National Tribunal is a specialised adjudicatory body constituted exclusively by the Central Government under Section 7B of the Industrial Disputes Act, 1947, for the adjudication of industrial disputes that involve questions of national importance or that affect industrial establishments situated in more than one state. Under Indian law, it is the highest tier of the labour adjudication machinery established by the Act.
Legal definition
The Industrial Disputes Act, 1947 establishes national tribunals:
Section 7B(1): The Central Government may, by notification in the Official Gazette, constitute one or more National Tribunals for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such disputes.
The presiding officer of a national tribunal must be or have been a Judge of a High Court. Only the Central Government has the power to constitute a national tribunal and to refer disputes to it.
The national tribunal has jurisdiction over matters specified in both the Second Schedule and the Third Schedule, and where a dispute has been referred to a national tribunal, no labour court or industrial tribunal can adjudicate any matter that is the subject of the reference. The award of a national tribunal is binding on all parties and is enforceable in the same manner as an award of an industrial tribunal.
New law equivalent: The Industrial Relations Code, 2020, Section 46 provides for the constitution of a "National Industrial Tribunal" by the Central Government for disputes involving questions of national importance or multi-state impact, retaining substantially similar qualifications and jurisdiction.
How courts have interpreted this term
All India Bank Employees Association v. National Industrial Tribunal [AIR 1962 SC 171]
In this landmark case, the Supreme Court upheld the constitutional validity of the reference of a banking industry dispute to the National Industrial Tribunal. The Court held that the NIT exercises quasi-judicial functions and its award is binding on all banking establishments across India. The Court also clarified that while the right to form associations is a fundamental right under Article 19(1)(c), the right to strike is not a fundamental right and can be regulated by the legislature.
National Industrial Tribunal (Second) v. Management of Express Newspapers [(1963) 2 LLJ 227 (SC)]
The Supreme Court held that the national tribunal must confine itself to the terms of reference and cannot exceed its jurisdiction. However, within the scope of the reference, the tribunal has wide powers to examine all relevant material and fashion appropriate relief. The award of a national tribunal takes precedence over any inconsistent award of a state-level industrial tribunal.
Why this matters
The national tribunal is a rarely constituted but critically important body in Indian industrial relations. It is invoked for disputes of the highest significance — typically industry-wide disputes affecting banking, insurance, coal, steel, or other sectors with establishments across multiple states. The Desai Award (banking), the Palekar Award (banking), and similar industry-wide awards that shaped employment conditions in the banking sector were products of national tribunal adjudication.
For practitioners, the practical significance of a national tribunal reference lies in its pre-emptive effect. Once a dispute is referred to the national tribunal, no state-level labour court or industrial tribunal can adjudicate any matter that is part of the reference. This centralises adjudication and ensures uniformity of terms across establishments in different states.
For unions and employers in nationally significant industries, a national tribunal award has profound implications because it establishes uniform employment conditions — wages, bonus, working hours, and service conditions — across the entire industry. The compliance and financial burden of a national tribunal award falls simultaneously on all establishments in the sector.
Related terms
Related adjudicatory bodies:
Broader concepts:
Related processes:
Frequently asked questions
When is a dispute referred to a national tribunal instead of an industrial tribunal?
A national tribunal is constituted when the Central Government is of the opinion that the dispute involves questions of national importance or affects industrial establishments in more than one state. Typical examples include industry-wide disputes in banking, insurance, or coal sectors where the terms of employment need to be settled uniformly across states.
Can a state government constitute a national tribunal?
No. Only the Central Government has the power to constitute a national tribunal under Section 7B. State governments can constitute labour courts (Section 7) and industrial tribunals (Section 7A) within their respective jurisdictions, but disputes of national importance are within the exclusive domain of the Central Government.
How does a national tribunal award differ from a state-level tribunal award?
A national tribunal award has nationwide application and binds all establishments covered by the reference across all states. It takes precedence over any inconsistent award of a state-level industrial tribunal. The enforcement mechanism is the same — the award becomes enforceable 30 days after publication and remains in operation for one year, extendable by the Central Government.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.