Bombay High Court Upholds Labour Court's Condonation of Delay in ULP Complaint; Industrial Court's Reversal Quashed. Delay Caused by Bona Fide Pursuit of Civil Suit Under Mistaken Belief of Non-Employee Status Constitutes Sufficient Cause Under MRTU and PULP Act.

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

The matter arose from a writ petition filed under Articles 226 and 227 of the Constitution of India before the Bombay High Court challenging an order of the Industrial Court, Thane dated 10.02.2023 passed in Revision Application (ULP) No.23 of 2021. The revision was filed under Section 44 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 against an order of the 2nd Labour Court, Thane dated 27.06.2018 which had condoned a delay of 6 years and 4 months in filing a complaint of unfair labour practice. The petitioner was employed as a Clerk in the respondent cooperative bank on 15.04.1985, was promoted as Branch Manager and drew last wages of Rs.29,050. He was dismissed on 02.03.2012 for allegedly consuming alcohol on duty, according to him without a show cause notice, charge-sheet or enquiry. Aggrieved, he filed a civil suit at Jawhar on 22.04.2013 challenging dismissal. The civil court framed preliminary issues on jurisdiction and by order 04.10.2013 held that the plaintiff was not a workman or employee, so the civil court had jurisdiction. The bank challenged that order by Civil Revision Application No.891 of 2013 before the High Court; by order 06.07.2015 the High Court allowed the revision and permitted the petitioner to withdraw the civil suit with liberty to institute appropriate proceedings before the appropriate forum. Thereafter the petitioner filed Complaint (ULP) No.161 of 2018 under Sections 1(a)(b)(d)(f) and 10 of Schedule IV read with Section 28 of the MRTU and PULP Act before the Labour Court, along with an application for condonation of delay. The Labour Court allowed the application on 27.06.2018, holding that the delay was not deliberate and that labour legislation should be liberally construed. The Industrial Court reversed this, holding that the petitioner had not explained the delay properly and that it appeared deliberate and inordinate. Before the High Court, the petitioner argued that he had bona fide believed he was not an employee due to being Branch Manager and had pursued the civil suit; the delay was caused by the bank's own challenge to the civil court order and the liberty granted by the High Court. The respondent bank argued that it had a strong case on merits, with prior complaints and blood test results, and that the petitioner had chosen wrong forums deliberately. The High Court found that the delay was adequately explained, that the petitioner had not been lethargic, and that the Labour Court had correctly appreciated sufficient cause. It held that the Industrial Court had taken a rigid stand and suffered from non-application of mind. Accordingly, the High Court quashed the Industrial Court order dated 10.02.2023, confirmed the Labour Court order dated 27.06.2018, condoned the delay, and directed that the original complaint be decided within six months.

Headnote

A) Labour Law - Condonation of Delay - Sufficient Cause - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 28, Section 44, Schedule IV - Delay of 6 years 4 months in filing complaint under MRTU and PULP Act condoned when employee bona fide pursued remedy before Civil Court believing he was not an employee and High Court had granted liberty to approach appropriate forum; Labour Court's finding that delay was not deliberate and labour legislation should be liberally construed upheld; Industrial Court's reversal taking rigid stand was set aside (Paras 9-12).

B) Writ Jurisdiction - Supervisory Jurisdiction under Articles 226 and 227 of the Constitution of India - Interference with Revisional Order - High Court quashed Industrial Court order that did not appreciate delay explained to the Labour Court's satisfaction and suffered from non-application of mind; order would have extinguished employee's remedy; writ petition allowed and delay condoned, complaint directed to be decided within six months (Paras 10-13).

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Issue of Consideration

Whether the Industrial Court erred in reversing the Labour Court's order condoning delay when the delay was caused by bona fide prosecution of a civil suit under mistaken belief about employee status and by the liberty granted to approach the appropriate forum.

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Final Decision

Writ Petition allowed. The Industrial Court order dated 10.02.2023 was quashed and set aside. The Labour Court order dated 27.06.2018 in Condonation of Delay (ULP) No.07 of 2017 was confirmed and upheld. Delay was condoned. The Labour Court was directed to decide Complaint (ULP) No.161 of 2018 within six months from the date of order, strictly in accordance with law.

