Case Note & Summary
The petitioner, Raptakos Breet & Company Ltd., a pharmaceutical company, challenged the judgment and order dated 23 April 2019 of the Second Labour Court, Mumbai, in Complaint (ULP) No.06 of 2012, which directed payment of 50% backwages to the respondent, Gajanan M. Sonawane, from 14 October 2011 until his age of superannuation. The petitioner also challenged the order dated 22 October 2019 of the Industrial Court, Mumbai, which dismissed the petitioner's Revision Application (ULP) No.72 of 2019 and allowed the respondent's Revision Application (ULP) No.68 of 2019, directing payment of full backwages from the date of termination till superannuation. The respondent was employed by the petitioner and his services were terminated. The Labour Court found the termination to be an unfair labour practice and ordered reinstatement with 50% backwages from 14 October 2011. The Industrial Court, in revision, modified the order to grant full backwages from the date of termination. The High Court examined the principles governing award of backwages, noting that backwages are not automatic and depend on factors such as the employee's efforts to mitigate losses. The respondent had not pleaded or proved any efforts to secure alternative employment. The High Court held that the Labour Court's award of 50% backwages from 14 October 2011 was reasonable and the Industrial Court erred in granting full backwages. The High Court allowed the petition in part, setting aside the Industrial Court's order and restoring the Labour Court's order of 50% backwages from 14 October 2011 till superannuation.
Headnote
A) Industrial Law - Unfair Labour Practice - Backwages - Mitigation of Loss - Section 30 of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The court considered whether an employee who fails to plead or prove efforts to secure alternative employment is entitled to full backwages upon reinstatement. Held that backwages are not automatic and must be determined based on facts including the employee's conduct and efforts to mitigate losses. The Industrial Court erred in awarding full backwages without considering the respondent's failure to seek employment. (Paras 1-14) B) Industrial Law - Unfair Labour Practice - Backwages - Discretion of Labour Court - Section 30 of MRTU & PULP Act, 1971 - The Labour Court's award of 50% backwages from 14 October 2011 till superannuation was upheld as reasonable, given the respondent's failure to mitigate losses. The Industrial Court's revision allowing full backwages was set aside. (Paras 15-22)
Issue of Consideration
Whether the Labour Court and Industrial Court erred in awarding full backwages to the respondent without considering his failure to mitigate losses and the principle that backwages are not automatic upon reinstatement.
Final Decision
The High Court allowed the petition in part, setting aside the Industrial Court's order granting full backwages and restoring the Labour Court's order of 50% backwages from 14 October 2011 till the age of superannuation.
Law Points
- Unfair Labour Practice
- Backwages
- Mitigation of Loss
- Section 30 of MRTU & PULP Act
- 1971
- Section 25F of Industrial Disputes Act
- 1947
