Case Note & Summary
The petitioners, eight workers employed with the Zilla Parishad, Ahmednagar, filed a complaint under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) seeking permanency in service. The Industrial Court, by order dated 4th April 1990, declared that the respondent had committed an unfair labour practice under Item 6 of Schedule IV of the Act and directed the respondent to accord the petitioners the status and benefits of permanency with effect from 1st July 1987. The court also directed fixation of salary in the time scale and payment of all monetary benefits including bonus by 30th June 1990, failing which interest at 12% p.a. from 1st April 1990 would be payable. Instead of complying with the order, the respondent entered into an agreement with the petitioners to create an independent trust with the petitioners as employees of the trust, effective from 1st October 1990 to 30th September 1995. The petitioners challenged this agreement and sought enforcement of the Industrial Court's order. The High Court held that the agreement could not override the binding order of the Industrial Court. The court directed the respondent to implement the Industrial Court's order and pay all arrears with interest at 12% p.a. from 1st April 1990 until realization. The writ petition was allowed.
Headnote
A) Industrial Law - Permanency in Service - Unfair Labour Practice - Items 5, 6, 9, 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court declared that the respondent Zilla Parishad committed unfair labour practice under Item 6 and directed permanency with benefits from 1st July 1987. The respondent instead of complying entered into an agreement with petitioners to create a trust. The High Court held that the agreement cannot override the statutory order and the petitioners are entitled to permanency as directed. (Paras 1-3) B) Industrial Law - Agreement - Validity - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - An agreement between employer and employees after a binding order of the Industrial Court cannot nullify the order. The court directed the respondent to implement the Industrial Court's order and pay arrears with interest at 12% p.a. from 1st April 1990. (Paras 2-3)
Issue of Consideration
Whether the agreement entered into between the petitioners and the respondent after the Industrial Court's order granting permanency can override the said order and whether the petitioners are entitled to permanency benefits despite the agreement.
Final Decision
The High Court allowed the writ petition and directed the respondent Zilla Parishad to implement the Industrial Court's order dated 4th April 1990 and pay all arrears with interest at 12% p.a. from 1st April 1990 until realization.
Law Points
- Permanency in service
- Unfair labour practice
- Agreement cannot override statutory order
- MRTU & PULP Act
- Schedule IV Item 6
