20 January 1967
Supreme Court
Download

AHMEDABAD MILLOWNERS' ASSOCIATION & ANR. Vs I.G. THAKORE, PRESIDENT & ORS.

Case number: Appeal (civil) 490 of 1965


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 10  

PETITIONER: AHMEDABAD MILLOWNERS’ ASSOCIATION & ANR.

       Vs.

RESPONDENT: I.G. THAKORE, PRESIDENT & ORS.

DATE OF JUDGMENT: 20/01/1967

BENCH: BHARGAVA, VISHISHTHA BENCH: BHARGAVA, VISHISHTHA HIDAYATULLAH, M. MITTER, G.K.

CITATION:  1967 AIR 1091            1967 SCR  (2) 437

ACT: Bombay  Industrial  Relations  Act 1946 (Bombay  Act  11  of 1947),  s. 2(3)-Applicability of Act to cotton  industry  in Ahmedabad-Bombay   Industrial  Disputes  Act  1938   whether repealed by the (Central) Industrial Disputes Act, 1947. Constitution of India, Art 14-Reference of dispute by  Union of Workmen under s. 73A  of Bombay Act 11 of 1947-Section in not giving similar right to employers whether violates  Art. 14.

HEADNOTE: A dispute regarding amendment of rules relating to privilege leave   etc.   arose  between  the   Ahmedabad   Millowners’ Association and the union of workmen employed in the textile industry.   After conceliation proceedings were declared  by the  Conciliator  to  have failed, the  union  referred  the dispute  to the Industrial Court under s. 73A of the  Bombay Industrial  Relations  Act,  1946.   The  Industrial   Court decided against the Millowners who filed a writ petition  in the’  High Court and thereafter appealed to this Court.   It was  urged on behalf of the appellants that (i) s.  73A  was violative  of  Art. 14 of the Constitution since it  gave  a right  to the workers union to make a reference but  not  to the  employer (ii) the Act had not been made -applicable  to the  cotton industry at Ahmedabad under s. 2(4) and  it  was not  applicable under s. 2(3) because the Bombay  Industrial Disputes  Act,  1938 was repugnant  to  Central)  Industrial Disputes Act, 1947 and must be deemed to have been repealed. HELD:(i) Section 73A was not violative of Art. 14. Whenever  any  industrial dispute arises  the  employer  can always ensure arbitration of that dispute by making an offer to  the union under s. 66 of the Act whereupon a  registered and  approved union is compelled to agree to  submission  of the dispute to arbitration.  Clearly therefore there was  no need to make any Provision empowering the employer to make a reference of the dispute -for arbitration to the  Industrial Court.   On the other hand if a Union wants a dispute to  be settled  and  even offers that the dispute be  submitted  to arbitration under s. 66 of the Act, the employer can refuse, whereupon the union would be left without any remedy.  It is obvious  that s. 73A was enacted to fill this gap and  place

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 10  

the union on with the employer so as to enable the union  to have  any  dispute = by arbitration even when  the  employer does  not  agree  to arbitration.  This  section,  in  these circumstances did not at all require that the right  granted to the union should also be granted to the employer. [441 G- H] There  was no difference in the procedure to be followed  by the Industrial Court in a reference under s. 73A and that to be followed when the reference is under s. 66.  In both  the procedure under s. 92 had to be followed. [443 E-F] (ii)Chapter V of the Bombay Industrial Disputes Act 1938 was not  repugnant  to  the Central Act of  1947  and  therefore continued to be in force, and consequently under s. 2(3)  of the  Bombay  Industrial Relations Act 1947  the  latter  Act became applicable to the industry of the appellants and  did not  require  a  notification-  under s.  2(4)  to  make  it applicable [446 G-H; 447 A-B] 438 Ex  Parte McLean, 43 C.L.R. 472 Victoria and Others  v.  The Commonwealth  of  Australia  and  Others,  58  C.L.R.   618, Zaverbhai  Amaidas v. The State of Bombay, [1955]  1  S.C.R. 799, Ch.  Tika Ramji & Ors. v. The State of Uttar Pradesh  & Ors., [1956] S.C.R. 392 and Deep Chand v. The State of Uttar Pradesh and Others, [1959] -Supp. 2 S.C.R. 8.

