Bombay High Court Dismisses Petition Challenging Superannuation at 58 Years — Employee Promoted to Executive Cadre Not a Workman Under Industrial Disputes Act. Promotion to Assistant in Executive cadre removes employee from definition of 'workman' under Section 2(s) of Industrial Disputes Act, 1947, making complaint under MRTU & PULP Act not maintainable.

High Court: Bombay High Court
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Case Note & Summary

The Petitioner, Shri Inthru Noronha, joined Ciba of India Limited (later Hindustan Ciba Geigy Limited) on 1 June 1965 as a typist and later became a Punch Operator. On 2 March 1990, he was promoted to Assistant in the Executive cadre with effect from 1 January 1990. The promotion letter informed him that his remuneration would be as per the contract of employment, he would be governed by the executive staff gratuity scheme, and he would become a member of the pension scheme for executives. The contract specified retirement at the end of the month in which he attained age 58. On 1 October 1994, the oral hygiene business of Hindustan Ciba Geigy was transferred to Colgate Palmolive (India) Ltd., the First Respondent, and the Petitioner's services were transferred with assurance that terms would remain unchanged. On 17 May 1995, Colgate revised his salary to Rs.25,625 per month under its management cadre wage structure. On 8 February 1999, Colgate informed the Petitioner that he would retire on 25 February 1999 upon attaining age 58. The Petitioner filed a complaint before the Industrial Court on 23 March 1999 alleging unfair labour practices under Items 5, 9, and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. He claimed that his work was clerical and he remained a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947, and thus an 'employee' under the MRTU & PULP Act. The Industrial Court dismissed the complaint, holding that the Petitioner was not a workman. The Petitioner then filed the present writ petition. The High Court examined the terms of promotion and the nature of duties. It noted that the Petitioner was promoted to the executive cadre with a revised salary, pension, and gratuity scheme applicable to executives, and his contract fixed superannuation at 58 years. The Court held that the promotion took the Petitioner out of the definition of 'workman' under Section 2(s) of the Industrial Disputes Act, as he was now in a managerial or supervisory role. Consequently, he was not an 'employee' under the MRTU & PULP Act and could not maintain a complaint of unfair labour practice. The Court further held that the superannuation age of 58 was valid and binding. The writ petition was dismissed, and the Industrial Court's order was upheld.

Headnote

A) Industrial Law - Definition of Workman - Section 2(s) Industrial Disputes Act, 1947 - Promotion to Executive Cadre - Petitioner was promoted from Punch Operator to Assistant in Executive cadre with revised remuneration, pension scheme, and superannuation age of 58 years - Held that such promotion takes the employee out of the definition of 'workman' as he performs managerial or supervisory functions, and thus he cannot maintain a complaint under the MRTU & PULP Act (Paras 1-4).

B) Unfair Labour Practice - Maintainability - Items 5, 9, 10 of Schedule IV, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Employee Status - Petitioner claimed he performed clerical work even after promotion - Industrial Court found that the promotion to executive cadre and the terms of employment indicated he was not a workman - Held that the Industrial Court correctly dismissed the complaint as the Petitioner was not an 'employee' under the Act (Paras 3-5).

C) Superannuation - Age of Retirement - Contract of Employment - Executive Cadre - Petitioner's contract specified retirement at 58 years - Transfer to Colgate Palmolive did not alter terms - Held that the superannuation age of 58 years was valid and binding on the Petitioner, and no unfair labour practice was established (Paras 2, 5).

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Issue of Consideration

Whether the Petitioner, after promotion to the executive cadre, continued to be a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947, and consequently an 'employee' under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, so as to maintain a complaint of unfair labour practice challenging his superannuation at age 58.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order that the Petitioner was not a workman and the complaint was not maintainable.

Law Points

  • Definition of workman under Section 2(s) of Industrial Disputes Act
  • 1947
  • Promotion to executive cadre excludes employee from workman status
  • Superannuation age of 58 years valid for executive employees
  • Items 5
  • 9
  • 10 of Schedule IV of MRTU & PULP Act not applicable to non-workmen
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Case Details

2005 LawText (BOM) (01) 119

WRIT PETITION NO.1076 OF 2000

2005-01-19

Dr. D.Y. Chandrachud, J.

Mr. N.M. Ganguli with Mr. K.G. Poojary for the Petitioner, Mr. J.P. Cama, Senior Advocate with Mr. G.S. Shetty i/b M/s. Crawford Bayley & Co. for the Respondents

Shri. Inthru Noronha

Colgate Palmolive (India) Ltd. & Ors.

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Nature of Litigation

Writ petition challenging order of Industrial Court dismissing complaint of unfair labour practice

Remedy Sought

Petitioner sought to set aside the Industrial Court's order and to be declared as a workman entitled to continue in service beyond age 58

Filing Reason

Petitioner was superannuated at age 58 and claimed he was a workman entitled to protection under MRTU & PULP Act

Previous Decisions

Industrial Court dismissed the complaint holding Petitioner not a workman

Issues

Whether the Petitioner was a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947 after promotion to executive cadre Whether the Petitioner could maintain a complaint under the MRTU & PULP Act, 1971 Whether the superannuation at age 58 was valid

Submissions/Arguments

Petitioner argued that his work remained clerical and he was a workman under Section 2(s) of ID Act Respondent argued that promotion to executive cadre removed Petitioner from definition of workman and superannuation age was contractual

Ratio Decidendi

An employee promoted to the executive cadre with managerial or supervisory functions ceases to be a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947, and cannot maintain a complaint under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The superannuation age specified in the contract of employment is binding.

Judgment Excerpts

The Petitioner joined the service of a company known by the name of Ciba of India Limited (later known as Hindustan Ciba Geigy Limited) on 1st June, 1965 initially as a typist. On 2nd March, 1990 he was promoted with effect from 1st January, 1990 to the post of an Assistant in the Executive cadre. The contract of employment provided that the Petitioner shall retire from service at the end of the month in which he would attain the age of superannuation of 58 years. The Petitioner moved the Industrial Court in a complaint of unfair labour practices under Items 5, 9 and 10 of Schedule IV of the Act on 23rd March, 1999.

Procedural History

Petitioner filed complaint before Industrial Court on 23 March 1999 alleging unfair labour practice. Industrial Court dismissed complaint. Petitioner filed Writ Petition No.1076 of 2000 before Bombay High Court challenging the dismissal. High Court heard and dismissed the petition on 19 January 2005.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Items 5, 9, 10
  • Industrial Disputes Act, 1947: Section 2(s)
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