Full Judgment Text
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PETITIONER:
HINDUSTAN LEVER LTD.
Vs.
RESPONDENT:
ASHOK VISHNU KATE & ORS.
DATE OF JUDGMENT15/09/1995
BENCH:
MAJMUDAR S.B. (J)
BENCH:
MAJMUDAR S.B. (J)
RAY, G.N. (J)
CITATION:
1996 AIR 285 1995 SCC (6) 326
JT 1995 (6) 625 1995 SCALE (5)400
ACT:
HEADNOTE:
JUDGMENT:
J U D G M E N T
MAJMUDAR. J:
Leave granted.
By consent of learned advocates of the parties, the
appeal is finally heard and is being disposed of by this
judgment.
The short question involved in this appeal centers
round the jurisdiction of the Labour Court functioning under
the Maharashtra Recognition of Trade Unions and Prevention
of Unfair Labour Practices Act, 1971 (hereinafter referred
to as ‘the Act’ for short) 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. The Labour Court in
which the complaints were filed took the view that such
complaints were not maintainable as the actual orders of
discharge or dismissal were yet not passed by the employer.
The learned Single Judge of the Bombay High Court confirmed
that view, but the appellate Bench of the High Court allowed
the writ appeal filed by the respondent-workmen and took a
contrary view. That is how the employer is before us in this
appeal.
BACKGROUND FACTS
----------------
A few relevant facts are required to be noted at the
outset. The predecessor of the present appellant-company,
Hindustan Lever Limited, the Tata Oil Mills Company Limited
served chargesheets on Respondent Nos.1 to 9 for certain
alleged misconduct. Respondent Nos.1 to 9 instituted
Complaint (ULP) Nos. 90 to 98 of 1989 before the Presiding
Officer, First Labour Court, Bombay, alleging therein, inter
alia, that the appellant’s predecessor company had engaged
in commission of unfair labour practices referred to in Item
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1 of Schedule IV of the Maharashtra Act. It was the case of
the respondents in the said complaints that in pursuance of
the show-cause notices, inquiry was being conducted and they
apprehended that their services would be terminated. The
respondents also filed applications for interim relief under
Section 30(2) of the Maharashtra Act seeking interim
injuction restraining the employer-company from continuing
the unfair labour practices complained of and from
terminating the services of the respondents. The Labour
Court passed an ex parte injunction restraining the
employer-company from terminating the services of the
respondents.
The employer-company filed its written statements in
these complaints and among others it was contended that
complaints themselves were not maintainable and were
premature and the Labour Court had no jurisdiction to
proceed with such complaints as jurisdiction of the Labour
Court could not be invoked under Item 1 of Schedule IV of
the Maharashtra Act as long as the proceedings commenced by
the employer-company were not terminated by orders of
discharge or dismissal of the concerned respondents. The
employer-company also resisted the complaints on merits.
The Labour Court by its order dated August 10, 1989,
upheld the preliminary objection of the employer-company and
held that the complaints were not maintainable at that
stage. The Labour Court followed the decision of the learned
Single Judge of the High Court sitting at Nagpur in the case
of Divisional Commissioner, M.S.R.T.C. vs. Presiding Officer
Industrial Court of Maharashtra, Nagpur & Anr. (1989 Mah.
L.J. 798), which had taken a similar view.
The respondent-workmen filed Writ Petition No. 2286 of
1989 under Article 226 of the Constitution of India. The
learned Single Judge of the High Court summarily dismissed
the same on August 21, 1989.
The respondents carried the matter before the Division
Bench of the High Court in appeal, being Appeal No. 952 of
1989. The Division Bench consisting of M.C. Pendse and S.N.
Kapadia, JJ. allowed the said appeal by its decision dated
March 6, 1992, wherein Pendse, J. speaking for the Division
Bench, took the view that the respondents’ complaints were
not premature and the Labour Court had jurisdiction to
entertain such complaints filed before the actual orders of
dismissal or termination were passed by the employer. The
order dated August 10, 1989, passed by the Presiding
Officer, First Labour Court, Bombay, was set aside and the
proceedings were remitted back to the First Labour Court,
Bombay for disposal of the complaints on merits.
The employer-company filed Special Leave Petition (C)
No. 9740 of 1992 in this Court challenging the aforesaid
decision of the Division Bench of the High Court. During the
pendency of this special leave petition, by I.A. No. 4 of
1995, the present appellant-company i.e. the Hindustan Lever
Limited, applied to be substituted in place of the original
petitioner, the Tata Oil Mills Company Limited, on the
ground that the original petitioner had merged with M/s
Hindustan Lever Limited. The said I.A. was allowed and that
is how the present appellant-company has prosecuted this
appeal by special leave. The Employer’s Federation of India
accompanied by M/s Blue Star Limited, also filed I.A. No. 3
of 1992 seeking permission of this Court for intervention as
they were interested in supporting the petitioner-company in
the special leave petition. That application for
intervention was also allowed. The intervenors have filed
their written submission in support of this appeal. They
have also appeared through their learned counsel who was
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heard in this appeal.
RIVAL CONTENTIONS
-----------------
Shri Pai, learned Senior Counsel, appearing for the
appellant-company and the learned counsel for the
intervenors contended that the Division Bench of the High
Court was in error in taking the view that the complaints
filed by the respondent-workmen were maintainable even prior
to the passing of the dismissal or discharge orders, as the
case may be, and that the Labour Court had no jurisdiction
under the Maharashtra Act to proceed with such premature
complaints. In this connection, the learned counsel
submitted that a mere look at Item 1 of Schedule IV shows
that the complaints of unfair labour practice in connection
with the activities mentioned therein on the part of the
employer necessarily contemplated final discharge or
dismissal orders. They submitted that Section 28(1) lays
down the period of limitation for filing complaints before
the Labour Court. The said period has to run from the date
of alleged occurrence and, therefore, the alleged unfair
labour practice must occur by way of dismissal or discharge
before such complaint can be filed. It was next contended
that though the Act deals with prevention of unfair labour
practices, nowhere in the body of the Act in any of the
sections the word ‘Prevention’ is mentioned. According to
the learned counsel, the Division Bench of the High Court
was in error in taking the view that unfair labour practice
is not a penal offence under the Act. Section 48 of the
Maharashtra Act made such unfair labour practice penal. That
the Labour Court under Section 30(2) could pass appropriate
interim order restraining the employer from enforcing on
calling upon the employer to withdraw temporarily the
alleged unfair labour practice of dismissal or discharge of
employee and it was not as if after discharge or dismissal,
such interim relief could not be granted in an appropriate
case by the Labour Court. Reliance was also placed on the
decision of this Court in the case of Chanan Singh vs.
Registrar, Co-operative Societies, Punjab & Ors. (1976 (3)
SCR 685) for submitting that even though a chargesheet is
served by the employer on the concerned employee, there is
still a possibility that it may not actually culminate into
any discharge or dismissal and, therefore, complaint against
proposed dismissal or discharge would be premature.
On the other hand, the learned counsel for the
respondent-employees vehemently submitted that the
Maharashtra Act itself is enacted for prevention of unfair
labour practices, as enumerated in the Schedules and such
labour practices on the part of the employers or the trade
unions of employees, as mentioned in Schedules II, III and
IV, could be prevented in appropriate cases by the concerned
Courts functioning under the Maharashtra Act, which would
necessarily mean that such complaints could be filed prior
to the actual commission of the final act of the unfair
labour practice complained of. The submission of the
appellant’s counsel would make the very scheme of preventing
unfair labour practice inoperative and otios. That the
relevant provisions of the Maharashtra Act clearly
contemplate filing of complaints not only against the final
act of discharge or dismissal of employees by way of unfair
labour practice, but even at stages prior to the final stage
where the employer completes such an exercise. That such was
the view taken years back by the Full Bench of the
Maharashtra Industrial Court and which was followed by all
Courts in Maharashtra functioning under the Maharashtra Act.