JUDGMENT: CIVIL APPELLATE JURISDICTION: Civil Appeal No. 490 of 1965. Appeal from the judgment and decree dated April 30, 1964  of the  Gujarat High Court in Special Civil Application No.  39 of 1963. S.   T.  Desai,  P. B. Patwari, and O. C.  Mathur,  for  the appellants. Respondent No. 2 appeared in person. H.   R.  Gokhale,  S.  P.  Nayyar  for  R.  H.  Dhebar,  for respondent No. 3. The Judgment of the Court, was delivered by Bhargava, J. The appellants in this appeal are the Ahmedabad Mill  owners Association, of which all the cotton  mills  in Ahmedabad  local  area  are members,  including  the  second appellant,  the Nagd Mills Ltd.  The third  respondent,  the Textile  Labour Association, Bhadra, Ahmedabad  (hereinafter referred to as "the Union") represents the workmen  employed in  the  various  mills  which  are  members  of  the  first appellant Association.  Under Standing Orders ,Settled under the Bombay Industrial Relations Act, 1946 (Bombay Act XI  of 1947) (hereinafter referred to as "the Act"), conditions  of service, including those relating to leave, were  prescribed in  view  of  clause  6 of Schedule 1  of  the  Act.   These Standing Orders were settled at a time when this clause 6 of the First Schedule to the Act read as follows:-               "Conditions, Procedure and Authority to  grant               leave."  Subsequently, Schedule 1 was  amended               so as to read as:               "Procedure and authority to grant leave,"  and               simultaneously,   clause  11  was   added   in               Schedule 11 which read as:               "All matters pertaining to leave and holidays,               other than those specified in items 6 and 7 in               Schedule 1." Consequent  to  this  amendment in  the  Schedules,  matters pertaining   to  leave  could,  thereafter,  no  longer   be prescribed  by  Standing  Orders,  which  were  confined  to matters contained in Schedule Iorly.

3

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 10  

By  a letter dated 21st April,, 1961, the Union gave  notice to  the  first appellant, desiring that changes be  made  as specified  in  the Annexure to this letter.   Those  changes sought in the Annexure related to grant of privilege  leave, sick leave, casual leave, and pay in lieu of privilege leave to all workers employed in the local textile industry in the same manner in which, under the earlier Standing  439 Orders, the clerical and some other staff were granted these benefits.  This notice was given by the Union under s. 42(2) of  the  Act.   The dispute was not  amicably  settled,  and consequently, the matter was referred for conciliation.  The conciliation  proceedings also failed, and,  thereupon,  the Conciliator,  on 23rd June, 1961, issued a certificate  that he had come to the conclusion from the discussions which the parties had before him that the dispute’ was not capable  of being  settled  by conciliation.  Thereupon, by  the  letter dated 29th July, 1961, the Union referred the dispute to the Industrial  Court under section 73A of the Act.  Before  the Industrial Court, various pleas were taken on behalf of  the appellants, and some of these pleas were the  subject-matter of   preliminary  issues  which  were  decided  before   the Industrial  Court  could proceed to give  the  final  Award. Though  a number of such preliminary issues were decided  by the  Industrial Court, we are only concerned with  two  such issues, as they were the only two matters pressed before  us on  behalf  of  the appellants in this  appeal.   One  issue raised was that s. 73A of the Act was ultra vires Article 14 of  the Constitution as it granted a right to the  Union  to make  a  reference to the Industrial Court,  while  no  such right was granted to the employers.  The second point  urged was  that  the Act did not apply to the cotton  mills  which were members of the first appellant Association, because  it had  not been made applicable to them under s. 2(4)  of  the Act,  while it could not become applicable to them under  s. 2(3) of the Act, because the Bombay Industrial Disputes Act, 1938,  was  not  in force in  these  industries  immediately before the commencement of the Act.  Both these points  were decided  by  the Industrial Court  against  the  appellants. Consequently, the appellants moved a petition under Articles 226  and  227  of  the Constitution in  the  High  Court  of Gujarat.   The High Court rejected these  preliminary  pleas raised  on behalf of the appellants and upheld the  view  of the Industrial Court that the reference was competent.   The appellants have now come up to this Court under  certificate granted  by  the High Court against this order of  the  High Court. As  we have mentioned earlier, the appellants had  raised  a number of pleas which were the subject-matter of preliminary issues before the Industrial Court and several’ of them were the  subject  matter of the petition before the  High  Court also.  In this Court, however, reliance has been placed only on the two pleas, mentioned above.  The first plea is  based on  the language of s. 73A of the Act which, on the face  of it, grants the right to a Union only to make a reference  of an  industrial  dispute for arbitration  to  the  Industrial Court and does not grant any such right to an employer.   It was,  however, urged on behalf of the respondents  that,  in fact,  this section was introduced in the Act for  the  very purpose  of placing the employers and the Union on terms  of equality,  and that, instead of creating any  discrimination between them, this section, on the 440 contrary, was necessary to satisfy the requirements of  Art. 14 of the Constitution.

