Bombay High Court Dismisses BEST Undertaking's Petition Challenging Industrial Court Order in Suspension Case. Suspension of Deputy Charge Engineer Held Invalid as Standing Orders Not Applicable, But Unfair Labour Practice Found Due to Non-Compliance with Procedure.

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

The Brihanmumbai Municipal Corporation (BEST Undertaking) challenged an order of the Industrial Court which had allowed the complaint of unfair labour practice filed by the respondent, Javid Abdul Mulla, a Deputy Charge Engineer. The respondent was arrested on 23 June 1995 for accepting a bribe of Rs.600/- and was placed under suspension on 26 June 1995 under Standing Order 25, as his basic salary was below Rs.1000/-. Subsequently, a pay revision with effect from 1 April 1996 raised his basic salary to Rs.1,295/-. A charge sheet was issued on 9 June 1997 under Service Regulation 10.2, and a disciplinary inquiry was initiated under the Service Regulations, as the petitioner contended that the respondent was not an 'employee' under Section 3(13) of the Bombay Industrial Relations Act, 1946 and the certified standing orders did not apply to him. The respondent filed a complaint of unfair labour practices under Items 9 and 10 of Schedule IV of the MRTU & PULP Act, 1971 on 16 February 1998. The Industrial Court held that the respondent was a 'workman' under the Industrial Disputes Act, 1947 and that the standing orders applied, setting aside the suspension and directing payment of full back wages. The High Court examined the definition of 'employee' under the BIR Act and found that the respondent's basic salary after revision exceeded Rs.1000/-, thus he was not an 'employee' under that Act, and the standing orders did not apply. However, the High Court upheld the Industrial Court's order on the ground that the suspension was invalid because the employer had not followed the procedure under the standing orders, which were inapplicable, and the suspension amounted to an unfair labour practice. The High Court dismissed the writ petition, affirming the Industrial Court's direction to pay full back wages and consequential benefits from the date of suspension till reinstatement.

Headnote

A) Industrial Law - Employee vs. Workman - Definition under BIR Act - The respondent, a Deputy Charge Engineer, was held not to be an 'employee' under Section 3(13) of the Bombay Industrial Relations Act, 1946 as his basic salary exceeded Rs.1000/- after revision, making the certified standing orders inapplicable. The Industrial Court's finding that he was a 'workman' under the Industrial Disputes Act, 1947 was upheld, but the suspension order was set aside as the employer failed to follow the procedure under the standing orders. (Paras 1-3)

B) Suspension - Pending Criminal Proceedings - Validity - The suspension order passed under Standing Order 25 was invalid because the standing orders did not apply to the respondent. The employer's action of suspending the respondent without following the applicable service regulations constituted an unfair labour practice under Items 9 and 10 of Schedule IV of the MRTU & PULP Act, 1971. (Paras 2-4)

C) Unfair Labour Practice - Items 9 and 10 - MRTU & PULP Act - The Industrial Court's order directing the petitioner to pay full back wages and consequential benefits from the date of suspension till reinstatement was upheld, as the suspension was found to be illegal and without authority. (Paras 4-5)

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Issue of Consideration

Whether the respondent, a Deputy Charge Engineer drawing basic salary above Rs.1000/- after revision, is an 'employee' under Section 3(13) of the Bombay Industrial Relations Act, 1946 and whether the certified standing orders apply to him; and whether the suspension order was valid.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order directing the petitioner to pay full back wages and consequential benefits to the respondent from the date of suspension till reinstatement.

Law Points

  • Distinction between 'employee' under Bombay Industrial Relations Act
  • 1946 and 'workman' under Industrial Disputes Act
  • 1947
  • Applicability of certified standing orders to employees not covered by BIR Act
  • Suspension pending criminal proceedings
  • Unfair labour practice under Items 9 and 10 of Schedule IV of MRTU & PULP Act
  • 1971
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Case Details

2005 LawText (BOM) (03) 266

WRIT PETITION NO.1474 OF 2002

2005-03-31

Dr. D.Y. Chandrachud, J.

2005:BHC-OS:4294

Mr. S.K. Talsania with Mrs. R.N. Vora i/b M/s. Crawford Bayley & Co. for the Petitioner; Mrs. Hutoxi Tavadia for the Respondent

The Brihanmumbai Municipal Corporation through The General Manager, BEST Undertaking

Mr. Javid Abdul Mulla

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Nature of Litigation

Writ petition challenging the order of the Industrial Court allowing a complaint of unfair labour practice filed by the respondent against the petitioner employer.

Remedy Sought

The petitioner sought to quash the Industrial Court's order directing payment of full back wages and consequential benefits to the respondent from the date of suspension till reinstatement.

Filing Reason

The petitioner contended that the respondent was not an 'employee' under the Bombay Industrial Relations Act, 1946 and the certified standing orders did not apply to him, and that the suspension was valid.

Previous Decisions

The Industrial Court had allowed the respondent's complaint of unfair labour practice, setting aside the suspension order and directing payment of full back wages and consequential benefits.

Issues

Whether the respondent is an 'employee' under Section 3(13) of the Bombay Industrial Relations Act, 1946 and whether the certified standing orders apply to him. Whether the suspension order passed under Standing Order 25 was valid. Whether the Industrial Court's order directing payment of full back wages and consequential benefits was correct.

Submissions/Arguments

Petitioner argued that the respondent was not an 'employee' under the BIR Act as his basic salary exceeded Rs.1000/- after revision, and the standing orders did not apply; the suspension was valid under the Service Regulations. Respondent argued that he was a 'workman' under the Industrial Disputes Act, 1947 and the standing orders applied; the suspension was illegal and amounted to an unfair labour practice.

Ratio Decidendi

The suspension order was invalid because the employer did not follow the procedure under the standing orders, which were inapplicable to the respondent. The failure to follow the applicable service regulations constituted an unfair labour practice under Items 9 and 10 of Schedule IV of the MRTU & PULP Act, 1971.

Judgment Excerpts

The Respondent was engaged by the Bombay Electric Supply and Transport Undertaking (BEST) and, at the material time, was functioning in the substantive capacity of a Deputy Charge Engineer in the T/7 Grade. On 23rd June, 1995 the Respondent was allegedly caught red handed by the Anti-Corruption Bureau while accepting a bribe of Rs.600/- from a person who was dealing in garments. The order of suspension was passed under Standing order 25 since, it is common ground, on the date of the suspension the basic salary of the Respondent was Rs.895/- and hence, below Rs.1000/-. Subsequently, a pay revision took place with effect from 1st April, 1996 and the basic salary of the Respondent was revised to Rs.1,295/-. On 9th June, 1997 a charge sheet was issued to the Respondent under Service Regulation 10.2.

Procedural History

The respondent was arrested on 23 June 1995 and suspended on 26 June 1995. A charge sheet was issued on 9 June 1997 under Service Regulation 10.2. The respondent filed a complaint of unfair labour practices on 16 February 1998 under Items 9 and 10 of Schedule IV of the MRTU & PULP Act, 1971. The Industrial Court allowed the complaint. The petitioner filed the present writ petition in the High Court on 2002.

Acts & Sections

  • Bombay Industrial Relations Act, 1946: Section 3(13)
  • Industrial Disputes Act, 1947:
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Items 9 and 10
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