Bombay High Court Dismisses Employer’s Writ Petition Against Industrial Court’s Direction to Absorb Employees as Canal Inspectors – Findings of Unfair Labour Practice under Items 5 and 9 of Schedule IV of MRTU & PULP Act, 1971 Upheld. Direction to absorb employees on the post of Canal Inspector from the date of complaint was based on evidence that employees had completed training, passed departmental examination, and were actually performing duties of the higher post, with employer failing to act despite available vacancies.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The writ petition was filed by the State Government and its officers challenging an order of the Industrial Court, Nagpur, which had declared that the employer had committed an unfair labour practice under Items 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, and directed the absorption of six employees as Canal Inspectors from the date of complaint. The employees had worked as labourers from the late 1970s or early 1980s, completed training for the post of Canal Inspector in 1985, passed the departmental examination, and from January 1986 they were assigned the duties of Canal Inspectors on a continuous basis. Despite vacancies existing and a proposal for promotion being forwarded, no appointment orders were issued. The employer promoted one S.S. Choudhari as Canal Inspector, who, it was alleged, had not passed the examination, while the respondents were ignored. The Industrial Court, after considering oral and documentary evidence including work distribution charts and testimonies of officers who admitted assigning Canal Inspector duties, held that the employer had committed unfair labour practice and directed absorption. The employer, in its writ petition, contended that public employment requires sanctioned posts and a proper selection process, that the employees did not meet the Recruitment Rules, and that comparisons with Choudhari were invalid. It relied on judgments prohibiting regularisation of temporary employees without due process. The employees supported the Industrial Court’s order and invoked the principle of equal pay for equal work, citing Sakhaullah’s case. The High Court, exercising limited jurisdiction under Articles 226 and 227, examined whether the Industrial Court’s order suffered from any error of jurisdiction or perversity. It noted that the Industrial Court’s findings—that the employees had completed training, passed the departmental examination, and actually performed the higher duties—were based on evidence and were not perverse. The Court distinguished the case from general regularisation cases, observing that the direction was not to regularise temporary employment but to absorb the employees in the very posts they were already working on, with the necessary qualifications and available vacancies. The High Court held that the Industrial Court had the jurisdiction under the ULP Act to correct the employer’s unilateral action and ensure equal pay for equal work. The petition was consequently dismissed, and the rule was discharged with no order as to costs.

Headnote

A) Labour Law – Unfair Labour Practice – Items 5 and 9 of Schedule IV of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 – The Industrial Court has jurisdiction to examine unilateral action of employer and grant relief to employees denied appointment/absorption despite completing training, passing departmental examination, and actually performing duties of the higher post. Here, the employer admitted the employees’ training and exam, yet failed to absorb them as Canal Inspectors while promoting another employee, and the evidence showed the employees were working as Canal Inspectors, establishing unfair labour practice. Held that the Industrial Court’s order of absorption was legally justified (Paras 4, 6, 9).

B) Service Law – Equal Pay for Equal Work – The principle that employees performing higher duties should receive corresponding pay, as recognized in Sakhaullah v. Visvesvaraya Regional College of Engineering, 1999 (1) Mh. L.J. 605, was violated where the respondents were assigned the work of Canal Inspectors but paid as labourers. The Industrial Court’s direction to pay the higher scale from the date of complaint was upheld (Para 5).

C) Constitutional Law – Writ Jurisdiction – Articles 226 and 227 of the Constitution do not permit reappreciation of evidence; interference with findings of fact by the High Court is warranted only if they are perverse or based on no evidence. The Industrial Court’s appreciation of oral and documentary evidence that the employees worked as Canal Inspectors was rational and not perverse, precluding interference (Paras 8, 9, 12).

D) Service Law – Regularisation versus Absorption – The direction to ‘appoint/absorb’ respondents as Canal Inspectors is distinguishable from regularisation of temporary employees without sanction or selection; it was a recognition of the employees’ actual performance of higher duties and their qualifications for the post, with vacancies available. Judgments in Mahatma Fule Agricultural University v. Nasik Zilla Sheth Kamgar Union, (2001) 7 SCC 346 and A. Umarani v. Registrar, (2004) 7 SCC 112, dealing with regularisation of ad hoc/temporary employees, were held inapplicable on facts (Paras 7, 10, 11).

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Issue of Consideration

Whether the Industrial Court was legally right in directing the employer to appoint/absorb the respondents as Canal Inspectors under the provisions of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, considering the principles of public employment and the evidence on record.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court’s order. Held that the Industrial Court had jurisdiction to examine unilateral action under ULP Act and grant relief; findings of fact were based on evidence and not perverse; absorption was ordered not as regularisation of temporary employees but as recognition of actual performance of higher duties; petition dismissed with no costs.