4

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 10  

To appreciate this submission made on behalf of the  respon- dents,  certain features of the Act have to be examined  and their implication taken into account.  Section 73A grants  a right  of  making a reference of an industrial  dispute  for arbitration  to the Industrial Court only to  "a  registered union  which is a representative of employees and  which  is also an approved union." Further, under the proviso to  that section, the reference cannot be made if the employer offers in  writing before the Conciliator to submit the dispute  to arbitration under the Act and the Union refuses to agree  to it.  Two other conditions attached are that the dispute must first  be submitted to the Conciliator and can  be  referred for  arbitration  to  the Industrial  Court  only  when  the Conciliator  certifies  that the dispute is not  capable  of being  settled by conciliation, and that no such dispute  is to  be referred if, under any provisions of the Act,  it  is required  to  be  referred  to  the  Labour  Court  for  its decision.    It  is  the  effect  of  all   these   detailed provisions,  laying down limitations for reference under  s. 73A, that requires examination. Under  s.  12  of the Act, the  Registrar  has  to  maintain registers of unions registered by him and a list of approved unions.  A Union is entitled to registration only if, during the whole of the period of three calendar months immediately preceding  the  calendar month in which it so  applies,  the membership  of the Union has been not less than 15 per  cent of  the total number of employees employed in the  industry, when  it  can be registered as a Representative  Union.   In case  there is no such Representative Union, a Union can  be also registered either as a Qualified Union or as a  Primary Union.   But  it is clear from the language of s.  73A  that only a Representative  Union has been given the right  under that section.  Further, section 73A requires that the  Union must  also be an approved Union, which means that the  Union must  comply with the requirements of s. 23 of the  Act  and have  its  name entered in the approved list.   Amongst  the conditions  required  to be complied with by a Union  to  be brought.  on the, approved list, the most important  is  one which  lays  down  that its rules must  provide  that  every industrial dispute, in which a settlement is not reached  by conciliation,   shall   be  offered  to  be   submitted   to arbitration, and that arbitration under Chapter XI shall not be refused by it in any dispute.  It will thus be seen  that the  right of making reference under s. 73A is only  granted to  a  Union which is registered as a  Representative  Union and,  being on approved list, has already made rules  laying down that the Union shall offer every industrial dispute for submission   to  arbitration  and  will  also   not   refuse arbitration of any dispute if the employers offer to  submit the  dispute  for arbitration under Chapter XI of  the  Act. Section  66 makes provision for submission of an  industrial dispute  for arbitration.  Sub-s. (1) of that section  gives the power to make a  441 reference to any person chosen by agreement by the disputing parties,  while  sub-s’  (2)  gives  the  option  that   the submission of the dispute may be made to the arbitration  of a Labour Court or the Industrial Court.  Further, sub-s. (5) of  s.  58  requires that before  closing  the  conciliation proceedings before him, the Conciliator shall ascertain from the  parties whether they are willing to submit the  dispute to. arbitration.  These disputes, to which these  provisions apply,  can  only  be  those  not  relating  to  matters  in Schedules I and III, because, under sub-s. (1) of s. 42, and employer  is given the right to give a notice of  change  in

