Bombay High Court Dismisses Employer's Petition Challenging Industrial Court's Order Setting Aside Dismissal of Employee. Retrospective Dismissal from Service Held Illegal as It Violates Principles of Natural Justice and Section 4 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

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

The petitioner, Managing Director of Parner Taluka Sahakari Sakhar Karkhana Limited, challenged the judgment and order dated 28.02.1995 passed by the Industrial Court, Ahmednagar, which allowed Revision (ULP) No.75/1992 preferred by the respondent employee. The respondent was appointed as a Supervisor in 1986. On 27.01.1987, he applied for the post of Assistant Security Officer, but one Mr. S.B. Supekar was appointed instead. The respondent confronted the Managing Director and abused him, leading to his suspension on 31.01.1987 with effect from 01.02.1987. After a domestic enquiry, he was dismissed from service by order dated 03.08.1987, made effective from 31.01.1987. The respondent filed Complaint (ULP) No.53/1987 before the Labour Court challenging his dismissal. The Labour Court dismissed the complaint. The respondent then filed Revision (ULP) No.75/1992 before the Industrial Court, which allowed the revision and set aside the dismissal, primarily on the ground that the dismissal was made effective retrospectively from 31.01.1987, which is illegal. The petitioner argued that the respondent had not specifically pleaded that the dismissal was retrospective, and therefore the Industrial Court could not have set aside the dismissal on that ground. The court held that although the respondent did not specifically plead the retrospective effect, the Labour Court had framed an issue regarding the legality and validity of the dismissal, and both parties led evidence on that issue. The Industrial Court was justified in considering the retrospective effect as part of the legality of the dismissal. The court further held that a dismissal made effective from a date prior to the order of dismissal is illegal and cannot be sustained. The petition was dismissed, and the Industrial Court's order was upheld.

Headnote

A) Industrial Law - Retrospective Dismissal - Legality - Dismissal of employee made effective from a date prior to the order of dismissal is illegal and cannot be sustained - The Industrial Court rightly set aside the dismissal on this ground even though not specifically pleaded, as the issue was framed and parties led evidence - Held that retrospective dismissal is per se illegal (Paras 5-7).

B) Industrial Law - Unfair Labour Practice - Section 4 of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The employer's act of dismissing an employee with retrospective effect amounts to an unfair labour practice - The Labour Court and Industrial Court have jurisdiction to grant relief even if the specific ground is not pleaded, provided the issue is raised and evidence is led - Held that the Industrial Court's order was just and proper (Paras 5-7).

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Issue of Consideration

Whether the Industrial Court was justified in setting aside the dismissal of the employee on the ground that the dismissal was made effective retrospectively, even though the employee had not specifically pleaded that ground.

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Final Decision

The writ petition is dismissed. The judgment and order dated 28.02.1995 passed by the Industrial Court, Ahmednagar in Revision (ULP) No.75/1992 is upheld. Rule is discharged. No order as to costs.

Law Points

  • Retrospective dismissal is illegal
  • Industrial Court can set aside dismissal without specific pleading if issue is framed
  • Domestic enquiry findings can be interfered with if perverse or violative of natural justice
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Case Details

2015 LawText (BOM) (12) 10

WRIT PETITION NO. 2007 OF 1995

2015-12-05

RAVINDRA V. GHUGE, J.

Shri R.N.Dhorde, Senior Advocate along with Shri Mobin H. Shaikh for Petitioner; Shri P.V.Barde holding for Shri T.K.Prabhakaran for Respondent

The Managing Director, Parner Taluka Sahakari Sakhar Karkhana Limited

Popat Mahipati Borkar

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Nature of Litigation

Writ petition challenging the order of the Industrial Court setting aside the dismissal of the employee.

Remedy Sought

The petitioner (employer) sought to quash the judgment and order dated 28.02.1995 of the Industrial Court, Ahmednagar, which allowed the revision filed by the respondent employee and set aside his dismissal.

Filing Reason

The petitioner was aggrieved by the Industrial Court's order setting aside the dismissal of the respondent employee on the ground of retrospective effect, which the petitioner argued was not specifically pleaded by the respondent.

Previous Decisions

The Labour Court had dismissed the respondent's complaint (ULP) No.53/1987 challenging his dismissal. The Industrial Court, in Revision (ULP) No.75/1992, allowed the revision and set aside the dismissal.

Issues

Whether the Industrial Court was justified in setting aside the dismissal of the employee on the ground that the dismissal was made effective retrospectively, even though the employee had not specifically pleaded that ground.

Submissions/Arguments

The petitioner argued that the respondent had not specifically pleaded that the dismissal order be set aside on the ground that it was made effective with retrospective effect, and therefore the Industrial Court could not have set aside the dismissal on that ground. The respondent argued that the Labour Court had framed an issue regarding the legality and validity of the dismissal, and both parties led evidence on that issue, so the Industrial Court was justified in considering the retrospective effect as part of the legality of the dismissal.

Ratio Decidendi

A dismissal made effective from a date prior to the order of dismissal is illegal and cannot be sustained. The Industrial Court was justified in setting aside the dismissal on this ground even though not specifically pleaded, as the issue was framed and parties led evidence.

Judgment Excerpts

The Industrial Court has set aside the dismissal on the ground that the dismissal was made effective retrospectively from 31.01.1987, which is illegal. A dismissal made effective from a date prior to the order of dismissal is illegal and cannot be sustained.

Procedural History

The respondent employee was dismissed on 03.08.1987 effective from 31.01.1987. He filed Complaint (ULP) No.53/1987 before the Labour Court, which was dismissed. He then filed Revision (ULP) No.75/1992 before the Industrial Court, which allowed the revision and set aside the dismissal on 28.02.1995. The petitioner filed the present writ petition on 19.07.1995, which was admitted and interim relief was refused on 20.12.2004. The writ petition was finally heard and dismissed on 05.12.2015.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 4
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