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THE ASSOCIATED CEMENT COMPANIES LTD. versus THEIR WORKMEN

Citation: [1960] 3 S.C.R. 157 · Decided: 03-03-1960 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

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Judgment (excerpt)

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3 S.C.R. SUPREME COURT REPORTS 
157 
THE ASSOCIATED CEMENT COMPANIES LTD. 
v. 
THEIR WORKMEN 
(P. B. GAJENDRAGADKAR,' A. K. SARKAR AND 
K. c. DAS GUPTA, JJ.) 
Industrial, Dispute-Award-Notice of Termination-Whether 
can be given by minority union-Industrial, Disputes Act, I947, (I4 
of I947), ss.'I8, I9(6). 
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The appellant's workmen were represented by a Union called 
Kamdar Mandal Cement Works, Porbandar. The registration 
of the said union was cancelled and that led to the formation of 
two Unions, the Cement Kamdar Mandal and Cement Employees 
Union. The Cement Kamdar Mandal gave two notices one after 
another to the appellant, purporting to terminate two previous 
awards, wherein the defunct union represented the workmen. 
Thereafter the Mandal presented fresh demands and the dispute 
was referred to the Tribunal. The second union, the Cement 
Employees' Union which represented the majority of the appel-
lant's workmen at Porbandar had been impleaded in the proceed-
ings. The appellant raised preliminary objections before the Tribu-
nal against the competency of the reference inter alia on the 
ground that the award in question by which the parties were 
bound had not been duly terminated under s. r9(6) of the Act in 
as much as the union which purported to terminate the said 
award represented only a minority of workmen bound by it. The 
Tribunal by its interlocutary judgment found against the appel-
lant. 
The dispute between the parties centres round the question as 
to who can issue the notice terminating the award on behalf of 
workmen who are bound by the award as a result of s. rS of the 
Act. The question therefore for decision is whether a registered 
trade union representing a minority of workmen governed by an 
award can give notice. to the other party intimating its intention 
to terminate the award under s. r9(6) of the Industrial Disputes 
~tr~~ 
. 
Held, that the effect of s. rS is that an award properly made 
by an industrial tribunal governs the employer and all those who 
represent him under s. rS(c) and the employees who are parties to 
the dispute and all those who are included ins. rS(b) and (d). On 
a fair and reasonable reading of s. r9(6), the true position is that, 
though the expression "any party bound by the award" refers to all 
workmen bound by the award, notice to terminate the said award 
can be given not by an individual workman but by a group of 
workmen acting collectively either through their union or other-
wise, and it is not necessary that such a group of workmen acting 
coJlectively either through their union or otherwise, should repre-
sent the majority of workmen bound by the award. Thus it is 
open to a minority of workmen or a minority union to terminate 
r960 
March 3 
158 
SUPREME COURT REPORTS 
(1960] 
I960 
the award by which they, along with other employees, are bound 
just as much as it is open to them to raise an industrial dispute 
Associated 
under the Act. 
Cement Companies 
The Central Provinces Transport Services Limited v. Raghunath 
Ltd. 
Gopal Patwardhan, [1956] S.C.R. 956 and The Newspapers Limited 
, v. 
v. The State Industrial Tribunal, U. P., [1957] S.C.R. 754, refer-
Their Workmen red to. 
CIVIL 
APPELLATE 
JURISDICTION: 
Civil Appeal 
No. 404 of 1958. 
Appeal by special leave from the decision dated 
March 10, 1958, of the Industrial Tribunal, Rajkot, in 
Adjudication Case No. 67 of 1955. 
M. 0. Setalvad, Attorney-General for India, R. J. 
Kolah, S. N. Andley, J. B. Dadachanji, Rameshwar 
Nath and P. L. Vohra, for the appellants. 
Janardan Sharmii, for respondent No. 2. 
1960. March, 3. 
The Judgment of the Court was 
delivered by 
Gajendragadkar ]. 
GAJENDRAGADKAR, J.-Can a 
registered trade 
union representing a minority of workmen governed 
by an award give notice to the other party intimating 
its intention to terminate the award under s. 19(6) 
of the Industrial Disputes Act XIV of 194 7 (herein-
after called the Act)? That is the short question 
which arises for decision in the present appeal. In 
answering the said question it would be necessary to 
examine the scheme of the Act and to ascertain the ยท 
true meaning and effect of s. 19(6) on its fair and 
reasonable construction. The controversy thus raised 
undoubtedly lies within a narrow compass; but before 
addressing ourselves to the merits of tbe dispute, it is 
necessary to state the material facts which led to the 
present proceedings. 
The present appeitl has been brought before th

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