High Court of Bombay Upholds Industrial Court's Order Allowing Amendment and Refusing Appointment of Investigating Officer in Trade Union Recognition Dispute. Amendment to include correct membership figures for statutory period allowed as it does not change nature of application and membership strength is a question of fact to be proved by evidence under Section 14 of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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

The dispute arose from an application filed by the First Respondent union under Section 14 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, seeking recognition in place of the Petitioner union in the undertaking of the Second Respondent. The Petitioner was a recognized union since 1982. The application, initially prepared on 21 December 2010, was actually filed on 19 January 2011, and disclosed membership figures from June to November 2010 instead of the relevant period July to December 2010. The Petitioner challenged the maintainability of the application on the ground that it did not comply with the statutory requirement of showing larger membership during the whole of six calendar months immediately preceding the month of application. During the proceedings, the First Respondent applied for and was granted an amendment to correct the membership figures to include December 2010, by an order dated 12 March 2012. Subsequently, issues were framed, and evidence commenced. Later, the Petitioner moved an application for appointment of an Investigating Officer under Section 8 for verification of membership, which was dismissed by the Industrial Court on 19 January 2013, on the ground that evidence recording had already started. The Petitioner filed the instant writ petition challenging both the order allowing the amendment and the refusal to appoint an Investigating Officer. The Petitioner argued that the conditions precedent under Section 14 were not met because the original application lacked figures for the correct period, and that the Industrial Court ought to have exercised its power to appoint an Investigating Officer. The Respondents contended that the amendment was merely to rectify an inadvertent error, that membership strength is a question of fact to be proved by evidence, and that the Industrial Court had discretion not to appoint an Investigating Officer, particularly after evidence had commenced and because the Petitioner was seeking to delay the proceedings. The High Court, after examining the provisions of Section 14 and the principles laid down in Automobile Products of India Employees' Union v. Association of Engineering Workers, held that the amendment did not alter the nature of the application and that the issue of membership must be decided on evidence. The Court also found that the Industrial Court gave cogent reasons for refusing to appoint an Investigating Officer, as the Act does not provide for a two-tier process and the application appeared to be a dilatory tactic. Additionally, the Court noted that the Petitioner had acquiesced in the amendment order by not challenging it for nearly a year and by subsequently seeking an investigation based on the amended application. Consequently, the writ petition was dismissed, and both the orders of the Industrial Court were upheld.

Headnote

A) Trade Union Recognition - Conditions Precedent - Section 14, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The application for recognition must disclose membership figures for the six calendar months immediately preceding the month of application. Where the application was filed in January 2011, the relevant period was July to December 2010. The amendment to correct the figures to include December 2010 was allowed. Held, the amendment did not alter the basis of the application and the issue of membership must be decided on evidence. (Paras 2, 3, 10, 11)

B) Amendment of Pleadings - Correction of Inadvertent Error - The Industrial Court has discretion to allow amendments before evidence commences to correct inadvertent errors. The petitioner's contention that the application was not maintainable because it originally covered June-November 2010 was rejected, as the amendment merely reflected the correct period based on actual filing date. Held, the amendment was properly allowed, causing no prejudice and being necessary for a fair adjudication. (Paras 4, 8, 11)

C) Discretionary Power to Appoint Investigating Officer - Section 8, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court is not bound to appoint an Investigating Officer; the power is discretionary. Once evidence has commenced, it is not appropriate to appoint an Investigating Officer, as the Act does not contemplate a two-tier process. The petitioner's application for appointment was filed after evidence had begun and was seen as an attempt to delay proceedings. Held, the rejection of the application was justified in the circumstances. (Paras 5, 8, 12)

D) Writ Jurisdiction - Delay and Acquiescence - The High Court may refuse to interfere under Articles 226/227 when the petitioner has acquiesced in the impugned order. The petitioner did not challenge the amendment order for nearly a year and participated in subsequent proceedings, including seeking investigation on the basis of the amended application. This conduct indicated waiver of any objection. Held, the petition lacked merit also on ground of delay. (Paras 8, 11)

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Issue of Consideration

Whether the Industrial Court erred in allowing the amendment of the application under Section 14 to include correct membership figures for the period July-December 2010; Whether the Industrial Court erred in declining to appoint an Investigating Officer for verification of membership under Section 8 after evidence had already commenced

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Final Decision

The High Court dismissed the writ petition, upholding both the orders of the Industrial Court. It held that the amendment was correctly allowed as it did not change the nature of the application and the issue of membership must be determined on evidence. The refusal to appoint an Investigating Officer was also upheld because the Industrial Court had furnished cogent reasons, discretion was properly exercised, and the application appeared to be a delay tactic. Moreover, the petitioner had acquiesced in the amendment order.

