Bombay High Court Allows MSRTC's Petition Against Labour Court Order Granting Benefits to Misappropriating Employee. Court holds that without a finding of unfair labour practice under MRTU & PULP Act, 1971 or Industrial Disputes Act, 1947, no relief can be granted on sympathy.

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

The Maharashtra State Road Transport Corporation (MSRTC) challenged the judgment of the Labour Court dated 20.8.1996 and the Industrial Court dated 13.12.1996. The deceased employee, Baburao Raoji Shinde, had filed Complaint (ULP) No.40 of 1995 before the Labour Court challenging his domestic enquiry, findings of the enquiry officer, and the proportionality of punishment for misappropriation. The Labour Court held the enquiry to be fair and proper and concluded that Item 1(g) of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) did not attract. Despite this, the Labour Court granted all terminal benefits to the deceased employee. The Industrial Court dismissed the Corporation's revision and directed implementation of the Labour Court's order. The High Court admitted the writ petition on 7.9.2000 and declined interim relief. After hearing arguments, the High Court found that the Labour Court's order was perverse and based on undue sympathy. The High Court held that unless the court declares that the respondent has committed unfair labour practice under any item of the three Schedules to the MRTU & PULP Act or under Schedule V of the Industrial Disputes Act, 1947, no relief can be granted. The High Court quashed the orders of the Labour Court and Industrial Court, allowing the writ petition.

Headnote

A) Labour Law - Unfair Labour Practice - Requirement of Declaration - Without a finding that the employer has committed unfair labour practice under any item of the Schedules to the MRTU & PULP Act, 1971 or Schedule V of the Industrial Disputes Act, 1947, no relief can be granted to the complainant on misplaced sympathy. The Labour Court erred in granting terminal benefits after concluding that the complaint did not deserve to be entertained. (Paras 1, 5, 7)

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Issue of Consideration

Whether the Labour Court could grant terminal benefits to an employee after holding that no unfair labour practice was established under the MRTU & PULP Act, 1971 or the Industrial Disputes Act, 1947.

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Final Decision

The High Court allowed the writ petition, quashing the judgment of the Labour Court dated 20.8.1996 and the judgment of the Industrial Court dated 13.12.1996.

Law Points

  • Unfair labour practice must be proved for relief
  • No relief on sympathy without legal finding
  • Labour Court cannot grant benefits after holding complaint not maintainable
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Case Details

2017 LawText (BOM) (02) 23

WRIT PETITION NO. 4176 OF 1997

2017-02-22

RAVINDRA V. GHUGE, J.

Shri Manoj Shinde a/w Shri M.K.Goyanka for Petitioner, Shri V.B.Patil for Respondents 1-(b), (c) & (e)

Maharashtra State Road Transport Corporation, through its Divisional Controller, Jalgaon

Baburao Raoji Shinde, deceased, Through L.Rs. :- 1(a) Subhadra Baburao Shinde, 1(b) Sunil Baburao Shinde, 1(c) Pramod Baburao Shinde, 1(d) Pratibha Baburao Shinde, 1(e) Ujwala Baburao Shinde

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Nature of Litigation

Writ petition challenging Labour Court and Industrial Court orders granting terminal benefits to an employee found guilty of misappropriation despite no finding of unfair labour practice.

Remedy Sought

Petitioner (MSRTC) sought quashing of Labour Court order dated 20.8.1996 and Industrial Court order dated 13.12.1996.

Filing Reason

The Labour Court granted terminal benefits to the deceased employee after holding that the complaint did not deserve to be entertained and that no unfair labour practice was established.

Previous Decisions

Labour Court order dated 20.8.1996 in Complaint (ULP) No.40 of 1995 granted terminal benefits; Industrial Court order dated 13.12.1996 in Revision (ULP) No.165 of 1996 rejected the Corporation's revision and directed implementation.

Issues

Whether the Labour Court could grant terminal benefits after holding that no unfair labour practice was established under the MRTU & PULP Act or Industrial Disputes Act. Whether the Industrial Court erred in upholding the Labour Court's order.

Submissions/Arguments

Petitioner argued that the Labour Court's order was perverse and based on undue sympathy, as it granted benefits despite finding no unfair labour practice. Respondents argued in support of the Labour Court's order.

Ratio Decidendi

Unless the court declares that the respondent has committed unfair labour practice under any item of the three Schedules to the MRTU & PULP Act, 1971 or under Schedule V of the Industrial Disputes Act, 1947, no relief can be granted to the complainant on misplaced sympathy.

Judgment Excerpts

Unless the Court declares that the respondent has committed unfair labour practice under any item of the three Schedules to the said Act or under Schedule V of the Industrial Disputes Act, 1947, no relief can be granted to the complainant on misplaced sympathy, is the view taken in this judgment. I find that this case is a glaring example of undue sympathy having been shown by the Labour Court and the Industrial Court having failed to notice such perversity.

Procedural History

The deceased employee filed Complaint (ULP) No.40 of 1995 before the Labour Court challenging his enquiry and punishment. The Labour Court held the enquiry fair and proper but granted terminal benefits on 20.8.1996. The Corporation filed Revision (ULP) No.165 of 1996 before the Industrial Court, which was dismissed on 13.12.1996. The Corporation then filed Writ Petition No.4176 of 1997 before the Bombay High Court, which was admitted on 7.9.2000 and interim relief was declined. The High Court heard the matter and delivered judgment on 22.2.2017.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Item 1(g)
  • Industrial Disputes Act, 1947: Schedule V
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