Court rules that strike bans under Industrial Disputes Act apply to all employees, not just workmen.
In a significant ruling, the Kerala High Court has clarified the scope of the Industrial Disputes Act, 1947, reinforcing the prohibition of strikes and lockouts by all employees, including non-workmen, in Public Utility Services (PUS). The judgment, delivered by a Division Bench comprising Justices Sushrut Arvind Dharmadhikari and Syam Kumar V.M., overturns a previous decision by a Single Judge who had quashed notices regarding conciliation proceedings initiated by the Federal Bank Ltd.
The case revolved around the interpretation of Section 22 of the Industrial Disputes Act, which places a statutory embargo on strikes and lockouts by "any person" employed in a PUS. The appellants, Federal Bank Ltd., contested the Single Judge's verdict, which had exempted officers of the bank—members of the Federal Bank Officers Association—from this prohibition, arguing they did not qualify as "workmen" under the Act.
The Division Bench emphasized that the legislative intent behind the use of "any person" in Section 22 was to include all employees within the prohibition, not limiting it to workmen alone. This broader interpretation is crucial for maintaining the uninterrupted functioning of essential services like banking, which are vital to the national economy, especially post-COVID-19.
The Court also underscored that the initiation of conciliation proceedings is valid as soon as a strike call is made, regardless of the existence of an industrial dispute. This serves as a preventive measure against the escalation of strikes in PUS sectors.
Furthermore, the judgment reinforced that the right to form associations under Article 19(1)(c) of the Constitution does not extend to the right to strike, which remains subject to statutory regulation. The ruling draws on past Supreme Court judgments that have consistently held that strikes are not a fundamental right and can be regulated by law.
This decision is set to have significant implications for labor relations within the banking sector and other industries classified as Public Utility Services, ensuring a balance between employee rights and the public interest.
Bottom Line:
Industrial Disputes Act, 1947 - Section 22 - Prohibition of strikes and lockouts - The statutory embargo on strikes and lockouts applies not only to workmen but also to non-workmen employed in a Public Utility Service (PUS). Conciliation proceedings can be triggered by the employer upon a call for strike by employees, regardless of the existence of an industrial dispute.
Statutory provision(s): Industrial Disputes Act, 1947 - Section 22, Constitution of India, 1950 - Article 19(1)(c)
Federal Bank Ltd. v. Federal Bank Officers Association, (Kerala)(DB) : Law Finder Doc id # 2859996
