Bombay High Court Allows Employer's Petition in Industrial Dispute — Ex-Parte Enquiry Upheld as Valid Despite Workman's Absence. Employer's Duty to Provide Reasonable Opportunity Satisfied by Sending Notices to Last Known Address; Workman Cannot Claim Violation of Natural Justice by Refusing to Accept Notices.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
  • 68
Judgement Image
Font size:
Print

Case Note & Summary

The Petitioner, Sandoz Private Limited, challenged the judgment and order dated 11 September 2019 passed by the Industrial Court, Thane in Revision Application (ULP) No. 10/2017. The Industrial Court had set aside the Labour Court's orders dated 3 March 2015 (Part-I) and 27 December 2015 (Part-II), holding that the domestic enquiry conducted against the Respondent-workman was illegal, and remanded the complaint for fresh decision. The Respondent was initially employed by M/s. Ciba CKD Biochem Ltd. and later became the Petitioner's workman after the Petitioner took over the manufacturing plant. The Petitioner initiated a domestic enquiry against the Respondent by issuing a chargesheet dated 21 October 2009 alleging unauthorized absence from 27 September 2009 and 70 days of absence between July 2007 and October 2009. The chargesheet itself fixed the enquiry date as 30 October 2009. The Respondent received the chargesheet but failed to participate in the enquiry. The Petitioner conducted the enquiry ex-parte from 30 October 2009 to 10 February 2010, holding six sittings. Notices for each sitting were sent to the Respondent's address on record, but envelopes were returned with remarks 'left address' or 'refused to accept'. The Enquiry Officer submitted a report on 25 February 2010 holding the charge proved. The report was sent to the Respondent but returned with remark 'left address not known'. The Labour Court, in Part-I order, upheld the enquiry as fair and proper. In Part-II, it held that the punishment of dismissal was disproportionate and directed reinstatement without back wages. The Industrial Court, in revision, set aside both orders, holding that the Petitioner should have made further efforts to trace the Respondent's address. The High Court found that the Industrial Court exceeded its revisional jurisdiction by reappreciating evidence. It held that the Petitioner had provided reasonable opportunity by sending notices to the last known address, and the Respondent's refusal to accept or failure to update his address cannot be held against the employer. The High Court set aside the Industrial Court's order and restored the Labour Court's orders, with a modification that the Respondent is entitled to 25% back wages instead of full back wages from the date of dismissal till reinstatement.

Headnote

A) Industrial Law - Domestic Enquiry - Ex-Parte Proceedings - Reasonable Opportunity - The employer must provide reasonable opportunity to the workman to defend himself in a domestic enquiry. Sending notices to the workman's last known address, which are returned with remarks 'left address' or 'refused to accept', constitutes sufficient service. The workman cannot later claim violation of natural justice if he fails to participate despite such service. (Paras 1-11)

B) Industrial Law - Revision Application - Scope of Interference - Industrial Court under Section 44 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) - The Industrial Court, in revision, cannot reappreciate evidence like an appellate court. It can only interfere if the Labour Court's findings are perverse or based on no evidence. Setting aside a well-reasoned Labour Court order on the ground that the employer should have made further efforts to trace the workman is beyond the revisional jurisdiction. (Paras 12-14)

C) Industrial Law - Enquiry Officer's Report - Validity - The Enquiry Officer's report, based on evidence of the employer's witnesses and the workman's absence, is valid. The workman's failure to participate despite notice does not render the enquiry illegal. The Labour Court correctly upheld the enquiry as fair and proper. (Paras 8-11)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Industrial Court erred in setting aside the Labour Court's orders and holding the domestic enquiry illegal, despite the workman having refused to accept notices and failed to participate in the enquiry.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the petition, set aside the Industrial Court's order dated 11 September 2019, and restored the Labour Court's orders dated 3 March 2015 and 27 December 2015 with a modification that the Respondent is entitled to 25% back wages from the date of dismissal till reinstatement.

Law Points

  • Industrial Dispute
  • Domestic Enquiry
  • Ex-Parte Proceedings
  • Reasonable Opportunity
  • Natural Justice
  • Service of Notice
  • Refusal to Accept
  • Left Address
Subscribe to unlock Law Points Subscribe Now

Case Details

2023 LawText (BOM) (10) 158

Writ Petition No. 16092 of 2022

2023-10-03

Sandeep V. Marne

2023:BHC-AS:28895

Mr. Avinash Jalisatgi a/w. Mr. Divya Wadekar i/by. Mr. Satish C. Hegde, for the Petitioner. Mr. Suresh Kamble, for the Respondent.

Sandoz Private Limited

Mahadeo Gajanand Narale

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging the Industrial Court's order setting aside Labour Court's orders upholding domestic enquiry and directing reinstatement.

Remedy Sought

Petitioner sought quashing of Industrial Court's order and restoration of Labour Court's orders.

Filing Reason

Industrial Court exceeded its revisional jurisdiction by reappreciating evidence and holding enquiry illegal despite workman's failure to participate.

Previous Decisions

Labour Court Part-I order dated 3 March 2015 upheld enquiry as fair; Part-II order dated 27 December 2015 held punishment disproportionate and directed reinstatement without back wages. Industrial Court set aside both orders on 11 September 2019.

Issues

Whether the Industrial Court erred in setting aside the Labour Court's orders and holding the domestic enquiry illegal. Whether the employer provided reasonable opportunity to the workman in the domestic enquiry.

Submissions/Arguments

Petitioner argued that the Industrial Court exceeded its revisional jurisdiction by reappreciating evidence and that the Labour Court correctly upheld the enquiry as the workman refused to accept notices. Respondent argued that the employer should have made further efforts to trace his address and that the enquiry was conducted in violation of natural justice.

Ratio Decidendi

In a domestic enquiry, the employer satisfies the requirement of providing reasonable opportunity by sending notices to the workman's last known address. If the workman refuses to accept or fails to update his address, the enquiry cannot be held illegal. The Industrial Court, in revisional jurisdiction under Section 44 of the MRTU & PULP Act, cannot reappreciate evidence like an appellate court and can only interfere if findings are perverse.

Judgment Excerpts

The Industrial Court has clearly exceeded its jurisdiction in reappreciating the evidence and setting aside the well-reasoned orders of the Labour Court. The Petitioner had provided reasonable opportunity to the Respondent by sending notices to his last known address. The Respondent cannot be allowed to take advantage of his own wrong in refusing to accept the notices.

Procedural History

The Labour Court passed Part-I order on 3 March 2015 upholding the enquiry as fair and proper. Part-II order on 27 December 2015 held the punishment disproportionate and directed reinstatement without back wages. The Respondent filed Revision Application (ULP) No. 10/2017 before the Industrial Court, Thane, which allowed the revision on 11 September 2019, setting aside the Labour Court's orders and remanding the matter. The Petitioner challenged this order in the High Court by filing Writ Petition No. 16092 of 2022, which was allowed on 3 October 2023.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act): Section 44
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Writ Petition Challenging No Confidence Motion Against Sarpanch Due to Insufficient Notice Period. Notice Period of 15 Days Under Section 35 of Maharashtra Village Panchayats Act, 1959 Must Exclude Date of Notice and Date of ...
Related Judgement
High Court Bombay High Court Upholds Tribunal's Review Order in Agricultural Tenancy Purchase Price Dispute. Review Allowed Based on Tahsildar Certificate and Unchallenged Section 88C Exemption Certificate Under Bombay Tenancy and Agricultural Lands Act, 1948.