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2021 Supreme(Bom) 735

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
R.G. Avachat, J.
M/s. Greaves Cotton Limited - Appellant
Versus
Dhammapal Dadarao Pradhan - Respondent
Writ Petition No. 8466 of 2020
Decided On : 17-02-2021

Advocates appeared:
Mr.B.R.Kawre, Advocate, for the Appellant / Mr.T.K.Prabhakaran Along With Mr.Ashutosh S. Kulkarni, Advocate, for the Respondent.

The main legal point established is that suspension orders should not foreclose the outcome of pending disciplinary enquiries and should not be used to scuttle employees' voices.

Headnote:

Suspension - Unfair Labour Practice - MRTU & PULP Act, 1971 - Standing Order 25 - [ULP] - [MRTU & PULP Act, 1971, Schedule II] - [Summary: The court discussed the suspension of employees under the guise of legally permissible action, the employer's use of Standing Order 25 as a retaliatory weapon, and the need for assessment of mala fide suspension orders. The court found that the suspension orders were under the guise of legally permissible action to scuttle the employees' voice and set aside the impugned order.]

Fact of the Case:

The petitioner, a limited company, suspended respondent employees for union activities and filed a Writ Petition challenging the order staying the suspension. The Industrial Court had allowed the application staying the suspension of the respondents.

Finding of the Court:

The court found that the suspension orders were under the guise of legally permissible action to scuttle the employees' voice and set aside the impugned order.

Issues: The issues involved unfair labour practices, retaliatory suspension, and the employer's right to suspend employees for grave misconduct.

Ratio Decidendi: The court held that the suspension orders were mala fide and under the guise of legally permissible action to scuttle the employees' voice.

Final Decision: The Writ Petition was allowed, setting aside the impugned order.

ORDER

1. Heard learned counsel appearing for the parties.

2. The challenge in this Writ Petition is to the order dated 30.11.2020 passed by learned Member, Industrial Court, Aurangabad, below application (Exhibit U-2) in Complaint (ULP) No.65 of 2019. By the impugned order, the suspension of complainant nos.1 to 9 (respondent nos.1 to 9 herein) has been stayed, until further orders.

3. The petitioner herein is a limited company. Respondents nos.1 to 20 are its employees. Respondent no.21 claims to be a trade union. The petitioner - employer, vide orders dated 9th May, 2019 and 14th May, 2019, placed respondent nos.1 to 9 under suspension on the ground of canvassing for union membership, collection of union dues within the factory premises, stoppage of work, instigating other employees to go slow, disorderly behavior within the factory premises and coercive activities to compel other employees to join the union, etc. The petitioner - employer proposed to initiate disciplinary proceedings/domestic enquiry against respondent nos.1 to 9. Charge sheet along with the notice to show cause has been issued to the delinquent - employees, respondent nos.1 to 9.

4. The respondents filed Complaint (ULP) No.65 of 2019, alleging the petitioner - employer to have indulged in unfair labour practice with a view to dismiss respondent nos.1 to 9 from service for no reason. On hearing the parties to the complaint, learned Member, Industrial Court, vide order dated 06.03.2020, allowed the application (Exh.U-2), staying suspension of respondent nos.1 to 9 till further orders. The petitioner - company took exception to the said order by filing a Writ Petition (3980 of 2020). This Court, vide order dated 12.03.2020, set aside the order impugned therein and directed the Industrial Court to consider the application in the light of the following points :-

(a) The impugned suspension order is issued under the guise of legally permissible action when it was preceded by lodging of the ULP complaints by the workers.

(b) The ULP complaints lodged by the workers before the Industrial Court prior to the issuance of suspension orders on 14.05.2019, pertain to the unfair labour practices purportedly indulged into by the employer falling under Schedule II of the MRTU & PULP Act, 1971.

(c) Because the workers started organizing themselves and as the local union led such organizing activity, the Management resorted to Standing Order 25, to be used as a retaliatory weapon for scuttling formation of the union and union activities.

(d) If the suspension orders have a colour of retaliation owing to the ULP complaint alleging unfair labour practices under Schedule II, the Industrial Court will have to assess as to whether, the suspension orders were issued mala fide.

5. Learned Member, Industrial Court, on hearing the parties to the complaint, vide order dated 30.11.2020, observed as under :-

"11.....

First of all I would like to make it clear that there would not be a separate investigation or preliminary enquiry when the Standing Orders enable the employer to resort to a disciplinary proceeding. On going through the Standing Orders I found suspension pending enquiry cannot mean only at the stage of issuance of charge-sheet but suspension as envisaged in Standing Order can be effected when the employer proposes or contemplates to take action for misconduct. Now so far four points formulated by Hon'ble High Court are concerned, I am to state that the suspension orders issued against the complainants are under the guise of legally permissible action having colour of retaliation owing to filing complaints by them. I have gone through the suspension orders and charge-sheets against the complainants. The suspension orders dated 9.5.2019 and 14.5.2019 show that certain complaints of serious nature against the complainants were before the respondent for their union activities, collection of union dues, stoppage of work, instigation of go slow, disorderly behaviour etc. If we go through t

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