SUPREME COURT OF INDIA
V.R. KRISHNA IYER, R.S. SARKARIA AND JASWANT SINGH, JJ.
Forbes Forbes Campbell and CO. Ltd., Appellant
Versus
Engineering Mazdoor Sabha, Respondent.
Civil Appeal Nos. 138 and 139 of 1977
Decided on 1-3-1977.
Maharashtra Act, 1971 – Section 61 – Claim of compensation - Not impressed - Seeking recognition - Respondent union applied for recognition under the Act appropriate authority, viz. Industrial Court, Admittedly the union then commanded the requisite qualification of 30 per cent membership. But then there are other condition also necessary before an application for recognition can be accorded. At this stage, we may express our pensive reflection on the fact that notwithstanding the direction in S.11 (2) that an application for recognition shall be disposed of, as far as possible, within three months from the date of receipt of the application this particular proceeding has been pending well beyond one year for reasons which we need not investigate here. It is a bad omen for industrial procession justice – Held, Counsel for the respondent rightly pointed out that if applications made by the unions for recognition within one year of the coming into force of the Act are rejected on the ground that they have not complied with Form A as we have interpreted it there may be a bar for a fresh application until the lapse of another year. We are clear in our minds that the proviso to S. 14 (1) shall not operate as a bar because the application for registration in not being considered on merits and the bar is not attracted. Therefore, the apprehension of counsel for the respondent is misplaced - We may mention that counsel for both the unions have assured the Court that there may not be any disturbance to the industrial peace in the factory concerned. We need hardly say that the Management will also benefit by keeping, on its side, exercise of a similar restraint. We are not implying by these observations one way or the other that either party has violated industrial peace. That is a matter for separate investigation - Now that we have stated the law governing the situation, we proceed, by consent of both sides, to issue certain directions in this case. We are grateful to counsel that they have been able to reach a consensus on the course of action to be adopted. In that light, we are updating the situation, as it were, and the requirements expected of the applicant union will be related to 26th February, 1977. It is agreed by both sides and appearing for the other union, that the Industrial Court be directed to make a report to this Court on certain specified matters. The Industrial Court will direct the Investigating Officer (specified in S. 9) to enquire and make a report to it as to which of the two unions has the majority of members on its rolls for the period of six months preceding 28th February, 1977. The membership, of course, will depend on the prescriptions in the law, such as regarding payment of subscription etc. The Investigating Officer will satisfy himself about the free choice of the members regarding their steady allegiance to one union or the other. Secondly, the Industrial Court will also make a report to this Court about the points mentioned in Section 13 (5) and (6) - Orders accordingly
JUDGMENT
KRISHNA IYER, J.:—Brevity is a necessity in a judgment which proceeds substantially on a consensus among counsel as regards the manner of disposal. Therefore we will be brief in narrating a few facts stating a little law and proceeding straight to the directions to be issued in the light of the controversy arising herein. However, we may indicate even here that there is one question of law which is contentious on which we propose to indicate our view in a general way. This we do because counsel on both sides have pressed that it will be helpful since the High Court has laid down its interpretation with which we do not agree.
2. The Maharashtra (Recognition of Trade Unions and Prevention of Unfair Labour Practices) Act, 1971 (for short, the Act) although passed by the legislature in 1971, was, for inscrutable reasons, brought into force on 8th September, 1975. Whether this can be called laws delay or implementation gap is a matter of phraseology but the fact is that when the legislature makes a law (especially, welfare law for the weaker section of the community) it is implicit that the benefits of the legislation to the consumers thereof shall not be delayed by the Executive by bringing it into force long years later. This is another dimension of laws delays not fully known to the public.
3. The respondent union applied for recognition under the Act, on 15th December, 1975, to the appropriate authority, viz., the Industrial Court, Admittedly the union then commanded the requisite qualification of 30 per cent membership. But then there are other condition also necessary before an application for recognition can be accorded. At this stage, we may express our pensive reflection on the fact that notwithstanding the direction in S.11 (2) that an application for recognition shall be disposed of, as far as possible, within three months from the date of receipt of the application this particular proceeding has been pending well beyond one year for reasons which we need not investigate here. It is a bad omen for industrial processual justice.
4. When the application for recognition was pending, the employer moved the High Court for issuance of an appropriate writ questioning the competence of the union to get recognition. Two grounds were urged without success. The first was that the requirements of Form A read with R. 4 promulgated in exercise of the powers conferred by S. 61 had not been complied with and for that reason alone the application was bound to be dismissed.
5. By way of aside we may mention that S. 12 provides that when an application from a union for recognition is made, notice thereof shall be given in the specified manner and it is open to any other union or unions to raise objections and claim recognition provided the union or unions could claim membership of employees in the concerned undertaking. In the present case another such union appear to have raised such an objection and is represented before us by Mr. K. P. V. Menon.
6. The core of the dispute is as to whether form A should be so read as to insist upon the rejection of the application for recognition if the conditions contained in Columns 7 and 11 (2) therein are not complied with. We may read those conditions in form A.
"Condition 7. The constitution of the applicant union provides for the matters mentioned in S. 19 of the Act. A copy of the constitution is attached.
Condition 11(2): The Executive Committee of the applicant union met on the following dates during the twelve months preceding the date of the application".
Section 19 makes it obligatory upon a union seeking recognition under the Act to provide for a few matters one of which is that
"an auditor appointed by the State Government may audit its account at least once in each financial year".
All the points mentioned above have to be provided in the constitution of the applicant union.
7. So far as we are concerned, the applicant union i.e. the respondent before us has amended its constitution in
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