High Court of Bombay at Aurangabad Allows Petition of Employer in Unfair Labour Practice Case — Employee Not a Workman Under Industrial Disputes Act. Reliance Communication Ltd. v. Abhijeet Nanaware — Held that employee with annual salary exceeding Rs. 4,48,000 and performing managerial duties is not a workman under Section 2(s) of Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The petitioner, Reliance Communication Ltd., challenged the judgment of the Industrial Court, Jalna dated 26.03.2015 in Revision (ULP) No.151/2013, which had quashed the Labour Court's order dated 29.06.2013 in Complaint (ULP) No.03/2011. The respondent, Abhijeet Nanaware, was appointed as Sub Area Manager on 10.07.2009 and worked until 01.03.2011. His annual salary was Rs. 4,48,000 with basic pay of Rs. 1,34,400 per annum, and he received perquisites not available to workmen. The Labour Court had held that the respondent was not a workman under Section 2(s) of the Industrial Disputes Act, 1947, and dismissed his complaint under Item 1 of Schedule IV of the MRTU & PULP Act, 1971. The Industrial Court reversed this finding. The High Court, after hearing arguments, held that the Labour Court had correctly appreciated the evidence and that the respondent's salary and duties indicated he was not a workman. The High Court quashed the Industrial Court's order and restored the Labour Court's judgment, allowing the writ petition.

Headnote

A) Industrial Law - Definition of Workman - Section 2(s) Industrial Disputes Act, 1947 - Salary Threshold - Employee with annual salary of Rs. 4,48,000 and basic pay of Rs. 1,34,400 per annum, along with managerial perquisites, held not a workman as salary exceeds threshold and duties are managerial/supervisory. (Paras 4-5)

B) Industrial Law - Unfair Labour Practice - Item 1 of Schedule IV of MRTU & PULP Act, 1971 - Jurisdiction - Labour Court lacks jurisdiction to entertain complaint if complainant is not a workman under Industrial Disputes Act. (Para 5)

C) Industrial Law - Revision - Industrial Court's Power - Industrial Court erred in reversing Labour Court's finding that employee was not a workman, as Labour Court had correctly appreciated evidence. (Para 6)

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Issue of Consideration

Whether the respondent employee is a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947, and consequently whether the Labour Court had jurisdiction to entertain his complaint under the MRTU & PULP Act.

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Final Decision

The High Court allowed the writ petition, quashed the Industrial Court's order dated 26.03.2015, and restored the Labour Court's judgment dated 29.06.2013 dismissing the complaint.

Law Points

  • Definition of workman under Section 2(s) of Industrial Disputes Act
  • 1947
  • Salary threshold for workman status
  • Managerial and supervisory functions
  • Jurisdiction of Labour Court under MRTU & PULP Act
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Case Details

2015 LawText (BOM) (06) 11

Writ Petition No. 6428 of 2015

2015-06-29

Ravindra V. Ghuge, J.

Mr. Bhandari Anand P. for Petitioners, Mr. Ajinkya Kale h/f Mr. Badakh Vishal S. for Respondent

Reliance Communication Ltd. and Another

Abhijeet s/o Dattatraya Nanaware

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Nature of Litigation

Writ petition challenging Industrial Court's order in revision under MRTU & PULP Act regarding status of employee as workman.

Remedy Sought

Petitioner sought quashing of Industrial Court's order dated 26.03.2015 and dismissal of respondent's complaint.

Filing Reason

Petitioner contended that respondent was not a workman under Section 2(s) of Industrial Disputes Act, hence Labour Court lacked jurisdiction.

Previous Decisions

Labour Court held respondent not a workman and dismissed complaint; Industrial Court reversed that decision.

Issues

Whether the respondent is a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947. Whether the Labour Court had jurisdiction to entertain the complaint under MRTU & PULP Act.

Submissions/Arguments

Petitioner argued that respondent's salary of Rs. 4,48,000 per annum and managerial perquisites indicate he is not a workman. Petitioner submitted that Labour Court correctly appreciated evidence and held respondent not a workman.

Ratio Decidendi

An employee whose annual salary exceeds the threshold and whose duties are managerial or supervisory in nature is not a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947, and consequently the Labour Court has no jurisdiction to entertain a complaint under the MRTU & PULP Act.

Judgment Excerpts

The Petitioner submits that the Respondent was appointed as a Sub Area Manager. He worked from 10.07.2009 till 01.03.2011. His annual salary structure was Rs.4,48,000/. His basic pay with D.A. was Rs.1,34,400/ per annum. the Labour Court had rightly come to a conclusion that the Respondent was not a workman and as such, his complaint under Item1 of ScheduleIV of the MRTU & PULP Act, 1971 was untenable.

Procedural History

Respondent filed Complaint (ULP) No.03/2011 before Labour Court, Jalna. Labour Court dismissed it on 29.06.2013 holding respondent not a workman. Respondent filed Revision (ULP) No.151/2013 before Industrial Court, Jalna, which allowed revision on 26.03.2015. Petitioner then filed Writ Petition No.6428/2015 before High Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 2(s)
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act): Item 1 of Schedule IV
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