Bombay High Court Hears Writ Petitions by Workers Against Tata Motors Limited in Industrial Disputes Under Section 2-A of Industrial Disputes Act, 1947. Petitioners Sought Certiorari to Quash Labour Court Incidental Orders and Claimed Reinstatement Due to Alleged Unfair Labour Practices.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment under analysis involved a group of 52 workmen who filed writ petitions before the Bombay High Court challenging the orders and awards of the Labour Court at Pune in industrial disputes raised under Section 2-A of the Industrial Disputes Act, 1947 against Tata Motors Limited. The petitioners sought a writ of certiorari to quash 30 incidental orders passed by the Labour Court between 21 March 2015 and 28 November 2016, a declaration that the respondent had engaged in unfair labour practices, and reinstatement with full back wages at 18% compound interest along with all consequential benefits. They also prayed for interim relief of 50% of the claimed lumpsum and 50% of wages paid to permanent workmen, as well as preference for future permanent employment vacancies. The High Court noted that common questions of fact and law were involved affecting all 52 petitioners, each of whom had raised an industrial dispute under Section 2-A of the Industrial Disputes Act, 1947, concerning their last disengagement or termination from service. The Conciliation Officer, upon failure of conciliation proceedings, submitted failure reports, and the Appropriate Government referred the disputes to the Labour Court at Pune. The Labour Court answered all reference cases in the negative, leading to the writ petitions. The demand notices were issued by all 52 petitioners on a single day, 23 July 2005, seeking reinstatement with continuity and entire back wages for the period of unemployment. Copies were served on the management and forwarded to the Assistant Commissioner of Labour, District Pune. Conciliation proceedings commenced, and as they failed, the Conciliation Officer submitted failure reports, one of which was dated 21 June 2006. The Conciliation Officer exercised jurisdiction under Section 12(4) of the Act and recorded that the management did not participate in the conciliation proceedings, neither opposing the demand notice nor expressing any view. The Appropriate Government considered the failure report and documents and referred the disputes to the Labour Court, as the Conciliation Officer had prima facie noticed the existence of an industrial dispute under Section 2-A, which defines a deemed industrial dispute. The petitioners filed identical statements of claim before the Labour Court, contending that more than 12,000 employees worked on regular basis excluding clerical cadre; the respondent manufactured passenger cars, LMV, HMV and commercial vehicles; each petitioner was interviewed and issued appointment orders for specific periods, mostly 7, 6 or 5 months, and none was granted an appointment order for more than 7 months despite continuing manufacturing activity; the intention of the respondent was to ensure that no worker completed 240 days of continuous service in 12 calendar months preceding disengagement; and each petitioner had performed work in the core manufacturing activity. The High Court observed that since all demand notices, failure reports and orders of reference were identical, it was not necessary to examine each document individually. The final operative decision of the High Court in these writ petitions was not included in the provided text, and therefore the outcome of the writ petitions could not be determined from the excerpt; only the Labour Court's earlier negative answers to the references were recorded.

Headnote

A) Labour Law - Industrial Dispute - Deemed Industrial Dispute - Industrial Disputes Act, 1947, Section 2-A - The writ petitions arose from individual industrial disputes raised by 52 workers under Section 2-A, each alleging termination or disengagement from service of Tata Motors Limited; the Conciliation Officer noticed prima facie existence of an industrial dispute, leading to reference by the Appropriate Government. Held that Section 2-A defines a deemed industrial dispute. (Paras 2,5)

B) Labour Law - Conciliation Proceedings - Failure Report - Industrial Disputes Act, 1947, Section 12(4) - Conciliation proceedings failed as the management did not participate, did not oppose the demand notice, and did not express any view before the Conciliation Officer; the Conciliation Officer submitted a failure report dated 21/06/2006, and the Appropriate Government referred the disputes to the Labour Court. Held that the Conciliation Officer exercised jurisdiction under Section 12(4) of the Act. (Paras 4-5)

C) Labour Law - Unfair Labour Practice and Termination - 240 Days Continuous Service - Industrial Disputes Act, 1947, Section 2-A - Petitioners alleged that the respondent issued appointment orders for periods of 5, 6, or 7 months, none exceeding 7 months, to ensure that no worker completed 240 days of continuous service in 12 calendar months; they sought reinstatement with full back wages at 18% compound interest and all consequential benefits. Held that the court was to examine whether the respondent engaged in unfair labour practices and whether the workers were entitled to relief. (Paras 1,6)

D) Writ Jurisdiction - Certiorari - Quashing of Incidental Orders - Industrial Disputes Act, 1947, Section 2-A - Petitioners prayed for a writ of certiorari to call for records and quash 30 incidental orders passed by the Labour Court between 21 March 2015 and 28 November 2016, claiming they were illegal, invalid, and improper. Held that the court would assess the legality, validity, and propriety of those orders. (Para 1)

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Issue of Consideration

Whether the Labour Court erred in rejecting the industrial dispute references under Section 2-A of the Industrial Disputes Act, 1947 and whether the workers are entitled to reinstatement, back wages, and quashing of incidental orders due to alleged unfair labour practices.

