. Suman
and another Vs. Rehabilitation Ministry Employees Cooperative House Building
Society Ltd New Delhi and others reported in 1991 4 SCC 485. The relevant paras
on which reliance has been placed are 33 and 34, which are quoted hereunder:-
33. The
question of validity of the subsequent Notification dated August 29, 1990
whereby the earlier Notification dated October 27, 1987 was rescinded may now
be considered. As noticed earlier, the Lt. Governor had passed the
quasi-judicial order on August 19, 1985 in an appeal filed by the Society
against the order of the Registrar declining amendment of the bye-law
concerned. Relevant findings of the Lt. Governor along with the reasons
therefor have already been extracted above. We have already pointed out that
what weighed with the Lt. Governor in passing that order was that persons for
whose benefit the bye-law was sought to be amended had become members of the
Society many years ago, that their names figured even in the list of members
which was supplied by the Society to the Department of Rehabilitation and which
formed the basis for allotment of land to the Society and that it would be
neither fair nor just to leave them in the lurch now by depriving them of their
membership when they cannot become members of any other society. It was pointed
out by the Lt. Governor that the proposed amendment in the bye-law was
"designed to regularise such of the members". From the tenor of this
order there can be no manner of doubt that the order was passed with a view to
ensure that the persons who had become members of the Society many years ago
should get the benefit of the amended bye-law by having their membership
regularised. Such members could obviously get the benefit of the bye-law only
if it was made retrospectively effective. The order of the Lt. Governor did not
contemplate fresh enrolment of those persons as members after the passing of
that order and the bye-law being amended in consequence thereof but it
contemplated regularisation of their membership. This clearly indicated that
those persons were sought to be treated as members as from the dates on which
they had factually become members of the Society. We have also pointed out
above that in our opinion in having the Notification dated October 27, 1987
issued, the Lt. Governor only took steps to give effect to the quasi-judicial
order passed by him on August 19, 1985 so that the purpose of that order could
be achieved. This being the true nature of the Notification dated October 27,
1987, the Lt. Governor cannot be said to have in any manner reviewed the quasi-judicial
order dated August 19, 1985. On the other hand, the subsequent Notification
dated August 29, 1990 even though purported to rescind the earlier Notification
dated October 27, 1987 only it had keeping in view the nature and purpose of
the Notification dated October 27, 1987 really the effect of reviewing and
nullifying the quasi-judicial order passed by the Lt. Governor on August 19,
1985. In a matter such as this, it is the substance and the consequence of the
Notification dated August 29, 1990 which has to be kept in mind while
considering the true import of that notification. It is settled law that a
quasi-judicial order once passed and having become final cannot be reviewed by
the authority passing that order unless power of review has been specifically
conferred. The quasi-judicial order dated August 19, 1985, as seen above, had
been passed by the Lt. Governor under Section 76 of the Act.
No power to review such an order has been conferred by the Act. In Godde Venkateswara Rao v.
Government of A.P. [(1966) 2 SCR 172 : AIR 1966 SC 828] an order had been
passed by the government under Section 62 of the Andhra Pradesh Panchayat
Samithies and Zila Parishads Act, 1959, it was subsequently reviewed. The
validity of this order of review was in question in that case. No power of
review had been conferred for review of an order passed under Section 62. What was,
however, argued was that the government was competent to review that order in
exercise of power conferred by Section 13 of the Madras
General Clauses Act, 1891. Repelling this argument, it was held:
"The
learned counsel for the State then contended that the order dated April 18,
1963, could itself be sustained under Section 62 of the Act.
Reliance is placed upon Section
13 of the Madras General Clauses Act, 1891, whereunder if any power is
conferred on the Government, that power may be exercised from time to time as
occasion requires. But that section cannot apply to an order made in exercise
of a quasi-judicial power. Section
62 of the Act confers a power on the Government to cancel or suspend
the resolution of a Panchayat Samithi, in the circumstances mentioned therein,
after giving an opportunity for explanation to the Panchayat Samithi. If the
Government in exercise of that power cancels or confirms a resolution of the
Panchayat Samithi, qua that order it becomes functus officio. Section 62, unlike Section 72, of the Act does not
confer a power on the Government to review its orders. Therefore, there are no
merits in this contention."
34. We are
aware that the Notification dated August 29, 1990 purports to rescind the
earlier Notification dated October 27, 1987 only and does not speak in clear
terms that the quasi-judicial order dated August 19, 1985 was also being
rescinded. On the facts and circumstances of this case, as emphasised above, we
are of the opinion that this circumstance hardly makes any difference inasmuch
as even though the quasi-judicial order dated August 19, 1985 has not been
expressly nullified, it has certainly for all practical purposes been nullified
by necessary implication. This, in our opinion, could not be done and the
Notification dated August 29, 1990 is ultra vires on this ground alone."
13. It is
further submitted that there is only one exception where in absence of any
statutory provisions, the authorities can review their earlier order i.e. if
the order has been obtained by fraud. In support thereof, they placed reliance
on the judgment passed by Hon'ble Supreme Court in the case of Indian Bank Vs.
Satyam Fibres (India) Pvt. Ltd. reported in (1996) 5 SCC 550. The relevant
paras i.e. 22, 22 and 23 are being quoted hereunder for ready reference:-
"20. By
filing letter No. 2775 of 26-8-1991 along with the review petition and
contending that the other letter, namely, letter No. 2776 of the even date, was
never written or issued by the respondent, the appellant, in fact, raised the
plea before the Commission that its judgment dated 16-11-1993, which was based
on letter No. 2776, was obtained by the respondent by practising fraud not only
on the appellant but on the Commission too as letter No. 2776 dated 26-8-1991
was forged by the respondent for the purpose of this case. This plea could not
have been legally ignored by the Commission which needs to be reminded that the
authorities, be they constitutional, statutory or administrative, (and
particularly those who have to decide a lis) possess the power to recall their
judgments or orders if they are obtained by fraud as fraud and justice never
dwell together (Fraus et jus nunquam cohabitant). It has been repeatedly said
that fraud and deceit defend or excuse no man (Fraus et
dolusneminipatrocinaridebent).
21. In Smith v.
East Elloe Rural Distt. Council [1956 AC 736 : (1956) 1 All ER 855 : (1956) 2
WLR 888] the House of Lords held that the effect of fraud would normally be to
vitiate any act or order. In another case, Lazarus Estates Ltd. v. Beasley
[(1956) 1 QB 702 : (1956) 1 All ER 341 : (1956) 2 WLR 502] (QB at p. 712),
Denning, L.J. said:
"No
judgment of a court, no order of a Minister, can be allowed to stand if it has
been obtained by fraud. Fraud unravels everything."
22. The
judiciary in India also possesses inherent power, specially under Section 151
CPC, to recall its judgment or order if it is obtained by fraud on court. In
the case of fraud on a party to the suit or proceedings, the court may direct
the affected party to file a separate suit for setting aside the decree
obtained by fraud. Inherent powers are powers which are resident in all courts,
especially of superior jurisdiction. These powers spring not from legislation
but from the nature and the constitution of the tribunals or courts themselves
so as to enable them to maintain their dignity, secure obedience to its process
and rules, protect its officers from indignity and wrong and to punish unseemly
behaviour. This power is necessary for the orderly administration of the
court's business.
