Bombay High Court Dismisses Management's Petition Challenging Industrial Court's Interim Relief Order in Service Dispute. Regulation 88 of MSEDCL Employees Service Regulations, 2005 mandates payment of full pay and allowances as subsistence allowance during suspension pending criminal proceedings, and the Industrial Court correctly granted such relief.

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

The case involves a writ petition filed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) challenging an order of the Industrial Court, Latur, dated 13/06/2018. The Industrial Court had allowed Revision (ULP) No. 14/2017 filed by the employee, Nathuram Wamanrao Mundhe, and set aside the Labour Court's interim order dated 31/08/2017 which had refused interim relief to the employee. The employee was suspended following the registration of a criminal case under Section 7 of the Prevention of Corruption Act based on a complaint by one Ramkishan Nivrutti Kendre. A charge-sheet was issued alleging misconduct, and an enquiry officer was appointed. The management did not lead evidence, and the enquiry officer found the employee guilty of Charge Nos. 1 and 4, while Charge Nos. 2 and 3 were not proved. The management issued a show cause notice dated 25/10/2016. The employee approached the Labour Court seeking interim relief, which was refused. The Industrial Court, in revision, allowed the employee's revision and directed the management to pay subsistence allowance at full pay and allowances during the period of suspension. The management challenged this order before the High Court. The High Court, after considering submissions and examining Regulation 88 of the MSEDCL Employees Service Regulations, 2005, held that the Industrial Court's order was justified. Regulation 88 provides that when an employee is suspended pending criminal proceedings, he is entitled to full pay and allowances as subsistence allowance. The High Court noted that the Labour Court had erred in refusing interim relief. The petition was dismissed, and the Industrial Court's order was upheld. The High Court directed the management to pay the subsistence allowance as ordered by the Industrial Court within four weeks.

Headnote

A) Service Law - Suspension - Subsistence Allowance - Regulation 88 of MSEDCL Employees Service Regulations, 2005 - The employee was suspended following registration of a criminal case under the Prevention of Corruption Act. The Industrial Court allowed revision and directed payment of subsistence allowance at full pay and allowances. Held that Regulation 88 mandates payment of full pay and allowances during suspension when criminal proceedings are pending, and the Industrial Court correctly interfered with the Labour Court's order refusing interim relief. (Paras 2-5)

B) Industrial Law - Interim Relief - Revision Jurisdiction - Industrial Court (Maharashtra) - The Labour Court had refused interim relief to the employee. The Industrial Court, in revision, set aside that order and granted interim relief. Held that the Industrial Court has jurisdiction to grant interim relief in revision, and the order was justified on facts and law. (Paras 2-5)

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Issue of Consideration

Whether the Industrial Court was justified in granting interim relief to the employee by directing payment of subsistence allowance at full pay and allowances during suspension pending criminal proceedings, despite the Labour Court having refused such relief.

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Final Decision

Writ petition dismissed. Industrial Court's order dated 13/06/2018 upheld. Management directed to pay subsistence allowance at full pay and allowances to the employee within four weeks.

Law Points

  • Subsistence allowance
  • Suspension pending criminal proceedings
  • Regulation 88 MSEDCL Service Regulations
  • 2005
  • Full pay and allowances
  • Interim relief
  • Industrial Court jurisdiction
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Case Details

2020 LawText (BOM) (02) 16

Writ Petition No. 11616 of 2018

2020-02-20

Ravindra V. Ghuge

Shri U. S. Malte for Petitioners, Shri A. S. Deshpande for Respondent

Chief Engineer, Latur Zone & Competent Officer, Maharashtra State Electricity Distribution Company Limited and Another

Nathuram s/o Wamanrao Mundhe

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Nature of Litigation

Writ petition challenging Industrial Court's order granting interim relief to employee in service dispute

Remedy Sought

Petitioner management sought to quash Industrial Court order directing payment of subsistence allowance at full pay and allowances

Filing Reason

Management aggrieved by Industrial Court allowing revision and setting aside Labour Court's refusal of interim relief

Previous Decisions

Labour Court refused interim relief on 31/08/2017; Industrial Court allowed Revision (ULP) No. 14/2017 on 13/06/2018 granting interim relief

Issues

Whether the Industrial Court was justified in granting interim relief to the employee by directing payment of subsistence allowance at full pay and allowances during suspension pending criminal proceedings

Submissions/Arguments

Petitioner management argued that the Industrial Court erred in interfering with the Labour Court's order refusing interim relief Respondent employee argued that Regulation 88 entitles him to full pay and allowances during suspension pending criminal proceedings

Ratio Decidendi

Regulation 88 of MSEDCL Employees Service Regulations, 2005 mandates payment of full pay and allowances as subsistence allowance to an employee suspended pending criminal proceedings. The Industrial Court correctly exercised its revision jurisdiction to grant interim relief when the Labour Court had erroneously refused it.

Judgment Excerpts

The Petitioner / Management is aggrieved by the judgment and order dated 13/06/2018 delivered by the Industrial Court, Latur, by which, Revision (ULP) No. 14/2017, filed by the employee, has been allowed and the interim order of the Labour Court dated 31/08/2017, refusing interim relief to the Respondent, has been interfered with. I have considered the extensive submissions of the learned Advocates for the respective sides and with their assistance, I have gone through Regulation 88 of the MSEDCL employees service Regulations, 2005.

Procedural History

Complaint under Prevention of Corruption Act led to criminal case and suspension of employee. Charge-sheet issued, enquiry held, employee found guilty of some charges. Show cause notice issued. Employee approached Labour Court for interim relief, which was refused on 31/08/2017. Employee filed Revision (ULP) No. 14/2017 before Industrial Court, which allowed it on 13/06/2018 granting interim relief. Management filed Writ Petition No. 11616 of 2018 before High Court, which dismissed it on 20/02/2020.

Acts & Sections

  • Prevention of Corruption Act: Section 7
  • MSEDCL Employees Service Regulations, 2005: Regulation 88
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