Bombay High Court Examines Industrial Court's Rejection of Interim Relief in ULP Complaint Over Jurisdiction Under Schedule II of MRTU & PULP Act. Workers Alleged Forced Resignations and Unfair Labour Practices; Court Framed Issues on Whether Industrial Court Could Consider Terminations Under Schedule II.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

(1) Background: The dispute arose from an industrial complaint filed by eleven workers against their employer, M/s Motherson Advanced Tooling Solutions Limited, before the Industrial Court, Aurangabad, under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The workers alleged various unfair labour practices, including forced resignations, illegal terminations, and victimisation for attempting to form a trade union. (2) Facts: The complainants claimed that some were coerced into resigning in June 2015, which they later withdrew, only to be relieved from service in September 2015. Others were allegedly terminated in October 2015 after their complaint was filed. They sought declaratory and interim injunctive relief, including stay of terminations. The employer denied the allegations, contending that the resignations were voluntary and the terminations were legal. The Industrial Court, by orders dated 23 August 2016, rejected both interim applications, holding that the issues of forced versus voluntary resignation and validity of terminations could only be decided after full trial. (3) Legal Issues: The core questions before the High Court were whether the Industrial Court had jurisdiction to examine terminations under Schedule II of the Act when the complaint also involved Schedule IV items, and whether Section 32 of the Act, read with precedent, restricted such examination. The petitioners also argued that the Industrial Court failed to consider unfair labour practices under items 1 and 4 of Schedule II. (4) Arguments: The petitioners contended that the Industrial Court was not applying its mind to the Schedule II allegations and that the terminations were designed to oust its jurisdiction. The respondent management maintained that termination matters fell under Schedule IV, triable by the Labour Court, and that interim relief required proof, not mere allegations. (5) Court's Analysis: The High Court noted that the Industrial Court had not declined to consider the Schedule II issues, but framed two specific questions to clarify the jurisdictional boundaries. It referred to Sections 5 and 7 of the Act distinguishing the duties of Industrial and Labour Courts, and to prior decisions like Sudarshan Steel and R.D. Surve which emphasize that forced resignation is a matter of evidence. The court invited submissions from amici curiae to assist on the jurisdictional questions. (6) Decision: The judgment, reserved on 2 May 2019 and pronounced on 3 July 2019, is not fully extractable from the provided text; therefore the final outcome and ratio decidendi remain unstated. The High Court issued rule and heard the matter finally, but the substantive decision on the writ petition is not included in the excerpt.

Headnote

A) Labour Law - Unfair Labour Practices - Interim Relief Under Section 30(2) - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court rejected interim applications for restraint against terminations and forced resignations, holding that allegations of coerced resignation and illegal termination involve mixed questions of fact and law that require evidence at trial; prima facie assessment insufficient for interim relief. Court relied on Sudarshan Steel Manufacturing Company v. Mumbai Labour Union and R.D. Surve v. Tata Iron and Steel Company Ltd. Held that events during pendency must be considered, but the voluntary versus forced nature of resignations is a matter of evidence. (Paras 8-10)

B) Constitutional/Administrative Law - Jurisdiction of Industrial Court vs. Labour Court - Schedules II and IV of MRTU & PULP Act - High Court framed key issues: whether Industrial Court, while seized of a complaint under Section 28(1) read with Schedule II (items 1, 4) and Schedule IV (items 5,6,9,10), could consider terminations allegedly aimed at ousting its jurisdiction; and whether Section 32 and the ratio in National General Mazdoor Union v. Nitin Castings limit such jurisdiction. The court noted the Industrial Court had not refused to consider Schedule II items, but sought to clarify the scope of powers. (Paras 11-15)

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Issue of Consideration

Whether the Industrial Court had jurisdiction to consider terminations and forced resignations under Schedule II while a ULP complaint was pending, and whether its rejection of interim relief applications was justified; and whether Section 32 of the MRTU & PULP Act and the decision in National General Mazdoor Union v. Nitin Castings fetters such jurisdiction.

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Law Points

  • Industrial Court must consider events during pendency of complaint
  • forced resignation is a matter of evidence requiring trial
  • interim relief cannot be granted on prima facie evaluation of mixed questions of fact and law
  • jurisdiction of Industrial Court under Schedule II compared to Labour Court under Schedule IV
  • scope of Section 30(2) and Section 32 of the MRTU & PULP Act
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Case Details

2019 LawText (BOM) (07) 19

Writ Petition No. 12119 of 2016

2019-07-03

Ravindra V. Ghuge, J.

