WRIT PETITION NO. 7985 OF 2005.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petition under Article 226 and 227 of the Constitution of India challenged an order of the Second Labour Court, Thane, which allowed an application under Rule 26(2) of the Industrial Disputes (Bombay) Rules, 1957, to set aside an ex parte award after more than 30 days from its publication. The dispute arose from Reference (IDA) No. 224 of 1996, where the Labour Court passed an ex parte award on 12 June 1998 in favour of the petitioner-workman, directing reinstatement with back-wages. The award was published on 5 August 1998. The respondent-employer claimed to have received a copy of the award only on 27 January 1999 and filed the application for setting aside the ex parte award on 29 January 1999. The Labour Court allowed the application on 12 July 2005, holding that the notice was not duly served and that the workman was aware of the correct address but deliberately used the closed factory address. The petitioner contended that under Section 17A of the Industrial Disputes Act, 1947, the award became enforceable after 30 days from publication, and the Labour Court thereafter became functus officio, incapable of recalling the award. Reliance was placed on Sangham Tape Co. v. Hans Raj, 2005 SCC (L&S) 65 and Vasant Govind Shirsekar v. Mhatre Pen and Plastics Pvt. Ltd. & Ors., 2005 II CLR 969. The respondent argued that Rule 26(2) of the Bombay Rules permits an application within 30 days from receipt of the copy of the award, and distinguished the cited cases on the ground that the Central Rules lack a similar provision. The court heard the parties and reserved judgment, but the extracted text does not include the final decision or reasoning of the High Court.

Issue of Consideration

whether the Labour Court constituted under the provisions of the Industrial Disputes Act, 1947 can restore or recall the award passed by it after expiry of 30 days from its publication i.e. after it becomes enforceable

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Law Points

  • Labour Court becomes functus officio after expiry of 30 days from publication of award under Section 17A
  • Industrial Disputes Act
  • 1947
  • Rule 26(2) of Industrial Disputes (Bombay) Rules
  • 1957 permits filing within 30 days of receipt of copy of award
  • application for recall cannot be entertained if filed after award becomes enforceable
  • provisions of CPC apply to industrial adjudication but with limitations
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Case Details

2006 LawText (BOM) (01) 11

Writ Petition No. 7985 of 2005

2006-01-25

V.C. DAGA, J.

2006:BHC-AS:1435

Yogendra M. Pendse for petitioner, S.C. Naidu with C.R. Naidu for respondent No.1

Shri Radhakrishna Mani Tripathi

Mr. L. H. Patel & Anr.

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Nature of Litigation

Challenge to Labour Court order setting aside ex parte award after award became enforceable

Remedy Sought

Petitioner (workman) sought quashing of Labour Court's order dated 12.7.2005 and restoration of ex parte award

Filing Reason

Labour Court allowed respondent's application under Rule 26(2) to set aside ex parte award, allegedly without jurisdiction after expiry of 30 days from publication

Previous Decisions

Ex parte award passed on 12.6.1998; Labour Court set aside ex parte award on 12.7.2005 under Rule 26(2); writ petition filed against that order

Issues

Whether Labour Court can restore or recall award after expiry of 30 days from publication when it becomes enforceable under Section 17A of Industrial Disputes Act, 1947. Whether Rule 26(2) of Bombay Rules permits filing application for setting aside ex parte award beyond 30 days from publication but within 30 days of receipt of copy.

Submissions/Arguments

Petitioner: Labour Court becomes functus officio after 30 days from publication of award under Section 17A; application for setting aside must be filed within that period; reliance on Sangham Tape Co. case. Respondent: Under Rule 26(2) Bombay Rules, application can be filed within 30 days of receipt of copy of award; he received copy on 27.1.99 and filed on 29.1.99, so within time; Sangham Tape Co. distinguishable because Central Rules lack such provision; Labour Court correctly allowed application as service was not proper.

Judgment Excerpts

The substantial issue raised is: whether the Labour Court constituted under the provisions of the Industrial Disputes Act, 1947 can restore or recall the award passed by it after expiry of 30 days from its publication i.e. after it becomes enforceable. (Para 2) the Tribunal after expiry of 30 days from the date of publication of the award does not retain jurisdiction over the dispute referred to it for adjudication. (Para 16) Once the Award becomes enforceable, Industrial Tribunal and/or Labour Court becomes functus officio. (Para 16)

Procedural History

Reference made to Labour Court in 1996 (Ref. IDA No. 224/1996); ex parte award passed on 12.6.1998; award published on 5.8.1998; respondent received copy on 27.1.1999; application to set aside filed on 29.1.1999; Labour Court allowed on 12.7.2005; writ petition filed under Articles 226/227.

Acts & Sections

  • Industrial Disputes Act, 1947: 10, 12(5), 17A
  • Industrial Disputes (Bombay) Rules, 1957: 26(2), 31(A)
  • Code of Civil Procedure, 1908: Order 9 Rule 13
  • Constitution of India, 1950: Articles 226, 227
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