5

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 10  

respect  of any industrial matter specified in Schedule  11, while, under sub-s. (2) of s. 42, the employee is granted  a similar’.  right to give a notice if a change is desired  in respect of an industrial matter not specified in Schedule  I or Ill.  In respect of matters covered by Schedules    I and 111,  provision  is made in sub-s. (4) of s. 42  which  lays down  that  such  disputes are to be decided  by  making  an application  to the Labour Court; and, as we have  indicated earlier,  s.  73A  does  not apply  to  disputes  which  are required  to be referred to a Labour Court.  The  result  of all  these provisions is that s. 73A of the Act  comes  into play only in cases where the dispute relates to matters  not contained  in  Schedules  I  and III,  the  dispute  is  not resolved by private agreement or by conciliation, and  there is  no submission of the dispute to arbitration under s.  66 of the Act. It is in this light that the provision which has to be  made by  the  Union  in  its  rules  under  s.  23(1)(v)  assumes importance.   Whenever  a  dispute is raised  either  by  an employer  or by a Union which can ultimately take  advantage of s. 73A; of the Act, the Union must invariably offer  that the  dispute  be  submitted  to  arbitration,  and,  in  the alternative, if the employer offers to submit the dispute to arbitration,  the Union must not refuse it.  The  result  is that in respect of any such dispute, the Union has no option but to offer or agree to arbitration of the dispute under s. 66  of  the  Act.   On the other  hand,  there  is  no  such limitation placed on the employer.  There is no provision in the  Act  making it compulsory for the  employer  either  to submit  the  dispute  to  arbitration or  to  agree  to  the submission of the dispute to arbitration when offered by the Union.    Consequently,  whenever  any  industrial   dispute arises,  the employer can always ensure arbitration of  that dispute  by making an offer to the Union under s. 66 of  the Act, whereupon the Union is compelled to agree to submission of  the dispute to arbitration.  Clearly,  therefore,  there was no need to make any Provision empowering the employer to make  a  reference  of the dispute for  arbitration  to  the Industrial  Court.   On the other hand, if a Union  wants  a dispute  to be settled and even offers that the  dispute  be submitted  to  arbitration  under  s. 66  of  the  Act,  the employer  can  refuse,  whereupon the Union  would  be  left without  any remedy.  It is obvious that s. 73A was  enacted to fill this gap and place the Union on parity with the 442 employer  so  as  to enable the Union to  have  any  dispute settled by arbitration even when the employer does not agree to  arbitration.  These provisions granting. the  rights  to the employers and the Union are, of course, in addition  to, and  without  prejudice  to,  the  provisions  contained  in sections  72  and  73  of the Act,  under  which  the  State Government  is  given  the power  to  refer  any  industrial dispute  between employees and employees, and employers  and employees  to  the  arbitration of a  Labour  Court  or  the Industrial Court on the basis of a report made by the Labour Officer, or even otherwise.  These provisions in sections 72 and  73  leave the discretion with the State  Government  to make  a reference in appropriate cases, so that neither  the employers  nor  the  employees can, as of  right,  obtain  a reference  under these sections from the  State  Government. So  far as they are concerned, the provisions  contained  in the Act require that the disputes between them must first go before  a  Conciliator for conciliation,  and  subsequently, either   party  can  exercise its  option  of  offering  the submission  of  the  dispute to  arbitration  when  such  an

