Bombay High Court Dismisses Employer's Petition Seeking Mandatory Deposit of VRS Benefits by Workmen Under MRTU & PULP Act. No Condition Precedent for Deposit Exists Under Section 28 of MRTU & PULP Act for Challenging Voluntary Retirement Scheme.

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

The petitioner, Saint Gobain Sekurit India Ltd., filed two writ petitions challenging the maintainability of complaints filed by respondent workmen under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU & PULP Act). The workmen had accepted a Voluntary Retirement Scheme (VRS) on 28 December 2006, receiving Rs. 4,00,000 each, but later alleged coercion and misrepresentation, seeking cancellation of the agreements and reinstatement. The petitioner argued that the workmen must deposit the VRS amount as a condition precedent for pursuing their complaints, relying on principles analogous to Section 17B of the Industrial Disputes Act. The court examined the language of Section 28 of the MRTU & PULP Act and found no such mandatory deposit requirement. It noted that the Industrial Disputes Act contains specific provisions for deposit in certain contexts, but the MRTU & PULP Act does not. The court held that imposing a deposit condition would be an unwarranted restriction on the workmen's right to access justice. The petitions were dismissed, and the trial court was directed to proceed with the complaints on merits without requiring any deposit.

Headnote

A) Industrial Law - Voluntary Retirement Scheme - Condition Precedent - Section 28 of MRTU & PULP Act - The court considered whether workmen challenging a VRS must deposit benefits received as a condition precedent. Held that there is no such mandatory requirement under the MRTU & PULP Act, unlike Section 17B of the Industrial Disputes Act. The court declined to impose a deposit condition, leaving it to the trial court's discretion. (Paras 2-6)

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Issue of Consideration

Whether it is mandatory for the Court entertaining a complaint/proceedings on behalf of the workmen calling in question the Voluntary Retirement Scheme of which they have availed some benefits, to direct the deposit of the amount received by the workman as a condition precedent for entertaining the proceedings.

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Final Decision

The court dismissed both writ petitions, holding that there is no mandatory requirement under Section 28 of the MRTU & PULP Act for workmen to deposit the amount received under a Voluntary Retirement Scheme as a condition precedent for entertaining their complaints. The trial court was directed to proceed with the complaints on merits without requiring any deposit.

Law Points

  • Voluntary Retirement Scheme
  • Condition Precedent
  • Deposit of Benefits
  • MRTU & PULP Act
  • Section 28
  • Industrial Disputes Act
  • Section 2(p)
  • Section 18(1)
  • Industrial Disputes (Bombay) Rules 1957
  • Rule 62
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Case Details

2015:BHC-AS:27855

WRIT PETITION NO. 4260 OF 2012 ALONG WITH CIVIL APPLICATION NO. 1271 OF 2015; WRIT PETITION NO. 4261 OF 2012 ALONG WITH CIVIL APPLICATION NO. 1272 OF 2015

2015-12-08

N.M. Jamdar

2015:BHC-AS:27855

Mr. K.M. Naik, senior advocate along with A.K. Gopalan and Hemant Telkar i/by Haresh Mehta & Co. for the petitioner; Ms. Jane Cox along with R.A. Amonkar for the respondents

Saint Gobain Sekurit India Ltd.

Kuyesh Durjan Yadav and Maharashtra Labour Union (in WP 4260/2012); Gurunath Annappa Mahashetty and 53 others and Maharashtra Labour Union (in WP 4261/2012)

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Nature of Litigation

Writ petitions challenging the maintainability of complaints under Section 28 of MRTU & PULP Act filed by workmen challenging a Voluntary Retirement Scheme.

Remedy Sought

Petitioner sought a direction that respondent workmen deposit the amount received under VRS as a condition precedent for entertaining their complaints.

Filing Reason

Respondent workmen filed complaints alleging that the VRS agreement was illegal, unconstitutional, and obtained by coercion and misrepresentation.

Issues

Whether it is mandatory for the Court entertaining a complaint/proceedings on behalf of the workmen calling in question the Voluntary Retirement Scheme of which they have availed some benefits, to direct the deposit of the amount received by the workman as a condition precedent for entertaining the proceedings.

Submissions/Arguments

Petitioner argued that workmen must deposit the VRS amount as a condition precedent, relying on principles analogous to Section 17B of Industrial Disputes Act. Respondent workmen contended that there is no such mandatory requirement under the MRTU & PULP Act and that imposing a deposit condition would deny them access to justice.

Ratio Decidendi

The MRTU & PULP Act does not contain any provision analogous to Section 17B of the Industrial Disputes Act requiring deposit of benefits as a condition precedent. Imposing such a condition would be an unwarranted restriction on the workmen's right to access justice under Section 28 of the Act.

Judgment Excerpts

The issue involved in both these petitions is, whether it is mandatory for the Court entertaining a complaint/proceedings on behalf of the workmen calling in question the Voluntary Retirement Scheme of which they have availed some benefits, to direct the deposit of the amount received by the workman as a condition precedent for entertaining the proceedings.

Procedural History

The respondent workmen filed complaints under Section 28 of MRTU & PULP Act before the Industrial Court. The petitioner filed writ petitions in the High Court challenging the maintainability of those complaints without deposit of VRS benefits. The High Court dismissed the petitions and directed the trial court to proceed.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28
  • Industrial Disputes Act, 1947: Section 2(p), Section 18(1), Section 17B
  • Industrial Disputes (Bombay) Rules, 1957: Rule 62
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Related Judgement
High Court Bombay High Court Dismisses Employer's Petition Seeking Mandatory Deposit of VRS Benefits by Workmen Under MRTU & PULP Act. No Condition Precedent for Deposit Exists Under Section 28 of MRTU & PULP Act for Challenging Voluntary Retirement Scheme.
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