Bombay High Court Dismisses Petition Challenging Industrial Court's Territorial Jurisdiction in Unfair Labour Practice Complaint Filed by Union for Employee Posted Outside Maharashtra. The Court held that the Industrial Court under MRTU & PULP Act has jurisdiction if the employer's establishment is within Maharashtra, even if the employee works outside the state.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The Petitioner, M/s. Abbott India Ltd., a pharmaceutical company incorporated under the Indian Companies Act, 1956, and its officer Mr. Jitendra Wadhwani, challenged an order dated 1 January 2024 passed by the Industrial Court, Mumbai. The Industrial Court had rejected the Petitioner's application raising a preliminary issue regarding territorial jurisdiction in Complaint (ULP) No. 192 of 2023 filed by the Respondent, All India Abbott Employees Union. The Respondent-Union had filed the complaint on behalf of Mr. Sandeep Kumar Dixit, a Territory Business Developer employed by the Petitioner, who was posted at Raebareli in Uttar Pradesh. The complaint alleged unfair labour practices concerning a change in his territory configuration. The Petitioner contended that since Mr. Dixit was employed and worked outside Maharashtra, the Industrial Court established under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) lacked territorial jurisdiction. The Respondent-Union argued that the Petitioner's registered office and establishment were in Mumbai, Maharashtra, and therefore the Industrial Court had jurisdiction. The Court noted that this was not the first time the issue of jurisdiction had been raised between the parties; previous legal battles had resulted in decisions by the Bombay High Court upholding the jurisdiction of the Industrial Court. The Court examined the provisions of the MRTU & PULP Act and the precedents cited. It held that the Industrial Court's jurisdiction under the Act is determined by the location of the employer's establishment, not the place of employment of the individual employee. Since the Petitioner's establishment was in Maharashtra, the Industrial Court had jurisdiction to entertain the complaint filed by the Union on behalf of its member, even though the employee worked outside the state. The Court dismissed the writ petition, upholding the Industrial Court's order and confirming its territorial jurisdiction.

Headnote

A) Industrial Law - Territorial Jurisdiction - MRTU & PULP Act, 1971 - Section 5, 7 - The Industrial Court under the MRTU & PULP Act has jurisdiction to entertain a complaint if the employer's establishment is situated within the State of Maharashtra, even if the employee concerned works outside Maharashtra. The Court held that the place of employment of the individual employee is not the sole determinant of jurisdiction; the location of the employer's establishment is relevant. (Paras 2, 10-15)

B) Industrial Law - Unfair Labour Practice - Complaint by Union - MRTU & PULP Act, 1971 - Section 28 - A union registered under the Trade Unions Act, 1926 can file a complaint under the MRTU & PULP Act on behalf of its members. The Industrial Court has jurisdiction to entertain such complaint if the union's members are employed in the establishment situated in Maharashtra. (Paras 2, 10-15)

C) Industrial Law - Precedent - Jurisdiction - MRTU & PULP Act, 1971 - The Court relied on previous decisions of the Bombay High Court in similar matters between the same parties, which had upheld the jurisdiction of the Industrial Court. (Paras 10-15)

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Issue of Consideration

Whether the Industrial Court established under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 has territorial jurisdiction to entertain a complaint filed by a union on behalf of an employee who is posted outside Maharashtra, when the employer's registered office is in Maharashtra.

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Final Decision

The Bombay High Court dismissed the writ petition, upholding the Industrial Court's order dated 1 January 2024 and confirming that the Industrial Court has territorial jurisdiction to entertain the complaint.

Law Points

  • Territorial jurisdiction of Industrial Court under MRTU & PULP Act
  • 1971
  • Unfair labour practice complaint by union
  • Place of employment vs. place of establishment
  • Cause of action
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Case Details

2024 LawText (BOM) (03) 100

WRIT PETITION (LODG.) NO. 4064 OF 2024

2024-03-22

SANDEEP V. MARNE, J.

2024:BHC-OS:4958

Mr. V.P. Sawant, Senior Advocate with Mrs. N.R. Patankar, Mr. Prabhakar M. Jadhav and Ms. Tanaya Patankar for the Petitioners; Mr. A.S. Peerzada with Mr. Iqbal Shaikh for the Respondent

M/s. Abbott India Ltd. & Anr.

All India Abbott Employees Union

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Nature of Litigation

Writ petition challenging order of Industrial Court rejecting preliminary objection on territorial jurisdiction in an unfair labour practice complaint.

Remedy Sought

Petitioners sought quashing of the Industrial Court's order dated 1 January 2024 and dismissal of the complaint for lack of territorial jurisdiction.

Filing Reason

Petitioners challenged the jurisdiction of the Industrial Court to entertain a complaint filed by the Respondent-Union on behalf of an employee posted outside Maharashtra.

Previous Decisions

The Industrial Court had rejected the Petitioner's application raising preliminary issue of territorial jurisdiction. Previous decisions of the Bombay High Court in similar matters between the same parties had upheld the jurisdiction of the Industrial Court.

Issues

Whether the Industrial Court under the MRTU & PULP Act has territorial jurisdiction to entertain a complaint filed by a union on behalf of an employee who works outside Maharashtra, when the employer's establishment is in Maharashtra.

Submissions/Arguments

Petitioners argued that since the employee Mr. Sandeep Kumar Dixit is posted at Raebareli, Uttar Pradesh, outside Maharashtra, the Industrial Court in Maharashtra has no jurisdiction. Respondent-Union argued that the Petitioner's registered office and establishment are in Mumbai, Maharashtra, and therefore the Industrial Court has jurisdiction under the MRTU & PULP Act.

Ratio Decidendi

The territorial jurisdiction of the Industrial Court under the MRTU & PULP Act is determined by the location of the employer's establishment, not the place of employment of the individual employee. Since the employer's establishment is in Maharashtra, the Industrial Court has jurisdiction over complaints filed by a union on behalf of its members, even if the employee works outside the state.

Judgment Excerpts

Petitioner challenges the Order dated 1 January 2024 passed by the Industrial Court rejecting Petitioner’s Application raising the preliminary issue of territorial jurisdiction in Complaint (ULP) No. 192 of 2023 filed by Respondent-Union to espouse the cause of Mr. Sandeep Kumar Dixit, a Territory Business Developer posted at Raebareli with regard to alleged change of his territory configuration. It must be observed here that this is not the first time that the issue of jurisdiction of Industrial Courts in Maharashtra to decide complaints filed by the Respondent-Union is raised before this Court.

Procedural History

The Respondent-Union filed Complaint (ULP) No. 192 of 2023 before the Industrial Court, Mumbai, on behalf of Mr. Sandeep Kumar Dixit. The Petitioner filed an application raising a preliminary objection regarding territorial jurisdiction. The Industrial Court rejected that application by order dated 1 January 2024. The Petitioner then filed the present writ petition before the Bombay High Court challenging that order.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 5, Section 7, Section 28
  • Trade Unions Act, 1926:
  • Indian Companies Act, 1956:
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