Central

Section 6 of The Industrial Disputes (Banking and Insurance Companies) Act, 1949

(1)Where any award or decision has been made in respect of any industrial dispute concerning any banking or insurance company by any tribunal or other authority constituted or appointed by a 1[State] Government, or any officer or authority subordinate to such Government, then the Central Government may, notwithstanding that the said award or decision is in force, by order in writing refer under section 10 of the said Act the dispute or any of the matters in dispute to an Industrial Tribunal constituted under the said Act for adjudication and stay the implementation of the award or decision so made or of any part of such award or decision until the Industrial Tribunal to which the dispute or any of the matters in dispute is referred for adjudication has submitted its award or for such further period as the Central Government may consider necessary.
(2)After the Industrial Tribunal to which the dispute or any of the matters in dispute has been so referred for adjudication has submitted its award under sub-section (1) of section 15 of the said Act, the Central Government may, by order in writing, declare that the award or decision previously made in respect of such dispute by the tribunal or other authority constituted or appointed by the 2[State] Government or any officer or authority subordinate to such Government or such part of that award or decision as may be specified in the order shall cease to be in operation.

Summary

This section gives the Central Government power to override existing state-level decisions (awards) on banking or insurance disputes.
Even if a state tribunal has already made a decision and that decision is active, the Central Government can intervene.
While the new tribunal reviews the case, the Central Government can stay (temporarily stop or delay) the implementation of the old state decision.
Once the new tribunal submits its new award, the Central Government can write an order declaring that the old state decision (or parts of it) is no longer in operation.

Practical examples

1In July 1950, a Madras state authority ordered Royal Bank to pay a 15% bonus. The Central Government thinks this hurts national banking stability, so they refer the case to a Central Tribunal and stay (freeze) the Madras order.

2In September 1950, the Central Industrial Tribunal issues a new decision saying a 10% bonus is fair. The Central Government then issues a written order declaring that the old Madras State 15% bonus order has officially ceased to operate.

FAQ

1. What can the Central Government do to the old state award while the new tribunal is deciding?

The Central Government can stay (temporarily freeze or delay) the implementation of the state award or any part of it.

2. How long can the temporary stay on the state award last?

It lasts until the new Industrial Tribunal submits its award, or for any further period that the Central Government thinks is necessary.

3. What can the Central Government do once the new tribunal submits its award?

The Central Government can, by a written order, declare that the previous state-level award (or a specific part of it) ceases to be in operation.

Test yourself

Q1.What can the Central Government do to an existing state-level award under Section 6(1)?

Q2.What does "stay" mean in the phrase "stay the implementation of the award" in Section 6(1)?

Q3.Under what sub-section of the "said Act" does the new tribunal submit its award before the Central Government can declare the old award inactive?

Q4.How does the Central Government declare that a previous state award shall cease to be in operation?

Q5.Can the Central Government declare only a "part" of a previous state award to be inactive, rather than the entire award?

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