Case Note & Summary
The petitioner, M/s. Pravi Auto Swing Pvt Ltd., challenged the judgment and order dated 21-3-2016 passed by the Learned Member of the Industrial Court in Complaint ULP No.54 of 2005. The Industrial Court had allowed the complaint filed by the respondents (employees) and declared that the petitioner had engaged in unfair labour practice under Item 9 of Schedule IV of the MRTU and PULP Act, 1971. The Industrial Court directed the petitioner to pay the remaining subsistence allowance at 75% for the period between 90 days to 180 days and thereafter at 100% for the period beyond 180 days. The respondents were employees of the petitioner. Due to certain incidents in the factory premises, charge sheets were issued to each respondent alleging misconduct. The petitioner had filed Complaint ULP No.59 of 2004. The High Court, in its oral judgment, noted that the nature of the final directions to be issued did not require burdening the order with unnecessary details. The court observed that subsistence allowance is payable only during the period of suspension and not after the dismissal of the employee. Consequently, the High Court allowed the writ petition and set aside the Industrial Court's order directing payment of subsistence allowance beyond 180 days. The court held that the Industrial Court's direction to pay full subsistence allowance beyond 180 days was erroneous and not sustainable in law.
Headnote
A) Industrial Law - Subsistence Allowance - Payment During Suspension - The Industrial Court directed the employer to pay subsistence allowance at 75% for the period between 90 to 180 days and at 100% for the period beyond 180 days - The High Court held that subsistence allowance is payable only during the period of suspension and not after the dismissal of the employee - The direction to pay full subsistence allowance beyond 180 days was set aside as it was not in accordance with law (Paras 1-3).
Issue of Consideration
Whether the Industrial Court was justified in directing payment of subsistence allowance at 75% for 90-180 days and 100% beyond 180 days, and whether such direction is sustainable in law.
Final Decision
The High Court allowed the writ petition and set aside the Industrial Court's order directing payment of subsistence allowance beyond 180 days.
Law Points
- Subsistence allowance payable only during suspension period
- not after dismissal
- Item 9 Schedule IV MRTU and PULP Act 1971
- Industrial Court's direction to pay full subsistence allowance beyond 180 days set aside
