it Petition No 16226 29 and of 1984
Under Article 32 of the Constitution of India A K Goel for the Petitioners
Harbans Lal Ashok Grover OP Sharma RN Poddar and CV Subba Rao for the Respondents
The Judgment of the Court was delivered by DESAI J
In this group of writ petitions the only point of law canvassed is whether the appropriate Government was justified in declining to make a reference of an industrial dispute arising out of the termination of service of each of the petitioners for adjudication to Industrial
TribunalLabour Court under Sec
10 of the industrial Disputes Act 1947
Writ Petition Nos
16256 2984 Four petitioners were the workmen employed by the second respondent Hyderabad Asbestos Cement Production Ltd  employer  for short
The employer on April 11 1983 issued charge sheet in identical terms to all the four petitioners calling upon them to show cause within 48 hours of the receipt of the charge sheet as to why suitable disciplinary action should not be taken against each of them
The charge sheet referred to an incident that occurred on 11th April 1983 at 815 A M between two groups of workers presumably owing loyalty to rival unions
The misconduct alleged 689 against each petitioner was the one set out in Standing Order 20 XV and 20XXV of the Certified Standing Orders of the employer
Briefly stated the charges were that the petitioners were guilty of fighting or riotous or disorderly behavior as also manhandling beating etc
Other workmen of the Company which acts were subversive of the discipline expected of the workmen of the Company
It is alleged that disciplinary enquiry followed and the enquiry officer submitted his report holding each of the petitioners guilty of the misconduct imputed against him
The Assistant Vice President of the employer Company after having gone through the report submitted by the enquiry officer and after perusal of the record of proceedings of enquiry and the connected documents concurred with the findings recorded and reported by the enquiry officer holding the petitioners guilty of charges
After taking into consideration various relevant circumstances including the past record of the workmen each of the petitioners was dismissed from the employment of the employer
It may be mentioned that during the pendency of the enquiry all the petitioners had been put under suspension and while dismissing the petitioners the period of suspension was treated as absence without leave
The petitioners raised an industrial dispute as per notice dated May 12 1984 calling upon the employer to reinstate them with backwages and treat them in service without a break
Copies of the notice were also served upon the authorities in the Labour Department of the Haryana Government
The Labour cum Conciliation Officer held conciliation proceedings and submitted a failure report on June 30 1984
The second respondent the State of Haryana after taking into consideration the report of the Conciliation Officer by its order dated September l 1984 declined to make a reference on the ground that the Government does not consider the case to be fit for reference for adjudication to the Tribunal as it has been learnt that the services of the petitioners were terminated only after charges against them were proved in a domestic enquiry  The present writ petition is filed questioning the correctness and validity of this order
Writ Petition No 1641884 Petitioner SK Sharma was at the relevant time employed as Electrical Fitter in the Diesel Shed at Tuglakabad
He was Assistant Secretary of the Uttar Railway Karamchari Union Diesel Shed Branch
He was also a member of the Canteen Committee
On August 2 1981 the petitioner went to the Canteen according to him in his capacity as the member of 690 the Canteen Committee to enquire about the working of the Can teen
On Shri Gurbachan Singh a Foreman marked the petitioner absent from duty and made an entry indicating that the petitioner had absented himself from duty and gave a direction that the petitioner should not be allowed to join duty without his permission
On the next day ie August 3 1981 when the petitioner reported for duty token was not issued to him by the Time Keeper and he was informed that the token could not be issued to him until he brought a slip from Foreman Shri Gurbachan Singh
As the latter was not on duty on that day petitioner and 10 other workmen who too had been marked absent went to the residence of the Foreman Shri Gurbachan Singh and enquired from him why they were not permitted to join duty Shri Gurbachan Singh declined to have given any direction in this behalf and rebuked the petitioners for coming to his residence and accused them of misbehavior
The petitioner and several others then approached the General Foreman who intervened and ordered the petitioner and others to join duty
Gurbachan Singh thereafter lodged a con plaint with the third respondent Senior Divisional Mechanical Engineer alleging that the petitioner has misbehaved with him and had attempted to manhandle him
On receipt of this report from Gurbachan Singh Petitioner was placed under suspension on August 5 1981 and was served with a charge sheet
The petitioner denied the imputation disciplinary enquiry followed
Surprisingly the enquiry officer Senior Local Inspector Shri Joginder Lal did not record the statement of Shri Gurbachan Singh who was the prime witness but examined two other witnesses who claimed to be the neighbourers of Shri Gurbachan Singh
The enquiry officer submitted his report dated October 24 1981 holding the petitioner guilty of misconduct
On the basis of the report 4th respondent exercising powers under Rule 6 of the Railway Servants Discipline and Appeal Rules 1968 imposed punishment of removal from service on the petitioner
