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Section 95: Power of officers of appropriate Government to impose penalty

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

Statutory Mandate
Chapter XIII: Offences and Penalties
Competent Labour Forum
Act No. 35 of 2020
Section 94 All 104 Sections of Industrial Relations Code, 2020 Section 96

Legal Commentary & Landmark Judgments: Section 95

Section 95 of the Industrial Relations Code, 2020 provides a specialized statutory reference mechanism empowering the appropriate Government to refer questions of interpretation or ambiguity in any industrial award or settlement to the Industrial Tribunal for definitive clarification, precluding fresh industrial disputes.

  • Statutory Reference for Clarification of Doubts: If, in the opinion of the appropriate Government, any difficulty or doubt arises as to the interpretation of any provision of an award or settlement, it may refer the question to such Industrial Tribunal as it thinks fit.
  • Adjudication and Binding Character: The Industrial Tribunal shall afford the parties a reasonable opportunity of being heard and decide the question; such decision shall be final and binding on all parties to the award or settlement.
  • Strictly Declaratory and Interpretive Jurisdiction: The Tribunal exercising jurisdiction under Section 95 is restricted strictly to clarifying patent ambiguities or latent doubts in the existing text; it has no jurisdiction to modify, amend, rewrite, or expand the substantive terms of the underlying award or settlement.
Key Landmark Precedents:
  • Central Bank of India v. P.S. Rajagopalan AIR 1964 SC 743: The Supreme Court held that Section 36A of the IDA (now Section 95) is designed to resolve ambiguities in awards or settlements upon government reference, distinct from execution proceedings under Section 33C(2) which enforce established monetary claims.
  • Voltas Ltd. v. J.M. Demello (1971) 2 SCC 479: Clarified that the industrial tribunal exercising interpretation jurisdiction cannot reopen the dispute on merits or alter the underlying award; its function is purely explanatory and clarificatory.
  • Workmen of Balmer Lawrie & Co. v. Balmer Lawrie & Co. AIR 1964 SC 728: Held that where terms of a settlement are plain and clear, Section 36A cannot be invoked to create a new contract between the parties under the guise of statutory interpretation.
Courtroom Practice & Strategic Litigation Guidance:

When a long-term settlement or tribunal award contains conflicting clauses regarding bonus computation, variable dearness allowance indexation, or fitment formulas, do not initiate fresh conciliation or file a breach complaint. Submit a representation to the Labour Department for a reference under Section 95. In framing the question, draft the issue purely as an interpretative dilemma without seeking any modification of agreed financial terms.

Section 94 All 104 Sections of Industrial Relations Code, 2020 Section 96