Bombay High Court Quashes Industrial Court Order in Promotion Dispute Due to Non-Joinder of Affected Parties. Seniority-Based Promotion Claim Fails as Persons Promoted in Supersession Were Not Impleaded as Respondents Under MRTU and PULP Act.

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

The petitioner, Parmatma Ek Sevak Nagarik Sahakari Bank, challenged the judgment and order dated 27.08.2008 passed by the Industrial Court in Complaint (ULPN) No. 25 of 2004. The respondent, Bandu Shriram Thavkar, an employee of the bank, had filed a complaint under Section 28 read with Items 5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act), alleging unfair labour practice in the matter of promotion. The Industrial Court found that the respondent was senior to two other employees, Shri Ganesh Kamble and Shri Sheetal Wagh, who were promoted to the post of Assistant Branch Manager in supersession of the respondent. The Industrial Court directed the bank to consider the respondent's case for promotion to the post of Assistant Branch Manager with effect from 06.08.2001 with all consequential benefits. The bank filed a writ petition challenging this order. The High Court noted that the Industrial Court recorded the finding of supersession without the two promoted employees being joined as party respondents. The High Court held that such a finding could not be recorded in the absence of those persons, as it would affect their rights. The High Court quashed and set aside the impugned order and remitted the complaint back to the Industrial Court for fresh consideration after giving an opportunity to the respondent to implead the affected persons. The High Court directed the Industrial Court to decide the complaint afresh within six months from the date of appearance of the parties.

Headnote

A) Industrial Law - Unfair Labour Practice - Promotion - Non-Joinder of Necessary Parties - Items 5 and 9 of Schedule IV, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court recorded a finding that the complainant was senior to two other employees who were promoted in supersession, but those employees were not joined as parties. The High Court held that such a finding could not be recorded in their absence, as it would affect their rights. The order was quashed and set aside, and the complaint was remitted back to the Industrial Court for fresh consideration after impleading the affected persons. (Paras 4-6)

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Issue of Consideration

Whether the Industrial Court could grant relief to the complainant for promotion without impleading the persons who were promoted in supersession of the complainant as party respondents.

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Final Decision

The High Court allowed the writ petition, quashed and set aside the impugned order dated 27.08.2008, and remitted the complaint back to the Industrial Court for fresh consideration after giving an opportunity to the respondent to implead the affected persons. The Industrial Court was directed to decide the complaint afresh within six months from the date of appearance of the parties.

Law Points

  • Non-joinder of necessary parties
  • violation of principles of natural justice
  • unfair labour practice under Items 5 and 9 of Schedule IV of MRTU and PULP Act
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Case Details

2015 LawText (BOM) (09) 110

Writ Petition No. 1446 of 2009

2015-09-11

R. K. Deshpande

Parmatma Ek Sevak Nagarik Sahakari Bank, through its Chief Executive Officer Shri Namdeo Mahadeo Barapatre

Shri Bandu Shriram Thavkar

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Nature of Litigation

Writ petition challenging the order of the Industrial Court directing the petitioner bank to consider the respondent for promotion.

Remedy Sought

The petitioner bank sought quashing of the Industrial Court's order dated 27.08.2008.

Filing Reason

The Industrial Court allowed the respondent's complaint and directed the bank to consider him for promotion with consequential benefits, which the bank challenged.

Previous Decisions

The Industrial Court in Complaint (ULPN) No. 25 of 2004 allowed the complaint and directed the bank to consider the respondent for promotion to the post of Assistant Branch Manager with effect from 06.08.2001 with all consequential benefits.

Issues

Whether the Industrial Court could grant relief to the complainant for promotion without impleading the persons who were promoted in supersession of the complainant as party respondents.

Submissions/Arguments

The petitioner bank argued that the Industrial Court could not have recorded a finding of supersession without the affected persons being joined as parties.

Ratio Decidendi

A finding that certain persons were promoted in supersession of the complainant cannot be recorded in their absence, as it would affect their rights. The Industrial Court ought to have provided an opportunity to the complainant to join them as parties before recording such a finding.

Judgment Excerpts

The Industrial Court could not have recorded the aforesaid finding in the absence of the concerned persons being joined as party respondent in the original complaint. The complainant ought to have joined Shri Ganesh Kamble and Shri Sheetal Wagh as respondents in the complaint and the Industrial Court ought to have provided such opportunity.

Procedural History

The respondent filed Complaint (ULPN) No. 25 of 2004 before the Industrial Court under Section 28 read with Items 5 and 9 of Schedule IV of MRTU and PULP Act. The Industrial Court allowed the complaint on 27.08.2008. The petitioner bank filed Writ Petition No. 1446 of 2009 before the Bombay High Court, Nagpur Bench, which was admitted on 13.07.2009 with an interim stay on the direction to pay consequential benefits. The High Court disposed of the petition on 11.09.2015, quashing the Industrial Court's order and remitting the matter for fresh consideration.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Schedule IV Items 5 and 9
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High Court Bombay High Court Quashes Industrial Court Order in Promotion Dispute Due to Non-Joinder of Affected Parties. Seniority-Based Promotion Claim Fails as Persons Promoted in Supersession Were Not Impleaded as Respondents Under MRTU and PULP Act.