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2025 Supreme(Bom) 928

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Indo Count Industries Ltd. - Petitioner
Versus
Shankar Mahadev Takmare - Respondent
Writ Petition Nos. 4630, 4631 of 2025
Decided On : 30-04-2025

Advocates Appeared:
Mr. Avinash Jalisatgi with Mr. T.R. Yadav and Ms. Divya Wadekar for Petitioners in both Petitions. Mr. Dilip B. Shinde with Mr. Mohan C. Kumbhar for Respondent in both Petitions.

Agreements on retirement age must be binding and cannot be selectively questioned; interim relief extending employment beyond retirement age is generally inadvisable.

Headnote:

(A) Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Section 30(2) - Industrial Employment (Standing Orders) Act, 1946 - Model Standing Order 25A - Age of retirement - Petitioner-employer challenged interim orders restraining retirement of employees until age of 60 years - Labour Court granted interim relief based on expired agreement - Industrial Court upheld validity of agreement but ruled age of retirement must comply with Model Standing Orders - Court found that employees accepted retirement age of 58 years in prior agreements and documents - Court emphasized that interim relief should not extend employment beyond retirement age. (Paras 2, 11, 20, 28)

(B) Employment Agreements - Validity - Agreement on retirement age must be binding and cannot be selectively questioned by employees - Employees cannot enjoy benefits of an agreement while disputing its terms. (Paras 19, 20)

(C) Interim Relief - Courts should be cautious in granting interim relief that extends employment beyond retirement age, especially when sought at the end of service. (Paras 25, 26)

Facts of the case:
The Petitioner-employer challenged orders from the Labour Court and Industrial Court that temporarily restrained the retirement of employees until they reached 60 years, despite an agreement stating retirement at 58 years.

Findings of Court:
The Industrial Court ruled that the agreement on retirement age continued to apply, but any agreement contrary to Model Standing Orders would be invalid.

Issues: The main issues were the validity of the retirement age agreement and the appropriateness of granting interim relief to employees nearing retirement.

Ratio Decidendi: The court held that agreements on retirement age must be honored unless they conflict with statutory provisions, and interim relief should not extend employment beyond the agreed retirement age.

Result: Petitions allowed; orders of the Labour and Industrial Courts set aside.

JUDGMENT :

1. Rule. Rule is made returnable forthwith. With the consent of the learned counsel appearing for parties, the Petitions are taken up for hearing and final disposal.

2. The Petitioner-employer has filed these Petitions challenging the judgments and orders dated 20 February 2025 passed by the learned Member, Industrial Court No.1, Kolhapur, dismissing its Revision Applications and confirming the orders dated 3 April 2024 and 19 June 2024 passed by the Labour Court, Kolhapur. By orders dated 19 June 2024, the Labour Court has allowed Applications at Exhibit U-2 filed by the Respondent-employees and has temporarily restrained the Petitioner-employer from superannuating the Respondents until they attain the age of 60 years. The Petition is thus filed challenging the interim orders passed by the Labour Court, as confirmed by the Industrial Court.

3. Briefly stated, facts of the case are that Petitioner-employer is engaged in manufacturing of cotton yarn (Spinning Mill) in its factory at Kolhapur. There are about 805 employees employed in the said factory. Shahu Soot Kapad Kamgar Sangh has been registered as representative and approved Union for Karveer Taluka. Respondent-Shankar Mahadeo Takmare was appointed with the Petitioner- employer on 1 January 1994 as Helper and later on promoted as Assistant Fitter. Respondent-Sanjay Pandurang Ghorpade joined the employment on 25 August 1991 as a Reliever. According to the Petitioner-employer, the age of retirement of employees employed in the Spinning Mill is 58 years. According to the Petitioner, an agreement was executed on 15 April 2006 between the Petitioner- Management and the employees under which the age of retirement was agreed as 58 years. That Respondent-employees accepted all the benefits under the agreement and were fully aware that they were due to retire on attaining the age of 58 years. Respondent-Shankar Mahadeo Takmare was to retire on attaining the age of 58 years on 20 June 2024 whereas Respondent-Sanjay Pandurang Ghorpade was to retire on attaining the age of 58 years on 5 April 2024. Accordingly, letters were issued by both the Respondents informing them about their retirements. Both the Respondents however approached Labour Court by filing Complaint (ULP) Nos. 19 of 2024 and 9 of 2024 seeking restraint order against the Petitioner-employer from retiring them before attaining age of 58 years. The Complaints were resisted by Petitioner-employer by filing Written Statements. Respondent- employees filed Applications at Exhibit U-2 seeking interim relief under Section 30(2) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTP & PULP Act). By orders dated 3 April 2024 and 19 June 2024 the Labour Court allowed the Applications at Exhibit U-2 and has restrained the Petitioner-employer from superannuating the Respondents till they attain the age of 60 years during pendency of the Complaints.

4. Petitioner-employer filed Revision Application (ULP) Nos.18 of 2024 and 25 of 2024 and before Industrial Court, Kolhapur challenging the interim orders passed by the Labour Court on 3 April 2024 and 19 June 2024. By judgments and orders dated 20 February 2025, the Industrial Court has dismissed both the Revision Applications. Petitioner-employer has filed the present Petitions challenging the orders passed by the Industrial Court.

5. Mr. Jalisatgi, the learned counsel appearing for the Petitioner- employer would submit that the Labour Court has grossly erred in granting interim relief in favour of the Respondent-employees by directing their continuance in service till attaining age of 60 years. He would submit that under the Settlement Agreement dated 15 April 2006, all the employees of the Petitioner-employer specifically agreed that age of retirement would be 58 years. That Respondents accepted all the benefits flowing through the Agreement dated 15 April 2006 and cannot selectively question applicability of covenant relating t

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