Bombay High Court Allows Petition Against Rejection of Condonation of Delay in Setting Aside Ex Parte Award in Labour Dispute. The Court directed the Labour Court to decide the application afresh on merits, considering the petitioner's bona fides and explanation for delay.

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

The petitioner, M/s. Bansilal Kochar Cotton Ginning and Pressing Factory, challenged an order dated 20/1/2011 passed by the Labour Court, Wardha, which rejected its application (Exh. 1) for condonation of delay in filing an application to set aside an ex parte Award dated 2/2/2007 in Reference (ID) No.89/1996. The Labour Court rejected the application solely on the ground that the petitioner had not paid the process fee to facilitate service on the respondents, observing that the petitioner was not prosecuting the remedy with due diligence. The High Court, on 19/4/2011, directed the petitioner to deposit Rs.1,25,000/- to show bona fides, which was deposited by cheque. The High Court found that the Labour Court had not considered the explanation for delay and the petitioner's bona fides. It set aside the impugned order and directed the Labour Court to decide the application for condonation of delay afresh on merits, after giving an opportunity of hearing to both parties. The petition was allowed and rule made absolute accordingly.

Headnote

A) Labour Law - Condonation of Delay - Process Fee - The Labour Court rejected the application for condonation of delay in filing an application to set aside an ex parte award on the ground that the petitioner had not paid process fee for service on respondents. The High Court held that the Labour Court ought to have considered the explanation for delay and the bona fides of the petitioner, especially when the petitioner had deposited a substantial amount as directed by the High Court. The impugned order was set aside and the Labour Court was directed to decide the application afresh on merits. (Paras 2-4)

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Issue of Consideration

Whether the Labour Court was justified in rejecting the application for condonation of delay solely on the ground of non-payment of process fee, without considering the merits of the delay.

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Final Decision

The High Court allowed the writ petition, set aside the impugned order dated 20/1/2011, and directed the Labour Court to decide the application for condonation of delay afresh on merits after giving an opportunity of hearing to both parties. Rule made absolute.

Law Points

  • Condonation of delay
  • process fee
  • bona fides
  • ex parte award
  • Labour Court
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Case Details

2011 LawText (BOM) (06) 117

Writ Petition No.1812 of 2011

2011-06-27

R.M. Savant, J.

N.S. Warulkar for petitioner, C.N. Adgokar for respondent no.1, S.A. Kalbande for respondent no.2

M/s. Bansilal Kochar Cotton Ginning and Pressing Factory

The Presiding Officer, Labour Court, Wardha & Bhaurao s/o Ganpat Suryawanshi (through LRs)

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Nature of Litigation

Writ petition challenging rejection of application for condonation of delay in setting aside ex parte award.

Remedy Sought

Petitioner sought to set aside the ex parte Award dated 2/2/2007 and sought condonation of delay in filing the application.

Filing Reason

The Labour Court rejected the application for condonation of delay on the ground of non-payment of process fee.

Previous Decisions

Labour Court rejected application for condonation of delay on 20/1/2011.

Issues

Whether the Labour Court erred in rejecting the application for condonation of delay solely on the ground of non-payment of process fee.

Submissions/Arguments

Petitioner argued that the Labour Court ought to have considered the explanation for delay and the bona fides. Respondents supported the Labour Court's order.

Ratio Decidendi

The Labour Court should not reject an application for condonation of delay solely on the ground of non-payment of process fee without considering the explanation for delay and the bona fides of the applicant.

Judgment Excerpts

The learned Judge has, therefore, observed that the petitioner herein, who was the applicant before the Labour Court was not prosecuting the said remedy with due diligence and it appeared that it was not interested. The above petition came up for admission on 19/4/2011 when this Court to see the bona fides of the petitioner had directed it to deposit a sum of Rs.1,25,000/-...

Procedural History

The Labour Court passed an ex parte Award on 2/2/2007 in Reference (ID) No.89/1996. The petitioner filed an application to set aside the award along with an application for condonation of delay. The Labour Court rejected the condonation application on 20/1/2011. The petitioner then filed the present writ petition on 19/4/2011, and the High Court directed deposit of Rs.1,25,000/-. The petition was heard on 27/6/2011.

Acts & Sections

  • Industrial Disputes Act, 1947:
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