23. Since fraud
affects the solemnity, regularity and orderliness of the proceedings of the
court and also amounts to an abuse of the process of court, the courts have
been held to have inherent power to set aside an order obtained by fraud
practised upon that court. Similarly, where the court is misled by a party or the
court itself commits a mistake which prejudices a party, the court has the
inherent power to recall its order. (See: Benoy Krishna Mukerjee v. Mohanlal
Goenka [AIR 1950 Cal 287] ; Gajanand Sha v. Dayanand Thakur [AIR 1943
Pat 127 : ILR 21 Pat 838] ; Krishnakumar v. Jawand Singh [AIR 1947 Nag 236 :
ILR 1947 Nag 190] ; Devendra Nath Sarkar v. Ram Rachpal Singh [ILR (1926) 1
Luck 341 : AIR 1926 Oudh 315] ; Saiyed Mohd. Raza v. Ram Saroop [ILR (1929) 4
Luck 562 : AIR 1929 Oudh 385 (FB)] ; Bankey Behari Lal v. Abdul Rahman [ILR
(1932) 7 Luck 350 : AIR 1932 Oudh 63] ; Lekshmi Amma Chacki Amma v.
MammenMammen [1955 Ker LT 459] .) The court has also the inherent power to set
aside a sale brought about by fraud practised upon the court (Ishwar Mahton v. Sitaram Kumar [AIR
1954 Pat 450] ) or to set aside the order recording compromise obtained by
fraud. (Bindeshwari Pd.
Chaudhary v. Debendra Pd. Singh [AIR 1958 Pat 618 : 1958 BLJR 651]
; Tara Bai v. V.S. Krishnaswamy
Rao [AIR 1985 Kant 270 : ILR 1985 Kant 2930] .)
14. On the
other hand, learned Standing Counsel has submitted that under the Rules, 1963
though the authorities have no power either to recall or review its earlier
order even then if the order has been obtained by playing fraud or it has been
passed ex-parte, in that case, the order can be reviewed or recalled even in
absence of power of review and recall in the statute/Rules.
15. After
hearing learned counsel for the parties; going through the Act, 1963; record
and the judgments relied by counsel for the petitioners, the position which
emerges out is that under the Rules, 1963, the revisional authority is not
empowered either to recall or review its order passed earlier.
16. In case of
recall of earlier order, it has been held by Hon'ble Supreme Court in the case
of Suresh Chandra Sharma (supra), wherein it has been held that in absence of
statutory provision recall of order could be made if the order has been passed
ex-parte, which is not the case of the State. In the present case revisions
were allowed after hearing both the parties, it were not an ex-parte orders.
Hence, recall orders are nullity.
17. It is also
not the case of the respondents-State either in the counter affidavit or during
the course of argument that revisional order allowing the revisions were
obtained by playing fraud by the petitioners.
18. It is
settled law that power of review can be exercised only when the statute
provides or permits for the same and in absence of the same, the review
application is not maintainable. The review is a creation of statute. The
jurisdiction of review can be derived only from the statute and thus, order
passed on different dates dismissing the revisions by reviewing its earlier
order is nullity being without jurisdiction.
19. From the
discussions made hereinabove, the order dated 07.03.2019 passed by the
respondent no. 1 recalling the earlier orders passed on different dates whereby
the revisions were allowed and the orders passed on different dates whereby the
revisions have been dismissed are hereby quashed.
20. For the
foregoing reasons, the writ petitions are allowed.[42]”
That the Hon’ble Court given finding that
the non judicial court has no power to review and recall their own order, it is
only vested in the Judicial court, the judgement is contradictory to the
earlier judgement given by the Hon’ble Court, of the same bench, same is
required for consideration of its vide scope and required to widely discuss by
the larger bench of the Hon’ble Court or Parliament may framed the rule and
amend the law as is in existing, otherwise problem may not be sought out.
5.15
Judgment of Allahabad High Court in Case of Raman Agnihotri Versus Commissioner,
Workmen’s Compensation, Kanpur and others Civil Misc Writ Petition No. 61531 of
2008 decided on 28.11.2008
That the Hon’ble Justice SP Mehrotra J, of
Allahabad High Court has hold in the in Case of Raman Agnihotri Versus
Commissioner, Workmen’s Compensation, Kanpur and others Civil Misc. Writ
Petition No. 61531 of 2008 decided on 28.11.2008 held that the Commissioner of
Employee’s Compensation Act, 1923 has no power to review of his own order and
several other discussion has also been held, the order of the Hon’ble Court dt.
28.11.2008 is reproduce here as under,
“Hon’ble Justice S.P
Mehrotra, J.:— The present writ petition has been filed under Article
226 of the Constitution of India, inter
alia, praying for quashing the order dated 12.11.2008 (Annexure-5 to
the writ petition) passed by the respondent No. 1.
2. It appears that the respondent No. 2 filed an application
under section 10 of the Workmen's Compensation Act, 1923 claiming
compensation on account of injury sustained by him while working in the
establishment/factory of the petitioner. The said application was registered as
W.C Case No. 96 of 2003. After the exchange of affidavits between the parties
in the said case, and the leading of evidence by both the parties, the
respondent No. 1 by the judgment and order dated 6.12.2007 awarded compensation
amounting to Rs. 1,72,994.82 to the respondent No. 2. The said amount was to be
deposited within 30 days through a Bank Draft failing which the petitioner was
made liable to pay simple interest @ 6% per annum from the date of incident
till the date of payment.
3. Copy of the said judgment and order dated 6.12.2007 has been filed as
Annexure-I to the writ petition.
4. It appears that the petitioner thereafter filed restoration
application, which was dismissed by the respondent No. 1 by the order dated
31.3.2008 Copy of the said order dated 31.3.2008 has been filed as Annexure-2
to the writ petition.
5. The petitioner, thereafter, filed another application dated
19.5.2008, inter alia, praying for reconsideration of the order dated 6.12.2007
passed by the respondent No. 1. Copy of the said application has been filed as
Annexure-3 to the writ petition.
6. By the order dated 12.11.2008, the respondent No. 1 has dismissed the
said application dated 19.5.2008 filed on behalf of the petitioner. It is,
inter alia, stated in the said order dated 12.11.2008 that as the case has been
finally decided on merits by the order dated 6.12.2007 after hearing the
parties, there does not appear to be any legal ground for again passing order
on merits in view of the application dated 19.5.2008 filed on behalf of the
petitioner.
7. I have heard Shri S.N Dubey, learned Counsel for the petitioner, and
perused the record.
8. It is submitted by Shri S.N Dubey that it is open to the respondent
No. 1 to correct mistakes apparent on the face of record in its order, and
therefore, the said application dated 19.5.2008 has been wrongly rejected by
the respondent No. 1 by the impugned order dated 12.11.2008
9. Shri S.N Dubey has placed reliance on a decision of the Supreme Court
in Mathura Prasad v. Union of India.1
10. I have considered the submissions made by Shri S.N Dubey, learned
Counsel for the petitioner, and I find myself unable to accept the same.
11. A perusal of the application dated 19.5.2008 (Annexure-3 to the writ
petition) shows that by the said application the petitioner sought
reconsideration and review of the judgment and order dated 6.12.2007
12. The said application was not an application merely for correction of
mistakes apparent on the face of record but was an application for review of
the judgment and order dated 6.12.2007
13. Reference in this regard may be made to a decision of this Court
in Virendra Swaroop Srivastava v. Vaishya Brothers and Co. (P) Ltd.,2
(paragraph 48) wherein the distinction between the power to correct
clerical/arithmetical mistake and the power of review has been noted.
