Bombay High Court Allows Appeal of Daily Wage Employees in Unfair Labour Practice Case — Employer's Failure to Produce Attendance Records Leads to Adverse Inference. The court held that non-production of attendance registers by the employer under Section 28 of MRTU and PULP Act warrants an adverse inference under Section 114(g) of the Indian Evidence Act, 1872, entitling employees to regularization.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
  • 169
Judgement Image
Font size:
Print

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)

Subscribe to unlock Headnote Subscribe Now

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.

Subscribe to unlock Issue of Consideration Subscribe Now

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
Subscribe to unlock Law Points Subscribe Now

Case Details

2013 LawText (BOM) (01) 4

Letters Patent Appeal No. 154 of 2012 in Writ Petition No. 2911 of 2011

2013-01-23

A.H. Joshi, Sunil P. Deshmukh

Shri Vivek Bhavthankar for Appellants, Shri D.P. Bakshi for Respondents No. 1

Rama Atmaram Dahiwal and Mahadeo Karbhari Shinde

The Executive Engineer, Maharashtra Jeevan Pradhikaran Works Division Parbhani

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against dismissal of complaint under MRTU and PULP Act alleging unfair labour practice by employer.

Remedy Sought

Appellants sought regularization of their services with continuity and consequential benefits.

Filing Reason

Employer failed to regularize services of daily wage employees despite continuous employment.

Previous Decisions

Labour Court dismissed complaint; Industrial Court upheld dismissal in revision.

Issues

Whether the Labour Court and Industrial Court erred in not drawing an adverse inference against the employer for non-production of attendance registers. Whether the appellants were entitled to regularization of services under the MRTU and PULP Act.

Submissions/Arguments

Appellants argued that they were continuously employed and the employer failed to produce attendance records to rebut their claim. Respondent contended that the appellants were not in continuous service and no unfair labour practice was committed.

Ratio Decidendi

When an employer fails to produce relevant documents like attendance registers despite opportunities, an adverse inference under Section 114(g) of the Indian Evidence Act must be drawn, leading to the conclusion that the employees were in continuous service and entitled to regularization.

Judgment Excerpts

The respondent did not produce any documentary evidence to rebut the claim of the appellants. An adverse inference is required to be drawn against the respondent for non-production of the attendance register and muster roll.

Procedural History

Appellants filed complaint under Section 28 of MRTU and PULP Act before Labour Court. Labour Court dismissed complaint. Appellants filed revision before Industrial Court, which upheld dismissal. Appellants then filed writ petition, which was dismissed. Thereafter, Letters Patent Appeal was filed before the High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Schedule IV Item 6
  • Indian Evidence Act, 1872: Section 114(g)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Partition Appeal Due to Lack of Evidence of Joint Family Property. The court held that the plaintiffs failed to prove that the suit property was ancestral or joint family property, and the suit was barred by limitation und...
Related Judgement
High Court High Court of Bombay Decides Commercial Arbitration Petition under Section 9, Arbitration and Conciliation Act, 1996. The petition sought appointment of a Court Receiver to take possession of property in a commercial dispute.