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2024 Supreme(Bom) 21

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Milind N. Jadhav, J.
M/s. Hindustan Level Employees Union - Petitioner
Versus
M/s. Hindustan Unilever Limited - Respondent
Writ Petition No. 8562 of 2015
Decided On : 03-01-2024

Advocate Appeared:
For the Petitioner:Ms. Jane Cox a/w. Mr. Jignesha Pandya i/by Mr. Bennet D’Costa, Advocates
For the Respondent:Ms. Supriya Mujumdar a/w. Melvyn Fernandes, Advocates i/by Vaish Associates

Statutory provisions governing subsistence allowance cannot be overridden by customary practices requiring attendance during suspension, as per Section 10A of the Industrial Employment (Standing Orders) Act, 1946.

Headnote:(A) Industrial Employment (Standing Orders) Act, 1946 - Section 10A - Subsistence allowance - Denial of subsistence allowance due to condition of marking attendance during suspension - Court ruled that requiring marking of attendance is contrary to Section 10A and cannot be imposed on suspended employees as a condition for receiving subsistence allowance - Condition imposed by employer was found to be unfair and unjust. (Paras 12, 15, 16)

(B) Judicial Review - The role of the court in examining the legality of conditions imposed by the employer concerning entitlements under statutory provisions - Court held the conditions must align with statutory mandates without unfair restrictions. (Paras 10, 13, 14)

Facts of the case:
The employee, Natubhai Mohanlal Patel, was suspended and denied subsistence allowance on the basis of not marking attendance daily as directed in the suspension order. The petitioner argued that no such prerequisite exists under law.

Findings of Court:
The court held that the requirement to mark attendance was not legally justified under Section 10A of the Industrial Employment (Standing Orders) Act and quashed the award denying subsistence allowance.

Issues: The court addressed whether the employer could impose attendance as a condition for payment of subsistence allowance contrary to statutory provisions.

Ratio Decidendi: The court reasoned that stipulations beyond statutory requirements for entitlement to subsistence allowance are illegal, emphasizing that customary practices cannot supersede statutory mandates.

Result: Writ Petition allowed; the award quashed and directed payment of subsistence allowance with interest.

Table of Content
1. right to amend writ petition regarding subsistence allowance. (Para 1 , 2 , 3)
2. factual background regarding mr. natubhai patel's employment and suspension. (Para 4)
3. arguments for entitlement to subsistence allowance without marking attendance. (Para 5)
4. court's analysis on the legality of attendance condition for subsistence allowance. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
5. final decision to quash previous award and direct payment of subsistence allowance. (Para 15 , 16 , 17)

JUDGMENT:

1. At the outset, Ms. Cox, learned Advocate appearing for the Petitioner seeks amendment to the Writ Petition to the extent of maintaining the challenge in the Writ Petition under the provisions of Article 227 of the Constitution on India in addition to the challenge under the provisions of Article 226. Proposed Draft Amendment is taken on record and marked ‘X’ for identification. Petitioner is permitted to amend the Writ Petition to the extent of the Draft Amendment. Amendment shall be carried out in the body of the Writ Petition within a period of one week from today. Re-verification stands dispensed with.

2. Petition raises an important point of law. Challenge in the Writ Petition is to the Award dated 13.08.2014 rejecting the Reference. Reference related to the Petitioner’s claim for seeking subsistence allowance which was denied by the Respondent – Company on the ground that the suspended employee did not attend the factory premises to mark his attendance at the factory gate in the muster / register provided for the purpose during his suspension. Award has held that denial of subsistence allowance is not contrary to law and justified, since the employee did not attend the factory everyday and sign the muster / register provided therefor.

3. Cause of the employee is espoused by the recognized Union in the Respondent – Company. According to Petitioner, it is not a requirement under the law requiring and/or to call upon a suspended employee to mark his physical attendance and sign the muster everyday at the factory gate as a pre-requisite for being paid subsistence allowance. In the present case, the employee has not attended the factory each day and signed the muster due to which he has been denied subsistence allowance. This is upheld by the Labour Court.

4. Briefly stated, the facts necessary for the adjudication of the present case are as under:-

4.1. The employee in question is one Mr. Natubhai Mohanlal Patel. Sometime in November 2002, Respondent – Company set up a Union called ‘Hindustan Lever Limited Daman Karmachari Sangh’ (the Petitioner herein). In and around February / March 2003, Respondent – Company sponsored another Union called ‘Association of Chemical Workers Union’. In the year 2003, the long term settlement in existence with the Respondent – Company came to an end. At that time, officers of the Respondent – Company were forcing workmen to sign on membership forms of the ‘Association of Chemical Workers Union’.

4.2. On 01.05.2003, the Petitioner – Union terminated the settlement under the provisions of law and submitted a fresh charter of demands. On 22.05.2003, Petitioner approached the office of the Commissioner of Labour for intervention in Wage Dispute Revision. Certain incident took place on 23.08.2003 when a police officer threatened Mr. Natubhai Patel (concerned workman) and compelled him to leave the factory premises so that the management of the Respondent – Company could force the other workmen to sign the settlement with the Respondent’s sponsored Union.

4.3. On 24.08.2003, Respondent – Company signed the settlement with the sponsored Union.

4.4. On 03.04.2004, an order of suspension was issue to Mr. Natubhai Patel alongwith a charge-sheet. Charge-sheet was also issued to five other employees who actively participated in formation of the Petitioner – Union.

4.5. On 23.04.2004, Petitioner - Un

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