STATE OF BOMBAY vs K. P. KRISHNAN AND OTHERS. (AND CONNECTED APPEAL)

The Supreme Court held that Section 10(1) of the Industrial Disputes Act, 1947, grants the appropriate Government the power to make a reference for adjudication, while Section 12(5) requires the Government to communicate reasons for refusal that are relevant to the dispute. The Court found that the Government's refusal to refer a dispute regarding employee classification and bonus, based solely on the employees' go-slow tactics, was punitive and based on irrelevant considerations. Consequently, the Court issued a writ of mandamus, emphasizing that the claim for bonus was justified by profits and aligned with industrial adjudication principles.