After an unsuccessful appeal to the Divisional Mechanical Engineer the Uttar Railway Karamchari Union espoused the cause of the petitioner and raised an industrial dispute contending that the order imposing punishment of removal from service was illegal and invalid
Central Labour Commissioner pursuant to the application from the Union dated may 29 1982 held conciliation proceedings in which the respondents did not participate
Consequently a failure report was submitted
The appropriate Government being the Central 691 Government as permits order dated December 1983 rejected the request for a reference under Sec
10 of the on the ground that the penalty of removal from service was imposed on the workmen on the basis of enquiry held in accordance with the procedure laid down in the Railway Servants Discipline and Appeal Rules 1968 and that the action of the management in imposing the penalty of removal from service is neither malafide nor unjustified and therefore the appropriate Government does not consider it necessary to refer the dispute to an Industrial Tribunal for adjudication  It is this order which is challenged in this writ petition
The neat and narrow question of law raised in these two writ petitions can be formulated thus y whether the appropriate Government in each case was justified in refusing to make a reference on the grounds mentioned in each order more specifically that as the punishment was imposed after an enquiry held in accordance with the rules and on the report of the enquiry officer it is not a fit case for making the reference
In other words the question of law is what are the parameters of power of the appropriate Government under Sec
10 while making or refusing to make a reference to an industrial tribunal for adjudication of an industrial dispute
The first question to be posed is whether while exercising the power conferred by Sec 10 to refer an industrial dispute to a Tribunal for adjudication the appropriate Government is discharging an administrative function or a quasi judicial function
This is no more res integra
In State of Madras vs CP Sarathy  Anr1 a Constitution Bench of this Court observed as under But it must be remembered that in making a reference under Sec
101 the Government is doing an administrative act and the fact that it has to form an opinion as to the factual existence of an industrial dispute as a preliminary step to the discharge of its function does not make it any the less administrative in character
The Court can not therefore canvass the order of reference closely to see if there was any material before the Government to support its conclusion as if it was a judicial or quasi judicial determination 1 at 347
692 Explaining the ratio of the decision in Sarathy s case1 in Western India Match Co Ltd vs Western India March Co Workers Union  Ors2 it was observed as under In the State of Madras vs CP Sarathy1  this Court held on construction of section 101 of the Central Act that the function of the appropriate Government thereunder is an administrative function
It was so held presumably because the Government cannot go into the merits of the dispute its function being only to refer such a dispute for ad jurisdiction so that the industrial relations between the employer and his employees may not continue to remain disturbed and the dispute may be resolved through a judicial process as speedily as possible Emphasis supplied 1 After referring to the earlier decisions on the subject in Shambhu Nath Goel vs Bank of Baroda Jullundur 2 it was held that in making a reference under Sec
101 the appropriate Government is doing an administrative act and the fact that it has to form an opinion as to the factual existence of an industrial dispute as a preliminary step to the discharge of its function does not make it any the less administrative in character
Thus there is a considerable body of the judicial opinion that while exercising power of making a reference under Sec
101 the appropriate Government performs an administrative act and not a judicial or quasi judicial act The view that while exercising power under Sec
101 the Government performs administrative function can be supported by an alternative line of reasoning Assuming that making or refusing to make a reference under Sec
101 is a quasi judicial function there is bound to be a conflict of jurisdiction if the reference is ultimately made
A quasi judicial function is to some extent an adjudicatory function in a list between two contending parties The Government as an umpire assuming that it is performing a quasi 1 2 693 judicial function when it proceeds to make a reference would imply that the quasi judicial determination of lis prima facie show that one who raised the dispute has established merits of the dispute
The inference necessarily follows from the assumption that the function performed under Sec 111 is a quasi judicial function
Now by exercising power under Sec 10 a reference is made to a Tribunal for adjudication and the Tribunal comes to the conclusion that there was no merit in the dispute Prima facie a conflict of jurisdiction may emerge
Therefore the view that while exercising power under Sec
101 the function performed by the appropriate Government is an administrative function and not a judicial or quasi judicial function is beyond the pale of controversy
Now if the Government performs an administrative act while either making or refusing to make a reference under Sec
101 it cannot delve into the merits of the dispute and take upon itself the determination of its
That would certainly be in excess of the power conferred by Sec 10
Section 10 requires the appropriate Government to be satisfied that an industrial dispute exists or is apprehended
This may permit the appropriate Government to determine prima facie whether an industrial dispute exists or the claim is frivolous or bogus or put forth for extraneous and irrelevant reasons not for justices or industrial peace and harmony
