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B.Com. LL.B. (Five Years) Sem 5 Labour Law I 2020 Nov Question Paper with Solutions

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Labour Law I

Previous Year Question Paper with Solution

B.Com. LL.B. (Five Years) · Sem 5

2020 Nov Examination

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First published on munotes.in on 2 November 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2020 Nov examination.

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The Paper as Set

The questions in this volume are the questions asked at the 2020 Nov examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 100  ·  13 questions answered

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

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Q1Discuss the mechanism provided under Industrial Disputes Act, 1947 for adjudication and settlement of disputes.[16]

Answer

For full marks, cover: the scheme of the Industrial Disputes Act 1947: settlement first, adjudication only when settlement fails; the path of a dispute stage by stage: prevention inside the establishment (Works Committee, section 3; Grievance Redressal Committee, section 9C; notice of change, section 9A); conciliation by a conciliation officer (sections 4 and 12) or a Board (sections 5 and 13); voluntary arbitration (section 10A; Karnal Leather); a Court of Inquiry (sections 6 and 14); compulsory adjudication on a Government reference (section 10; K.P. Krishnan, Bombay Union of Journalists) by a Labour Court, Tribunal or National Tribunal (sections 7, 7A, 7B), with direct access for a dismissed workman (section 2A(2)); the powers in adjudication (sections 11 and 11A); the award and its review (sections 17 and 17A; Bharat Bank); a flow table; the Industrial Relations Code 2020; a conclusion.

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The scheme of the Act

The Act's purpose is industrial peace. It tries first to get the parties to settle their own dispute, with help if needed. Only when settlement fails does it send the dispute for a binding decision. So the mechanism has two parts: machinery for settlement, and machinery for adjudication. A dispute moves from the first to the second.

Stage 1: prevention inside the establishment

  1. Works Committee (section 3). In an establishment employing one hundred or more workmen, the Government may require one. It has equal or greater numbers of workmen's representatives, chosen in consultation with their registered union. Its duty is to secure "amity and good relations", and to try to resolve "any material difference of opinion" on matters of common interest.
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  1. Grievance Redressal Committee (section 9C). Every establishment employing twenty or more workmen must have one, for disputes from individual grievances. It has equal members from both sides, not more than six, and a chairperson who alternates yearly. Using it does not take away the workman's right to raise an industrial dispute.
  2. Notice of change (section 9A). An employer must give notice before changing any condition of service listed in the Fourth Schedule. He may not make the change within twenty-one days of the notice. This lets the workmen object before a dispute hardens.

Stage 2: conciliation

Conciliation is assisted negotiation. A neutral person helps the parties agree, but cannot impose terms.

  1. Conciliation officer (sections 4 and 12). The Government appoints officers "charged with the duty of mediating in and promoting the settlement of industrial disputes". In a public utility service, the officer must hold conciliation once a strike or lock-out notice is given. Elsewhere he may do so. He reports a settlement with its memorandum, or a failure with his reasons, within fourteen days.
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  1. Board of Conciliation (sections 5 and 13). For a particular dispute the Government may constitute a Board. It has an independent chairman and two or four members representing the parties equally. It has civil court powers to summon and inspect (section 11(3)), and reports within two months.

A settlement reached in conciliation binds all parties and every workman of the establishment, present and future (section 18(3)). While conciliation is pending, strikes and lock-outs are barred in public utilities (section 22) and before a Board in every establishment (section 23).

Stage 3: voluntary arbitration

The parties may prefer a decision by a person of their own choice. They may then agree in writing to refer the dispute to an arbitrator (section 10A). The agreement is sent to the Government and the conciliation officer, and must be published in the Gazette. The arbitrator's award is an "award" under section 2(b).

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Karnal Leather Karamchari Sanghatan v. Liberty Footwear Company, (1989) 4 SCC 448. After strikes and lay-offs, a footwear firm and its workers' union agreed to refer a dispute over terminations to an arbitration committee. It ordered reinstatement of 159 workmen. The agreement had never been published, and the High Court quashed the award. The Supreme Court held that publication under section 10A(3) is mandatory, and sent the dispute to the Industrial Tribunal. It called collective bargaining a way of settling disputes "by agreement rather than coercion".