Shri Y. I. Thole, Advocate for the petitioners. Shri S.V.Dankh, Advocate for the respondent. Shri T.K.Prabhakaran, Shri Y.R.Marlapalle and Shri U.V.Khonde, Advocates who assisted the Court.

Prakash Kashiram Sawant, Hemant Baburao Shelar, Ashwin Arun Awachar, Shivnath Suresh Shelke, Bhagwan Laxuman Ajgaonkar, Devendrasing Ghetalsing Rana, Nagraj A. Patil, Sandip Chandrabhan Deore, Prakash Datta Kasbe, Rameshwar Sahebrao Karangle, Mahendra Gulabrao Nimbalkar

M/s Motherson Advanced Tooling Solutions Limited

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Nature of Litigation

Writ petition challenging the Industrial Court's rejection of interim relief applications in a complaint filed under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

Remedy Sought

Petitioners sought to set aside the Industrial Court's orders dated 23.08.2016 rejecting exhibits U/2 and U/8, and to obtain interim relief against alleged unfair labour practices including restraining terminations and forced resignations.

Filing Reason

The Industrial Court declined to grant interim relief on the ground that issues of forced resignation and termination required evidence at trial; petitioners argued that the court failed to consider unfair labour practices under Schedule II and that the terminations were aimed at ousting jurisdiction.

Previous Decisions

The Industrial Court, Aurangabad, rejected applications exhibit U/2 and U/8 on 23.08.2016 in Complaint (ULP) No. 338 of 2015.

Issues

Whether the Industrial Court, dealing with a ULP Complaint under Section 28(1) read with Schedule II and items 5, 6, 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, would have the jurisdiction to consider the termination of an employee in the face of the allegation that the termination was apprehended and is aimed at ousting the jurisdiction of the Industrial Court? Whether, considering the above issue, Section 32 of the said Act and the view taken by this Court in the matter of National General Mazdoor Union vs. Nitin Castings (1990 II CLR 641), would cast fetters on the Industrial Court's jurisdiction in dealing with the case falling under Schedule II?

Submissions/Arguments

Petitioners submitted that the Industrial Court was not applying its mind to the unfair labour practices under items 1 and 4 of Schedule II and that the terminations were part of a strategy to oust the Industrial Court's jurisdiction. Respondent management raised preliminary objections regarding jurisdiction, contending that termination cases fall under Section 7 read with item 1 of Schedule IV and are triable by the Labour Court, and that forced resignation allegations are mixed questions of fact and law requiring evidence.

Judgment Excerpts

The Industrial Court concluded that these aspects cannot be gone into at a prima facie stage and can be considered at the final stage. (Para 10) the Industrial Court has not declined to consider the cases of these petitioners under items 1 and 4 of Schedule II. (Para 11) I framed the following two issues vide order dated 08.02.2017 : (a) Whether, the Industrial Court, dealing with a ULP Complaint under Section 28(1) read with Schedule II and items 5, 6, 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, would have the jurisdiction to consider the termination of an employee in the face of the allegation that the termination was apprehended and is aimed at ousting the jurisdiction of the Industrial Court? (b) Considering the above issue, whether, Section 32 of the said Act and the view taken by this Court in the matter of National General Mazdoor Union vs. Nitin Castings (1990 II CLR 641), would cast fetters on the Industrial Court's jurisdiction in dealing with the case falling under Schedule II? (Para 11)

Procedural History

On 05.09.2015, petitioners filed Complaint (ULP) No. 338 of 2015 before Industrial Court, Aurangabad. They filed interim relief application exhibit U/2 under Section 30(2) and application exhibit U/8 for specific complainants. Respondent filed written statement on 27.10.2015. Industrial Court rejected both applications by impugned orders dated 23.08.2016. Petitioners filed Writ Petition No. 12119 of 2016 challenging these orders. High Court framed issues on 08.02.2017 and heard the matter with the assistance of amici curiae. Judgment reserved on 02.05.2019 and pronounced on 03.07.2019.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: 5, 7, 28(1), 30(2), 32, 42, Schedule II (Items 1(a)(c), 4(a)(b)(f)), Schedule IV (Items 1, 5, 6, 9, 10)
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