That the view taken by the Division Bench of the High Court
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was in consonance with the scheme of the Act and fructified
the said scheme. That it is a social legislation hence a
liberal interpretation should be placed on the scheme of the
Act, with a view to subserve the purpose for which
Maharashtra Act was enacted. That the provisions of the
Industrial Disputes Act fell short of the achievement of
goal of prevention of unfair labour practices. This was
sought to be achieved by the Maharashtra Legislature by
enacting the provisions of the Maharashtra Act and
consequently the interpretation placed by the Division Bench
of the High Court on the relevant provisions of the Act and
the final conclusion to which it reached deserve to be
upheld.
OUR CONCLUSIONS AND THE REASONS FOR THE SAME
--------------------------------------------
Having given our anxious consideration to the rival
contentions, we have reached the conclusion that the
decision of the Division Bench of the Bombay High Court
taking the view that complaints could be filed by the
workmen apprehending discharge or dismissal by way of unfair
labour practice as contemplated by the relevant clauses of
Item 1 of Schedule IV of the Maharashtra Act, even prior to
the actual passing of orders of discharge or dismissal is
well sustained on the scheme of the Act. We now proceed to
elaborate our reasons for the aforesaid conclusion.
Before we deal with the relevant provisions of the
Maharashtra Act, it would be necessary to note that in the
State of Maharashtra, prior to the passing of the
Maharashtra Act, two Acts governing the relations between
the employers and the employees in industries were already
holding the field. One Act was the Bombay Industrial
Relations Act, 1946 (‘B.I.R. Act’ for short) which applied
to certain notified industries under the Act. Various
protections were given under the B.I.R. Act to the workmen
covered by the said Act. But there was no provision
regarding prevention of unfair labour practices either on
the part of the employers or on the part of the unions of
employees. There was also a Central Act, Industrial Disputes
Act, 1947 (‘I.D. Act’ for short) applicable to industries
which were not covered by the B.I.R Act. The Maharashtra Act
was passed by the legislature on February 1, 1972, being
Maharashtra Act 1 of 1972. By that time industries which
were covered by the I.D. Act, which was a Central Act, also
did not have the benefit of any provision regarding
prevention of unfair labour practices. Under the I.D. Act
provision was made for reference by an appropriate
Government of any industrial dispute between the employers
and the employees for adjudication of competent Industrial
or Labour Court, as the case may be. The "Industrial
Dispute" as defined by Section 2(k) of the I.D. Act could be
referred for adjudication to the competent authority as per
Section 10, if the persons applying for reference
represented majority of each party as laid down by Section
10(2). "Industrial Dispute" as defined by Section 2(k) of
the I.D. Act, 1947 provides as under :-
" ‘Industrial Dispute’ means any dispute
or difference between employers and
employers, or between employers and
workmen, or between workmen and workmen,
which is connected with the employment
or non-employment or the terms of
employment or with the conditions of
labour, of any person; "
Only with effect from 1.12.1965, Section 2(A) was inserted
in the I.D. Act wherein even an individual workman could
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raise an industrial dispute in connection with his discharge
or dismissal or otherwise termination of service. For all
other types of industrial disputes, a majority of workmen
had to support the dispute before the appropriate Government
could refer it for adjudication of competent Court. However,
in either case, reference of such industrial dispute had to
be made by the appropriate Government under Section 10 of
the I.D. Act. There was no provision for reference of any
industrial dispute under the Central Act, for preventing any
unfair labour practice, by the time the Maharashtra Act saw
the light of the day. It is, of course, true that by an
amendment to the Industrial Disputes Act Chapter V(c) was
added w.e.f. August 2, 1984, which deals with unfair labour
practice. The "Unfair Labour Practice" as defined by the
I.D. Act in Section 2(ra) means ‘any of the practices
specified in the Fifth Schedule’. When we turn to the Fifth
Schedule to the I.D. Act, we find the cataloguing of unfair
labour practices on the part of the employers, the trade
unions of the employers and on the part of the workmen and
trade unions of workmen, which are almost parimateria with
lists of unfair labour practices on the part of the
employers, on the part of the trade unions and general
unfair labour practices on the part of the employers as
found in Schedules II, III and IV of the Maharashtra Act.
However, even the aforesaid amended provisions of the I.D.
Act concerning unfair labour practice nowhere provide for
any reference of industrial dispute in connection with such
unfair labour practice on the part of the employers which
can entitle the workmen or a body of workmen to seek a
reference for adjudication or for its prevention by any
competent court under the I.D. Act, and all that a workman
can do is to wait till the order of discharge or dismissal
is passed and then he can raise a dispute under Section 2(A)
in connection with his dismissal or discharge and if such
dispute is referred by the appropriate Government for
adjudication of the Labour Court which is entitled to
adjudicate upon such dispute as per the residuary Item 6 of
Schedule II to the I.D. Act, then in such a dispute it can
be shown by the workman that his actual dismissal or
discharge was a result of unfair labour practice as laid
down by clause 5 of part 1 of the Fifth Schedule to the I.D.
Act. However, there is no provision for preventing any
proposed discharge or dismissal by way of unfair labour
practice on the part of the employer as per the statutory
scheme of the I.D. Act, even after the insertion of Chapter
V(c) in that Act. On the other hand, more than a decade
before the aforesaid amendment was brought in the I.D. Act,
which fell short of providing for prevention of unfair
labour practice, the Maharashtra Legislature as early as in
1972 enacted the Maharashtra Act providing for such
prevention. Similarly as noticed earlier the B.I.R. Act also
did not offer any remedy to the workmen to raise a dispute
regarding prevention of any unfair labour practice on the
part of the employer who had set in motion machinery for
discharging or dismissing workmen by way of alleged unfair
labour practice. Thus, in the background of the then
existing lacuna both under the Central Act, i.e. the I.D.
Act and the B.I.R. Act regarding any provision for
prevention of unfair labour practice, we will have to
examine the scheme of the Maharashtra Act which seeks to
provide a remedy for prevention of such unfair labour
practices and to find out how it supplies the lacuna and
tries to achieve its goal.
SCHEME OF THE MAHARASHTRA ACT
-----------------------------
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The preamble of the Act lays down as under :-
"An Act to provide for the recognition
of trade unions for facilitating
collective bargaining for certain
undertakings; to state their rights and
obligations; to confer certain powers on
unrecognised unions; to provide for
declaring certain strikes and lock-outs
as illegal strikes and lock-outs; to
define and provide for the prevention of
certain unfair labour practices; to
constitute courts (as independent
machinery) for carrying out the purposes
of according recognition to trade unions
and for enforcing the provisions
relating to unfair practices; and to
provide for matters connected with the
purposes aforesaid.
WHEREAS, by Government Resolution,
Industries and Labour Department, No.
IDA. 1367-LAB-II, dated the 14th
February 1968, the Government of
Maharashtra appointed a Committee called
"the Committee on Unfair Labour
Practices" for defining certain
activities of employers and workers and
their organisations which should be
treated as unfair labour practices and
for suggesting action which should be
taken against employers or workers, or
their organisations, for engaging in
such unfair labour practices;
AND WHEREAS, after taking into
consideration the report of the
Committee Government is of opinion that
it is expedient to provide for the
recognition of trade unions for
facilitating collective bargaining for
certain undertakings; to state their
rights and obligations; to confer
certain powers on unrecognised unions;
to provide for declaring certain strikes
and lock-outs as illegal strikes and
lock-outs; to define and provide for the
prevention of certain unfair labour
practices; to constitute courts (as
independent machinery) for carrying out
the purposes or according recognition to
trade unions and for enforcing
provisions relating to unfair practices;
and to provide for matters connected
with the purposes aforesaid; It is
hereby enacted in the Twenty-second Year
of the Republic of India as follows:-
............."
