Bombay High Court Upholds Labour Court's Reinstatement Order in Industrial Dispute Case — Violation of Section 25F of Industrial Disputes Act Proved Despite Employee's Failure to Produce Documentary Evidence. Adverse Inference Drawn Against Employer for Non-Production of Nominal Muster Rolls.

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

The case involves a writ petition filed by the employer (Public Works Department) challenging the Labour Court's order of reinstatement of the employee, Maroti Amrutrao Bramhankar, with continuity of service but without backwages. The employee was terminated on 01.03.1987, and a reference was made in 1996 after a delay of about 9 years. The employee claimed he had worked continuously from 1980 to 1987 and had completed more than 240 days of service in the year preceding his termination. The Labour Court, despite the employee not producing any documentary evidence except his own testimony, drew an adverse inference against the employer for not producing the nominal muster rolls for the relevant period, which the employer's witness admitted were available at the division office. The Labour Court held that the employer violated Section 25F of the Industrial Disputes Act, 1947, and ordered reinstatement without backwages. The High Court, in its judgment dated 27.04.2017, upheld the Labour Court's order, noting that the employer's failure to produce the muster rolls despite an order of the court justified the adverse inference. The court also noted that the employee's claim of continuous service from 1980 to 1987 was sufficient to show completion of 240 days. The petition was dismissed.

Headnote

A) Industrial Law - Retrenchment - Section 25F of Industrial Disputes Act, 1947 - Violation of Pre-conditions - The Labour Court found violation of Section 25F as the employer failed to produce nominal muster rolls despite admission of their existence and possession, leading to adverse inference that the employee had completed 240 days continuous service. The Court upheld reinstatement without backwages. (Paras 1-3)

B) Evidence - Adverse Inference - Non-production of Documents - When a party in possession of best evidence fails to produce it, the court may draw an adverse inference that the evidence would have been unfavorable to that party. The employer's admission that nominal muster rolls were available but not produced justified the Labour Court's inference. (Paras 2-3)

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Issue of Consideration

Whether the Labour Court was justified in drawing an adverse inference against the employer for non-production of nominal muster rolls and in ordering reinstatement despite the employee's failure to produce documentary evidence of 240 days continuous service.

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Final Decision

The High Court dismissed the writ petition, upholding the Labour Court's order of reinstatement with continuity of service but without backwages.

Law Points

  • Burden of proof on workman to establish 240 days continuous service
  • Adverse inference drawn against employer for non-production of documents
  • Section 25F violation attracts reinstatement without backwages
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Case Details

2017 LawText (BOM) (04) 102

WRIT PETITION NO. 4568 OF 2009

2017-04-27

R. K. Deshpande

Shri S.B.Bissa, AGP for Petitioners; Shri N.R.Saboo, counsel for Respondent

The Sub Divisional Engineer, Public Works Department, Chandur Railway & Anr.

Maroti Amrutrao Bramhankar

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Nature of Litigation

Writ petition challenging Labour Court's order of reinstatement with continuity but without backwages for violation of Section 25F of Industrial Disputes Act.

Remedy Sought

Employer sought to quash the Labour Court's order directing reinstatement of the employee.

Filing Reason

Employer aggrieved by Labour Court's finding of violation of Section 25F and order of reinstatement.

Previous Decisions

Labour Court answered Reference IDA No. 372 of 1996 in the affirmative, directing reinstatement with continuity but without backwages.

Issues

Whether the Labour Court was justified in drawing an adverse inference against the employer for non-production of nominal muster rolls? Whether the employee had completed 240 days of continuous service preceding his termination?

Submissions/Arguments

Employer argued that the employee failed to produce any documentary evidence to prove 240 days continuous service, and the Labour Court erred in drawing adverse inference. Employee contended that the employer admitted existence and possession of nominal muster rolls but failed to produce them, justifying adverse inference.

Ratio Decidendi

When an employer in possession of best evidence (nominal muster rolls) fails to produce it despite court order, an adverse inference can be drawn that the evidence would have been unfavorable to the employer. The employee's oral testimony of continuous service from 1980 to 1987, coupled with the employer's failure to produce records, was sufficient to prove completion of 240 days and violation of Section 25F.

Judgment Excerpts

The Labour Court has answered Reference IDA No. 372 of 1996 in the affirmative, directing reinstatement of an employee with continuity in service, but without backwages on the proved violation of Section 25F of the Industrial Disputes Act. It has come in the evidence of Party No.1 in the form of admission that he has personally verified the Nominal Muster Rolls from 1980 to 1987 and are available at Division Office, Amravati, but the said documents not produced.

Procedural History

The employee was terminated on 01.03.1987. A reference was made in 1996 (Reference IDA No. 372 of 1996). The Labour Court passed an award directing reinstatement with continuity but without backwages. The employer filed Writ Petition No. 4568 of 2009 before the Bombay High Court, Nagpur Bench, which was dismissed on 27.04.2017.

Acts & Sections

  • Industrial Disputes Act, 1947: 25F, 25G, 25H
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