14. It is relevant to note that sub-rule (2) of Rule 32 of the
Workmen's Compensation Rules, 1924 framed under section 32 of the
Workmen's Compensation Act, 1923, inter alia, provides that after the
judgment is signed, dated and pronounced by the Commissioner, “no addition or
alteration shall be made to the judgment other than the correction of a
clerical or arithmetical mistake arising from any accidental slip or omission”.
15. Therefore, the Commissioner may correct clerical or arithmetical
mistake arising from any accidental slip or omission in his judgment.
16. However, there is no provision under the Workmen's Compensation
Act, 1923 or the Workmen's Compensation Rules, 1924 for review of the
judgment by the Commissioner.
17. Section 23 of the Workmen's Compensation Act, 1923 and
Rule 41 of the Workmen's Compensation Rules, 1924 make certain provisions of
the Code of Civil Procedure, 1908 applicable to proceedings before
Commissioners. However, these provisions do not include section 114 or
Order XLVII of the Code of Civil Procedure, 1908 which deal with “Review”.
18. Hence, while the Commissioner has power to correct clerical or
arithmetical mistake arising from accidental slip or omission in his judgment,
he has no power to review his judgment.
19. Shri S.N Dubey, learned Counsel for the petitioner has fairly
conceded that there is no statutory provision for review of the judgment and
order passed by the respondent No. 1 awarding compensation to the respondent
No. 2.
20. It is well settled that the power to review is not an inherent
power. It must be conferred by law either specifically or by necessary
implication. Patel
Narshi Thakershi v. Pradyumansinghji Arjunsinghji 1971 3
SCC 844 (paragraph 4); Kailash
Singh Rajput…Applicant; v. Ram Prakash…Opposite Party. AIR
1979 All 110. (paragraph 9).
21. As there is no statutory provision conferring power of review on the
Commissioner under the Workmen's Compensation Act, 1923 specifically
or by necessary implication, the Commissioner has no power to review his
judgment.
22. In view of the above, it was not open to the respondent No. 1 to
review its own judgment and order dated 6.12.2007
23. In the circumstances, I am of the opinion that the application dated
19.5.2008 (Annexure-3 to the writ petition) has rightly been dismissed by the
respondent No. 1 by the order dated 12.11.2008
24. As regards the decision in Mathura Prasad case (supra), relied upon
by the learned Counsel for the petitioner, the said decision lays down as under
(paragraph 14 of the said FLR):
“14. When an employee, by reason of an alleged act of misconduct, is
sought to be deprived of his livelihood, the procedures laid down under
sub-rules are required to be strictly followed. It is now well settled that a
judicial review would lie even if there is an error of law apparent on the face
of the record. If statutory authority uses Its power in a manner not provided
for in the statute or passes an order without application of mind, judicial
review would be maintainable. Even an error of fact for sufficient reasons may
attract the principles of judicial review.”
25. The above decision deals with the scope of judicial review in the
matter of departmental enquiry. The said decision has no application to the
facts and circumstances of the present case.
26. In view of the above, I am of the view that the writ petition lacks
merits, and the same is liable to be dismissed. The writ petition is
accordingly dismissed.27. Petition Dismissed.[43]”
The Hon’ble Court has court has settle that the non –
judicial court has no power to review of their own judgment and order, in fact
the Hon’ble Court is not settled the correct law, which are required to
consideration again.
5.16 Judgment of the
Hon’ble Apex Court in Case of Mayan Vs. Mustafa and anther civil appeal No.
6614 of 2021 decided on 08.11.2021
That the Hon’ble Apex Court has held that the High Court
has errored in accepted the writ petition and quashed the Commissioner order
passed under the Employee’s Compensation Act, 1923, from the perusal of
judgement of the Hon’ble Court it is made clear that the Hon’ble Apex
indirectly has restrain for entertaining recall application, judgement is reproduced
herewith as under,
“Leave
granted.
The
challenge in the present appeal is to an order passed by the learned Single
Judge of the High Court of Judicature at Madras on 25.04.2013, whereby an
appeal filed by the first respondent was accepted on the ground that the
Compensation Commissioner at Trichirapalli has no jurisdiction to entertain the
complaint as it is the Compensation Commissioner at Cuddalore, who has the
jurisdiction to entertain the complaint.
In
an accident, which occurred during the course of employment on 05.03.2001, the
appellant lost his right leg which got stuck in a Harvesting Machine. The
appellant was working as a worker in the agricultural farm of the respondent
since 1997. Signature Not Verified The learned Compensation Commissioner
awarded a Digitally signed by Jayant Kumar Arora Date: 2021.11.09 16:55:32 IST
Reason: sum of Rs. 1,21,997/- with 12% interest. An appeal against the said
award was maintainable only on substantial question of law in terms of Section
30 of the Employees Compensation Act, 1923. But unfortunately, the High
Court interfered with the award on the ground of territorial jurisdiction on
the make-belief stand that the injured has not pleaded in his claim petition
that he was residing within the jurisdiction of the Compensation Commissioner,
Trichirapalli.
We
find that the High Court should not have in- terfered in an appeal filed
against the award of the Compensation Commissioner dealing with the injury of
amputation of leg suffered by the appellant during the course of employment.
The High Court should have heart to alleviate the loss suffered by the
appellant but the order passed by the High Court shows total non-application of
mind without any compassion to set aside an award of grant of compensation on
account of loss of a limb on wholly untenable ground of lack of territorial
jurisdiction. The appellant was a resi- dent of Sriram Nagar, Thiruvaiyaru Town
and Thanjavour District, falling within the jurisdiction of Trichirapalli, thus
even legally the jurisdiction was that of Compensation Commissioner under
Section 21(1)(b) of the Employees Compensation Act, 1923.
In
view thereof, we allow the present appeal and set aside the order passed by the
High Court and restore the order of the Compensation Commissioner. In addition
to the amount already awarded by the Compensation Commissioner, the first
respondent shall pay an amount of Rs.1,00,000/- (Rupees One Lakh) to the
appellant as Costs, for depriving him the compensation for the last more than
20 years. The due amount shall be paid within a period of two months from
today.
Pending
interlocutory application(s), if any, is/are disposed of.[44]”
5.17 Judgement of Hon’ble Supreme
Court in case of Sangham Tape Co. Versus Hans Raj Civil Appeal No. 2064 of 2002
decided on 27.09.2004
That
the Hon’ble Court has held that the an industrial adjudication is governed by
the provision of the industrial Disputes Act, 1947 and the Rules framed
thereunder. The Rules framed under the Act may provide for applicability of the
provisions of the Code of Civil Procedure. Once the Provisions of the Code of
Civil Procedure are made application to the industrial adjudication,
indisputably the provisions of Order 9 Rule 13 thereof would be attracted. But
unlike an ordinary civil court, the Industrial Tribunal and the Labour Courts
have limited jurisdiction in that behalf, While an Industrial Court will have
Jurisdiction to set aside an ex parte award, but having regard to the provision
contained in Section 17-A of the Act, an application therefore must be filed
before the expiry of 30 days from the publication thereof, till then Tribunal
retain jurisdiction over the dispute referred to it for adjudication, and only
up to that date it has the power to entertain an application in connection with
such dispute. This is because an award made by an Industrial Court becomes
enforceable under section 17-A of the Act on the expiry of 30 days from the
date of its publication. Once the award become enforceable, the Industrial
Tribunal and / or Labour Court become functus officio. order of the Hon’ble
Court is quoted below,
“ Hon’ble Justice S.B. SINHA, J :
This appeal is directed against a
judgment and order dated 30.4.2001 passed by a Division Bench of the Punjab
& Haryana High Court in Civil Writ Petition No.8231 of 2000 whereby and
whereunder the writ petition filed by the Respondent herein questioning the
order of the Labour Court dated 11.5.2000 setting aside an ex parte award in
favour of the Respondent herein, was allowed.