The preamble of the Act clearly indicates that the
Maharashtra Act is brought on the statute book with the
avowed purpose of regulating the activities of trade unions
and for preventing certain unfair labour practices both on
the part of unions of employees as well as the employers. As
laid down by Section 2(3) of the Act, the Act has to apply
to the industries to which B.I.R. Act, for the time being
applies and also to any industry as defined in clause (j) of
Section 2 of the I.D. Act and also to the State Government
which in relation to any industrial dispute concerning such
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industry is the appropriate Government under that Act. Thus,
the Act sought to supplement and cover the field for which
the concerned industries governed by the then I.D. Act and
B.I.R. Act did not get any coverage and that field was
obviously amongst others the field pertaining to prevention
of unfair labour practices as defined by the Act.
"Unfair labour practices" as per Section 3(16) mean
unfair labour practices as defined in Section 26. When we
turn to Section 26, we find that it occurs in chapter VI
dealing with unfair labour practices. It provides that in
this Act, unless the context requires otherwise, "unfair
labour practices" mean any of the practices listed in
Schedules II, III and IV. That takes us to the concerned
Schedules.
Schedule II of the Act deals with unfair labour
practices on the part of the employers. Schedule III of the
Act deals with unfair labour practices of trade unions of
employees and then comes Schedule IV which deals with
general unfair labour practices on the part of the
employers. As we are directly concerned with Item 1 of
Schedule IV of the Act, it is necessary to reproduce the
said item with all its clauses at this stage.
SCHEDULE IV
General Unfair Labour Practices on
the Part of employers
1. To discharge or dismiss employees-
(a) by way of victimisation ;
(b) not in good faith, but in
colourable exercise of the employer’s
rights;
(c) by falsely implicating an
employee in a criminal case on false
evidence or on concocted evidence;
(d) for patently false reasons;
(e) on untrue or trumped up
allegations of absence without leave;
(f) in utter disregard of the
principles of natural justice in the
conduct of domestic enquiry or with
undue haste :
(g) for misconduct of a minor or
technical character, without having any
regard to the nature of the particular
misconduct or the past record of service
of the employee, so as to amount to a
shockingly disproportionate punishment."
A mere look at Item 1 of Schedule IV shows that it
would be a general unfair labour practice on the part of the
employer to discharge or dismiss employees on any of the
grounds mentioned in clauses (a) to (g) of this Item. On
this aspect there is no dispute between the parties. The
moot question is 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). Let us take an
illustration to see how this item operates. If an employer
discharges or dismisses an employee by way of victimisation
it would be a complete unfair labour practice on his part as
contemplated by clause (a) of Item 1 of Schedule IV. As we
have seen above, the Act is enacted with a view to prevent
such unfair labour practice. Therefore, the question
squarely arises as to how such an unfair labour practice of
discharge or dismissal of an employee by way of
victimisation can be prevented. If it is to be prevented, it
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has to be prevented from taking effect or getting completed.
Therefore, the intervention of the Labour Court can be
sought where the concerned general unfair labour practice on
the part of the employer to discharge or dismiss an employee
by way of victimisation has not resulted into its
culmination but it is in pipeline or process. Under the
standing orders governing the concerned industries, before
an employee can be discharged or dismissed on the ground of
any misconduct, departmental enquiry has to be held.
Consequently, taking the initial step towards the direction
of discharging or dismissing of any employee on the ground
of any misconduct by issuing a chargesheet can be said to be
the first action taken by the employer towards such ultimate
discharge or dismissal of an employee. It can then be said
that the process of alleged unfair labour practice on the
part of the employer to discharge or dismiss an employee on
ground (a) mentioned in Item 1 of Schedule IV is started or
has got initiated or is triggered off by the employer. If an
employee can make out a strong prime facie case for
interdiction of such a process, he can legitimately invoke
the jurisdiction of the Labour Court for preventing such an
unfair labour practice from getting fructified or completed.
In his connection, it is necessary to note that the general
unfair labour practice on the part of the employers as
mentioned in Item 1 of Schedule IV pertains to different
types of objectionable actions based on grounds which are
indicative of unfair labour practices and any action based
on such grounds with a view to discharge or dismiss an
employee is considered by the Act to be an unfair labour
practice on the part of the employer.
The Division Bench of the High Court for coming to its
conclusion has heavily relied upon the words "to discharge
or dismiss employees" as found in Item 1 of Schedule IV. We
find that the term "to discharge or dismiss" does indicate
even attempted action towards such discharge or dismissal.
In this connection, we may profitably refer to the meaning
of the term "to" as found in various dictionaries as the
said term is not defined by the Maharashtra Act.
In Concise Oxford Dictionary, New Seventh Edition,
Oxford University Press, at page 1124, one of the meanings
of the word "to" is mentioned as under:-
"In the direction of (place, person,
thing, condition, quality, etc.; with or
without implication of intention or of
arrival..."
In Collins English Dictionary, at page 1525, one of the
meanings of the word "to" is as under:-
"used to indicate the destination of the
subject or object of an action: he
climbed to the top."
In Words and Phrases, Permanent Edition, Volume 41A, at
page 418, one of the meanings of the word "to" is amplified
as under:-
"The word "to" means indicating anything
regarded as a terminal point or limit in
the direction of which there is movement
and at which there is arrival or in the
direction of which there is movement or
tendency without arrival."
In Stroud’s Judicial Dictionary, 5th Edition, volume 5,
at page 2646, one of the meanings of the word "to" is
mentioned as under:-
"(3) "To" wills often mean "towards."
The plaintiff effected a marine policy,
subject to rules one of which was that
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ships were not to sail from any port on
the east coast of Great Britain "to" any
port in the Belts between December 20
and February 15. The plaintiff’s vessel
sailed on February 8 for a port in the
Belts, and was lost; held, that the rule
in question was a warranty and not an
exception; and that the word "to" in the
rule meant "towards" and not "arriving
at" (Colledge v. Harty 6 Ex. 205)
(4) "To or towards": see R. v. M’Carthy
[1903] 2 Ir. R. 156, cited INTIMIDATE."
It becomes, therefore, obvious that general unfair
labour practice on the part of the employer to discharge or
dismiss the employee on any of the grounds listed in clauses
(a) to (g) of Item 1 of Schedule IV would include any step
towards or in the direction of ultimate discharge or
dismissal of the employee on that ground and even before
such discharge or dismissal is finally arrived at. It is not
possible to accept the contention of the learned counsel for
the appellant that discharge or dismissal of any employee
would only mean the confirmed act of discharge or dismissal
on any of these grounds and not a penultimate step taken by
the employer concerned in that direction on that ground.
Therefore, on the express language of Item 1 of Schedule IV
the general unfair labour practice on the part of the
employer "to" discharge or dismiss an employee on any of the
listed grounds would include both the final act of discharge
or dismissal of employee on any of these grounds as well as
any penultimate step taken towards that destination and
object by starting the process of disciplinary enquiry on
giving the chargesheet to the employee and/or suspending an
employee pending or in contemplation of such enquiry and all
further steps during such departmental enquiry about which a
complaint can be made on permissible grounds.
It was next vehemently contended by the learned counsel
for the appellant that if the very attempt on the part of
the employer by initiating departmental proceedings is tried
to be covered by a complaint by the employee on any of the
grounds mentioned in clauses (a) to (g) of Item 1 of
Schedule IV, then, some of the clauses themselves would
contra-indicate such a construction as they can be applied
only at the final stage where such discharge or dismissal of
the employee takes place. Clause (g) of Item 1 of Schedule
IV was pressed in service by way of illustration. It was
submitted that before this clause can apply it must be shown
that the punishment given is shockingly disproportionate to
the charge and that such an eventuality would arise only
when the punishment in question has already been inflicted.
