Bombay High Court Upholds Reinstatement of Daily Wagers in Forest Department Termination Case. Oral Termination Without Due Process Constitutes Unfair Labour Practice Under MRTU and PULP Act.

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

The case involves four writ petitions filed by the State of Maharashtra through the Forest Department challenging the judgment and order dated 19 November 2015 passed by the Judge, First Labour Court, Nashik, and the subsequent orders of the Industrial Court dated 27 September 2017. The Labour Court had allowed complaints filed by the respondents (daily wager employees) under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act), directing their reinstatement on original posts as daily wagers with continuity of service and full back wages from 01 January 2006. The respondents were engaged as daily wagers by the Forest Department between 1994 and 1997 and performed various duties under the supervision of forest officials. Their services were orally terminated from 01 January 2006 after they filed complaints seeking regularisation. The Labour Court found that the termination constituted an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act. The Industrial Court dismissed the revision applications filed by the petitioners. The High Court examined the findings of the Labour Court and Industrial Court and found no perversity or illegality. The court noted that the respondents had completed more than 240 days of continuous service and were entitled to protection under Section 25-F of the Industrial Disputes Act, 1947. The oral termination without notice or compensation was illegal. The High Court upheld the orders of reinstatement with continuity of service and full back wages, dismissing all four petitions.

Headnote

A) Labour Law - Unfair Labour Practice - Oral Termination - Section 28, MRTU and PULP Act, 1971 - The Labour Court found that the respondents' services were orally terminated from 01 January 2006 without any notice or compensation, which amounted to an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act. The court held that the termination was illegal and directed reinstatement with continuity of service and full back wages. (Paras 1-5)

B) Labour Law - Reinstatement - Back Wages - Section 30, MRTU and PULP Act, 1971 - The Labour Court ordered reinstatement on original posts as daily wagers with continuity of service and full back wages from 01 January 2006. The Industrial Court upheld this order. The High Court found no perversity in the findings and dismissed the petitions. (Paras 6-10)

C) Labour Law - Retrenchment - Compliance with Section 25-F, Industrial Disputes Act, 1947 - The termination of daily wagers without following the procedure under Section 25-F of the Industrial Disputes Act, 1947, renders the retrenchment illegal. The court held that the respondents had completed 240 days of continuous service and were entitled to protection under the Act. (Paras 11-15)

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Issue of Consideration

Whether the oral termination of services of daily wager employees by the Forest Department without following due process constitutes an unfair labour practice under the MRTU and PULP Act, and whether the Labour Court's order of reinstatement with full back wages is sustainable.

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Final Decision

The High Court dismissed all four writ petitions, upholding the orders of the Labour Court and Industrial Court directing reinstatement of the respondents with continuity of service and full back wages from 01 January 2006.

Law Points

  • Unfair Labour Practice
  • Oral Termination
  • Reinstatement
  • Back Wages
  • Daily Wagers
  • MRTU and PULP Act
  • Section 28
  • Section 30
  • Industrial Disputes Act
  • Section 25-F
  • Section 25-G
  • Section 25-H
  • Retrenchment
  • Regularisation
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Case Details

2023 LawText (BOM) (11) 24

Writ Petition No.5674 of 2022 with Writ Petition No.5675 of 2022 with Writ Petition No.6054 of 2019 with Writ Petition No.9325 of 2021

2023-11-04

Sandeep V. Marne

2023:BHC-AS:33909

K.S. Thorat (AGP for Petitioners), Seema Sarnaik (Advocate for Respondent in WP/5674/2022 & WP/5675/2022)

State of Maharashtra through Range Forest Officer, Yeola Range and Conservator of Forest, Nashik Circle

Machindra Hariman Thakare

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Nature of Litigation

Writ petitions challenging the Labour Court and Industrial Court orders directing reinstatement of daily wagers with back wages.

Remedy Sought

Petitioners (State Forest Department) sought to quash the orders of the Labour Court and Industrial Court.

Filing Reason

The respondents' services were orally terminated from 01 January 2006 after they sought regularisation, leading to complaints under MRTU and PULP Act.

Previous Decisions

Labour Court allowed complaints on 19 November 2015; Industrial Court dismissed revision applications on 27 September 2017.

Issues

Whether the oral termination of daily wagers without following due process constitutes an unfair labour practice under the MRTU and PULP Act. Whether the Labour Court's order of reinstatement with full back wages is sustainable.

Submissions/Arguments

Petitioners argued that the respondents were not workmen and that the termination was justified. Respondents argued that their services were terminated orally without notice or compensation, violating Section 25-F of the Industrial Disputes Act.

Ratio Decidendi

The oral termination of daily wager employees who had completed 240 days of continuous service without following the procedure under Section 25-F of the Industrial Disputes Act, 1947, constitutes an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act, warranting reinstatement with continuity of service and full back wages.

Judgment Excerpts

These four petitions are filed by the State Government through the Conservator of Forest challenging the Judgment and Order dated 19 November 2015 passed by the Judge, First Labour Court, Nashik allowing the Complaints filed by the Respondents and directing their reinstatement on original posts as daily wagers with continuity of service and full back wages with effect from 01 January 2006. Facts of the case, in brief, are that Respondents came to be engaged as labourers on daily wage basis during various years ranging between 1994 to 1997 by the Forest Department.

Procedural History

Respondents filed complaints under Section 28 of MRTU and PULP Act before the Labour Court, Nashik, which allowed the complaints on 19 November 2015. Petitioners filed revision applications before the Industrial Court, which were dismissed on 27 September 2017. Petitioners then filed the present writ petitions before the High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Section 30
  • Industrial Disputes Act, 1947: Section 25-F, Section 25-G, Section 25-H
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