Law Points

  • Section 14 of the MRTU & PULP Act requires the applicant to show larger membership during the whole of six calendar months immediately preceding the calendar month of application
  • Amendment of pleadings can be allowed at pre-trial stage to correct inadvertent errors if it does not change the nature of the application
  • The Industrial Court has discretion to appoint an Investigating Officer under Section 8 but it is not a mandatory requirement especially after evidence has commenced
  • Acquiescence and delay in challenging an order can be a ground to refuse interference under writ jurisdiction
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Case Details

2013 LawText (BOM) (09) 43

WRIT PETITION NO.563 OF 2013

2013-09-06

Dr. D.Y. Chandrachud, M.S. Sonak

2013:BHC-OS:8969-DB

Mr. R.S. Pai, Mr. Darshan Ashar, Mr. Bennet D'Costa, Mr. Neel Helekar, Mr. Hemant Telkar

Godrej And Boyce Shramik Sangh

Maharashtra Navnirman Kamgar Sena & Ors.

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution challenging the Industrial Court's orders allowing amendment of a trade union recognition application and refusing to appoint an Investigating Officer for verification of membership.

Remedy Sought

Petitioner (Godrej And Boyce Shramik Sangh) sought to quash and set aside the orders dated 12 March 2012 (allowing amendment) and 19 January 2013 (rejecting appointment of Investigating Officer).

Filing Reason

Petitioner contended that the recognition application was not maintainable as it lacked membership figures for the statutory six-month period immediately preceding the date of filing, and that the Industrial Court should have appointed an Investigating Officer for membership verification.

Previous Decisions

Industrial Court allowed the amendment of the application on 12 March 2012; on 19 January 2013, the Industrial Court dismissed the application for appointment of an Investigating Officer.

Issues

Whether the Industrial Court erred in allowing the amendment of the application under Section 14 to incorporate correct membership figures for the period July-December 2010? Whether the Industrial Court erred in declining to appoint an Investigating Officer under Section 8 after evidence had already commenced?

Submissions/Arguments

Petitioner argued that as per Section 14 and the Supreme Court's decision in Automobile Products, the application must show larger membership for the six calendar months immediately preceding the month of filing; since the application filed in January 2011 disclosed membership only up to November 2010, it was not maintainable and the amendment should not have been allowed. Petitioner contended that Section 8 of the Act empowers the Industrial Court to appoint an Investigating Officer and there was no justification for refusing to exercise that discretion. Respondent No.1 submitted that the amendment was sought at the pre-trial stage to correct an inadvertent error because the application was originally prepared for filing in December 2010 but actually filed in January 2011; the relevant period was July-December 2010 and the amendment did not alter the basis of the application. Respondent No.1 argued that the question of membership strength is a factual issue to be decided on evidence, which had already commenced, and the petitioner's belated challenge after nearly a year indicated acquiescence. Respondent No.1 also submitted that the Industrial Court's discretion under Section 8 is not mandatory and appointment of an Investigating Officer after evidence had begun would only protract the proceedings, and the Act does not envisage a two-tier adjudication process.

Ratio Decidendi

An amendment to include correct membership figures for the statutory six-month period in a recognition application under Section 14 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 is permissible when it does not change the basis of the application and the factual question of membership strength must be decided on evidence. The Industrial Court has discretionary power under Section 8 to appoint an Investigating Officer, but it is not bound to do so, especially after evidence has commenced, and such discretion will not be interfered with unless exercised arbitrarily. Additionally, delay and acquiescence in challenging an order can disentitle a party to relief under writ jurisdiction.

Judgment Excerpts

The amendment which has been allowed does not change the basis or nature of the application because whether the First Respondent does or does not have the requisite membership for the relevant period between June and December 2010 is a matter to be determined on the basis of evidence; The Industrial Court, in our view, has furnished cogent reasons for declining to appoint an Investigating Officer. Undoubtedly, the Industrial Court does have the

Procedural History

Petitioner recognized as union on 21 October 1982. First Respondent filed application under Section 14 on 19 January 2011 seeking recognition in place of Petitioner. Petitioner filed written statement on 28 June 2011 raising maintainability due to missing membership period. First Respondent applied for amendment on 26 July 2011, allowed on 12 March 2012. Issues framed and evidence commenced. On 4 October 2012, Petitioner moved for appointment of Investigating Officer, dismissed on 19 January 2013. Writ petition filed in March 2013. High Court heard the matter and delivered judgment on 6 September 2013 dismissing the petition.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 8, Section 11, Section 12, Section 14, Section 19
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