Case Note & Summary
The petitioners, three employees of India United Mills prior to its nationalization under the Sick Textile Undertakings (Nationalization) Act, 1974, challenged their retirement at age 58 by the National Textile Corporation. They filed a complaint under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, alleging unfair labour practice. The Industrial Court dismissed the complaint. A learned Single Judge of the Bombay High Court allowed the petition on 12 April 2006. However, a Division Bench set aside that order on 19 July 2006 and remitted the matter for fresh disposal because the Single Judge had not considered a Division Bench decision dated 14 February 2003 in National Textile Corporation Ltd. (Pattern) Employees Association vs. Union of India, which upheld the Corporation's decision to reduce the retirement age from 60 to 58 years. Upon rehearing, the court found that the grievance lacked merit. The court noted that prior to nationalization, a settlement of 21 February 1956 set the retirement age at 60 years. After nationalization, a settlement of 10 May 1975 continued existing terms. However, the Division Bench precedent was binding and upheld the reduction. Consequently, the petition was dismissed.
Headnote
A) Service Law - Retirement Age - Reduction of Retirement Age - Sick Textile Undertakings (Nationalization) Act, 1974 - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Schedule IV Item 9 - Petitioners challenged reduction of retirement age from 60 to 58 years by National Textile Corporation after nationalization - Court held that the Division Bench decision in National Textile Corporation Ltd. (Pattern) Employees Association vs. Union of India upheld the rollback, and the same is binding - Petition dismissed (Paras 1-2).
Issue of Consideration
Whether the reduction of retirement age from 60 to 58 years by the National Textile Corporation constitutes an unfair labour practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.
Final Decision
The petition is dismissed. The court held that the grievance of the petitioners is lacking in merit and the petition is liable to be dismissed.
Law Points
- Retirement age
- Service conditions
- Nationalization
- Binding precedent
- Unfair labour practice
Case Details
2006 LawText (BOM) (08) 82
WRIT PETITION NO.2360 OF 2002
Mr. N. M. Ganguli for the Petitioners, Mrs. Meena Doshi for the Respondents
National Textile Corporation (M.N.) Ltd. & Ors.
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Nature of Litigation
Writ petition challenging dismissal of complaint under Item 9 of Schedule IV of MRTU & PULP Act regarding retirement age reduction.
Remedy Sought
Petitioners sought to set aside the order of the Industrial Court dismissing their complaint and to declare the reduction of retirement age as an unfair labour practice.
Filing Reason
Petitioners were retired at age 58 by National Textile Corporation, whereas they claimed the age of superannuation was 60 years under pre-nationalization settlements.
Previous Decisions
Industrial Court dismissed the complaint; Learned Single Judge allowed the petition on 12 April 2006; Division Bench set aside that order on 19 July 2006 and remitted for fresh disposal.
Issues
Whether the reduction of retirement age from 60 to 58 years by the National Textile Corporation constitutes an unfair labour practice under Item 9 of Schedule IV of the MRTU & PULP Act.
Submissions/Arguments
Petitioners argued that under the settlement of 21 February 1956, the retirement age was 60 years, and this was continued post-nationalization by the settlement of 10 May 1975.
Respondents relied on the Division Bench decision in National Textile Corporation Ltd. (Pattern) Employees Association vs. Union of India which upheld the reduction of retirement age to 58 years.
Ratio Decidendi
The Division Bench decision in National Textile Corporation Ltd. (Pattern) Employees Association vs. Union of India upheld the Corporation's decision to roll back the retirement age from 60 to 58 years, and that decision is binding. Therefore, the reduction does not constitute an unfair labour practice.
Judgment Excerpts
The judgment of the Division Bench in National Textile Corporation Ltd. (Pattern) Employees Association vs. Union of India, had upheld the decision of the Corporation to roll back the age of retirement from 60 years to 58 years.
I have come to the conclusion that the grievance of the Petitioners is lacking in merit and that the petition is liable to be dismissed.
Procedural History
Petitioners filed complaint under Item 9 of Schedule IV of MRTU & PULP Act before Industrial Court on 21 December 2001. Industrial Court dismissed complaint. Petitioners filed Writ Petition No.2360 of 2002. Learned Single Judge allowed petition on 12 April 2006. Respondents appealed; Division Bench set aside order on 19 July 2006 and remitted for fresh disposal. Matter heard and disposed of by this judgment.
Acts & Sections
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Item 9
- Sick Textile Undertakings (Nationalization) Act, 1974:
