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Unit 10: Industrial Disputes Act, 1947

National Tribunal Notes

This is the third adjudicatory body to be appointed by the Central Government under the Act for
the reasons already mentioned above. It can deal with any dispute mentioned in Schedule II and
III of the Act or any matter which is not specified therein. This also consists of one person to be
appointed by the Central Government, and he must have been a Judge of a High Court. He may
also be assisted by two assessors appointed by the Government to advise him in adjudicating
disputes.
The presiding officers of the above three adjudicatory bodies must be independent persons and
should not have attained the age of 65 years. Again, these three bodies are not hierarchical. It is
the prerogative of the Government to refer a dispute to these bodies. They are under the control
of the labour department of the respective State Government and the Central Government. The
contending parties cannot refer any dispute for adjudication themselves, and the awards of these
bodies are binding on them. (Section 7B)

Reference of Dispute for Adjudication (Section 10)

If a dispute is not settled by direct negotiation, or conciliation, if the parties do not agree to get
it settled by voluntary arbitration, the Government at its discretion may refer it to Labour
Court, Industrial Tribunal or National Tribunal, depending upon whether the matter of the
dispute appears in the Second of Third Schedule of the Act. However, if the parties to the dispute
jointly or separately apply for a reference to Labour Court or Tribunal, the Government is
obliged to make a reference accordingly if it is satisfied that the persons applying represent the
majority of each party. Disputes which are considered vexatious or frivolous are not referred to
adjudication. The Government has also the power to refer disputes which have not taken place,
but are only apprehended. After referring the dispute to adjudication the Government can
prohibit the continuance of any strike or lock-out in connection with such dispute which may be
in existence on the date of its reference.
An order referring a dispute to Labour Court or Industrial Tribunal or National Tribunal shall
specify the period within which they shall submit their award on such dispute to the Government
concerned. In case of individual disputes such a period shall not exceed three months. The period
can, however, be extended if the parties concerned apply for such extension, or the Labour Court
or Industrial Tribunal may consider expedient to do so for the reason to be recorded. The
proceedings before these authorities shall not lapse on the ground that the proceedings have not
been completed’ within the specified time or by reason of the death of any of the parties to
dispute being a workman. In computing any period specified in the order of reference, the
period if any, for which proceedings had been stayed by the injunction of the Civil Court, shall
be excluded.
When the Central Government is the appropriate Government in relation to any industrial
dispute, it can refer the dispute for adjudication to Labour Court or Industrial Tribunal appointed
by the State Government instead of setting up its own Labour Court or Tribunal for that purpose.

Effectiveness of Adjudication Machinery

Initially trade unions affiliated to all political parties were enthusiastic in getting their disputes
settled by conciliation and adjudication as provided under the Industrial Disputes Act, 1947.
Their enthusiasm started waning when they found this method of settling disputes as very time
consuming. Not a few employers also started questioning the credibility of the presiding officers
of the Labour Courts and Industrial Tribunals, who are generally retired persons engaged on
yearly contract basis. Some trade union leaders now prefer to get disputes settled by pressurised

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