Bombay High Court Dismisses Petition Against Industrial Court Order in Unfair Labour Practice Complaint. Employee's claim of continuous service after nationalization fails as termination occurred prior to vesting.

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

The petitioner, Ravindra Gopal Shinde, was employed as a helper with Kohinoor Mills Company Limited. On 18th October 1983, the management of the cotton textile undertakings of the company was vested in the National Textile Corporation (South Maharashtra) Limited under the Textile Undertakings (Taking Over of Management) Act, 1983. Subsequently, on 27th June 1995, the Textile Undertakings (Nationalisation) Ordinance, 1995 was promulgated, later replaced by the Textile Undertakings (Nationalisation) Act, 1995, which provided for the continuation of service of workmen employed from 18th October 1983. The petitioner contended that his services were never terminated and that he was not provided work or paid salary after the textile strike which began on 18th January 1982. He claimed that he had offered himself for work from 1st January 1996 but was not assigned any work. The petitioner filed a complaint of unfair labour practices under Items 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, which was dismissed by the Industrial Court on 27th March 2003. The defence of the National Textile Corporation was that the services of all employees of the erstwhile company stood terminated or were deemed to have been retrenched on the eve of the take over under Section 25FF of the Industrial Disputes Act, 1947. They argued that the petitioner's refusal of work on 18th January 1982 by the erstwhile company resulted in termination of his services, and his remedy lay against the erstwhile employer. The High Court, in its oral order, upheld the Industrial Court's decision, finding that the petitioner's services had terminated prior to the vesting of the undertaking, and therefore no unfair labour practice was established.

Headnote

A) Industrial Law - Unfair Labour Practice - Termination of Service - Items 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The petitioner alleged that his services were not terminated and he was not provided work after nationalisation. The Industrial Court dismissed the complaint. The High Court upheld the dismissal, finding that the petitioner's services stood terminated prior to the vesting of the undertaking in the National Textile Corporation, and thus there was no unfair labour practice. (Paras 1-4)

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Issue of Consideration

Whether the Industrial Court was justified in dismissing the complaint of unfair labour practices filed by the petitioner under Items 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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Final Decision

The High Court dismissed the writ petition, upholding the order of the Industrial Court.

Law Points

  • Unfair labour practice
  • Termination of service
  • Nationalisation
  • Continuity of service
  • Burden of proof
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Case Details

2006 LawText (BOM) (08) 12

WRIT PETITION NO.2598 OF 2003

2006-08-11

DR. D.Y. CHANDRACHUD, J.

Mr. P.M. Patel for the Petitioner, Ms. Nandini Menon for Respondent Nos.2 and 3

Ravindra Gopal Shinde

National Textile Corporation (South Maharashtra) Limited & Ors.

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Nature of Litigation

Writ petition challenging the order of the Industrial Court dismissing a complaint of unfair labour practices.

Remedy Sought

The petitioner sought to quash the Industrial Court's order and to be reinstated with continuity of service and back wages.

Filing Reason

The petitioner alleged that his services were not terminated and that he was not provided work or paid salary after the nationalisation of the textile undertaking, constituting unfair labour practices.

Previous Decisions

The Industrial Court dismissed the complaint of unfair labour practices on 27th March 2003.

Issues

Whether the petitioner's services were terminated prior to the vesting of the undertaking in the National Textile Corporation. Whether the Industrial Court erred in dismissing the complaint of unfair labour practices.

Submissions/Arguments

Petitioner: His services were never terminated; he was ready and willing to work but was not assigned work or paid salary after the strike. Respondent: The petitioner's services stood terminated or were deemed retrenched under Section 25FF of the Industrial Disputes Act, 1947 prior to the take over; his remedy is against the erstwhile employer.

Ratio Decidendi

The petitioner's services were terminated prior to the vesting of the undertaking in the National Textile Corporation, and therefore no unfair labour practice was committed by the respondents.

Judgment Excerpts

This Petition is directed against an order passed by the Industrial Court on 27th March, 2003 by which a complaint of unfair labour practices instituted by the Petitioner under items 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 was dismissed. The defence of the First Respondent was that the services of all the employees who were engaged by the textile company stood terminated or in any event must be deemed to have been retrenched on the eve of the take over in view of Section 25 FF of the Industrial Disputes Act, 1947.

Procedural History

The petitioner filed a complaint of unfair labour practices before the Industrial Court, which was dismissed on 27th March 2003. The petitioner then filed a writ petition in the High Court challenging that order.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Items 5 and 9
  • Textile Undertakings (Taking Over of Management) Act, 1983:
  • Textile Undertakings (Nationalisation) Act, 1995:
  • Industrial Disputes Act, 1947: Section 25FF
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High Court Bombay High Court Dismisses Petition Against Industrial Court Order in Unfair Labour Practice Complaint. Employee's claim of continuous service after nationalization fails as termination occurred prior to vesting.
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