Case Note & Summary
The petitioner, Shrirampur Municipal Council, a local body constituted under the Maharashtra Municipal Councils, Nagar Panchayats & Industrial Townships Act, 1965, challenged an award of the Industrial Tribunal, Ahmednagar, dated 8/10/1987 in Ref.(IT) 6 of 1984. The reference was made by the State of Maharashtra under Section 12(5) of the Industrial Disputes Act, 1947 (IDA). The award granted relief on demands 1, 2, and 4. Demand 1 sought increase in sanctioned posts on the establishment schedule; demand 2 sought permanency for workmen who had put in more than 180 days of work with consequential benefits; demand 4 sought daily wages calculated by dividing the salary of permanent staff by 26, invoking equal pay for equal work. The Municipal Council argued that the Tribunal lacked jurisdiction to entertain these demands, as they pertained to administrative matters under the 1965 Act. The workmen's unions supported the award. The High Court held that the reference under Section 12(5) IDA was valid and the Tribunal had jurisdiction. However, demand 1 regarding increase in sanctioned posts was not maintainable as it fell within the exclusive domain of the municipal council under the 1965 Act. The Court upheld the award on demands 2 and 4, granting permanency to workmen who completed 180 days and directing daily wage calculation at 1/26th of the monthly salary. The petitions were partly allowed, modifying the award to exclude demand 1.
Headnote
A) Industrial Law - Reference under Section 12(5) of Industrial Disputes Act, 1947 - Jurisdiction of Industrial Tribunal - The Tribunal has jurisdiction to adjudicate demands for permanency and equal pay for workmen of a municipal council, as the reference was validly made by the State Government. (Paras 1-5)
B) Municipal Law - Establishment Schedule - Increase in Sanctioned Posts - The demand for increase in sanctioned posts is not maintainable as it falls within the exclusive domain of the municipal council under the Maharashtra Municipal Councils, Nagar Panchayats & Industrial Townships Act, 1965. (Paras 6-10)
C) Industrial Law - Permanency - Completion of 180 Days - Workmen who have completed 180 days of continuous service are entitled to permanency with consequential benefits, as per the Industrial Tribunal's award. (Paras 11-15)
D) Industrial Law - Equal Pay for Equal Work - Daily Wage Calculation - The Tribunal's direction to calculate daily wages by dividing monthly salary by 26 is upheld, applying the principle of equal pay for equal work. (Paras 16-20)
Issue of Consideration
Whether the Industrial Tribunal had jurisdiction to grant permanency and equal pay to workmen of a municipal council, and whether the demands were sustainable under the Industrial Disputes Act, 1947.
Final Decision
The High Court partly allowed the writ petitions. The award on demand 1 (increase in sanctioned posts) was quashed. The award on demands 2 and 4 (permanency and daily wage calculation) was upheld. The petitions were disposed of accordingly.
Law Points
- Industrial Disputes Act
- 1947
- Section 12(5)
- Maharashtra Municipal Councils Act
- 1965
- Equal Pay for Equal Work
- Permanency
- Daily Wage Calculation
Case Details
2011 LawText (BOM) (03) 10
WRIT PETITION NO. 3238 OF 1992 (Aurangabad) (i.e. WRIT PETITION NO. 3348 OF 1988 (Bombay)) WITH WRIT PETITION NO. 1017 OF 1995
Mr. V.S. Bedre for petitioner; Mr. S.K. Shelke for respondent no.2; Mr. D.D. Pokharkar for respondent no.3; Mrs. V.A. Shinde for respondent nos.4 and 5
Shrirampur Municipal Council, Shrirampur, District: Ahmednagar, through Chief Officer
1. Shri V.K. Barde, Member, Industrial Tribunal, Ahmednagar; 2. Sarva Sramik Sangha, Trade Union; 3. Shrirampur Municipal Servants Union; 4. Director of Municipal Administration; 5. State of Maharashtra
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Nature of Litigation
Writ petitions under Article 226 of the Constitution of India challenging an award of the Industrial Tribunal.
Remedy Sought
Quashing of the award dated 8/10/1987 in Ref.(IT) 6 of 1984, particularly relief granted on demands 1, 2, and 4.
Filing Reason
The petitioner municipal council challenged the Industrial Tribunal's award granting increase in sanctioned posts, permanency to workmen completing 180 days, and daily wage calculation at 1/26th of monthly salary.
Previous Decisions
The Industrial Tribunal, Ahmednagar, delivered award-II dated 8/10/1987 in Ref.(IT) 6 of 1984.
Issues
Whether the Industrial Tribunal had jurisdiction to adjudicate demands regarding increase in sanctioned posts, permanency, and equal pay for workmen of a municipal council.
Whether the award on demand 1 (increase in sanctioned posts) is sustainable.
Whether the award on demand 2 (permanency after 180 days) is sustainable.
Whether the award on demand 4 (daily wage calculation at 1/26th) is sustainable.
Submissions/Arguments
Petitioner argued that the Industrial Tribunal lacked jurisdiction as the demands pertained to administrative matters under the Maharashtra Municipal Councils Act, 1965.
Respondent unions supported the award, contending that the reference was valid and the Tribunal had jurisdiction.
Ratio Decidendi
The Industrial Tribunal has jurisdiction under Section 12(5) of the Industrial Disputes Act, 1947 to adjudicate demands for permanency and equal pay for workmen of a municipal council. However, demand for increase in sanctioned posts falls within the exclusive domain of the municipal council under the Maharashtra Municipal Councils Act, 1965 and is not maintainable before the Tribunal.
Judgment Excerpts
Basic challenge in the 1992 petition filed under Art. 226 of the Constitution of India is to award-II dated 8/10/1987 delivered by Industrial Tribunal, Ahmadnagar in Ref.(IT) 6 of 1984 with prayer to quash relief granted in relation to demand 1,2 & 4.
Demand no. 1 is about increase in sanctioned posts on establishment schedule of the Petitioner.
Demand no. 2 is to grant permanency to all those who have put in more than 180 days work with consequential benefits like pay-scales, D.A.etc & to continue to confer permanency in future on all workmen completing that period.
By demand no. 4 the Union sought wages per day calculated by dividing the salaried of permanent staff by 26 ie at 1/26 by invoking the concept of equal pay for equal work.
Procedural History
The State of Maharashtra made a reference under Section 12(5) of the Industrial Disputes Act, 1947 to the Industrial Tribunal, Ahmednagar, which was registered as Ref.(IT) 6 of 1984. The Tribunal delivered award-II on 8/10/1987. The petitioner municipal council filed Writ Petition No. 3238 of 1992 (originally 3348 of 1988) challenging the award. Another related petition, Writ Petition No. 1017 of 1995, was also filed. Both were heard together and disposed of by this common judgment.
Acts & Sections
- Industrial Disputes Act, 1947: Section 12(5)
- Maharashtra Municipal Councils, Nagar Panchayats & Industrial Townships Act, 1965:
- Constitution of India: Article 226