FACTS :
The Respondent was appointed as a
Machineman by the Appellant in 1980. The Appellant contended that the
Respondent had been absenting from duties off and on but he had been allowed to
join his duties in different periods. On or about 09.11.1991, a complaint
petition was filed by him through the trade union before the Labour Inspector
Circle III Jalandhar on an allegation that the management had not provided him
and other similarly situated persons duties since 8.11.1991. The said complaint
was registered as Ref. No. 87/91 wherein a settlement was arrived at, pursuant
whereto or in furtherance whereof the Respondent is said to have received a sum
of Rs. 2675.70 in full and final settlement of his dues. Despite the said
settlement, on or about 17.11.1992, he allegedly filed a reference petition
before the Labour Court, Jalandhar which was marked as Reference No.87 of 1991,
claiming his reinstatement with full back-wages, continuity of service and all
consequential service benefits.
An ex parte award was passed by the
said Labour Court on 5.2.1996.
The Appellant purportedly upon coming
to know about the pronouncement of the said ex parte award, moved an application
for setting aside the same. By reason of an order dated 11.5.2000, the ex parte
award was set aside. Contending that that the Labour Court had no jurisdiction
to set aside the ex parte award after a lapse of 30 days from the date of
publication of the award, the respondent herein filed a writ petition before
the Punjab and Haryana High Court which was marked as Civil Writ Petition
No.8231 of 2000. By reason of the impugned judgment, the High Court set aside
the order of the Labour Court. Being aggrieved by and dissatisfied therewith,
the appellant is in appeal before us.
Mr. Neeraj Kumar Jain, learned
counsel appearing on behalf of the Appellant, would submit that having regard
to the fact that the provisions of Order IX Rule 13 of the Code of Civil Procedure
are applicable to an industrial adjudication, the Labour Court must be held to
have ample jurisdiction to set aside an ex parte award, if sufficient cause
therefor is shown. The learned counsel would further submit that such exercise
of jurisdiction by the Labour Court cannot be limited to a period of 30 days
from the date of publication of the award. Reliance, in this connection, has
been placed on Anil Sood vs. Presiding Officer, Labour Court II [2001 (2)
SCALE 193].
An industrial adjudication is
governed by the provisions of the Industrial Disputes Act, 1947 (hereinafter referred to as
'the Act) and the rules framed thereunder. The rules framed under the Act may
provide for applicability of the provisions of the Code of Civil Procedure.
Once the provisions of the Code of Civil Procedure are made applicable to the
industrial adjudication, indisputably the provisions of Order IX Rule 13
thereof would be attracted. But unlike an ordinary Civil Court, the Industrial
Tribunals and the Labour Courts have limited jurisdiction in that behalf. An
award made by an industrial court becomes enforceable under Section 17A of the Act on the
expiry of 30 days from the date of its publication. Once the award becomes
enforceable, the Industrial Tribunal and/or Labour Court becomes functus
officio.
This Court in Grindlays Bank Ltd. vs. Central
Government Industrial Tribunal and Others [(1980) Supp. SCC 420] held
that the Tribunal does not become functus officio provided an application for
setting aside the award is filed within thirty days of publication of award
having regard to the provisions contained in Section 11 of the Act and Rules 22 and 24
of the Industrial Disputes (Central) Rules, 1957 stating : "The contention
that the Tribunal had become functus officio and, therefore, had no
jurisdiction to set aside the ex parte award and that the Central Government
alone could set it aside, does not commend to us. Sub-section (3) of Section 20 of the Act provides
that the proceedings before the Tribunal would be deemed to continue till the
date on which the award becomes enforceable under Section 17-A. Under Section 17-A of the Act, an award becomes
enforceable on the expiry of 30 days from the date of its publication
under Section 17. The proceedings with regard to a
reference under Section 10 of the Act are, therefore, not
deemed to be concluded until the expiry of 30 days from the publication of the
award. Till then the Tribunal retains jurisdiction over the dispute referred to
it for adjudication and up to that date it has the power to entertain an
application in connection with such dispute. That stage is not reached till the
award becomes enforceable under Section 17-A. In the instant case, the Tribunal
made the ex parte award on December 9, 1976. That award was published by the
Central Government in the Gazette of India dated December 25, 1976. The
application for setting aside the ex parte award was filed by respondent 3,
acting on behalf of respondents 5 to 17 on January 19, 1977 i. e, before the
expiry of 30 days of its publication and was, therefore, rightly entertained by
the Tribunal."
The said decision is, therefore, an
authority for the proposition that while an Industrial Court will have
jurisdiction to set aside an ex parte award but having regard to the provision
contained in Section 17A of the Act, an application
therefor must be filed before the expiry of 30 days from the publication
thereof. Till then Tribunal retains jurisdiction over the dispute referred to
it for adjudication and only upto that date, it has the power to entertain an
application in connection with such dispute.
It is not in dispute that in the
instant case, the High Court found as of fact that the application for setting
aside the award was filed before the Labor Court after one month of the
publication of the award.
In view of this Court's decision in
Grindlays Bank (supra), such jurisdiction could be exercised by the Labour
Court within a limited time frame, namely, within thirty days from the date of
publication of the award. Once an award becomes enforceable in terms of Section 17A of the Act, the
Labour Court or the Tribunal, as the case may be, does not retain any
jurisdiction in relation to setting aside of an award passed by it. In other
words, upon the expiry of 30 days from the date of publication of the award in
the gazette, the same having become enforceable, the Labour Court would become
functus officio.
Grindlays Bank (supra) has been
followed in Satnam Verma vs. Union of India [(1984) Supp. SCC
712] and J.K. Synthetics Ltd. vs. Collector of Central Excise [(1996) 6 SCC 92].
This Court in Anil Sood (supra) did
not lay down any law to the contrary. The contention raised on the part of Mr.
Jain to the effect that in fact in that case an application for setting aside
an award was made long after 30 days cannot be accepted for more than one
reason. Firstly, a fact situation obtaining in one case cannot be said to be a
precedent for another. [See Mehboob Dawood Shaikh vs. State of Maharashtra (2004) 2 SCC 362].
Secondly, from a perusal of the said decision, it does not appear that any date
of publication of the award was mentioned therein so as to establish that even
on fact, the application was made 30 days after the expiry of publication of
the award. Furthermore, the said decision appears to have been rendered on
concession.
