High Court of Bombay Allows Writ Petitions Challenging Labour Court Awards Dismissing References Without Evidence; Remands Matters for Fresh Enquiry into Employment Guarantee Scheme Worker Status. Labour Court Erred in Treating Question of EGS Status as Pure Law Point, Directs Evidence to Determine Whether Petitioners Were Mustering Assistants or EGS Labourers Under Industrial Disputes Act, 1947.

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

These were two writ petitions filed by Mustering Assistants working under the Employment Guarantee Scheme (EGS) challenging the Labour Court awards that had rejected their references without trial. The petitioners were initially deployed under EGS for maintaining records and did not admit in their statements of claim that they were EGS labourers. The respondent State took a stand that they were EGS workers and thus the references were not maintainable. The Labour Court, without permitting the workmen to lead any oral evidence, disposed of the references on the ground that the workers were admittedly EGS workers, a finding not borne out by the record. The High Court observed that whether a claimant is a labourer under EGS or a Mustering Assistant is a mixed question of fact and law. The employer must lead evidence to establish EGS status through registers, payment records, cards, etc. Merely because a defence is raised that the worker is an EGS worker does not absolve the Labour Court from conducting a full trial. Once a reference is made under the Industrial Disputes Act, 1947, the Labour Court must follow the procedure on merits unless it is established by evidence on a preliminary issue that the claimant is not a workman under Section 2(s). The High Court set aside the impugned awards and remanded the references to the First Labour Court, Ahmednagar, with directions to permit both sides to lead evidence, consider a Government Resolution dated 01.12.1995 and the scheme accepted by the Supreme Court in Civil Appeal No.15339 of 1996, and also consider two cited judgments. The Labour Court was directed to decide the references expeditiously by 28th February, 2019. The writ petitions were allowed and rule was made absolute.

Headnote

A) Labour Law - Industrial Disputes Act, 1947 - Reference Procedure - Evidence - Industrial Disputes Act, 1947, Section 2(s) - Labour Court is obliged to permit parties to lead oral and documentary evidence to decide a reference on merits unless the second party is not a workman under Section 2(s) and that is established by evidence on a preliminary issue - Held that the Labour Court erred in disposing of the references on a law point without evidence; references remitted for fresh decision with directions to allow evidence (Paras 3-7).

B) Evidence - Burden of Proof - Employment Guarantee Scheme - Status of Worker - Industrial Disputes Act, 1947, Section 2(s) - Where a worker disputes being an EGS labourer, the employer must lead evidence to establish EGS status, such as register entries, revenue officer payments, EGS card, vouchers etc. - Held that merely a defence that the worker is an EGS worker is insufficient; it is a mixed question of fact and law, and the employer bears the burden to prove EGS induction (Para 4).

C) Administrative Law - Government Resolution and Scheme - Consideration of Scheme and Precedents - Industrial Disputes Act, 1947, Section 2(s) - Directed the Labour Court to consider the Government Resolution dated 01.12.1995 and the scheme accepted by the Supreme Court in Civil Appeal No.15339 of 1996 (order dated 02.12.1996), along with the decisions in C.E.O., Zilla Parishad, Ahmednagar v. Daulat Narsingrao Deshmukh, (2001)2 Mh.L.J. 543 and Shri Ramchandra Kondiba Mahajan v. State of Maharashtra, W.P. No.2946 of 1997 (Bom) - Held that these materials are relevant for deciding the references (Paras 7(C)-7(D)).

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Issue of Consideration

Whether the Labour Court erred in disposing of the references without allowing oral evidence when the workmen did not admit being Employment Guarantee Scheme workers; Whether the determination of a worker's status as an EGS labourer or Mustering Assistant is a mixed question of fact and law requiring evidence.

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Final Decision

Both the impugned awards are set aside to the extent of these petitioners. The reference cases are remitted to the First Labour Court, Ahmednagar, with directions: (A) parties to appear on 21.06.2018; (B) both sides permitted to lead oral and documentary evidence; (C) Labour Court to consider Government Resolution dated 01.12.1995 and the scheme accepted by the Supreme Court in Civil Appeal No.15339 of 1996; (D) Labour Court to consider decisions in C.E.O., Zilla Parishad, Ahmednagar v. Daulat Narsingrao Deshmukh, (2001)2 Mh.L.J. 543 and Shri Ramchandra Kondiba Mahajan v. State of Maharashtra, W.P. No.2946 of 1997 (Bom); (E) decide expeditiously on or before 28.02.2019. Writ petitions allowed, rule made absolute.

