Case Note & Summary
The petitioner, Maharashtra Jeevan Pradhikaran, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging an order dated 28th July 2015 passed by the learned Member, Industrial Court, Pune. The Industrial Court had allowed the complaint filed by the respondent, Mr. Adinath Devappa Magdum, under Items 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act), quashing a show cause notice dated 30th November 2012 issued by the petitioner. The respondent was appointed as a Tracer with the petitioner in 1985. In 1987, due to a bona fide mistake by the petitioner in applying Regulations 8(C) and (D), the respondent and three other Tracers were exempted from passing the departmental examination. Based on this exemption, the respondent was promoted to Civil Engineer Assistant in 2001. In 2012, the petitioner discovered the mistake and issued a show cause notice proposing to demote the respondent and recover the differential pay. The respondent challenged the notice before the Industrial Court, which quashed it and restrained recovery. The High Court, after hearing both sides, dismissed the writ petition, holding that the Industrial Court's order was correct and that recovery after such a long lapse of time, when the employee was not at fault, would be unjust and amount to an unfair labour practice.
Headnote
A) Industrial Law - Unfair Labour Practice - Items 9 and 10 of Schedule IV of MRTU & PULP Act - Recovery of Excess Payment - Employer issued show cause notice proposing to demote and recover differential pay from employee who was granted exemption from departmental examination and promoted due to employer's mistake 25 years ago - Industrial Court quashed notice and restrained recovery - Held that recovery after such long lapse of time when employee was not at fault amounts to unfair labour practice (Paras 1-5).
Issue of Consideration
Whether the Industrial Court was justified in quashing the show cause notice and restraining recovery of differential pay from the respondent employee, who was granted exemption from departmental examination and promoted due to a bona fide mistake of the employer, after a lapse of about 25 years.
Final Decision
The High Court dismissed the writ petition, upholding the Industrial Court's order dated 28th July 2015, which quashed the show cause notice dated 30th November 2012 and restrained the petitioner from making any recovery pursuant to the said notice.
Law Points
- Unfair Labour Practice
- Recovery of Excess Payment
- Mistake of Employer
- Delay and Laches
- Estoppel
- Items 9 and 10 of Schedule IV of MRTU & PULP Act
Case Details
2016 LawText (BOM) (03) 47
Writ Petition No. 137 of 2016
Ms. Neeta Karnik for the Petitioner, Mr. Vikas H. Sekdar for the Respondent
Maharashtra Jeevan Pradhikaran
Mr. Adinath Devappa Magdum
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging an order of the Industrial Court, Pune, which quashed a show cause notice and restrained recovery of differential pay from the respondent employee.
Remedy Sought
The petitioner sought to set aside the Industrial Court's order dated 28th July 2015 and uphold the show cause notice dated 30th November 2012.
Filing Reason
The petitioner issued a show cause notice proposing to demote the respondent and recover differential pay due to a mistake in granting exemption from departmental examination 25 years ago.
Previous Decisions
The Industrial Court, Pune, by order dated 28th July 2015, allowed the respondent's complaint, quashed the notice dated 30th November 2012, and restrained the petitioner from making any recovery pursuant to the said notice.
Issues
Whether the Industrial Court was justified in quashing the show cause notice and restraining recovery of differential pay from the respondent employee, who was granted exemption from departmental examination and promoted due to a bona fide mistake of the employer, after a lapse of about 25 years.
Submissions/Arguments
Ms. Karnik, learned counsel for the petitioner, submitted that the respondent had not joined the petitioner before the date of commencement of the... (incomplete in text).
Mr. Sekdar, learned counsel for the respondent, supported the Industrial Court's order.
Ratio Decidendi
Recovery of excess payment made due to employer's mistake after a long lapse of time, when the employee was not at fault and had no role in the mistake, would be unjust and amounts to an unfair labour practice under Items 9 and 10 of Schedule IV of the MRTU & PULP Act.
Judgment Excerpts
By this writ petition filed under under Articles 226 and 227 of the Constitution of India the petitioner has impugned the order dated 28th July, 2015 passed by the learned Member, Industrial Court, Pune thereby quashing and setting aside the impugned notice dated 30th November, 2012 and restraining the petitioner herein from making any recovery pursuant to the said impugned notice issued by the petitioner.
It is the case of the petitioner that on 18th December, 2012, the higher officer of the petitioner noticed the said mistake of granting exemption to the respondent and other three Tracers.
Procedural History
The respondent was appointed as Tracer in 1985. In 1987, he was exempted from departmental examination due to employer's mistake. He was promoted in 2001. In 2012, the employer issued a show cause notice proposing demotion and recovery. The respondent filed a complaint under MRTU & PULP Act before the Industrial Court, Pune, which allowed the complaint on 28th July 2015. The petitioner filed the present writ petition in the High Court, which was dismissed on 7th March 2016.
Acts & Sections
- Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971: Items 9 and 10 of Schedule IV
- Constitution of India: Articles 226 and 227
