High Court Upholds Industrial Court Order Against Unfair Labour Practice in Demotion of Driver to Lift Operator. Employer's Unilateral Change of Service Conditions Without Notice Under Section 9-A of Industrial Disputes Act, 1947 Constitutes Unfair Labour Practice Under Items 3, 5 and 9 of Schedule IV of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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

The petitioner, King Edward Memorial Hospital, challenged the order of the Industrial Court, Pune, which allowed the complaint filed by the respondent, Suresh D. Gaikwad, declaring that the employer engaged in unfair labour practice under Items 3, 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The respondent had served as a Driver in the Indian Army for fifteen years and was appointed as a Driver by the petitioner on 04.05.1994. He worked continuously as a Driver for fourteen years. In July 2002, the employer demoted him to the post of Lift Operator, and later, on 01.12.2008, unilaterally changed his designation and duties without prior notice or issuing notice under Section 9-A of the Industrial Disputes Act, 1947. The respondent contended that the work of a Driver is semi-skilled while that of a Lift Operator is unskilled, and the change in service conditions was prejudicial. The employer argued that the complaint was not maintainable as the dispute could be raised under the I.D. Act, and that the change was not a demotion but a transfer. The Industrial Court allowed the complaint, directing the employer to desist from unfair labour practice and to restore the respondent to the post of Driver with wages. The High Court, in its analysis, held that the Industrial Court had jurisdiction to entertain the complaint under the MRTU and PULP Act, and that the employer's unilateral action without notice under Section 9-A of the I.D. Act constituted unfair labour practice. The High Court found no perversity or error of jurisdiction in the Industrial Court's order and dismissed the writ petition, upholding the direction to restore the respondent to the post of Driver.

Headnote

A) Industrial Law - Unfair Labour Practice - Demotion - Items 3, 5 and 9 of Schedule IV of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Section 9-A of Industrial Disputes Act, 1947 - The employer unilaterally changed the service conditions of the complainant by demoting him from Driver to Lift Operator without issuing any notice under Section 9-A of the I.D. Act. The Industrial Court held that such action amounts to unfair labour practice. The High Court upheld the order, finding no perversity or error of jurisdiction. (Paras 2-5, 10-11)

B) Industrial Law - Jurisdiction of Industrial Court - Items 3, 5 and 9 of Schedule IV of MRTU and PULP Act, 1971 - The Industrial Court has jurisdiction to entertain a complaint alleging unfair labour practice even if the dispute could be raised under the I.D. Act. The employer's contention that the complaint was not maintainable was rejected. (Paras 6-9)

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Issue of Consideration

Whether the employer's unilateral action of changing the complainant's designation from Driver to Lift Operator without issuing notice under Section 9-A of the Industrial Disputes Act, 1947 constitutes unfair labour practice under Items 3, 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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Final Decision

The High Court dismissed the writ petition, upholding the order of the Industrial Court. The employer was directed to desist from unfair labour practice and to restore the respondent to the post of Driver with wages.

Law Points

  • Unfair labour practice
  • Demotion
  • Change of service conditions
  • Notice under Section 9-A
  • Items 3
  • 5 and 9 of Schedule IV
  • MRTU and PULP Act
  • 1971
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Case Details

2012 LawText (BOM) (12) 26

Writ Petition No.9360 of 2012

2012-12-12

R. G. Ketkar, J.

Mr. J. P. Cama, Senior Advocate a/w. Mr. Hemant Telkar, Mr. Neel Helekar and Mr. Atman Mehta for the Petitioner; Ms Gayatri Singh for the Respondent

King Edward Memorial Hospital

Suresh D. Gaikwad

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging the order of the Industrial Court allowing a complaint of unfair labour practice.

Remedy Sought

The petitioner (employer) sought to quash the order of the Industrial Court which declared unfair labour practice and directed restoration of the respondent to the post of Driver.

Filing Reason

The employer challenged the Industrial Court's order on the ground that the complaint was not maintainable and that the change in designation was not a demotion but a transfer.

Previous Decisions

The Industrial Court, Pune, in Complaint (ULP) No.230 of 2008, allowed the complaint and declared unfair labour practice under Items 3, 5 and 9 of Schedule IV of the MRTU and PULP Act, 1971.

Issues

Whether the Industrial Court had jurisdiction to entertain the complaint under the MRTU and PULP Act, 1971? Whether the employer's unilateral change of the complainant's designation from Driver to Lift Operator without notice under Section 9-A of the Industrial Disputes Act, 1947 constitutes unfair labour practice?

Submissions/Arguments

The petitioner argued that the complaint was not maintainable as the dispute could be raised under the Industrial Disputes Act, 1947, and that the change was a transfer, not a demotion. The respondent argued that the employer unilaterally changed his service conditions without notice under Section 9-A of the I.D. Act, which amounts to unfair labour practice under Items 3, 5 and 9 of Schedule IV of the MRTU and PULP Act, 1971.

Ratio Decidendi

The Industrial Court has jurisdiction to entertain a complaint under the MRTU and PULP Act, 1971, even if the dispute could be raised under the I.D. Act. Unilateral change of service conditions without notice under Section 9-A of the I.D. Act constitutes unfair labour practice under Items 3, 5 and 9 of Schedule IV of the MRTU and PULP Act, 1971.

Judgment Excerpts

By this Petition, under Articles 226 and 227 of the Constitution of India, the petitioners, hereinafter referred to as the employer have challenged the judgment and order dated 18.08.2012 passed by the learned Member, Industrial Court, Pune (for short 'Tribunal') in Complaint (ULP) No.230 of 2008. The Tribunal also directed the employer not to change the service conditions of the complainant and provide him the work and wages of Driver. Before effecting change in service conditions, no notice under Section 9-A of the Industrial Disputes Act, 1947 (for short 'I.D.Act') was issued to him.

Procedural History

The respondent filed Complaint (ULP) No.230 of 2008 before the Industrial Court, Pune, alleging unfair labour practice. The Industrial Court allowed the complaint on 18.08.2012. The employer challenged this order by filing Writ Petition No.9360 of 2012 before the High Court of Judicature at Bombay. The High Court dismissed the writ petition on 12.12.2012.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Items 3, 5 and 9 of Schedule IV
  • Industrial Disputes Act, 1947: Section 9-A
  • Constitution of India: Articles 226 and 227
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