Now it is obvious that at the stage when such a shockingly
disproportionate punishment is given, this clause would
certainly get attracted, but that does not mean that it
could not be demonstrated even earlier, if there are facts
available in a case, that for a trifle or mere minor or
negligible misconduct, the employer proposes to discharge or
dismiss the employee.
The learned counsel for the respondents has rightly
given an example where clause (g) of Item 1 of Schedule IV
can apply even prior to the final order of discharge or
dismissal of an employee. It was submitted that if the
chargesheet itself alleges that the worker-employee did not
get up when the Officer entered his office and, therefore,
it was proposed to discharge the employee, even mere reading
of the chargesheet can be pressed in service for submitting
that the proposed enquiry is for imposing a punishment
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shockingly disproportionate to the misconduct alleged in the
chargesheet. Therefore, it is not as if when such a
grievance is made, the Labour Court cannot be approached for
preventing such an unfair labour practice from getting
culminated and that the workman is to wait till such
shockingly disproportionate punishment actually comes to be
imposed. Then there would be nothing left to be prevented.
It would be like bolting the doors of the stable after the
horses have fled. We, therefore, hold that on the express
language of Item 1 of Schedule IV complaint can be filed for
the alleged unfair labour practice which is in the offing
and towards which a firm step is taken by the employer. It
is in the light of the aforesaid scheme of Item 1 of
Schedule IV that we have to turn to the remaining relevant
sections of the Act.
Section 27 lays down as under:-
"No employer or union and no employees
shall engage in any unfair labour
practice."
Thus there is total embargo on the unions of the employees
as well as the employees and also on the employer on
engaging in any unfair labour practice. Once it is found
that Item 1 of Schedule IV covers general unfair labour
practices on the part of the employer consisting of not only
final discharge or dismissal of employee on any of the
grounds mentioned in Item 1 but also any action taken by
initiating the process towards such ultimate discharge or
dismissal of the employee, Section 27 of the Maharashtra Act
gets attracted even at a prior stage when such unfair labour
practice is sought to be resorted to by the employer by
engaging himself in such an unfair labour practice. In other
words, to take an illustration, if it is alleged in a given
case that the employer seeks to discharge or dismiss an
employee by way or dismiss an employee by way of
victimisation and for that purpose he has initiated the
process of departmental enquiry by issuing the chargesheet
to the employee concerned, the employee concerned can
legitimately urge that the employer is guilty of such unfair
labour practice in which he seeks to engage himself and,
therefore, the prohibition enshrined in Section 27 gets
squarely attracted against him. It is not as if that in such
a case the employer can be said to have engaged himself in
any unfair labour practice of discharging or dismissing the
employee by way of victimisation only after the ultimate
stage is reached and the order of discharge or dismissal
sees the light of the day. The prohibition against
engagement in any unfair labour practice as mentioned in
Section 27 will cover all stages from the beginning to the
end, when the process which is initiated by the concerned
employer or the union in connection with the alleged unfair
labour practice starts and ultimately terminates.
The next Section which is relevant is Section 28(1) of
the Maharashtra Act. Section 28 was pressed in service by
both the sides for supporting their respective contentions.
Section 28(1) contemplates types of complaints which can be
filed under the Act. So far as Item 1 of Schedule IV is
concerned, the competent Court as per Section 7 of the Act
will be the Labour Court as the said section provides that
it shall be the duty of the Labour court to decide
complaints relating to unfair labour practices described in
Item 1 of Schedule IV and to try offences punishable under
this Act, and the complaints regarding the rest of the
unfair labour practices can be dealt with by the Industrial
Court under Section 5.
As per Section 28(1) any complaint regarding the
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general unfair labour practice on the part of the employer
to discharge or dismiss employee on the grounds mentioned in
Item 1 of Schedule IV can be filed before the Labour Court.
Such a complaint can cover both types of grievances against
the employer; (1) that he has engaged in any unfair labour
practice and (2) or he is engaging in any unfair labour
practice. The learned counsel for the appellant submitted
that though the Act is enacted with a view to prevent such
unfair labour practices, there is no whisper about such
prevention in any of the operative sections of the Act. This
submission cannot be accepted in the light of the express
language of section 28(1) and the types of complaints
contemplated by it, as aforesaid. As per Section 28(1) of
the Maharashtra Act an employee can file a complaint against
the employer on the ground that the employer has engaged in
unfair labour practice to discharge or dismiss employee by
way of victimisation etc. For the purpose of illustration,
we may take clause 1 of Item 1 of Schedule IV to highlight
the scheme of this section. If an employee files a complaint
before the Labour Court alleging that the employer has
engaged in unfair labour practice to dismiss or discharge
him by way of victimisation, it would contemplate a
completed act, namely, an order of discharge or dismissal
that might have been passed, because the term "has engaged"
represents a present perfect tense, meaning thereby an
action which has got completed in presenting. The learned
counsel for the appellant could have submitted with emphasis
that the complaint could be filed on the ground of alleged
unfair labour practice on the part of employer to discharge
or dismiss an employee by way of victimisation only after
the action was completed and the discharge or dismissal was
effected on that ground if Section 28(1) would have
contained only the words "has engaged". But the legislature
has conferred jurisdiction on the Labour Court to entertain
the complaints also on the additional ground that the
employer is engaged in any unfair labour practice. This
clearly indicates a present continuous action as it reflects
a present continuous tense. That would include a complaint
regarding the employer, who at present is engaging in the
alleged unfair labour practice by way of victimisation. That
would indicate actions which are contemplated and in
pipeline but which are still not finally completed. If the
learned counsel for the appellant is right that only the
final act of discharge or dismissal can be covered by the
sweep of Section 28(1), then the terminology used by the
Legislation "or is engaging in any unfair labour practice"
would be rendered totally redundant and otios, as such a
completed action would already stand covered by the earlier
phrase "has engaged in any unfair labour practice". Similar
words are found in Section 30(1) which deals with powers of
the Courts and provides that where the Court decides that
any person named in the complaint has engaged in, or is
engaging in, any unfair labour practice, it may by its order
give relief as mentioned in clauses (a), (b) and (c) of that
sub-section. A conjoint reading of Section 28(1) and Section
30(1) clearly shows that complaint can be filed for the
alleged unfair labour practice as contemplated in Item 1 of
Schedule IV on any of the grounds mentioned therein, both at
the stage where such final orders of discharge or dismissal
are passed on the concerned alleged grounds and also at the
stages prior to such final orders, once the employer is
shown to have taken a firm step in that direction by
initiating departmental enquiries with a view to ultimately
discharge or dismiss the employee on any of the alleged
grounds and such enquiries are presently in progress or are
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presently in offing. Then the employer can be said to be
presently engaging in any such unfair labour practice. It
becomes obvious that the twin phrases ‘has engaged’ and ‘is
engaging in’ indicate not only the finished, complete or
continuous action but also an incomplete continuous action.
In this connection, we may profitably look at what is
said in Black’s Law Dictionary, 6th Edition, at page 528,
about the term "Engage", which reads as under:-
"To employ or involve one’s self; to
take part in; to embark on."
In Stroud’s Judicial Dictionary, 5th Edition, at page
847, the term "engaged in discharging" has been dealt with
as under:-
"A lighter or craft is "engaged in
discharging" ballast or goods, within an
exemption from dock dues, if she goes to
the place of discharge in the dock with
the real intention of discharging there,
although, from the place getting too
full to take the ballast or goods, the
vessel has to depart without making any
discharge (London & India Docks Co. v.
Thames Steam Tug, etc., Co. (1909) A.C.
15)"
It becomes, therefore, obvious that if an employer is
alleged to be engaged in discharging any employee then even
before the actual order of discharge is passed he can be
said to be engaged in such discharge if it is shown that an
attempt is made towards such a discharge with an intention
to ultimately discharge the employee.