For the foregoing reasons, there is
no merit in this appeal which is accordingly dismissed. No costs.[45] ”
5.18 order of Hon’ble High Court in
Case of Nirmla and another Versus State of UP and others Writ - C No.2793 of
2022, interim order dt. 25.05.2022
Tha the Hon’ble Court has been pleased and
passed the order dt. 25.05.2021, the ex parte award has been passed by the
Commissioner of Employee’s Compensation Act, 1923, the respondent has appeared
and file recall application, same has been entertained and order of ex parte
has been recalled vide order dt. 04.04.2022, claimant has filed aforesaid writ
petition the Hon’ble High Court of Lucknow Bench has been pleased and passed
the order dt. 25.05.2022 and stayed the ex parte recall order and passed the
following order dt. 25.05.2022 is reproduce here as under,
“ Along with the supplementary affidavit, the
ordersheet of the case is filed as Annexure No.SA-1 which shows that the
defendants were duly appearing before the respondent No.2. In fact, it is
specifically noted n the ordersheet that on 18.12.2012, the defendant No.2 was
present and arguments were heard and the case was fixed for 15.1.2018. The case
was fixed on 7.3.2018. On 7.3.2018 it was noted that parties were heard and
fixed for 12.3.2018 for orders. On 12.3.2018, 11.4.2018 was fixed for orders.
From the aforesaid ordersheet, it is clear that the defendant was regularly
appearing before the Court concerned and had in fact made arguments also.
Thereafter, it appears that a recall application is filed by the defendant No.1
which is allowed by the impugned order dated 4.4.2022 without considering the
aspect that the order was passed after hearing parties. In view thereof, let
notice be issued to respondent No.2 to 4. till the next date of listing, the
operation of order dated 4.4.2022 shall remain stayed. List in July, 2022.[46]”
5.19 order of Hon’ble High Court in
Case of Nirmla and another Versus State of UP and others Writ - C No.9224 of
2022, interim order dt. 25.05.2022
The
Hon’ble Division Bench of High Court Lucknow has passed the order for
compliance of the ex parte order even though the ex parte order is under
sub-judice in the same Hon’ble High Court in Single Bench, the information has
been given by the respondent counsel the Hon’ble Court on first date has been
pleased to passed the order dt. 22.12.2023 is reproduce herewith as under,
“
Learned Standing Counsel prays for and is granted two weeks' time to obtain
instructions in the matter. List in the week commencing 9th January, 2023, as
fresh.[47]”
That
on the next the counsel for the respondent has been appeared in the Court and
informed to the Hon’ble Court with regard to earlier pendency of the writ
petition in single bench the Hon’ble Court has been pleased and passed the
order dt. 10.01.2023 same is reproduce herewith as under,
“Heard
learned counsel for the petitioners and Sri Sajjad Hussain, who has appeared on
behalf Respondent No.5. Learned counsel for Respondent No.5 says that the writ
petition has been filed without disclosing all the facts as are necessary for
adjudication. He prays for some time to file counter affidavit. Four weeks time
as prayed for is granted to file counter affidavit. Learned Standing Counsel
shall also file counter affidavit within same period. Two weeks time thereafter
is granted to the learned counsel for the petitioner to file rejoinder
affidavit. List this case on 21.02.2023. The copy of the writ petition shall be
given to Sri Sajjad Hussain, learned counsel for the Respondent No.5 by the
learned counsel for the petitioners. [48]”
5.20 Per Incuriam of Judgments
Judgement of Hon’ble High of Allahabad in Case of Mohd. Ikram & Another
vs Dy. Labour Commissioner U.P. decided
on 7 May, 2013 is per incuriam (Per incuriam word come in English From Latin
meaning is “through lack of case”) meaning thereby the Hon’ble Judge oversight and
without considering all the relevant facts and precedent of law which were
earlier decided in the proceeding of law, the Hon’ble Judge in case of Mohd.
Ikram & Another Vs. Dy. Labour Commissioner U.P. has committed a manifest of error not
considering the law of precedent in Case of Grindlays Bank LTD Vs.Central
Government Industrial Tribunal & Ors Judgement Dt. 12.12.1980reported1981
AIR 606, 1981 SCR (2) 341 and In Case of Satnam Verma Vs. Union of India and
various other judgements of the Hon’ble Apex have not been considered and other
judgements of the Hon’ble Allahabad High Court have not been considered
therefore the judgement of Hon’ble
High of Allahabad in the Case of Mohd. Ikram & Another vs Dy. Labour Commissioner
U.P. decided on 7 May, 2013 is per
incuriam as per As per Legal Service India[49]Through carelessness, through inadvertence.
'Per Incuriam' means 'through want of care'. A decision of the Court which is mistaken. A
decision of the Court is not a Binding Precedent if given Per Incuriam, i.e.
without the Court's attention having been drawn to the relevant authorities, or
statutes
5.21 Incuriam of Judgements
indiankanoon.org
“The English Courts were the first ones to develop this principle in relaxation
of the rule of stare decisis. The quotable in law is avoided and ignored if it
is rendered in ignorantium of a statute or other binding authority.”[50]
The Hon’ble Court Allahabad High Court in dealing with inCase ofMohd.
Ikram & Another vs Dy. Labour Commissioner U.P. decided on 7 May, 2013 has declared as
incuriam due to not considering the precedent of the earlier judgement of
Hon’ble Apex Court as mentioned above, therefore in view of the discussion judgement
and order dt. 7 May, 2013 is incuriam and have no precedent value.
-------
CONCLUSION AND SUGGESTIONS
6.1 Conclusion
As
per my research questions “1.Whether
Employee’s Compensation of Commissioner having power to Recall Ex-Parte Order
under Employee’s Compensation Act 1923 and
Workmen’s Compensation Rule 1924? 2. And Review and 3. Recall is permissible under the
(Employee's Compensation Act 1923) and (Workmen’s
Compensation Rules 1924)[51]
I
am of view that the Commissioner of Employee’s Compensation Commissioner under
the Act and its Rules having power to recall its ex-parte order, in support of above
statement I would like to refer the section 23 power of Commissioner under the
Employee’s Compensation Act, 1923 is quoted below “23.