Law Points

  • unfair labour practice under Items 5 and 9 of Schedule IV of MRTU & PULP Act
  • jurisdiction of Industrial Court to examine unilateral action of employer
  • equal pay for equal work
  • absorption based on actual duties and qualifications
  • distinction between absorption and regularisation
  • limited scope of writ jurisdiction under Article 226/227
  • findings of fact not perverse cannot be interfered
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Case Details

2006 LawText (BOM) (01) 49

Writ Petition No. 3244 of 1993

2006-01-09

B.P. Dharmadhikari

S.S. Wandile, R. Ahir Rao

The Project Officer, Soil & Water Management, Pilot Project, Vainganga Nagar, Nagpur & Ors.

Adhikaran Kisanji Zod & Ors.

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Nature of Litigation

Writ petition under Article 226/227 of the Constitution of India challenging the order of the Industrial Court that declared unfair labour practice and directed absorption of employees as Canal Inspectors.

Remedy Sought

Employer sought to quash the Industrial Court’s order dated 30th August 1993 directing them to appoint/absorb respondents as Canal Inspectors from 3/10/1991.

Filing Reason

Employer contended that the Industrial Court erred in law by directing absorption without sanctioned posts and proper selection process, and that the findings were perverse.

Previous Decisions

Industrial Court, Nagpur, allowed Complaint No. 1280 of 1991 on 30th August 1993, holding that the employer committed unfair labour practice under Items 5 and 9 of Schedule IV of ULP Act, and directed absorption of respondents 1 to 6 as Canal Inspectors from the date of complaint. High Court granted stay of the order pending writ petition.

Issues

Whether the Industrial Court was legally justified in directing absorption of respondents as Canal Inspectors despite their status as public servants and absence of sanctioned posts and regular selection process? Whether the Industrial Court’s findings that respondents were actually working as Canal Inspectors and that the employer committed unfair labour practice were based on evidence and not perverse? Whether the employer can raise a new case before the High Court for the first time in writ jurisdiction that was not pleaded before the Industrial Court?

Submissions/Arguments

Petitioners argued that there were no sanctioned posts and no proper selection process; respondents were not qualified as per Recruitment Rules; absorption would violate principles of public employment; case law (Mahatma Fule, A. Umarani, State of Orissa) bars regularisation without due process; comparison with S.S. Choudhari unwarranted; Kalelkar settlement prevents claim of regularisation. Respondents argued that the Industrial Court order was correct; they were working on higher post without pay, breaching ‘equal pay for equal work’; Sakhaullah case supports; S.S. Choudhari was not qualified, department later sought proof; employer cannot raise new case before High Court relying on Shankar Chakravarti.

Ratio Decidendi

Under the MRTU & PULP Act, the Industrial Court has jurisdiction to examine unilateral action of an employer and grant suitable relief to employees who were actually performing higher duties and possessed the qualifications for the post, even in public employment, when such action constitutes unfair labour practice under Items 5 and 9 of Schedule IV. The direction to absorb employees in such a case is not a regularisation of temporary employment in violation of recruitment rules, but a correction of unfair practice by recognizing the work actually performed and awarding due pay from the date of complaint. In writ jurisdiction under Articles 226 and 227, findings of fact based on appreciation of evidence cannot be interfered with unless shown to be perverse.

Judgment Excerpts

The jurisdiction to examine such unilateral action of employer is obviously with the Industrial Court under U.L.P. Act. The question is whether Industrial Court was legally right in directing Petitioners to appoint/absorb respondents as Canal Inspector. In the present facts, the direction to absorb respondents as Canal Inspectors, cannot be equated with the regularisation of a temporary employee...

Procedural History

Respondents (employees) filed ULP Complaint No. 1280 of 1991 before Industrial Court, Nagpur, under Section 28 of ULP Act r/w Schedule IV items 5 and 9, alleging unfair labour practice by employer (State Government) for not appointing/absorbing them as Canal Inspectors despite completing training, passing departmental exam, and working as such since 1986. Industrial Court by order dated 30-08-1993 allowed complaint and directed absorption from 03-10-1991. Petitioners (employer) filed Writ Petition No. 3244 of 1993 before High Court, which granted stay of the Industrial Court order. During pendency, respondents 3 and 5 accepted posts of Wireless Operator and gave up claim. High Court heard petition and reserved judgment on 22-12-2005, pronounced on 09-01-2006, dismissing petition.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Schedule IV Items 5 and 9
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