6

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 10  

enquiry is made from them by the Conciliator under S.  58(5) of the Act.  Thereafter, if the offer is by an employer, the Union,  under its rules, is bound to accept the  submission, so  that  whenever  an employer desires that  a  dispute  be decided  by arbitration, the Union is compelled to agree  to it.   In the reverse case, when a Union wants submission  of the dispute to arbitration, the employer has discretion  not to  agree, and then only can the Union resort to S. 73A  and refer the dispute to the Industrial Court.  This section, in these  circumstances did not at all require that  the  right granted to the Union should also be granted to the employer. In  this connection, two other points were urged by  learned ,counsel for the appellants before us.  One was that,  under S.  66  of  the Act, the offer to  submit  the  dispute  for arbitration can be to any private individual also, and  this did not give the right to the employer to have it decided by an  Industrial Court so as to be equated with the  right  of the Union to have it decided by the Industrial Court. We  do not  think that the provision contained in S. 66 of the  Act places  the employer under any such handicap.  Under  sub-s. (2) of S. 66, the employer can straight away offer that  the dispute  be  referred to the arbitration of  the  Industrial Court,  and  thereupon  ’the Union would  be  debarred  from refusing to agree to that submission.  In any case, even  if the  Union  were  to  refuse  to  agree  to  it,  the  State Government will determine under s.71 of the Act whether  the dispute should be referred to the arbitration of the  Labour Court  or  the Industrial Court and refer it to  that  body. The  mere fact that the Union may not agree to .he offer  of the  employer to submit the dispute for arbitration  to  the Industrial  Court whereupon the State Government can  direct that  the  arbitration  be made by a  Labour  Court  or  the Industrial  Court  does  not,  in  our  opinion,  place  the employer in any disadvantageous position, and we do not  443 think,  therefore, that there was any requirement  that  the employer  should also be given a right corresponding to  the right of the Union under s. 13A of the Act. The  second point urged by the learned counsel was  that  if the  dispute  is  referred  to the  Industrial  Court  by  a submission  under  s.  66(2) of the  Act,  that  Court  will proceed to give its award in accordance with the  provisions of  the Arbitration Act, 1940 in view of s. 68 of  the  Act, while if the dispute is referred at the instance of a  Union under s.73A of the Act, the Industrial Court will deal  with it  as  a .judicial Tribunal and will give its  decision  in accordance with the regulations made under s. 92 of the Act. We   consider   that   this  submission  is   based   on   a misapprehension of the scope of s. 92 of the Act.  The rules and regulations made by the Industrial Court under s. 92 are to  govern  the  procedure of the Industrial  Court  in  all proceedings before it irrespective of the fact whether those proceedings  come  up before it by a reference made  by  the State  Government under. s, 72 or s. 73 of the Act, or by  a reference made by the Union under s. 73A of the Act, or by a joint  submission made by the parties under s. 66(2) of  the Act.   Section 68 of the Act is in very general  terms,  and lays down that proceedings in arbitration under the whole of the  Chapter XI are to be in accordance with the  provisions of  the  Arbitration Act, 1940, in. so far as  they  may  be applicable.   The  provisions of the Arbitration  Act  have, therefore, been made -applicable not only to arbitrations by submission under s. 66 of the Act, but also to  arbitrations on references made by the State Government under s. 72 or s. 73  or a reference made by a Union under s. 73A of the  Act.

7

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 10  

If  the  submission or the reference happens to  be  to  the Industrial Court, that Court must follow the and regulations made  under s.92, and the provisions of the Arbitration  Act will only apply insofar as they may be applicable in view of those  rules  and  regulations.   Consequently,  whether   a dispute is referred for arbitration to the Industrial  Court by  submission under s. 66(2) of the Act, or by a  reference under  s. 73A of the Act, that Court has to proceed  in  the same identical manner and the parties seeking the  reference obtain   the   award   in   both   cases   under   identical circumstances. In  this connection, the regulations made by the  Industrial Court, known as the Industrial Court Regulations, 1947  were brought to our notice.  A perusal of these regulations shows that, in the matter of procedure of the Industrial Court for dealing  with arbitrations made by submissions under s.  66, or  by references under other sections, there is  uniformity and  no distinction is made between references  under  these different  sections.   The Industrial Court is  required  to proceed  in  the same manner in all cases and  to  give  its decision under s. 87 of the Act.  It is significant that  s. 87,  defining  the  duties of  the  Industrial  Court,  uses identical  language  in respect of all arbitrations  by  the Industrial Court; under clause (v) the duty 444 of  the  Industrial  Court  is laid down  to  be  to  decide industrial  disputes  referred  to  it  in  accordance  with submissions  registered under S. 66 which provide  for  such reference  to the Industrial Court, and under  clause  (vi), the duty of the Industrial Court is similarly defined to  be to decide industrial disputes referred to it under  sections 71, 72, 73 or 73A.  The’ Industrial Court, in all cases,  is required  to give a decision on the dispute, and  hence,  in all these proceedings, the parties have identical rights  in the matter of procedure of the Industrial Court of,  hearing and  of obtaining a decision from it.  This makes  it  clear that  s. 73A of the Act was required only to fill up  a  gap which  would have existed, leaving no remedy to a  Union  to obtain  arbitration  of a dispute if the employers  did  not agree  to  that arbitration, and that no similar  right  was required  to  be conferred on the employers who,  under  the other provisions of the Act, could always obtain a reference of  the dispute to arbitration by making a submission  under s.  66  which the Union -was bound to agree to.   The  first point raised on behalf of the appellants has, therefore,  no force and s. 73A of the Act cannot be held to be invalid. On the second question, it has rightly been urged on  behalf of the appellants that the Act was not applied by the  State Government to the industries run by the appellants,  whether generally  or  by specifying any local area by  issue  of  a notification under sub-s. (4) of s. 2 of the Act.  On behalf of the respondents, reliance was placed on sub-s. (3) of  s. 2  for  urging  that  the  Act  became  applicable  to   the industries  run  by  the  appellants,  because  the   Bombay Industrial  Disputes Act, 1938 (hereinafter referred  to  as "the  Bombay Act of 1938") was in force in these  industries immediately before the commencement of the Act. Admittedly,  the Bombay Act of 1938 was made  applicable  to the entire cotton industry throughout the Province of Bombay by various notifications issued in the year 1939 under  that Act by the then Provincial Government.  Ahmedabad, where the industries  of the appellants are situated, was then a  part of the Province of Bombay.  The Bombay Act of 1938 was never entirely repealed.  However, the Central Government  enacted the  Industrial Disputes Act No. 14 of 1947  which  received

