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 a transfer order dated 19th December 2015 and to allow the affected employees 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. The petitioner union represented a large number of employees of the respondent company and had been involved in various proceedings with the company. The union contended that the transfer order was mala fide and in retaliation for the union's activities. The Industrial Court, after hearing both sides, found that the union had not made out a prima facie case for interim relief. The High Court, in its judgment, noted that the transfer order was an incident of service and that the union had not demonstrated any mala fides or victimization. The court held that the balance of convenience was in favour of the employer and that no irreparable loss would be caused to the employees if the transfer was not stayed. The High Court dismissed the petition, upholding the Industrial Court's order.
Headnote
A) Industrial Law - Interim Relief - Section 30(2) MRTU and PULP Act, 1971 - Transfer of Employees - The petitioner trade union sought interim direction to restrain transfer of employees. The Industrial Court rejected the application. The High Court upheld the order, holding that no prima facie case was made out as the transfer order was not shown to be mala fide or in retaliation for union activities. Balance of convenience was in favour of the employer. (Paras 1-10)
B) Industrial Law - Unfair Labour Practice - Items 3, 9, 10 of Schedule IV of MRTU and PULP Act, 1971 - Transfer as Unfair Labour Practice - The complaint alleged that the transfer order amounted to unfair labour practice. The court held that transfer is an incident of service and unless shown to be punitive or victimizing, it does not constitute unfair labour practice. The union failed to establish any mala fides. (Paras 5-8)
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 to restrain the transfer of employees.
Final Decision
The High Court dismissed the writ petition, upholding the order of the Industrial Court 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 not per se unfair labour practice unless mala fide or victimization
- trade union cannot dictate management decisions on transfers.
Case Details
2016 LawText (BOM) (03) 53
WRIT PETITION NO.2941 OF 2016
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 the order of the Industrial Court rejecting an application for interim relief under Section 30(2) of the MRTU and PULP Act.
Remedy Sought
The petitioner sought a direction to the respondents not to give effect to the transfer order dated 19th December 2015 and to allow the employees to resume work with equitable relief.
Filing Reason
The petitioner alleged that the transfer order was mala fide and in retaliation for the union's activities, constituting an unfair labour practice under Items 3, 9, and 10 of Schedule IV of the MRTU and PULP Act.
Previous Decisions
The Industrial Court, Thane, by order dated 20th February 2016, rejected the application for interim relief.
Issues
Whether the Industrial Court erred in rejecting the application for interim relief under Section 30(2) of the MRTU and PULP Act.
Whether the transfer order dated 19th December 2015 constituted an unfair labour practice.
Submissions/Arguments
The petitioner argued that the transfer order was mala fide and in retaliation for the union's activities, and that the Industrial Court ought to have granted interim relief to protect the employees.
The respondents contended that the transfer was a routine management decision and that the union had not made out a prima facie case for interim relief.
Ratio Decidendi
The court held that for grant of interim relief under Section 30(2) of the MRTU and PULP Act, the applicant must establish a strong prima facie case, balance of convenience in its favour, and irreparable loss. The union failed to show that the transfer order was mala fide or victimizing, and therefore no interim relief could be granted.
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 the 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
- Trade Unions Act, 1926:
- Constitution of India: Articles 226, 227