Powers and procedure of Commissioners. The Commissioner shall have all the
powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908),
for the purpose of taking evidence on oath (which such Commissioner is hereby
empowered to impose) and of enforcing the attendance of witnesses and
compelling the production of documents and material objects, [and
the Commissioner shall be deemed to be a Civil Court for all the purposes of [section
195 and of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)]].[52]”
section 23 is provided that the Commissioner of Employee’s Compensation, Act,
1923 shall be deemed to be a Civil Court for all the purposes, that is why power
of recall of ex parte order is also vested in his power, and also Workmen’s
Compensation Rules 1924’s proviso of Rule 41 is provided that the Court of
Employee’s Compensation Commissioner is having power of Code of Civil Procedure
Order 9 Rule 13 and 15 to 30, Rule 41 of Workmen’s Compensation Rules, 1924 is
quoted below, “41. Certain provisions of Code of Civil Procedure, 1908, to
apply.—Save as otherwise expressly provided in the Act or these Rules the
following provisions of the First Schedule to the Code of Civil Procedure,
1908, namely, those contained in Order V, Rules 9 to 13 and 15 to 30: Order IX;
Order XIII, Rules 3 to 10; Order XVI, Rules 2 to 21; Order XVII; and Order
XXIII, Rules 1 and 2, shall apply to proceedings before Commissioners, in so
far as they may be applicable thereto: Provided that- (a) for
the purpose of facilitating the application of the said provisions the
Commissioner may construe them with such alterations not affecting the
substance as may be necessary or proper to adapt them to the matter before him;(b) the
Commissioner may, for sufficient reasons, proceed otherwise than in accordance
with the said provisions if he is satisfied that the interests of the parties
will not thereby be prejudiced.[53]”the Workmen’s Compensation Rules,
1924, Rule 41 is providing the power of Code of Civil Procedure, 1908, Order 9
Rule 13 and 15 to 30, same is reproduce here as under “13. Setting aside decree
ex parte against defendants. — In any case in which a decree is passed ex parte
against a defendant, he may apply to the Court by which the decree was passed
for an order to set it aside; and if he satisfies the Court that the summons
was not duly served, or that he was prevented by any sufficient cause from
appearing when the suit was called on for hearing, the Court shall make an
order setting aside the decree as against him upon such terms as to costs,
payment into Court or otherwise as it thinks fit, and shall appoint a day for
proceeding with the suit: Provided that where the decree is of such a nature
that it cannot be set aside as against such defendant only it may be set aside
as against all or any of the other defendants also:[Provided further that no
Court shall set aside a decree passed ex parte merely on the ground that there
has been an irregularity in the service of summons, if it is satisfied that the
defendant had notice of the date of hearing and had sufficient time to appear
and answer the plaintiff's claim.]2[Explanation. Where there has been an appeal
against a decree passed ex parte under this rule, and the appeal has been
disposed of on any ground other than the ground that the appellant has
withdrawn the appeal, no application shall lie under this rule for setting
aside that ex parte decree.[54]]”
as per section 23 of Employee’s Compensation Act, 1923 and Rule 41 of Workmen’s
Compensation Rules, 1924 and from the plain reading of the Order 9 and Rule 13
of Code of Civil Procedure, 1908, it is crystal clear that the Commissioner of Employee’s
/ Workmen’s Compensation is having to recall its ex-parte order, the Hon’ble
Apex Court as well as various Hon’ble High Courts has given finding that the
Commissioner of Employee’s / Workmen’s Compensation is having to recall its
ex-parte order list of the cases, petition number, date of order and relevant
paragraphs are as under
Srl |
Party Names |
Dt of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case No. |
1 |
Satnam Verma Vs. Union of India |
09.12.1984 |
SCI |
7,8,9,10 |
AIR1985SC 294 |
2 |
Grindlays Bank LTD Vs Central Government
Industrial Tribunal &Ors |
12.12.1980 |
SCI |
2nd, 3th, 4th, 5th |
1981 AIR 606, |
3 |
United India Insurance Co. Ltd. Vs.Workmen’s
Compensation |
17.01.1996 |
Allahabad |
14 |
1997 ACJ 1028 |
4 |
Syndet (India) Private Ltd Vs. Presiding
Officer |
25.01.2005 |
Allahabad |
3 |
2005 (2) ESC 1239 |
5 |
Raj Bahadur Vs.Presiding Officer |
08.01.2010 |
Allahabad |
1st & 2nd |
Writ C No. 575 of 2010 |
6 |
M/s Universal Cylinders Limited Vs. The
Presiding Officer |
31.01.2020 |
Allahabad |
Last page |
Writ C No. 15333 of 2019 |
7 |
Kolandhayee Vs. Commissioner Labor
(Commissioner Workmen’s Compensation Act) |
19.04.2010 |
Madras |
Last page |
W.A. No. 2505 of 2001 |
8 |
A.V. Varghese Vs. N.K. Kumaran |
10.08.2011 |
Kerala |
4 and 5 |
WP (C) No. 14248 of 2009 |
That the various Hon’ble Courts has given
finding that the (Workmen’s / Employee’s Compensation Commissioner has no power
to recall its own ex parte order, they have refer the section 6 of Employee’s
Compensation Act, 1923 in the said section there no power of review has been
given by the Act and in Rule 32 (2) of Workmen’s Compensation Rules, 1924 is
providing that the Commissioner has no power to alter the judgement after its
pronouncement only clerical or arithmetical mistake is allowed, Rule 32 (2) of Workmen’s Compensation Rules,
1924 is reproduced here as under , “(2) The Commissioner, at the time of signing and dating his judgment,
shall pronounce, his decision, and thereafter no addition or alteration shall
be made to the judgment other than the correction of a clerical or arithmetical
mistake arising from any accidental slip or omission.[55]” on the basis of the Rule
32 (2) of Workmen’s Compensation Rules, 1924 the various Hon’ble Court has
given finding in the flowing judgements that the Commissioner has no power to
recall its own ex-parte order, the table of the judgment is as under
Srl |
Party Names |
Dt of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case No. |
1 |
Marshal Securities Vs. The
Presiding Officer Labour Court (2) UP Kanpur and 2 others |
13.09.2006 |
Allahabad High Court |
31 and 34 |
Writ – C No. 33855 of 2006 |
2 |
Mohd. Ikram & Another Vs. Dy. Labour
Commissioner, U.P. Saharanpur and others |
07.05.2013 |
Allahabad High Court |
6 |
Civil Misc Writ Petition No. 15504 of 2011 |
3 |
Balaji Stone Crusher Throu, Partner Kiran Saini
and other connected matter Vs. State of UP throu Geology and Mines and Ors |
02.08.2022 |
Allahabad High Court, Lucknow |
11 |
Writ – C No. 7606 of 2019 |
4 |
Raman Agnihotri Vs. Commissioner, Workmen’s
Compensation, Kanpur and others |
28.11.2008 |
Allahabad High Court |
21, 25 |
Civil Misc. Writ Petition No. 61531 of 2008 |
5 |
Mayan Vs. Mustafa and another |
08.11.2021 |
Supreme Court of India |
2 |
Civil Appeal No. 6614/2021 |
6 |
Sangam Tape Co. Vs. Hans Raj |
27.09.2004 |
Supreme Court of India |
6, 7, 8, 12 |
Civil Appeal No. 2064 of 2002 |
7 |
Nirmla and Another Vs. State of Uttar Pradesh and
others |
25.05.2022 |
Allahabad High Court Lucknow bench Lucknow |
1, 2, 3 and 4 |
Writ-C No. 2793 of 2022 |
8 |
Nimla and Another Vs. State of UP & Others |
22.12.2022 & 10.01.2023 |
Allahabad High Court Lucknow bench Lucknow |
1 and 2 |
Writ – C No. 9224 of 2022 |
Judgement of Hon’ble High of Allahabad in Case of Mohd. Ikram & Another
vs Dy. Labour Commissioner U.P. decided
on 7 May, 2013 is per incuriam (Per incuriam word come in English From Latin
meaning is “through lack of case”) meaning thereby the Hon’ble Judge oversight
and without considering all the relevant facts and precedent of law which were
earlier decided in the proceeding of law, the Hon’ble Judge in case of Mohd.
Ikram & Another Vs. Dy. Labour Commissioner U.P., Marshal Securities Vs. The Presiding
Officer Labour Court (2) UP Kanpur and 2 others, Balaji Stone Crusher Throu,
Partner Kiran Saini and other connected matter Vs. State of UP throu Geology
and Mines and Ors, Raman Agnihotri Vs. Commissioner, Workmen’s Compensation,
Kanpur and others, Mayan Vs. Mustafa and another, Sangam Tape Co. Vs. Hans Raj,
Nirmla and Another Vs. State of Uttar Pradesh and others most of the
judgement (supra) is recent judgement of
2021 and 22 and of old up to 2000, has
committed a manifest of error not considering the law of precedent in Case of Grindlays Bank LTD Vs. Central
Government Industrial Tribunal &Ors Judgement Dt. 12.12.1980 reported1981
AIR 606, 1981 SCR (2) 341 and In Case of Satnam Verma Vs. Union of India and
various other judgements of the Hon’ble Apex have not been considered and other
judgements of the Hon’ble Allahabad High Court have not been considered
therefore the judgement (supra) are
per incuriam as per As per Legal Service India[56]Through carelessness, through inadvertence.
