Bombay High Court Dismisses Employer's Petitions Challenging Industrial Court Jurisdiction in Contract Labour Dispute. Court Upholds Industrial Court's Power to Entertain Complaint for Direct Employment and Permanency Under MRTU & PULP Act, 1971.

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

The judgment concerns two writ petitions filed by Raymond Ltd. challenging the jurisdiction of the Industrial Court to entertain complaints filed by contract workers, including Tukaram Tanaji Mandhare, seeking declaration of direct employee relationship and status of permanency. The background involves a 26-year-long legal battle where the workers, employed as contract labourers in Raymond's mill, sought to be recognized as direct employees of the company. The Full Bench of the Bombay High Court in Tukaram Tanaji Mandhare v. Raymond Ltd. had previously settled the law on the jurisdiction of the Industrial Court under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act). Despite this, Raymond Ltd. continued to challenge the jurisdiction, leading to the present petitions. The court, after hearing arguments from both sides, held that the Industrial Court has jurisdiction to entertain such complaints under Sections 5 and 7 of the MRTU & PULP Act read with Item 6 of Schedule IV. The court dismissed the petitions, noting the need to end the endless litigation, and directed the Industrial Court to dispose of the complaint expeditiously, preferably within six months. The decision favors the workers, affirming the Industrial Court's jurisdiction.

Headnote

A) Labour Law - Industrial Court Jurisdiction - MRTU & PULP Act, 1971 - Sections 5 and 7 - Complaint under Item 6 of Schedule IV - The issue was whether the Industrial Court has jurisdiction to entertain a complaint by a contract worker seeking declaration of direct employment and permanency with the principal employer. The Court held that the Industrial Court has jurisdiction to entertain such complaint, relying on the Full Bench judgment in Tukaram Tanaji Mandhare v. Raymond Ltd. which settled the law. (Paras 1-13)

B) Labour Law - Contract Labour - Direct Employment - Permanency - The Court considered the long-standing dispute between contract workers and Raymond Ltd. regarding their employment status. The Court held that the Industrial Court can adjudicate claims of direct employment and permanency under the MRTU & PULP Act, 1971. (Paras 2-10)

C) Labour Law - Delay and Laches - The Court noted the 26-year-long litigation and emphasized the need to draw curtains on the endless litigation spree. The Court dismissed the petitions with a direction to the Industrial Court to dispose of the complaint expeditiously. (Paras 1, 13)

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Issue of Consideration

Whether the Industrial Court has jurisdiction to entertain a complaint filed by a contract worker seeking declaration of direct employee relationship and status of permanency with the principal employer under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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Final Decision

Both writ petitions are dismissed. The Industrial Court is directed to dispose of the complaint expeditiously, preferably within six months.

Law Points

  • Industrial Court jurisdiction under MRTU & PULP Act
  • 1971
  • Sections 5 and 7
  • Complaint under Item 6 of Schedule IV
  • Direct employment and permanency
  • Contract labour
  • Full Bench judgment in Tukaram Tanaji Mandhare v. Raymond Ltd.
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Case Details

2023 LawText (BOM) (11) 27

Writ Petition No. 11005 of 2022 and Writ Petition No. 11068 of 2022

2023-11-03

Sandeep V. Marne, J.

2023:BHC-AS:33853

Mr. S. K. Talsania, Senior Advocate a/w. Mr. R. V. Paranjape and Mr. T. R. Yadav for Petitioner; Mr. Yogenra M. Pendse for Respondents in both petitions.

Raymond Ltd. Through its Manager Personnel

Maruti Tukaram Yadav & Anr. (in WP 11005/2022) and Tukaram Tanaji Mandhare & Ors. (in WP 11068/2022)

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Nature of Litigation

Writ petitions challenging jurisdiction of Industrial Court to entertain complaints under MRTU & PULP Act, 1971.

Remedy Sought

Raymond Ltd. sought quashing of the complaints or a declaration that the Industrial Court lacks jurisdiction.

Filing Reason

Raymond Ltd. challenged the maintainability of complaints filed by contract workers seeking declaration of direct employment and permanency.

Previous Decisions

Full Bench judgment in Tukaram Tanaji Mandhare v. Raymond Ltd. settled the law on jurisdiction; the present petitions were filed despite that.

Issues

Whether the Industrial Court has jurisdiction to entertain a complaint under MRTU & PULP Act, 1971 for declaration of direct employment and permanency by a contract worker against the principal employer.

Submissions/Arguments

Petitioner (Raymond Ltd.) argued that the Industrial Court lacks jurisdiction as the workers are contract labourers and the appropriate forum is under the Contract Labour Act. Respondents (workers) argued that the Full Bench judgment has settled the law and the Industrial Court has jurisdiction.

Ratio Decidendi

The Industrial Court has jurisdiction under Sections 5 and 7 of the MRTU & PULP Act, 1971 to entertain complaints by contract workers seeking declaration of direct employment and permanency, as per the Full Bench judgment in Tukaram Tanaji Mandhare v. Raymond Ltd.

Judgment Excerpts

Instead of making further contribution to the labour jurisprudence, time has come to draw curtains on this endless litigation spree. The Complaint that he filed for seeking declaration of his direct employee relationship with Raymond and status of permanency continues to remain pending before the Industrial Court.

Procedural History

The workers filed complaints before the Industrial Court under MRTU & PULP Act. Raymond Ltd. challenged the jurisdiction, leading to a Full Bench judgment that settled the law. Despite that, Raymond filed the present writ petitions challenging jurisdiction again. The High Court dismissed the petitions.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Sections 5, 7, Schedule IV Item 6
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High Court Bombay High Court Dismisses Employer's Petitions Challenging Industrial Court Jurisdiction in Contract Labour Dispute. Court Upholds Industrial Court's Power to Entertain Complaint for Direct Employment and Permanency Under MRTU & PULP Act, 1971.