Eastern Coalfields Ltd vs Union Of India & Ors on 7 April, 2026

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    Calcutta High Court (Appellete Side)

    Eastern Coalfields Ltd vs Union Of India & Ors on 7 April, 2026

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    07.04.2026
    Item No.2
    Court No. 30
    Piya
                                     WPA 5578 of 2026
    
                               Eastern Coalfields Ltd.
                                        -vs-
                                Union of India & Ors.
    
    
                              Mr. Manik Das
                                         ... for the Petitioner
    
                              Mr. Pinaki Bhattacharya
                              Mr. Asit Kumar De
                                 ..... for the Respondent Nos. 1,2,& 3

    Mr. Asif Ikbal Baidya
    …. For the Private Respondent

    1. The writ application has been preferred

    SPONSORED

    praying for direction upon the respondent

    authorities to cancel and/or withdraw the

    impugned Reference made by the respondent

    no.1 vide order no. I(09)/2025/E dated 04-09-

    2025 or in the alternative to set aside or

    quash the impugned Reference made by the

    respondent no.1 vide order no. I(09)/2025/E

    dated 04-09-2025.

    2. Learned counsel for the petitioner submits

    that the Reference is bad in law as the same

    has not been done by invoking Section 10 of

    the Industrial Disputes Act.

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    3. Relying upon the judgment of the Supreme

    Court in the case of State of Bombay Vs. K.

    P. Krishnan and Ors., 1960 SCC OnLine SC

    99, (Paragraphs 9, 10, 11, 12 and 15),

    learned counsel for the petitioner submits that

    the said order of Reference is required to be

    cancelled and set aside.

    4. The petitioners further case is that:-

    On or about 09-07-2024, the respondent No. 4

    raised a purported industrial dispute before

    the respondent No. 3, inter alia, claiming

    regularization of several contractual workers

    in the petitioner company pursuant whereto a

    conciliation proceeding was initiated by the

    respondent No. 3.

    The conciliation having been failed and

    no settlement being arrived at, the respondent

    No. 3 sent its report to the respondent No. 1,

    being the appropriate government, under

    section 12 (4) of the Industrial Disputes Act,

    1947 (hereinafter referred to as the “Act”),

    inter alia, reporting failure of the conciliation.

    However, the respondent No. 1,

    being the Ministry of Labour, Government of

    India, by the order No. I(09)/2025/E dated 04-

    09-2025 referred the purported dispute for

    adjudication by the Central Government

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    Industrial Tribunal cum Labour Court,

    Asansol (hereinafter referred to as the “CGIT”),

    under section 12 (5) read with section 10 (2A)

    of the Industrial Disputes Act, 1947 for

    adjudicating the following issue:

    “Whether the action of the Management of M/s

    Eastern Coalfields Limited in denying

    regularization of contractual workers of

    underground collieries of Satgram-Sripur Area

    of M/s ECL is just and legal? If not, to what

    relief the concerned workers are entitled to?”

    The CGIT, upon receiving the reference

    as aforesaid, registered the same as Reference

    Case No. 58 of 2025.

    5. It is the case of the petitioner that no reference

    to a Tribunal or a board or a Labour Court for

    adjudication of a dispute can be made without

    invoking section 10 (1) of the Industrial

    Disputes Act, 1947 (hereinafter referred to as

    the “Act”).

    6. It is further stated that the impugned

    Reference has been made under section 12 (5)

    read with section 10 (2A) of the Act, which do

    not empower the respondent No. 1 to refer a

    dispute to a Tribunal for adjudication without

    invoking section 10 (1) of the Act.

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    7. It is also stated that even if the appropriate

    government, the respondent No. 1 herein, may

    be acting under section 12 (5) of the Act, the

    reference must ultimately be made under

    section 10 of the Act and not otherwise.

    8. The petitioner further submits that section 10

    (1) of the Act is an enabling provision for

    making any reference under the Act and any

    Reference without invoking section 10 (1) of

    the Act is bad and void ab initio.

