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Section 59: Cost of 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
Section 58 All 104 Sections of Industrial Relations Code, 2020 Section 60

Legal Commentary & Landmark Judgments: Section 59

Section 59 of the Industrial Relations Code, 2020 vests the Industrial Tribunal with full judicial discretion to award, apportion, and direct the payment of costs of and incidental to any proceeding, serving as an equitable tool to deter frivolous litigation and support vulnerable litigants.

  • Full Judicial Discretion Over Costs: Costs of and incidental to any proceeding before a Tribunal are within its absolute discretion, determining liability, quantum, and payment conditions.
  • Compensatory and Incidental Scope: Permits awarding travel allowances, lost daily wages, and legal costs incurred by workers compelled to defend unmerited litigation.
  • Deterrence Against Vexatious Litigation: Empowers the Tribunal to penalize bad-faith delay tactics, frivolous adjournments, and unsubstantiated claims through exemplary costs.
Key Landmark Precedents:
  • Punjab National Bank Ltd. v. Industrial Tribunal AIR 1957 SC 276: Supreme Court held that costs in industrial adjudication are within the judicial discretion of the tribunal, but such discretion must be exercised reasonably and on established principles.
  • Rohtas Industries Ltd. v. Brijnandan Pandey AIR 1957 SC 1: Affirmed that costs cannot be imposed arbitrarily or punitively without justifiable evidentiary basis.
Courtroom Practice & Strategic Litigation Guidance:

When representing workers facing prolonged, well-funded corporate litigation, file interim applications under Section 59 for litigation expenses and travel costs. Employers should invoke Section 59 to seek exemplary costs against frivolous, repeated strike-related petitions filed without legal basis.

Section 58 All 104 Sections of Industrial Relations Code, 2020 Section 60