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The Bata Shoe co. v. D N Ganguly and Ors

The Bata Shoe co. v. D N Ganguly and Ors

The Bata Shoe Co. (P) Ltd. Vs. D.N.Ganguly and Ors.

Citation: 1961 AIR 1158

Bench: K.N Wanchoo

FACTS:

There had been an industrial dispute between the company and its workmen and this proceeded to conciliation proceedings. A settlement had been arrived upon the conclusion of the proceedings. Despite the settlement, some of the workmen went on strike and it was subsequently called off. The company had taken a strict view of this as the strike happened after a settlement had already been reached and served charge-sheets on the employees. The company proceeded to dismiss 60 of the workers. 

There were further conciliation proceedings upon the subject of the dismissal of the employees and the company was against holding further conciliation as the union was also opposed to reinstatement of certain workers. The matter was reported to the government and a reference was made to the Tribunal. The Tribunal gave out an award reinstating all the dismissed workmen on the ground that they had not been shown to have taken part in violence and the presence of extenuating circumstances.

ISSUES:

  • Whether the original settlement arrived at was valid
  • Whether the reference was valid
  • Whether the order of reinstatement of the Tribunal was valid

JUDGMENT:

The original settlement was arrived at by following the specific rules laid out in the industrial disputes act. Such a settlement was held by the Court to be binding upon the conciliation officer. A settlement that is not binding in the same manner, however, shall not be a bar to reference by the government. 

The argument that the reference was invalid on the grounds that it was an individual dispute was found to be unsustainable because the issue in the present case had been originally sponsored by the union and concerned the dismissal of a much larger number of workmen. 

The Court held that in such an instance where the Tribunal had found that there was misconduct that merited dismissal under the standing orders after a proper managerial inquiry, the Tribunal was not justified in interfering with the action of the management. The only exception to this rule would be if there was any evidence of unreasonable discrimination in the matter of rehiring the employees or any victimization or presence of unfair labour practices.