Bombay High Court Dismisses Employer's Petition Challenging Industrial Court Order Setting Aside Cancellation of Promotion and Withdrawal of ACP Benefits. Employer's Action of Cancelling Promotion Without Hearing Employee Held to be Unfair Labour Practice Under MRTU & PULP Act, 1971.

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

The petitioners, Maharashtra Jeevan Pradhikaran and another, challenged the order dated 12/10/2009 passed by the Industrial Court, Thane, which allowed the complaint of unfair labour practice filed by the respondent, Rajeshwar S. Rane. The respondent was appointed as a Junior Clerk on 16/2/1981 and was granted the benefit of Assured Career Progression (ACP) after 12 years of service in 1996. On 15/3/2000, the respondent was promoted as a Senior Clerk and posted at Chiplun, District Ratnagiri. He was asked to join by 28/3/2000. The respondent made a representation on 3/4/2000 requesting a four-month extension to join due to his sons' ongoing examinations at Dombivali and his own health issues (diabetes and high blood pressure). Without considering his representation, the petitioners issued an order on 20/6/2000 cancelling the promotion and withdrawing the ACP benefit, stating that the respondent was not interested in joining the promotional post. The respondent then filed a complaint of unfair labour practice before the Industrial Court. The Industrial Court set aside the order dated 20/6/2000, holding that the cancellation of promotion and withdrawal of ACP benefits without affording an opportunity of hearing amounted to an unfair labour practice under Items 5, 9, and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The High Court, in the present writ petition, examined whether the Industrial Court's order suffered from any perversity or error of law. The High Court noted that the Industrial Court had considered the evidence, including the respondent's representation and the employer's failure to respond, and concluded that the employer's action was arbitrary and in violation of natural justice. The High Court found no reason to interfere with the Industrial Court's findings, as they were based on material on record and not perverse. The High Court dismissed the petition, upholding the Industrial Court's order.

Headnote

A) Industrial Law - Unfair Labour Practice - Cancellation of Promotion - Items 5, 9, 10 of Schedule IV of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The employer cancelled the promotion of the employee and withdrew the benefit of Assured Career Progression (ACP) on the ground that the employee did not join the promotional post at the transferred place. The Industrial Court held that the action was arbitrary and without affording an opportunity of hearing, amounting to unfair labour practice. The High Court upheld the Industrial Court's order, finding no perversity or error of law. (Paras 2-10)

B) Industrial Law - Natural Justice - Withdrawal of Benefits - Items 5, 9, 10 of Schedule IV of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The employer's order dated 20/6/2000 cancelled the promotion and withdrew ACP benefits without giving any show cause notice or opportunity to the employee. The Industrial Court found this to be in violation of principles of natural justice and an unfair labour practice. The High Court affirmed that the Industrial Court's findings were based on evidence and not perverse. (Paras 6-10)

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Issue of Consideration

Whether the cancellation of promotion and withdrawal of Assured Career Progression (ACP) benefits by the employer without affording an opportunity of hearing constitutes an unfair labour practice under 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 Industrial Court's order dated 12/10/2009. The Industrial Court's order setting aside the cancellation of promotion and withdrawal of ACP benefits was confirmed.

Law Points

  • Unfair Labour Practice
  • Cancellation of Promotion
  • Withdrawal of ACP Benefits
  • Natural Justice
  • MRTU & PULP Act
  • 1971
  • Schedule IV Items 5
  • 9
  • 10
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Case Details

2019 LawText (BOM) (04) 135

WRIT PETITION NO. 1475 OF 2010

2019-04-11

M.S. Karnik

Ms. Payal Jain I/b. Ms. Neeta Karnik for petitioners, Ms. Tanaya Patankar a/w. Akanksha Kalyanpur I/b. Shri Prabhakar Jadhav for respondent

Maharashtra Jeevan Pradhikaran & anr.

Rajeshwar S. Rane

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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 petitioners sought to quash and set aside the Industrial Court's order dated 12/10/2009 which set aside the cancellation of promotion and withdrawal of ACP benefits.

Filing Reason

The petitioners challenged the Industrial Court's order on the ground that it was perverse and erroneous in law.

Previous Decisions

The Industrial Court, Thane, by order dated 12/10/2009 allowed the complaint of unfair labour practice filed by the respondent and set aside the employer's order dated 20/6/2000 cancelling promotion and withdrawing ACP benefits.

Issues

Whether the Industrial Court's order dated 12/10/2009 suffers from perversity or error of law? Whether the cancellation of promotion and withdrawal of ACP benefits without affording an opportunity of hearing constitutes an unfair labour practice?

Submissions/Arguments

The petitioners argued that the Industrial Court's order was perverse and not based on evidence. The respondent supported the Industrial Court's order, contending that the employer's action was arbitrary and in violation of natural justice.

Ratio Decidendi

The cancellation of promotion and withdrawal of ACP benefits without affording an opportunity of hearing to the employee amounts to an unfair labour practice under Items 5, 9, and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The Industrial Court's findings based on evidence are not perverse and do not warrant interference under Articles 226 and 227 of the Constitution of India.

Judgment Excerpts

By this Petition filed under Article 226 and 227 of the Constitution of India, the petitioners are challenging the order dated 12/10/2009 passed by the Industrial Court, Thane, thereby allowing the complaint of Unfair Labour Practices filed by the respondent. The Industrial Court set aside the order dated 20/6/2000 issued by the petitioners regarding cancellation of respondent's promotion as a Senior Clerk and withholding the benefit of Assured Career Progression ('ACP' for short) granted earlier.

Procedural History

The respondent filed a complaint of unfair labour practice before the Industrial Court, Thane, challenging the order dated 20/6/2000 cancelling his promotion and withdrawing ACP benefits. The Industrial Court allowed the complaint on 12/10/2009. The petitioners then filed the present writ petition under Articles 226 and 227 of the Constitution of India before the Bombay High Court, which was dismissed on 11/4/2019.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV Items 5, 9, 10
  • Constitution of India: Articles 226, 227
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