In the case of D. N. Banerji vs P. R. Mukherjee and Others on 5 December, 1952, the Supreme Court of India was called upon to interpret the scope of the terms “industry” and “industrial dispute” under the Industrial Disputes Act, 1947. The case was presided over by a bench comprising of Sastri, M. Patanjali (CJ), Mukherjea, B.K., Aiyar, N. Chandrasekhara, Bose, Vivian, and Hasan, Ghulam.
Facts of the Case
The case arose from a dispute between the Budge Budge Municipality and two of its employees, the Sanitary Inspector and the Head Clerk, who were also members of the Municipal Workers’ Union. The Chairman of the Municipality had dismissed the two employees on grounds of negligence, insubordination, and indiscipline. The Municipal Workers’ Union challenged the dismissal, claiming that it was improper and that the employees should be reinstated. The matter was referred to the Industrial Tribunal by the State of West Bengal under the Industrial Disputes Act.
Issues before the Court
The primary issues before the court were whether the dispute between the municipality and its employees could be considered an “industrial dispute” under the Industrial Disputes Act, and whether the Act applied to disputes involving municipalities. The municipality argued that it was not engaged in any industry as defined in the Act, and therefore the dispute could not be an industrial dispute.
Court’s Observations and Ruling
The court observed that the definitions of “industry” and “industrial dispute” in the Act were wide enough to include disputes between municipalities and their employees in branches of work that could be regarded as analogous to the carrying on of a trade or business. The court noted that the term “undertaking” in the definition of “industry” and “industrial occupation or avocation” in the definition of “industrial dispute” meant much more than what is ordinarily understood by trade or business. The definitions were intended to include within their scope what might not strictly be called a trade or business venture.
The court held that the definition of “industrial dispute” in the Act was wide enough to cover the dispute in question and the matter could properly be referred to a Tribunal for adjudication under the Act. The court also held that although the power of a Tribunal under the Industrial Disputes Act to reinstate its employees trenches on the power to appoint and dismiss employees conferred on the chairman of a municipality by the Bengal Municipal Act, the Industrial Disputes Act is not invalid on this ground as it is in pith and substance a law in respect of industrial and labour disputes, which is a central subject.
The court’s decision in this case expanded the scope of the Industrial Disputes Act, making it applicable to disputes involving municipalities and their employees. This case is a landmark in the interpretation of the terms “industry” and “industrial dispute” under the Act.