High CourtsSingle Bench(2026) 10 CAL CK 0928

Bengal Chemicals and Pharmaceuticals Ltd. & Anr. vs The State Of West Bengal & Ors.

Calcutta High Court, Appellate Side · Decided on 12 October 2026

HON’BLE JUDGES
Shampa Dutt (Paul), J
RESULT
Dismissed
CASE NUMBER
WPA 5957 of 2015

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Judgment

42 paragraphs · 1,509 words

SHAMPA DUTT (PAUL), J.:-

1.

The writ application has been preferred being aggrieved by the award dated 25.08.2014 passed by the learned Seventh Industrial Tribunal, West Bengal in connection with Case No. VIII-200/02.

2.

Vide the impugned order the learned 7th Industrial Tribunal, Kolkata held as:-

„On close scrutiny of the materials on record including the reference I do not find the age of the concerned workmen. It can be safely presumed that the concerned workmen are able bodied persons and evidently they were terminated from service on and from 01.01.1999. Five (5) years have already rolled away. In absence of any evidence as regards employment in this intervening long period save and except the case of PW Sei Kesto Dey it can safely be said that they are not sitting idle and/or have some source of income. Of course, granting of back wages absolutely depends upon the facts an circumstances of the respective cases but unfortunately no evidence has been adduced a regards gainful employment from the end of the O.P. Company. In fact, there is no assertion on the part of the O.P. Management but just on presumption that they are in employment. I like to reiterate that on the basis of presumption already I have expressed my views that the remaining 20 workmen are not sitting idle and/or they have some source of income. Looking at its totality, I am of view that if I award @ 50% of the back wage. along with reinstatement of all the 21 workmen under reference save and except if the do not attained the age of superannuation just would be best served. Hence it is

Ordered

that the O.P. Management is directed to reinstate all the 21 concerned workmen under reference if they not attained their age of superannuation, within 60 days from the date of publication of this award and also to pay them back wages @ 50% per month from the date of their termination i.e. on 01.01.1999 till reinstatement.‟

3.

The learned Tribunal while deciding the dispute was considering the following issues:-

„This industrial dispute between M/s. Bengal Chemicals and Pharmaceuticals Ltd. (A Govt. of India Enterprise) in respect of their factory at 164 Maniktala Main Road, Kolkata 54 and their workmen represented by Bengal Chemicals and Pharmaceuticals Ltd. Workers Union (Reg. No. 20992), 77/2/1. Lenin Sarani, Kolkata 19 has been referred by the Govt. of West Bengal, Labour Department, vide G.O.No.554-L.R./IR/11L-200/02(pt), dated 07.05.2008, to this Tribunal for adjudication of the following issues:-

1.

Whether termination of services of Sri Abani Chanda and 20 other workmen as per list enclosed w.e.f 01.01.1999 is justified?

2.

What relief, if any, the workmen are entitled to?‟

4.

The writ petitioner company is admittedly a public sector enterprise under the administrative control of the Ministry of Chemical and Fertilizers, Government of India and is a Government company within the ambit of the Companies Act, 1956. Moreover, the company is wholly owned by the Government of India. Thus, there cannot be any ambiguity to contend that the Central Government is the “appropriate Government" apropos the writ petitioner company in terms of Section 2(a) of the Industrial Disputes Act, 1947.

5.

The Government of West Bengal was conferred with the concurrent jurisdiction apropos the writ petitioner company by dint of the Notification dated 3rd July 1998 issued by the Ministry of Labour, Government of India in exercise of powers conferred by Section 39 of the Industrial Disputes Act, 1947. Had such Notification not been issued, the Government of West Bengal could not ever have exercised jurisdiction apropos the writ petitioner company.

6.

However, such Notification dated 3rd July, 1998 was rescinded by the Central Government by issuance of the Notification dated 05.05.2008 in exercise of the statutory powers contemplated in the Industrial Disputes Act, 1947. The reference is dated 07.05.2008.

7.

Thus, there cannot be any ambiguity to contend that with effect from 5th May, 2008 the Government of West Bengal as well as the West Bengal Industrial Tribunal were bereft of any jurisdiction to take cognizance of, deal with and adjudicate purported disputes pertaining to the writ petitioner company. Hence, the award dated 25.08.2014 having been passed by the West Bengal Industrial Tribunal having no jurisdiction is a nullity.

