Bombay High Court Allows Writ Petition Challenging Industrial Court Order Denying Locus Standi to Employees in Reference Under Bombay Industrial Relations Act. Individual Workmen Have No Independent Right to Prosecute Reference but Industrial Court Must Exercise Discretion to Hear Them if Interests Affected.

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

The petitioners, employees of Empress Mills Retail Sales Division, challenged an order of the Industrial Court dated 16th October 1995 which held that they had no legal right or locus standi to appear and prosecute Reference (ICN) 4/1978. The reference was made by the appropriate government at the instance of respondent No. 4, a representative trade union under the Bombay Industrial Relations Act (BIR Act). The dispute arose from differences in service conditions between employees in the Sales Division and those on the production side. The union made demands under Section 42(2) of the BIR Act, and after conciliation failed, a reference was filed. The employer opposed the claim, arguing that the Sales Division was covered by the Bombay Shops Establishment Act, not the BIR Act. The Industrial Court initially upheld this objection, but the High Court in Writ Petition 2262/1984 set aside that order on 13/3/1992 and directed the Industrial Court to decide the reference on merits. During the pendency of that writ petition, respondent No. 2 (Empress Mills through Maharashtra State Textile Corporation) was added as a party. After the High Court's order, the Industrial Court passed the impugned order on 16/10/1995, holding that the petitioners had no locus standi. The High Court examined the provisions of the BIR Act, particularly Section 78, and held that under the scheme of the Act, only a representative union or an employer can initiate proceedings. Individual workmen have no independent right to prosecute a reference. However, the Industrial Court has discretion to allow workmen to be heard if their interests are affected. The court found that the Industrial Court had not exercised its discretion properly and remanded the matter for fresh consideration. The High Court allowed the writ petition, setting aside the impugned order and directing the Industrial Court to decide the reference afresh after giving an opportunity of hearing to the petitioners.

Headnote

A) Industrial Law - Locus Standi - Bombay Industrial Relations Act, 1946 - Section 78 - Individual workmen have no independent right to prosecute a reference made at the instance of a representative union under the BIR Act, as the Act provides for collective bargaining through representative unions. However, the Industrial Court has discretion to allow workmen to be heard if their interests are affected. (Paras 1-3)

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Issue of Consideration

Whether individual workmen have locus standi to appear and prosecute a reference made under the Bombay Industrial Relations Act, 1946, when the reference was initiated by the representative union but the union subsequently failed to prosecute it.

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Final Decision

The High Court allowed the writ petition, set aside the impugned order dated 16/10/1995, and directed the Industrial Court to decide the reference afresh after giving an opportunity of hearing to the petitioners.

Law Points

  • Locus standi of individual workmen to prosecute reference under BIR Act
  • Interpretation of Section 78 of BIR Act
  • Right of workmen to be heard in proceedings initiated by representative union
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Case Details

2006 LawText (BOM) (11) 131

Writ Petition No. 964/1996

2006-11-06

B.P. Dharmadhikari, J.

Mr. R.B. Pendharkar, Senior Advocate with Mr. Sambhare, Advocate for Petitioner; Mr. R.B. Puranik, Advocate for Respondent No.2

A.S. Krishnamurthy and others

Central India Spinning, Weaving and Manufacturing Co. Ltd. and others

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Nature of Litigation

Writ petition challenging order of Industrial Court denying locus standi to individual workmen to prosecute a reference under the Bombay Industrial Relations Act.

Remedy Sought

Petitioners sought to set aside the Industrial Court order dated 16/10/1995 and to be allowed to prosecute the reference.

Filing Reason

The Industrial Court held that the petitioners had no legal right or locus standi to appear and prosecute the reference.

Previous Decisions

Industrial Court initially upheld employer's objection on 31/1/1984; High Court in Writ Petition 2262/1984 set aside that order on 13/3/1992 and directed Industrial Court to decide reference on merits.

Issues

Whether individual workmen have locus standi to appear and prosecute a reference under the Bombay Industrial Relations Act when the representative union fails to prosecute it.

Submissions/Arguments

Petitioners argued that they are directly affected and should be allowed to prosecute the reference. Respondent No. 2 argued that only the representative union has the right to prosecute the reference under the BIR Act.

Ratio Decidendi

Under the Bombay Industrial Relations Act, individual workmen have no independent right to prosecute a reference made at the instance of a representative union. However, the Industrial Court has discretion to allow workmen to be heard if their interests are affected, and that discretion must be exercised judicially.

Judgment Excerpts

Petitioners before this Court have challenged the order passed by Member, Industrial Court dated 16th Oct. 1995 below exhibit 28 in Reference (ICN) 4/1978, holding that the Petitioners have no legal right or locus standi to appear & prosecute said Reference.

Procedural History

Reference (ICN) 4/1978 filed by representative union under BIR Act. Industrial Court upheld employer's objection on 31/1/1984. Petitioners filed Writ Petition 2262/1984, which was allowed on 13/3/1992, directing Industrial Court to decide reference on merits. Industrial Court then passed impugned order on 16/10/1995 denying locus standi to petitioners. Petitioners filed present Writ Petition No. 964/1996.

Acts & Sections

  • Bombay Industrial Relations Act, 1946: Section 42(2), Section 73A, Section 78
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