High Court of Judicature at Bombay
N.M. JAMDAR, J.
Adarsh Janata Sahakari Bank Ltd. & Another
Versus
Anula Rajendra Nile & Others
Writ Petition No. 5917 of 1998
Decided on: 26-03-2014
The Industrial Court can itself pass order under Section 28. Section 44 of Act confers revisional powers upon Industrial Court to call for records and have power of superintendence over Labour Courts. For purpose of Section 50, when Industrial Court either approves, sets aside or modifies order passed by Labour Court under Section 28 of Act effect will be to remedy unfair labour practice. Thus order passed in revision under Section 44, dealing with order of Labour Court under Section 28 in respect of unfair labour practice would fall in ambit of Section 50, being under Chapter VI. Power to correct and remedy unfair labour practice is under Section 28 of Act.
Further if argument is accepted it would lead to anomalous position. It would mean recourse to Section 50 will be permissible only if complaint is rejected and order is reversed favour of an employee by Industrial Court then employee will have no recourse to Section 50. This will produce highly inequitable results and it will be completely contrary to intention of legislature in enacting Section 50, beneficial piece of legislation.
Perusal of consent order passed by Industrial Court will show that what was agreed by petitioner was that respondent No. I will be paid amounts as directed by Labour Court, exercising powers under Section 28. Certain other modalities were worked out and the complaints filed by respondent No. 1 alleging Unfair Labour practices were disposed of. Thus Industrial Court in revisional proceedings only consolidated all complaints filed under Act and disposed them by way of consent terms. Parties acknowledged rights of respondent No. 1 to receive amounts under order passed by Labour Court under Section 28 of Act. Therefore, it was clear that Industrial Court had passed order under Chapter VI. Application therefore was maintainable.
Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Section 50 - Application for issuance of recovery certificate. - An application for issuance of recovery certificate filed by employee not automatically falls outside scope of Section 50 just because Commissioner said that claims were disputed. - Once rights of parties are determined by adjudication then it is open to Industrial Court to grant relief under Section 50 of Act by carrying out arithmetical calculations. Division bench emphasized that since Section 50 provided expeditious remedy and interpretation which advances object of Act rather than defeats same, needs to be adopted.
In this case parties entered into consent terms and agreed to certain rights and liabilities. Industrial Court appointed Commissioner. Before Commissioner, petitioner participated and produced certain material. Commissioner gave its report on some of the issues and for some of issues, Commissioner left it to Court to decide.
Commissioner was not exercising powers of Industrial Court, but was merely assisting it. Ultimate decision as to whether claims were in fact disputed or not was with Industrial Court. Therefore, contention of counsel for petitioner that because Commissioner stated that some claims were disputed, application automatically fell outside scope of Section 50, not liable to be accepted.
Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Section 50 - Claim for recovery of dues. - Once rights of parties are determined by consent terms then Industrial Court can grant relief under Section 50 of Act by carrying out calculations as per consent terms. - When application under Section 50 is made and different calculations are asserted from both the sides there is bound to be some area of adjudication as regards the calculations to be made, but that does not mean that moment there is an element of slightest adjudication, the order of the Industrial Court needs to be set aside on the ground that the Court stepped aside outside its jurisdiction. It will depend on facts of each case to ascertain the extent of adjudication. In the present case I do not find that the Industrial Court has stepped outside the jurisdiction under Section 50 of the Act. The Industrial Court has only given effect to the understanding between the parties, and proceeded to calculate the amounts.
1. The Petitioner challenges the order dated 16 October 1998 passed by the Industrial Court Member, Mumbai issuing a Recovery Certificate for Rs.4,44,216/- in favour of Respondent No.1 on an application filed by the Respondent No.1 under Section 50 of the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971 (The Act).
2. The Respondent No.1 was working with the Petitioner - Bank. A charge-sheet came to be issued to the Respondent No.1 on 22 December 1993 and her services came to be terminated. The Respondent No.1 filed a Complaint (ULP) No. 532 of 1994 in the Labour Court Mumbai. The complaint was under Section 28 read with Item – 1(a), (b), (c), (d), (e), (f) and (g) of Schedule IV of the 'Act'. Respondent No.1 alleged that semblence of inquiry proceeding her termination was conducted, that too not in accordance with principles of natural justice. It was contended that without completing the inquiry as such, by way of victimisation, services of Respondent No.1 were brought to an end. The labour practices on the part of the Petitioner, and sought reinstatement with consequential benefits. The complaint was resisted by the Petitioners and the allegations of unfair labour practices were denied. The Labour Court framed issues regarding maintainability of the complaint and as regards Unfair labour practices. The Labour Court came to the conclusion that Petitioner had committed Unfair labour practices by putting an end to the services of the Respondent No.1. The Labour Court disposed of the complaint by it's order dated 5 October 1996 by directing that the Petitioner will pay lump sum compensation of Rs.1,75,000/- to Respondent No.1 and declined to grant relief of reinstatement with full back wages.
3. Since the Petitioner did not comply with the order of the Labour Court, the Respondent No.1 filed a Criminal complaint. The Respondent No.1 also filed Revision Application No.156 of 1996 in the Industrial Court, Mumbai challenging the order of the Labour Court refusing to grant reinstatement. The Respondent No.1 filed an application for interim relief in the Revision Application. By order dated 20 October 1997, the Industrial Court directed the Petitioner to pay 50% wages to the Respondent No.1 from the date of the order of the Labour Court.
4. There were other proceedings between the parties. The Petitioner and the Respondent No.1 decided to settle their dispute. A compromise was entered into between the parties on 17 December 1997, in the Industrial Court. The terms of compromise were as under:-
TERMS :
“I. The Bank is ready and willing to pay the compensation awarded / wages by the VI Labour Court, Bombay in ULP. Comp. No.532/1994, 533/1994, 20/55 to Anula Rajendra Nile, Nanda Ramchandra Kadam and Chandrakant Hiraman Salve with interest at rule of 9% per annum from the operation of the orders passed in respective case.
II. The Bank is ready and willing to pay the legal Gratuity encashment of leave balance and unpaid bonus and unpaid earn wages if any.
III. The parties in dispute are agreed that if any bank loan or any amount of bank outstanding in the name of complaints and his/her family members as guarantors as per the loan the same will be authorised to Bank to recover the said from the arrears which will be paid as per this agreement.
IV. The parties are agreed to withdraw their complaints, Revision Cri. Complaints, Application which are pending before this Court and applications level of the party before VI Labour Court and in Criminal Complaint the complaint the complainant will file the application from dispossessing the complaint.”
5. After the revision was so disposed of on 17 December 1997, the Petitioner issued a letter to the Respondent No.1 on 7 January 1998 giving summary of legal dues payable to the Respondent No.1. The Petitioner quantified the same at Rs.4,00,983.35, and after deducting some amount called upon to Respondent No.1 to collect Rs.1,25,000/-. The Respondent No
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