State of Bombay v. K.P. Krishnan

1. Could the Government refuse reference under Section 12(5) only because workers adopted a go-slow?
2. Is the Section 12(5) discretion absolute, or must a reference be made when a prima facie case exists?

• Bounded discretion: Govt must rely on germane reasons (e.g., dispute is stale, frivolous, or legally untenable).
• No punitive refusal: Refusal cannot be used to punish worker misconduct like go-slow.
• Purpose of adjudication: Resolve disputes based on merits (e.g., profits/bonus), not worker conduct history.

• 12(5) not absolute: Govt must act on relevant, legal considerations and refer when a prima facie case exists.
• Go-slow ≠ valid reason: Refusal grounded only on go-slow is punitive and improper.
• Conciliation report matters: It indicated the bonus claim wasn’t frivolous—favouring reference.

Section 12(5) creates a duty to refer when a case is made out. Government’s refusal must rest on legally germane reasons. Punishing go-slow via refusal is outside the statute’s purpose.

• Prevents misuse of reference power as a disciplinary tool.
• Protects industrial adjudication as a forum for merits.
• Guides Governments to weigh relevant materials like failure reports.

• 12(5) ≠ free hand: Refer when a case exists.
• Go-slow is extraneous to bonus entitlement.
• Use germane reasons: stale/frivolous/legally untenable.

Mnemonic: “REFER ON MERIT, NOT MISCONDUCT”

1. Check Case: Is there a prima facie dispute?
2. Check Reasons: Use relevant legal grounds only.
3. No Punish: Don’t deny reference for go-slow.

Issue: Was refusal under 12(5) valid when based only on go-slow? Is 12(5) discretion absolute?

Rule: Discretion is bounded; must rely on relevant factors; duty to refer on prima facie case.

Application: Bonus claim had merit per failure report; Govt relied on extraneous go-slow; refusal invalid.

Conclusion: Mandamus upheld; reconsider on proper grounds.

Section 12(5)

After conciliation fails, Govt decides on reference; decision must use relevant, legal reasons.

Go-slow

Deliberate slowing of work; may invite discipline, but does not defeat a valid dispute’s reference.

Prima facie case

An apparent case on facts/law that warrants adjudication by a Tribunal.