Case Note & Summary
The petitioners, M/s. Esdee Paints Ltd. and its directors, challenged an order dated 16.08.2016 passed by the Industrial Court, Thane, in Revision Application (ULP) No.28 of 2016. The Industrial Court had allowed the revision filed by the respondent union, Sarva Shramik Sangh, and directed the petitioners to pay Rs.10,000/- for each group of employees within one month. This direction was in connection with a domestic enquiry initiated against six workmen of the petitioner company, who were charged with various misconducts. The respondent union had filed Complaint (ULP) No.152 of 2014 under Items 1(a), (b), and (f) of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act). In the complaint, the union filed an interim application (Exh.U2) seeking various reliefs, including a direction to the employer to allow the workmen to engage an advocate of their choice and to bear the cost of such advocate's travelling and food expenses. During the proceedings, the parties reached an understanding, and a pursis was filed on 13.02.2015 recording the agreement. Clause (i) stated that the condition of signing the suspension register was withdrawn, and clause (ii) stated that the workmen could engage an advocate of their choice at their own cost. The Labour Court, by order dated 20.07.2015, dismissed the interim application. However, the Industrial Court, in revision, set aside the Labour Court's order and directed the employer to pay Rs.10,000/- per group of employees. The High Court, in its writ jurisdiction under Articles 226 and 227 of the Constitution, examined the legality of the Industrial Court's order. The High Court noted that the MRTU & PULP Act does not contain any provision that empowers the Industrial Court to direct the employer to bear the cost of the workmen's defence representative in a domestic enquiry. The High Court emphasized that the Industrial Court had exceeded its jurisdiction by imposing a financial burden on the employer without any legal basis. Furthermore, the High Court observed that the parties had already agreed through the pursis that the workmen would bear their own costs, and the Industrial Court could not override this consent. The High Court held that the Industrial Court's order was without jurisdiction and set it aside, restoring the Labour Court's order dated 20.07.2015.
Headnote
A) Industrial Law - Interim Relief - Advocate Costs in Domestic Enquiry - MRTU & PULP Act, 1971, Schedule IV Items 1(a)(b)(f) - The Industrial Court directed the employer to pay Rs.10,000/- per group of employees to bear the cost of engaging an advocate in a domestic enquiry. The High Court held that such a direction was without jurisdiction as the MRTU & PULP Act does not provide for the employer to bear the cost of the workmen's defence representative. The interim relief granted by the Industrial Court was set aside. (Paras 5-7) B) Industrial Law - Consent Terms - Binding Effect - MRTU & PULP Act, 1971 - The parties had filed a pursis recording an understanding that the workmen could engage an advocate of their choice at their own cost. The Industrial Court ignored this consent and imposed a financial burden on the employer. The High Court held that the Industrial Court could not override the consent terms and grant relief beyond what was agreed. (Paras 4-7)
Issue of Consideration
Whether the Industrial Court could direct the employer to pay Rs.10,000/- per group of employees to enable them to engage an advocate of their choice in a domestic enquiry, under the MRTU & PULP Act, 1971.
Final Decision
The High Court allowed the writ petition, set aside the order dated 16.08.2016 passed by the Industrial Court, Thane, and restored the order dated 20.07.2015 passed by the Labour Court. Rule made absolute accordingly.
Law Points
- Industrial Court cannot direct employer to bear cost of advocate for workmen in domestic enquiry
- MRTU & PULP Act does not provide for such relief
- interim relief must be based on legal provisions
- not equity.