We may also refer to Section 28(3), which empowers the
concerned Court on receipt of the complaint under Section
28(1) to cause an investigation into the said complaint to
be made by the investigating officer, if thought necessary
and direct that a report in the matter may be submitted by
him to the Court, within the period specified in the
direction. Therefore, it is not as if that the moment a
complaint is filed the Labour Court can mechanically pass an
order intercepting the proceedings of any departmental
enquiry. It can in appropriate cases even cause a
preliminary enquiry about the correctness of the allegations
in the complaint through the investigating officer.
Before parting with Section 28(1) an argument submitted
by the learned counsel for the appellant is required to be
noted. It was submitted that limitation for filing
complaints under Section 28(1) is to start from the date of
occurence of unfair labour practice and that date of
occurrence of the alleged unfair labour practice could be
only the date when the final orders of discharge or
dismissal are passed by the employer and are challenged on
any of the grounds mentioned in Item 1 of Schedule IV. It is
not possible to agree with this contention. As we have
already seen earlier, Item 1 of Schedule IV would cover in
the sweep of general unfair labour practice on the part of
the employer even the initiation of proceedings or taking
any other firm step like suspension, towards discharge or
dismissal of the employee concerned, which can be challenged
on the grounds mentioned in Item 1 of Schedule IV. Such
initiation of proceedings or firm steps themselves would be
the occurrence of the alleged unfair labour practices and
would give a cause of action to the complainant to file the
complaint under Section 28(1) within the period of
limitation as laid down therein. It is not as if that the
occurrence of unfair labour practice can be only of one
type, that is, the final order of discharge or dismissal as
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assumed by the learned counsel for the appellant. The nature
of the order which the Court can pass on such complaint is
indicated by clauses (a), (b) and (c) of Section 30(1),
which read as under:-
"30.(1) Where a Court decides that any
person named in the complaint has
engaged in, or is engaging in, any
unfair labour practice, it may in its
order -
(a) declare that an unfair practice has
been engaged in or is being engaged in
by that person, and specify any other
person who has engaged in, or is
engaging in the unfair labour practice;
(b) direct all such persons to cease and
desist from such unfair labour practice,
and take such affirmative action
(including payment of reasonable
compensation to the employee or
employees affected by the unfair labour
practice, or reinstatement of the
employee or employees with or without
back wages, or the payment of reasonable
compensation), as may in the opinion of
the Court be necessary to effectuate the
policy of the Act;
(c) where a recognised union has engaged
in or is engaging in, any unfair labour
practice, direct that its recognition
shall be cancelled or that all or any of
its rights under sub-section (1) of
Section 20 or its right under section 23
shall be suspended."
Even this provision when read with Item 1 of Schedule IV
shows that after adjudication the Labour Court can declare
that the concerned employer not only has engaged in unfair
labour practice, but is being engaged in such unfair labour
practice and such engagement in unfair labour practice
continues and has not ended. This also clearly indicates
that the complaint can be made regarding the alleged actions
of the employer which amount to unfair labour practice, but
which have not yet finally culminated into ultimate orders
but are in the pipeline or are being attempted to be passed
and proceedings are initiated for passing such ultimate
orders which are alleged to be contrary to Item 1 of
Schedule IV of the Maharashtra Act.
Sub-section (2) of Section 30 of the Maharashtra Act
lays down:-
"In any proceeding before it under this
Act, the Court, may pass such interim
order (including any temporary relief or
restraining order) as it deems just and
proper (including directions to the
person to withdraw temporarily the
practice complained of, which is an
issue in such proceeding), pending final
decision :
Provided that, the Court may, on an
application in that behalf, review any
interim order passed by it."
The learned counsel for the appellant submitted that even if
the final order of discharge or dismissal is passed by the
employer by way of victimisation as alleged by the employee,
the Labour Court in the complaint regarding such final order
can pass interim orders of temporary relief or restraining
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order. Still it would not rule out the possibility on the
part of the Labour Court of passing an interim order pending
the domestic enquiry if any of the grounds mentioned in Item
1 of Schedule IV is effectively pressed in service by the
employee against the employer. It is obvious that when the
final order of discharge or dismissal is passed and if it is
found to be a result of unfair labour practice as mentioned
in clauses (a) to (g) of Item 1 of Schedule IV, it is to be
quashed and reinstatement is to be ordered by way of
mandatory relief. In such a case there would be no occasion
of granting interim relief by way of prohibitory order or a
restraining order, as contemplated by sub-section (2) of
Section 30. Such a restraining order can be passed in a case
where the complaint is filed at a stage where the final
orders of discharge or dismissal are not passed on any of
the grounds mentioned in Item 1 of Schedule IV. If such a
complaint is ruled out the provisions of Section 30(2) would
be rendered redundant and otios. When we keep in view the
fact that as per Section 7 of the Maharashtra Act, all the
complaints pertaining to Item 1 of Schedule IV can be filed
only before the Labour Court and no other complaint
regarding unfair labour practice can be filed before the
Labour Court, and once the Labour Court is given the powers
in appropriate cases of passing interim relief of
restraining orders as per Section 30(2) it would clearly
indicate the legislative intention that complaints regarding
the proposed dismissal or discharge on any of the grounds
mentioned in Item 1 of Schedule IV could be filed before the
Labour Court. In such complaints the Labour Court in
appropriate cases, in exercise of its powers under Section
30 (2) can issue interim orders with a view to preventing
such alleged unfair practices from getting fructified. Thus
Section 30(2) also highlights the legislative intent of
providing an effective machinery to prevent the finalisation
of the alleged unfair practices which are required to be
nipped in the bud. If the orders of the Court whether final
on interim are not complied with by the party against whom
such orders are passed, it can be prosecuted under sub-
section (1) of Section 48, which lays down as under :
"48.(1) Any person who fails to comply
with any order or the Court under clause
(b) of sub-section (1) or sub-section
(2) of Section 30 of this Act shall on
conviction, be punished with
imprisonment which may extend to three
months or with fine which may extend to
five thousand rupees."
Having seen the aforesaid relevant provisions, we may
now consider the main contentions canvassed by the learned
counsel for the appellant. It was vehemently submitted by
the learned counsel for the appellant and also by the
learned counsel for the intervenors that the High Court was
in error when it took the view that unfair labour practice
is not punishable under the Maharashtra Act. In this
connection, our attention was invited to Section 25-U of the
Industrial Disputes Act which reads as under:
"Penalty for committing unfair labour
practices. - Any person who commits any
unfair labour practice shall be
punishable with imprisonment for a term
which may extend to six months or with
fine which may extend to one thousand
rupees or with both."
Our attention was also invited to Section 25-T of the
Industrial Disputes Act which reads as under :
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"Prohibition of unfair labour practice.
- No employer or workman or a trade
union, whether registered under the
Trade Unions Act, 1926 (16 of 1926), or
not, shall commit any unfair labour
practice."
When we keep the relevant provisions of the Industrial
Disputes Act concerning unfair labour practices in view and
compare these provisions with the provisions of the
Maharashtra Act, a clear difference becomes obvious. Section
25-T of the Industrial Disputes Act prohibits an employer or
workman or a trade union from committing any unfair labour
practice. While so far as Section 27 of the Maharashtra Act
is concerned, it prohibits an employer or union or employee
from engaging in any unfair labour practice. Consequently
the prohibition under the Industrial Disputes Act is against
the commission of unfair labour practice which may include
the final acts of such commission. While Section 27 of the
Maharashtra Act prohibits the concerned party even from
engaging in any unfair labour practice. The word ‘engage’ is
more comprehensive in nature as compared to the word
‘commit’. But even that apart, Section 25-U provided for
penalty for committing unfair labour practice and mandates
that whoever is guilty of any unfair labour practice can be
prosecuted before the competent court on a complaint made by
or under the authority of an appropriate Government under
Section 34(1) read with Section 25-U of the Industrial
Disputes Act. So far as the Maharashtra Act is concerned,
there is no direct prosecution against a party guilty of
having engaged in any unfair labour practice. Such a
prosecution has first to be preceded by an adjudication by a
competent court regarding such engagement in unfair labour
practice. Thereafter, it should culminate into a direction
under Section 30(1)(b) or it may be a subject matter of
interim relief order under Section 30(2). It is only
thereafter that prosecution can be initiated against the
concerned party disobeying such orders of the Court as per
Section 48(1). Consequently, it cannot be said that the
Division Bench of the Bombay High Court was not right when
it took the view that the act of engaging in any unfair
labour practice by itself is not an offence under the
Maharashtra Act while such commission of unfair labour
practice itself is an offence under the Industrial Disputes
Act. However, this aspect is not much relevant for deciding
the controversy with which we are concerned.
