Bombay High Court Dismisses Letters Patent Appeal in Voluntary Retirement Scheme Dispute — No Unfair Labour Practice Established. Appellants failed to prove coercion or collusion in voluntary retirement scheme under Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act.

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

The case involves a Letters Patent Appeal filed by five appellants against an order dated 01-03-2005 in Writ Petition No. 728 of 2005, which had dismissed their writ petition challenging an Industrial Court order that dismissed their complaint under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act. The appellants were employees of M/s. Automobile Products of India Ltd. (respondent No. 2). They alleged that a voluntary retirement scheme and agreement between the union (respondent Nos. 3 and 4) and the employer was collusive and that they never consented to it. They claimed they accepted the cheque amount under protest and duress, as they had not received six months' salary. The appellants contended that the entire procedure was de hors legal procedure. The court considered the submissions of the appellants' counsel, Mr. Shahane, and the respondents' counsel. The court noted that the writ petition had been dismissed earlier, and the appeal was against that dismissal. The court found no merit in the appeal, as the appellants failed to establish any unfair labour practice or coercion. The court dismissed the appeal, upholding the earlier orders.

Headnote

A) Labour Law - Voluntary Retirement Scheme - Consent - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The appellants challenged the voluntary retirement scheme as collusive and without their consent, but the court found no evidence of coercion or unfair labour practice, as the scheme was agreed between the union and employer and the appellants accepted benefits under protest without establishing duress. (Paras 2-3)

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Issue of Consideration

Whether the voluntary retirement scheme and agreement were vitiated by lack of consent, collusion, or duress, constituting unfair labour practice under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act.

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Final Decision

The Letters Patent Appeal is dismissed.

Law Points

  • Voluntary retirement scheme
  • consent
  • unfair labour practice
  • collusion
  • duress
  • protest acceptance
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Case Details

2020 LawText (BOM) (02) 11

LETTERS PATENT APPEAL NO. 116 OF 2005 IN WRIT PETITION NO. 728 OF 2005

2020-02-13

SUNIL P. DESHMUKH, B.U. DEBADWAR

Shri. Pradeep L. Shahane for the petitioners, Mrs. D. S. Jape, AGP for respondent No. 1, Shri. Madhav Ghode h/f Shri. P. K. Joshi for respondent No. 2

Suresh S/o. Rambhauappa Muley, Chandrakant s/o Dhondiram Gore, Shivaji s/o Fakira Deore, Dnyandeo s/o Shankar Choudhary, Shankar s/o Rangnath Tupe

The State of Maharashtra, M/s. Automobile Products of India Ltd., M. K. Vaishnav, S. R. Shelke

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Nature of Litigation

Letters Patent Appeal against dismissal of writ petition challenging Industrial Court order dismissing complaint of unfair labour practice under Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act.

Remedy Sought

Appellants sought to set aside the order dated 01-03-2005 in Writ Petition No. 728 of 2005 and the Industrial Court order dismissing their complaint.

Filing Reason

Appellants alleged that the voluntary retirement scheme and agreement between the union and employer were collusive and without their consent, and that they accepted the cheque under protest and duress.

Previous Decisions

Writ Petition No. 728 of 2005 was dismissed on 01-03-2005; Industrial Court dismissed the complaint of unfair labour practice.

Issues

Whether the voluntary retirement scheme and agreement were vitiated by lack of consent, collusion, or duress, constituting unfair labour practice under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act.

Submissions/Arguments

Appellants argued that the whole procedure was de hors legal procedure, they never consented to the scheme, the agreement between union and employer was collusive, and they accepted the cheque under protest and duress as they had not received six months salary.

Ratio Decidendi

The appellants failed to establish any unfair labour practice, coercion, or collusion in the voluntary retirement scheme; acceptance of benefits under protest without proof of duress does not vitiate the scheme.

Judgment Excerpts

This Letters Patent Appeal purports to take exception to order dated 01-03-2005 passed in writ petition no. 728 of 2005, dismissing the writ petition which has been preferred against the order of Industrial Court dismissing the complaint of petitioners under Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, alleging unfair labour practice. Mr Shahane, learned counsel for appellants vehemently contends that the whole procedure followed in respect of the scheme and agreement for voluntary retirement scheme has been de hors the legal procedure.

Procedural History

The appellants filed a complaint under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act before the Industrial Court, which was dismissed. They then filed Writ Petition No. 728 of 2005 before the High Court, which was dismissed on 01-03-2005. Thereafter, they filed the present Letters Patent Appeal No. 116 of 2005.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971:
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