Section 58: Power to transfer proceedings

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

Statutory Mandate
Chapter VII: Mechanism for Resolution of Industrial Disputes
Competent Labour Forum
Act No. 35 of 2020

Legal Commentary & Landmark Judgments: Section 58

Section 58 of the Industrial Relations Code, 2020 empowers the appropriate Government to withdraw any pending proceeding from an Industrial Tribunal and transfer it to another Tribunal by a reasoned written order, permitting the transferee Tribunal to proceed de novo or from the current stage.

  • Administrative Withdrawal & Transfer Authority: Vests the appropriate Government with discretionary authority to transfer pending disputes between Tribunals to meet administrative exigencies or resolve institutional gridlocks.
  • Mandatory Reasoned Written Order: The Government is legally required to record its reasons in writing; unreasoned transfer orders violate the statute and are vulnerable to judicial review.
  • Transferee Tribunal Discretion: Transferee Tribunal may proceed either de novo or pick up the proceedings from the stage reached prior to transfer, subject to any specific directions in the transfer order.
Key Landmark Precedents:
  • Management of M/s Basti Sugar Mills Co. Ltd. v. State of U.P. AIR 1979 SC 262: Supreme Court held that administrative transfer of labour proceedings requires recording of objective reasons in writing to prevent arbitrary forum shopping.
  • Associated Electrical Industries (India) Pvt. Ltd. v. Its Workmen AIR 1967 SC 284: Supreme Court struck down an administrative transfer of an industrial reference where the Government failed to record reasons in the order, holding the requirement to be mandatory.
Courtroom Practice & Strategic Litigation Guidance:

When seeking transfer of a dispute due to institutional bias, prolonged vacancy, or jurisdictional convenience, submit a reasoned petition to the Labour Commissioner outlining the objective necessity. Ensure that the resulting Government order explicitly contains a statement of reasons to survive judicial challenge under Article 226.