SUPREME COURT OF INDIA
KULDIP SINGH AND P.B. SAWANT, JJ.
Automobile Products of India Employees` Union, Appellant
Versus
Association of Engineering Workers, Bombay and others, Respondents
Civil Appeals Nos. 1597-98 of 1988, D- 27-3-1990.
Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971 – Section 13(l)(ii) and 12 - Trade Unions Act, 1926 – Employment - Cancellation of recognition of first respondent- Appellant-Union made an application to Industrial Court, Thane under Section 13(l)(ii) of Act for cancellation of recognition of first respondent-Union on ground that latters membership in Bhandup Undertaking had fallen below 30 per cent of the total strength of workmen in that undertaking for preceding six months - Appellant-Union submitted yet another application for cancellation of recognition of first respondent-Union this time under Section 13(l)(i) of Act alleging that recognition was obtained by first respondent-Union by misrepresentation and / or fraud, and that it was granted recognition also by mistake - Held, Illegality - For reasons which we have indicated earlier legislature did not opt for ballot as a method for determining representative character of union and laid down an elaborate procedure with necessary safeguards, to do so - Hence Court view that order of Industrial Court granting recognition under Act to appellant Union by following method of ballot is prima facie illegal being in breach of provisions of Act - High Court had, therefore, rightly interfered with said order by relying on its earlier decision in case of Maharashtra Gentral Kamgar Union (1983 Lab IC 1034) (Bom) (supra) - Matter is remanded to Industrial Court for disposal according to law - It is,. however, made clear that if there are any settlements which have been arrived at between appellant-Union and respondent Company, they will be allowed to run their full course - Appellant-Union will not enter into any settlement during pendency of present proceedings and if any settlement is to be entered into, it should be done only with consent of respondent Union which has not lost its recognition as yet - Appeals dismissed.
JUDGMENT
SAWANT, J.:- The present appeals arise out of a battle for recognition between the rival trade unions in proceedings under the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971 (hereinafter referred to as the Act).
2. The fourth respondent-Company has two factories, one at Bhandup, Bombay employing about 1700 workers and the other at Aurangabad employing about 1000 workers. The first respondent-Union, viz., the Association of Engineering Workers, Bombay obtained a certificate of recognition from Industrial Court, Thane under Section 12 of the Act, on April 7, 1977 for the Companys undertaking at Bhandup. While the first respondent-Union was acting as such recognised union, many of the workers claimed that they had resigned from the said Union and formed a new union called the Automobile Products of India Employees Union which is the appellant-Union and registered it on January 7, 1981 under the Trade Unions Act, 1926. On October 9, 1981, the appellant-Union made an application to the Industrial Court, Thane under Section 13(l)(ii) of the Act for cancellation of the recognition of the first respondent-Union on the ground that the latters membership in the Bhandup Undertaking had fallen below 30 per cent of the total strength of workmen in that undertaking for the preceding six months. In its reply dated November 16, 1981, the first respondent-Union refuted the allegation in the application and contended that its membership was more than 30 per cent for the relevant period. The appellant-Union on March 1, 1982 submitted yet another application for cancellation of recognition of the first respondent-Union this time under Section 13(l)(i) of the Act alleging that the recognition was obtained by the first respondent-Union by misrepresentation and / or fraud, and that it was granted recognition also by mistake. The Industrial Court rendered the relief in favour of the appellant-Union. However, the said decision was set aside by the High Court and the decision of the High Court was upheld by this Court. Here ended the first skirmish.
3. The appellant-Union thereafter started the second battle this time for its own recognition under Section 14 of the Act and the present appeals are an outcome of the said proceedings. On July 29, 1982, the appellant Union filed an application under Section 14 of the Act for being registered itself as a recognised union in place of the first respondent Union on the ground that it had the largest membership of the workers in the Bhand up undertaking, viz., 1036 out of a total of 1700 workers, i.e. about 69% of the total strength. The first respondent-Union in its reply of October 7, 1982 contested the appellant-Unions claim and pleaded that it had a membership of about 1400 workers. Both the appellant-Union and the first respondent Union furnished with their pleadings the details of their membership. On August 19, 1985, the appellant-Union made an application to the Industrial Court to hold an inquiry under Section 12(2) of the Act by directing the investigating officer to verify the membership of both the Unions. On September 5, 1985, the Industrial Court gave directions to the Investigating Officer appointed under the Act to assist the Court, to investigate the memberships of both the Unions.
4. While the Investigating Officer was in the process of verifying the memberships of the two Unions, suggestions were made for deciding by secret ballot as to which of the Unions commanded the majority. As per the suggestion, the first respondent-Union on December 19,1985 submitted a draft proposal to the Industrial Court as follows :
1. The issue pertaining to recognition of any of the unions be decided by secret ballot and the Investigating Officer be directed to conduct the same ballot.
2. The union which would have the majority of the votes would be treated as recognised trade union and the one which fails to get the majority would not raise any technicality or objec
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