ADJUDICATION

Adjudication may be defined as an accelerated and cost effective form of dispute resolution that, unlike other means of resolving disputes involving a third party intermediary, the outcome is a decision by a third party which is binding on the parties in dispute and is final unless and until reviewed by either arbitration of litigation.

Adjudication is not arbitration or litigation.

An adjudicator is a third party intermediary appointed to resolve a dispute between the parties in dispute. The decision of the Adjudicator is binding and is final unless and until later reviewed by either arbitration or court proceedings, whichever the parties selected at the time of formalizing the contract. It is intended that adjudication is a condition precedent to proceeding to either arbitration or litigation.

Adjudication is a form of dispute resolution that meets a need for a rapid, relatively inexpensive dispute resolving mechanism which provides a decision that can be implemented immediately.

It is anticipated that in certain circumstances the adjudicator will consult others to provide such expertise as the adjudicator does not have, to assist in making the correct decision. This is inevitable in disputes that cover a wide range of technical disciplines and legal issues, as no one person could be expected to possess all the necessary skills. In effect, the adjudicator in these circumstances ‘manages’ resolution of the dispute on behalf of the parties in dispute. The parties pay for the advice the adjudicator obtains as a reimbursable expense in terms of the adjudicator’s contract with the parties.

Adjudication or compulsory arbitration is the ultimate remedy for the settlement of disputes in India. Adjudication consists of settling disputes through the intervention of a third party appointed by the government. An industrial dispute can be referred to adjudication by the mutual consent of the disputing parties. The government can also refer a dispute to adjudication without the consent of the parties. The industrial Disputes Act, 1947, provides three-tier adjudication machinery – namely Labour Courts, Industrial Tribunals and National Tribunals – for the settlement of industrial disputes. Under the provisions of the Act, Labour Courts and Industrial Tribunals can be constituted by both Central and State governments but the National Tribunals can be constituted by the Central government only.

a.      Labour Courts (section –7)

The labour court consists of one independent person (called as presiding officer) who is or has been a judge of a High Court, or has been district judge or additional district judge for not less than 3 years or has held any judicial office in India for not less than 7 years. The labour court deals with disputes relating to:

              i.            The property or legality of an order passed by employer under the standing orders;

            ii.            The application and interpretation of standing orders;

          iii.            Discharge or dismissal of workers including reinstatement of , or grant of relief to wrongly dismissed persons;

          iv.            Withdrawal of any statutory concession or privilege;

            v.            Illegality or otherwise of a strike or lockout; and

          vi.            All matters except those reserved for industrial tribunals.

b.      Industrial Tribunal (section-7A)

This is also a one – man adhoc body (presiding officer) appointed by the government. It has a wider jurisdiction than labour court. The government concerned may appoint two assessors to advise the presiding officer in the proceedings. An industrial Tribunal can adjudicate on the following matters;

              i.            Wages including the period and mode of payment;

            ii.            Compensatory and other allowances;

          iii.            Hours of work and rest periods;

          iv.            Leave with wages and holidays;

            v.            Bonus, profit sharing, provident fund and gratuity;

          vi.            Shift working, otherwise than in according with the standing orders;

        vii.            Classification by grades;

      viii.            Rules of discipline;

           ix.            Rationalization;

             x.            Retrenchment and closure of establishment; and

           xi.            Any other matter that may be prescribed.

c.      National Tribunal (section-7B)

This is the third one-man adjudicatory body to be appointed by the central government to deal with dispute of national importance or issues which are likely to affect the industrial establishments in more than one state.

It consists of one person only, who is an independent person and below 65 years of age. He should be or has been judge of a High Court or held the office of Chairman or any other member of the Labour Appellate Tribunal for a period of not less than 2 years.

The Central Government may, if it thinks fit, appoint two persons as assessors to advise the National Tribunal. Duties of a national tribunal are to hold proceedings of an industrial dispute referred to it by the Central Government expeditiously, and to submit the award to the referred on the conclusion thereof. When a national tribunal has been referred to, no Labour Court or Industrial tribunal shall have any jurisdiction to adjudicate upon such a matter.