Bombay High Court Dismisses Trade Union's Challenge to Exemption of Security Guards Under Section 23 of Maharashtra Private Security Guards Act. Board's Discretion to Grant Exemption Upheld as No Hearing Required for Trade Unions.

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

The Bombay High Court disposed of two writ petitions filed by Maharashtra Suraksha Rakshan Aghadi, a registered trade union, challenging notifications issued by the Security Guards Board for Greater Mumbai and Thane District granting exemption to security guards employed by certain principal employers under Section 23 of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981. In Writ Petition No. 6749 of 2009, the petitioner sought quashing of a notification dated 8th April, 2009 exempting security guards employed by M/s. New Bombay Park Hotel Pvt. Ltd. (respondent No.4) from the provisions of the Act for one year. In Writ Petition No. 4252 of 2009, the petitioner challenged a similar exemption granted to M/s. Industrial Security Consultants Pvt. Ltd. The petitioner argued that the Board had not applied its mind and that the trade union should have been heard before granting the exemption. The respondents contended that the Board had considered all relevant factors and that there was no requirement to hear the union. The Court held that the power under Section 23 is discretionary and the Board had properly exercised it. The Court found no violation of natural justice as the Act does not mandate hearing trade unions. Both petitions were dismissed, and the exemptions were upheld.

Headnote

A) Industrial Law - Security Guards - Exemption under Section 23 of Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 - The Board granted exemption to security guards employed by respondent No.4 principal employer from the provisions of the Act for a period of one year. The petitioner trade union challenged the notification on grounds of lack of hearing and non-application of mind. The Court held that the Board's power under Section 23 is discretionary and the Board had considered the relevant factors, including the nature of employment and the welfare of the guards. The Court also held that there is no requirement to hear trade unions before granting exemption under Section 23. The petition was dismissed. (Paras 3-10)

B) Industrial Law - Security Guards - Hearing before exemption - Section 23 of Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 - The petitioner trade union argued that it should have been heard before the exemption was granted. The Court held that the Act does not provide for any hearing to trade unions before granting exemption under Section 23. The Board's decision was based on the application and relevant material, and the Court found no violation of principles of natural justice. (Paras 8-10)

C) Industrial Law - Security Guards - Validity of exemption notification - Section 23 of Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 - The Court examined the notification dated 8th April, 2009 and found that the Board had applied its mind to the facts of the case, including the nature of the principal employer's business and the terms of employment of the security guards. The Court upheld the exemption as being within the Board's discretion and not arbitrary. (Paras 3-10)

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Issue of Consideration

Whether the Security Guards Board for Greater Mumbai and Thane District validly exercised its power under Section 23 of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 to grant exemption to security guards employed by a principal employer, and whether the petitioner trade union was entitled to be heard before such exemption was granted.

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Final Decision

Both writ petitions are dismissed. The exemption notifications are upheld. Rule discharged. No order as to costs.

Law Points

  • Exemption under Section 23 of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act
  • 1981 is discretionary
  • not automatic
  • Board must consider all relevant factors
  • no requirement to hear trade unions before granting exemption
  • exemption can be granted for a specified period.
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Case Details

2010 LawText (BOM) (08) 100

Writ Petition No. 6749 of 2009 and Writ Petition No. 4252 of 2009

2010-08-09

P.B. Majmudar, R.M. Savant

2010:BHC-AS:15219-DB

Mr. K.K. Singhvi, Senior Advocate, with Mr. Sushil Mahadeshwar, instructed by Smt. Ranjana Todankar for the petitioner; Smt. S.S. Bhende, AGP, for respondent No.1; Smt. Lata Desai, instructed by Smt. P. Divekar, for respondent No.2; Mr. A.J. Rizvi for respondent No.3; Mr. B. Palavi for respondent No.4

Maharashtra Suraksha Rakshan Aghadi

State of Maharashtra, The Security Guards Board for Greater Mumbai and Thane District, M/s. Industrial Security Consultants Pvt. Ltd., M/s. New Bombay Park Hotel Pvt. Ltd.

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Nature of Litigation

Writ petitions challenging notifications granting exemption to security guards under Section 23 of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981.

Remedy Sought

Quashing of the exemption notifications dated 8th April, 2009 and 2009 (for WP 4252) issued by the Security Guards Board.

Filing Reason

The petitioner trade union alleged that the Board granted exemption without application of mind and without hearing the union.

Issues

Whether the Security Guards Board validly exercised its power under Section 23 of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 to grant exemption? Whether the petitioner trade union was entitled to be heard before the exemption was granted?

Submissions/Arguments

Petitioner: The Board did not apply its mind and the exemption was granted without hearing the trade union, violating principles of natural justice. Respondents: The Board considered all relevant factors; there is no requirement to hear trade unions under Section 23; the exemption is discretionary and valid.

Ratio Decidendi

The power under Section 23 of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 is discretionary and the Board is not required to hear trade unions before granting exemption. The Board's decision, if based on relevant considerations, is not subject to interference under writ jurisdiction.

Judgment Excerpts

The petitioner union has prayed for quashing the notification dated 8th April, 2009 issued by the first respondent... by which exemption has been granted to the Security Guards employed by respondent No.4 principal employer under Section 23 of the Act. The Court held that the Board's power under Section 23 is discretionary and the Board had considered the relevant factors, including the nature of employment and the welfare of the guards. The Court also held that there is no requirement to hear trade unions before granting exemption under Section 23.

Procedural History

The writ petitions were filed in 2009 challenging exemption notifications. The court heard the parties and reserved judgment on 6th July, 2010, pronouncing it on 9th August, 2010.

Acts & Sections

  • Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981: Section 23
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