Bombay High Court Allows Writ Petition Seeking Reference of Industrial Dispute in Employer-Employee Relationship Case. Failure Report by Conciliation Officer Sufficient to Show Existence of Dispute Under Section 10 of Industrial Disputes Act, 1947.

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

The petitioner, Rajesh Binkar, filed a writ petition against the Secretary, Government of India, Ministry of Labour, and the New India Assurance Co. Ltd. (respondents 2 and 3), seeking a direction for reference of an industrial dispute to the appropriate authority. The dispute arose from the petitioner's claim of having worked with respondent Nos. 2 and 3, who denied any employer-employee relationship. The Assistant Labour Commissioner (Central), Nagpur, submitted a failure report after conciliation proceedings, indicating that a dispute existed regarding the relationship. The respondents argued that no employer-employee relationship was created, and the petitioner was a stranger. However, the court noted that the reply filed by respondent Nos. 2 and 3 did not categorically deny that the petitioner had rendered temporary service; instead, it stated that if the petitioner worked, it was of a temporary nature and did not constitute employment. The court found this equivocal and held that the failure report by the conciliation officer was sufficient to show that an industrial dispute existed or was apprehended. Relying on the Supreme Court's decision in Telco Convoy Drivers Mazdoor Sangh & Anr. vs. State of Bihar & Ors., (1989) 3 SCC 271, the court held that the appropriate government must consider the failure report and make a reference under Section 10 of the Industrial Disputes Act, 1947. The court allowed the writ petition, directing the Secretary, Government of India, Ministry of Labour, to consider the failure report and refer the dispute for adjudication within a reasonable time.

Headnote

A) Industrial Law - Reference of Dispute - Existence or Apprehension of Dispute - Industrial Disputes Act, 1947, Section 10 - The court considered whether a failure report by the conciliation officer indicating a dispute regarding employer-employee relationship is sufficient to warrant a reference under Section 10. The court held that the denial of relationship by the employer does not negate the existence of a dispute, and the conciliation officer's failure report is a valid basis for reference. (Paras 3-4)

B) Industrial Law - Employer-Employee Relationship - Prima Facie Case - Industrial Disputes Act, 1947 - The court examined the respondent's reply which did not categorically deny that the petitioner had rendered temporary service. The court held that such equivocal denial does not preclude the existence of an industrial dispute, and the matter should be referred for adjudication. (Paras 3-4)

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Issue of Consideration

Whether the Assistant Labour Commissioner (Central) was justified in submitting a failure report and seeking reference of the industrial dispute to the appropriate authority, given the denial of employer-employee relationship by the respondent.

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Final Decision

The court allowed the writ petition and directed the Secretary, Government of India, Ministry of Labour, to consider the failure report submitted by the Assistant Labour Commissioner (Central), Nagpur, and refer the industrial dispute to the appropriate authority for adjudication within a reasonable time.

Law Points

  • Industrial Dispute
  • Reference
  • Existence or Apprehension of Dispute
  • Conciliation Failure Report
  • Employer-Employee Relationship
  • Prima Facie Case
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Case Details

2019 LawText (BOM) (03) 316

Writ Petition No. 1218 of 2008

2019-03-26

Sunil B. Shukre, Pushpa V. Ganediwal

Shri S.S. Ghate for petitioner; Shri U.M. Aurangabadkar, ASGI for respondent No. 1; Ku. K.K. Pathak for respondent Nos. 2 & 3

Rajesh s/o Surendra Binkar

The Secretary, Government of India, Ministry of Labour; The Branch Manager, New India Assurance Co. Ltd.; The Regional Manager, New India Assurance Co. Ltd.

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Nature of Litigation

Writ petition seeking direction for reference of industrial dispute to appropriate authority.

Remedy Sought

Petitioner sought a writ directing the Secretary, Government of India, Ministry of Labour, to refer the industrial dispute regarding employer-employee relationship to the appropriate authority for adjudication.

Filing Reason

The Assistant Labour Commissioner (Central) submitted a failure report indicating existence of an industrial dispute, but the appropriate government did not make a reference under Section 10 of the Industrial Disputes Act, 1947.

Previous Decisions

Conciliation proceedings failed; failure report submitted by Assistant Labour Commissioner (Central), Nagpur.

Issues

Whether the failure report by the conciliation officer is sufficient to show existence or apprehension of an industrial dispute warranting reference under Section 10 of the Industrial Disputes Act, 1947. Whether the denial of employer-employee relationship by the respondent precludes the existence of an industrial dispute.

Submissions/Arguments

Petitioner argued that the failure report clearly indicates a dispute regarding employer-employee relationship and the appropriate government should refer it for adjudication. Respondent Nos. 2 & 3 argued that no employer-employee relationship existed, and the petitioner was a stranger; thus, no industrial dispute arises.

Ratio Decidendi

The existence of a failure report by the conciliation officer, indicating a dispute regarding employer-employee relationship, is sufficient to show that an industrial dispute exists or is apprehended. The appropriate government must consider such report and make a reference under Section 10 of the Industrial Disputes Act, 1947, even if the employer denies the relationship, as long as the denial is not categorical and the report suggests a prima facie dispute.

Judgment Excerpts

It is stated in the reply filed on behalf of respondent Nos. 2 & 3 that no employer and employee relationship was created between respondent Nos. 2 & 3 and the petitioner. When such facts being there on record, we are of the view that the law settled by the Hon'ble Apex Court in the case of Telco Convoy Drivers Mazdoor Sangh & Anr. vs. State of Bihar & Ors., reported at (1989) 3 SCC 271, would be squarely applicable to this case.

Procedural History

The petitioner filed a writ petition in 2008 before the Bombay High Court, Nagpur Bench, challenging the failure of the appropriate government to refer an industrial dispute. The court heard the matter and delivered judgment on March 26, 2019.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
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High Court Bombay High Court Allows Writ Petition Seeking Reference of Industrial Dispute in Employer-Employee Relationship Case. Failure Report by Conciliation Officer Sufficient to Show Existence of Dispute Under Section 10 of Industrial Disputes Act, 1947.