Bombay High Court Dismisses Employer's Petition Challenging Industrial Court Jurisdiction in Superannuation Dispute. Employee Entitled to Continue Till Age 60 as Per Certified Standing Orders Under Section 28 and Item 9 Schedule IV of MRTU & PULP Act, 1971.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
  • 86
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Sunflag Iron & Steel Company Limited, challenged the judgment of the Industrial Court, Bhandara, which allowed a complaint filed by the respondent No.1, Sunflag Iron & Steel Mazdoor Sabha, a recognized union. The complaint was filed under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act), alleging that the petitioner's action to superannuate an employee at age 58 was in breach of certified standing orders, which prescribed a retirement age of 60 years. The petitioner raised a preliminary objection regarding the jurisdiction of the Industrial Court, contending that the dispute related to superannuation and should be adjudicated by the Labour Court under Item 1 of Schedule IV. The Industrial Court, after hearing the parties who agreed not to lead evidence, held that the complaint was tenable before it and found a violation of certified standing orders. By judgment dated 29 September 2014, the Industrial Court allowed the complaint and directed that the employee was entitled to continue in service till age 60. The petitioner challenged this decision in the High Court. The High Court examined the issue of jurisdiction and held that the Industrial Court had correctly assumed jurisdiction because the complaint alleged breach of certified standing orders, which falls under Item 9 of Schedule IV. The court noted that the certified standing orders prescribed the age of retirement as 60 years, and the employer's action to superannuate at 58 years was a violation. The High Court dismissed the writ petition, upholding the Industrial Court's order. The court also directed the petitioner to pay costs of Rs. 5,000 to the respondent No.1.

Headnote

A) Industrial Law - Jurisdiction of Industrial Court - Unfair Labour Practice - Section 28, Item 9 Schedule IV, MRTU & PULP Act, 1971 - The Industrial Court has jurisdiction to entertain a complaint alleging breach of certified standing orders under Item 9 of Schedule IV, even if the action also involves superannuation. The court held that the complaint was tenable before the Industrial Court and that there was a violation of certified standing orders. (Paras 2-4)

B) Industrial Law - Superannuation Age - Certified Standing Orders - Item 9 Schedule IV, MRTU & PULP Act, 1971 - Where certified standing orders prescribe a retirement age of 60 years, an employer's action to superannuate an employee at 58 years amounts to an unfair labour practice under Item 9. The court directed that the employee was entitled to continue in employment till age 60. (Paras 4-5)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Industrial Court has jurisdiction to entertain a complaint under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, challenging the superannuation of an employee at age 58, when the employee claims entitlement to continue till age 60 under certified standing orders.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's judgment dated 29 September 2014. The court directed the petitioner to pay costs of Rs. 5,000 to the respondent No.1.

Law Points

  • Jurisdiction of Industrial Court under Section 28 of MRTU & PULP Act
  • 1971
  • Item 9 of Schedule IV
  • Certified Standing Orders
  • Superannuation age dispute
Subscribe to unlock Law Points Subscribe Now

Case Details

2015 LawText (BOM) (07) 185

WRIT PETITION NO.6819 OF 2014

2015-07-09

A.S. Chandurkar, J

Shri R. B. Puranik for petitioner, Shri R. N. Sen for respondent No.1

Sunflag Iron & Steel Company Limited

Sunflag Iron & Steel Mazdoor Sabha, Member, Industrial Court, Bhandara

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

Nature of Litigation

Writ petition challenging the jurisdiction of the Industrial Court to entertain a complaint under Section 28 of the MRTU & PULP Act, 1971, regarding superannuation age.

Remedy Sought

The petitioner sought to quash the Industrial Court's judgment allowing the complaint and directing continuation of employment till age 60.

Filing Reason

The petitioner employer challenged the Industrial Court's order on the ground of lack of jurisdiction.

Previous Decisions

The Industrial Court by judgment dated 29 September 2014 allowed the complaint and directed that the employee was entitled to continue till age 60.

Issues

Whether the Industrial Court has jurisdiction to entertain a complaint under Section 28 of the MRTU & PULP Act, 1971, when the dispute pertains to superannuation age. Whether the action of the employer to superannuate an employee at age 58 amounts to an unfair labour practice under Item 9 of Schedule IV of the MRTU & PULP Act, 1971.

Submissions/Arguments

Petitioner argued that the Industrial Court had no jurisdiction as the dispute related to superannuation, which falls under Item 1 of Schedule IV, triable by Labour Court. Respondent No.1 argued that the complaint was under Item 9 of Schedule IV alleging breach of certified standing orders, which is within the jurisdiction of the Industrial Court.

Ratio Decidendi

The Industrial Court has jurisdiction to entertain a complaint under Section 28 of the MRTU & PULP Act, 1971, alleging breach of certified standing orders under Item 9 of Schedule IV, even if the dispute involves superannuation. The certified standing orders prescribing retirement age of 60 years are binding, and superannuation at 58 years amounts to an unfair labour practice.

Judgment Excerpts

The issue of jurisdiction of the Industrial Court to entertain a complaint filed by the respondent No.1 challenging the action of the petitioner of seeking to superannuate the respondent No.1 from service on reaching the age of 58 years arises for consideration. The Industrial Court considered the respective cases of the parties after they had agreed not to lead any evidence before it. It was held that the complaint as filed was tenable before the Industrial Court and thereafter found that there was also a violation of the certified standing orders.

Procedural History

The respondent No.1 union filed a complaint under Section 28 of the MRTU & PULP Act, 1971, before the Industrial Court, Bhandara, challenging the superannuation of an employee at age 58. The petitioner filed a written statement raising a preliminary objection on jurisdiction. The Industrial Court, after hearing the parties, allowed the complaint by judgment dated 29 September 2014. The petitioner then filed the present writ petition before the Bombay High Court, Nagpur Bench.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Item 9 of Schedule IV, Item 1 of Schedule IV
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Landowner's Appeal Against High Court's Grant of Additional Acquisition Time in Town Planning Case. Statutory timelines under Sections 126 and 127 of Maharashtra Regional and Town Planning Act, 1966 are mandatory and courts canno...
Related Judgement
High Court Bombay High Court Dismisses Employer's Petition Challenging Industrial Court Jurisdiction in Superannuation Dispute. Employee Entitled to Continue Till Age 60 as Per Certified Standing Orders Under Section 28 and Item 9 Schedule IV of MRTU & PULP Act...