High Court of Bombay Quashes Labour Court and Industrial Court Orders Dismissing Unfair Labour Practice Complaints; Directs Reinstatement Due to Victimization and Discriminatory Treatment. Termination of Project Affected Persons Found Illegal Under Items (a), (b) and (d) of Schedule IV of MRTU and PULP Act for Retrospective Effect and Failure to Reconsider Despite Production of Competent Authority Certificate.

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

The writ petitions arose from the dismissal of complaints under the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act) by the Labour Court and the Industrial Court. The petitioners, whose family lands were acquired for the Gosikhurd irrigation project of the Vidarbha Irrigation Development Corporation (VIDC), were appointed as Junior Clerks on 2 July 1996 on a temporary basis for six months as project-affected persons. Their appointment orders required production of a project-affected person certificate from the District Collector/District Rehabilitation Officer. However, the Superintending Engineer relaxed this condition and permitted them to join on the strength of a certificate from the Executive Engineer. After working from 2 July 1996 to 21 January 1997, the petitioners were terminated with retrospective effect from 3 January 1996 and 10 January 1996, ostensibly because their tenure had expired, but actually because they had not produced the certificate from the competent authority. The petitioners later obtained the requisite certificates in 1998 and 1999, but the respondents refused to reinstate them, although other similarly situated employees were reinstated upon production of such certificates. The Labour Court and the Industrial Court dismissed the petitioners' complaints, holding that the termination was in terms of the appointment orders and did not amount to retrenchment under Section 2(oo) of the Industrial Disputes Act. On writ petitions, the High Court observed that the termination was illegal because it was retrospective in operation and the real reason was non-production of the certificate. The Court found that the termination attracted the provisions of Items (a), (b) and (d) of Schedule IV of the MRTU and PULP Act, as it was not in good faith, was carried out with undue haste, and was discriminatory. The Court noted that the respondents' witness admitted that if the certificates had been produced at the time of appointment, the petitioners would have been appointed on a permanent basis, and that other employees were reinstated upon producing the certificates. The Court held that the denial of the same treatment to the petitioners constituted victimization. Accordingly, the High Court allowed the writ petitions, set aside the orders of the Labour Court and Industrial Court, declared the termination illegal, and directed reinstatement of the petitioners with continuity of service and back wages.

Headnote

A) Labour Law - Unfair Labour Practice - Termination in accordance with appointment order - Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971, Schedule IV Items (a), (b), (d) - The termination order dated 21.01.1997 was with retrospective effect and the real reason was non-production of certificate, not expiry of term. Held: The termination attracted the provisions of Items (a), (b) and (d) of Schedule IV, amounting to victimization and discriminatory treatment (Paras 9-10).

B) Labour Law - Employment of Project Affected Persons - Production of Certificate from Competent Authority - Government Resolution dated 18.06.1990 - The requirement of certificate from District Collector was relaxed by Superintending Engineer's letter and appointment was made on basis of Executive Engineer's certificate. Later production of certificate from competent authority entitled petitioners to regularization, as was done for similarly situated persons, and denial amounted to unfair labour practice (Paras 5-7).

C) Labour Law - Unfair Labour Practice - Discriminatory Treatment - Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971, Schedule IV Item (d) - The respondents reinstated other similarly situated employees upon production of certificate but denied the same benefit to petitioners, which constituted victimization (Paras 7-9).

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Issue of Consideration

Whether the termination of the petitioners was illegal and attracted the provisions of Items (a), (b) and (c) of Schedule IV of the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971.

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Final Decision

The High Court allowed the writ petitions, set aside the orders of the Labour Court and Industrial Court, held the termination illegal and amounting to unfair labour practice under Items (a), (b) and (d) of Schedule IV of MRTU and PULP Act, and directed reinstatement with continuity of service and back wages.

Law Points

  • Termination with retrospective effect is illegal
  • non-production of certificate from competent authority does not justify termination if requirement was relaxed and certificate later produced
  • similarly situated employees must be treated equally
  • denial of reinstatement amounts to victimization
  • termination in colourable exercise of powers attracts unfair labour practice provisions.
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Case Details

2017 LawText (BOM) (04) 148

Writ Petition Nos. 2422 of 2009 and 2428 of 2009

2017-04-13

R. K. Deshpande

A.R. Patil, S.B. Bissa, P.B. Patil

Waman Vithobaji Bhadade, Duryodhan Kashiram Raghorte

State of Maharashtra, Department of Irrigation, Superintending Engineer, Irrigation Circle, Gosikhurd Project Circle, Executive Engineer, Gosikhurd Right Bank Canal, Division No.1, Sub Divisional Officer, Gosikhurd Right Bank Canal, Sub Division No.9, Vidarbha Pat Bandhare Vikas Mahamandal

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Nature of Litigation

Complaints under the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 challenging termination from service as project affected persons.

Remedy Sought

Petitioners sought reinstatement, continuity of service, and back wages.

Filing Reason

Termination on ground of expiry of appointment period, but real reason was non-production of certificate from competent authority; petitioners later produced certificate but were not reinstated unlike similarly situated persons.

Previous Decisions

Labour Court dismissed complaints on 24.01.2008; Industrial Court confirmed on 09.01.2009.

Issues

Whether the termination of the petitioners was illegal and attracted the provisions of Items (a), (b) and (c) of Schedule IV of MRTU and PULP Act. Whether the requirement of producing a certificate from the District Collector/District Rehabilitation Officer was curable and whether the subsequent production entitled petitioners to reinstatement. Whether the denial of reinstatement to petitioners while granting it to similarly situated persons amounted to discriminatory treatment and victimization.

Submissions/Arguments

Petitioners argued that termination was illegal, they were project affected persons, produced certificates from competent authority later, and similarly situated employees were reinstated. Respondents argued that termination was in terms of appointment order, petitioners failed to produce required certificate at time of appointment, and thus not entitled to continue.

Ratio Decidendi

Termination of a project affected person for non-production of a certificate from the competent authority, where the requirement was relaxed at the time of appointment and the certificate was produced later, and where similarly situated persons were reinstated upon production of such certificate, constitutes an unfair labour practice; discrimination and victimization are established.

Judgment Excerpts

The terminations have been effected by an order dated 21.01.1997 with retrospective effect i.e. 03.01.1996 and 10.01.1996 which by itself is illegal. The terminations attracted the provisions of clauses (a), (b) and (d) of Item of of Schedule IV of MRTU and PULP Act. The termination was not in good faith, but with undue haste and in colourable exercise of powers for the false reasons. The termination was discriminatory and resulted in victimization of the petitioners.

Procedural History

Petitioners appointed on 02.07.1996; terminated on 21.01.1997; filed Complaint ULPA Nos. 158/1997 and 159/1997 before Labour Court, Bhandara; Labour Court dismissed on 24.01.2008; Revisions filed before Industrial Court, dismissed on 09.01.2009; Writ Petitions filed in High Court, admitted on 09.10.2010; final hearing and judgment on 13.04.2017.

Acts & Sections

  • Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Items (a), (b), (c), (d)
  • Industrial Disputes Act, 1947: Section 2(oo)
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