IN THE HIGH COURT OF MADHYA PRADESH BENCH AT INDORE
Anil Verma, J.
Municipal Corporation – Appellant
Versus
Nasreem – Respondent
Miscellaneous Petition No. 3502 of 2020
Decided On : 01-04-2022
Article 227 - Labour Law - Code of Civil Procedure, 1908 - Order 9 Rule 13 - Section 9 Rule 13 of CPC - The judgment discusses the application of Order 9 Rule 13 of the Code of Civil Procedure, 1908 and the principles of natural justice in the context of an ex-parte award passed by the Labour Court. It also references the case of Haryana Suraj Malting Limited vs. Phoolchand to highlight the importance of compliance with the principles of natural justice in making an award binding.
Fact of the Case:
The petitioner, a Municipal Corporation, challenged an ex-parte award passed by the Labour Court directing reinstatement without backwages. The petitioner filed applications under Order 9 Rule 13 of CPC for setting aside the ex-parte award, which were dismissed by the Court below.
Finding of the Court:
The Court found that the petitioner had shown sufficient reason for non-appearance before the Labour Court and that the Court below had erred in rejecting the applications filed under Order 9 Rule 13 of CPC. The impugned orders were set aside, and the matter was remitted back to the Labour Court for reconsideration.
Issues: The issues revolved around the dismissal of the applications under Order 9 Rule 13 of CPC, the compliance with the principles of natural justice, and the validity of the ex-parte award.
Ratio Decidendi: The Court relied on the principles of natural justice and the case of Haryana Suraj Malting Limited vs. Phoolchand to emphasize that an award must be passed in compliance with the principles of natural justice to become binding. It held that an award which is a nullity due to denial of an opportunity of hearing could be challenged and set aside.
Final Decision: The impugned orders were set aside, and the matter was remitted back to the Labour Court for reconsideration with sufficient opportunity of hearing to the petitioner/Municipal Corporation.
ORDER
1. The petitioner has filed the present petition under Article 227 of the Constitution of India, being aggrieved by impugned orders dated 27.05.2019 (Annexure-P/3), 26.09.2019 (AnnexureP/6) and 31.01.2020 (Annexure-P/7) whereby ex-parte award has been passed against the petitioner. Two different applications under Order 9 Rule 13 of the Code of Civil Procedure, 1908 (for short 'CPC') have been preferred by the petitioner before the Court below and the same were also dismissed.
2. The facts of the case in brief are that the petitioner/Municipal Corporation has filed the petition challenging the award passed by the Labour Court in Ref. No.ID REF.30/19, wherein the Presiding Officer has proceeded an ex-parte award against the petitioner directing reinstatement of petitioner without backwages. Thereafter the petitioner has filed an application under Order 9 Rule 13 of CPC for setting aside the ex-parte award but the learned Court below has dismissed the aforesaid application. The petitioner has again filed an application under Order 9 Rule 13 CPC and the same was also dismissed by the Court below vide impugned order dated 31.01.2020.
3. Counsel for the petitioner/Municipal Corporation contends that the learned Court below has erred in law in dismissing the application filed by the petitioner for conducting by party hearing in the case on the ground that permission to publish award was already granted granted to him. The petitioner could not remain present before the Court below for the reason that Court Clerk has received the notice, but he did not informed the higher authorities about the receiving of notice and therefore there was no appearance on behalf of the petitioner. Learned Court below has failed to consider that the petitioner has initiated the disciplinary proceedings against the erring Clerk and the respondent has failed to produce any relevant documents to establish that she was worked more than 240 days in a year. He submits that the respondent has never worked with the petitioner/Municipal Corporation and that there is no master and servant relationship between them. Counsel for the petitioner further contended that the impugned orders passed by the Court below is bad in law and contrary to the facts in law and evidence. Hence these impugned orders passed by the Court below be set-aside.
4. Per contra, counsel for the respondent has opposed the prayer made by the petitioner and has filed a written reply by stating that the petitioner has filed an application under Order 9 Rule 13 of CPC after a lapse of three months which was time barred and all the orders passed by the Court below is just and proper and is in accordance with law. He submits that notice has been duly served to the petitioner and he has not appeared before the Court below despite having sufficient time and without any valid reason. Therefore the trial Court has rightly proceeded exparte award against the petitioner. Hence the petitioner is not entitled for any relief.
5. I have heard counsel for both the parties at length and perused all the relevant documents along with the petition.
6. Upon perusal of the record and after considering the arguments advanced by Counsel for the petitioner, it appears that the trial Court has held vide order dated 28.02.2019 that despite service of notice, the petitioner did not appear before the Court below and therefore the matter should be heard ex-parte against him.
7. On 27.05.2019, an ex-parte award has been passed against the petitioner by the learned Court below and the copy of award has been sent to Deputy Commissioner, Labour Court for acknowledgment, but before such acknowledgment the petitioner has again filed an application under Section 9 Rule 13 of CPC before the Court below but the same has been dismissed on the ground that permission for publication of award has already been granted to the petitioner.
8. The Hon'ble Apex Court in the case of Haryana Suraj Malting Limited vs. Phoolchand reported in
Compliance with the principles of natural justice is essential for an award to become binding, and an award which is a nullity due to denial of an opportunity of hearing could be challenged and set a....
The central legal point established is the requirement for an award to be passed in compliance with the principles of natural justice, and the possibility of challenging an award as a nullity if suff....
The Labour Court retains jurisdiction to entertain applications to set aside ex-parte awards beyond thirty days when principles of natural justice are not adhered to.
The main legal point established in the judgment is that the Labour Court is not functus officio after the award becomes enforceable, and it has the discretion to entertain applications for setting a....
The importance of timely access to justice and the consequences of inordinate delay in seeking remedies.
The court emphasized that service of summons must be on authorized representatives of corporations, and that labor courts should properly assess merits, not issue mechanical orders.
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