1995 (9) TMI 326 - SC - Indian Laws

Supreme Court affirms pre-emptive complaints before Labour Court for unfair labour practices

Hindustan Lever Ltd Versus Ashok Vishnu Kate & Ors

The Supreme Court upheld the decision of the Division Bench of the Bombay High Court, confirming that complaints regarding contemplated discharge or ... Jurisdiction of the Labour Court functioning under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 regarding entertaining of complaints filed under Section 28(1) of the Maharashtra Act in connection with contemplated discharge or dismissal of the employees alleged to be resorted to by the employer by way of unfair labour practice, as mentioned in Item 1 of Schedule IV of the Maharashtra Act. Whether the sweep of the item can cover any of the alleged general unfair labour practices on the part of the employer, before the employer concerned actually discharges or dismisses the employee on any of the grounds enumerated in clauses (a) to (g). Held that:- Appeal dismissed.The Labour Court concerned should meticulously scan the allegations in the complaint and if necessary, get the necessary investigation made in the light of such complaint and only when a very strong prime facie case is made out by the complainant appropriate interim orders intercepting such domestic enquiries in exercise of powers under Section 30(2) can be passed by the Labour Courts. Such orders should not be passed for mere askance by the Labour Courts. Otherwise, the very purpose of holding domestic enquiries as per the standing orders would get frustrated. Held that:- Issues Involved:1. Jurisdiction of the Labour Court under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.2. Maintainability of complaints filed under Section 28(1) of the Maharashtra Act.3. Interpretation of Item 1 of Schedule IV of the Maharashtra Act.4. Powers of the Labour Court under Section 30(2) of the Maharashtra Act.5. Preventive measures against unfair labour practices.Detailed Analysis:1. Jurisdiction of the Labour Court under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971:The primary issue revolves around whether the Labour Court has jurisdiction to entertain complaints regarding contemplated discharge or dismissal of employees under Section 28(1) of the Maharashtra Act. The Labour Court initially held that such complaints were premature as the actual orders of discharge or dismissal were not passed. However, the appellate Bench of the High Court ruled that the Labour Court could entertain such complaints even before the actual orders were issued.2. Maintainability of Complaints Filed under Section 28(1) of the Maharashtra Act:The employer contended that complaints under Section 28(1) were not maintainable until the final orders of discharge or dismissal were passed. The Division Bench of the High Court, however, ruled that the complaints were maintainable even before the final orders were issued, as the Maharashtra Act aimed to prevent unfair labour practices, including those in the process of being carried out.3. Interpretation of Item 1 of Schedule IV of the Maharashtra Act:Item 1 of Schedule IV deals with general unfair labour practices on the part of employers, specifically the discharge or dismissal of employees on various grounds such as victimisation, not in good faith, or for patently false reasons. The Supreme Court interpreted that the phrase 'to discharge or dismiss' includes not only the final act but also any steps taken towards such discharge or dismissal. This interpretation aligns with the Act's preventive nature, allowing intervention before the unfair labour practice is completed.4. Powers of the Labour Court under Section 30(2) of the Maharashtra Act:Section 30(2) empowers the Labour Court to pass interim orders, including temporary relief or restraining orders, pending the final decision. The Court clarified that such interim orders could be issued even before the final orders of discharge or dismissal are passed, thereby preventing the culmination of unfair labour practices.5. Preventive Measures Against Unfair Labour Practices:The Supreme Court emphasized that the Maharashtra Act is a social welfare legislation designed to prevent unfair labour practices. The Court stated that prevention must occur before the final act of discharge or dismissal. The interpretation that allows complaints to be filed at any stage of the process aligns with the Act's purpose, ensuring that unfair labour practices are nipped in the bud.Conclusion:The Supreme Court upheld the decision of the Division Bench of the Bombay High Court, confirming that complaints regarding contemplated discharge or dismissal could be filed before the Labour Court even before the final orders were passed. The Court emphasized the preventive nature of the Maharashtra Act, allowing intervention at any stage of the process to prevent unfair labour practices. This interpretation ensures that the Act's purpose is fully effectuated, providing comprehensive protection to employees against unfair labour practices. The appeal was dismissed with costs, reinforcing the Labour Court's jurisdiction and the maintainability of pre-emptive complaints under the Act.