Bombay High Court Allows Employer's Petition in MRTU & PULP Act Case — Industrial Court Exceeded Jurisdiction by Directing Employer to Pay for Workmen's Defence Advocate. No Statutory Obligation on Employer to Bear Cost of Advocate for Workmen in Domestic Enquiry Under MRTU & PULP Act, 1971.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
  • 40
Judgement Image
Font size:
Print

Case Note & Summary

The petitioners, M/s. Esdee Paints Ltd. and its directors, challenged an order dated 16.08.2016 passed by the Learned Member of 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. The background of the case involves a complaint filed by the respondent union 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). The complaint arose from a departmental enquiry initiated against six workmen of the petitioner company who were charged with various misconducts. In the complaint, the union filed an interim application (Exh.U2) seeking several 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. The pursis stated that the condition of signing the suspension register was withdrawn, and the workmen could engage an advocate of their choice, but the employer would not bear the cost.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/- for each group of employees. The High Court, in its writ jurisdiction under Articles 226 and 227 of the Constitution, examined the matter. The court noted that the Industrial Court had ignored the consent terms recorded in the pursis, which clearly stated that the employer would not bear the cost. The court further held that there is no provision in the MRTU & PULP Act or any other law that obligates an employer to bear the cost of the workmen's defence advocate in a domestic enquiry. The Industrial Court had exceeded its jurisdiction by imposing such a direction. Consequently, the High Court allowed the writ petition, set aside the Industrial Court's order, and restored the Labour Court's order dated 20.07.2015.

Headnote

A) Industrial Law - Domestic Enquiry - Defence Representative - Employer's Obligation to Bear Cost - Items 1(a), (b), (f) of Schedule IV, MRTU & PULP Act, 1971 - The issue was whether the Industrial Court could direct the employer to pay Rs.10,000/- to each group of employees to engage an advocate of their choice in a domestic enquiry. The High Court held that there is no provision in the MRTU & PULP Act or any other law requiring the employer to bear the cost of the workmen's defence advocate in a domestic enquiry. The Industrial Court's order was set aside as it exceeded its jurisdiction. (Paras 5-7)

B) Industrial Law - Interim Relief - 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 but the employer would not bear the cost. The Industrial Court ignored this consent term and directed payment. The High Court held that the Industrial Court could not have passed an order contrary to the agreed terms. (Paras 4-6)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Industrial Court was justified in directing the employer to pay Rs.10,000/- to each group of employees for engaging an advocate of their choice in a domestic departmental enquiry.

Subscribe to unlock Issue of Consideration Subscribe Now

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

  • Employer not liable to bear cost of workmen's defence advocate in domestic enquiry
  • MRTU & PULP Act does not impose such obligation
  • Industrial Court exceeded jurisdiction by directing payment of advocate fees
Subscribe to unlock Law Points Subscribe Now

Case Details

2016:BHC-AS:25425

Writ Petition No.11414 of 2016

2016-10-07

R. M. Savant

2016:BHC-AS:25425

Shri. A. K. Jalisatgi i/by Shri. Ratnesh R. Mishra for the Petitioners, Shri. Ravindra Nair for the Respondent

M/s. Esdee Paints Ltd., Mr. Mahavir Dawada, Mr. Sunil Nayak

Sarva Shramik Sangh

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging an order of the Industrial Court in a revision application under the MRTU & PULP Act.

Remedy Sought

The petitioners sought to quash the Industrial Court's order dated 16.08.2016 which directed them to pay Rs.10,000/- for each group of employees to engage an advocate in a domestic enquiry.

Filing Reason

The Industrial Court allowed the revision application filed by the respondent union and set aside the Labour Court's order, directing the employer to pay for the workmen's defence advocate.

Previous Decisions

The Labour Court by order dated 20.07.2015 dismissed the interim application (Exh.U2) filed by the respondent union. The Industrial Court in Revision Application (ULP) No.28 of 2016 allowed the revision and directed payment.

Issues

Whether the Industrial Court was justified in directing the employer to pay Rs.10,000/- to each group of employees for engaging an advocate of their choice in a domestic departmental enquiry. Whether the Industrial Court could ignore the consent terms recorded in the pursis filed by the parties.

Submissions/Arguments

The petitioners argued that there is no provision in the MRTU & PULP Act or any other law requiring the employer to bear the cost of the workmen's defence advocate in a domestic enquiry. The petitioners contended that the Industrial Court ignored the consent terms recorded in the pursis dated 13.02.2015, which clearly stated that the employer would not bear the cost. The respondent union supported the Industrial Court's order, arguing that the direction was necessary to ensure a fair enquiry.

Ratio Decidendi

There is no provision in the MRTU & PULP Act or any other law that obligates an employer to bear the cost of the workmen's defence advocate in a domestic enquiry. The Industrial Court exceeded its jurisdiction by directing such payment, especially when the parties had agreed otherwise in a consent pursis.

Judgment Excerpts

There is no provision in the MRTU & PULP Act or any other law which obligates the employer to bear the cost of the workmen's defence advocate in a domestic enquiry. The Industrial Court could not have passed an order contrary to the agreed terms recorded in the pursis.

Procedural History

The respondent union filed Complaint (ULP) No.152 of 2014 before the Labour Court under Items 1(a), (b), (f) of Schedule IV of MRTU & PULP Act. An interim application Exh.U2 was filed seeking various reliefs including direction to employer to bear cost of advocate. The Labour Court dismissed the application on 20.07.2015. The respondent filed Revision Application (ULP) No.28 of 2016 before the Industrial Court, Thane, which allowed the revision on 16.08.2016 and directed payment. The petitioners challenged this order in the High Court by way of Writ Petition No.11414 of 2016.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Items 1(a), 1(b), 1(f)
  • Constitution of India: Articles 226, 227
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Appeal by Driver and Owner in Motor Accident Claim — Insurance Companies Not Entitled to Reimbursement of No Fault Liability Amount. The court held that the Tribunal erred in directing reimbursement of interim compensation ...
Related Judgement
High Court Bombay High Court Allows Employer's Petition in MRTU & PULP Act Case — Industrial Court Exceeded Jurisdiction by Directing Employer to Pay for Workmen's Defence Advocate. No Statutory Obligation on Employer to Bear Cost of Advocate for Workmen in D...