8.

The West Bengal Industrial Tribunal resultantly became coram non judice with effect from 05.05.2008.

9.

This court decided the similar issue in the said writ application which was between Steel Authority of India Limited IISCO Steel Plant v. The State of West Bengal & Ors., decided on 18.08.2025, in WPA 20373 of 2008, wherein this Court held as follows:-

“25.

In the present case:-

1.

The present industrial dispute was validly referred to the Tribunal by the State Government vide Reference Order dated 18.04.2005, when the State Government was duly empowered to make such a reference.

2.

This power was vested in the State Government under Section 39 of the Industrial Disputes Act, 1947, by delegation from the Central Government vide a notification dated 3rd July, 1998.

3.

The reference is now pending before the Tribunal for adjudication.

4.

Subsequently, the Central Government issued Notification dated 5th May, 2008 rescinding the delegation of powers to the State Government.

26.

The competence of the referring authority is to be examined on the date of the reference, not on later developments. On the date of reference, the State Government was the "appropriate government" by virtue of delegation under Section 39 of the I.D. Act and therefore the reference was lawfully made.

27.

Once a valid reference is made, the referring government becomes functus officio, it cannot cancel or withdraw the reference.

28.

In State of Bihar v. D.N. Ganguly, AIR 1958 SC 1018, the Supreme Court was of the view that:-

“Section 10(1) of the Industrial Disputes Act, 1947, does not confer on the appropriate Government the power to cancel or supersede a reference made thereunder in respect of an industrial dispute pending adjudication by the tribunal constituted for that purpose. Nor can s. 21 of the General Clauses Act, 1897, vest such a power by necessary implication.”

29.

Section 39 I.D. Act permits the Central Government to delegate and to withdraw delegation, but such withdrawal operates prospectively for future matters only.

30.

Jurisdiction of Tribunal depends on the existence of a valid reference on the date it was made, later changes do not nullify it.

31.

The legal source of the Tribunal’s power in this matter is the reference order itself. So long as that order of reference is valid, the Tribunal is bound to adjudicate.

32.

Thus:-

1.

The reference in the present case was validly made and continues to subsist.

2.

The withdrawal of delegation under Section 39 of the I.D. Act by the Central Government does not affect the jurisdiction of the Tribunal over the pending dispute.

33.

As such, let the writ application now be heard on the point of the validity of the reference as the writ petitioner has raised the issue “that the reference which apparently has held that an industrial dispute exists between the petitioner and the Contractors‟ Workers Union is not an industrial dispute being not in accordance with law, as the same is not between the petitioner and its workers but has been considered for a reference as an industrial dispute between the petitioner and Contractors‟ workers, who admittedly do not have an employee/employer relationship as admittedly they are workers of the Contractors”.

10.

The original reference in this case was vide order of reference no. 1799 – I.R. dated 20.11.2002, wherein the two issues were framed and sent to the learned Seventh Industrial Tribunal to answer.

11.

Vide an order dated 07.05.2008, the reference dated 20.11.2002 was transferred to the Third Industrial Tribunal for passing an award.

12.

The said order was an administrative direction in respect of transfer of a valid reference dated 20.11.2002, but the reference was answered and decided by the 7th Industrial Tribunal vide impugned award dated 25.08.2014.

13.

Thus, the order dated 07.05.2008 sending the reference to the 3rd Industrial Tribunal was never given effect to, as the initial order of reference dated 20.11.2002 (valid) was referred to the 7th Industrial Tribunal and it is the said tribunal which has decided the reference.

14.

Thus considering the principle issue raised in the writ application being the maintainability of the reference before the tribunal and its validity, the said issue is decided against the petitioner in view of the judgment of this Court in Steel Authority (Supra).

15.

The other grounds raised by the petitioner in respect of the impugned award are also not sustainable in law.

16.

Thus the impugned award dated 25.08.2014 passed by the learned Seventh Industrial Tribunal, West Bengal in connection with Case No. VIII-200/02, being in accordance with law requires no interference.

17.

WPA 5957 of 2015 is dismissed.

18.

Applications, if any, connected thereto stand disposed of consequently.

19.

Photostat certified copy of this Judgment, if applied for, be given to the parties on priority basis upon compliance of all formalities.