Case Note & Summary
The Maharashtra General Kamgar Union filed a writ petition under Article 226 of the Constitution challenging an order of the Industrial Court dated 30th April 1986, which dismissed two complaints of unfair labour practices under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The first respondent, Ilac Limited, was engaged in manufacturing PVC material and closed its factories around 1983 due to adverse import conditions. The government refused permission for closure under Chapter VB of the Industrial Disputes Act, 1947. A layoff commenced on 23rd May 1985, and the company sought permission under Section 25M on 29th May 1985, which was rejected by the Deputy Labour Commissioner on 25th July 1985 on the ground that there was no shortage of power supply. The company then suspended work on 23rd October 1985 and declared a lockout on 7th November 1985. The Deputy Commissioner's order was challenged in a writ petition before a Division Bench of the Bombay High Court, which dismissed it on 7th June 1995, holding that the company had attempted to close down on various pretexts. The Industrial Court dismissed the union's complaints, leading to the present petition. The High Court found that the layoff was illegal as permission was refused, and the lockout was unjustified. The court set aside the Industrial Court order and directed reinstatement of the workmen with full back wages and continuity of service.
Headnote
A) Industrial Law - Unfair Labour Practice - Layoff Without Permission - Sections 25M, 25N, 25O of Industrial Disputes Act, 1947; Items 1,2,5,6 of Schedule II and Items 9,10 of Schedule IV of MRTU & PULP Act, 1971 - The company laid off workmen without obtaining permission under Section 25M and later declared a lockout without complying with closure provisions. The Industrial Court dismissed complaints of unfair labour practices. The High Court held that the layoff was illegal as permission was refused, and the lockout was unjustified. The court set aside the Industrial Court order and directed reinstatement with back wages. (Paras 1-3)
Issue of Consideration
Whether the layoff and lockout by the company without obtaining permission under Section 25M of the Industrial Disputes Act, 1947 and without complying with the provisions of the MRTU & PULP Act, 1971 constituted unfair labour practices.
Final Decision
The High Court allowed the writ petition, set aside the Industrial Court order dated 30th April 1986, and directed the reinstatement of the workmen with full back wages and continuity of service.
Law Points
- Unfair labour practice
- layoff without permission
- closure without permission
- Industrial Disputes Act
- 1947
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act
- 1971
Case Details
2006 LawText (BOM) (08) 4
WRIT PETITION NO.1595 OF 1986
Dr. R.S. Kulkarni with Mr. Abhay Kulkarni for the Petitioner, Mr. M.S. Topkar for Respondent No.4
Maharashtra General Kamgar Union
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Nature of Litigation
Writ petition under Article 226 challenging Industrial Court order dismissing complaints of unfair labour practices.
Remedy Sought
Petitioner sought to set aside the Industrial Court order and declare the layoff and lockout as illegal, with reinstatement and back wages.
Filing Reason
The Industrial Court dismissed complaints alleging unfair labour practices by the company in laying off workmen without permission and declaring a lockout.
Previous Decisions
The Deputy Labour Commissioner refused permission for layoff on 25th July 1985; the Division Bench of Bombay High Court dismissed the company's writ petition on 7th June 1995.
Issues
Whether the layoff of workmen without permission under Section 25M of the Industrial Disputes Act, 1947 constitutes an unfair labour practice.
Whether the lockout declared by the company was justified and in compliance with the law.
Submissions/Arguments
Petitioner argued that the layoff was illegal as permission was refused and the lockout was a pretext to close down the company.
Respondent contended that the layoff and lockout were due to financial difficulties and shortage of power supply.
Ratio Decidendi
A layoff without obtaining permission under Section 25M of the Industrial Disputes Act, 1947, when such permission is refused, is illegal and constitutes an unfair labour practice. A subsequent lockout declared without valid justification also amounts to an unfair labour practice. Workmen are entitled to reinstatement with full back wages and continuity of service.
Judgment Excerpts
These proceedings under Article 226 of the Constitution arise out of an order passed by the Industrial Court on 30th April, 1986 by which two complaints of unfair labour practices under items 1, 2, 5 and 6 of Schedule II and items 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 came to be dismissed.
The Deputy Commissioner of Labour held that the provisions of Section 25M were not attracted because there was no shortage of power supply and a disconnection for non-payment of bills could not be equated with a shortage of power supply.
Procedural History
The Deputy Labour Commissioner refused permission for layoff on 25th July 1985. The company challenged this in a writ petition before a Division Bench of the Bombay High Court, which dismissed it on 7th June 1995. The union filed complaints of unfair labour practices before the Industrial Court, which were dismissed on 30th April 1986. The union then filed the present writ petition under Article 226.
Acts & Sections
- Industrial Disputes Act, 1947: 25M, 25N, 25O, Chapter VB
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule II Items 1, 2, 5, 6; Schedule IV Items 9, 10
- Constitution of India: Article 226
