Bombay High Court Dismisses Management's Petition Challenging Reinstatement of Employee in Unfair Labour Practice Case. Oral Termination by Management Set Aside as Unfair Labour Practice Under Item 1 of Schedule IV of MRTU and PULP Act, 1971.

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

The petitioner, Suraj Pressings Pvt. Limited, challenged the judgment of the Labour Court dated 04/01/2014, which allowed Complaint (ULP) No.50/2006 filed by the respondent, Suresh Rabhaji Gaikwad, an employee. The Labour Court declared that the petitioner had engaged in an unfair labour practice under Item 1 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act), by orally terminating the respondent on 10/08/2006. The Labour Court set aside the termination and directed reinstatement with continuity of service and 50% back wages. Both parties filed revision petitions before the Industrial Court: the petitioner challenged the order of reinstatement and back wages, while the respondent sought 100% back wages. The Industrial Court, by judgment dated 22/02/2019, dismissed both revision petitions, thereby upholding the Labour Court's order. The petitioner then filed the present writ petition. The petitioner argued that the respondent had voluntarily resigned on 08/08/2006, stopped reporting for duty from 09/08/2006, and later accepted a settlement of Rs.14,385/- on 19/09/2006, which was paid as his legal dues. The respondent contended that he was orally terminated and had not resigned. The High Court, after hearing both sides, found no merit in the petitioner's submissions. The court noted that the Labour Court and Industrial Court had concurrently held that the respondent did not voluntarily resign and that the management had failed to prove a voluntary resignation. The High Court dismissed the writ petition, affirming the orders of the lower courts. The court held that the concurrent findings of fact did not warrant interference under Article 227 of the Constitution of India.

Headnote

A) Industrial Law - Unfair Labour Practice - Oral Termination - Item 1 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Labour Court and Industrial Court concurrently found that the management had orally terminated the employee without following due process, which amounted to an unfair labour practice. The employee had not resigned voluntarily; rather, he was forced to leave. The courts directed reinstatement with continuity and 50% back wages. (Paras 2-3)

B) Industrial Law - Reinstatement - Back Wages - The Industrial Court dismissed both revision petitions, upholding the Labour Court's order of reinstatement with continuity and 50% back wages. The management's challenge was rejected as the employee had not voluntarily resigned and the termination was oral and illegal. (Paras 3-4)

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Issue of Consideration

Whether the oral termination of the respondent/employee by the petitioner/management constituted an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act, 1971, and whether the employee was entitled to reinstatement with continuity and back wages.

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Final Decision

The High Court dismissed the writ petition, upholding the orders of the Labour Court and Industrial Court. The petitioner/management was directed to reinstate the respondent with continuity of service and 50% back wages.

Law Points

  • Unfair Labour Practice
  • Oral Termination
  • Reinstatement
  • Back Wages
  • MRTU and PULP Act
  • 1971
  • Item 1 of Schedule IV
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Case Details

2019 LawText (BOM) (06) 18

WRIT PETITION NO.7590 OF 2019

2019-06-25

Ravindra V. Ghuge

Mr. V.N. Upadhye for the petitioner, Mr. P.V. Barde for the respondent

Suraj Pressings Pvt. Limited

Suresh Rabhaji Gaikwad

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Nature of Litigation

Writ petition challenging the judgment of the Industrial Court dismissing revision petitions against the Labour Court's order allowing complaint of unfair labour practice.

Remedy Sought

The petitioner/management sought to quash the orders of the Labour Court and Industrial Court directing reinstatement with continuity and 50% back wages.

Filing Reason

The petitioner claimed that the respondent had voluntarily resigned and was not orally terminated, and that the Labour Court and Industrial Court erred in allowing the complaint.

Previous Decisions

Labour Court allowed Complaint (ULP) No.50/2006 on 04/01/2014, declaring unfair labour practice and ordering reinstatement with continuity and 50% back wages. Industrial Court dismissed Revision (ULP) No.17/2014 (by management) and Revision (ULP) No.52/2014 (by employee) on 22/02/2019.

Issues

Whether the oral termination of the respondent by the petitioner constituted an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act, 1971? Whether the respondent was entitled to reinstatement with continuity and 50% back wages?

Submissions/Arguments

Petitioner/Management: The respondent voluntarily resigned on 08/08/2006, stopped reporting for duty from 09/08/2006, and accepted a settlement of Rs.14,385/- on 19/09/2006. There was no oral termination. Respondent/Employee: He was orally terminated on 10/08/2006 and did not resign. He sought reinstatement.

Ratio Decidendi

The concurrent findings of fact by the Labour Court and Industrial Court that the respondent did not voluntarily resign and was orally terminated, which constitutes an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act, 1971, warranting reinstatement with continuity and 50% back wages, are not perverse and do not warrant interference under Article 227 of the Constitution of India.

Judgment Excerpts

The petitioner/Management is aggrieved by the judgment of the Labour Court dated 04/01/2014, by which Complaint (ULP) No.50/2006 filed by the respondent/employee, has been allowed. ULP has been declared against the petitioner under Item 1 of Schedule IV of the MRTU and PULP Act, 1971 and by setting aside the oral termination of the respondent dated 10/08/2006, the Management is directed to reinstate the complainant in service with continuity and 50% back wages.

Procedural History

The respondent filed Complaint (ULP) No.50/2006 before the Labour Court, which was allowed on 04/01/2014. The petitioner filed Revision (ULP) No.17/2014 and the respondent filed Revision (ULP) No.52/2014 before the Industrial Court, both of which were dismissed on 22/02/2019. The petitioner then filed the present writ petition before the High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Item 1 of Schedule IV
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