IN THE HIGH COURT OF JUDICATURE AT BOMBAY
N.J. JAMADAR, J.
Abdulla R. Khan – Petitioner
Versus
Construction and Engineering Equipments and Others – Respondents
Writ Petition No. 2932 of 2021
Decided On : 05-06-2023
Unfair Labour Practice - Industrial Dispute - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Section 30(1)
Fact of the Case:
The petitioner challenges a judgment and order regarding unfair labour practice by the respondent-employer. The petitioner was terminated and sought reinstatement with back-wages. The employer claimed closure of the company, making reinstatement impossible.
Finding of the Court:
The court found that the respondent indulged in unfair labour practice by not implementing the award of reinstatement. The court considered the closure of the company and modified the relief to include 50% back-wages till closure, closure compensation, and additional compensation of Rs. 70,000.
Issues: The issues involved the unfair labour practice of the employer, the closure of the company, and the appropriate relief for the petitioner.
Ratio Decidendi: The court exercised its discretion under Section 30(1) to mold the relief based on the circumstances, including the closure of the company, and awarded compensation in lieu of full reinstatement with back-wages.
Final Decision: The petition was partly allowed, and the impugned order was modified to include 50% back-wages till closure, closure compensation, and additional compensation of Rs. 70,000 to the petitioner.
JUDGMENT :
N.J. JAMADAR, J.
1. Rule. Rule made returnable forthwith and with the consent of the parties, heard finally.
2. By this Petition under Article 226 of the Constitution of India, the Petitioner takes exception to a judgment and order dated 11th September 2019 passed by learned Member, Industrial Court at Mumbai in Complaint (ULP) No. 421 of 2015 whereby while making a declaration that the Respondent-employer indulged in unfair labour practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (“The Act, 1971”), the learned Member directed payment of back-wages from the date of illegal termination till the alleged closure of the Company on 6th December 2012 and closure compensation, when the Petitioner had alleged unfair labour practice in not implementing the award dated 27th March 2015 passed in Reference (IDA) No. 443 of 2010.
3. Construction & Engineering Equipments, the Respondent No. 1, was engaged in the business of manufacturing of concrete machines. Gamzen Plast Private Limited, the Respondent No. 2 is a sister concern of Respondent No. 1. Both the concerns are owned and managed by Respondent No. 3. Petitioner was employed as a Turner with Respondent No. 1 since the year 2003. On 7th November 2008, the Petitioner was restrained from resuming his duty. Respondent thus abruptly terminated the services of the Petitioner verbally.
4. Upon an industrial dispute being raised by the Petitioner, the Deputy Commissioner of Labour made a Reference under Section 10(1) and 12(5) of the Industrial Disputes Act, 1947 (“I.D. Act 1947”) to the Labour Court, Mumbai being Reference (IDA) No. 443 of 2010. Petitioner and Respondent- employer led evidence in the said reference. After appraisal of the evidence and material on record, the learned Judge, Labour Court was persuaded to return a finding that the Petitioner had proved that his services were illegally terminated by the employer. Labour Court thus partly allowed the Reference declaring that the Petitioner was entitled to be reinstated in service with 50% back-wages and continuity of service.
5. As the said award was not implemented by the employer, the Petitioner lodged a complaint being Complaint (ULP) No. 421 of 2015 before the Industrial Court alleging that the employer indulged in unfair labour practice in not implementing the aforesaid award though it had attained finality. Petitioner claimed to have addressed letters to the Respondents to ensure compliance of the award and also personally approached the Respondents to allow him to resume duty on 28th July 2015. However, the Petitioner was not allowed to enter into the Company premises. Thus, the Petitioner was constrained to lodge complaint under Section 28 of the Act, 1971 for unfair labour practice under Item 9 of Schedule IV of the Act, 1971.
6. The Respondents resisted the complaint by filing written statement. It was denied that the Respondents indulged in any unfair labour practice. A categorical stand was taken by the Respondents that the Respondent No. 1-Company had closed down its operations at Mumbai in April 2010 itself. Consequent to the closure of the manufacturing activity, all the workmen of the Respondent No. 1 had parted with by accepting compensation. The order of reinstatement, in the backdrop of the closure of Respondent No. 1, could not be implemented. Therefore, the complaint was liable to be dismissed as there was no unfair labour practice, contended the Respondents.
7. The learned Member Industrial Court recorded the evidence of the Petitioner-Complainant. No evidence in rebuttal was led by the Respondents. After evaluation of the evidence and material on record, the learned Member was persuaded to allow the complaint declaring that the Respondents indulged in unfair labour practice under Item 9 of Schedule IV of the Act, 1971, commanded Respondents to cease and desist therefrom and directed the Respondents to pay 50% back-wag
M/s Hindustan Tin Works Pvt. Ltd. vs. The Employees of M/s Hindustan Tin Works Pvt. Ltd. and Others
The court has the discretion to mold relief under Section 30(1) based on the circumstances, including the closure of the company, and may award compensation in lieu of full reinstatement with back-wa....
The main legal point established in the judgment is that the consequences of an illegal closure are statutorily prescribed, and the workmen are entitled to all the benefits under any law for the time....
The court established that under Section 25FFF of the Industrial Disputes Act, compensation is the exclusive remedy for termination due to closure of an undertaking.
Reinstatement and back wages cannot be ordered for workers in a closed establishment, as such directions are legally unsustainable.
The validity of closure negates grounds for reinstatement unless framed properly within statutory provisions under the Industrial Disputes Act.
The dominant nature of the employee's duties determines workman status, and the burden of proof lies with the employer to establish the grounds for termination. The grant of backwages in cases of ill....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.