Bombay High Court Allows Letters Patent Appeal by MSRTC Driver, Restores 50% Back Wages. Industrial Court Found to Have Exceeded Jurisdiction Under Section 44 of MRTU & PULP Act, 1971, by Interfering with Labour Court's Discretionary Award.

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

The appellant, a former driver with the Maharashtra State Road Transport Corporation (MSRTC), was dismissed from service on 28.09.1991 on grounds of absence without sufficient cause after an internal enquiry. He challenged the dismissal by filing a complaint under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act). The Labour Court, by judgment dated 03.02.2005, while holding the departmental enquiry fair, found the findings of the Enquiry Officer perverse due to mitigating circumstances and directed reinstatement with continuity in service and payment of 50% back wages. Both parties preferred revision applications. The Industrial Court, by common judgment dated 04.09.2007, allowed the respondent’s revision and dismissed the appellant’s, effectively setting aside the back wages. The appellant sought review, and on 15.03.2008, the Industrial Court partly reviewed its order, restoring reinstatement but confirming denial of back wages. The appellant then filed Writ Petition No.1525/2011 under Articles 226 and 227 of the Constitution on 10.02.2011, challenging both the original and review orders. The learned Single Judge dismissed the writ petition on 09.08.2011 solely on the ground of delay of nearly four years from the original order dated 04.09.2007, without considering the review order. In the Letters Patent Appeal, the Division Bench examined whether the Single Judge erred in dismissing the petition on delay and whether the Industrial Court exceeded its revisional jurisdiction under Section 44 by setting aside back wages. The Court held that the limitation for the writ petition should be computed from the date of the review order (15.03.2008), making the filing on 10.02.2011 within a reasonable period of three years. Relying on the Constitution Bench decision in State of Madhya Pradesh v. Bhailal Bhai (AIR 1964 SC 1006), it observed that while the Limitation Act does not strictly apply, the maximum period for a suit is a reasonable guide. The Single Judge’s failure to account for the review order was thus erroneous. On the merits, the Court noted that under certiorari jurisdiction, a finding unsupported by evidence is perverse and constitutes an error of law. It referenced General Manager, Electrical Rengali Hydro Electric Project v. Giridhari Sahu [(2019) 10 SCC 695] and earlier decisions to emphasize that the Industrial Court could not interfere with the Labour Court’s discretionary grant of back wages unless the finding was perverse, which was not shown. The Court, therefore, allowed the appeal, set aside the Single Judge’s order, and restored the Labour Court's award of 50% back wages. (The final operative part is not fully captured in the provided excerpt but is implicit from the court's reasoning.)

Headnote

A) Labour Law - Back Wages - Jurisdiction of Industrial Court under Section 44 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court cannot set aside the Labour Court's discretionary award of back wages unless the finding is perverse or unsupported by evidence. Here, the Industrial Court confirmed reinstatement but set aside 50% back wages, leading to challenge that it exceeded revisional jurisdiction. (Paras 4-5)

B) Constitution - Writ Jurisdiction - Delay and Laches - When a review order modifies the original order, the starting point for limitation is the date of the review order. The Single Judge erred in computing delay from the original order ignoring the review order dated 15.03.2008; the writ petition filed on 10.02.2011 was within three years from that date. (Paras 8-9)

C) Administrative Law - Certiorari - Error Apparent on Face of Record - A finding of fact not supported by any evidence is perverse and constitutes an error of law allowing interference in writ jurisdiction. Observations in Giridhari Sahu followed on what constitutes an error apparent on the face of the record for certiorari. (Para 7)

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Issue of Consideration

Whether the learned Single Judge was justified in dismissing the writ petition on the ground of delay of four years in challenging the Industrial Court's order dated 04.09.2007, especially when the Industrial Court had subsequently modified its order on 15.03.2008 upon review; and whether the Industrial Court exceeded its jurisdiction under Section 44 of the MRTU & PULP Act by setting aside the Labour Court's award of 50% back wages.

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Final Decision

The High Court, by this oral judgment, allowed the Letters Patent Appeal, set aside the Single Judge’s judgment dated 09.08.2011, and held that the writ petition was filed within a reasonable time. It further held that the Industrial Court had exceeded its jurisdiction under Section 44 of the MRTU & PULP Act, 1971, by interfering with the Labour Court’s discretionary award of 50% back wages without a finding of perversity. Consequently, the Labour Court’s order granting 50% back wages was restored. (Final operative part not fully captured in excerpt but implied from the court’s reasoning.)

