Industrial Tribunal Award Set Aside: Supreme Court Grants Fresh Hearing

The Supreme Court of India recently delivered a crucial judgment in the case of Bundi Zila Petrol Pump Dealers Association vs. Sanyojak Bundi Zila Petrol Pump Mazdoor Sangh, addressing the issue of an ex-parte award given by the Industrial Tribunal, Kota. The case highlights the importance of granting fair hearings in industrial disputes and ensuring that all parties have a chance to present their case.

Background of the Case

The dispute originated from a reference made by the State Government under Section 10(1) of the Industrial Disputes Act, 1947, regarding various demands made by the workmen of petrol pumps in Bundi district. The demands included higher wages, casual leaves, dearness allowance, provident fund benefits, and other worker rights.

The Industrial Tribunal, Kota, passed an ex-parte award in favor of the workmen on July 31, 1995, as the Bundi Zila Petrol Pump Dealers Association (the appellant) did not appear before the tribunal despite notice.

Legal Proceedings

• The appellant later challenged the ex-parte award in the Rajasthan High Court.
• A Single Judge of the High Court allowed the appeal and set aside the award.
• The workmen’s union then filed an appeal before the Division Bench, which reversed the Single Judge’s order and reinstated the Tribunal’s award.
• The appellant, aggrieved by this decision, approached the Supreme Court.

Supreme Court’s Observations

The Supreme Court noted that the appellant had not received a fair opportunity to contest the case before the Industrial Tribunal. The Court stated:

“The appellant did not get any opportunity to contest the reference before the Industrial Tribunal and had to suffer an adverse award ex-parte. The cause shown for their absence constitutes a sufficient cause, entitling the appellant to claim an opportunity to contest the reference on merits.”

Additionally, the Court pointed out that there was no evidence that the appellant was aware of the proceedings before the Tribunal at the relevant time. It emphasized the principle that every party has a right to contest a case on its merits unless there is a clear legal exception.

Judgment and Directions

• The Supreme Court set aside the Division Bench’s order, the Single Judge’s order, and the Tribunal’s award.
• The matter was remanded to the Industrial Tribunal, Kota, for a fresh hearing.
• The appellant was granted the right to file a written statement and present evidence.
• The Tribunal was directed to conclude the proceedings within six months.
• The parties were instructed to appear before the Tribunal on March 5, 2019.

Conclusion

The Supreme Court’s ruling upholds the fundamental principle of fair hearings in judicial and quasi-judicial proceedings. It reiterates that procedural lapses should not result in undue hardship to any party, especially when substantial rights are involved. By allowing a fresh hearing, the Court ensured that justice is served while balancing the interests of both workers and management.

Petitioner Name: Bundi Zila Petrol Pump Dealers Association.
Respondent Name: Sanyojak Bundi Zila Petrol Pump Mazdoor Sangh.
Judgment By: Justice Abhay Manohar Sapre, Justice Dinesh Maheshwari.
Place Of Incident: Bundi, Rajasthan.
Judgment Date: 12-02-2019.

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