Every administrative determination must be based on grounds relevant and germane to the exercise of power
If the administrative determination is based on the irrelevant extraneous or grounds not germane to the exercise of power it is liable to be questioned in exercise of the power of judicial review
In State of Bombay vs K P Krishnan and Ors1 it was held that a writ of mandamus would lie against the Government if the order passed by it under Sec
101 is based or induced by reasons as given by the Government are extraneous irrelevant and not germane to the determination
In Such a situation the Court would be justified in issuing a writ of mandamus even in respect of an administrative order
Maybe the Court may not issue writ of mandamus directing the Government to make a reference but the Court can after examining the reasons given by the appropriate Government for refusing to make a reference at 243
694 come to a conclusion that they are irrelevant extraneous or not germane to the determination and then can direct the Government to reconsider the matter
This legal position appears to be beyond the pale of controversy
Accordingly it is necessary to examine the reasons given by the Government to ascertain whether the determination of the Government was based on relevant considerations or irrelevant extraneous or considerations not germane to the determination
Re Writ Petition Nos
16226 2984 The reasons assigned by the Government for refusing to make a reference are to be called out from the letter Annexure A dated September 1 1984 sent by the Joint Secretary Haryana Government Labour Department to the petitioners It is stated in the letter that the Govt
does not consider your case to be fit for reference for adjudication to the Tribunal as it has been learnt that your services were terminated only after charges against you were proved in a domestic enquiry
 The assumption underlying the reasons assigned by the Government are that the enquiry was consistent with the rules and the standing orders that it was fair and just and that there was unbiased determination and the punishment was commensurate with the gravity of the misconduct
The last aspect has assumed considerable importance after the introduction of Section 11A in the Industrial disputes Act by Industrial Disputes Amendment Act 1971 with effect from December 15 1971
It confers power on the Tribunal not only to examine the order of discharge or dismissal on merits as also to determine whether the punishment was commensurate with the gravity of the misconduct charged
In other words Sec
11A confers power on the Tribunal Labour Court to examine the case of the workmen whose service has been terminated either by discharge or dismissal qualitatively in the matter of nature of enquiry and quantitatively in the matter of adequacy or otherwise of punishment
The workmen questioned the legality and validity of the enquiry which aspect the Tribunal in a quasi judicial determination was required to examine bare statement that a domes tic enquiry was held in which charges were held to be proved if it is considered sufficient for not exercising power of making a reference under Sec
101 almost all cases of termination of services cannot go before the Tribunal
And it would render Sec
2A of 695 the Act denuded of all its content and meaning
The reasons given by the Government would show that the Government examined the relevant papers of enquiry and the Government was satisfied that it was legally valid and that there was sufficient and adequate evidence to hold the charges proved
It would further appear that the Government was satisfied that the enquiry was not biased against the workmen and the punishment was commensurate with the gravity 13 of the misconduct charged
All these relevant and vital aspects have to be examined by the Industrial Tribunal while adjudicating upon the reference made to it
In other words the reasons given by the Government would tantamount to adjudication which is impermissible
That is the function of the Tribunal and the Government cannot arrogate to itself that function
Therefore if the grounds on which or the reasons for which the Government declined to make a reference under Sec 10 are irrelevant extraneous or not germane to the determination it is well settled that the party aggrieved there would be entitled to move the Court for a writ of mandamus
See Bombay Union of Journalists  Ors
vs The State of Bombay  Anr1 It is equally well settled that where the Government purports to give reasons which tantamount to adjudication and refuses to make a reference the appropriate Government could be said to have acted on extraneous irrelevant grounds or grounds not germane to the determination and a writ of mandamus would lie calling upon the Government to reconsider its decision
In this case a clear case for grant of writ of mandamus is made out
Writ Petition No 1641884 The appropriate Government being the Central Government in this case declined to make a reference as per its order dated December 9 1983 in which it is stated that the action of the management in imposing on the workmen penalty of removal from service on the basis of an enquiry and in accordance with the procedure laid down in the Railway Servants Discipline  Appeal Rules 1968 is neither malafide nor unjustified
The appropriate Government does not consider it necessary to refer the dispute to the industrial Tribunal for adjudication  Ex facie it would appear that the Government acted on extraneous and irrelevant considerations and the reasons here in before mentioned will mutatis mutandis apply in respect of present order of the Government under challenge
Therefore for the same reasons a writ of mandamus must be issued
1  696 Accordingly all the writ petitions are allowed and the rule is made absolute in each case
