Bombay High Court Dismisses Petition Challenging Industrial Court Order in Unfair Labour Practice Case — Petitioner Failed to Prove Employee-Employer Relationship with Respondent Company.

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

The petitioner, Ramesh Bhalchandra Chavre, filed a complaint under Section 28(1) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) before the Industrial Court, Ahmednagar, alleging that the respondent, M/s. Somaiya Organo Chemicals Ltd., had engaged in unfair labour practices under Items 5, 6 and 9 of Schedule IV of the Act. The petitioner claimed that he was appointed as a workman on or about 1.1.1987, worked for 15 days in 1987, and received wages of Rs.586/- per month from 1.1.1988 onwards. He further stated that he had previously worked with Godavari Sugar Mills (G.S. Mills) from 1963 until its closure in 1986, and after receiving all legal dues, he retained the quarter allotted by G.S. Mills, which was maintained by the respondent. The petitioner alleged that he and 70-80 other former G.S. Mills employees were recruited by the respondent but were treated differently in terms of pay, allowances, bonus, and leave. He claimed to have worked continuously for more than 240 days and demanded arrears of wages in November 1989, after which the respondent stopped providing work from 11.11.1989. The respondent denied all allegations, asserting that the petitioner was not its employee and not a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947. The Industrial Court dismissed the complaint, holding that the petitioner failed to prove the employer-employee relationship. The High Court, in the present writ petition, upheld the Industrial Court's order, finding no perversity or error of law. The court noted that the petitioner did not produce sufficient evidence to establish his employment with the respondent, and the mere retention of a quarter or prior service with G.S. Mills did not create an employer-employee relationship. The petition was dismissed.

Headnote

A) Industrial Law - Unfair Labour Practice - Burden of Proof - Items 5, 6, 9 of Schedule IV, MRTU & PULP Act, 1971 - The complainant failed to prove that he was an employee of the respondent company. The Industrial Court correctly held that the petitioner did not establish the employer-employee relationship, and therefore, no unfair labour practice was made out. (Paras 1-10)

B) Industrial Law - Workman - Definition - Section 2(s) of Industrial Disputes Act, 1947 - The petitioner claimed to be a workman but did not produce sufficient evidence of employment with the respondent. The court upheld the finding that the petitioner was not a workman under the Act. (Paras 2-10)

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Issue of Consideration

Whether the petitioner was a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947 and whether the respondent company indulged in unfair labour practices under Items 5, 6 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order dated 17.7.1991.

Law Points

  • Burden of proof lies on complainant to establish employee-employer relationship
  • Mere retention of quarter does not establish employment
  • No presumption of employment from prior service with another entity
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Case Details

2010 LawText (BOM) (01) 345

WRIT PETITION NO. 2664 OF 1991

2010-01-04

S.S. SHINDE, J.

Mr. T.K. Prabhakaran for petitioner, Mr. B.B. Yenge for respondent

Ramesh Bhalchandra Chavre

M/s. Somaiya Organo Chemicals Ltd.

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Nature of Litigation

Writ petition challenging the judgment and order of the Industrial Court dismissing complaint alleging unfair labour practices.

Remedy Sought

Petitioner sought to quash the Industrial Court's order and to establish that the respondent indulged in unfair labour practices.

Filing Reason

Petitioner alleged that respondent stopped providing work from 11.11.1989 and did not make him permanent despite continuous service.

Previous Decisions

Industrial Court, Ahmednagar, dismissed complaint (ULP) No. 55 of 1990 on 17.7.1991.

Issues

Whether the petitioner was a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947? Whether the respondent company indulged in unfair labour practices under Items 5, 6 and 9 of Schedule IV of the MRTU & PULP Act, 1971?

Submissions/Arguments

Petitioner argued that he was employed by respondent from 1.1.1987, worked continuously, and was denied work after demanding arrears. Respondent contended that petitioner was not its employee and not a workman under the Industrial Disputes Act.

Ratio Decidendi

The burden of proof lies on the complainant to establish the employer-employee relationship. Mere retention of a quarter or prior employment with another entity does not prove employment with the respondent. The Industrial Court's finding that the petitioner failed to prove he was a workman or that the respondent indulged in unfair labour practices was not perverse and did not warrant interference.

Judgment Excerpts

This petition is filed challenging the judgment and order dated 17.7.1991, passed by the Industrial Court, Ahmednagar, in complaint (ULP) No. 55 of 1990. It is the case of the petitioner that the respondent is a company registered under the Indian Companies Act, engaged in manufacturing the acid. The respondent company filed its written statement at Exh. C-3 denying all allegations against the company.

Procedural History

The petitioner filed complaint (ULP) No. 55 of 1990 before the Industrial Court, Ahmednagar, which was dismissed on 17.7.1991. The petitioner then filed the present writ petition before the Bombay High Court, which was dismissed on 4.1.2010.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28(1), Schedule IV Items 5, 6, 9
  • Industrial Disputes Act, 1947: Section 2(s)
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