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    ADJUDICATION

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    Meaning

    Adjudication involves intervention in the

    dispute by a third party appointed by thegovernment for the purpose of decidingthe nature of final settlement.

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    Why??

    When the government gets a report of thefailure of conciliation, it has to decide

    whether it would be appropriate to refer

    the dispute to adjudication. Developing countries cant afford to suffer

    loss of production from long-drawn strikes

    and lockouts.

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    Why??

    Further, the trade union cannot rely only

    on collective bargaining for the protection

    of the interest of the workers.

    Therefore, the need for intervention by the

    government is felt. This, the government

    does by making references of disputes to

    the adjudication machinery

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    Socio-Economic Importance ofAdjudication

    It is always a matter of making reasonableadjustments between the two competing claims.So the claims of the interests of the generalpublic have to be weighed and balanced againstthe claims of the individual citizen in regard to

    his fundamental right. So, too, in the case of adjudication, the claims of

    the employer based on the freedom of contracthave to be adjusted with the claims of industrial

    employees for social justice."

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    Types of Adjudication

    When the government gets a report of thefailure of conciliation proceedings, it has to

    decide whether it would be appropriate to

    refer the dispute to arbitration. The reference of dispute to adjudication is

    at the discretion of the government.

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    Types of Adjudication

    When both parties, of their own accord,

    agree to refer the dispute to adjudication, it

    is obligatory on the part of the government

    to make a reference. When a reference toadjudication is made by the parties, it is

    called Voluntary Adjudication.

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    Types of Adjudication

    On the other hand, when reference is

    made to adjudication by the government

    without the consent of either or both the

    parties to the dispute, it is known asCompulsory Adjudication.

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    Three-Tier System ofAdjudication

    The Industrial Disputes Act, 1947 provides

    for a three-tier system of adjudication:

    (1) Labour Courts;

    (2) Industrial Tribunals; and

    (3) National Tribunals.

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    Three-Tier System ofAdjudication

    The Labour Courtsadjudicate upondisputes listed in Schedule II of the Act

    The Industrial Tribunalsadjudicate upondisputes listed in Schedule II or III of the

    Act.

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    Three-Tier System ofAdjudication

    The National Tribunalsadjudicate upondisputes which are of national importance,

    or when the dispute is of such a nature as

    to affect industrial establishments situated

    in more than one state.

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    LABOUR COURTS

    Constitution :

    A labour court shall consist of one persononly, who:

    (a) Is or has been a judge of a High Court; or

    (b) Has been, for a period of not less than 3years, a District Judge; or

    (c) Has held any judicial office in India for notless than 7 years.

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    LABOUR COURTS

    No person shall be appointed or continue

    in the office of the labour court if he is not

    an independent person, or if he has

    attained the age of 65.

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    LABOUR COURTS

    The duties of the labour court are:

    (i) To hold adjudication proceedingsexpeditiously; and

    (ii) Submit its award to the appropriategovernment as soon as practicable on the

    conclusion of the proceedings.

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    JurisdictionThe jurisdiction of labour courts extends

    to the adjudication of the followingdisputes relating to matters specified inthe Second Schedule:

    1. The propriety or legality of an orderpassed by an employer under theStanding Orders.

    2. The application and interpretation of

    Standing Orders.

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    3. Discharge or dismissal of workers,including reinstatement of, or grant of relief

    to, workers wrongfully dismissed.4. Withdrawal of any customary concession or

    privilege.

    5. Illegality or otherwise of a strike or lockout.6. All matters other than those specified in the

    Third Schedule of the Act (i.e., thosematters which are within the jurisdiction ofindustrial tribunals).

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    LABOUR COURTS

    The labour court has no power whatever

    except those powers which can be traced

    to a Statute, to a statutory rule or a

    statutory instrument. It has no supervisoryjurisdiction, i.e., it cannot act as a guardian

    of an industrial establishment.

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    LABOUR COURTS The jurisdiction of the labour court is

    circumscribed. It does not apply its mind tofind out if a different conclusion is possible.

    Its duty is to see whether the enquiry

    satisfies the principles of natural justice;whether there was material for the

    managements to act in the manner they did

    and whether their act was savoured of any

    malpractice or victimization.

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    LABOUR COURTS

    In the absence of such an indication exfacie inthe proceedings of the enquiryofficer, the labour court is normally

    expected to approve the decision of thedomestic enquiry and grant the permission

    asked for.

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    Ex facie, Latin for "on the face [of it]," is alegal term typically used to note that a

    document's explicit terms are defectivewithout further investigation.