Law Points

  • Industrial Disputes Act
  • 1947
  • Reference Procedure
  • Requirement of evidence
  • Determination of employment status under Employment Guarantee Scheme
  • Mixed question of fact and law
  • Burden of proof on employer
  • Remand for fresh consideration
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Case Details

2018 LawText (BOM) (05) 8

WRIT PETITION NO.1192 OF 2005 and WRIT PETITION NO.1264 OF 2005

2018-05-10

Ravindra V. Ghuge

Pradeep Shahane for petitioners, T.B. Bhosale for respondent no.1, S.P. Sonpawale, AGP for respondent nos.2 and 3

Ravindra Prabhakarrao Bramhane, Nilkanth Ramchandra Sonawane

The Executive Engineer (E.G.S.) Minor Irrigation Division II, Gulewadi, Sangamner, Dist. Ahmednagar; The Collector, Collectorate, Ahmednagar; The State of Maharashtra through Principal Secretary, General Administration Department, Mantralaya, Mumbai

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Nature of Litigation

Writ petitions challenging Labour Court awards in industrial disputes regarding employment status under Employment Guarantee Scheme.

Remedy Sought

Petitioners sought to set aside Labour Court awards dismissing their reference cases and to obtain a determination of their employment rights with necessary benefits.

Filing Reason

The Labour Court dismissed their reference cases without permitting evidence, erroneously treating the question of their status as EGS workers as a pure question of law.

Previous Decisions

Labour Court awards in Reference (IDA) No.90 of 1993 dated 25.07.2000 and Reference (IDA) No.234 of 1994 dated 28.06.2000 rejecting the references.

Issues

Whether the Labour Court erred in disposing of the references without allowing oral evidence when the workmen did not admit being EGS workers. Whether the determination of a worker's status as an EGS labourer or Mustering Assistant is a mixed question of fact and law requiring evidence.

Submissions/Arguments

Respondent State argued that the impugned awards were correct and the petitions should be dismissed with heavy costs. Petitioners argued that the Labour Court prematurely dismissed their references on a supposed legal point without giving them an opportunity to lead evidence.

Ratio Decidendi

When a reference under the Industrial Disputes Act, 1947 involves a dispute about whether a worker is an EGS labourer or a Mustering Assistant and the worker does not admit being an EGS worker, the Labour Court must permit parties to lead oral and documentary evidence; the question is a mixed one of fact and law. A mere defence by the employer that the worker is an EGS worker is insufficient; the employer must establish such status through evidence. The Labour Court cannot dispose of the reference on a preliminary legal point without evidence unless it is proved that the worker is not a workman under Section 2(s) of the Act.

Judgment Excerpts

In my view, whether a claimant before the Labour Court/Industrial Court or Tribunal can be said to be a labourer under the E.G.S. or a Mustering Assistant working for E.G.S. establishment, is a mixed question of facts and law, because in every matter of such a nature, the respondent takes a stand in the written statement that the claimant is an E.G.S. worker and the claim is untenable. Merely because a defence is taken that the claim is of an E.G.S. worker, will not be sufficient for disposing of the claim of the worker. Once a Reference case is made to the Labour Court by the appropriate Government under the Industrial Disputes Act, 1947, the Labour Court can dispose of the Reference case, if the parties have arrived at settlement terms and if not, the Labour Court has to answer the Reference case by following the entire procedure laid down in law, on its merits, which presupposes that the parties must be permitted to lead oral and documentary evidence.

Procedural History

The workmen initially filed statements of claim before the Labour Court under the Industrial Disputes Act, 1947. The appropriate Government made References (IDA) No.90 of 1993 and No.234 of 1994. The Labour Court, without permitting the workmen to lead oral evidence, delivered awards on 25.07.2000 and 28.06.2000 dismissing the references on the ground that the workers were EGS labourers. Aggrieved, the workmen filed the present writ petitions challenging those awards. The High Court heard the petitions together and by this judgment set aside the awards and remitted the references for fresh decision.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 2(s)
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