    9. The petitioner herein has relied upon

    paragraph 9, 10, 11, 12 and 15 of State of

    Bombay vs K.P.Krishnan & Ors., (Supra)

    wherein the Supreme Court held as follows:-

    “9. It is true that s. 12(5) provides that the
    appropriate Government may make such
    reference and in that sense it may be
    permissible to say that a power to make
    reference is conferred on the appropriate
    Government by s. 12(5). The High Court
    was apparently inclined to take the view
    that in cases falling under s. 12(5) reference
    can be made only under s. 12(5)
    independently of s. 10 (1). In our opinion
    that is not the effect of the provisions of s.
    12(5)
    . If it is held that in cases falling under
    s. 12(5) reference can and should be made
    only under s. 12(5) it would lead to very
    anomalous consequences. Section 10(3)
    empowers the appropriate Government by
    an order to prohibit the continuance of any
    strike or lock-out in connection with an
    industrial dispute which may be in
    existence on the date of the reference, but
    this power is confined only to cases where
    industrial disputes are referred under s.
    10(1)
    . It would thus be clear that if a
    reference is made only under s. 12(5)
    independently of s. 10(1) the appropriate
    Government may have no power to prohibit

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    the continuance of a strike in connection
    with a dispute referred by it to the tribunal
    for adjudication; and that obviously could
    not be the intention of the Legislature. It is
    significant that ss. 23 and 24 prohibit the
    commencement of strikes and lock-outs
    during the pendency of proceedings therein
    specified, and so even in the case of a
    reference made under s. 12(5) it would not
    be open to the employer to declare a lock-
    out or for the workmen to go on strike after
    such a reference is made; but if a strike has
    commenced or lock-out has been declared
    before such a reference is made, there
    would be no power in the appropriate
    Government to prohibit the continuance of
    such a strike or such a lock-out. Section
    24(2)
    makes it clear that the continuance of
    a lock-out or strike is deemed to be illegal
    only if an order prohibiting it is passed
    under s. 10(3). Thus the power to maintain
    industrial peace during adjudication
    proceedings which is so essential and
    which in fact can be said to be the basis of
    adjudication proceedings is exercisable only
    if a reference is made under s. 10(1). What
    is true about this power is equally true
    about the power conferred on the
    appropriate Government by s. 10(4), (5), (6)
    and (7). In other words, the material
    provisions contained in sub-ss. (3) to (7) of
    S. 10(1)
    which are an integral part of the
    scheme of reference prescribed by Chapter
    III of the Act
    clearly indicate that even if the
    appropriate Government may be acting
    under s. 12(5) the reference must ultimately
    be made under s. 10 (1). Incidentally it is
    not without significance that even in the
    petition made by the respondents in the
    present proceedings they have asked for a
    writ of mandamus calling upon the
    appellant to make a reference under ss.
    10(1)
    and 12(5).

    10. Besides, even as a matter of
    construction, when s. 12(5) provides that
    the appropriate Government may make
    such reference it does not mean that this
    provision is intended to confer a power to
    make reference as such. That power has
    already been conferred by s. 10(1); indeed
    s. 12(5)
    occurs in a Chapter dealing with the
    procedure, powers and duties of the
    authorities under the Act; and it would be

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    legitimate to hold that s. 12(5) which
    undoubtedly confers power on the
    appropriate Government to act in the
    manner specified by it, the power to make a
    reference which it will exercise if it comes to
    the conclusion that a case for reference has
    been made must be found in s. 10(1). In
    other words, when s. 12(5) says that the
    Government may make such reference it
    really means it may make such reference
    under s. 10(1). Therefore it would not be
    reasonable to hold that s. 12(5) by itself and
    independently of s. 10(1) confers power on
    the appropriate Government to make a
    reference.

    11. The next point to consider is whether,
    while the appropriate Government acts
    under s. 12(5), it is bound to base its
    decision only and solely on a consideration
    of the report made by the conciliation officer
    under s. 12(4). The tenor of the High Court’s
    judgment may seem to suggest that the only
    material on which the conclusion of the
    appropriate Government under s. 12 (5)
    should be based is the said report. There is
    no doubt that having regard to the
    background furnished by the earlier
    provisions of s. 12 the appropriate
    Government would naturally consider the
    report very carefully and treat it as
    furnishing the relevant material which
    would enable it to decide whether a case for
    reference has been made or not; but the
    words of s. 12(5) do not suggest that the
    report is the only material on which
    Government must base its conclusion. It
    would be open to the Government to
    consider other relevant facts which may
    come to its knowledge or which may be
    brought to its notice, and it is in the light of
    all these relevant facts that it has to come to
    its decision whether a reference should be
    made or not. The problem which the
    Government has to consider while acting
    under s. 12(5)(a) is whether there is a case
    for reference. This expression means that
    Government must first consider whether a
    prima facie case for reference has been
    made on the merits. If the Government
    comes to the conclusion that a prima facie
    case for reference has been made then it
    would be open to the Government also to
    consider whether there are any other

