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Unit 7: Dispute Resolution and Industrial Harmony

3. National Tribunal: This is the third adjudicatory body to be appointed by the Central Notes
Government under the Act for the reasons already mentioned above. It can deal with any
dispute mentioned in Schedules Second and Third 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 award 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.

7.5 Industrial Disputes Act

The Industrial Disputes Act, 1947 is a piece of social legislation enacted to provide for investigation
and settlement of industrial disputes and for certain other matters. It is an Act calculated to
ensure specific justice to both employers and workmen and advance the progress of industry by
bringing about harmony and cordial relationship between the parties. The co-operation between
capital and labour would obviously lead to more production and that naturally helps boost
national economy and progress. In achieving this goal, industrial adjudication takes into account
several principles such as the principle of comparable wages, productivity of the trade or industry,
cost of living and ability of the industry to pay, etc. apart from several other factors. In deciding

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