'Per Incuriam' means 'through want of care'. A decision of the Court which are mistaken.
A decision of the Court is not a binding precedent if given Per Incuriam, i.e.
without the Court's attention having been drawn to the relevant authorities, or
statutes, in view of the above the Employee’s / Workmen Compensation
Commissioner has power to recall its own ex parte order, accordingly I am of
the view that the Employee’s / Workmen Compensation Commissioner has power to
recall its own ex parte order / award, and power of Review and Recall also
vested in his power for proper justice but same is not provided in the Act and
Rules clearly therefore suggestion is required to Legislation and Law maker and
Jurist suggestion kindly see 6.2
6.2
Suggestions
1.
That the Rule 32(2) of Workmen’s Compensation Rules, 1924 is contradictory to
the Rule 41 of Workmen’s Compensation Rules, 1924, Rule 32(2) of Workmen’s
Compensation Rules, 1924 is reproduce as under “(2) The Commissioner, at the time of signing and dating his judgment,
shall pronounce, his decision, and thereafter no addition or alteration shall
be made to the judgment other than the correction of a clerical or arithmetical
mistake arising from any accidental slip or omission” and Rule 41
of Workmen’s Compensation Rules, 1924 is
reproduce here as under, “41. Certain provisions of Code of Civil Procedure, 1908, to
apply.—Save as otherwise expressly provided in the Act or these Rules the
following provisions of the First Schedule to the Code of Civil Procedure, 1908,
namely, those contained in Order V, Rules 9 to 13 and 15 to 30: Order IX; Order
XIII, Rules 3 to 10; Order XVI, Rules 2 to 21; Order XVII; and Order XXIII,
Rules 1 and 2, shall apply to proceedings before Commissioners, in so far as
they may be applicable thereto: Provided that- (a) for
the purpose of facilitating the application of the said provisions the
Commissioner may construe them with such alterations not affecting the
substance as may be necessary or proper to adapt them to the matter before him;(b) the
Commissioner may, for sufficient reasons, proceed otherwise than in accordance
with the said provisions if he is satisfied that the interests of the parties
will not thereby be prejudiced” in fact Rule 32(2) of Workmen’s Compensation Rules, 1924 says after signing of the order –
judgement, Commissioner has no power to addition, alteration, modification
other than Clerical and Arithmetical mistake, and in other hand Rule 41 of Workmen’s Compensation Rules, 1924, the
Commissioner has power of Order 9 Rule 13 and 15 to 30, which provide power of
recall of ex parte order and Section 23 of the Employee’s Workmen Compensation
Act, 1923 says that the Commissioner has all power of civil court, then the
Rule 32(2) and 41 as well as Section 23 of Employee’s Compensation Act, 1923
are contradictory therefore Rule 32(2) of Workmen’s Compensation Rules, 1924 is
liable be omitted and amended to the extend to provide power to Employee’s
Compensation Commissioner to recall his own ex parte order in the interest of
justice to avoiding difficulty to the litigant as well as presiding officer for
deciding the case / claim in accordance with law.
2. That the
judgments of the Hon’ble Court as mention below is required for fresh
consideration, the following judgment finding is contrary to the Act and
various other judgement of the Hon’ble Court, the table of judgement which
requires fresh consideration are as under
Srl |
Party Names |
Dt of Decision |
By Hon’ble Court |
Relevant para |
Report in/Case No. |
1 |
Marshal Securities Vs. The
Presiding Officer Labour Court |
13.09.2006 |
Allahabad High Court |
31 and 34 |
Writ – C No. 33855 of 2006 |
2 |
Mohd. Ikram & Another Vs. Dy. Labour
Commissioner, U.P. Saharanpur and others |
07.05.2013 |
Allahabad High Court |
6 |
Civil Misc Writ Petition No. 15504 of 2011 |
3 |
Balaji Stone Crusher Vs. State of UP throu
Geology and Mines & Ors |
02.08.2022 |
High Court, Lucknow |
11 |
Writ – C No. 7606 of 2019 |
4 |
Raman Agnihotri Vs. Commissioner, Workmen’s
Compensation, Kanpur and others |
28.11.2008 |
Allahabad High Court |
21, 25 |
Civil Misc. Writ Petition No. 61531/2008 |
5 |
Mayan Vs. Mustafa and another |
08.11.2021 |
SCI |
2 |
Civil Appeal No. 6614 of 2021 |
6 |
Sangam Tape Co. Vs. Hans Raj |
27.09.2004 |
SCI |
6, 7, 8, 12 |
Civil Appeal No. 2064 of 2002 |
7 |
Nirmla and Another Vs. State of Uttar Pradesh and
others |
25.05.2022 |
High Court Lucknow |
1, 2, 3 and 4 |
Writ-C No. 2793 of 2022 |
8 |
Nimla and Anr Vs. State of UP & Ors |
22.12.2022 10.01.2023 |
High Court Lucknow |
1 and 2 |
Writ – C No. 9224 of 2022 |
Judgement of Hon’ble High of Allahabad in Case of Mohd. Ikram & Another
vs Dy. Labour Commissioner U.P. decided
on 7 May, 2013 is per incuriam (Per incuriam word come in English From Latin
meaning is “through lack of case”) meaning thereby the Hon’ble Judge oversight
and without considering all the relevant facts and precedent of law which were
earlier decided in the proceeding of law, the Hon’ble Judge in case of Mohd.
Ikram & Another Vs. Dy. Labour Commissioner U.P., Marshal Securities Vs. The Presiding
Officer Labour Court (2) UP Kanpur and 2 others, Balaji Stone Crusher Throu,
Partner Kiran Saini and other connected matter Vs. State of UP throu Geology
and Mines and Ors, Raman Agnihotri Vs. Commissioner, Workmen’s Compensation,
Kanpur and others, Mayan Vs. Mustafa and another, Sangam Tape Co. Vs. Hans Raj,
Nirmla and Another Vs. State of Uttar Pradesh and others most of the
judgement (supra) is recent judgement of
2021 and 22 and of old up to 2000, has
committed a manifest of error not considering the law of precedent in Case of Grindlays Bank LTD Vs.Central
Government Industrial Tribunal &OrsJudgement Dt. 12.12.1980 reported1981
AIR 606, 1981 SCR (2) 341 and In Case of Satnam Verma Vs. Union of India and
various other judgements of the Hon’ble Apex have not been considered and other
judgements of the Hon’ble Allahabad High Court have not been considered
therefore the judgement (supra) are
per incuriam as per As per Legal Service India[57]Through carelessness, through inadvertence.
'Per Incuriam' means 'through want of care'. A decision of the Court which are mistaken.
A decision of the Court is not a binding precedent if given Per Incuriam, i.e.
without the Court's attention having been drawn to the relevant authorities, or
statutes, therefore aforesaid judgement are liable to be considered by the
Hon’ble larger bench for avoiding conflict by the litigant as well as president
officer and appeal Court for accepting the appeal and petition in the interest
of justice.
3.
That the Legislation may amend the Employee’s Compensation Act and Rule and
established the Court of Compensation Commissioner and provide power to trial
and decide the case on its merits including right of recall it the order is ex
parte, even though if the ex – parte order may be on merit, if recall
application is file in bonafide manner, the Commissioner may impowered to
entertained and decided in accordance with law, after providing opportunity of
hearing to the effected parties.
