IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
The Indian Express (P) Ltd. & Ors. – Appellants
Versus
Dinesh Rane & Ors. - Respondents
Writ Petition No.10814 of 2023
Decided on : 30-01-2024.
Unfair Labour Practices - Industrial Court Order - MRTU & PULP Act, 1971 - Schedule II, Schedule III, Schedule IV - The court discussed the allegations of unfair labour practices under various items of Schedule II and Schedule IV of the MRTU & PULP Act, 1971. It highlighted the lack of evidence to support the allegations and emphasized the employer's inherent right to take disciplinary action and transfer employees.
Fact of the Case:
The Petitioners challenged an order passed by the Industrial Court restraining them from terminating the services of Respondents without due process of law and from operating transfer orders without granting seven days' time to challenge the transfer.
Finding of the Court:
The Industrial Court granted interim relief to the Respondents despite finding no merit in their grievances. The court held that the nature of the directions issued by the Industrial Court could not have been granted in the present case.
Issues: The main grievance of the Respondents was about alleged interference in the election process of the Union and deputation of managerial staff for interfering in the functioning of the Union.
Ratio Decidendi: The court emphasized the lack of evidence to support the allegations of unfair labour practices and highlighted the employer's inherent right to take disciplinary action and transfer employees.
Final Decision: The Writ Petition was allowed, and the court held that the impugned order passed by the Industrial Court was indefensible.
JUDGMENT :
1. Rule. Rule is made returnable forthwith. With the consent of the learned counsel appearing for the parties, the Petition is taken up for final hearing and disposal.
2. The Petitioners have filed this Petition challenging the order dated 19 September 2022 passed by the Industrial Court, Thane on Application at Exhibit U-2 filed by the Respondents in Complaint (ULP) No.160 of 2022. By the impugned order, the Industrial Court has restrained the Petitioners from terminating the services of Respondents without following due process of law and has further directed that in the event of their transfer, seven days’ time be granted to them before giving effect to the order of transfer so as to enable them to challenge the transfer order.
3. I have heard Mr. Khambata, the learned senior advocate appearing for the Petitioners and Ms. Singh, the learned senior advocate appearing for the Respondents.
4. After having considered the submissions canvassed by the learned counsel appearing for the parties and on perusal of the impugned order dated 19 September 2022, it is seen that the order grants interim relief to the Respondents in the form of restraining the employer from terminating the services of its employees without following due process of law and from operating the order of transfer, if and when issued, for a period of seven days.
5. Respondents have filed Complaint (ULP) No.160 of 2022 seeking following prayers:
“(a) To hold and declare that the Respondents are engaged in the Unfair Labour Practices under Items 1 (a), 2 (a), 3 & 4(f) of Schedule II and items 3, 5, 9 & 10 of Schedule IV of the MRTU & PULP Act, 1971.
(b) To direct the Respondents to cease and desist from engaging in the Unfair Labour Practices complained hereinabove.
(c) To direct the Respondents to refrain from interfering in the election process, decision making and affairs of the Union.
(d) To direct the Respondents to withdraw the managerial staff from union work and further direct Shri Sajid Sheikh and any other person to interfere in or influence the decision making process of the Union.
(e) To direct the Respondents to not to entertain, deal with, negotiate or sign or finalise any matter pertaining to the services and service conditions of the workmen and or employees working in the Mahape unit.
(f) To quash & set aside any Order adversely impacting service conditions and or place of employment of the Complainants.
(g) To direct the Respondent to continue the Complainants to work at their present work place at Mahape, Navi Mumbai in their original post and department.
(h) Pending hearing and disposal of this complaint, restrain the Respondents from changing the place of employment or service conditions of the Complainants.
(i) Pending hearing and disposal of this complaint, restrain the Respondent from taking any action against the Complainants in furtherance of or consequent to the illegal and irregular election process.
(j) Ad Interim or Interim reliefs in terms of prayer clause (h) to (i) above.”
(k) Any other relief more beneficial that the Hon’ble Court may deem fit and proper in the facts of the case and in interests of justice.
(l) Cost and compensation in favour of Complainant may please be ordered.”
6 Thus the main grievance of the Respondents in their Complaint before the Industrial Court is about the alleged interference by the Petitioners in the election process of the Union and deputation of managerial staff for interfering in the functioning of the Union.
7 The Industrial Court, while passing the impugned order, has recorded following prima facie findings with regard to each of the grievance of the Respondents pleaded in the Complaint:
“27. The complainants alleged that respondents are using coercive tactics against the employees and stopping them from exercising their rights to organize and they are engaged in unfair labour practice under item 1 of schedule II of MRTU & PULP Act. If facts of the case are seen, then union is working in establishment of
AI
The employer has an inherent right to take disciplinary action and transfer employees, and the court can interfere only if there is evidence of malice or non-compliance with terms of employment.
The court emphasized the need for strict adherence to regulations governing transfer on administrative grounds and held that the respondents' conduct amounted to unfair labour practice.
Transfer is a standard condition of service, and can only be challenged on grounds of mala fides, which require substantial proof of personal bias or improper motive.
The main legal point established in the judgment is the need to decide all issues together in labour matters to prevent undue delay in the adjudication of the real dispute.
Only scope for interference under Articles 226 and 227 of Constitution of India, is in case there is a flagrant disregard of Rules of procedure or in case there is violation of principles of natural ....
Unlawful termination of employees engaged in union activities constitutes unfair labor practices, entitling them to reinstatement and back wages.
The main legal point established is that transfers for misconduct, as justified by applicable legal provisions and previous judgments, are permissible even when disciplinary action is pending for the....
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