1985 Supreme(Bom) 362
BOMBAY HIGH COURT
H.H. Kantharia and S.K. Desai, JJ.
AMBABAI MANJUNATH AMIN - Appellant
Vs.
P.L. MAJUMDAR - Respondent
Writ Petition No. 4712 of 1985
Decided on : 16-12-1985
For the Petitioner:Mr. R.J. Kochar, Advocate
For the Respondent:Bhatta, Advocate, Mr. C.J. Sawant with Mr. Vikram Pal, Advocates
The death of an employee during the pendency of a reference under the Industrial Disputes Act, 1947, does not automatically lead to the abatement of the reference. If the claim includes a monetary component, such as back wages, that claim survives for the benefit of the employee's legal representatives.
Headnote:
INDUSTRIAL DISPUTES ACT - SECTION 10(8) - ABATEMENT OF REFERENCE - DEATH OF EMPLOYEE - SURVIVAL OF CAUSE OF ACTION - MONEY CLAIM - LEGAL REPRESENTATIVES - WRIT PETITION - COSTS - [SECTION 10(8) OF THE INDUSTRIAL DISPUTES ACT, 1947]
Fact of the Case:
An employee died during the pendency of a reference under the Industrial Disputes Act, 1947, concerning his wrongful termination and claim for reinstatement and back wages. The Labour Court held that the reference had abated due to the employee's death and dismissed the claim. The employee's widow filed a writ petition challenging the Labour Court's decision.
Finding of the Court:
The High Court held that the Labour Court erred in dismissing the reference solely based on the employee's death. The Court interpreted Section 10(8) of the Industrial Disputes Act, which was amended during the pendency of the reference, to mean that the proceedings should continue despite the death of a party and an Award on merits should be pronounced. The Court also held that the claim for back wages from the date of termination till the date of death was a monetary claim that survived for the benefit of the employee's legal representatives.
Issues: 1. Whether the reference abated due to the employee's death? 2. Whether the claim for back wages survived for the benefit of the employee's legal representatives?
Ratio Decidendi: 1. Section 10(8) of the Industrial Disputes Act, 1947, as amended, implies that the proceedings should continue despite the death of a party and an Award on merits should be pronounced. 2. The claim for back wages from the date of termination till the date of death is a monetary claim that survives for the benefit of the employee's legal representatives.
Final Decision: The High Court quashed the Labour Court's orders and directed that the widow and other legal representatives of the deceased employee be brought on record and the reference be proceeded with expeditiously.
JUDGMENT :
S.K. Desai, J.
1. In this Writ Petition, Petitioner who is the widow of one M. B. Amin has impugned the decisions given by the Presiding Officer, First Labour Court, on 12th September, 1984 and thereafter on 26th July, 1985. In order to appreciate the controversy, a few fact may be stated. We may add that, to our mind, the position is abundantly clear and the decisions require to be quashed. However, we are writing an elaborate judgment for the guidance of Labour and Industrial Courts in the city.
2. One M. B. Amin (hereinafter referred to as "the employee") was in the employment of the 2nd Respondent Company. The 2nd Respondent will hereinafter be referred to as "the employer". The employee commenced employment with the employer as a Peon from 1954 and was promoted as an Overseer in the year 1963. Ultimately, his emoluments increased and, according to the Petitioner, his last drawn wages were 1,211.73 per month. On 25th April, 1976, the said employee was served with an order of transfer directing him to go to Gauhati (Assam). He did not comply with the order and the contention is that he was sick and it was subsequently detected that he was suffering from T.B. Indeed, from 4th August, 1976 the employee was admitted to the T.B. Hospital at Sewri and was treated in the said Hospital upto 8th October, 1976. On the said date he was discharged with advice to take rest with medical treatment for two months thereafter. According to the Petitioner, on 9th October, 1976, the employee has gone and met the Labour and Welfare Officer of the employer and the latter was informed about the employee's sickness and that he would report for work from 7th December, 1976. It is claimed that necessary certificate had been also submitted. However, on 4th December, 1976, during the period when the employee was resting on medical advice and receiving medical treatment for earlier illness viz. T.B., the employer terminated his services. A copy of the order of termination is annexed as Exhibit 'A' to the Writ Petition. The employee thereafter raised an industrial dispute and after the usual proceedings envisaged under the Industrial Disputes Act, which proved fructuous, a reference was made by the Deputy Commissioner of Labour (Administration), Bombay, on 1st December, 1978. The Copy of the reference has not been shown to us, but we may proceed on the assumption that the same concerned the employee's claim for reinstatement with continuity of service and back wages. The reference was one under Section 10, 12 and 2A of the Industrial Disputes Act, 1947.
3. After the reference was made the parties filed their respective pleas as well as indicated the documents on which they relied. Unfortunately, the reference made in 1978 was not taken up for hearing for four years, which fact is a sad commentary on the inadequacy of Labour Courts provided by the State Government in Maharashtra. Judicial notice should be taken of the fact that the number of Judges and Courts (both Labour and Industrial) falls far short of the requirements and yet no steps seem to be taken in this "progressive" State to rectify the situation. This perhaps resulted in this reference not being attended to for four years. On 23rd December, 1982, the said employee expired leaving behind him the Petitioner as his widow.
4. On 22nd February, 1984, the Petitioner filed an application that she may be impleaded and allowed to contest the reference. It is true that the application was filed after a considerable lapse of time, but there will be no question of not condoning the delay, if any was required to be condoned, after apprising oneself of the widow left with a number of minor children in such predicament. On this application for being brought in the reference in the place and stead of the deceased employee, the Presiding Officer, First Labour Court, Thane, passed an order on 22nd September, 1984 holding that the application was liable to be rejected. The learned Judge placed relian