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Law Points

  • Section 2-A Industrial Disputes Act deems individual dispute as industrial dispute
  • Conciliation Officer under Section 12(4) submits failure report upon non-participation
  • Appropriate Government refers dispute to Labour Court
  • workers' claim of unfair labour practice through fixed-term appointments avoiding 240 days continuous service.
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Case Details

2022 LawText (BOM) (02) 32

WRIT PETITION NO.5588 OF 2017 along with connected writ petitions

2022-02-26

Ravindra V. Ghuge, J.

2022:BHC-AS:4054

Sanjay Singhvi, Rahul Kamerkar, C.U. Singh, Kiran Bapat, Haresh Mehta & Co.

Shankar Bhimrao Kadam & Ors. and other connected petitioners (52 petitioners)

Tata Motors Limited

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Nature of Litigation

Writ petitions challenging Labour Court orders and awards in industrial disputes under Industrial Disputes Act, 1947.

Remedy Sought

Petitioners sought writ of certiorari to quash 30 incidental orders passed by Labour Court; declaration that respondent engaged in unfair labour practices; reinstatement with full back wages at 18% annual compound interest and all consequential benefits; interim payment of 50% lumpsum amount and 50% wages; preference for permanent employment vacancies.

Filing Reason

Labour Court at Pune answered all industrial dispute references in the negative, rejecting workers' claims.

Previous Decisions

Conciliation Officer submitted failure report dated 21/06/2006; Appropriate Government referred disputes to Labour Court; Labour Court passed 30 incidental orders between 21 March 2015 and 28 November 2016; Labour Court answered references in negative.

Issues

Whether the Labour Court erred in answering the industrial dispute references in the negative despite the workers' completion of 240 days of continuous service? Whether the respondent engaged in unfair labour practices by issuing fixed-term appointment orders of 5-7 months to avoid granting permanent status? Whether the petitioners are entitled to reinstatement with full back wages at 18% compound interest? Whether the incidental orders passed by the Labour Court between 21 March 2015 and 28 November 2016 are liable to be quashed by writ of certiorari?

Submissions/Arguments

Petitioners contended that respondent employed more than 12000 employees on regular basis, excluding clerical cadre, and is a manufacturer of passenger cars, LMV, HMV and commercial vehicles. Petitioners alleged they were interviewed and issued specific appointment orders for periods mostly of 5, 6, or 7 months, none exceeding 7 months, despite continuing manufacturing activity. Petitioners argued that the respondent's intention was to ensure that no worker completed 240 days of continuous service in 12 calendar months preceding disengagement. Petitioners performed work in the core manufacturing activity. Respondent did not participate in conciliation proceedings and did not oppose demand notices or express any view before Conciliation Officer.

Judgment Excerpts

That this Hon’ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction calling for records relating to the 30 incidental Orders passed between 21st March 2015 to 28th November 2016 by the Learned Labour Court at Pune in 30 identical IDA References annexed above as Exhibits A-1 to A-30 and after going through the legality, validity and propriety thereof be pleased to quash and set aside the same. Since all the demand notices, failure reports and the Appropriate Government’s Orders of Reference are identical, I am not required to go into each of the demand notices and such documents, to avoid unnecessary enlarging of this judgment. Each of these petitioners have performed work in the core manufacturing activity

Procedural History

On 23/07/2005, all 52 petitioners issued identical demand notices seeking reinstatement and back wages. Conciliation proceedings commenced, but management did not participate. Conciliation Officer submitted failure report dated 21/06/2006 under Section 12(4) of the Industrial Disputes Act, 1947. Appropriate Government referred disputes to Labour Court, Pune. Labour Court passed 30 incidental orders between 21 March 2015 and 28 November 2016 and ultimately answered all references in negative. Petitioners filed writ petitions challenging the Labour Court's orders and awards.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 2-A, Section 12(4)
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