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    relevant or material facts which would
    justify its refusal to make a reference. The
    question as to whether a case for reference
    has been made out can be answered in the
    light of all the relevant circumstances which
    would have a bearing on the merits of the
    case as well as on the incidental question
    as to whether a reference should
    nevertheless be made or not. A discretion to
    consider all relevant facts which is
    conferred on the Government by s. 10(1)
    could be exercised by the Government even
    in dealing with cases under s. 12(5)
    provided of course the said discretion is
    exercised bona fide, its final decision is
    based on a consideration of relevant facts
    and circumstances, and the second part of
    s. 12(5)
    is complied with.

    12. We have already noticed that s. 12
    deals with the conciliation proceedings in
    regard to all industrial disputes, whether
    they relate to a public utility service or not.
    Section 12(1) imposes an obligation on the
    conciliation officer to hold conciliation
    proceedings in regard to an industrial
    dispute in respect of public utility service
    provided a notice under s. 22 has been
    given. If in such a dispute the efforts at
    conciliation fail and a failure report is
    submitted under s. 12(4) Government may
    have to act under s. 12(5) and decide
    whether there is a case for reference. Now,
    in dealing with such a question relating to a
    public utility service considerations
    prescribed by the second proviso to s. 10(1)
    may be relevant, and Government may be
    justified in refusing to make a reference if it
    is satisfied that the notice given is frivolous
    or vexatious or that reference would be
    inexpedient. Just as discretion conferred on
    the Government under s. 10(1) can be
    exercised by it in dealing with industrial
    disputes in regard to non-public utility
    services even when Government is acting
    under s. 12(5), so too the provisions of the
    second proviso can be pressed into service
    by the Government when it deals with an
    industrial dispute in regard to a public
    utility service under s. 12(5).

    15. On the other hand, if the power to make
    reference is ultimately to be found in s.
    10(1)
    it would not be easy to read the

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    relevant portion of s. 12(5) as imposing an
    obligation on the Government to make a
    reference. Section 12(5) when read with s.

    10 (1) would mean, according to the
    appellant, that, even after considering the
    question, the Government may refuse to
    make a reference in a proper case provided
    of course it records and communicates its
    reasons for its final decision. In this
    connection the appellant strongly relies on
    the relevant provisions of s. 13. This section
    deals with the duties of Boards and is
    similar to s. 12 which deals with
    conciliation officers. A dispute can be
    referred to a Board in the first instance
    under s. 10(1) or under s. 12(5) itself. Like
    the conciliation officer the Board also
    endeavours to bring about a settlement of
    the dispute. Its powers are wider than those
    of a conciliator but its function is
    substantially the same; and so if the efforts
    made by the Board to settle the dispute fail
    it has to make a report under s. 13(3).
    Section 13(4) provides that if on receipt of
    the report made by the Board in respect of a
    dispute relating to a public utility service the
    appropriate Government does not make a
    reference to a Labour Court, Tribunal or
    National Tribunal under s. 10, it shall
    record and communicate to the parties
    concerned its reasons therefor. The
    provisions of s. 13 considered as a whole
    clearly indicate that the power to make a
    reference in regard to disputes referred to
    the Board are undoubtedly to be found in s.
    10(1)
    . Indeed in regard to disputes relating
    to non-public utility services there is no
    express provision made authorising the
    Government to make a reference, and even
    s. 13(4)
    deals with a case where no
    reference is made in regard to a dispute
    relating to a public utility service which
    means that if a reference is intended to be
    made it would be under the second proviso
    to s. 10(1). Incidentally this fortifies the
    conclusion that whenever reference is made
    the power to make it is to be found under s.
    10(1)
    . Now, in regard to cases falling under
    s. 13(4)
    since the reference has to be made
    under s. 10 that can be no doubt that the
    considerations relevant under the second
    proviso to s. 10(1) would be relevant and
    Government may well justify their refusal to
    make a reference on one or the other of the

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    grounds specified in the said proviso.
    Besides, in regard to disputes other than
    those falling under s. 13(4) if a reference
    has to be made, it would clearly be under s.
    10(1)
    . This position is implicit in the scheme
    of s. 13. The result, therefore, would be that
    in regard to a dispute like the present it
    would be open to Government to refer the
    said dispute under s. 12(5) to a Board, and
    if the Board fails to bring about a settlement
    between the parties Government would be
    entitled either to refer or to refuse to refer
    the said dispute for industrial adjudication
    under s. 10(1). There can be no doubt that if
    a reference has to be made in regard to a
    dispute referred to a Board under s. 13 s.
    10(1) would apply, and there would be no
    question of importing any compulsion or
    obligation on the Government to make a
    reference. Now, if that be the true position
    under the relevant provisions of s. 13 it
    would be difficult to accept the argument
    that a prior stage when Government is
    acting under s. 12(5) it is obligatory on it to
    make a reference as contended by the
    respondent.”