8

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 10  

the assent of the Governor General on 17th March, 1947, a id was  brought  into force from April 1, 1947.  This  Act  did not,  in  terms,  repeal the Bombay Act  of  1938,  but  the contention  on behalf of the appellants is that  the  Bombay Act  of 1938 and the Central Industrial Disputes  Act,  1947 both  covered  the same field of  industrial  disputes,  and consequently, it should be held that the Bombay Act of  1938 became void on the ground of repugnancy with the  Industrial Disputes  Act, 1947 under sub-s. (1) of section 107  of  the Government of India Act, 1935.  It was urged that the Bombay Act  of  1938 as well as the Industrial Disputes  Act,  1947 were both enacted under the power conferred on  445 the  Bombay  Legislature and the Central  Legislature  under item 29 of Part 11 of the Concurrent List III of the Seventh Schedule  to  the  Government  of  India  Act,  1935.    The principle  relied  upon by the appellants is  that,  if  two pieces  of legislation cover the same field and each one  of them contains a complete code making detailed provision  for all  aspects  of  the  subject-matter  of  the  legislation, repugnancy  must be held to arise, even though one  Act  may not,  in  terms,  repeal the other and  may  not  correspond section  by  section with the other.   For  this  principle, reliance  was placed on the tests enumerated by Nicholas  in his  Australian  Constitution,  2nd  Edition,  p.  303,   to determine  inconsistency or repugnancy between a  State  law and  a Commonwealth law in Australia.  The three tests  were enumerated as follows:-               "(1) There may be inconsistency in the  actual               terms of the competing statutes;               (2)   Though there may be no direct  conflict,               a  State  law may be inoperative  because  the               Commonwealth   law,  or  the  award   of   the               Commonwealth  Court,  is  intended  to  be   a               complete exhaustive code; and               (3)   Even  in  the absence  of  intention,  a               conflict   may  arise  when  both  State   and               Commonwealth  seek  to exercise  their  powers               over the same subject matter." This  principle was deduced from the decisions in  Ex  Parte McLean(1)  and  the State of Victoria and  Others  ’V.   The Commonwealth of Australia and OtherS(2).  Reliance was  also placed  on decisions of this Court in Zaverbhai  Amaidas  v. The State of Bombay(3), Ch.  Tika Ramji & Ors. v. The  state of  Uttar Pradesh & Ors.(4) and Deep Chand v. The  State  of Uttar  Pradesh and Others(5).  In the last of  these  cases, after  quoting from Nicholas, this Court  held:  ’Repugnancy between two statutes may thus be ascertained on the basis of the following three principles:-               (1)   Whether there is direct conflict between               the two provisions;               (2)   Whether Parliament intended to lay  down               an  exhaustive code in respect of the  subject               matter   replacing  the  Act  of   the   State               Legislature; and               (3)   Whether  the law made by Parliament  and               the  law made by the State Legislature  occupy               the same field."               (1)   43 C.L.R. 472.               (3)   [1955] 1 S.C.R. 799.                (5) (1959] Supp. 2 S.C.R. 8.               (2)   58 C.L.R. 618.               (4)   (1956] 1 S. C. R. 393.               446 Relying  on  these principles, it has been  urged  that  the