    For example, a contract between two

    parties would be void if, ex facie, thedocument does not require party A to give

    consideration to party B for services

    rendered.

    http://en.wikipedia.org/wiki/Latinhttp://en.wikipedia.org/wiki/Considerationhttp://en.wikipedia.org/wiki/Considerationhttp://en.wikipedia.org/wiki/Latin
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    INDUSTRIAL TRIBUNALS

    The matters which are in the form of newdemands and give rise to industrial

    disputes which affect the working of a

    company or industry are usually referredto an industrial tribunal. The industrial

    tribunal may be appointed for a limited

    period on an ad hocbasis or permanently.

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    Constitution

    A tribunal shall consist of one or morepersons, such as

    a)Are or have been judge(s) of a High

    Court;(b)Are or have been District Judge(s) for a

    period of not less than 3 years;

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    Constitution

    (c) Hold or have held the office of thechairman or any other member of the

    Labour Appellate Tribunal or any tribunal

    for a period of not less than 2 years.

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    Although it is not a court, it has all the necessary

    attributes of a court of justice.

    It may create new obligations or modify contracts in

    the interest of industrial peace; protect legitimate

    trade union activities and prevent unfair practices

    and victimization.

    The tribunals are required to give awards based oncircumstances peculiar to each dispute; and

    they are, to a large extent, free from restrictions of

    technical consideration or rules of evidence

    imposed on courts.

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    Jurisdiction

    An industrial tribunal has a widerjurisdiction than labour courts. It has

    jurisdiction over any matter specified in the

    Second Schedule or Third Schedule. Thejurisdiction covers the promotion of social

    justice, that is, fairness in the adjudication

    proceedings to all concerned parties.

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    Third Schedule

    1) Wages, including the period and mode ofpayment.

    2) Compensatory and other allowances.

    3) Hours of work and rest intervals.4) Leave with wages and holidays.

    5) Bonus, profit-sharing, provident fund and

    gratuity.

    Thi d S h d l

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    Third Schedule6) Shift working, otherwise than in

    accordance with the standing orders.7) Classification of grades

    8) Rules of discipline.

    9) Rationalization.10)Retrenchment of workmen and closure of

    an establishment.

    11)Any other matter that may be prescribed.

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    Model Principles for Reference ofDisputes to Adjudication

    1. All disputes ordinarily be referred to

    adjudication on request.

    2. Disputes may not, however, be ordinarily

    referred to adjudication:

    (a) Unless efforts at conciliation have failedand there is no further scope for

    conciliation and the parties are notagreeable to arbitration;

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    (b) If there is a strike or lockout declaredillegal by a court, or a strike or lockoutresorted to without seeking settlement bymeans provided by law and without proper

    notice or in breach of the Code ofDiscipline as determined by the machineryset up for the purpose, unless such astrike or lockout, as the case may be, iscalled off;

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    Model Principles for Reference ofDisputes to Adjudication

    (c) If the issues involved are such as have

    been the subject matter of recent judicialdecisions or in respect of which an unduly

    long time has elapsed since the origin of

    the cause of action; and

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    Model Principles for Reference ofDisputes to Adjudication

    (d) If in respect of demands, other legalremedies are available, that is, matters

    covered by the Factories Act, Workmen'sCompensation Act, Minimum Wages Act,

    Payment of Wages Act, etc.

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    Model Principles for Reference ofDisputes to Adjudication

    3.Industrial disputes raised in regard to

    individual cases, that is, cases of

    dismissal, discharge or any other action of

    management on disciplinary grounds, maybe referred for adjudication when the

    legality or propriety of such action is

    questioned, and in particular:

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    (a) If there is a case of victimization orunfair labour practice;

    (b) If the Standing Orders in force or the

    principles of natural justice have notbeen followed; and

    (c) If the conciliation machinery reports

    that injustice has been done to theworker.

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    Model Principles for Reference ofDisputes to Adjudication

    Whenever an industrial dispute exists, or

    even where there is a mere apprehension

    that it will arise, the government may makea reference of the dispute for adjudication.