As we have discussed above, the legislation intends to
prevent commission of unfair labour practices through the
intervention of the competent court and for that very
purpose, the Act is enacted. This is clearly reflected by
the provisions of Section 28(1) and Section 30(1) of the
Maharashtra Act.
As already discussed earlier, it is trite to say that
if ‘to discharge or dismiss an employee by way of
victimisation’ is a general unfair labour practice on the
part of the employer as laid down by Item 1(a) of Schedule
IV and if such an unfair labour practice is to be prevented
then action for such prevention has to be taken prior to the
ultimate commission of such unfair labour practice. It is
difficult to agree with the contention of the learned
counsel for the appellant that such prevention can be made
only after the actual order of discharge or dismissal of the
employee is passed. At that stage there is no question of
preventing the commission of such unfair labour practice,
but it would be a case of setting aside or quashing such
already committed unfair labour practice. It is difficult to
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appreciate how a discharge or dismissal of an employee by
way of victimisation can be prevented after such discharge
or dismissal has already taken place. Once such an unfair
labour practice is completed and if final order is to be set
aside it would amount to curing the melody rather than
preventing it. As the saying goes ‘prevention is better than
cure’, and that is the very purpose of the Act. Or in other
words, prevention of commission of such unfair labour
practice is the heart of the Act. The interpretation tried
to be put by the learned counsel for the appellant on the
relevant provisions of Item 1 of Schedule IV would result in
stultifying the very purpose and scope of the Act.
We may also keep in view the fact that prevention of
unfair labour practice, as per the Act, is aimed not only
against the employers, but also against the employees and
their trade unions, if they are alleged to engage themselves
in any of the unfair labour practice mentioned in Schedule
III. Let us take illustrations of unfair labour practice on
the part of the trade unions as mentioned in Items 5 and 6
of Schedule III which read as under:
"5. To stage, encourage or instigate
such forms of coercive actions as
willful "go slow" squatting on the work
premises after working hours or "gherao"
of any of the members of the managerial
or other staff.
6. To stage demonstrations at the
residences of the employers or the
managerial staff members."
It becomes obvious that if an employer files a complaint
before the Industrial Court under Item 5 or 6 of Schedule
III that the Union is seeking to stage, encourage on
instigate such forms of coercive actions as willful ‘go
slow’ or seeks to demonstrate at the residence of employers
and if such an action is to be prevented a complaint has to
be filed before the actual demonstration takes place or
actual ‘go slow’ policy is resorted to. Once such an action
takes place there would remain no occasion to prevent such
an action in good time. Consequently, on the same lines it
cannot be said that unfair labour practice on the part of
the employer also cannot be prevented till the actual unfair
labour practice gets committed by him. We have also to keep
in view that the Maharashtra Act is a social welfare
legislation and in interpreting such a welfare legislation,
such a construction should be placed on the relevant
provisions which effectuates the purpose for which such
legislation is enacted and does not efface its very purpose
of prevention of unfair labour practice.
In this connection, we may usefully turn to the
decision of this Court in Workmen of American Express
International Banking Corporation v. Management of American
Express International Banking Corporation (1985 (4) SCC 71)
wherein Chinnappa Reddy,J., in para 4 of the Report has made
the following observations:
"The principles of statutory
construction are well settled. Words
occurring in statutes of liberal import
such as social welfare legislation and
human rights legislation are not to be
put in Procrustean beds or shrunk to
Liliputian dimensions. In construing
these legislations the imposture of
literal construction must be avoided and
the prodigality of its misapplication
must be recognised and reduced. Judges
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ought to be more concerned with the
‘colour’, the ‘content’ and the
‘context’ of such statutes (we have
borrowed the words from Lord
wilberforce’s opinion in Prenn v.
Simmonds). In the same opinion Lord
Wilberforce pointed out that law is not
to be left behind in some island of
literal interpretation but is to enquire
beyond the language, unisolated from the
matrix of facts in which they are set;
the law is not to be interpreted purely
on internal linguistic considerations.
In one of the cases cited before us,
that is, Surendra Kumar Verma v. Central
Government Industrial Tribunal-cum-
Labour Court we had occasion to say.
Semantic luxuries are misplaced in
the interpretation of "bread and butter"
statutes. Welfare statutes must, of
necessity, receive a broad
interpretation. Where legislation is
designed to give relief against certain
kinds of mischief, the Court is not to
make inroads by making etymological
excursions."
Francis Bennion in its ‘Statutory Interpretation’
Second Edition, has dealt with the Functional Construction
Rule in part XV of his book. The nature of purposive
construction is dealt with in Part XX at page 659 thus:
"A purposive construction of an
enactment is one which gives effect to
the legislative purpose by -
(a) following the literal meaning of
the enactment where that meaning is in
accordance with the legislative purpose
(in this Code called a purposive-and-
literal construction), or
(b) applying a strained meaning where
the literal meaning is not in accordance
with the legislative purpose (in the
Code called a purposive-and-strained
construction)."
At page 661 of the same book, the author has considered the
topic of Purposive Construction in contrast with literal
construction. The learned author has observed as under:
"Contrast with literal construction
Although the term ‘purposive
construction’ is not new, its entry into
fashion betokens a swing by the
appellate courts away from literal
construction. Lord Diplock said in 1975:
‘If one looks back to the actual
decisions of the [House of Lords] on
questions of statutory construction over
the last 30 years one cannot fail to be
struck by the evidence of a trend away
from the purely literal towards the
purposive construction of statutory
provisions’. The matter was summed up by
Lord Diplock in this way-
"... I am not reluctant to adopt a
purposive construction where to apply
the literal meaning of the legislative
language used would lead to results
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which would clearly defeat the purposes
of the Act. But in doing so the task on
which a court of justice is engaged
remains one of construction, even where
this involves reading into the Act words
which are not expressly included in it."
Following the aforesaid rule of construction,
therefore, we must hold that the interpretation of Item 1 of
Schedule IV of the Maharashtra Act as canvassed by the
learned counsel for the appellant and the intervenors would
frustrate the very scope and ambit of the Maharashtra Act,
in effectuating the prevention of the alleged unfair labour
practice. While on the other hand, if a wider interpretation
is placed on the relevant provisions of Item 1 of Schedule
IV, as discussed earlier, apart from not straining the
language which even may become permissible on the rule of
purposive construction, the said construction would fructify
the very purpose for which the Maharashtra Act was enacted.