9

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 10  

Industrial  Disputes  Act,  1947 intended  to  lay  down  an exhaustive  code in respect of settlement of all  industrial disputes,  and since the Bombay Act of 1938 was also on  the same subject, it must be presumed that the two statutes  are repugnant,  so that the Bombay Act of 1938 became void  with effect  from  1st April, 1947 when the  Industrial  Disputes Act,  1947 came into force.  It has, however,  been  rightly pointed  out by the High Court in the judgment under  appeal that the Bombay Act of 1938 did not confine itself  entirely to  the  subject  of  settlement  of  industrial   disputes. Chapter  V of that Act, containing sections 26 to  33  deals with  a  matter  which  is not  covered  by  the  Industrial Disputes Act, 1947 at all.  These sections of the Bombay Act of  1938  lay. down the procedure for  prescribing  Standing Orders -regulating the relations between an employer and his employees, and for making changes therein.  The  prescribing of the Standing Orders and making of changes in them may not involve  any  industrial dispute at all.  In  fact,  at  the first  stage,  when  Standing  Orders  are  prescribed,   no question  would  arise of any industrial  dispute  requiring settlement.   The  Industrial Disputes Act,  1947,  did  not contain  any provisions at all dealing with this subject  of prescribing  Standing  Orders and  making  changes  therein. Consequently,  even if the submission made on behalf of  the appellants  be  accepted that the Industrial  Disputes  Act, 1947,  is an exhaustive code dealing with the  question  of, settlement of industrial disputes, only those provisions  of the Bombay Act of 1938 can be held to be repugnant and  void on account of the repugnancy which also dealt with the  same subject  matter of settlement of industrial  disputes.   The provisions  contained  in Chapter V of that Act,  which  had nothing to do with  settlement of industrial disputes, could not, therefore, be affected   by   the  enactment   of   the Industrial Disputes Act, 1947, and hence,    the enforcement of the Industrial Disputes Act, 1947 did not in   any    way affect  the applicability of the provisions of Chapter V  of the  Bombay  Act  of  1938  to  the  industry  run  by   the appellants.  To the extent that Bombay Act of 1938 contained these   provisions  in  Chapter  V,  that  Act,   therefore, continued  in  force  and also continued  to  apply  to  the industries  now  in question.  It was also  urged  that  the Industrial Disputes Act, 1947 did  not, similarly, make  any provision  for  arbitration  of  industrial  disputes   and, consequently,  the  provisions of the Bombay  Act  of  1938, relating to arbitration of industrial disputes, could not be held to have become invalid.  It is not necessary to examine this further question in view of our decision that at 1 east the  provisions  of  Chapter V of the  Bombay  Act  of  1938 continued  in force.  That Act did not stand repealed  as  a whole; at best, only a part of that Act can be held to  have ceased  to be effective because of the repugnancy  with  the Industrial  Disputes Act, 1947.  But, while another part  of that  Act continued to be in force, the Bombay Act  of  1938 also  continued to be applicable to the cotton  industry  in Ahmedabad 447 with  which  we are concerned.  When the  Bombay  Industrial Relations Act, 1946 came into force on 29th September, 1947, therefore,  the Bombay Act of 1938 was applicable  to  these industries, and consequently, under sub-s. (3) of section  2 of  the Act, the Act became applicable to the  industry’  of the appellants and did not require a notification under sub- s.  (4) of s. 2 to make it applicable.  This point was  also therefore,  rightly decided against the appellants, and  the judgment  of the High Court must be upheld.  The appeal  is,

10

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 10  

therefore, dismissed with costs. G. C.              Appeal dismissed- 448