Case Note & Summary
The petitioner, M/s Diffusion Engineering Limited, a public limited company operating four manufacturing units, challenged an award dated 15-2-2019 passed by the Industrial Court, Nagpur, under Section 73(2) of the Maharashtra Industrial Relations Act, 1946. The dispute pertained to one of its units where about 248 workmen were employed. The respondents, elected representatives of the workmen, made various demands which were considered by the Deputy Commissioner of Labour, Nagpur. Since conciliation failed, a failure report was submitted on 19-12-2012, and the State Government referred the industrial dispute to the Industrial Court. The workmen filed a statement of claim seeking increase in wages, allowances and other monetary benefits, which was opposed by the employer. Evidence was led by both sides. The Industrial Court answered the reference in the affirmative, holding the workmen entitled to a raise. The employer filed a writ petition challenging the award. The High Court examined the evidence, including the wage structure of comparable units and the financial capacity of the employer, and found no perversity or error of law in the Industrial Court's decision. The petition was dismissed, upholding the award.
Headnote
A) Industrial Law - Wage Revision - Reference under Section 73(2) of Maharashtra Industrial Relations Act, 1946 - The Industrial Court allowed the reference filed by workmen seeking increase in wages, allowances and other monetary benefits - The employer challenged the award on grounds of lack of evidence and financial incapacity - The High Court held that the Industrial Court had properly appreciated evidence including wage structure of comparable units and financial position of the employer - No perversity or error of law found - Petition dismissed (Paras 1-16).
Issue of Consideration
Whether the Industrial Court erred in granting wage hike to workmen under Section 73(2) of the Maharashtra Industrial Relations Act, 1946.
Final Decision
The High Court dismissed the writ petition, upholding the Industrial Court's award dated 15-2-2019.
Law Points
- Industrial dispute
- Reference under Section 73(2)
- Wage revision
- Burden of proof
- Comparable units
- Financial capacity
Case Details
2019 LawText (BOM) (04) 175
WRIT PETITION NO.2768 OF 2019
Shri M. G. Bhangde, Senior Advocate with Shri V. P. Marpakwar for petitioner; Shri R. N. Sen for respondents
M/s Diffusion Engineering Limited
Prithviraj Patle, Jivanlal Bisen, Devendra Devgade, Sukhdeo Khobragade
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Nature of Litigation
Writ petition challenging an award of the Industrial Court under Section 73(2) of the Maharashtra Industrial Relations Act, 1946.
Remedy Sought
The employer sought to quash the Industrial Court award granting wage hike to workmen.
Filing Reason
The employer was aggrieved by the Industrial Court's award holding workmen entitled to raise in wages, allowances and other monetary benefits.
Previous Decisions
The Industrial Court answered the reference in the affirmative on 15-2-2019.
Issues
Whether the Industrial Court erred in granting wage hike to workmen under Section 73(2) of the Maharashtra Industrial Relations Act, 1946.
Submissions/Arguments
The employer argued that the Industrial Court failed to properly appreciate evidence and that the employer's financial position did not permit wage hike.
The workmen contended that the Industrial Court correctly relied on evidence of comparable units and financial capacity.
Ratio Decidendi
The Industrial Court's findings on wage revision under Section 73(2) of the MIR Act, based on evidence of comparable units and financial capacity, were not perverse and did not warrant interference under writ jurisdiction.
Judgment Excerpts
The petitioner – employer is aggrieved by the award dated 15-2-2019 passed by the learned Member of the Industrial Court dated 15-2-2019 whereby the reference as made under Section 73(2) of the Maharashtra Industrial Relations Act, 1946 has been answered in the affirmative holding the respondents – employees entitled for a raise in wages, allowances and other monetary benefits.
Procedural History
The dispute arose in 2012 when workmen made demands. Conciliation failed on 19-12-2012. State Government referred the dispute to Industrial Court under Section 73(2). Industrial Court passed award on 15-2-2019. Employer filed writ petition on 25-4-2019.
Acts & Sections
- Maharashtra Industrial Relations Act, 1946: Section 73(2)
