Bombay High Court Dismisses Employer's Petition Challenging Labour Court's Finding of Perversity in Domestic Enquiry Against Workman. Concurrent Findings of Perversity Upheld as Inquiry Officer's Findings Were Based on No Evidence and Contrary to Record.

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

The petitioner, M/s Crane Process Flow Technologies Pvt. Ltd., an engineering company, challenged the judgment and order of the Industrial Court, Satara, dated 11 June 2021, which dismissed its revision application against the Labour Court's award dated 27 January 2020. The Labour Court had held that the findings of the Inquiry Officer in the domestic enquiry against the respondent-workman, Amol V. Waghmale, were perverse. The respondent was appointed as a trainee operator on 13 November 2009 and confirmed in 2011. He was the president of the trade union. On 18 April 2017, the respondent allegedly entered the shop floor without authority while not on duty, behaved indecently, made other workmen stop work on the pretext of a casual worker being employed, and threatened the production supervisor, Mr. Adsul, with dire consequences. A show cause notice was issued on 2 May 2017, and a charge-sheet was served on 11 May 2017 alleging misconduct under Clauses 24-K, 24-L, 24-Q, and 24-R of the Standing Orders. A domestic enquiry was held, and the Inquiry Officer found the respondent guilty. The respondent then filed a complaint under the Industrial Disputes Act, 1947, challenging the enquiry. The Labour Court, after considering the evidence, held that the findings of the Inquiry Officer were perverse as they were based on no evidence and contrary to the material on record. The Industrial Court upheld this view in revision. The High Court, in the present writ petition, examined the scope of judicial review under Article 227 of the Constitution and found that the concurrent findings of the Labour Court and Industrial Court were not perverse or erroneous. The High Court noted that the Labour Court had meticulously analyzed the evidence and correctly concluded that the findings of the Inquiry Officer were perverse. The High Court dismissed the petition, upholding the orders of the lower courts.

Headnote

A) Industrial Law - Domestic Enquiry - Perversity of Findings - Section 11-A, Industrial Disputes Act, 1947 - The Labour Court held that the findings of the Inquiry Officer were perverse as they were based on no evidence and contrary to the material on record. The Industrial Court upheld this view in revision. The High Court declined to interfere, holding that the concurrent findings of perversity were not shown to be erroneous or perverse themselves. (Paras 1-17)

B) Industrial Law - Revision - Scope of Interference - Section 44, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court, in revision, can examine whether the Labour Court's decision is perverse or erroneous in law. The High Court, under Article 227, can interfere only if the subordinate court's order is perverse or without jurisdiction. (Paras 2-17)

C) Industrial Law - Misconduct - Threat and Disorderly Behaviour - Clauses 24-K, 24-L, 24-Q, 24-R of Standing Orders - The workman was charged with entering the shop floor without authority, behaving indecently, stopping work, and threatening a supervisor. The Inquiry Officer found him guilty, but the Labour Court found the findings perverse due to lack of evidence and contradictions in testimony. (Paras 3-17)

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Issue of Consideration

Whether the Labour Court and Industrial Court erred in holding that the findings of the Inquiry Officer in the domestic enquiry against the respondent-workman were perverse, and whether the High Court should interfere with such concurrent findings.

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Final Decision

The High Court dismissed the writ petition, upholding the orders of the Labour Court and Industrial Court. The rule was discharged with no order as to costs.

Law Points

  • Perversity of findings in domestic enquiry
  • Scope of judicial review under Industrial Disputes Act
  • 1947
  • Section 11-A
  • Standard of proof in disciplinary proceedings
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Case Details

2023 LawText (BOM) (03) 45

Writ Petition No.-7238 of 2021

2023-03-29

N. J. Jamadar, J.

Mr. Kiran Bapat, Senior Counsel a/w Mr. Gaurav Gawande i/b Jayesh Desai, for Petitioner; Mr. Nitin A. Kulkarni, for Respondent.

M/s Crane Process Flow Technologies Pvt. Ltd.

Mr. Amol V. Waghmale

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Nature of Litigation

Writ petition under Article 227 of the Constitution challenging the order of the Industrial Court dismissing revision against Labour Court's award holding findings of domestic enquiry as perverse.

Remedy Sought

Petitioner-employer sought to quash the order of the Industrial Court and uphold the findings of the Inquiry Officer in the domestic enquiry.

Filing Reason

The employer was aggrieved by the concurrent findings of the Labour Court and Industrial Court that the findings of the Inquiry Officer were perverse.

Previous Decisions

Labour Court (Presiding Officer, Labour Court, Satara) in Complaint (IDA) No.30 of 2018 held that the findings of the Inquiry Officer were perverse. Industrial Court (Member, Industrial Court, Satara) in Revision Application (ULP) No.4 of 2020 dismissed the employer's revision and upheld the Labour Court's award.

Issues

Whether the Labour Court and Industrial Court erred in holding that the findings of the Inquiry Officer were perverse? Whether the High Court should interfere with the concurrent findings of the lower courts under Article 227?

Submissions/Arguments

Petitioner argued that the Labour Court exceeded its jurisdiction by re-appreciating evidence and substituting its own findings for those of the Inquiry Officer. Respondent argued that the findings of the Inquiry Officer were perverse as they were based on no evidence and contrary to the material on record.

Ratio Decidendi

The High Court held that the Labour Court and Industrial Court correctly found the Inquiry Officer's findings to be perverse as they were based on no evidence and contrary to the record. The High Court, under Article 227, cannot interfere with concurrent findings unless they are perverse or without jurisdiction, which was not the case.

Judgment Excerpts

This Petition takes exception to a judgment and order passed by the learned Member Industrial Court, Satara in Revision Application (ULP) No. 4 of 2020, dated 11th June, 2021, whereby the Revision Application preferred by the petitioner-employer came to be dismissed upholding the judgment and award (part-1) dated 27th January, 2020, passed by the learned Presiding Officer, Labour Court in complaint (IDA) No.30 of 2018, preferred by the respondent-workman holding that the findings recorded by the Inquiry Officer in the Departmental Enquiry instituted against the respondent were perverse. The Labour Court, after considering the evidence, held that the findings of the Inquiry Officer were perverse as they were based on no evidence and contrary to the material on record.

Procedural History

The respondent-workman filed a complaint (IDA) No.30 of 2018 before the Labour Court, Satara, challenging the domestic enquiry. The Labour Court passed an award on 27 January 2020 holding the findings of the Inquiry Officer as perverse. The petitioner-employer filed Revision Application (ULP) No.4 of 2020 before the Industrial Court, Satara, which was dismissed on 11 June 2021. The employer then filed the present writ petition before the High Court of Bombay.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 11-A
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 44
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