Bombay High Court Upholds Reinstatement of Employee Who Resigned Under Mistake of Fact in MRTU & PULP Act Case. Employer's Failure to Disclose Circular Allowing Withdrawal of Resignation Constitutes Unfair Labour Practice Under Item 1(a) and (b) of Schedule IV.

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

The petitioner, Maharashtra State Road Transport Corporation, challenged the judgments of the Labour Court and Industrial Court which allowed the complaint filed by the respondent, Arjun Thakur, a former driver. The respondent had resigned on 01/02/1999 due to ill health, but later sought to withdraw his resignation, claiming he was unaware of a circular dated 04/04/1981 that permitted withdrawal of resignation within a specified period. The Labour Court found that the resignation was not voluntary and that the Corporation had engaged in unfair labour practice under Item 1(a) and (b) of Schedule IV of the MRTU & PULP Act. The Industrial Court partly allowed the revision, modifying the relief to reinstatement as a peon with continuity of service but without full back wages. The High Court, after hearing both sides, upheld the finding of unfair labour practice, noting that the respondent had resigned under a mistake of fact and the Corporation failed to inform him of the circular. The High Court modified the Industrial Court's order to grant 50% back wages from the date of resignation till reinstatement, while confirming the reinstatement as a peon with continuity of service. The petition was disposed of accordingly.

Headnote

A) Industrial Law - Unfair Labour Practice - Resignation under Mistake of Fact - Item 1(a) and (b) of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) - The respondent, a driver, resigned due to ill health but was unaware of the employer's circular allowing withdrawal of resignation within a specified period. The employer did not inform him of this circular. The Labour Court and Industrial Court held that the resignation was not voluntary and the employer's conduct amounted to unfair labour practice. The High Court upheld the finding, directing reinstatement with continuity of service but modifying back wages to 50% from the date of resignation till reinstatement. (Paras 1-10)

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Issue of Consideration

Whether the resignation submitted by the respondent was voluntary or under a mistake of fact, and whether the employer's failure to inform the employee of the circular permitting withdrawal of resignation constitutes unfair labour practice.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order of reinstatement as peon with continuity of service, but modified the order to grant 50% back wages from the date of resignation till reinstatement.

Law Points

  • Unfair labour practice
  • Resignation
  • Mistake of fact
  • Withdrawal of resignation
  • Reinstatement
  • Continuity of service
  • Item 1(a) and (b) of Schedule IV of MRTU & PULP Act
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Case Details

2016 LawText (BOM) (07) 11

Writ Petition No.2050 of 2010

2016-07-29

RAVINDRA V. GHUGE, J.

Mrs.Ranjana Reddy for the petitioner, Mr.S.C.Swamy h/f Mr.V.D.Gunale for the respondent

Divisional Controller, Maharashtra State Road Transport Corporation, Latur

Arjun S/o Shripati Thakur

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Nature of Litigation

Writ petition challenging the judgments of the Labour Court and Industrial Court in a complaint alleging unfair labour practice.

Remedy Sought

The petitioner/Corporation sought to quash the orders of the Labour Court and Industrial Court directing reinstatement and back wages.

Filing Reason

The respondent resigned due to ill health but later sought withdrawal, claiming he was unaware of the circular permitting withdrawal. The Corporation did not allow withdrawal.

Previous Decisions

Labour Court allowed the complaint on 24/07/2008, directing reinstatement as driver with full back wages. Industrial Court partly allowed revision on 14/01/2010, modifying reinstatement as peon with continuity but without back wages.

Issues

Whether the resignation was voluntary or under a mistake of fact. Whether the employer's failure to inform the employee of the circular permitting withdrawal constitutes unfair labour practice.

Submissions/Arguments

Petitioner argued that the resignation was voluntary and the respondent was aware of the circular. Respondent argued that he resigned due to ill health and was not informed of the circular, thus the resignation was under a mistake of fact.

Ratio Decidendi

A resignation submitted under a mistake of fact, where the employer fails to disclose a beneficial circular allowing withdrawal, constitutes unfair labour practice under Item 1(a) and (b) of Schedule IV of the MRTU & PULP Act. The employee is entitled to reinstatement with continuity of service and partial back wages.

Judgment Excerpts

The petitioner/Corporation is aggrieved by the judgment of the Labour Court dated 24/07/2008... The Industrial Court partly allowed the revision... The respondent resigned due to ill health and was not informed of the circular.

Procedural History

The respondent filed Complaint (ULP) No.31/2003 before the Labour Court, which was allowed on 24/07/2008. The petitioner filed Revision (ULP) No.21/2008 before the Industrial Court, which was partly allowed on 14/01/2010. The petitioner then filed the present writ petition before the High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act): Item 1(a) and (b) of Schedule IV
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