Case Note & Summary
The petitioner, Maharashtra State Road Transport Corporation (MSRTC), challenged the Labour Court's award dated 18/10/2008 in IDA Reference No. 4/2007, which granted full back wages to the respondent employee, Sambhaji Shivram Pawar, for the period from his removal on 15/9/1975 until his superannuation on 31/7/1998, a span of about 23 years. The respondent had joined MSRTC on 18/12/1965 as a head mechanic at Khamgaon depot. On the night of 5/8/1975-6/8/1975, a theft of tyres occurred during his duty, leading to police registration of Crime No. 213/1975 under Sections 419, 424, 511, 170 read with Section 34 of the Indian Penal Code. The respondent was arrested and subsequently removed from service under Regulation 61(b) of the Service Regulations without any reason assigned on 15/9/1975. The Division Bench of the Bombay High Court in Divisional Controller, MSRTC, Nagpur vs. Shrihari, reported at 1990 Mh.L.J. 668, declared Regulation 61(b) unconstitutional. Following this, the Labour Court directed the petitioner to pay full back wages from 15/9/1975 to 31/7/1998 and other retirement benefits. The petitioner contended that the respondent was guilty of laches, having filed a ULP complaint (251/1980) almost 5 years after removal, and did not prosecute it seriously, switching between forums in violation of Section 59 of the MRTU & PULP Act. The respondent argued that the reference was valid and that he had no source of income. The High Court, after considering the conduct of the employee and the burden on the public exchequer, held that full back wages were not justified. The court modified the award, reducing the back wages to 50% of the amount awarded, and directed the petitioner to pay the same along with other retirement benefits as per the Labour Court's order. The court also directed that the amount already deposited (Rs. 2,20,074) be adjusted accordingly.
Headnote
A) Service Law - Back Wages - Laches - Full back wages for 23 years granted by Labour Court set aside - Employee removed under unconstitutional regulation but delayed approaching court for 5 years and did not diligently prosecute remedy - Held that grant of full back wages is not automatic and must consider employee's conduct and burden on public exchequer (Paras 1-4) B) Industrial Disputes Act, 1947 - Section 10 - Reference - Maintainability - Reference made after earlier proceedings were withdrawn held valid - Held that once reference is made and adjudicated, earlier litigation loses relevance (Para 4) C) Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971 - Section 59 - Bar on simultaneous proceedings - Employee switched between forums prohibited by Section 59 - Held that such conduct disentitles full back wages (Para 3)
Issue of Consideration
Whether the Labour Court was justified in granting full back wages for about 23 years to an employee whose termination was declared illegal, given the employee's laches and delay in prosecuting the remedy
Final Decision
The High Court modified the Labour Court's award, reducing the back wages to 50% of the amount awarded, and directed the petitioner to pay the same along with other retirement benefits as per the Labour Court's order. The amount already deposited (Rs. 2,20,074) to be adjusted accordingly.
Law Points
- Full back wages not automatic upon declaration of termination as illegal
- employee's laches and delay in approaching court relevant
- burden on public exchequer to be considered
- Section 59 MRTU & PULP Act bars simultaneous proceedings
