Bombay High Court Allows Petition Challenging Interim Relief Extending Settlement Benefits to Non-Signatory Workmen. Industrial Tribunal's Order Quashed for Lack of Jurisdiction Under Section 10 of Industrial Disputes Act, 1947.

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

The petitioner, Maharashtra Girls Education Society, a society registered under the Societies Registration Act, 1860, engaged in imparting education to female students, challenged an order passed by the Industrial Tribunal at Pune on an application for interim relief (Ex.U4) in a reference made under Section 10 read with Section 12(5) of the Industrial Disputes Act, 1947. The respondent, Maharashtra Karmachari Sanghatana, a union registered under the Trade Unions Act, claimed to represent non-teaching staff employed at various educational institutions of the petitioner society. The union had submitted a charter of demands concerning service conditions and monetary benefits, including permanency of posts, promotions, uniforms, allowances, leaves, holidays, service book, wage slip, bonus, time-scale promotions, compassionate appointments, medical facilities, and an interim wage rise. After failure of conciliation, the demands were referred to the Tribunal. The union contended that the society had given a wage rise to some workers as per a settlement arrived at with a group of fifty-five out of hundred and eleven workmen. The union sought interim relief extending the benefits of that settlement to all workmen. The Industrial Tribunal allowed the application and directed the society to extend the benefits of the settlement to all workmen on the same terms and conditions as interim relief. The society challenged this order in the High Court. The High Court held that the Industrial Tribunal had exceeded its jurisdiction in granting such interim relief. The court observed that the Tribunal's power to grant interim relief is ancillary to its main jurisdiction and cannot be exercised in a manner that effectively decides the main reference or grants the final relief sought. The settlement in question was not a settlement under Section 18(3) of the Industrial Disputes Act, as it was not arrived at in the course of conciliation proceedings, and thus bound only the parties to it. The Tribunal failed to consider whether the union had a prima facie case and whether the balance of convenience favored granting interim relief. The High Court allowed the petition, set aside the impugned order, and directed the Tribunal to decide the reference expeditiously.

Headnote

A) Industrial Law - Interim Relief - Jurisdiction of Industrial Tribunal - Section 10, Industrial Disputes Act, 1947 - The Industrial Tribunal cannot grant interim relief that effectively decides the main reference or grants the final relief sought. The Tribunal's power is limited to preserving the subject matter or preventing irreparable injury pending final adjudication. In this case, the Tribunal extended the benefits of a settlement made with 55 workmen to all 111 workmen, which amounted to granting the final relief of wage rise and other benefits, exceeding its jurisdiction. (Paras 1-10)

B) Industrial Law - Settlement - Binding Effect - Section 2(p), Section 18(3), Industrial Disputes Act, 1947 - A settlement under Section 2(p) binds only the parties to it unless it is a settlement under Section 18(3) which binds all workmen in the establishment. The settlement in question was not under Section 18(3) as it was not arrived at in the course of conciliation proceedings. Therefore, it could not be extended to non-signatory workmen by way of interim relief. (Paras 5-8)

C) Industrial Law - Interim Relief - Prima Facie Case and Balance of Convenience - The Industrial Tribunal failed to consider whether the union had a prima facie case and whether the balance of convenience favored granting interim relief. The Tribunal merely noted that the settlement was made with a majority of workmen and extended it to all, without examining the merits of the demands or the hardship to the employer. (Paras 9-10)

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Issue of Consideration

Whether the Industrial Tribunal had jurisdiction to extend the benefits of a settlement made with a group of workmen to all workmen as interim relief in a pending reference under Section 10 of the Industrial Disputes Act, 1947.

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Final Decision

The High Court allowed the petition, set aside the impugned order of the Industrial Tribunal, and directed the Tribunal to decide the reference expeditiously.

Law Points

  • Interim relief cannot be granted in a manner that effectively decides the main reference
  • Industrial Tribunal's power under Section 10 of Industrial Disputes Act
  • 1947 is limited to adjudicating the referred demands
  • Settlement under Section 2(p) of Industrial Disputes Act
  • 1947 binds only parties to it unless extended under Section 18(3)
  • Prima facie case and balance of convenience must be considered for interim relief
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Case Details

2018:BHC-AS:16029

Writ Petition No.10257 of 2017

2018-06-21

S.C. Gupte, J.

2018:BHC-AS:16029

Mr.R.S.Pai with Mr.A.R.Pai and Mr. A.K.Gopalan i/by M/s Haresh Mehta & Co. for the Petitioner, Mr.A.S.Rao with Mr. Prashant Kamble for the Respondent

Maharashtra Girls Education Society

Maharashtra Karmachari Sanghatana

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Nature of Litigation

Writ petition challenging an order of the Industrial Tribunal granting interim relief extending benefits of a settlement to all workmen.

Remedy Sought

The petitioner society sought quashing of the Industrial Tribunal's order granting interim relief to the respondent union.

Filing Reason

The Industrial Tribunal extended the benefits of a settlement made with 55 workmen to all 111 workmen as interim relief, which the society contended was beyond the Tribunal's jurisdiction.

Previous Decisions

The Industrial Tribunal passed the impugned order on an application for interim relief (Ex.U4) in a pending reference under Section 10 of the Industrial Disputes Act.

Issues

Whether the Industrial Tribunal had jurisdiction to grant interim relief extending the benefits of a settlement to non-signatory workmen. Whether the interim relief granted effectively decided the main reference and exceeded the Tribunal's ancillary power.

Submissions/Arguments

The petitioner argued that the Tribunal had no jurisdiction to grant interim relief that effectively granted the final relief sought in the reference. The respondent union argued that the settlement was with a majority of workmen and should be extended to all workmen as interim relief.

Ratio Decidendi

The Industrial Tribunal's power to grant interim relief is ancillary to its main jurisdiction and cannot be exercised to grant the final relief or effectively decide the main reference. A settlement not under Section 18(3) of the Industrial Disputes Act binds only the parties to it and cannot be extended to non-signatory workmen by way of interim relief without considering prima facie case and balance of convenience.

Judgment Excerpts

This Petition challenges an order passed by the Industrial Tribunal at Pune on an application made to it for interim relief (Ex.U4) in a reference made under Section 10 read with Section 12(5) of the Industrial Disputes Act, 1947. By the impugned order, the Industrial Court extended the benefits of settlement/s made by the petitioner society with what was claimed as the majority of its workmen to all other workmen on the same terms and conditions as and by way of interim relief.

Procedural History

The respondent union submitted a charter of demands to the petitioner society. After failure of conciliation, the demands were referred to the Industrial Tribunal under Section 10 read with Section 12(5) of the Industrial Disputes Act. The union filed an application for interim relief (Ex.U4) seeking extension of benefits of a settlement made with 55 workmen to all workmen. The Tribunal allowed the application. The petitioner society challenged this order by way of a writ petition before the High Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10, Section 12(5), Section 2(p), Section 18(3)
  • Societies Registration Act, 1860:
  • Trade Unions Act:
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High Court Bombay High Court Allows Petition Challenging Interim Relief Extending Settlement Benefits to Non-Signatory Workmen. Industrial Tribunal's Order Quashed for Lack of Jurisdiction Under Section 10 of Industrial Disputes Act, 1947.