Case Note & Summary
The appellants, Rama Atmaram Dahiwal and Mahadeo Karbhari Shinde, were daily wage employees of the Maharashtra Jeevan Pradhikaran (respondent). They filed a complaint under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act), alleging that the respondent engaged in unfair labour practices under Item 6 of Schedule IV by not regularizing their services despite continuous employment. The Labour Court dismissed the complaint, and the Industrial Court upheld that dismissal in revision. The appellants then filed a Letters Patent Appeal before the Bombay High Court. The key issue was whether the respondent's failure to produce attendance registers and muster rolls, despite being given opportunities, should lead to an adverse inference against them. The High Court noted that the respondent did not produce any documentary evidence to rebut the appellants' claim of continuous service. Applying Section 114(g) of the Indian Evidence Act, 1872, the court held that an adverse inference must be drawn against the respondent for withholding relevant documents. Consequently, the court allowed the appeal, set aside the orders of the Labour Court and Industrial Court, and directed the respondent to regularize the services of the appellants from the date of their initial engagement with continuity of service and all consequential benefits. The judgment emphasizes the importance of documentary evidence in labour disputes and the consequences of failing to produce it.
Headnote
A) Labour Law - Unfair Labour Practice - Adverse Inference - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 28 - The appellants, daily wage employees, alleged unfair labour practice under Item 6 of Schedule IV. The employer failed to produce attendance registers despite opportunities. The Labour Court dismissed the complaint, and the Industrial Court upheld it. The High Court held that the employer's failure to produce relevant documents warrants an adverse inference under Section 114(g) of the Indian Evidence Act, 1872, and the complaint ought to have been allowed. (Paras 1-10) B) Evidence Act - Adverse Inference - Non-Production of Documents - Section 114(g) of the Indian Evidence Act, 1872 - When a party in possession of relevant documents fails to produce them without sufficient explanation, the court may presume that the evidence would be unfavourable to that party. The High Court applied this principle to the employer's failure to produce attendance registers, leading to the conclusion that the employees were engaged in continuous service. (Paras 8-10)
Issue of Consideration
Whether the Labour Court and Industrial Court erred in dismissing the complaint of unfair labour practice filed by daily wage employees despite the employer's failure to produce attendance registers and muster rolls, and whether an adverse inference should be drawn against the employer under Section 114(g) of the Indian Evidence Act.
Final Decision
Appeal allowed. Orders of Labour Court and Industrial Court set aside. Respondent directed to regularize services of appellants from date of initial engagement with continuity of service and all consequential benefits.
Law Points
- Adverse inference for non-production of documents
- Burden of proof in unfair labour practice
- Applicability of MRTU and PULP Act to daily wage employees


