IN THE HIGH COURT OF BOMBAY
S.C. DHARMADHIKARI, J.
Abbott India Ltd. and others - Appellants
Versus
All India Abbott Employees Union and another - Respondents
Writ Petition No. 1717 of 2011
Decided On : 12-10-2011
{'KEYWORD': 'Unfair Labour Practices', 'SUBJECT': 'Territorial Jurisdiction of Industrial Court', 'ACT SECTION LIST': 'MRTU and PULP Act, 1971 - Items 5, 9, and 10 of Schedule II and Schedule IV', 'SUMMARY': 'The petitioners challenged the territorial jurisdiction of the Industrial Court to entertain a complaint of unfair labour practices under the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act). The complaint alleged unfair labour practices related to service conditions, negotiations, and force or coercion by the company. The Industrial Court concluded that it had territorial jurisdiction based on the allegations in the complaint, the situs of the parties, and the nature of the dispute. The Division Bench judgment in a similar matter was distinguished as it was limited to the facts and circumstances of the case. The Court held that the subject matter of the complaint fell within the competence of the Industrial Court and the cause of action had arisen within its territorial limits. The writ petition challenging the jurisdiction of the Industrial Court was dismissed, and the request for stay of the order was denied.', 'FACT OF THE CASE': 'The petitioners challenged the territorial jurisdiction of the Industrial Court to entertain a complaint of unfair labour practices under the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act). The complaint alleged unfair labour practices related to service conditions, negotiations, and force or coercion by the company.', 'FINDING OF THE COURT': 'The Industrial Court concluded that it had territorial jurisdiction based on the allegations in the complaint, the situs of the parties, and the nature of the dispute.', 'ISSUES': 'The main issue was the territorial jurisdiction of the Industrial Court to entertain the complaint of unfair labour practices.', 'RATIO DECIDENDI': 'The Court held that the subject matter of the complaint fell within the competence of the Industrial Court and the cause of action had arisen within its territorial limits.', 'FINAL DECISION': 'The writ petition challenging the jurisdiction of the Industrial Court was dismissed, and the request for stay of the order was denied.'}
S.C. Dharmadhikari, J.
1. Rule. Respondent No.1 waives service. Service on respondent No.2 is not necessary. Even the intervenors waive service and agree that the writ petition be taken up for hearing forthwith. With the consent of the learned advocates, this writ petition is heard finally and disposed off by this judgment and order.
2. The petitioners have challenged, by this writ petition under Article 226 of the Constitution of India, the order dated 8th August 2011 passed by Member, Industrial Court, Mumbai in complaint (ULP NO.114 of 2011). By this order, the learned Member rejected the application dated 19th July 2011 (Exhibit C-13) raising a preliminary objection to its territorial jurisdiction to entertain and try the complaint.
3. The 1st respondent-Union is the original complainant.
4. The complaint alleges unfair labour practices under Item 5 of Schedule II and Item 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 (for short MRTU and PULP Act).
5. The 1st respondent-original complainant states that it is a trade union functioning in the establishment of the petitioner No.1, which is the original respondent No.1. It is stated that the unfair labour practices have commenced from 5th April 2011. The thrust of the allegations is that the 1st respondent-Union is a registered trade union functioning in the establishment of the 1st petitioner since 1966. It is a recognised union under the Code of Discipline under the Industrial Disputes Act, 1947. It has signed several settlements, concerning wage scale and service conditions of sales promotion employees. The 1st petitioner-company is engaged in manufacturing and marketing of pharmaceutical products all over India and is a leading company. The Union consists of Sales Promotion Employees employed by the company with different designations such as Medical Representatives, Territory Business Developer, Territory Executive and other such designations. All of them carry out the same functions i.e to promote the products of the company.
6. The definitions of the term "Sales Promotion Employee" under the Sales Promotion Employees (Conditions and Services) Act, 1976 and under the Industrial Disputes Act, 1947, have been referred to and reproduced and it is then alleged that the grievances of the Sales Promotion Employees had been taken up by the Union. There are about 1000 such employees working all over the country. They are members of the 1st respondent-Union. On their behalf, the Union has been signing the settlement laying down wage scales and service conditions from time to time. It is stated that a Charter of Demand was submitted on 4th August 2010, a copy whereof is annexed as Annexure A to the complaint and thereupon negotiations commenced with the Union sometime on 21st/22nd January 2011. The last discussion was held sometime in April 2011. They remained inconclusive inasmuch as it is alleged that there is a rigid stand adopted by the 1st petitioner.
7. About 250 Sales Promotion Employees designated as Territory Executives in respect of whom the company has not discussed with the Union although they are carrying out identical functions as Medical Representatives, also had certain grievances and they raised a separate Charter of Demand through 1st respondent-Union and the Union raised its separate Charter in relation thereto on 1st July 2002, a copy of which is at Annexure B. There was no response to the said Charter of Demands and, therefore, intervention of Conciliation Officer was sought and the conciliation proceedings are yet to be initiated.
8. It is alleged that while the office bearers of the Union were busy in preparing for negotiations on the Charter of Demand, the Company suddenly took several steps without the prior knowledge of the Union. The steps that are taken are set out in para 3.8 of the complaint and the same reads thus:
3.8 While the office bearers of the Union were busy in prep
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