Page 203 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes reported were referred for arbitration. The National, Commission on Labour examined the
working of arbitration as a method of settling disputes, and found that it was yet to be accepted
by the parties, particularly by the ‘employers, unreservedly. The main hurdles noticed yet are:
 Choice of suitable arbitrator acceptable to both parties.

 Payment of-arbitration-fees-Unions can seldom afford to share such costs equally with
management.
Apart from these, it appears that arbitration under the Act is not correctly understood by the
employers and trade unions. When arbitration is suggested, the impression often is that matter
is to be left to the sole decision of an individual who can act in any manner he likes. The sanctity
of the decision by an arbitrator is also held in doubt. The fact that law covers voluntary arbitration,
and places it almost parallel to adjudication, is not appreciated or known widely.

!
Caution Undoubtedly an arbitrator can give a decision more promptly and enjoys greater
freedom since he is not bound by fetters of law and procedure. He is also not required to
only interpret the technicality and meaning of statutory provisions. He is required in fact
to decide the issue on grounds of natural justice and fair play to both the parties. Arbitration
if accepted voluntarily and not under any duress or pressure, should provide a more
wholesome answer. It, however, is for the parties to give a trial to this measure.

10.4.3 Adjudication

Unlike conciliation and arbitration, adjudication is compulsory method of resolving conflict.
The Industrial Disputes Act provides the machinery for adjudication, namely, Labour Courts,
Industrial Tribunals and National Tribunals. The procedures and powers of these three bodies
are similar as well as provisions regarding commencement of award and period of operation of
awards. Under the provisions of the Act, Labour Courts and Industrial Tribunals can be constituted
by both Central and State Governments, but the National Tribunals can be constituted by the
Central Government only, for adjudicating disputes which, in its opinion, involve a question of
national importance or of such a nature that industrial establishments situated in more than one
State are likely to be affected by such disputes.
Labour Court

It consists of one person only, who is also called the Presiding Officer, and who is or has been a
judge of a High Court, or he has been a district judge or an additional district judge for a period
not less than three years, or has held any judicial office in India for not less than seven years.
Industrial disputes relating to any matter specified in the Second Schedule of the Act (Appendix-
III) may be referred for adjudication to the Labour Court. (Section 7).
Industrial Tribunal

This is also one-man body (Presiding Officer). The Third Schedule of the Act mentions matters of
industrial disputes which can be referred to it for adjudication (Appendix-IV). This Schedule
shows that Industrial Tribunal has wider jurisdiction than the Labour Court. The Government
concerned may appoint two assessors to advise the Presiding Officer in the proceedings.
(Section 7A)

198 LOVELY PROFESSIONAL UNIVERSITY