Gujarat Steel Tubes Ltd . v. Gujarat Steel Tubes Mazdoor Sabha , AIR 1980 SC 1896
Facts: The Gujarat Steel Tubes Ltd. manufactured Steel Tubes in the city of Ahmedabad and was scarred by an industrial dispute. The industry started in 1960 commenced its production in 1964 and resulted in huge profits and growing workers. One day there became a confrontation which culminated in a head-on collision following an unhappy happening. A total strike ensued, whose chain reaction was a wholesale termination of all the employees, followed by a fresh recruitment of workmen, de facto breakdown of the strike and dispute over restoration of the removed workmen. This cataclysmic episode and its sequel formed the basis of section 10A of the Arbitration Act-Arbitration and award a writ petition and judgment, inevitably spiraled up to Supreme Court in two appeals viz. one by the Management and the other by Workmen's Union which was heard together and was disposed of by a common judgment. The Arbitrator held the action of the Management warranted while the High Court reversed the award and subsequently directed reinstatement.
Issues: Whether there is a right of the employer to terminate the services of his workmen under a standing order?
Decision: The orders of discharge of the workmen could not be regarded as the orders of their dismissal and were on the other hand, orders of discharge simplicitor properly passed under the Model Standing Order.
The Arbitrator could not exercise the powers conferred on a Tribunal and could not therefore interfere with the punishment awarded by the Management to the workmen.
In any case the High Court exceeded the limits of its jurisdiction in interfering with the punishment purporting to act in the exercise of its power under Article 227 of the Constitution of India. Finally the judgment of the High Court was held as revered and the Order of the Arbitrator restored.