Let a writ of mandamus be issued directing the appropriate Government in each case namely the State of Haryana in the first mentioned group of petitions and the Central Government in the second petition to reconsider its decision and to exercise power under Sec 10 on relevant and considerations germane to the decision
In other words a clear case of reference under Sec
101 in each case is made out
We order accordingly
Respondent No 2 Hyderabad Asbestos Cement Products Limited in WP Nos
16226 29 of 1984 shall pay the costs which is quantified at Rs 2000 to the petitioners within four weeks from today
There will be no order as to costs in WP No 1641884
MLA petitions allowed


Summary:
In all the writ petitions the petitioners were dismissed from service on the ground of misconduct after an enquiry held against each of them
They raised an industrial dispute contending that the orders imposing punishment of removal were illegal and invalid
The conciliation proceedings also failed
the State Government in WPs
16226 29 of 1984 and the Central Government in WP No 16418 of 1984 passed identical orders in each case refusing to make a reference to the Tribunal section 101 of the Industrial Disputes Act 1917 holding that the punishment was imposed on the petitioners after an enquiry has been held in accordance with the rules and that the removal from service is neither malafide nor unjustified and therefore it was not a fit case for making the reference
Hence this writ petitions
Allowing the petitions  HELD Ii In making a reference section 101 the appropriate government performs an administrative act and not a judicial or quasi judicial act and the fact that it has to form an opinion as to the factual existence of an industrial dispute 15 a preliminary step to the discharge of its function does not make it any the less administrative in character
Assuming that making or refusing to make a reference under Sec
101 is a quasi judicial function there is 687 bound to be a conflict of jurisdiction if the reference is ultimately made
A quasi judicial function is to some extent an adjudicatory function in a list between two contending parties
The Government as an umpire assuming that it is performing a quasi judicial function when it proceeds to make a reference
would imply that the quasi judicial determination of this prima facie shows that one who raised the dispute has established merits of the dispute
The inference necessarily follows from the assumption that the function performed under Sec
101 is a quasi judicial function
Now by exercising power under Sec 10 a reference is made to a Tribunal for adjudication and the Tribunal comes to the conclusion that there was no merit in the dispute prima facie a conflict of jurisdiction may emerge
Therefore the view that while exercising power under sec
10I the function performed by the appropriate Government is an administrative function and not a judicial or quasi judicial function is beyond the pale of controversy
692F H 693A C C State of Madras v CP Sarathy  Anr at 347 Western India Match Co Ltd v Western India Match Co Workers Union  Ors and Sambu Nath Goyal v Bank of Baroda Jullundur  followed 2 Every administrative determination must be based on grounds relevant and germace to the exercise of power
If the administrative determination is based on the irrelevant extraneous or grounds not germane to the exercise of power it is liable to be questioned in exercise of the power of judicial review
In such a situation the court would be justified in issuing a writ of mandamus even in respect of an administrative order
Maybe the court may not issue writ of mandamus directing the Government to make a reference but the court can after examining the reasons given by the appropriate Government for refusing to make a reference come to a conclusion that they are irrelevant
extraneous or not germane to the determination and then can direct the Government to reconsider the matter
693F H 694A 3 In the instant cases the workmen questioned the legality and validity of the enquiry which aspect the Tribunal in a quasi judicial determination was required to examine
A bare statement that a domestic enquiry was held in which charges were held to be proved if it is considered sufficient for not exercising power of making a reference under Sec
101 almost all cases of termination of services cannot go before the Tribunal
And it would render Sec
2A of the Act denuded of all its content and meaning
The reasons given by the appropriate
Government in each case would show that the Government examined the relevant papers of enquiry and the Government was satisfied that it was legally valid an that there was sufficient and adequate evidence to hold the charges proved
It would further appear that the appropriate Government in each case was satisfied that the enquiry was not biased against the workmen and the punishment was commensurate with the gravity of the misconduct charged
All these relevant and vital aspects have to be examined by the Industrial Tribunal while adjudicating upon the reference made to it
688 In other words the reasons given by he Government would tantamount to adjudication which is impermissible
that is the function of the Tribunal and the Government cannot arrogate to itself that function
Therefore if the grounds on which or the reasons for which the Government declined to make a reference under Sec 10 are irrelevant
extraneous or not germane to the determination it is well settled that the party aggrieved thereby would be entitled to move the Court for a writ of mandamus
Accordingly all the writ petitions are allowed directing the appropriate government in each case to re
consider its decision and to exercise power section 10 on relevant and considerations germane to the decision
In other words a clear case for reference uss101 in each case is made out
694G H695A D 695A 696 AB State of Bombay v KP Krishnan  Ors 1971 I SCR 227 at 243 and hay Union of Journalists  Ors v State of Bombay