MAHABIR JUTE MILLS LTD. GORAKHPUR versus SHIBBAN LAL SAXENA AND ORS.

Citation: [1976] 1 S.C.R. 168 · Decided: 30-07-1975 · Supreme Court of India · Bench: A.N. RAY · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

168 
MAHABIR JUTE MILLS LTD. GORAKHPUR 
v. 
SlllBBAN LAL SAXENA AND ORS. 
July 30, 1975 
[A. N. RAY C. J., K. K. MATIIEW, V. R. KRISHNA IYER AND 
S. M. FAZAL ALI, JJ.J 
U.P. Industrial Disputes Act, 1941-Sec. 3-Whether Government while 
deciding whether a dispute should be rejeJ'f1ed for adjudication entitled to rely 
upon the secret rrport sent by the conciliation of]icer--Whether a11 admn. order 
of the Governn1ent should be a s;,:eaking order-Principles of natural justice-
fVhether court ca11 direct Governn'1enr how to exercise its discr£ti411-Dclay in 
i}isposal of labour matters. 
The appellant employs about 1000 workmen. In the year 1955 all tho !000 
workmen were dismissed by the appellant after holding certain enquiries. 
Out 
of the 1000 \Vorkmen 200 workmen apologised and they were reinstated. The 
remaining 800 workmen were, hcwever, not reinstated. 
The workmen 
Union 
invoked jurisdiction of the Regional Conciliation Officer under clause 4(1) of the 
Government Nctification dated 14-7-1954 passed under sec. 3 of the U.P. Indus-
trial Disputes Act, 1947. A Conciliation Board consisting of the Additional 
Reg:.Onal Conciliation Officer as the Chairman and one representative each of the 
1-fanagement and Labour as members was constituted. 
Before· the Conciliation 
Board, no settlement could be arrived at. The members of the Conciliation 
Board se.nt their reports to the Labour Commissioner which were placed before 
the Government. The Additional Rgional Conciliation Officer who 
was the 
Chairman of the Board sent a secret report to the Labour Commissioner recom-
mending that the allegations made by the workers against the management \vere 
baseless and should not be entertained. The Government by its 
order dated 
28-2-1956 refused to make a reference to the lndustrial Tribunal on the ground 
that it was not expedient to do so. The workn;ien filed a Writ Petition in 1958 for 
quashing the order of the Government dated 28-2-1956 and for directing a fresh 
reference. The learned Single Judge allowed the Writ Petition in October, 1963. 
The Appellate Bench of the High Court dismissed the appeal of the management 
in 1972. The Writ Petition was pending in the High Court for 14 years. The 
]earned Single Judge set aside the order of the Government on the following 
grounds 
~ 
(1) The (iovernment relied on the secret report sent by the 
~i\dditicnal 
Regional Conciliation Officer. 
(2) The order of the Government was not a ·speaking order. 
The Division Bench held that the order need not be a speaking order. Rules 
of natural justice \Vould apply to administrative proceedings. It is not necessary 
that the administrative orders should be speaking orders unless the Statute speci-
fically enjoins such a requirement. It is desirable that such orders should contain 
reasons when they decide matters affecting the rights of parties. 
The D~vision 
Bench set aside the order of the Government refusing to make a reference on 
the following grounds : 
(1} The Government took intc consideration the Secret report which had 
seriously prejudiced and coloured its decision. 
(2) The Additional Regional Conciliation Officer should have shown the 
secret report to other members of the Conciliation Hoard in accord-
ance with the principles of natural justice. 
A 
B 
c 
D 
E 
F 
G 
H 
A 
(3) 
MAHABIR JUTE MILLS V. S. L. SAXENA 
169 
The Government order was passed purely on the secret report sent 
by the AddiEonal Regional Conciliation Officer as also the report of 
the Labour Commissioner. 
Pursuant to the judgment of the HE.gh Court, the State Government made a 
reference in the year 1973. 
Allowing the appeal by certificate, 
B 
l-IELD : ( 1) The administrative decisions are not genera11y required to be 
accompanied by statement of reasons. In a diverse Society such as ours, the 
Government has to work through several administrative agencies wh:.Ch have got 
a very vi1ide sphere and if every administrative order is required to give reasons 
it will bring the Governmental machinery to a stand-still. [172F-G} 
c 
D 
E 
F 
G 
H 
2. There is no reliable material on record to show that the Government order 
was passed n1ainly on the secret report of the Additional Regional Conciliation 
Officer or of the Labour Commissioner. In the counter affidavit filed on behalf 
of Government it was specifically stated that in the opinion of the Government 
it was not expedient to refer th..! dispute to the adjudication after the matter was • 

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