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2008 Supreme(Bom) 405

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SWATANTER KUMAR, C.J. & J.P. DEVADHAR, J.
M/s. Pipe Arts India Pvt. Ltd., SANASWADI. – Appellant
Versus.
Shri Gangadhar Nathuji Golamare – Respondent
LETTERS PATENT APPEAL NO.50,51,52,53,54,55,56,57,and 58 of 2008
WRIT PETITION NO.7373, 7428, 7417, 7430,7433,7415,7431,7426,and 7429 of 2007
Decided On: 13TH MARCH, 2008

Advocates:
ADVOCATE APPEARED:
Mr. K.S. Bapat instructed by Mr. A.D. Patwardhan for the appellant.
Mr. Nitin Kulkarni for the respondents.

The main legal point established in the judgment is that judicial orders, including those related to interim relief, should be supported by reasoning, and absence of reasoning may render the order liable to be set aside.

Headnote:

Interim Relief - Companies Act - 1991(2) S.L.R. 675, 1991 Supp (1) SCC 414, 1995 (suppl) 2 SCC 83, (1987)2 SCC 222, (1992) 1 SCC 489, (1998) 2 SCC 242, (2001) 10 SCC 607, (2004) 5 SCC 568 - The court discussed the legal provisions and interpretations related to the requirement of recording reasons for granting or declining interim relief. The court emphasized that judicial orders, including those related to interim relief, should be supported by reasoning. It cited various cases to highlight the importance of providing reasons in orders, stating that it is essential for litigants to know the reasons for the acceptance or rejection of their requests, and that absence of reasoning may render the order liable to be set aside.

Fact of the Case:

The workmen proceeded on an illegal strike, and the appellant-company challenged the award of reinstatement and half back wages granted to the workmen by the Labour Court. The appellant prayed for interim relief by way of stay of the operation of the impugned order, which was rejected by the learned Single Judge without stating any reason. The appellant challenged the rejection on the ground that no reasons were recorded.

Finding of the Court:

The court found that the rejection of the prayer for grant of interim relief without stating any reason caused serious prejudice to the appellant. It emphasized the importance of recording reasons for granting or declining interim relief, citing various legal principles and interpretations from previous cases.

Issues: The main issue was the legality, propriety, and correctness of the rejection of the appellant's prayer for interim relief without providing any reasons.

Ratio Decidendi: The court held that judicial orders, including those related to interim relief, should be supported by reasoning. It emphasized that absence of reasoning may render the order liable to be set aside, and cited various cases to support the importance of providing reasons in orders.

Final Decision: The appeals were accepted, the impugned order was set aside, and the cases were remanded to the learned Single Judge for hearing of the application afresh in accordance with law.

JUDGMENT (Per Swatanter Kumar, C.J.)

1. On somewhat similar facts, the learned Single Judge had passed the order “Prayer for interim relief is rejected” giving rise to the above nine appeals. As a common question of law is raised in all these appeals, it will be appropriate to dispose of these appeals by a common judgment. However, for the purposes of convenience, we have referred to the facts of writ petition No.7373 of 2007.

2. The appellant-company is incorporated under the provisions of the Companies Act, carrying on the business of fabrication of components partly at its factory and partly at the site of its customers with the help of various workmen in its employment.

3. On 21st February, 1999, the workmen suddenly proceeded on an illegal strike and started causing obstruction to ingress of men and material at the gate of the factory. According to the workmen, their services had been terminated orally on 25th August, 1999 and, therefore, they referred the matter to the Conciliation Officer seeking reference of their dispute to the Labour Court. Even before the Conciliation Officer, the appellant-company offered job to the workmen and asked them to report for duty. The Conciliation Officer submitted failure report. The appropriate government referred the dispute for adjudication in accordance with law to the Labour Court, Pune. The IIIrd Labour Court, Pune vide its order dated 2nd February, 2007, passed an award holding that there was an oral termination of services of the workmen on 20th September, 1999 and granted relief of reinstatement and half back wages. This award was challenged by the company under Article 226 of the Constitution of India before this court by way of filing writ petition No.7373 of 2007 wherein the appellant prayed for interim relief by way of stay of the operation of the impugned order. The said writ petition came up for hearing alongwith the other eight connected writ petitions and the learned Single Judge, on 25th January, 2008, passed the following order:-

“Heard Mr. Patwardhan, the Learned counsel for the Petitioner-company. Rule. Prayer for interim relief is rejected. Mr. Kulkarni waives service for the Respondents. Called for R. and P. Liberty to apply for fixing the date of early hearing.”

4. The appellant-company challenges the legality, propriety and correctness of the above order on the ground that no reasons have been recorded by the learned Single Judge while rejecting the prayer for grant of interim relief to the appellant-company. It is also urged that on finding merit in the writ petition of the petitioner, rule was issued by the learned Single Judge which itself is indicative of the fact that even the prayer for grant of interim relief of the petitioner had a merit.Thus, it could not have been rejected particularly without stating any reason. Non-recording of reasons has caused serious prejudice to the interest of the appellant. The counsel for the appellant placed reliance upon an order dated 26th February, 2008 of the Division Bench of this court in the case of M/s. Shiv Santosh Dugdhalaya v. Mr. Yashwant D. Purandare (Letters Patent Appeal No.31 of 2008 with Civil Application No.29 of 2008 in Writ Petition No.9274 of 2007).

5. The learned counsel appearing for the respondent had no objection in setting aside the order impugned in the present appeal as, according to him also, the court is expected to record reasons while granting or declining the relief prayed before the court even by way of interim relief. According to him, the order in LPA 31 OF 2008 was on a concession.

6. It is true that the order in LPA 31 of 2008 was passed on a concession recorded and both the parties were ad idem that the learned Single Judge should have stated some reasons in support of order rejecting the prayer. May be, the order in that case was passed by consent of the parties but certainly, the principle that judicial orders should be supported by some reasoning, still holds good. In the case of Uni




























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