Employer justified in withholding relieving letter/service certificate from employee breaching training bond by premature resignation without notice or damages; Industrial Court cannot grant interim direction for issuance pending contract enforcement.

Judgment:

SANDEEP V. MARNE, J.

1) The Petition involves an interesting issue as to whether the Industrial Court can direct the employer to issue relieving letter/service certificate to the employee who, after securing training, leaves the job before completion of the service agreed in the Bond executed by him with the employer.

2) Petitioner-employer is aggrieved by interlocutory order dated 13 January 2025 passed by the Member, Industrial Court, Mumbai on Application at Exhibit U-2 filed in Complaint (ULP) No. 450 of 2024 by which the Industrial Court has directed Petitioner to issue Relieving Letter / Service Certificate to the Respondent.

3) Respondent has executed a bond in favour of the Petitioner on 7 November 2022 for serving the Petitioner for a period of three years after securing training. However, the Respondent has left the employment of the Petitioner before completion of the bond period. On that account, Petitioner did not issue him Experience Certificate and Relieving Letter. The Respondent has filed Complaint (ULP) No. 450 of 2024 before Industrial Court, Mumbai for issuance of Relieving Letter as well as for payment of monetary dues and unpaid remuneration. In that Complaint, interim order is passed by the Industrial Court for issuance of Relieving Letter / Service Certificate, which interim order is the subject matter of challenge in the present Petition.

4) Petitioner No. 1 is private limited company engaged in the business of providing engineering services to various foreign airlines such as American Airlines, United Airlines, British Airways etc. Petitioner No. 2 is the director of Petitioner No. 1. Respondent was appointed in the service of the Petitioner with effect from 1 February 2019. According to the Petitioner, the Respondent agreed to undergo training on Boeing B777 aircraft to be conducted by its client-American Airlines for securing endorsement/authorization for his engineering license for becoming a qualified/certified engineer. The cost of the training was to be incurred by Petitioner's client-American Airline. On 7 November 2022, Respondent executed Agreement with the Petitioner for undergoing specialized training conducted by American Airlines during the period from 24, 25, 26 October 2022 and from 31 October to 4 November 2022. Under the Agreement, Petitioner had the option of requiring the Respondent to serve it for a period of 3 years upon completion of the training. The Respondent had option of leaving employment by giving 60 days’ notice, but subject to payment of liquidated damages of Rs. 10 lakhs. According to Petitioner, Respondent successfully completed the training imparted by American Airlines. According to the Petitioner, Respondent was contractually obliged to serve with the Petitioner from 7 November 2022 to 6 November 2025. However, Respondent submitted his resignation vide email dated 9 April 2024 without serving 60 days’ notice and without paying liquidated damages of Rs. 10 lakhs. He stopped attending duties from 12 April 2024. Respondent started demanding for a relieving letter and service certificate, which was denied by the Petitioners.

5) Respondent therefore filed complaint of unfair labour practice being Complaint (ULP) No. 450 of 2024 under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act) seeking direction against Petitioner for issuance of relieving letter acknowledging service period and excel