Bombay High Court Dismisses Employer's Petition Challenging Industrial Court Order of Reinstatement with Back Wages. Termination of Employee Without Domestic Inquiry or Retrenchment Compensation Held Illegal Under Section 25F of Industrial Disputes Act, 1947.

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

The petitioner, Mutha Founders Pvt Ltd, challenged the judgment and order dated 05.11.2012 passed by the learned Industrial Court, Satara in Complaint (ULP) No. 104/2007. The original respondent, Balu Appa Kurane, was an employee of the petitioner. He was terminated from service without any domestic inquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947. The Industrial Court allowed the complaint, holding the termination illegal, and directed reinstatement with continuity of service and full back wages. The petitioner argued that the employee had abandoned service and that the Industrial Court erred in granting back wages. The High Court, after hearing both sides, found that the Industrial Court had correctly appreciated the evidence and that there was no perversity in the findings. The court noted that the employee had been terminated without any inquiry and without retrenchment compensation, which is a clear violation of Section 25F. The High Court dismissed the writ petition, upholding the Industrial Court's order. The court also observed that the employee had expired during the pendency of the petition, and the legal heirs were brought on record. The decision reaffirms the principle that termination without following due process is illegal and that the Industrial Court has the jurisdiction to grant appropriate relief.

Headnote

A) Industrial Law - Termination of Service - Illegal Termination - Section 25F of Industrial Disputes Act, 1947 - The employee was terminated without any domestic inquiry and without payment of retrenchment compensation. The Industrial Court held the termination illegal and directed reinstatement with continuity of service and back wages. The High Court upheld the order, finding no perversity in the findings of fact. (Paras 1-10)

B) Industrial Law - Jurisdiction of Industrial Court - Complaint under MRTU & PULP Act, 1971 - The Industrial Court has jurisdiction to entertain a complaint alleging unfair labour practice under Item 1 of Schedule IV of the MRTU & PULP Act, 1971, which includes termination of service without following due process. The court's order of reinstatement with back wages is within its powers. (Paras 2-10)

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Issue of Consideration

Whether the termination of the employee without holding a domestic inquiry and without complying with Section 25F of the Industrial Disputes Act, 1947 is legal and justified.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order dated 05.11.2012 directing reinstatement with continuity of service and full back wages.

Law Points

  • Termination without domestic inquiry is illegal
  • Retrenchment without compliance with Section 25F is void
  • Industrial Court has jurisdiction to grant reinstatement with back wages
  • Writ Court will not interfere with concurrent findings of fact
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Case Details

2023 LawText (BOM) (12) 112

Writ Petition No. 41 of 2013

2023-12-05

Milind N. Jadhav

Mr. Nitin A. Kulkarni for Petitioner, Mr. Kishor Ajetrao for Respondents

The General Manager, Mutha Founders Pvt Ltd

Balu Appa Kurne (since deceased) through legal heirs Kamal Balu Kurane & Ors.

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Nature of Litigation

Writ Petition under Articles 226 and 227 of the Constitution of India challenging the order of the Industrial Court in a complaint of unfair labour practice.

Remedy Sought

The petitioner (employer) sought to quash the Industrial Court's order directing reinstatement with continuity of service and full back wages.

Filing Reason

The petitioner challenged the Industrial Court's order dated 05.11.2012 in Complaint (ULP) No. 104/2007, which held the termination of the employee as illegal.

Previous Decisions

The Industrial Court, Satara, allowed the complaint and directed reinstatement with continuity of service and full back wages.

Issues

Whether the termination of the employee without holding a domestic inquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947 is legal? Whether the Industrial Court had jurisdiction to grant reinstatement with back wages?

Submissions/Arguments

Petitioner argued that the employee had abandoned service and that the Industrial Court erred in granting back wages. Respondents argued that the termination was illegal as no domestic inquiry was held and no retrenchment compensation was paid.

Ratio Decidendi

Termination of an employee without holding a domestic inquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal and constitutes an unfair labour practice. The Industrial Court has jurisdiction to order reinstatement with back wages in such cases.

Judgment Excerpts

Heard Mr. Kulkarni, learned Advocate for Petitioner and Mr. Ajetrao, learned Advocate for Respondents. This Writ Petition is filed under the provisions of Articles 226 and 227 of the Constitution of India to challenge the Judgement & Order dated 05.11.2012 passed by the learned Industrial Court, Satara in Complaint (ULP) No. 104/2007.

Procedural History

The original respondent filed a complaint before the Industrial Court, Satara, alleging unfair labour practice. The Industrial Court allowed the complaint on 05.11.2012. The petitioner filed the present writ petition in 2013. During pendency, the original respondent expired on 20.01.2022, and his legal heirs were brought on record. The High Court heard the matter and dismissed the petition on 05.12.2023.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Industrial Disputes Act, 1947: Section 25F
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Item 1 of Schedule IV
  • Companies Act, 1956:
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