Bombay High Court Dismisses Trade Union's Petition Challenging Rejection of Interim Relief in Transfer Dispute. Industrial Court's Refusal to Stay Transfer Orders Upheld as No Prima Facie Case of Unfair Labour Practice Established Under MRTU and PULP Act.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Engineering Workers Association, a registered trade union, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging an order dated 20th February 2016 passed by the Industrial Court, Thane. The Industrial Court had rejected the petitioner's application under Section 30(2) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act). The application sought a direction to the respondents, M/s Radium Creation Ltd. and its directors, not to give effect to transfer orders dated 19th December 2015 of certain employees and to allow them to resume work. The application was filed in a complaint under Section 28 read with Items 3, 9, and 10 of Schedule IV of the MRTU and PULP Act, alleging unfair labour practices. The petitioner union had been representing employees of the respondent company and had various pending proceedings against the company. The Industrial Court, after hearing both sides, held that the petitioner failed to establish a prima facie case, balance of convenience, or irreparable loss. The court noted that the transfer order was issued in the normal course of business and not as a punitive measure. The High Court, upon review, found no perversity or jurisdictional error in the Industrial Court's order and dismissed the writ petition, upholding the Industrial Court's discretion.

Headnote

A) Industrial Law - Interim Relief - Section 30(2) MRTU and PULP Act, 1971 - Transfer of Employees - The Industrial Court rejected the application for interim relief seeking stay of transfer orders, holding that the petitioner failed to establish a prima facie case, balance of convenience, or irreparable loss. The court noted that the transfer order was issued in the normal course of business and not as a punitive measure. (Paras 1-10)

B) Industrial Law - Unfair Labour Practice - Items 3, 9, 10 of Schedule IV of MRTU and PULP Act, 1971 - The complaint alleged that the transfer of employees was an unfair labour practice. The court held that mere pendency of industrial disputes does not bar the employer from transferring employees in the absence of mala fides or violation of standing orders. (Paras 2-8)

C) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of the Constitution of India - The High Court declined to interfere with the Industrial Court's order, finding no perversity or jurisdictional error. The court upheld the Industrial Court's discretion in refusing interim relief. (Paras 1, 10)

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Issue of Consideration

Whether the Industrial Court was justified in rejecting the application for interim relief under Section 30(2) of the MRTU and PULP Act, 1971, seeking stay of transfer orders of employees during pendency of complaint alleging unfair labour practices

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order rejecting the application for interim relief.

Law Points

  • Interim relief under Section 30(2) of MRTU and PULP Act requires strong prima facie case
  • balance of convenience
  • and irreparable loss
  • transfer order cannot be stayed merely because it is issued during pendency of industrial dispute
  • employer has right to transfer employees unless mala fide or in violation of standing orders or contract
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Case Details

2016:BHC-AS:6982

WRIT PETITION NO.2941 OF 2016

2016-03-15

R.D. DHANUKA, J.

2016:BHC-AS:6982

Ms.Nayana Buch a/w Mr.Shailesh More for the petitioner; Mr.S.K.Talsania, Senior Advocate a/w Mr.Pramod Anaokar a/w Mr.Rahul Oak for the respondents

Engineering Workers Association

M/s.Radium Creation Ltd. & Ors.

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging order of Industrial Court rejecting application for interim relief under Section 30(2) of MRTU and PULP Act.

Remedy Sought

Petitioner sought direction to respondents not to give effect to transfer order dated 19th December 2015 and to allow employees to resume work with equitable relief.

Filing Reason

Petitioner alleged that transfer of employees was an unfair labour practice under Items 3, 9, and 10 of Schedule IV of MRTU and PULP Act.

Previous Decisions

Industrial Court, Thane rejected the application for interim relief on 20th February 2016.

Issues

Whether the Industrial Court erred in rejecting the application for interim relief under Section 30(2) of MRTU and PULP Act? Whether the transfer order dated 19th December 2015 constitutes an unfair labour practice?

Submissions/Arguments

Petitioner argued that the transfer order was issued during pendency of industrial disputes and was mala fide. Respondents contended that the transfer was in the normal course of business and not punitive.

Ratio Decidendi

Interim relief under Section 30(2) of MRTU and PULP Act requires a strong prima facie case, balance of convenience in favor of the applicant, and irreparable loss. The employer's right to transfer employees in the normal course of business is not automatically an unfair labour practice merely because industrial disputes are pending.

Judgment Excerpts

By this petition filed under Articles 226 and 227 of the Constitution of India, the petitioner has impugned the order dated 20th February, 2016 passed by the Industrial Court, Thane rejecting the application filed under section 30(2) of the MRTU and PULP Act, 1971 inter alia praying for a direction to the respondents not to give effect to transfer order dated 19th December, 2015 of the employees and to allow them to resume their work with equitable relief.

Procedural History

The petitioner filed a complaint under Section 28 read with Items 3, 9, and 10 of Schedule IV of MRTU and PULP Act before the Industrial Court, Thane. Along with the complaint, an application under Section 30(2) was filed seeking interim relief. The Industrial Court rejected the application on 20th February 2016. The petitioner then filed the present writ petition under Articles 226 and 227 of the Constitution of India before the Bombay High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Section 30(2), Schedule IV Items 3, 9, 10
  • Constitution of India: Articles 226, 227
  • Trade Unions Act, 1926:
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