Bombay High Court Allows Employer's Petition Against Exparte Labour Court Award for Violation of Natural Justice. Employer Denied Opportunity to Defend Due to Non-Service of Notice, Award Set Aside and Matter Remanded.

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

The judgment pertains to two writ petitions filed by the employer, the Deputy Engineer of Zilla Parishad Constructions, challenging an exparte award passed by the Labour Court, Chandrapur, and the subsequent rejection of the employer's application to set aside that exparte award. The background involves two workmen, Bapurao Nathuji Barde and Suryabhan Baghu Khadsang, who claimed to have joined service as unskilled labourers on 01.07.1988 and 01.02.1989 respectively. They alleged that their services were terminated on 11.09.1992 without any reason and without following the procedure under Section 25F of the Industrial Disputes Act, 1947, and that juniors were retained. After conciliation failed, the matter was referred to the Labour Court. The employer admitted the workmen's service but denied the termination, claiming that the workmen had abandoned service. The Labour Court proceeded exparte and passed an award in favor of the workmen. The employer filed an application to set aside the exparte award, which was rejected. The High Court considered whether the Labour Court was justified in passing the exparte award and refusing to set it aside. The Court noted that the employer had alleged non-service of notice and had shown sufficient cause for non-appearance. The Court held that the Labour Court ought to have considered the application on merits and that the principles of natural justice required giving the employer an opportunity to be heard. The Court allowed the petitions, set aside the impugned orders, and remanded the matters to the Labour Court for fresh adjudication after giving the employer an opportunity to file a written statement and lead evidence. The Court directed the Labour Court to decide the matters expeditiously, preferably within six months.

Headnote

A) Industrial Law - Exparte Award - Setting Aside - Sufficient Cause - Industrial Disputes Act, 1947 - Section 25F - The employer challenged an exparte award passed by the Labour Court on the ground that no notice of the proceedings was served upon him. The Court held that the Labour Court ought to have considered the employer's application for setting aside the exparte award on merits, as the employer had shown sufficient cause for non-appearance. The matter was remanded for fresh adjudication after giving the employer an opportunity to be heard. (Paras 1-10)

B) Industrial Law - Termination - Retrenchment - Compliance with Section 25F - Industrial Disputes Act, 1947 - Section 25F - The workmen claimed that their services were terminated without following the procedure under Section 25F of the Industrial Disputes Act, including payment of retrenchment compensation. The employer denied the termination and claimed that the workmen had abandoned service. The Court did not decide this issue on merits but remanded the matter for fresh consideration. (Paras 2-10)

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Issue of Consideration

Whether the Labour Court was justified in passing an exparte award and refusing to set it aside despite the employer's claim of non-service of notice.

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Final Decision

The High Court allowed the writ petitions, set aside the impugned orders of the Labour Court, and remanded the matters to the Labour Court for fresh adjudication after giving the employer an opportunity to file a written statement and lead evidence. The Labour Court was directed to decide the matters expeditiously, preferably within six months.

Law Points

  • Natural Justice
  • Exparte Award
  • Setting Aside Exparte Decree
  • Sufficient Cause
  • Industrial Disputes Act
  • Section 25F
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Case Details

2010 LawText (BOM) (03) 144

Writ Petition No.3997 of 2001 with Writ Petition No.3998 of 2001

2010-03-31

R.C. Chavan

Shri M.V. Mohokar for Petitioner/Employer, Shri P.D. Meghe for Respondents/Employees, Mrs. Indira Bodade, A.G.P. for Respondent No.3

Dy. Engineer, Zilla Parishad Constructions, Sub Division, Warora

Bapurao Nathuji Barde and Suryabhan Baghu Khadsang

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Nature of Litigation

Writ petitions challenging exparte award of Labour Court and rejection of application to set aside exparte award.

Remedy Sought

Employer sought setting aside of exparte award and opportunity to defend before Labour Court.

Filing Reason

Employer claimed that no notice of Labour Court proceedings was served upon him, leading to exparte award.

Previous Decisions

Labour Court passed exparte award in favor of workmen; Labour Court rejected employer's application to set aside exparte award.

Issues

Whether the Labour Court was justified in passing an exparte award without ensuring service of notice on the employer. Whether the Labour Court erred in rejecting the employer's application to set aside the exparte award.

Submissions/Arguments

Employer argued that no notice of the proceedings was served upon him and he had sufficient cause for non-appearance. Workmen argued that the employer was duly served and the exparte award was justified.

Ratio Decidendi

An exparte award passed without proper service of notice violates principles of natural justice. The Labour Court must consider an application to set aside an exparte award on merits if the applicant shows sufficient cause for non-appearance.

Judgment Excerpts

These petitions by employer are directed against an exparte award/judgment by the learned Judge, Labour Court, Chandrapur which he refused to set aside by rejecting the petitioner's application for setting aside exparte award. The respondents in Writ Petition Nos. 3997/2001 and 3998/2001 claimed to have joined services of the petitioner as unskilled labourers on 01.07.1988 and 01.02.1989, respectively.

Procedural History

Workmen filed complaints before Labour Court; Labour Court passed exparte award; employer filed application to set aside exparte award which was rejected; employer filed writ petitions before High Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25F
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