Before concluding this discussion, we may refer to the
judgment of this Court in Chanan Singh’s case (supra) on
which strong reliance was placed by the learned counsel for
the appellant. Sh. Pai submitted that when merely a show
cause notice is issued for taking action against an
employee, if it is challenged in the Court, it would be a
premature challenge. We fail to appreciate how the aforesaid
decision can be pressed in service by the learned counsel
for interpreting the relevant provisions of Item 1 of
Schedule IV of the Maharashtra Act. In the aforesaid
decision, this Court held that when a show cause notice is
issued against punishment, a writ petition under Articles
226 and 227 would be premature as there would be no
grievance of punitive action which can be ventilated in the
Court. This decision was based on the general principle that
against mere show cause notice, writ petition would be
premature. The ratio of that decision cannot be of any
assistance for interpreting the express language of Item 1
of Schedule IV of the Maharashtra Act read with its other
relevant provisions, which are meant to prevent the
commission of unfair labour practice by arming the
appropriate Courts with jurisdiction to look into such
complaints. For all these reasons, therefore, it must be
held that the Division Bench of the High Court was perfectly
justified in taking the view that a contemplated action for
dismissal or discharge of an employee on any of the grounds
mentioned in Item 1 of Schedule IV of the Maharashtra Act
could be made the subject-matter of complaint before the
Labour Court under Section 28(1) of the Maharashtra Act. We
have to keep in view the fact that the Maharashtra Act is in
the field since more than two decades and even a Full Bench
of the Industrial Court, Maharashtra by its unanimous
decision dated September 28, 1984 had taken the same view
and on that basis numerous complaints were entertained by
the Labour Courts in Maharashtra over decades. It was only
when a learned Single Judge of the High Court sitting at
Nagpur, by his decision dated April 27, 1989 struck a
discordant note that the present controversy cropped up. In
our view, no fault can be found with the reasoning adopted
by the Division Bench of the Bombay High Court for
overruling the said contrary decision of the learned Single
Judge of the Bombay High Court sitting at Nagpur in Writ
Petition No. 2607 of 1988.
Mr. Pai, learned senior counsel for the appellant, also
argued that Item 1 of Schedule II refers to the threat given
by the employer to discharge or dismiss the employees if
they join the union. Thus, even a threat is considered to be
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an unfair labour practice as per this Item. While, the
unfair labour practice mentioned in Item 1 of Schedule IV
does not cover any threat but actual order of discharge or
dismissal. It is not possible to agree. The reason is
obvious. A mere threat to discharge or dismiss an employee
if he joins a union by itself may be an unfair labour
practice as per Item 1(a) of Schedule II though the threat
might not have been translated into any attempt in the
direction of discharge or dismissal. Still, such a threat
would constitute unfair labour practice, which can be
prevented by filing appropriate complaint before the
Industrial Court under Section 5 read with Section 28(1).
But if the employer takes a concrete step towards
discharging or dismissing an employee on any of the grounds
contemplated by Item 1 of Schedule IV, then it would not be
in the realm of mere threat but would be translated into an
actual action of taking a calculated step towards such
alleged contemplated unfair labour practice by serving
chargesheet and starting departmental enquiry and/or putting
the employee under suspension with the ultimate object in
view. Act that stage the alleged unfair labour practice of
engaging in discharging or dismissing the employee on the
grounds contemplated in Item 1 of Schedule IV can be said to
have taken place. It is obvious that if an employer merely
threatens the employee to discharge him by way of
victimisation etc. and such a threat is not followed by any
attempt by way of starting departmental enquiry or taking
any other concrete step as aforesaid, such a simplicitor
threat would not get covered by Item 1 of Schedule IV. It
would also not be covered by Item 1(a) of Schedule II, as it
is not a threat to discharge or dismiss an employee if he
joins a union. For the purpose of attracting Item 1 of
Schedule IV, apart from mere threat, some concrete step like
starting departmental enquiry has to be taken by the
employer before such an action can be brought in challenge
by the concerned employee on any of the grounds mentioned in
Item 1 of Schedule IV. Consequently, merely because the
legislature has not repeated the terminology of mere threat
while enacting Items of Schedule IV it would not mean that
before the final order of discharge or dismissal is passed
on any of the grounds contemplated by Item 1 of Schedule IV,
and only first step is taken in that direction, the unfair
labour practice to discharge or dismiss such employee on any
of these grounds mentioned in Item 1 of Schedule IV cannot
be said to have taken place, or on that basis the complaint
would be premature, as submitted by Shri Pai, learned senior
counsel for the appellant.
At this stage, we may also briefly note some of the
additional contentions found in the written submissions
filed on behalf of the appellant and the intervenors. In the
written submissions filed on behalf of the intervenors it is
contended that the infinitive "to", as mentioned in various
clauses of Item 1 of Schedule IV and in other Items of the
same Schedule and also in other Items of Schedules II and
III, would indicate only completed action done by the
concerned party. It is not possible to agree with this
contention. As we have discussed earlier, the word "to"
would include any action towards the final goal of the
action. Schedule IV, as noted earlier, speaks about the
general unfair labour practice on the part of employers.
Therein barring Item no. 9, everywhere we find the user of
the Infinitive. Same is the case with the wording of
Schedule II barring Item No. 6 and the wording of Schedule
III. While dealing with this aspect, a Full Bench of
Industrial Court of Maharashtra, in its decision in Revision
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Application (ULP) No. 2 of 1983, speaking through its
learned Member Gawande, has made the following observations
in paras 11 to 13, which we wholly approve:
"....The Infinitive with or without
adjuncts may be used, like a Noun. When
the infinitive is thus used, like a
Noun, it is called the Simple
Infinitive. To discharge or dismiss
merely names the action denoted by the
Verb discharge or dismiss, and is used
without mentioning any subject. The
expression is, therefore, not limited by
person and number as a Verb that has a
subject, and is, therefore, called the
Verb Infinite, or simply the Infinitive.
The Infinitive is a kind of noun with
certain features of the Verb, especially
that of taking an object (when the Verb
is transitive) and adverbial qualifiers.
In short, the Infinitive is a Verb-noun
(and is called a Gerund). A Gerund is
that form of the Verb which ends in -
ing, and has the force of a Noun and a
Verb; it is a Verbal Noun. The word to
is frequently used with the Infinitive,
but is not as essential part or sign of
it. The Infinitive may be active or
passive. When active, it may have a
present and a perfect form, and may
merely name the act, or it may represent
progressive or continued action. Then
comes the question of Tense. Here I wish
to elaborate by taking an illustration
thus : (1) I speak - The Verb shows that
the action is mentioned simply, without
anything being said about the
completeness or incompleteness of the
action. Here the Tense is Present
Indefinite. (2) I am speaking - The Verb
shows that the action is mentioned as
incomplete or continuous, that is, as
still going on. Here the Tense is
Present Continuous. (3) I have spoken -
The Verb shows that the action is
mentioned as finished, complete or
perfect at the time of speaking. Here
the Tense is Present Perfect. (4) I have
been speaking - The Verb shows that the
action is going on continuously, and not
completed at this present moment. Here
the Tense is Present Perfect Continuous.
12. Against the background of the above
when we read Item 1 of Schedule IV to
the Act, text of which has been already
reproduced, it becomes evident that Item
1 starts with the phrase - To discharge
or dismiss employees. Thereafter we get
as many as seven sub-items (a) to (g).
If we were to put only the Literal
Construction on the entire wording of
Item 1 of Schedule IV, it becomes clear
that in a given case if the alleged
unfair labour practice is that of
discharge or dismissal of the employee
under all the sub-items i.e. from (a) to
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(g) or either of them, the Labour Court
has jurisdiction to entertain such a
complaint under Section 28 of the Act.
In adverting to the Literal Construction
and in accepting the interpretation
flowing therefrom, it becomes clear that
the action contemplated on the part of
the employer here is an action complete
in itself. In other words, if the
employer were to discharge or dismiss an
employee under all the aforesaid sub-
items or either of them, the Labour
Court has jurisdiction to entertain a
complaint. Implicit in this is the fact
that the employer-employee relationship
is severed by an order of discharge or
dismissal, before the lodging of the
complaint. That such a complaint will
lie, that such a complaint is competent
and that the Labour Court has
jurisdiction to entertain such a
complaint are points in respect of which
the contenders before us do not join
issue.
13. However, the question posed for the
determination of the Full Bench is wide.
