Trace Your Case

ISSUE:

Whether non-publication of the arbitration agreement in the Official Gazette under Section 10A(3) of the Industrial Disputes Act, 1947, renders the arbitral award invalid?

Whether the State Government, after parties opted for arbitration under Section 10A, could validly refer the same dispute to the Industrial Tribunal under Section 10(1)?

RULE:

Publication of the arbitration agreement under Section 10A(3) is mandatory. Collective bargaining requires that workers be aware of the dispute, the arbitrator, and the issues involved before arbitration begins. The arbitration process is not just between the union and the management but affects all workers. Without publication, workers lose the opportunity to present their views, making the process unfair. An award made without prior publication is invalid as it violates this essential safeguard.

Section 10 and Section 10A are alternative remedies, and once arbitration under Section 10A is chosen, a reference under Section 10(1) is not permitted. Arbitration under Section 10A creates binding obligations, and allowing a parallel reference would disrupt industrial peace. Voluntary arbitration is designed to be a quicker and more efficient means of resolving disputes. Permitting a Section 10(1) reference after arbitration would negate the purpose of arbitration and lead to prolonged litigation, defeating the objective of industrial adjudication.

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