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Section 43: Investigation of industrial disputes by Arbitrator

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

Statutory Mandate
Chapter VI: Voluntary Reference of Disputes to Arbitration
Competent Labour Forum
Act No. 35 of 2020
Section 42 All 104 Sections of Industrial Relations Code, 2020 Section 44

Legal Commentary & Landmark Judgments: Section 43

Section 43 of the Industrial Relations Code, 2020 codifies the statutory duty of voluntary arbitrators to thoroughly investigate referred industrial disputes and submit a duly signed arbitration award to the appropriate Government for publication and enforceability.

  • Statutory Duty of Inquisitorial Investigation: Arbitrators are not passive arbiters; they are legally charged with investigating every substantive dimension of the industrial dispute to formulate an equitable, workable settlement.
  • Adherence to Principles of Natural Justice: The investigation must strictly observe audi alteram partem; arbitrators must receive evidence, hear arguments, and ensure equal treatment of all participating workers and employers.
  • Execution and Formal Submission of the Award: The award must be drawn up in writing, signed by all concurring arbitrators (or the statutory umpire), and formally transmitted to the appropriate Government.
Key Landmark Precedents:
  • Workmen of M/s Delhi Cloth and General Mills Ltd. v. Management (1972) 1 SCC 595: Supreme Court ruled that the adjudicator or arbitrator cannot travel beyond the terms of reference, but has full ancillary jurisdiction to investigate all incidental matters necessary for effective adjudication.
  • Express Newspapers Ltd. v. Their Workers AIR 1963 SC 569: Held that an industrial adjudicator has a positive legal duty to investigate preliminary jurisdictional questions and the genuine economic realities underpinning the dispute.
Courtroom Practice & Strategic Litigation Guidance:

Arbitrators conducting proceedings under Section 43 must formulate structured terms of reference, maintain verbatim minutes of evidence, and issue reasoned, speaking awards. Practitioners appearing before arbitrators should tender affidavit evidence with marked exhibits, ensuring the award demonstrates active investigation of financial capacity and comparative industry wage rates.

Section 42 All 104 Sections of Industrial Relations Code, 2020 Section 44