Notification Allowing Old Tribunals to Function Until New Ones Are Established Deemed Legal and Necessary
In a significant ruling, the Kerala High Court has dismissed a writ petition challenging the legality of a government notification allowing existing Labour Courts and Tribunals to continue adjudicating disputes under the new Industrial Relations Code, 2020. The petitioners argued that the notification was ultra vires to the new code, contending that the continuation of old tribunals contradicted the provisions of the 2020 Code, which calls for newly constituted tribunals.
The court, presided by Justice Gopinath P., examined the provisions of Section 103 of the Industrial Relations Code, 2020, which allows the Central Government to issue orders to remove difficulties in implementing the Code, provided they are not inconsistent with its provisions. The court found that the notification in question did not sidestep statutory provisions but instead ensured that adjudicatory mechanisms remain uninterrupted until new tribunals are established, thereby preventing a legal stalemate.
Justice Gopinath P. cited previous judicial precedents, including the cases of Gammon India Ltd. v. Union of India and Bengal Iron Corpn. v. CTO, which affirm the necessity and scope of 'removal of difficulties' clauses in legislative frameworks. The court also noted that similar views were upheld by the Delhi and Madras High Courts, which found no illegality in the continuation of existing tribunals until the new ones are operational.
The court further emphasized the procedural safeguards embedded within Section 103, such as the requirement for orders made under this section to be laid before Parliament and the three-year limitation on exercising this power. These measures ensure legislative oversight and prevent misuse of executive authority.
In conclusion, the Kerala High Court's decision reaffirms the legal validity of the contested notification, supporting the uninterrupted functioning of Labour Courts and Tribunals to uphold industrial harmony during the transitional phase of implementing the Industrial Relations Code, 2020.
Bottom Line:
Industrial Relations Code, 2020 - Notification issued by the Central Government under Section 103 of the Code allowing existing Labour Courts and Tribunals to continue adjudicating disputes until new Tribunals are constituted under the Code is not ultra vires or inconsistent with the provisions of the Code.
Statutory provision(s): Industrial Relations Code, 2020 - Section 103, Section 44(7), Section 51(1)
M.K. Suresh Kumar, NM v. Union of India, (Kerala) : Law Finder Doc id # 2856034