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    Model Principles for Reference ofDisputes to Adjudication

    The following principles regarding the powers

    of the government to make a reference of

    industrial disputes have been established by

    a series of judicial decisions:

    i. The government must be of the opinion that

    an industrial dispute actually exists or is

    apprehended;

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    ii. Making a reference is an executive and

    administrative act and not a judicial or

    quasi-judicial act. Government's order

    making a reference, therefore, cannotbe challenged on ground that the

    government has no material before it to

    come to the conclusion that the disputeexists;

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    iii. Expediency of making a reference isa matter entirely for the governmentto decide. Even if a dispute factuallyexists, the government may not

    make a reference. The governmentcannot be compelled by a court tomake a reference. Making of

    reference, thus, is not a duty or anobligation on the part of thegovernment but a matter ofdiscretion;

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    Model Principles for Reference ofDisputes to Adjudication

    iv. The government may refer the dispute or

    any matter appearing to be connected

    with or relevant to the dispute, whether it

    relates to any matter specified in theSecond Schedule or the Third Schedule,

    to a tribunal for adjudication;

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    v. Where the government is of the opinionthat any industrial dispute exists or isapprehended and that the disputeinvolves any question of national

    importance or is of such a nature thatindustrial establishments situated inmore than one state are likely to beinterested in or affected by it, it may

    refer the dispute for adjudication to theNational Tribunal- whether it relates toany matter specified in the Second orthe Third Schedule;

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    Model Principles for Reference ofDisputes to Adjudication

    vi. Where the dispute relates to any matter

    specified in the Third Schedule and is

    not likely to affect more than 100workers, the government may make a

    reference to a labour court;

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    Model Principles for Reference ofDisputes to Adjudication

    vii. It is mandatory upon the government to

    make a reference of disputes to courts or

    tribunals where:

    (a) the dispute relates to a public utilityservice;

    (b) a notice of strike or lockout has been

    given;

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    Model Principles for Reference ofDisputes to Adjudication

    (e) where the parties to the dispute apply inthe prescribed manner for a reference and

    the government is satisfied that the

    persons applying represent the majority of

    each party;

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    viii. The reference shall be made even if anyother proceeding has commenced; but

    this mandatory power is subject to two

    exceptions:

    (a) the notice has been frivolously orvexatiously given; or

    (b) it would be expedient to make areference.

    Model Principles for Reference of

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    Model Principles for Reference ofDisputes to Adjudication

    An order of reference passed by thegovernment can be challenged on the

    following grounds:

    (i) that the order is void ab initioor withoutjurisdiction;

    (ii) where the order of reference is made in

    bad faith or is mala fide;

    Ab I iti

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    Ab Initio

    [Latin, From the beginning; from the firstact; from the inception.] An agreement issaid to be "void ab initio" if it has at notime had any legal validity. A party may besaid to be a trespasser, an estate said to

    be good, an agreement or deed said to bevoid, or a marriage or act said to beunlawful, ab initio. Contrasted in this sensewith ex post facto, or with postea (after

    these or those (things), afterward.]

    Model Principles for Reference of

    http://www.answers.com/topic/voidhttp://www.answers.com/topic/void
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    Model Principles for Reference ofDisputes to Adjudication

    (iii) the appropriate government had nomaterial before it;

    (iv) it did not apply its mind to the materialbefore it;

    (v) it has not taken into consideration certainvital facts and materials which it ought to

    have taken into account.

    http://en.wikipedia.org/wiki/Latin
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    Ex facie, Latin for "on the face [of it]," is alegal term typically used to note that a

    document's explicit terms are defectivewithout further investigation. For example,

    a contract between two parties would be

    void if, ex facie, the document does notrequire party A to give consideration to

    party B for services rendered.

    http://en.wikipedia.org/wiki/Latinhttp://en.wikipedia.org/wiki/Considerationhttp://en.wikipedia.org/wiki/Considerationhttp://en.wikipedia.org/wiki/Latin
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    Ab Initio

    [Latin, From the beginning; from the first act;from the inception.] An agreement is said to be"void ab initio" if it has at no time had any legalvalidity. A party may be said to be a trespasser,an estate said to be good, an agreement ordeed said to be void, or a marriage or act said tobe unlawful, ab initio. Contrasted in this sensewith ex post facto, or with postea (afterthese orthose (things), afterward.]

    natural justice

    http://www.answers.com/topic/voidhttp://www.answers.com/topic/void
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    Definition English legal systemdoctrine that protects against

    arbitraryexercise ofpowerby ensuring fair play. Naturaljustice is based on two fundamental rules: (1) Audialteram partem (Latin for, hear the other side): noaccused, or a person directly affected by a decision,shall be condemned unless given full chance to prepareand submit his or her case and rebuttal to the opposingparty'sarguments; (2) Nemo judex in causa sua (Latin

    for, no man ajudge in his own case): no decision is validif it was influenced by any financial consideration orotherinterest orbias of the decision maker. Theseprinciples apply to decisions of all governmentalagencies and tribunals, andjudgments of all courts,which may be declared to be of having no effect (ultravires) if found in contravention of natural justice. Seealso natural law and natural rights.

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