    10. The sole contention of the petitioner herein

    is that the reference is bad as the same has

    been made by invoking Section 12(5) read with

    Section 2A of Section 10 of the Industrial

    Disputes Act. It is the contention of the

    petitioner that reference in the present case

    could have been only made under Section

    10(1) of the Industrial Disputes Act and as it

    has been made under the provision as stated

    the same is bad in law and is liable to be

    quashed and set aside.

    11. Considering, the argument made by the

    parties herein and the judgment relied upon

    by the petitioner in K.P.Krishnan &

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    Ors.,(Supra), the following observations of the

    Supreme Court in the said judgment are

    relevant in the present case.

    “……………A discretion to consider all
    relevant facts which is conferred on the
    Government by s. 10(1) could be exercised
    by the Government even in dealing with
    cases under s. 12(5) provided of course the
    said discretion is exercised bona fide, its
    final decision is based on a consideration
    of relevant facts and circumstances, and
    the second part of s. 12(5) is complied
    with…………

    ………………Section 12(1) imposes an
    obligation on the conciliation officer to
    hold conciliation proceedings in regard to
    an industrial dispute in respect of public
    utility service provided a notice under s.
    22
    has been given. If in such a dispute the
    efforts at conciliation fail and a failure
    report is submitted under s. 12(4)
    Government may have to act under s. 12(5)
    and decide whether there is a case for
    reference. Now, in dealing with such a
    question relating to a public utility service
    considerations prescribed by the second
    proviso to s. 10(1) may be relevant, and
    Government may be justified in refusing to
    make a reference if it is satisfied that the
    notice given is frivolous or vexatious or
    that reference would be inexpedient. Just
    as discretion conferred on the Government
    under s. 10(1) can be exercised by it in
    dealing with industrial disputes in regard
    to non-public utility services even when
    Government is acting under s. 12(5), so too
    the provisions of the second proviso can be
    pressed into service by the Government
    when it deals with an industrial dispute
    in regard to a public utility service under
    s. 12(5)
    ……………..”

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    12. Section 12(5) of the Industrial Disputes Act,

    lays down as follows:-

    Section 12(5). If, on a consideration
    of the report referred to in sub-section
    (4), the appropriate Government is
    satisfied that there is a case for reference
    to a Board, [Labour Court, Tribunal or
    National Tribunal], it may make such
    reference. Where the appropriate
    Government does not make such a
    reference it shall record and
    communicate to the parties concerned
    its reasons therefor.”

    13. The said provision clearly lays down that on

    receiving a report submitted by the

    conciliation officer, if the appropriate

    government is satisfied to make a reference,

    the same shall be done.

    14. It is only when the appropriate government

    does not make such a reference it shall

    record and communicate to the parties

    concerned its reason therefore.

    15. So, it is only when a reference is not made

    that reasons are to be recorded and when a

    reference is being made under Section 12(5) of

    the Industrial Disputes Act, prima facie

    satisfaction of the appropriate government is

    sufficient.

    16. Section 10(1) of the Industrial Disputes Act

    relates to reference of disputes by the

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    appropriate government, when it is of the

    opinion that an Industrial Disputes exists.

    17. Whereas Section 12(5) requires that a

    conciliation report is necessary for the

    appropriate government to consider such

    report and then decide as to whether to make

    a reference or not.

    18. In the present case admittedly there is a

    report submitted by the conciliation officer

    who was of the opinion that it is not fit case

    for reference. But the appropriate government

    in its wisdom was of the opinion that the

    reference was to be made and the same is

    pending adjudication before the tribunal.

    19. Considering, the said facts, this Court finds

    no irregularity in the reference dated 04-09-

    2025, the same being in accordance with law.

    20. The writ petition is accordingly dismissed.

    21. The learned Tribunal to proceed expeditiously

    with the reference case.

    ( Shampa Dutt (Paul), J. )

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