Bombay High Court Allows Employer's Petition Against Industrial Court Order in Unfair Labour Practice Case — Non-supply of Enquiry Report Before Dismissal Violates Natural Justice. The court remanded the matter for fresh consideration on punishment, holding that the Industrial Court erred in ordering reinstatement with full back wages without considering the gravity of misconduct.

High Court: Bombay High Court Bench: AURANGABAD
  • 128
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, The Indian Seamless Metal Tubes Limited, is a factory covered under the Factories Act, 1948. The respondent workman was appointed on 01-01-1984. He filed Complaint (ULP) No. 265/1987 before the Industrial Court at Ahmednagar on 02-12-1987, claiming permanency and incidental benefits. The complaint was allowed, holding that the employer had indulged in unfair labour practices under item 6 of Schedule IV of the MRTU & PULP Act by engaging the respondent as a temporary worker with intent to deprive him of permanency, and also under item 9 for non-compliance of Standing Order 4(C) of the Industrial Employment (Standing Orders) Act, 1946. Subsequently, the respondent was charge-sheeted on 14-09-1989 for refusing to work, leaving the workplace, sitting idle, and speaking arrogantly. He refused to accept the charge-sheet, so another was served on 16-09-1989. A domestic enquiry was held, and the Enquiry Officer found him guilty under Standing Orders 24(a) and 24(x), but not under 24(k) and 24(l). The employer dismissed him on 15-04-1991. It was conceded that the enquiry report was given to the respondent along with the dismissal order, not before. The respondent challenged the dismissal by filing Complaint (ULP) No. 52/1991 before the Labour Court, alleging that the employer, aggrieved by his claim of permanency, had charged him with misconduct. The Labour Court allowed the complaint, holding that the non-supply of the enquiry report before dismissal violated natural justice and that the dismissal was an unfair labour practice. The Industrial Court upheld the Labour Court's order and directed reinstatement with full back wages. The employer filed the present writ petition challenging the Industrial Court's order. The High Court held that the non-supply of the enquiry report before dismissal is indeed a violation of natural justice, but the Industrial Court erred in ordering reinstatement with full back wages without considering the gravity of the misconduct. The High Court set aside the Industrial Court's order and remanded the matter to the Industrial Court for fresh consideration on the question of punishment, directing that the workman be given an opportunity to be heard.

Headnote

A) Industrial Law - Unfair Labour Practice - Non-supply of Enquiry Report - The employer dismissed the workman after a domestic enquiry but did not supply the enquiry report to the workman before the dismissal order. The Labour Court and Industrial Court held that this violated natural justice and amounted to unfair labour practice under item 6 of Schedule IV of the MRTU & PULP Act. The High Court upheld the finding that non-supply of the enquiry report before dismissal is a breach of natural justice, but set aside the Industrial Court's order for reinstatement with full back wages and remanded the matter for fresh consideration on punishment. (Paras 1-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the non-supply of the enquiry report to the workman before the order of dismissal amounts to a violation of principles of natural justice and renders the dismissal invalid.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the writ petition in part. It held that the non-supply of the enquiry report before dismissal is a violation of natural justice, but the Industrial Court erred in ordering reinstatement with full back wages without considering the gravity of the misconduct. The matter was remanded to the Industrial Court for fresh consideration on the question of punishment, with an opportunity to the workman to be heard.

Law Points

  • Natural justice
  • non-supply of enquiry report
  • unfair labour practice
  • MRTU & PULP Act
  • Industrial Employment (Standing Orders) Act
  • 1946
  • Standing Order 4(C)
  • Standing Order 24(a)
  • Standing Order 24(x)
  • item 6 Schedule IV
  • item 9 Schedule IV
Subscribe to unlock Law Points Subscribe Now

Case Details

2014 LawText (BOM) (04) 8

Writ Petition No. 2035 of 2001

2014-04-11

RAVINDRA V. GHUGE, J.

Mr. D.V. Chengede, Mr. V.S. Bedre for petitioner; Mr. A.K. Gawali for respondent

The Indian Seamless Metal Tubes Limited (Tubes Works)

Shri Kailash Nampelli Ushakoyal, The Hon’ble Industrial Court at Ahmednagar

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging the order of the Industrial Court which upheld the Labour Court's order declaring the dismissal of the workman as an unfair labour practice and directing reinstatement with full back wages.

Remedy Sought

The petitioner-employer sought to quash the Industrial Court's order and uphold the dismissal of the workman.

Filing Reason

The employer was aggrieved by the Industrial Court's order directing reinstatement with full back wages, arguing that the non-supply of the enquiry report before dismissal was not a violation of natural justice or that the punishment of dismissal was proportionate.

Previous Decisions

The Labour Court allowed Complaint (ULP) No. 52/1991, holding that non-supply of enquiry report before dismissal violated natural justice and amounted to unfair labour practice. The Industrial Court upheld that order and directed reinstatement with full back wages.

Issues

Whether non-supply of the enquiry report to the workman before the order of dismissal violates principles of natural justice. Whether the Industrial Court was justified in ordering reinstatement with full back wages without considering the gravity of the misconduct.

Submissions/Arguments

The petitioner-employer argued that the non-supply of the enquiry report before dismissal was not a violation of natural justice as the workman was given the report along with the dismissal order. The respondent-workman argued that the non-supply of the enquiry report before dismissal deprived him of an opportunity to make representations against the findings, thus violating natural justice.

Ratio Decidendi

Non-supply of the enquiry report to the workman before the order of dismissal is a violation of principles of natural justice. However, the Industrial Court must consider the gravity of the misconduct before ordering reinstatement with full back wages.

Judgment Excerpts

It is conceded that the Enquiry report was given to the respondent along with the order of dismissal and not there before. The Industrial Court erred in ordering reinstatement with full back wages without considering the gravity of the misconduct.

Procedural History

The workman filed Complaint (ULP) No. 265/1987 for permanency, which was allowed. He was then charge-sheeted and dismissed. He filed Complaint (ULP) No. 52/1991 challenging the dismissal. The Labour Court allowed the complaint. The employer appealed to the Industrial Court, which upheld the Labour Court's order. The employer then filed the present writ petition before the High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act): Schedule IV, Item 6, Item 9
  • Industrial Employment (Standing Orders) Act, 1946: Standing Order 4(C), Standing Order 24(a), Standing Order 24(x), Standing Order 24(k), Standing Order 24(l)
  • Factories Act, 1948:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Suit for Specific Performance and Injunction in Property Dispute — Plaintiff Fails to Prove Readiness and Willingness to Perform Contract. Agreement for Sale of Flat Declared Null and Void Due to Non-Compliance with Cond...
Related Judgement
High Court High Court of Karnataka Dismisses State Appeal Against Acquittal in POCSO Case — Prosecution Fails to Prove Guilt Beyond Reasonable Doubt. Inconsistencies in Victim's Testimony and Lack of Corroboration Lead to Confirmation of Acquittal Under Secti...