Law Points

  • error apparent on face of record justifies certiorari
  • finding unsupported by evidence is perverse and an error of law
  • delay in filing writ petition computed from date of review order when original order modified
  • Industrial Court under Section 44 of MRTU & PULP Act cannot interfere with Labour Court's discretionary back wages unless finding perverse
  • reasonable period for writ petition akin to limitation period for suit
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Case Details

2021 LawText (BOM) (11) 74

Letters Patent Appeal No. 25/2013 in Writ Petition No. 1525/2011 (D)

2021-11-17

A.S. Chandurkar, G.A. Sanap

Shri F. Khan with Shri B.M. Khan for the appellant; None for the respondent

Prabhakar s/o Mahadu Salve

Divisional Controller, Maharashtra State Road Transport Corporation, Buldana Division

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Nature of Litigation

Employment dispute: dismissal from service challenged under MRTU & PULP Act, 1971, seeking reinstatement and back wages.

Remedy Sought

Appellant sought writ of certiorari to quash Industrial Court's order denying 50% back wages and restore Labour Court's award of 50% back wages.

Filing Reason

The appellant was dismissed on 28.09.1991 for alleged absence without sufficient cause. Labour Court found enquiry perverse and directed reinstatement with continuity and 50% back wages. Industrial Court in revision set aside back wages. Appellant challenged denial of back wages.

Previous Decisions

Labour Court allowed complaint on 03.02.2005 directing reinstatement and 50% back wages. Industrial Court on 04.09.2007 allowed respondent's revision and dismissed appellant's revision, setting aside back wages. On review on 15.03.2008, Industrial Court restored reinstatement but maintained denial of back wages. Single Judge dismissed writ petition on 09.08.2011 on delay.

Issues

Whether the writ petition was barred by delay when filed within three years of the review order modifying the original order? Whether the Industrial Court exceeded jurisdiction under Section 44 of the MRTU & PULP Act by setting aside the Labour Court's discretionary award of 50% back wages?

Submissions/Arguments

Appellant argued that there was no delay because the review order dated 15.03.2008 substantially modified the original order, and the writ petition was filed within three years from that date. The Single Judge erroneously computed delay from the original order of 04.09.2007. Appellant contended that both lower courts had held the dismissal illegal, and the appellant had deposed he was not gainfully employed. The Industrial Court, while confirming the reinstatement, set aside back wages without any finding of perversity, thereby exceeding its revisional jurisdiction under Section 44. Reliance was placed on several Supreme Court decisions to argue that back wages ought to be granted unless the employer proves gainful employment, and that the court could relax the delay in extraordinary circumstances.

Ratio Decidendi

1. For the purpose of limitation in a writ petition, when a review order substantially modifies the original order, the period of limitation must be computed from the date of the review order. 2. Under certiorari jurisdiction, a finding of fact not supported by any evidence is perverse and constitutes an error of law, warranting interference. 3. The Industrial Court, in exercise of revisional powers under Section 44 of the MRTU & PULP Act, cannot set aside a discretionary award of back wages granted by the Labour Court unless it finds the Labour Court’s conclusion on the employee’s gainful employment to be perverse or based on no evidence.

Judgment Excerpts

An error of law which becomes vulnerable to judicial scrutiny by way of certiorari must also be one which is apparent on the facts of the record. (Para 7) A finding of fact which is not supported by any evidence would be perverse and in fact would constitute an error of law enabling the writ Court to interfere. (Para 7) It thus clear that when the writ petition was filed on 10.02.2011 it was within a period of three years from 15.03.2008. (Para 8) The provisions of the Limitation Act do not as such apply to the granting of relief under Art. 226. It appears to us however that the maximum period fixed by the legislature as the time within which the relief by a suit in a competent court can be obtained is a reasonable period. (Para 9, quoting State of MP v. Bhailal Bhai)

Procedural History

Appellant dismissed from service on 28.09.1991. He filed a complaint under Section 28 of the MRTU & PULP Act before the Labour Court. The Labour Court, by order dated 10.12.2004, held the departmental enquiry fair but subsequently, on 03.02.2005, found the Enquiry Officer's findings perverse and directed reinstatement with continuity and 50% back wages. Both parties filed revision applications before the Industrial Court. The Industrial Court, by common judgment dated 04.09.2007, allowed the respondent’s revision and dismissed the appellant’s, thereby setting aside the back wages. The appellant filed a review application on 15.10.2007. The Industrial Court, on 15.03.2008, partly allowed the review, restoring reinstatement but confirming denial of back wages. The appellant then filed Writ Petition No.1525/2011 under Articles 226 and 227 on 10.02.2011, challenging both the Industrial Court’s orders. The learned Single Judge dismissed the writ petition on 09.08.2011 on the ground of delay of nearly four years from the original order. The appellant then filed the present Letters Patent Appeal.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: 28, 44
  • Constitution of India: 226, 227
  • Limitation Act, 1963: General principles
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