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Section 37: Interpretation of standing orders

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IV: Standing Orders
Competent Labour Forum
Act No. 35 of 2020
Section 36 All 104 Sections of Industrial Relations Code, 2020 Section 38

Legal Commentary & Landmark Judgments: Section 37

Section 37 of the Industrial Relations Code, 2020 establishes the exclusive statutory mechanism for the interpretation and application of certified standing orders, empowering employers, workers, or registered Trade Unions to refer unresolved interpretive questions directly to the Industrial Tribunal, whose decision is rendered final, conclusive, and binding on all parties.

  • Statutory Locus Standi for Reference: Confers an express, non-delegable right upon three distinct industrial entities—the employer, an affected worker, or a registered Trade Union representing workers—to refer any question concerning the interpretation or application of certified standing orders to the competent Industrial Tribunal.
  • Quasi-Judicial Inquisitorial Mandate & Natural Justice: The Industrial Tribunal is statutorily mandated to afford all interested parties a reasonable opportunity of being heard prior to pronouncing its determination; the Tribunal operates within the boundary of interpreting certified language without reforming or rewriting contractual terms.
  • Absolute Finality & Civil Court Ouster: Explicitly declares that the decision of the Tribunal shall be final and binding, thereby operating in tandem with Section 9 of the Code of Civil Procedure to completely oust the jurisdiction of ordinary civil courts over disputes arising from standing orders.
Key Landmark Precedents:
  • Rajasthan State Road Transport Corp. v. Krishna Kant (1995) 5 SCC 75: A 3-Judge Bench of the Supreme Court laid down definitive principles governing labour jurisdiction, holding that certified standing orders constitute statutory conditions of service and any dispute as to their interpretation or enforcement falls exclusively within the industrial forum, barring civil suits.
  • Premier Automobiles Ltd. v. Kamlekar Shantaram Wadke (1976) 1 SCC 496: The Supreme Court established the four classic tests governing the jurisdictional divide between civil courts and industrial tribunals, ruling that rights created under industrial statutes and standing orders can be enforced only before specialized labour tribunals.
  • Sudhir Chandra Sarkar v. Tata Iron and Steel Co. Ltd. (1984) 3 SCC 369: Ruled that certified standing orders possess statutory force and operate as binding conditions of service, prevailing over inconsistent individual employment contracts or managerial discretion.
Courtroom Practice & Strategic Litigation Guidance:

In industrial practice, whenever management or a trade union faces conflicting interpretations of clauses regarding classification, promotion criteria, or transfer mobility in certified standing orders, do not seek declaratory relief before civil courts. Draft a comprehensive reference petition under Section 37 directly to the Industrial Tribunal, framing precise questions of interpretation and annexing the certified standing orders alongside proof of trade union registration.

Section 36 All 104 Sections of Industrial Relations Code, 2020 Section 38