After taking into consideration the
interpretation-aspect as also the
grammer-aspect, I am of the view that it
will not be proper to put a mere Literal
Construction on the wording of Item 1 of
Schedule IV to the Act. I have no doubt
in my mind in observing that here the
language is not plain. It does not admit
of but one meaning. Therefore, one would
be justified in adverting to the
Mischief Rule also the Golden Rule while
interpreting the words appearing in Item
1 of Schedule IV. I may further observe
that in doing so, if the choice is
between two interpretations, the
narrower of which would fail to achieve
the manifest purpose of the legislation,
we should avoid a construction which
would reduce the legislation to
futility. In such a situation we should
rather accept the bolder construction
based on the view that the legislature
would legislate only for the purpose of
bringing about an effective result.
Further, as observed earlier, where
alternative constructions are equally
open, that alternative is to be chosen
which will be consistent with the smooth
working of the system which the Statute
purports to be regulating; and that
alternative is to be rejected which will
introduce uncertainty, friction or
confusion into the working of the
system. Lastly, it cannot be forgotten
that the Statute shall have to be read
as a whole."
The aforesaid observations in Full Bench judgment of
Maharashtra Tribunal are well sustained on the scheme of the
Act, which we have discussed earlier. Consequently, it is
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not possible to agree with the written submission on behalf
of the intervenors that only completed actions are
contemplated by the concerned clauses of Item 1 of Schedule
IV. They, on the contrary, suggest that complaint can be
filed not only when the final act of unfair labour practice
is committed, but even at a stage where any firm action is
taken towards reaching the final goal of discharging or
dismissing an employee on any of the grounds mentioned in
clauses (a) to (g) of Item 1 of Schedule IV. So far as the
other items of Schedule IV are concerned, it is difficult to
appreciate how a complaint cannot be filed if the concerned
employer has taken a firm step towards the ultimate object
of completing the alleged unfair labour practice as
mentioned in Items 2 to 10 of the said Schedule.
Reliance placed on the Whisper University Law
Dictionary defining the term "dismiss" also is of no avail
as though the word "dismiss" may indicate performance of a
completed action, any unfair labour practice to dismiss, as
discussed earlier, would include any firm step or attempt
made towards the ultimate goal of dismissing the concerned
workman.
Submission made on the scheme of Section 30(2) to the
effect that interim order can be passed in connection with
the practice complained of also cannot advance the case of
the appellant for the simple reason that if the practice
complained of is of any firm step taken by the employer
towards the ultimate object of dismissing or discharging the
employee on any of the grounds covered by clauses (a) to (g)
of Item 1 of Schedule IV, interim relief can be granted in
connection with such practice complained of and would not
mean that till the practice gets fructified and translated
into final act of dismissal or discharge, the Labour Court
cannot pass appropriate interim relief orders under Section
30(2) as submitted in the written submissions.
We may also briefly refer to the summary of arguments
by Shri. G.B. Pai on behalf of the appellant as filed on
4.9.1995. Most of the submissions contained therein are
already dealt with by us in the earlier part of this
judgment. However, some additional aspects mentioned therein
are required to be considered. In paragraph IV (i) it is
submitted that the term "unfair labour practice" denotes a
habitual practice by the employer, and not isolated events.
For that purpose, emphasis is placed on the dictionary
meaning of the word "practice" which means often,
customarily or habitually. It is true that the word
"practice" cannotes repeated events but that will not affect
the construction to be placed on the words "unfair labour
practice to dismiss or discharge" as implied in Item 1 of
Schedule IV. When a contemplated action on the part of the
employer to dismiss or discharge an employee on any of the
grounds mentioned in that item is firmly taken, the employee
can as well show that this type of action on the part of the
employer is a habitual action or by way of a general
practice. But even apart from such a general practice, it
can be alleged and demonstrated that the employer is
following such a practice at least for the complainant. It
is not as if a practice which is not repetitive in character
can never amount to an unfair labour practice as
contemplated by Schedule IV, Item 1. In fact, whether such
an alleged practice should be based on repetitive acts or a
single act is strictly not relevant for deciding the
question whether an attempt towards commission of such a
practice, when the final order of dismissal or discharge has
not been passed, can be made subject-matter of the complaint
under the Maharashtra Act.
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Similarly, contention found in paragraph IV(ii) that
the words "discharge or dismissal" mean the final order of
sending away or removing a person also cannot be of any
assistance to the appellant for the simple reason that we
are not concerned with the connotation of the words "dismiss
or discharge". The question is whether an attempt towards
ultimate dismissal or discharge by way of taking a firm step
towards it can be the subject-matter of a complaint under
the Maharashtra Act. For deciding that question the entire
scheme of the Act becomes relevant including its preamble,
as discussed earlier. No conclusion can be based only on the
meaning of the words "discharge or dismissal" as tried to be
suggested. Similarly, contention in sub-paragraph (vii) of
paragraph IV relying on a decision of this Court in Bharat
Iron Works vs. B.B. Patel (1976 (2) SCR 280) is also of no
assistance to the appellant as the said decision refers to
the nature of proof required for proving the allegation of
mala fide or victimisation. That stage would come once the
complaint on the ground of victimisation is taken up for
consideration on merits at final hearing stage or at stage
of interim relief, as the case may be.
The submission made in paragraph V(i) on the
construction of the words "is engaging in" as found in
Section 28 also cannot be countenanced for the simple reason
that even in the said paragraph, it is mentioned that some
of the unfair labour practices may be of continuing nature
and for that purpose emphasis is placed on some of the items
mentioned in Schedules II, III and IV. However, even from
the scheme of the schedules it becomes clear that any
present continuous act of engaging in the alleged unfair
labour practice would be covered by the term "is engaging
in". We have already discussed in detail the correct
connotation of these words in the earlier part of this
judgment. For the reasons recorded by us therein, this
submission is found to be devoid of any substance. In sub-
paragraph (iii) of paragraph V, it is submitted that the aim
of prevention is achieved by :
(a) directing the employer as an interim
measure to withdraw the practice
complained of and if the complaint is
proved, in the final order of quashing
the order of dismissal, and also
(b) by prescribing a penalty which
penalty is to act as a deterrent and
prevent the commission of unfair labour
practice.
We fail to appreciate how this will affect the correct
connotation of the word "prevention". If the alleged unfair
labour practice of discharge or dismissal of an employee is
to be prevented, then as discussed earlier, it must
necessarily contemplate an intervention of the competent
Labour Court at a stage prior to the actual commission of
such unfair labour practice.
Reference made in paragraph VI to the Bombay High
Court’s judgments also cannot be of any avail as they were
based on the view which was accepted by the learned Single
Judge of the High Court of Bombay at Nagpur which has
rightly been overturned by the Division Bench of the Bombay
High Court in the judgment under appeal on a correct
interpretation of the relevant provisions of the Act.
Therefore, the earlier view taken by the learned Single
Judges of the Bombay High Court cannot be said to be well-
sustained. For all these reasons, the appellant has made out
no case for our interference in this appeal.
Before parting with this case, however, we must strike
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a note of caution, as has been done by the Division Bench of
the Bombay High Court. It could not be gainsaid that the
employers have a right to take disciplinary actions and to
hold domestic enquiries against their erring employees. But
for doing so, the standing orders governing the field have
to be followed by such employers. These standing orders give
sufficient protection to the concerned employees against
whom such departmental enquiries are proceeded with. If such
departmental proceedings initiated by serving of
chargesheets are brought in challenge at different stages of
such proceedings by the concerned employees invoking the
relevant clauses of Item 1 of Schedule IV before the final
orders of discharge or dismissal are passed, the Labour
Court dealing with such complaint should not lightly
interfere with such pending domestic enquiries against the
concerned complainants. 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.
In the result, this appeal fails and is dismissed with
costs.