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Unit 7: Dispute Resolution and Industrial Harmony

objects and issue commission for examination of witnesses. They are also deemed to be public Notes
servants within the meaning of Section 21 of the Indian Penal Code. They can also enter premises
of an establishment to which dispute is related for purposes of enquiry after giving reasonable
notice.

7.6.1 Introduction of Section 11-A in the Act

Section 11-A was inserted in the Act by the Industrial Disputes (Amendment) Act, 1971, w.e.f.
15.12.1971. The statement of objects and reasons specifically referred to the decision of the
Supreme Court in Indian Iron & Steel Co. Ltd. and another vs. Their Workmen (1958-I LLJ 260). It also
referred to recommendation No.119 of the International Labour Organisation, that a worker
aggrieved by the termination of his employment should be entitled to appeal against the
termination, among others, to a neutral body such as an arbitrator, a court, an arbitration
committee or a similar body.

Section 11-A reads as under

Powers of Labour Courts, Tribunals and National Tribunals to give appropriate relief in case of
discharge of dismissal of workmen-
Where an industrial dispute relating to discharge or dismissal of a workman has been referred
to a Labour Court, Tribunal or National Tribunal for adjudication and, in the course of the
adjudication proceeding the Labour Court, Tribunal or National Tribunal, as the case may be, is
satisfied that the order of discharge or dismissal was not justified, it may by its award set side the
order of discharge or dismissal and direct reinstatement of the workman on such terms and
conditions, if any, as it thinks fit, or give such other relief to the workman including the award
of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may
require; provided that in any proceeding under this section, the Labour Court, Tribunal or
National Tribunal, as the case may be, shall rely only on the materials on record and shall not
take any fresh evidence in relation to the matter.

Effect of Section 11-A

Prior to the introduction of Section 11-A, the Tribunal had no power to interfere with the finding
of misconduct recorded in the domestic enquiry unless there existed one or other infirmities
pointed out by the Supreme Court in the case of Indian Iron & Steel Co. Ltd. The conduct of
disciplinary proceedings and punishment to be imposed were all considered to be a managerial
function which the Tribunal had no power to interfere unless the finding was perverse or the
punishment was so harsh as to lead to an inference of victimisation or unfair labour practice. But
now under this Section, the Tribunal is clothed with the power to reappraise the evidence in the
domestic enquiry and satisfy itself whether the said evidence relied on by employer established
the misconduct alleged against a workman. The limitations imposed on the powers of the
Tribunal by the decision in the Indian Iron & Steel Co. Ltd., can no longer be invoked by an
employer. Vaidialingam J. held: "The Tribunal is now at liberty to consider not only whether the
finding of misconduct recorded by an employer is correct, but also to differ from the said
finding if a proper case is made out. What was once largely in the realm of the satisfaction of
employer has ceased to be so, and now it is the satisfaction of the Tribunal that finally decides
the matter." Ultimately, the Tribunal may hold that the misconduct itself is not proved or that
the misconduct proved does not warrant the punishment of dismissal or discharge.
Under this section, for the first time, power has been given to a Tribunal to satisfy itself whether
misconduct is proved. This is particularly so, regarding even findings arrived at by an employer
in an enquiry properly held. The Tribunal has also been given power also for the first time, to

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