4.
That the Legislation may framed the for establishing the Compensation
Commissioner Court in each District of India, and in each State Revisional /
Appealable Court for proper adjudication of the claim cases.
5.
That the Legislature may amend and insert the provision of speedy disposal of
the claim cases filed before Employee’s Compensation Court within time framed
period, disposal in time bound manner.
6.
That the process of filing of the case is required to be considered again, and
process of filing of cases may make easy for the purpose of easy excess to the
layman.
7.
That the parent Act is Workmen’s Compensation Act, 1923 and amended as
Employee’s Compensation Act, 1923, the Rule of Act is as Workmen Compensation
Rules, 1924, in the Rule Workmen is liable to be deleted and Employee’s may be
added for proper naming of Act and Rule is required.
8.
That the order of Employee’s Compensation Act and Rule is liable to be
revisable in the Court of Session Court, and provision of Revision is liable to
be added.
9.
That the Act and Rule is liable to be amended on information of any persons
i.e. informer Commissioner may register the case and proceed and seek the
report to concerned police station and spot visit option may also be added.
10.
That the Power of actual review an recall is liable to be added for proper
justice to all the affected parties, in fact the Act and Rule with regard to
review and recall is not clearly providing and conflicting the each other,
therefore to avoiding the confliction Review and Recall power is liable to be
provided in the hands of Commissioner of the Employee’s Compensation Act, 1923,
and its Rules 1924
-------
Books
1. All
India Reporter (AIR)
2. Code
of Civil Procedure, 1908 Ekta Law Agency
Edition2018
3. Employee’s
Compensation Act, 1923 EBC 42nd Edition 2022
4. Industrial
Dispute Act, 1947 in English – Latest 2023 Edition
5. Industrial
Dispute Act, 1947, Kharbanda and Kharbanda Law Publication Edition 2022
6. Industrial
Disputes Act, 1947 (Commentary) Law Publishing House 10 Edition 2022
7. Labour
and Industrial Law by Dr VG Goswami, Publication Central Law Agency
8. Labour
and Industrial Laws PHI learning Private Limited Edition 2022
9. Labour
and Industrial Laws PHI Lexis Nexis Edition reprint 2017
10. Supreme
Court Cases. (SCC)
11. The
Employee’s Compensation Act, 1923 Universal New Delhi Edition 2021
12. The
Fatal Accidents Act, 1855 Commercial Law Publishers (India) Edition 2023
13. The
Fatal Accidents Act, 1855 Universal law Publishing Edition 2016
14. The
Judicial Development of the Workmen’s Compensation Act: A Paper by Richard A.
Willes Legal treaties 1800 – 1926 Published by Gale MOML Print Edition
15. Workmen’s
Compensation Act, 1923 by KD Srivastav’s 6th Edition 1999
16. Workmen’s
Compensation Act, 1923 with State Amendment along with allied Rules see
Employee’s Compensation Act, 2009, Professional Book Publishers 2022
17. Workmen’s
Compensation Rules, 1924 EBC 42nd Edition 2022
Article
1. Compensation is a broad term that refers to anything that a business
provides to an employee in exchange for their effort.This article was written
by Denzel a Consultant at Industrial Psychology Consultants
(Pvt) Ltd
2. Employees
Compensation Act, 1923: Amazing facts to know about it This article is written by Madhuri Pilania, a first-year student
pursuing BBA.LLB from Symbiosis Law School, Noida. This article deals with the
Employees Compensation Act, 1923.
Websites
1. www.main.scigov.in
(Supreme Court of India official website)
2. https://www.allahabadhighcourt.in/(Allahabad
High Court)
3. https://hckerala.gov.in/
(Kerala High Court)
4. https://www.hcmadras.tn.nic.in/(Madras
High Court)
5. https://lawmin.gov.in/(
Ministry
of Law and Justice Government of India)
6. www.scconline.com (Supreme Court Cases online portal and website)
7. https://indiankanoon.org/
(Indian Kanoon law portal)
8. https://legalaffairs.gov.in/ (Legal Affair Ministry Government of India)
9. https://en.wikipedia.org/wiki/Ministry_of_Law_and_Justice_(India)
(Portal of knowledge)
10. https://labour.gov.in/
(Ministry of Labour and EmploymentGovernment
ministry )
-------
[1]
Employee’s Compensation Act, 1923 42nd Edition, 2022 p-54 published by EBC
[2]
Workmen’s Compensation Rules, 1924 42nd Edition, 2022 p-102
published by EBC
[3]
Order 9 Rule 13 of CPC, 1908, Edition 2018 Ekta Law Agency p-131
[4]
Workmen’s Compensation Rules 1924, Rules 32(2)
[5]https://www.legalserviceindia.com/legal/article-6684-an-analysis-of-concept-of-per-incuriam.html#:~:text=Through%20carelessness%2C%20through%20inadvertence.,the%20relevant%20authorities%2C%20or%20statutes.
[6]
Employee’s Compensation Act, 1923 42nd Edition, 2022 p-54 published by EBC
[7]
Workmen’s Compensation Rules, 1924 42nd Edition, 2022 p-102
published by EBC
[8]
Workmen’s Compensation Rules 1924, Rules 32(2)
[9] The Fatal Accident Act, 1855
[10]
Employee’s Compensation Act, 1923 along with Workmen’s Compensation Rules, 1924
page 93 EBC 42nd Edition, 2022
[12]
Law Commission of India Report of 134th of 1989 1.4
[13]
Law Commission of India Report of 134th of 1989 para 1A.14
[14]
The workmen’s Compensation (amendment) Act, 2009 (the Gazette of India
Extraordinary part II-
[15]The World of Labour in Mughal India (c.1500–1750)Published
online by Cambridge University Press: 20 September 2011
[16]The World of
Labour in Mughal India
[17]Akbarnama
[19]
Employees’ Compensation Act, 1923 42nd Edition, 2022 EBC
[23]Employees’ Compensation Act 1923
(section 2 -D)
[24]
Code of Civil Procedure, 1908
[25]
Rule 41 of Workmen’s Compensation Rule 1923
[26]
Order 9 Rule 13 of The Code of Civil Procedure, 1908
[27]
Section 30 of Employee’s Compensation Act 1923 42nd Edition, 2022
EBC
[28]
Employee’s Compensation Act 1923 42nd Edition, 2022 EBC
[29]AIR 1985 SC 294 & 1984 Supp (1)SCC
712
[33] 2205 (2) ESC 1239
[45]
2005(9)SCC331 / www.sci.in
[47]
Ibid
[48]
Ibid
[49]https://www.legalserviceindia.com/legal/article-6684-an-analysis-of-concept-of-per-incuriam.html#:~:text=Through%20carelessness%2C%20through%20inadvertence.,the%20relevant%20authorities%2C%20or%20statutes.
[51]
On page 4 to instant dissertation (EC Compensation Commissioner in contest of
recall of ex-parte award
[52]
Employee’s Compensation Act, 1923 42nd Edition, 2022 p-54 published by EBC
[53]
Workmen’s Compensation Rules, 1924 42nd Edition, 2022 p-102
published by EBC
[54]
Order 9 Rule 13 of CPC, 1908, Edition 2018 Ekta Law Agency p-131
[55]
Workmen’s Compensation Rules 1924, Rules 32(2)
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