Stage 4: a Court of Inquiry

The Government may refer any matter connected with a dispute to a Court of Inquiry (sections 6 and 10(1)(b)). It consists of one or more independent persons. It inquires and reports, ordinarily within six months (section 14). It decides nothing, but its findings guide the Government and the parties.

Stage 5: compulsory adjudication

The reference (section 10). If conciliation fails, the appropriate Government may refer the dispute for adjudication. The choice of forum depends on the subject.

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  1. Labour Court (section 7). It decides disputes on matters in the Second Schedule, such as dismissal and the legality of an order under standing orders.
  2. Industrial Tribunal (section 7A). It decides disputes on any matter in the Second or Third Schedule, such as wages, bonus, hours and retrenchment.
  3. National Industrial Tribunal (section 7B). The Central Government constitutes it for disputes of national importance, or those likely to affect establishments in more than one State.

Each is a one-person body with judicial qualifications. Where the parties jointly ask for a reference, and represent the majority on each side, the Government must make it (section 10(2)). Otherwise the reference is a discretion, but a discretion bounded by law.

State of Bombay v. K.P. Krishnan, AIR 1960 SC 1223. Employees claimed reclassification of posts and more bonus, and the conciliation officer's report favoured them. The Government refused to refer the dispute, only because the workers had used go-slow tactics that year. The Supreme Court held that reasons for refusing must be germane, not punitive or extraneous. It issued mandamus.

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Bombay Union of Journalists v. State of Bombay, AIR 1964 SC 1617. Two journalists were retrenched with three months' salary in lieu of notice, and the Government refused a reference. The Supreme Court held that, in deciding whether to refer, the Government may look at the merits prima facie. It may not decide disputed questions of law or fact finally, which are for the Tribunal.

Direct access (section 2A). A dispute over an individual workman's discharge, dismissal, retrenchment or termination is an industrial dispute, even if no union supports it. After forty-five days from his application for conciliation, the workman may apply directly to the Labour Court or Tribunal, without a reference.

Stage 6: powers in adjudication and the award

  1. Powers (section 11). The forum follows its own procedure, has civil court powers to summon and inspect, and its proceedings are judicial proceedings. It may appoint assessors.
  2. Relief in dismissal cases (section 11A). If a dismissal was not justified, it may set it aside and order reinstatement, or award a lesser punishment.
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  1. The award. It is published within thirty days, becomes enforceable thirty days later, and binds all parties and future workmen (sections 17, 17A and 18(3)).
  2. Review by higher courts. The award is "final" under section 17(2), but the Constitution still allows challenge.

Bharat Bank Ltd. v. Employees of Bharat Bank Ltd., AIR 1950 SC 188. A bank sought special leave to appeal against an award of the All India Industrial Tribunal (Bank Disputes). The Supreme Court held that a tribunal under the Act works very like a court. So its award may be brought to the Supreme Court by special leave under Article 136, though leave is granted sparingly.

The path at a glance

StageBodySectionResult
PreventionWorks Committee, Grievance Committee3, 9Cdiscussion, resolution
Conciliationconciliation officer, Board4, 5, 12, 13settlement or failure report
Arbitrationarbitrator chosen by parties10Aarbitration award
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StageBodySectionResult
InquiryCourt of Inquiry6, 14report
AdjudicationLabour Court, Tribunal, National Tribunal7, 7A, 7B, 10award
ReviewHigh Court, Supreme CourtArts. 226, 136writ or appeal

Where the law stands now

The 1947 Act was repealed on 21 November 2025 by section 104 of the Industrial Relations Code 2020. The Code keeps the Works Committee (section 3), the Grievance Redressal Committee (section 4), conciliation officers (section 43) and voluntary arbitration (section 42). It drops Boards and Courts of Inquiry, and Labour Courts. The Industrial Tribunal (section 44) and National Industrial Tribunal (section 46) adjudicate. A party may apply to the Tribunal directly within ninety days of the conciliation officer's failure report (section 53(6)).

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Conclusion. The Act built a ladder for settling industrial disputes. It begins with Works Committees and grievance committees inside the establishment. Then come conciliation by officers and Boards, and voluntary arbitration, as in Karnal Leather. Only when these fail does the Government refer the dispute to a Labour Court, Tribunal or National Tribunal. A refusal to refer must rest on relevant reasons, as K.P. Krishnan holds. The resulting award binds all, subject to review by the higher courts, as Bharat Bank shows.

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