Law Points

  • Condonation of delay under MRTU and PULP Act
  • bona fide pursuit of wrong forum constitutes sufficient cause
  • labour legislation to be liberally construed
  • delay not deliberate if party not lethargic
  • writ court can quash revisional order that takes rigid stand
  • Section 44 revision
  • Articles 226 and 227 supervisory jurisdiction
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Case Details

2023 LawText (BOM) (12) 49

Writ Petition No. 9348 of 2023

2023-12-18

Milind N. Jadhav, J.

2023:BHC-AS:39442

Ms. Priyanka Patkar i/b Mr. Yogendra Pendse (Petitioner), Mr. V. A. Gangal a/w Ms. Shweta Parab (Respondents)

Dattatray Pandurang Phaltankar

1. Manager of the Jawhar Urban Co.Op Bank Ltd., 2. The Chairman of the Jawhar Urban Co.Op Bank Ltd., 3. The Jawhar Urban Co.Op Bank Ltd.

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging the Industrial Court's order reversing the Labour Court's condonation of delay in a complaint alleging unfair labour practice.

Remedy Sought

Petitioner sought quashing of the Industrial Court order dated 10.02.2023, confirmation of the Labour Court order dated 27.06.2018 condoning delay, and direction for expeditious adjudication of the underlying complaint.

Filing Reason

The petitioner's complaint under the MRTU and PULP Act was filed with a delay of 6 years and 4 months; the Labour Court condoned the delay, but the Industrial Court reversed that order, leaving the petitioner without remedy.

Previous Decisions

2nd Labour Court, Thane allowed condonation of delay on 27.06.2018; Industrial Court, Thane reversed and rejected condonation on 10.02.2023; Bombay High Court set aside the Industrial Court order and confirmed the Labour Court order.

Issues

Whether the Industrial Court erred in reversing the Labour Court's order condoning delay when the delay was caused by bona fide prosecution of a civil suit under mistaken belief about employee status and by the liberty granted to approach the appropriate forum. Whether the petitioner had shown sufficient cause to condone the delay of 6 years and 4 months under MRTU and PULP Act.

Submissions/Arguments

Petitioner argued that he had bona fide believed he was not an employee due to being Branch Manager and had pursued the civil suit; the delay was caused by the respondent's revision and the High Court's liberty to approach appropriate forum. Petitioner argued that the Labour Court correctly appreciated sufficient cause and that the Industrial Court's reversal was rigid and would extinguish his remedy. Respondent bank argued that it had a strong case on merits, with prior complaints, warnings, and blood test showing alcohol, and that the petitioner had approached wrong forums deliberately. Respondent bank argued that the delay was deliberate and inordinate and that the impugned Industrial Court order was reasoned and should be upheld.

Ratio Decidendi

Time spent by a party in bona fide prosecution of a civil suit under a mistaken belief about non-employee status and the liberty granted by the superior court to approach the appropriate forum constitutes sufficient cause for condonation of delay under the MRTU and PULP Act. A delay cannot be treated as deliberate or inordinate when the party was not lethargic and had pursued the case, albeit in a wrong forum. Labour legislation should be liberally construed in favour of the workman.

Judgment Excerpts

the delay was adequately explained by the Petitioner. It therefore cannot be called as inordinate or deliberate at all. It was held that in such a case Labour Legislation is required to be liberally construed towards the workman and hence the delay was condoned. Delay stands condoned.

Procedural History

Petitioner was dismissed from service on 02.03.2012; he filed Civil Suit on 22.04.2013; Civil Judge passed order on 04.10.2013 holding civil court had jurisdiction; Bank filed Civil Revision Application No.891 of 2013; High Court by order 06.07.2015 allowed revision and permitted withdrawal of civil suit with liberty to approach appropriate forum; petitioner filed Complaint (ULP) No.161 of 2018 and Condonation of Delay (ULP) No.07 of 2017; Labour Court allowed condonation on 27.06.2018; Industrial Court reversed on 10.02.2023; High Court quashed Industrial Court order and allowed writ petition.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Section 44, Section 60, Schedule IV Items 1(a)(b)(d)(f) and 10
  • Maharashtra Industrial Relations Act, 1946: Section 3(13)
  • Industrial Disputes Act, 1947:
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